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Friday 27 September 2019
Nineteen defendants charged in largest healthcare fraud scheme in Southern District historyRead the Press Release
SAVANNAH, GA: More than a dozen defendants, including 10 physicians and other medical professionals, have been charged for their alleged participation in a massive healthcare fraud scheme responsible for – in the Southern District of Georgia alone – more than $400 million in losses to Medicare.
The charges against 19 defendants in the Southern District of Georgia were announced Sept. 27 as part of a nationwide Department of Justice operation into a scheme that involved trafficking orders and prescriptions for genetic testing, orthotic braces and pain creams. The charges were part of Operation Double Helix, which focused on fraudulent billing of genetic testing, and the charges announced today involve tens of millions of dollars billed to Medicare and generating more than $7 million in fraudulent genetic testing charges to the Georgia Medicaid Program, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The healthcare fraud scheme charged is the largest in the history of the Southern District of Georgia. The Medicare and Medicaid beneficiaries whose identities were used as part of the scheme are located throughout the Southern District of Georgia, including the Augusta, Brunswick, Dublin, Savannah, Statesboro, and Waycross Divisions, as well as elsewhere in the United States.
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Christine. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
The charges filed in the Southern District of Georgia were part of a nationwide operation, unveiled today by the U.S. Department of Justice, into individuals and entities that trafficked in patient information and prescriptions for genetic testing, orthotic braces, and pain creams. Nationwide, the DOJ announced charges against 35 defendants connected with the scheme, which is estimated to have resulted in more than $1.7 billion in fraudulent billing to the Medicare Program.
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
As part of this national enforcement action, U.S. Attorney Christine announced the following actions in the Southern District of Georgia:
- A federal grand jury in Savannah indicted Dr. Anthony Securo of Columbus, Ga., on five counts of health care fraud and five counts of false statements relating to health care. The indictment alleges that that Securo ordered more than 25,000 items of durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
- The United States charged owners of two “telemedicine” physician recruiting companies who, according to court documents, operated companies that identified medical practitioners to write orders in exchange for payments, and facilitated such payments. Court documents allege that the two charged individuals, who were charged by criminal information with single counts of conspiracy, facilitated physician orders that ultimately were billed to Medicare for a combined $170 million.
- The United States charged nine medical professionals in addition to Securo for their roles in the healthcare fraud scheme, in which, according to court documents, the physicians and nurse practitioners ordered orthotic braces for Medicare beneficiaries they did not examine. Each were charged by criminal information with single counts of conspiracy for generating orders for orthotics, creams and laboratory tests that were billed to Medicare and the Georgia Medicaid Program for a combined $185 million.
Others charged in the Southern District of Georgia in the investigation included:
- The United States charged two individuals by criminal information with single counts of conspiracy for operating companies that bought and sold Medicare beneficiary information, and for operating companies that submitted claims for orthotic braces to the Medicare Program. Court documents allege that the two charged individuals brokered the sale of physician orders that ultimately were billed to Medicare for more than $10 million.
- The United States charged one company by criminal information with one count of conspiracy. According to court documents, the company brokered the sale of physician orders that ultimately were billed to Medicare for more than $10 million.
- The United States also charged by criminal information four companies that were created for the specific purpose of billing related to this scheme and billed no less than $8 million.
Indictments or criminal informations contain only charges; defendants are presumed innocent unless and until proven guilty.
“Through the dedicated work of U.S. Attorney Christine’s office, the FBI, HHS-OIG and our Medicaid Fraud Division, those who attempt to bilk government programs will be held accountable,” said Georgia Attorney General Chris Carr. “We are proud of this collaborative effort to stop the architects and implementers of these sophisticated healthcare schemes in their tracks.”
“The FBI and its Savannah Resident Agency are proud to have participated in this nationwide effort to help protect the much-needed federal funds that Medicare provides,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “When providers are driven by greed and abuse the Medicare program, every taxpaying citizen is a victim, especially those who use the federal funds for their health care needs. Improper billing inflates costs, and the FBI and its law enforcement partners are determined to hold those who do it accountable.”
“Being a healthcare professional in the Medicare program is a privilege, not a right. When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson, with the Department of Health and Human Services Office of Inspector General. “These charges put corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
“This type of corruption involving health care fraud against Medicare and Medicaid has managed to defraud American taxpayers of millions upon millions of dollars,” said Resident Agent in Charge Glen M. Kessler of the U.S. Secret Service. “The U.S. Secret Service is always willing to take prompt and coordinated actions to hold these telemarketers and medical professionals responsible for placing personal greed above the good of the public.”
This investigation is ongoing. Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and medical equipment marketing schemes should report this conduct to the FBI hotline at 1-800-CALL-FBI. Any beneficiaries who believe their identity may have been used fraudulently also should contact the FBI hotline.
U.S. Attorney Christine acclaimed the hard work of the investigatory team, led by the FBI, the Department of Health and Human Services Office of Inspector General, the United States Secret Service and the office of the Attorney General of Georgia.
Assistant U.S. Attorneys J. Thomas Clarkson and Jonathan A. Porter are prosecuting these cases on behalf of the United States, and Assistant Attorney General James P. Mooney is prosecuting cases on behalf of the Georgia Medicaid Fraud Control Unit.
New York Man Pleads Guilty to Assault Aboard Cruise ShipRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston for assaulting a woman aboard a cruise ship.
Adam Damian Panetta, 45, of Farmingville, N.Y., pleaded guilty to one count of assault resulting in substantial bodily injury. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 8, 2020. Panetta was arrested and charged in April 2019.
On April 25, 2019, while aboard the Norwegian Cruise Line’s Gem, Panetta was observed on surveillance video pulling a woman by her hair down the full length of a hallway. The two were then observed outside of one of the cabins. While Panetta attempted to open the cabin door, the woman stuck Panetta in the face with an open hand. Panetta then turned toward the woman and punched her twice in the side of her head with a closed fist. The woman fell to the ground and appeared to be unconscious. Panetta entered the cabin and left the woman on the floor in the hallway. After about one minute, Panetta came out of the cabin and leaned down to the woman, who was unresponsive. Eventually, the woman began to crawl into the room. Panetta did not appear to assist her, and as she began to crawl, Panetta kicked her twice in the buttocks. He then followed her into the room.
The two left the room a short while later and the woman was holding a white towel over her head, which appeared to be stained with blood. The two arrived at the ship’s medical center where the woman was treated for her injuries, which included approximately 8cm of swelling on the right side of her head as well as a 2.5 cm laceration that required five stiches.
At the time of the alleged assault, the ship was approximately 200 miles off the coast of Massachusetts. Panetta was taken into custody when the ship arrived into the port of Boston.
The charge of assault resulting in substantial bodily injury provides a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
New York Man Charged with Armed Bank RobberyRead the Press Release
BOSTON – A New York man was arrested today and charged in federal court in Boston with the Aug. 19, 2019, armed robbery of a branch of the Bank of America in Revere.
David J. Hattersly, 45, was charged by criminal complaint with one count of armed bank robbery. Hattersley was detained on conditions following an initial appearance today.
According to the charging documents, on Aug. 19, 2019, at approximately 1:30 p.m., an individual entered a branch of the Bank of America in Revere. The individual approached a teller’s station, passed a threatening demand note, and pointed what appeared to be a black semi-automatic pistol at the teller. The teller handed the individual cash from her drawer and the individual exited the bank. Bank surveillance cameras captured images of the bank robber as a 6’ tall, heavily tattooed, white male, wearing a white tank top, and pointing a black semi-automatic handgun at the teller. A post-robbery audit revealed that the individual stole over $13,000 during the robbery.
Police who interviewed the bank employees, learned that the individual had escaped the area on an MBTA bus. A short time later, a person matching the individual’s description was located in a residential neighborhood. According to court documents, the individual, later determined to be Hattersly, was in possession of a large sum of cash and a black pistol, which was later was later determined to be a BB gun. Hattersly was arrested without incident. Police also discovered that Hattersly was the subject of outstanding warrants in New York.
The charging statute provides for a sentence of up to 25 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences imposed by a federal district court judge based upon the US Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Revere Police Chief James Guido made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nepalese Citizen Arrested and Charged with Attempting to Entice and Meet A 12-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Sanjay Lama (29, Jacksonville) has been arrested and charged with using the internet to attempt to entice a 12-year-old child to engage in sexual activity. Lama is a citizen of Nepal who is legally residing in Jacksonville. If convicted, he faces a mandatory minimum penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Lama has been detained pending a detention hearing scheduled for October 1, 2019.
According to court documents, on September 25, 2019, an undercover FBI agent, who was posing online as a 12-year-old child, was contacted by the user “Awesome_Jack,” who was later identified as Lama. On that day, during an online conversation between Lama and the undercover agent, Lama expressed his desire to meet the “child” to engage in sexual activity. Lama further provided the undercover agent with details about the sexual acts that he wished to perform on the “child.” Later that day, Lama rode his motorcycle to a prearranged location in Jacksonville to meet the “child” and was arrested by FBI agents.
This case was investigated by the Federal Bureau of Investigation in Jacksonville. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Murray, Kentucky Child Predator Found Guilty by JuryRead the Press Release
PADUCAH, Ky. – A Calloway County, Kentucky, man, has been convicted today on 25 counts of production of child pornography, one count of receipt of child pornography, and one count of sex trafficking children. The jury convicted Jeffrey Desmond Carter, age 40, following a five-day jury trial after 2.5 hours of deliberation.
“When I talk about the feds being good partners to state and local law enforcement, this outcome is where words translated into a result with our kids as the beneficiaries,” said U.S. Attorney Russell Coleman. “What began with Murray PD, Calloway County SO, and the KY State Police was then ably-prosecuted by a talented federal prosecutor supported by a team of dedicated support professionals. More to come; we are committed to being good partners in serving all 53 counties of our district.”
Carter, of Murray, Kentucky, was charged on October 18, 2016, by a federal grand jury with 25 counts of production of child pornography, one count of receipt of child pornography, and one count of sex trafficking children.
According to a pretrial memo, on February 5, 2015, the Calloway County Sheriff’s Department was notified that a 15 year-old female had sent sexually explicit photos and videos of herself to Carter, through a Facebook messenger account under the name of Adam Bryan. The investigation soon merged with an investigation by the Murray Police Department.
At the same time the Calloway County report was made, another report was being made to the Murray Police Department that a 14-year old girl sent nude images to Carter. Through investigative techniques, Carter was identified and a search warrant was obtained for his Murray, Kentucky, apartment.
A search warrant for Carter’s apartment was executed on February 10, 2015, by law enforcement agents from the Murray Police Department, Calloway County Sheriff’s Department, and Kentucky State Police. A number of items were seized from the residence including electronic devices. Carter was present when the warrant was executed and was taken to the Murray Police Department for questioning. After waiving his Miranda rights, Carter admitted to using the “Adam Bryan” Facebook account and to contacting girls under the age of 18 and requesting nude images and videos from them. Further, Carter admitted to engaging in sexual acts with a number of minor females and to recording those encounters. Carter stated that he would pay money or provide gifts to the minor females in exchange for participating in the sex acts or for sending nude images or videos. In addition to his verbal confession Carter wrote out a confession; in this written confession, Carter specifically names six of the victims listed in the indictment, and provides a description of a seventh.
The Kentucky Regional Computer Forensics Laboratory performed an analysis on the devices seized during the search warrant; in reviewing the reports and data an FBI special agent and other authorities were able to identify at least 12 victims, including those already known to law enforcement.
Sentencing in this case is set for 11:00 AM Central time, on January 14, 2020, in Paducah, before Senior United States District Judge Thomas B. Russell. Carter faces a mandatory prison term of no less than 15 years and a maximum of 30 years for counts 1-22, 24, 25, & 27; no less than 5 years and a maximum of 20 years for count 23; no less than 10 years and a maximum of life imprisonment for count 26; and up to and including a lifetime period of supervised release. There is no parole in the federal system.
The case is being prosecuted by Assistant United States Attorney Seth A. Hancock and was investigated by the Federal Bureau of Investigation. In addition to the original investigative agencies including the Murray Police Department, Calloway County Sheriff’s Department, and the Kentucky State Police, assistance in the federal investigation was received from the Marshall County Sheriff’s Department; McCracken County Sheriff’s Department; Metropolis, Illinois Police Department; Murray State University Police Department; and the Purchase Area Sexual Assault and Child Advocacy Center.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
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Montgomery Man Sentenced to 77 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
MONTGOMERY, ALABAMA – On Friday, September 27, 2019, Darrell Gamble, 52, of Montgomery, Alabama, was sentenced to 77 months in prison for possession of a firearm by a convicted felon, announced United States Attorney Louis V. Franklin, Sr. There is no parole in the federal system. In addition to the nearly six and a half year sentence, he will be subject to five years of supervised release.
On February 10, 2018, the Montgomery Police Department received report of shots being fired near the Fairview Avenue and I-65 interchange. When officers arrived on the scene, they saw Gamble fleeing the area and noticed that he matched the description of one of those involved. After a brief foot chase, officers apprehended Gamble and found a handgun in his jacket pocket. Gamble has previous felony convictions and is prohibited from possessing a firearm. Court records indicate that Gamble was on supervised release from a previous federal drug conviction at the time of this incident.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Montgomery Police Department investigated the case, with assistance from the Montgomery County Sheriff’s Office and the Alabama Department of Forensic Sciences. Assistant United States Attorneys Thomas Govan and Bradley Bodiford prosecuted the case.
Midwest Health Care Fraud Law Enforcement Action Results in Charges Against 53 Individuals Alleging $250 Million in LossRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today a health care fraud law enforcement action in Detroit, Chicago and Minnesota. Charges were filed against 20 individuals in the Eastern District of Michigan for their alleged involvement in Medicare fraud schemes resulting in $144.8 million in illegitimate billings. In the Northern District of Illinois, charges were filed against 12 individuals for their alleged involvement in Medicare fraud schemes resulting in over $103 million in illegitimate billings. Of those charged in the two federal districts, seven were doctors or licensed medical professionals. In addition, in the state of Minnesota, 21 defendants, including two licensed medical professionals, have been charged with defrauding Medicaid for almost $3 million. Minnesota’s Medicaid Fraud Control Unit (MFCU) investigated these cases.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and U.S. Health and Human Services-Office of Inspector General (HHS-OIG).
The charges announced today aggressively target schemes billing Medicare, Medicaid and private insurance companies for medically unnecessary procedures, medical procedures that were never provided and prescription medications that often were never purchased and/or distributed to beneficiaries.
“Health care fraud robs taxpaying Americans and corrupts the relationship between doctors and patients,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s actions in the Midwest are further proof of the Department’s steadfast commitment to investigating and prosecuting those who put their personal greed above the public good.”
“I applaud the actions taken by our law enforcement partners to seek out and hold accountable those who choose to defraud our health care programs,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “These charges should send a strong message to health care professionals that theft from these vital programs will be met with serious consequences.”
“The abuse of our healthcare programs affects all taxpayers, who foot the bill to make coverage available,” said Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office. “These offenders stole American taxpayers' hard-earned money to line their own pockets. We thank our federal and state partners for their collaborative efforts to stop this systemic fraud.”
“As we pursue these cases, our focus is always on the beneficiaries and taxpayers who rely on us to protect the integrity of Medicare programs,” said Special Agent in Charge Lamont Pugh III of the HHS-OIG Chicago Region. “We will continue to work with our law enforcement partners to hold accountable anyone who steals taxpayer dollars and threatens the integrity of this vital benefit.”
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Among those charged in cases handled by Strike Force attorneys in the Eastern District of Michigan are the following:
James Letko, 46, of Pittstown, New Jersey; Steven King, 41, of Pembroke Pines, Florida; Patricia Flannery, 40, of Hellertown, Pennsylvania; Katherine Peterson, 33, of Millford, New Jersey; and Rami Lazeki, 40, of Plymouth, Michigan, were charged in an indictment filed Sept. 26 with one count of conspiracy to commit health care fraud and five counts of health care fraud. The charges stem from an alleged $80 million, multi-prong health care fraud scheme run by Letko, the CEO of A1C Holdings; King, its chief compliance officer; Flannery and Peterson, members of its management team; and Lazeki, pharmacist in charge at All American Medical Pharmacy. All five allegedly conspired to direct employees of multiple subsidiary pharmacies under A1C Holdings to conceal Letko’s ownership in the subsidiary pharmacies; falsify contracts with pharmacy benefit managers to conceal Letko’s ownership interest; classify subsidiary pharmacies as mail order when in fact they were retail pharmacies; authorize refills without patient consent and fail to collect co-pays to induce patients to accept refills of medically unnecessary medications and diabetic testing supplies. The FBI and HHS-OIG investigated the case. Assistant Chief Malisa Dubal of the Criminal Division’s Fraud Section is prosecuting the case.
Regina Black, 50, of Shelby Township, Michigan, owner of Rehabilitative Counseling and Behavior Services of America of Clinton Township, Michigan, was charged in an indictment filed Sept. 17 and unsealed today with five counts of health care fraud and three counts of wire fraud. The charges stem from Black’s alleged role in a $4.9 million health care fraud scheme, in which she advertised and offered services, such as dancing, field trips and other social activities for Medicare enrollees at senior residential buildings. Using the enrollees’ Medicare numbers, Black allegedly caused Medicare to be billed for individual and group psychotherapy services that were not medically necessary, not rendered and/or not otherwise eligible for reimbursement through Medicare. The FBI and HHS-OIG investigated the case. Trial Attorneys Steven Scott and Claire Sobczak of the Fraud Section are prosecuting the case.
Robert Cornfield, D.P.M., 55, of Rochester, Michigan, a podiatrist and owner of Robert H. Cornfield, DPM PC of Rochester, Michigan, was charged in an indictment filed Sept. 17 and unsealed today with five counts of health care fraud. The charges stem from Cornfield’s alleged role in a $1.7 million health care fraud scheme in which Cornfield submitted or caused the submission of claims to Medicare for podiatric services he never provided. Specifically, Cornfield allegedly defrauded Medicare by submitting claims for nail avulsions without actually performing the service. From January 2010 through July 2019, Cornfield allegedly billed Medicare for more than 17,000 nail avulsion procedures, ranking him among the highest in the country for that procedure. The FBI and HHS-OIG investigated the case. Trial Attorneys Steven Scott and Jay McCormack of the Fraud Section are prosecuting the case.
Anthony Weinert, D.P.M., 48, of Oakland, Michigan, owner of Anthony Weinert DPM P.C. in Warren, Michigan, and Troy Surgicare in Troy, Michigan, was charged in an indictment filed Sept. 24 and unsealed yesterday with eight counts of health care fraud. The charges stem from Weinert’s alleged role in a $1.7 million health care fraud scheme, in which Weinert submitted or caused the submission of claims to Medicare for podiatric services he did not provide. Specifically, Weinert allegedly defrauded Medicare by submitting claims for nail avulsions, capsulotomies and mass removals without actually providing the services. The FBI and HHS-OIG investigated the case. Trial Attorneys Jay McCormack and Steven Scott of the Fraud Section are prosecuting the case.
Christopher Fratine, 52, of West Branch, Michigan, owner of Unity Home Health Care LLC of West Branch, Michigan, was charged in an indictment filed Sept. 26 with nine counts of health care fraud and three counts of wire fraud. The charges stem from Fratine’s alleged role in an $18.2 million home health care fraud scheme in which he submitted or caused the submission of claims for home health episodes that were not provided. The FBI, HHS-OIG, and Michigan State Police investigated the case. Trial Attorney Steven Scott of the Fraud Section is prosecuting the case.
Sharon King, 66, of Bloomfield Hills, Michigan, was charged in a superseding indictment filed Sept. 19 and unsealed today with three counts of conspiracy to pay and receive health care kickbacks. One of the counts alleges that King engaged in these acts while on supervised release. These charges come in addition to her original charge for conspiracy to commit health care fraud, which was originally filed in June 2018 and which remains pending. The charges stem from King’s alleged role in a scheme to fraudulently bill Medicare in excess of $2.5 million for physician and home health services that were medically unnecessary, never provided and induced by kickbacks. As part of the scheme, King allegedly provided kickbacks, including prescriptions for controlled substances, to Medicare beneficiaries who agreed to accept physician services from Thomas Mays, M.D. and referrals for home health services provided by Personal Touch, Inij Home Healthcare and other home health agencies. These purported home health and physician services were allegedly often medically unnecessary, not actually provided and/or induced by health care kickbacks. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan of the Fraud Section initially handled.
Farzana Haris, 59, of Canton, Michigan, owner and operator of Inij Home Health Care, was charged in an information filed Sept. 26 with one count of conspiracy to commit health care fraud. The charge stems from Haris’ alleged role in a scheme with co-conspirators Sharon King and Dr. Thomas Mays, M.D. to fraudulently bill Medicare approximately $1.1 million for home health services that were medically unnecessary, never provided and induced by kickbacks. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan initially handled.
Charles Hobson Sr., 78 of Southfield, Michigan, co-owner and operator of Personal Touch Home Health Care, and Charles Hobson, Jr., 50, of Lathrup Village, Michigan, co-owner and operator of Personal Touch Home Health Care were charged in an information filed Aug. 23 with one count of conspiracy to pay and receive kickbacks and bribes in connection with a federal health care program. The charge stems from the Hobsons’ alleged role in a scheme with co-conspirator Sharon King, in which the Hobsons paid kickbacks to King and other patient recruiters in exchange for recruiting Medicare beneficiaries to Personal Touch. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan initially handled.
Mohamed Gomaa, 28, of Dearborn Heights, Michigan, a licensed pharmacist and owner of MedlifeRx Pharmacy of Auburn Hills, Michigan, was charged in an indictment filed Sept. 26 with four counts of mail fraud. The charges stem from Gomaa’s alleged role in a $3.48 million scheme that dispensed expensive and medically unnecessary medications, using forged or fraudulent prescriptions, and sent them by mail to Medicare, Medicaid, BCBS and other private insurance beneficiaries who did not want or need them. Gomaa then allegedly billed Medicare and the other various insurance programs and insurers for the high-cost drugs. The FBI and HHS-OIG investigated the case. Trial Attorney Patrick Suter of the Fraud Section is prosecuting the case.
Yogesh Pancholi, 40, of Northville, Michigan, owner of Shring Home Health Care (Shring) of Livonia, Michigan, was charged in an indictment filed Sept. 24 and unsealed yesterday with one count of conspiracy to commit health care fraud and wire fraud, two counts of health care fraud and two counts of money laundering. The charges stem from Pancholi’s alleged role in a $2.8 million home health “bust out” scheme for the submission of request for advance payments or RAPs. Pancholi allegedly submitted RAP claims through Shring for services not prescribed or rendered to Medicare. The FBI and HHS-OIG investigated the case. Trial Attorney Patrick Suter is prosecuting the case.
Kenneth Mitchell, D.P.M., 57, of Southfield, Michigan, a licensed podiatrist and minority owner of Urban Health Care Group LLC of Southfield, Michigan, was charged in a superseding indictment filed Sept. 17 and unsealed yesterday with one count of falsification of records in a federal investigation. These charges come in addition to Mitchell’s original charges filed Sept. 17 consisting of one count of conspiracy to commit health care fraud and wire fraud and three counts of health care fraud. The charges stem from Mitchell’s alleged role in a $1.8 million scheme by which he and co-conspirators submitted false and fraudulent claims for medically unnecessary podiatry and other services on behalf of Urban Health Care Group LLC. HHS-OIG investigated the case. Trial Attorney Patrick Suter of the Fraud Section is prosecuting the case.
Among those charged in cases handled by Strike Force attorneys in the Northern District of Illinois are the following:
Mark Sorensen, 50, of Chicago, Illinois, and Paulina Goncharova, 30, of Minneapolis, Minnesota, were indicted on Sept. 24 on one count of conspiracy to pay kickbacks and three counts of kickbacks. Sorensen was the owner and Goncharova was the Vice President of Finance for Symed, a Medicare-enrolled durable medical equipment (DME) pharmacy in Chicago, Illinois. The charges stem from Sorensen and Goncharova’s roles in a scheme to fraudulently obtain money from Medicare for braces including paying kickbacks to purchase signed doctors’ prescriptions and falsification of business records. Between April 2015 and April 2018, Symed billed Medicare approximately $87 million, and was paid $25 million for DME claims. Trial Attorney Leslie S. Garthwaite of the Fraud Section is prosecuting the case.
Altamash Mir, 43, formerly of Oak Brook, Illinois and Palos Hills, Illinois, owner of a home health “consulting” business and concealed owner of home health agencies; Muhammad Ateeq, 31, of Rawalpindi, Pakistan, a biller and concealed owner of home health agencies; Nadir Mir, 31, of Las Vegas, Nevada, manager of a home health agency; Tasneem Jamal, 66, formerly of Oak Brook, Illinois and Palos Hills, Illinois, administrator and nominee owner of a home health agency; Hamdeh Chatat, 37 of Highland, Indiana, administrator of a home health agency and a home health “consultant”; Bilal Malik, 41, of Palos Hills, Illinois, Las Vegas, Nevada, and San Bernadino, California, nominee owner of a home health agency; Kendria Cochran, 28, Chicago, Illinois, manager of multiple home health agencies; and Luis Ramos, 28, of Chicago Heights, Illinois, manager of multiple home health agencies, were charged on Sept. 26, 2019, in a 35-count indictment that alleges health care fraud, conspiracy to commit money laundering, concealment of money laundering, false statements relating to health care matters, and engaging in monetary transactions in criminally derived property of greater than $10,000 in value. The charges stem from the defendants’ alleged roles in at least approximately a $40 million fraud scheme in which home health agencies were acquired using fake aliases and/or nominee owners and used to submit fraudulent claims for home health services that were never rendered. Trial Attorney Patrick Mott and Assistant U.S. Attorney Jeremy Daniel are prosecuting the case.
Renato Duarte, Psy.D., 60, of Chicago, Illinois, was charged in an indictment filed Sept. 19 and unsealed today with six counts of health care fraud. The charges stem from Duarte’s billing for providing psychological counseling services to patients who he did not see, including while he was traveling outside of the Chicago area. This caused at least approximately $1.07 million in loss between June 2016 and April 2019. Trial Attorney Leslie S. Garthwaite of the Fraud Section is prosecuting the case.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Midwest Health Care Fraud Law Enforcement Action Results in Charges Against 53 Individuals Alleging $250 Million in LossRead the Press Release
WASHINGTON – Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today a health care fraud law enforcement action in Detroit, Chicago and Minnesota. Charges were filed against 20 individuals in the Eastern District of Michigan for their alleged involvement in Medicare fraud schemes resulting in $144.8 million in illegitimate billings. In the Northern District of Illinois, charges were filed against 12 individuals for their alleged involvement in Medicare fraud schemes resulting in over $103 million in illegitimate billings. Of those charged in the two federal districts, seven were doctors or licensed medical professionals. In addition, in the state of Minnesota, 21 defendants, including two licensed medical professionals, have been charged with defrauding Medicaid for almost $3 million. Minnesota’s Medicaid Fraud Control Unit (MFCU) investigated these cases.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and U.S. Health and Human Services-Office of Inspector General (HHS-OIG).
The charges announced today aggressively target schemes billing Medicare, Medicaid and private insurance companies for medically unnecessary procedures, medical procedures that were never provided and prescription medications that often were never purchased and/or distributed to beneficiaries.
“Health care fraud robs taxpaying Americans and corrupts the relationship between doctors and patients,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s actions in the Midwest are further proof of the Department’s steadfast commitment to investigating and prosecuting those who put their personal greed above the public good.”
“I applaud the actions taken by our law enforcement partners to seek out and hold accountable those who choose to defraud our health care programs”, said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “These charges should send a strong message to health care professionals that theft from these vital programs will be met with serious consequences.”
“The abuse of our healthcare programs affects all taxpayers, who foot the bill to make coverage available,” said Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office. “These offenders stole American taxpayers' hard-earned money to line their own pockets. We thank our federal and state partners for their collaborative efforts to stop this systemic fraud.”
“As we pursue these cases, our focus is always on the beneficiaries and taxpayers who rely on us to protect the integrity of Medicare programs,” said Special Agent in Charge Lamont Pugh III of the HHS-OIG Chicago Region. “We will continue to work with our law enforcement partners to hold accountable anyone who steals taxpayer dollars and threatens the integrity of this vital benefit.”
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Among those charged in cases handled by Strike Force attorneys in the Eastern District of Michigan are the following:
James Letko, 46, of Pittstown, New Jersey; Steven King, 41, of Pembroke Pines, Florida; Patricia Flannery, 40, of Hellertown, Pennsylvania; Katherine Peterson, 33, of Millford, New Jersey; and Rami Lazeki, 40, of Plymouth, Michigan, were charged in an indictment filed Sept. 26 with one count of conspiracy to commit health care fraud and five counts of health care fraud. The charges stem from an alleged $80 million, multi-prong health care fraud scheme run by Letko, the CEO of A1C Holdings; King, its chief compliance officer; Flannery and Peterson, members of its management team; and Lazeki, pharmacist in charge at All American Medical Pharmacy. All five allegedly conspired to direct employees of multiple subsidiary pharmacies under A1C Holdings to conceal Letko’s ownership in the subsidiary pharmacies; falsify contracts with pharmacy benefit managers to conceal Letko’s ownership interest; classify subsidiary pharmacies as mail order when in fact they were retail pharmacies; authorize refills without patient consent and fail to collect co-pays to induce patients to accept refills of medically unnecessary medications and diabetic testing supplies. The FBI and HHS-OIG investigated the case. Assistant Chief Malisa Dubal of the Criminal Division’s Fraud Section is prosecuting the case.
Regina Black, 50, of Shelby Township, Michigan, owner of Rehabilitative Counseling and Behavior Services of America of Clinton Township, Michigan, was charged in an indictment filed Sept. 17 and unsealed today with five counts of health care fraud and three counts of wire fraud. The charges stem from Black’s alleged role in a $4.9 million health care fraud scheme, in which she advertised and offered services, such as dancing, field trips and other social activities, for Medicare enrollees at senior residential buildings. Using the enrollees’ Medicare numbers, Black allegedly caused Medicare to be billed for individual and group psychotherapy services that were not medically necessary, not rendered and/or not otherwise eligible for reimbursement through Medicare. The FBI and HHS-OIG investigated the case. Trial Attorneys Steven Scott and Claire Sobczak of the Fraud Section are prosecuting the case.
Robert Cornfield, D.P.M., 55, of Rochester, Michigan, a podiatrist and owner of Robert H. Cornfield, DPM PC of Rochester, Michigan, was charged in an indictment filed Sept. 17 and unsealed today with five counts of health care fraud. The charges stem from Cornfield’s alleged role in a $1.7 million health care fraud scheme, in which Cornfield submitted or caused the submission of claims to Medicare for podiatric services he never provided. Specifically, Cornfield allegedly defrauded Medicare by submitting claims for nail avulsions without actually performing the service. From January 2010 through July 2019, Cornfield allegedly billed Medicare for more than 17,000 nail avulsion procedures, ranking him among the highest in the country for that procedure. The FBI and HHS-OIG investigated the case. Trial Attorneys Steven Scott and Jay McCormack of the Fraud Section are prosecuting the case.
Anthony Weinert, D.P.M., 48, of Oakland, Michigan, owner of Anthony Weinert DPM P.C. in Warren, Michigan, and Troy Surgicare in Troy, Michigan, was charged in an indictment filed Sept. 24 and unsealed yesterday with eight counts of health care fraud. The charges stem from Weinert’s alleged role in a $1.7 million health care fraud scheme, in which Weinert submitted or caused the submission of claims to Medicare for podiatric services he did not provide. Specifically, Weinert allegedly defrauded Medicare by submitting claims for nail avulsions, capsulotomies and mass removals without actually providing the services. The FBI and HHS-OIG investigated the case. Trial Attorneys Jay McCormack and Steven Scott of the Fraud Section are prosecuting the case.
Christopher Fratine, 52, of West Branch, Michigan, owner of Unity Home Health Care LLC of West Branch, Michigan, was charged in an indictment filed Sept. 26 with nine counts of health care fraud and three counts of wire fraud. The charges stem from Fratine’s alleged role in an $18.2 million home health care fraud scheme, in which he submitted or caused the submission of claims for home health episodes that were not provided. The FBI, HHS-OIG, and Michigan State Police investigated the case. Trial Attorney Steven Scott of the Fraud Section is prosecuting the case.
Sharon King, 66, of Bloomfield Hills, Michigan, was charged in a superseding indictment filed Sept. 19 and unsealed today with three counts of conspiracy to pay and receive health care kickbacks. One of the counts alleges that King engaged in these acts while on supervised release. These charges come in addition to her original charge for conspiracy to commit health care fraud, which was originally filed in June 2018 and which remains pending. The charges stem from King’s alleged role in a scheme to fraudulently bill Medicare in excess of $2.5 million for physician and home health services that were medically unnecessary, never provided and induced by kickbacks. As part of the scheme, King allegedly provided kickbacks, including prescriptions for controlled substances, to Medicare beneficiaries who agreed to accept physician services from Thomas Mays, M.D. and referrals for home health services provided by Personal Touch, Inij Home Healthcare and other home health agencies. These purported home health and physician services were allegedly often medically unnecessary, not actually provided and/or induced by health care kickbacks. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan of the Fraud Section initially handled.
Farzana Haris, 59, of Canton, Michigan, owner and operator of Inij Home Health Care, was charged in an information filed Sept. 26 with one count of conspiracy to commit health care fraud. The charge stems from Haris’ alleged role in a scheme with co-conspirators Sharon King and Dr. Thomas Mays, M.D. to fraudulently bill Medicare approximately $1.1 million for home health services that were medically unnecessary, never provided and induced by kickbacks. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan initially handled.
Charles Hobson Sr., 78 of Southfield, Michigan, co-owner and operator of Personal Touch Home Health Care, and Charles Hobson, Jr., 50, of Lathrup Village, Michigan, co-owner and operator of Personal Touch Home Health Care were charged in an information filed Aug. 23 with one count of conspiracy to pay and receive kickbacks and bribes in connection with a federal health care program. The charge stems from the Hobsons’ alleged role in a scheme with co-conspirator Sharon King, in which the Hobsons paid kickbacks to King and other patient recruiters in exchange for recruiting Medicare beneficiaries to Personal Touch. The FBI and HHS-OIG investigated the case. Trial Attorney Jay McCormack is prosecuting the case, which Trial Attorney Tom Tynan initially handled.
Mohamed Gomaa, 28, of Dearborn Heights, Michigan, a licensed pharmacist and owner of MedlifeRx Pharmacy of Auburn Hills, Michigan, was charged in an indictment filed Sept. 26 with four counts of mail fraud. The charges stem from Gomaa’s alleged role in a $3.48 million scheme that dispensed expensive and medically unnecessary medications, using forged or fraudulent prescriptions, and sent them by mail to Medicare, Medicaid, BCBS and other private insurance beneficiaries who did not want or need them. Gomaa then allegedly billed Medicare and the other various insurance programs and insurers for the high-cost drugs. The FBI and HHS-OIG investigated the case. Trial Attorney Patrick Suter of the Fraud Section is prosecuting the case.
Yogesh Pancholi, 40, of Northville, Michigan, owner of Shring Home Health Care (Shring) of Livonia, Michigan, was charged in an indictment filed Sept. 24 and unsealed yesterday with one count of conspiracy to commit health care fraud and wire fraud, two counts of health care fraud and two counts of money laundering. The charges stem from Pancholi’s alleged role in a $2.8 million home health “bust out” scheme for the submission of request for advance payments or RAPs. Pancholi allegedly submitted RAP claims through Shring for services not prescribed or rendered to Medicare. The FBI and HHS-OIG investigated the case. Trial Attorney Patrick Suter is prosecuting the case.
Kenneth Mitchell, D.P.M., 57, of Southfield, Michigan, a licensed podiatrist and minority owner of Urban Health Care Group LLC of Southfield, Michigan, was charged in a superseding indictment filed Sept. 17 and unsealed yesterday with one count of falsification of records in a federal investigation. These charges come in addition to Mitchell’s original charges filed Sept. 17 consisting of one count of conspiracy to commit health care fraud and wire fraud and three counts of health care fraud. The charges stem from Mitchell’s alleged role in a $1.8 million scheme by which he and co-conspirators submitted false and fraudulent claims for medically unnecessary podiatry and other services on behalf of Urban Health Care Group LLC. HHS-OIG investigated the case. Trial Attorney Patrick Suter of the Fraud Section is prosecuting the case.
Among those charged in cases handled by Strike Force attorneys in the Northern District of Illinois are the following:
Mark Sorensen, 50, of Chicago, Illinois, and Paulina Goncharova, 30, of Minneapolis, Minnesota, were indicted on Sept. 24 on one count of conspiracy to pay kickbacks and three counts of kickbacks. Sorensen was the owner and Goncharova was the Vice President of Finance for Symed, a Medicare-enrolled durable medical equipment (DME) pharmacy in Chicago, Illinois. The charges stem from Sorensen and Goncharova’s roles in a scheme to fraudulently obtain money from Medicare for braces including paying kickbacks to purchase signed doctors’ prescriptions and falsification of business records. Between April 2015 and April 2018, Symed billed Medicare approximately $87 million, and was paid $25 million for DME claims. Trial Attorney Leslie S. Garthwaite of the Fraud Section is prosecuting the case.
Altamash Mir, 43, formerly of Oakbrook, Illinois and Palos Hills, Illinois, owner of a home health “consulting” business and concealed owner of home health agencies; Muhammad Ateeq, 31, of Rawalpindi, Pakistan, a biller and concealed owner of home health agencies; Nadir Mir, 31, of Las Vegas, Nevada, manager of a home health agency; Tasneem Jamal, 66, formerly of Oakbrook, Illinois and Palos Hills, Illinois, administrator and nominee owner of a home health agency; Hamdeh Chatat, 37 of Highland, Indiana, administrator of a home health agency and a home health “consultant”; Bilal Malik, 41, of Palos Hills, Illinois, Las Vegas, Nevada, and San Bernadino, California, nominee owner of a home health agency; Kendria Cochran, 28, Chicago, Illinois, manager of multiple home health agencies; and Luis Ramos, 28, of Chicago Heights, Illinois, manager of multiple home health agencies, were charged on Sept. 26, 2019, in a 35-count indictment that alleges health care fraud, conspiracy to commit money laundering, concealment of money laundering, false statements relating to health care matters, and engaging in monetary transactions in criminally derived property of greater than $10,000 in value. The charges stem from the defendants’ alleged roles in at least approximately a $40 million fraud scheme in which home health agencies were acquired using fake aliases and/or nominee owners and used to submit fraudulent claims for home health services that were never rendered. Trial Attorney Patrick Mott and Assistant U.S. Attorney Jeremy Daniel are prosecuting the case.
Renato Duarte, Psy.D., 60, of Chicago, Illinois, was charged in an indictment filed Sept. 19 and unsealed today with six counts of health care fraud. The charges stem from Duarte’s billing for providing psychological counseling services to patients who he did not see, including while he was traveling outside of the Chicago area. This caused at least approximately $1.07 million in loss between June 2016 and April 2019. Trial Attorney Leslie S. Garthwaite of the Fraud Section is prosecuting the case.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Men Charged for Selling Stolen Military PropertyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal criminal information has been filed charging JARED KENT NUCCI, age 28, of Fayetteville, NC, with one count of shipping stolen property belonging to the United States military overseas in violation of the International Traffic in Arms Regulations (ITAR). In a separately filed criminal information, JOSE MANUEL ORTIZ-RIVERA, age 32, of Fayetteville, NC, was charged with one count of conspiracy to steal government property.
NUCCI AND ORTIZ-RIVERA conspired with other individuals to steal and illegally sell government property and military equipment. ORTIZ-RIVERA stole military equipment from the United States Army at Ft. Bragg and sold it to others. NUCCI utilized an eBay account to sell and export stolen military equipment to Japan without having first obtained from the Department of State a license for such export or written authorization for such export.
These cases are related to a previous filed indictment charging SCOTT DOUGLAS BROWNING, age 42, of Fayetteville, NC, and a criminal information filed charging Victor Manuel Cortijo, age 39, of Fayetteville, NC. BROWNING was sentenced on August 9, 2019, before Chief Judge Terrance W. Boyle after pleading guilty to two counts including theft of government property and violation of the International Traffic in Arms Regulations. In his plea agreement, BROWNING agreed to make restitution to the U.S. Army in the amount of $1,854,000. On September 16, 2019, CORTIJO pled guilty before Chief Judge Terrance W. Boyle to one count of conspiracy to receive stolen government property. CORTIJO’s plea agreement includes making restitution of $67,500 to the U.S. Army.
If convicted of these charges NUCCI faces maximum penalties of twenty years imprisonment, a fine of $1,000,000 and a term of supervised release following any term of imprisonment. ORTIZ-RIVERA faces maximum penalties of five years imprisonment, a fine of $250,000, and a term of supervised release following any term of imprisonment.
Both NUCCI and ORTIZ-RIVERA are expected to enter guilty pleas in federal court. Their arraignments have not yet been set. The charges and allegations contained in the criminal information’s are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The Defense Criminal Investigative Service, Army Criminal Investigation Division, and the Department of Homeland Security are investigating the case. Assistant United States Attorney Gabriel J. Diaz is prosecuting this case on behalf of the government.
Medina Husband and Wife Indicted by A Federal Grand Jury on Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Anthony Allee, 28, and Tashira Allee, 36, both of Medina, NY, with maintaining a drug-involved premises, possession of firearms in furtherance of drug trafficking, unlawful possession of a short-barreled shotgun, and unlawful possession of a short-barreled rifle. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life. In addition, Anthony Allee is charged with possession with intent to distribute, and distribution of, marijuana, hydrocodone, and cocaine, unlawful possession of a machinegun, and unlawful possession of a stolen firearm, which carry a mandatory minimum penalty of 30 years in prison and a maximum of life.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that according to the indictment and a previously filed complaint, on July 22, 2019, a search warrant was executed at the defendants’ residence on Ridge Road in Medina. Investigators seized 11 firearms, numerous articles of property reported as stolen, marijuana, pills believed to be controlled substances, ammunition, scales, bags, and other items of evidence including Tashira Allee's cell phone. The firearms included a Taurus Judge pistol that had been reported stolen in the Town of Tonawanda.
Investigators also searched a barn located behind the main house. Inside, a safe was located. Within the safe, officers recovered prescription pill bottles containing pills, and a loaded Colt .45 ACP pistol. Also seized from the barn were digital scales with white powder residue, plastic bags, ammunition, an SKS rifle and magazine, a Ruger model 10-22 carbine, and marijuana.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Tashira Alee was released on conditions. Anthony Allee continues to be detained.
“Under federal law, individuals engaged in drug trafficking activities may not lawfully possess firearms,” stated U.S. Attorney Kennedy. “When they do, however, and when the firearms possessed include stolen guns, machine guns, and sawed-off shotguns and rifles, it suggests that not only are such firearms possessed for an unlawful purpose but for a nefarious and extremely dangerous one as well.”
“Drug trafficking and gun violence are a menace on our communities and will not be tolerated,” said HSI Special Agent-in-Charge Kevin Kelly. “The dismantling of a drug-trafficking operation and seizure of high-powered weapons have a direct, immediate, and positive impact on the quality of life here in Buffalo.”
The indictment is the result of an investigation by the Orleans County Sheriff’s Office, under the direction of Sheriff Randy Bower; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge James B. Devito; the New York State Police, under the direction of Major Edward Kennedy; and the Orleans County District Attorney’s Office, under the direction of District Attorney Joseph Cardone.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Maryland Man Sentenced to Life in Prison for Murder of Corrina MehielRead the Press Release
WASHINGTON – El Hadji Toure, 30, formerly of Laurel, Md., was sentenced today to life in prison for murder and other charges stemming from the March 2017 murder of artist Corrina Mehiel, whose body was found in a rowhouse in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
In March 2019 Toure was found guilty by a jury of a total of 13 charges, including first-degree murder while armed (premeditated and felony), with aggravating circumstances; first-degree sexual abuse while armed, also with aggravating circumstances; kidnapping while armed; first-degree burglary while armed; robbery while armed; first-degree theft; unauthorized use of a vehicle; credit card fraud, and first-degree identity theft. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Juliet McKenna sentenced Toure to life in prison without the possibility of release.
According to the government’s evidence, on March 21, 2017, at approximately 4:34 p.m., officers with the Metropolitan Police Department (MPD) found Ms. Mehiel’s body in a rowhouse in the 600 block of 14th Street NE. Ms. Mehiel’s body, which had been bound, showed multiple stab wounds to her neck and side. Ms. Mehiel, 34, of Burnsville, N.C., had been staying in the sublet basement apartment while in Washington for a couple of weeks while working on an art show at the Corcoran Gallery at George Washington University.
On the morning of Monday, March 20, 2017, Ms. Mehiel was packing up her few belongings from the apartment. Toure broke into the residence, kidnapping and sexually assaulting her, stabbing her, and stealing her belongings, including her car and her debit card. Toure later used her debit card to withdraw cash at several ATMs in nearby Maryland and Virginia from March 20 through March 24, 2017.
On the afternoon of March 21, 2017, when no one had heard from Ms. Mehiel, her co-workers entered her apartment and found her body, face down in her bedroom.
The defendant, who was a stranger to Ms. Mehiel, was arrested on March 27, 2017, in Northeast Washington, and has been in custody ever since.
The government’s evidence in the case included surveillance video showing Toure using Ms. Mehiel’s debit card at ATMs; he is also visible on surveillance video on Ms. Mehiel’s block shortly before the attack. Additionally, DNA evidence linked him to the crime.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also expressed appreciation for the assistance provided by the Metro Transit Police Department, the District of Columbia Department of Forensic Sciences, and Signature Science LLC. They acknowledged the efforts of those worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Elizabeth Trosman, Chief of the Appellate Division; Chrisellen Kolb, Deputy Chief of the Appellate Division; Stephen R. Prest, Special Counsel for Discovery Policy and Litigation; Assistant U.S. Attorneys Julianne Johnston, Silvia Gonzalez Roman, and Lauren Bates; Victim/Witness Advocate Jennifer Clark; Victim/Witness Services Coordinator LaJune Thames; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Supervisory Paralegal Specialists Sharon Newman; Paralegal Specialists Tijuana McPhail and Richard Cheatham; Senior Paralegal Specialist Kathryn Hoey; Litigation Technology Specialist Leif Hickling; Investigative Analyst Zachary McMenamin; Criminal Investigator John Marsh, and Forensic Operation/Program Specialist Elizabeth Marrero.
Finally, they commended the work of Assistant U.S. Attorneys Jeffrey Nestler and Jessi Brooks, who investigated and prosecuted the case.
Maryland Man Pleads Guilty to Federal Wire Fraud Charges in Connection with a Scheme to Defraud Trucking Companies and Brokers of More Than $1 MillionRead the Press Release
Baltimore, Maryland – William Francis Hickey III, age 43, of Elkton, Maryland, pleaded guilty to federal charges of conspiracy to commit wire fraud and wire fraud in connection with a scheme to defraud trucking companies and logistical brokers of more than $1 million. The guilty plea was entered on September 26, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Jamie Mazzone of the U.S. Department of Transportation Office of Inspector General.
According to his plea agreement, Hickey was the managing member of Hickey Consulting LLC and president of Latino Consulting LLC, both headquartered in Baltimore. Hickey maintained bank accounts in the names of both companies, which he used to deposit checks fraudulently obtained by his co-conspirators.
Specifically, from May 2016 through January 31, 2019, Hickey conspired with others, including a co-conspirator in Pakistan, to devise and execute a scheme to defraud trucking companies and logistical brokers hired by shippers to arrange for trucking companies to transport their loads. As detailed in the plea agreement, logistical brokers are hired by shippers of goods to arrange for transportation of the goods by trucking companies. Brokers pay trucking companies for transporting loads through “truck industry checks,” by providing a numerical code, referred to in the trucking industry as an “express code,” which the trucking company uses to populate a blank check from its book of truck industry checks. The broker typically makes two payments to the trucking company—a fuel advance, which is made after the company has picked up its load, and the final payment after the load has been delivered. Truck industry checks can be deposited into a bank account or cashed at a truck stop or check-cashing establishment.
Hickey admitted that he and his co-conspirators obtained truck industry checks from brokers by posing as legitimate trucking companies; entering into agreements with brokers to transport loads; re-brokering, or “double brokering,” the same load to an actual trucking company; and then seeking payment from the brokers for transportation services that the members of the conspiracy did not provide. After the legitimate trucking company picked up the load, the conspirators requested an express code from the broker for the fuel advance payment, then used the express code to populate and subsequently cash or deposit a truck industry check. In some cases, the conspirators also requested a second express code from the original broker after the load was delivered, to deposit a second truck industry check. The conspirators did not pay the trucking company that actually transported the goods.
Hickey deposited over 1,000 truck industry checks worth $1,171,314.11 into his business bank accounts, knowing that they were obtained as part of the fraud scheme.
Hickey faces a maximum sentence of 20 years in federal prison for the conspiracy and for the wire fraud. U.S. District Judge George L. Russell, III has scheduled sentencing for December 20, 2019 at 9:30 a.m.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service and the U.S. Department of Transportation Office of Inspector General for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Kathleen O. Gavin, who are prosecuting the case.
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Man from Albuquerque Sentenced to 15 Years in Federal Prison for Drug Trafficking and Weapon PossessionRead the Press Release
ALBUQUERQUE, N.M. – Omil Cotto, 33, of Albuquerque, New Mexico, was sentenced in federal court yesterday to 15 years (180 months) in prison for possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
Cotto previously pleaded guilty to these offenses on June 10, 2019. According to public court records, Cotto was involved in a car crash with another motorist in Albuquerque while driving to distribute methamphetamine on May 31, 2018. Cotto got out of his car holding a gun. Cotto then fired several shots at the other vehicle as it drove away.
Law enforcement officers located Cotto at his residence soon after the shooting. They obtained a warrant to search his home and found a backpack containing a pistol of the same caliber used in the shooting. Officers also found about 877.1 grams of methamphetamine in the backpack. Cotto possessed the pistol to protect his methamphetamine, according to his plea agreement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case with the Drug Enforcement Administration and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Peter J. Eicker prosecuted the case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Man Sentenced to Prison for Cyber SabotageRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to two years in prison for illegally accessing his former employer’s network systems, stealing critical servers and information, and causing a loss of over $1.1 million.
According to court documents, Barrence Anthony, 40, of Waldorf, was a systems engineer for Federated IT, a federal contractor that was providing technology services for the U.S. Army Chaplain Corps. After being tipped that his employment was going to be terminated, Anthony engaged in a scheme to sabotage Federated IT’s contract with the U.S. Army Chaplain Corps including by deleting all user and administrator accounts except his to give him sole access to network systems, changing domain name registration information, deleting numerous files belonging to Federated IT, and unlawfully sharing proprietary information belonging to Federated IT with his personal accounts.
Anthony was an insider who intimately knew the victim company’s network and infrastructure. He specifically targeted his actions to do harm to one of the company’s most lucrative contracts with the U.S. Army Chaplain Corps. The proprietary information that Anthony took was specifically built for the U.S. Army Chaplain Corps and the victim company assigned it a value of over $1 million. The cyber sabotage also disrupted a Chaplaincy Resource Management Course in Jackson, South Carolina, impacting 19 chaplain corps students.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Edward LaBarge, Director of the U.S. Army Criminal Investigation Command’s Major Cybercrime Unit, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Nathaniel Smith III 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. 1:19-cr-166.
Mahoning County man indicted for using a firearm while making threats against a Jewish community center in YoungstownRead the Press Release
A Mahoning County man was indicted in federal court for using a firearm while making threats against a Jewish community center in Youngstown.
James P. Reardon, 20, of New Middletown, was indicted in U.S. District Court with one count of transmitting an interstate communication threat and one count of possession of a firearm in furtherance of a crime of violence.
According to the court documents:
New Middletown police contacted the FBI on August 16, 2019, after being made aware of a video posted on Instagram page by user “ira_seamus.” The video depicted Reardon holding an assault rifle. It began with Reardon stating “(expletive) a life.” He then held the rifle in multiple firing positions with audio of gunshots and sound effects of sirens and people screaming added into the background, according to the complaint.
The video also had a caption that stated: “ira_seamus Police identified the Youngstown Jewish Family Community shooter as local white nationalist Seamus O'Rearedon". The video is shown to be tagged at the Jewish Community Center of Youngstown, according to the complaint.
New Middletown police officers showed federal agents on August 16, 2019, other videos in which Reardon was depicted, including: a National Geographic documentary in which Reardon was at the "Unite the Right" rally in Charlottesville, Virginia in August 2017 and an Instagram video posted by Reardon in which he discharges two rounds of ammunition into a cover of a video while making a remark about “Jewish media.”
Members of law enforcement executed a search warrant at Reardon’s residence later that day. Upon entering the basement, investigators observed several firearms and clothing articles that were observed in Reardon’s Instagram video postings, including: an MP-40 sub-machine gun like the one depicted in the video; an AR-15 assault rifle; numerous Nazi World War II propaganda posters; a rifle bayonet; a Hitler Youth Knife; and vintage U.S. military equipment, according to the complaint.
Reardon pulled up to the residence while officers were executing the search warrant and was arrested without incident.
“This defendant used a firearm to threaten people who simply want to worship as they choose, as guaranteed by our Constitution,” U.S. Attorney Justin Herdman said. “Law enforcement will not stand by and allow someone to intimidate others with threats of violence.”
"In today's environment, shootings in public places, churches and schools have occurred too often,” said FBI Special Agent in Charge Eric B. Smith. “Law enforcement must react swiftly to threats of violence. This defendant’s video demonstrated that he had access to weapons and he posed a threat to a Jewish community center. Law enforcement cannot wait to see if a shooting is going to occur, law enforcement must act quickly within the confines of the law to disrupt any potential violent act. The public is reminded -- if you see something, say something.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The Federal Bureau of Investigation, the Mahoning Valley Violent Crimes Task Force and the New Middletown Police Department investigated the case. Assistant U.S. Attorneys David Toepfer and Yasmine Makridis are prosecuting the case.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Madison Man Indicted for Conspiracy to Distribute Fentanyl That Resulted in DeathRead the Press Release
BIRMINGHAM –A federal jury on Thursday indicted a Madison man for conspiracy to distribute fentanyl, a potent synthetic opioid painkiller, which resulted in a person’s death, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
A one-count indictment charges JONATHAN RYAN MILLER, 38, with conspiring to distribute and possession with the intent to distribute fentanyl that resulted in a person’s death in December 2017.
“Opioids, especially Fentanyl, are deadly and are responsible for too many overdoses in the Northern District,” Town said. “The safety and well-being of our communities remains my top priority and we will continue to counter the distribution of opioids by aggressively bringing these dealers to justice.”
“Today and once again, DEA provided a measure of justice to a family who lost a loved one. The scourge of opioid abuse is ravaging our country and we continue to see evil people kill others by selling heroin laced with fentanyl. We will continue to provide a voice for those who have been killed by greedy, unscrupulous individuals. The same individuals who care nothing about the lives of those who they continue fueling their addictions even to the point of death. DEA is as steadfast as every in our fight.”
The penalty for distributing a controlled substance that results in death is 20 years to life in prison and a maximum $1 million fine.
DEA investigated the case, which Assistant U.S. Attorney Robert J. Becher Sr. is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Lincoln Couple Sentenced for Transporting and Selling Fish in Violation of Federal LawRead the Press Release
United States Attorney Joe Kelly announced that Phong T. Duong, age 49, and Oanh T. Pham, age 46, both of Lincoln, Nebraska, were sentenced today in federal court in Omaha, Nebraska, for violations of the federal Lacey Act. United States District Court Judge Robert F. Rossiter, Jr., sentenced Duong to two years’ probation for conspiring to traffic wildlife, a felony. Judge Rossiter sentenced Pham to two years’ probation for the illegal taking, transport, and selling of fish, a misdemeanor. Both were ordered to pay restitution in the amount of $16,000.
A joint investigation conducted by the U.S. Fish and Wildlife Service, Nebraska Game and Parks Commission, and Kansas Department of Wildlife, Parks and Tourism determined that Duong, and his spouse, Pham operated a business out of their Lincoln, Nebraska, residence that sold wildlife and fish to customers located in Nebraska.
At various times between May 2013 and July 2016, Duong and Pham obtained fish, typically consisting of crappie, white bass, and wiper, from the Kirwin National Wildlife Refuge, and other reservoirs, located in the State of Kansas, in violation of Kansas wildlife laws. To avoid detection and evade law enforcement, Duong and Pham would routinely change fishing locations upon the Kirwin National Wildlife Refuge, and other reservoirs, stash fish at off-site locations, and utilized “straw fishermen” including minor children and others to conceal fish taken in excess of the established possession limits. Duong and Pham regularly transported the illegally taken fish from the State of Kansas to the State of Nebraska. Upon arrival in the State of Nebraska, the fish would be cleaned and bagged at Duong and Pham’s residence. Duong and Pham would then sell the fish to customers located in Nebraska for a profit.
“The U.S. Fish and Wildlife Service is committed to protecting native species and their habitats for the continuing benefit of the American people," said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “Overfishing impacts local economies and fish populations. It also deprives law abiding citizens and others who enjoy outdoor recreation activities related to these resources. We will continue to work with our partners to vigorously investigate and apprehend those involved with the unlawful acquisition, sale, and exploitation of our nation's natural resources. Together, we will ensure that our country's wildlife and wild places are protected for generations to come.”
This case was investigated by the U.S. Fish and Wildlife Service, Nebraska Game and Parks Commission, and Kansas Department of Wildlife, Parks and Tourism.
Last of "Operation Gunsmoke" Defendants Plead Guilty to Federal Drug and Gun CrimesRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that the last of 15 South Carolina defendants with pending charges from the Aiken County investigation dubbed “Operation Gunsmoke” have pleaded guilty in federal court to offenses involving narcotics and firearms.
“Because of the excellent work of the ATF RAGE Unit in this case, over 150 guns have been taken away from criminals and off the streets of Aiken County,” said U.S. Attorney Lydon. “Federal, state, and local law enforcement are working in lockstep to make our neighborhoods safer. I am proud to stand with our partners in South Carolina and Georgia as we fight to take back our communities from dangerous individuals who mix violence and illegal drug distribution.”
The specific guilty pleas before United States District Judge J. Michelle Childs were as follows:
- Christopher Johnson pleaded guilty to distribution of cocaine base and being a felon in possession of a firearm. He faces a maximum penalty of 30 years in federal prison.
- Quinton White pleaded guilty to distribution of methamphetamine and illegally dealing in firearms. White faces a maximum penalty of 25 years in federal prison.
- Kevin Sheppard pleaded guilty to distribution of methamphetamine, being a felon in possession of a firearm, and two counts of carrying a firearm during a drug trafficking crime. Sheppard faces a minimum mandatory penalty of 10 years and a maximum of life in prison.
- Keith Williams pleaded guilty to distribution of methamphetamine and carrying a firearm during a drug trafficking crime. Williams faces a minimum mandatory penalty of 10 years and a maximum of life in prison.
- Larry Thomas pleaded guilty to distribution of methamphetamine and carrying a firearm during a drug trafficking crime. Thomas faces a minimum mandatory penalty of five years and a maximum of life in prison.
- Jerome Simmons pleaded guilty to felon in possession of a firearm and carrying a firearm during a drug trafficking offense. Simmons faces a minimum mandatory term of five years imprisonment and a maximum of life.
- Reihn Jennings pleaded guilty to distribution of cocaine base and carrying a firearm during a drug trafficking offense. Jennings faces a minimum mandatory term of five years imprisonment and a maximum of life.
- Ronnie Gartrell pleaded guilty to conspiracy to distribute cocaine base and being a felon in possession of a firearm. Gartrell faces a minimum mandatory term of five years imprisonment and a maximum of 50 years.
- Heather Collins pleaded guilty to conspiracy to distribute cocaine base, cocaine, and methamphetamine. Collins faces a minimum mandatory term of five years imprisonment and a maximum of 40 years.
- Charlie Carter pleaded guilty to distribution of methamphetamine and felon in possession of a firearm. Carter faces a maximum term of imprisonment of 30 years.
- Cornelius McKie pleaded guilty to possession with intent to distribute cocaine base, cocaine, and methamphetamine. McKie faces a maximum term of imprisonment of 20 years.
- Rashad Lundy, Xavier Mathaney, Ray Baughman, and Benjamin Roper all pleaded guilty to felon in possession of firearms charges, and each faces a maximum term of imprisonment of 10 years.
These guilty pleas are the result of the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Regional Anti-Gang Enforcement (RAGE) Unit, a joint gang/violent crime task force with the Aiken County Sheriff’s Office, North Augusta Department of Public Safety, Aiken Department of Public Safety, Richmond County, Georgia Sheriff’s Office, South Carolina Law Enforcement Division, and ATF. Assistance was also provided by the United States Marshals Service, the South Carolina Department of Probation, Parole and Pardon Services, and the Wheeling, West Virginia Police Department.
Court testimony revealed that the case first started as a result of increasing violence in Aiken County. During the course of the investigation, over 150 guns were seized – most from the hands of felons. Methamphetamine, cocaine, and crack cocaine were also seized during the case, including over 4 pounds of methamphetamine in one seizure.
ATF Assistant Special in Charge Brian Mein stated, “The ATF Regional Anti-Gang Enforcement Unit (RAGE), was an idea that became a reality because law enforcement agencies realized we could better serve and protect our communities from violent criminals, firearm traffickers and drug traffickers by working together. The guilty pleas and convictions of individuals associated with the investigation are a great testament to our collaborative efforts. ATF will continue to support the RAGE Unit and offer any and all resources to ensure our communities stay safe. I want to thank the Aiken County Sheriff’s Office, North Augusta Department of Public Safety, Aiken Department of Public Safety, Richmond County Sheriff’s Office, South Carolina Law Enforcement Division and our ATF Agents for dedication and their outstanding work in this investigation.”
This case was prosecuted as part of the joint federal, state, and local 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.
Assistant United States Attorneys Charlie Bourne of the Charleston office and Brook Andrews of the Columbia office are prosecuting the cases.
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Justice Department Files Statement of Interest in Indiana Lawsuit Brought by Former Teacher Against ArchdioceseRead the Press Release
The Justice Department today filed a Statement of Interest explaining that the First Amendment protects the right of the Roman Catholic Archdiocese of Indianapolis to interpret and apply Catholic doctrine. The lawsuit was brought against the Archdiocese by a former teacher who was fired from a Catholic high school within the diocese because he was in a same-sex marriage in contradiction to Catholic teaching on marriage. The Archdiocese indicated that the school had to terminate the teacher, or the school would forfeit its Catholic identity, which would have led to several repercussions for the school.
“The First Amendment to the United States Constitution protects the right of religious institutions and people to decide what their beliefs are, to teach their faith, and to associate with others who share their faith,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The First Amendment rightly protects the free exercise of religion.”
“If the First Amendment’s Religion Clauses stand for anything, it is that secular courts cannot entangle themselves in questions of religious law,” said United States Attorney Josh Minkler.
This case stems from a directive issued by the Archdiocese to Cathedral High School, a Catholic school in Indianapolis. The Archdiocese told Cathedral that the school’s continued employment of a teacher in a public, same-sex marriage in contradiction to Catholic teachings on marriage would result in Cathedral’s forfeiture of its Catholic identity. After much deliberation, the school terminated the teacher. The teacher then filed suit against the Archdiocese, claiming the directive to Cathedral interfered with his employment and his contractual relationship with the school.
The government explains in the Statement of Interest that the First Amendment prevents courts from impairing the constitutional rights of religious institutions. The former teacher’s lawsuit attempts to penalize the Archdiocese for determining that schools within its diocese cannot employ teachers in public, same-sex marriages, and simultaneously identify as Catholic. Supreme Court precedent clearly holds that the First Amendment protects the Archdiocese’s right to this form of expressive association, and courts cannot interfere with that right.
The Statement of Interest also makes clear that courts cannot second-guess how religious institutions interpret and apply their own religious laws. Supreme Court precedent explains that the First Amendment forbids courts from engaging in “quintessentially religious controversies.” Instead, as the Statement of Interest explains, “the legitimacy of the Archdiocese’s decision as a matter of Catholic law” is committed exclusively “to the judgment of the Archdiocese.”
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Jury convicts former Custom Carbon Processing president of Clean Air Act violations stemming from explosion of Wibaux oil processing plantRead the Press Release
BILLINGS – After a five day trial, a jury today convicted the former president and director of Custom Carbon Processing, Inc. of multiple violations of the federal Clean Air Act after a 2012 explosion at the company’s oil processing plant in Wibaux injured three employees and caused extensive damage to the plant, U.S. Attorney Kurt Alme said.
The jury found Peter Margiotta, 62, of Edmonton, Alberta, Canada, guilty of all three counts in an indictment, including conspiracy, Clean Air Act—general duty and Clean Air Act-knowing endangerment. Margiotta faces a maximum 15 years in prison, a $250,000 fine for an individual, a $1 million fine for an organization and three years of supervised release on the knowing endangerment crime.
The jury trial began on Sept. 23.
U.S. District Judge Susan P. Watters did not immediately set a sentencing date and continued Margiotta’s release.
“Cutting corners in the construction and operation of the oil processing plant violated the Clean Air Act, compromised the safety of employees and resulted in an explosion that injured three workers. Mr. Margiotta’s conviction should send the message that compliance with environmental regulations is required and that we will prosecute violators,” U.S. Attorney Alme said. “I also want to thank Assistant U.S. Attorney Bryan Dake, Special Assistant U.S. Attorney Eric E. Nelson, the Environmental Protection Agency and the U.S. Department of Transportation Office of Inspector General for their work in prosecuting and investigating this case.”
“We believe today’s conviction sends a strong message to those responsible for properly handling hazardous material,” said Jeffrey Dubsick, Regional Special Agent in Charge for the U.S. Department of Transportation Office of Inspector General. “Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to protect against those who would risk the safety of the public and the environment for personal gain.”
"The defendant ignored warnings and knowingly put his employees and the public at risk by constructing and operating his facility without appropriate safeguards," said Jeff Martinez, Special Agent in Charge of the Environmental Protection Agency's criminal enforcement program. "This case highlights the importance of a risk management program that protects public health and the safety of our communities," Martinez said.
The prosecution presented evidence at trial of the following:
Margiotta was president and director of Custom Carbon Processing, Inc., a Wyoming company, which constructed the Michels Disposal Well and Oil Reclamation Facility in Wibaux in 2012. The construction was done in ways that allowed hydrocarbon vapors, extremely hazardous substances and hazardous air pollutants to be released into the air.
On July 4, 2012, Margiotta directed the opening of the plant before the implementation of appropriate electrical wiring, ventilation and other safety measures. On that date, the project manager emailed Margiotta, “The control panels must be moved asap with the explosion proof wiring. We also run the risk of killing someone, not only our operators but also customers.”
Margiotta also directed employees to accept shipments of highly volatile and flammable “natural gas condensate” or “drip gas” into the operations in a purported effort to help thin and process the slop oil at the plant.
Beginning in October 2012, Margiotta disregarded repeated warnings from the plant’s foreman that the natural gas condensate was not effective in thinning the slop oil and instead was creating a dangerous situation because of its highly volatile and flammable nature.
On Dec. 29, 2012, the plant accepted a delivery of natural gas condensate. During the offloading of the material at the plant, hazardous and flammable vapors from the natural gas condensate filled the plant building and spread out the open bay doors where the truck delivering the condensate was located. The vapors reached an ignition source, causing an explosion that injured three employees and extensive damage to the plant, the truck and trailer involved in the delivery.
AUSA Bryan Dake and SAUSA Eric Nelson prosecuted the case, which was investigated by the Environmental Protection Agency and the U.S. Department of Transportation Office of Inspector General.
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Jacksonville Woman Sentenced to over 13 Years for Committing Aggravated Identity Theft and Fraud While on Federal Supervised ReleaseRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Jaceta Anya Streeter (39, Jacksonville) to 13 years and 4 months in federal prison for committing aggravated identity theft and wire fraud while on federal supervised release. Streeter, a 19-time convicted felon, was also ordered to pay restitution to the victims she defrauded.
According to court documents, in 2006, after being found guilty at trial for participating in a scheme involving the passing of counterfeit checks, Streeter was sentenced to seven years in federal prison, followed by three years of supervised release. Following her release from prison, and while on federal supervised release, the court issued a warrant for Streeter, as her whereabouts were unknown and she was considered a fugitive. When the U.S. Marshals Service eventually located and arrested Streeter in Orlando, she had multiple counterfeit forms of identification in her possession.
Further investigation determined that Streeter had engaged in a scheme involving credit card fraud and identity theft. She had obtained credit card account numbers for various victims, along with the victims’ personal identifiable information. Using this information, Streeter then went to various merchants, including home improvement and clothing stores, and fraudulently purchased large quantities of merchandise.
This case was investigated by the Jacksonville Sheriff’s Office, the U.S. Department of Treasury – Office of Inspector General (Jacksonville Field Office), the U.S. Marshals Service, and the United States Secret Service (Jacksonville Field Office). It was prosecuted by Assistant United States Attorney Kevin C. Frein.
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 Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 25 was:
Lloyd Wallace Youpee, 92, of Poplar, on charges of aggravated sexual abuse and abusive sexual contact. If convicted of the most serious crime, Youpee faces a minimum mandatory 30 years to life in prison, a $250,000 fine and five years of supervised release. The FBI and Fort Peck Law Enforcement investigated the case. Pacer case reference. 19-70.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto on a criminal complaint on Sept. 25 was:
Max Richard Arthur, 43, of Anaconda, on charges of prohibited person in possession of firearms and possession of an unregistered firearm. If convicted of the most serious crime, Arthur faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Arthur was detained pending further proceedings. The Anaconda Deer Lodge County Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-03.
Appearing on Sept. 24 and pleading not guilty was:
Brandon Richmond Turner, 29, of Missoula, on charges of felon in possession of firearms. If convicted of the most serious crime, Turner faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Turner was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-36.
Appearing on Sept. 24 on a criminal complaint was:
Adrian Hernandez Altamirano, 42, of Mexico, on charges of illegal reentry. If convicted of the most serious crime, Altamirano faces a maximum two years in prison, a $250,000 fine and three years of supervised release. Altamirano was detained pending further proceedings. The Bozeman Police Department, Gallatin County Sheriff’s Office and Department of Homeland Security, Immigration and Customs Enforcement investigated the case. Pacer case reference. 19-07.
Appearing on Sept. 23 and pleading not guilty was:
Carly Deann Halcro, 35, of Columbia Falls, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Halcro faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Halcro was released pending further proceedings. The Lincoln County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration investigated the case. Pacer case reference. 19-15.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan on Sept. 26 and pleading not guilty was:
Joshua A. Stops, 35, of Lodge Grass, on charges of assault by strangulation and suffocation. If convicted of the most serious crime, Stops faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Stops was released pending further proceedings. The Bureau of Indian Affairs and FBI investigated the case. Pacer case reference. 19-120.
Matthew Stephen Hays, 31, of Baker, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Hays faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Hays was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-67.
Donald Raymond Foote, Jr., 49, of Cody, Wyo., on charges of stalking and interstate violation of a protective order. If convicted of the most serious crime, Foote faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Foote was released pending further proceedings. The FBI investigated the case. Pacer case reference. 19-95.
Appearing on Sept. 24 was:
Dominique Sebastian Paris, 32, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, distribution of meth and possession of a firearm during a drug trafficking crime. If convicted of the most serious crime, Paris faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Paris was detained pending further proceedings. The FBI-West task force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 19-119.
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 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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Individuals Sentenced to Prison for Destruction of EvidenceRead the Press Release
SAN JUAN, P.R. – The Honorable Gustavo A. Gelpí, US District Court Chief Judge, sentenced Juan Batista Johnson-Debel and Noel De León-De La Rosa, who were convicted after a jury trial of destroying controlled substances while on board a boat subject to U.S. jurisdiction, in violation of Title 46, United States Code, Section 70503(a)(2), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendants were found guilty on June 24, 2019.
According to witness statements during trial, U.S. Customs and Border Protection spotted the two defendants with bales of suspected cocaine on board their boat traveling from the Dominican Republic into Puerto Rico. However, before U.S Customs and Border Protection were able to seize the vessel and defendants, the bales were thrown overboard and destroyed.
At sentencing, Judge Gelpí found that the evidence showed that defendants were engaged in drug trafficking and destroyed that evidence. Defendant Johnson received a sentence of 60 months’ imprisonment, while Defendant De León received a sentence of 72 months’ imprisonment for destroying the evidence and entering Puerto Rico illegally. The Judge imposed an additional 6-month term of imprisonment on Defendant De León for illegally re-entering Puerto Rico, which was a violation of his terms of supervised release on a previous federal case.
“We congratulate the prosecution team for taking on this challenging case and securing convictions against these two defendants,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “We will continue to secure our borders from drug traffickers.”
The case was tried by AUSA David T. Henek and Senior Litigation Counsel José Ruiz-Santiago.
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Indiana Man Sentenced to 14 Years for Armed Pharmacy RobberyRead the Press Release
JEFFERSON CITY, Mo. – A Speedway, Indiana, man was sentenced in federal court today for his role in the armed robbery of a Walgreens pharmacy in Jefferson City, Missouri.
Jerome Scott King, 20, was sentenced by U.S. District Judge Roseann Ketchmark to 14 years in federal prison without parole.
On Feb. 28, 2019, King pleaded guilty to armed robbery and to brandishing a firearm during a crime of violence. King admitted that he and three other men robbed the Walgreens at 2002 Missouri Boulevard at gunpoint shortly after midnight on July 25, 2018. Co-defendant Raymond Allen Craig, 21, of Indianapolis, Indiana, has also pleaded guilty and awaits sentencing. A third co-defendant has not been convicted and the fourth man has not been identified.
Police officers arrived as the robbers were running from the business. They fled in a vehicle driven by King. As officers followed in pursuit, occupants of the vehicle began throwing items from the vehicle, including more than 4,000 tablets of various controlled substances taken during the robbery with an aggregate value of $9,264.
Multiple officers pursued the vehicle eastbound on U.S. Highway 54 into Callaway County. The Missouri State Highway Patrol deployed spike strips at the U.S. 54-AA/OO interchange. King’s vehicle began to slow, left the highway, crossed the outer road and crashed near Jazel Lane in Holts Summit, Missouri. King and Craig were apprehended; an unidentified man escaped. Officers recovered the loaded Smith & Wesson 9mm handgun used in the pharmacy robbery. The firearm had been stolen from Indianapolis, Indiana.
King admitted he entered the Walgreens to conduct surveillance and then reported the number of persons inside to Craig. Craig and others entered the pharmacy wearing medical masks over their faces and medical style gloves on their hands. The unidentified man displayed a firearm and confronted the store clerk. One of the suspects, whose identity could not be determined from the surveillance video, zip-tied the clerk’s hands behind his back while a firearm was pointed at his head, led him to the rear of the business near the pharmacy area, and forced him down on the floor. Craig jumped over the counter and confronted the pharmacist, brandishing a firearm in a threatening manner, and removed controlled substances from the pharmacy.
According to court documents, this armed robbery was part of a larger scheme of violence perpetuated by King across the United States during the spring and summer of 2018. On June 7, 2018, King participated in the robbery of a CVS pharmacy in Hot Springs, Arkansas, during which a firearm was brandished and an employee was physically restrained. On June 15, 2018, King participated in the robbery of a CVS pharmacy in Metairie, Louisiana, during which a firearm was brandished. King also faces criminal charges in those states. According to court documents, King is associated with members of The Mob, an Indianapolis street gang.
Although King and his co-defendants are aware of the identity of the fourth participant in this crime, according to court documents, none of them have identified that individual.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Jefferson City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI.
Illinois Man Sentenced to 10 Years in Prison for Methamphetamine and Firearms OffensesRead the Press Release
DAVENPORT, Iowa- On September 25, 2019, Michael Lee Davis, age 26, of New Boston, Illinois, was sentenced by United States District Court Chief Judge John A. Jarvey to 120 months in prison for possession of methamphetamine with intent to distribute and 120 months in prison for felon in possession of a firearm, announced United States Attorney Marc Krickbaum. The two terms of imprisonment were ordered to run concurrently. Davis was ordered to serve five years of supervised release following his prison term and to pay $200 to the Crime Victims’ Fund.
On May 20, 2019, Davis pleaded guilty to the offenses and admitted on May 18, 2018, he was driving a vehicle in Burlington, Iowa, and was in possession of a 55.75 grams of actual methamphetamine, a loaded 12-gauge shotgun, drug packaging material, and a digital scale. He further admitted at the time, he intended to distribute some or all of that methamphetamine to other people. Additionally, he admitted he had previously been convicted of two felony offenses in Mercer County, Illinois, in 2010 and 2015.
This matter was investigated by the Burlington Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa. 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.
Hultgren Construction, L.L.C. Pleads Guilty in Federal Court for Willful Violations Related to Building Collapse & Death of EmployeeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced today that Hultgren Construction, L.L.C., of Sioux Falls, SD, appeared in federal court and pleaded guilty to Willful Violation of the Occupational, Safety, and Health Act Causing Death to an Employee. U.S. District Judge Karen E. Schreier presided over the plea hearing.
According to court documents, on December 2, 2016, Hultgren Construction, L.L.C., an employer under the provisions of the Occupational Safety and Health Act, willfully violated the standards and regulations relating to instruction and training on proper demolition methods promulgated and prescribed under the Act and said violation caused the death of Ethan McMahon.
At times relevant to this case, Hultgren Construction, L.L.C., was a company providing residential and commercial construction services throughout South Dakota, and the company employed approximately eleven (11) employees in South Dakota. On or about and at times prior to December 2, 2016, Hultgren Construction, L.L.C., the controlling and exposing employer, did not sufficiently instruct employees in the recognition and avoidance of unsafe conditions related to temporary shoring supporting a multi-story building. Employees were tasked to remove two adjoining exterior load bearing walls between the ground level and first floor. Employees were not sufficiently instructed in the means and methods for building and installing a temporary shoring system to transfer the building loads from the foundation to the shoring system. In the morning hours of December 2, 2016, an employee was fatally injured as a result of removing the last segment of the load bearing wall, thereby causing the structure to collapse.
Hultgren Construction’s acts and omissions exhibited a plain indifference to a known and obvious hazard. Hultgren Construction knowingly permitted employees to engage in demolition activities without sufficient training to ensure that a licensed engineering professional first prepared an engineering analysis to assess the structural stability of the building, including the planned temporary shoring systems.
The maximum penalties are five (5) years of probation, a $500,000 fine, or both, $50 to the Federal Crime Victims Fund, restitution, and forfeiture. This case was investigated by the Department of Labor – Office of the Solicitor, and the United States Attorney's Office. The case is being prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
The sentencing hearing will be held on Monday, December 16, 2019.
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Heroin and Methamphetamine Trafficker Sentenced to 210 Months in PrisonRead the Press Release
SAN FRANCISCO – Jesus Guadalupe Salazar was sentenced yesterday to 17.5 years in prison for engaging in a conspiracy to commit drug trafficking, announced United States Attorney David L. Anderson, Drug Enforcement Administration Special Agent in Charge Chris Nielsen, and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Rayfield Roundtree.
Salazar, age 33, of San Mateo, California, was indicted by a federal grand jury on June 12, 2018, with engaging in a conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(A)(viii). He pleaded guilty in an open plea before the Court on June 9, 2019.
Salazar, who was the target of a federal wiretap operation, initially was arrested after being found with approximately 20 pounds of methamphetamine and nearly 5 pounds of heroin in his car. Agents also seized multiple firearms, magazines, and ammunition from his home. After his arrest and initial pretrial release, Salazar attempted to deliver an additional 17 pounds of methamphetamine to an individual in Seattle, Washington, where he was arrested again and has remained in continuous federal custody.
The sentence was handed down by The Honorable William H. Orrick, III, U.S. District Court Judge, following Salazar’s open plea application. Judge Orrick also sentenced the defendant to a 5 year period of supervised release.
AUSA Sheila Armbrust is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Linda Love. The prosecution is the result of a year-long investigation by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the San Mateo County Sheriff’s Office Gang Intelligence Unit, and the San Mateo County Narcotics Task Force.
Habitual Offender Sentenced to 5 Years in Federal Prison for Stabbing His Girlfriend in Nespelem, WashingtonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Tommie Joe Flett, age 47, of Spokane, Washington, and an enrolled member of the Confederated Tribes of the Colville Reservation, was sentenced today after having pleaded guilty on July 18, 2019, to Domestic Assault by a Habitual Offender in Indian Country. United States District Judge Salvador Mendoza, Jr., sentenced Flett to a five-year term of imprisonment, to be followed by a three-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on the evening of July 11, 2018, Flett traveled with his girlfriend to Owhi Lake in Okanogan County, Washington. While there, Flett became upset with his girlfriend, pulled her out of a car, and hit her several times in the face. Flett’s girlfriend was able to get away and walked several miles to Nespelem, Washington, where Flett found her and again began striking her in the face. Flett then brandished a knife and stabbed his girlfriend multiple times in her leg and hands. Fortunately, a third-party intervened, protecting the girlfriend from further physical harm. At the time of the assault, Flett had multiple prior convictions for assault against a spouse or intimate partner, making Flett a habitual offender under federal law.
United States Attorney Hyslop said, “The sentence imposed by the Court removes a serial abuser from our streets and sends a clear message to others who may choose to engage in such criminal activity. The United States Attorney’s Office for the Eastern District of Washington, the FBI and the Confederated Tribes of the Colville Reservation Police are committed to investigating and prosecuting violent crimes occurring in the exterior boundaries of the Colville Indian Reservation.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation and the Confederated Tribes of the Colville Reservation Police. This case was prosecuted by Richard R. Barker and Alison L. Gregoire, Assistant United States Attorneys for the Eastern District of Washington.
Fourth Defendant Pleads Guilty to Federal Charges in Commercial Sex Trafficking RingRead the Press Release
ALBUQUERQUE, N.M. – Keron Eugene Lucious, 22, of Albuquerque, New Mexico, pleaded guilty in federal court today to conspiracy to commit sex trafficking of a minor.
Lucious was one of eight defendants charged in a superseding indictment returned by a federal grand jury on April 10, 2018. The indictment charged the defendants with various crimes, including conspiracy to recruit and force minors to engage in commercial sex acts in New Mexico and Arizona. In Lucious’s plea agreement, he admitted participating in a conspiracy involving the prostitution of a child under 18 years old. Lucious transported the child in interstate commerce for purposes of prostitution. He paid for hotel rooms for the child to engage in commercial sex acts. Lucious shared the money earned from this prostitution with his co-conspirators. He also facilitated his criminal activity using a wireless telephone and social media.
Lucious is in custody awaiting sentencing. He faces from 10 years to life in prison. Three of the other defendants in the case have also pleaded guilty and await sentencing. Jason Jackson, 25, of Albuquerque, pleaded guilty on March 8, 2019. He is currently in custody and faces from 11 to 15 years in prison under the terms of his plea agreement. Devin Perkins, 23, of Albuquerque, pleaded guilty on May 9, 2019. Perkins is also in custody. He has agreed to a sentence of 10 years in prison. Chante Bickham, 26, of Albuquerque, pleaded guilty on August 9, 2019. She is out of custody awaiting sentencing where she faces up to six years in prison.
Charges are still pending against Camara Cherry-Amos, 25, Breeauna Langton, 21, and Andrew Wyatt, 30, all of Albuquerque, and John Dompierre, 46, of Phoenix, Arizona. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The charges is this case arose from a joint investigation involving the FBI, Homeland Security Investigations, the Bernalillo County Sheriff’s Office, the New Mexico Office of the Attorney General, and the Bernalillo County District Attorney’s Office. Assistant U.S. Attorney George C. Kraehe is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Four people indicted for a conspiracy involving hundreds of pounds of marijuana as well as marijuana vape cartridgesRead the Press Release
Four people were indicted in federal court for their roles in a conspiracy involving hundreds of pounds of marijuana as well as marijuana vape cartridges.
Named in the five-count indictment are: Robert Berman, 33, of North Hollywood, California; Todd Brown, Jr., 31, of Canton; Dakota Walters, 27, of Lexington, Ohio, and Salim Womack, 25, of Toledo.
All four are charged with conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. Womack is additionally charged with possessing a firearm with an obliterated serial number.
According to court documents:
Homeland Security Investigations agents on September 3 observed a man, later determined to be Berman, load boxes from a truck to a unit at Life Storage facility on West 130th Street in Cleveland.
Two men, later determined to be Walters and Womack, then loaded several boxes they received from Berman into the bed of their pickup truck. A subsequent search of the truck revealed the 18 boxes containing suspected marijuana vape cartridges. Womack also possessed a Ruger 9 mm pistol with an obliterated serial number, according to court documents.
Berman then met with a man driving a minivan, later determined to be Brown. Brown and Berman made an exchange, and Brown drove away in the minivan and Berman drove off in a Budget rental box truck. Following a stop, investigators recovered approximately nine boxes of suspected marijuana plants from the minivan.
A search of the box truck resulted in the seizure of two bags of cash, totaling approximately $211,755. A search of the storage garage resulted in the seizure of approximately 19 boxes of suspected marijuana, according to court documents.
“Groups like this, who are allegedly trafficking vape cartridges containing the active ingredient in marijuana, clearly pose a threat to the health and safety of our community,” U.S. Attorney Justin Herdman said. “This case also involves lots of cash and a firearm – which we see all too often with drug traffickers.”
"We stand ready to provide evidence that this alleged drug trafficking organization conspired to move hundreds of thousands in cash and drugs throughout northern Ohio," said Vance Callender, special agent in charge of HSI Detroit, which covers Michigan and Ohio. "Many are under the false perception that trafficking in narcotics and taking advantage others is a path to a quick profit, without repercussion. These charges demonstrate the serious consequences that await those who engage in these illegal acts.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The Homeland Securities Investigations, with assistance from the Cuyahoga County Sheriff’s Department, investigated this case. Assistant U.S. Attorney Brian Deckert is prosecuting the case.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Soldier Sentenced on Firearm OffenseRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced JOSEPH RUSSEL GRAFF, 39, of Newport, North Carolina to 52 months imprisonment, followed by 3 years of supervised release.
“The success of our overseas war and reconstruction efforts is tied directly to the trust and respect established with the local populace,” said U.S. Attorney Higdon. “Corruption in our military operations undermines those efforts and cannot be tolerated.”
GRAFF was named in a Superseding Indictment filed on April 10, 2018 charging him with several offenses, including his unlawful possession of machineguns. On November 19, 2018, GRAFF pled guilty to that firearm offense.
According to Superseding Indictment and information in the public record, GRAFF was a Sergeant First Class (E-7) in the United States Department of the Army assigned to the 1st Battalion, 3rd Special Forces Group, based at Fort Bragg. GRAFF was a Special Forces Operator assigned to Operational Detachment - Bravo (“ODB”). His military occupational specialty was a weapons sergeant.
During a search of his residence in North Carolina, law enforcement recovered 8 firearms, six of which were machineguns. GRAFF told law enforcement that he brought the weapons back from Afghanistan, but falsely claimed that he had cleared all the firearms through his Command and U.S. Customs. GRAFF did not have any permits to possess any National Firearms Act (NFA) firearms. GRAFF never obtained a permit to import weapons.
During the ensuing investigation, law enforcement also uncovered evidence that GRAFF participated in a scheme to steal government property and have it sold on the black market by Afghan nationals. GRAFF sent the money from the scheme back to the United States in a storage container. GRAFF then used the money to make a down payment on a new home, install an indoor pool, and to buy vehicles for himself and his family. GRAFF agreed to the forfeiture of $151,906.11 in connection with the fraud.
“This sentencing is the product of a thorough investigation and demonstrates the effectiveness of joint investigations by the Defense Criminal Investigative Service (DCIS) and our law enforcement partners,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office. “DCIS will continue to vigorously pursue corrupt actors whose actions subvert the mission of our brave service members putting their lives on the line each day.”
“This crime involves a serious breach of trust," said Inspector General John F. Sopko. “SIGAR investigators will tirelessly pursue any crimes involving the abuse of the public trust and misuse of American taxpayer dollars in Afghanistan.”
“Today’s sentencing is a clear example that illegal actions such as this will not be tolerated,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “Our special agents, who are strategically stationed throughout the world, will continue to aggressively investigate criminal allegations that ultimately affect the readiness of our Army.”
Investigation of this case was conducted by the Defense Criminal Investigative Service, the Special Inspector General for Afghanistan Reconstruction, U.S. Army Criminal Investigation Command - Major Procurement Fraud Unit, and the Federal Bureau of Investigation. Senior Litigation Counsel Banumathi Rangarajan handled the prosecution on behalf of the United States Attorney for the Eastern District of North Carolina.
Former Pharmacy Owner Sentenced for Prescription Medication FraudRead the Press Release
ALEXANDRIA, Va. – A former pharmacy owner was sentenced today to four years in prison for fraudulently filling and dispensing thousands of prescription medications, including opioids, outside the usual course of professional practice.
“Chowdhury blithely violated his position of trust,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Chowdhury’s warped business philosophy led him to illegally distribute a significant number of prescription medications, including dangerous, addictive opioids. Moreover, his reckless actions add to the financial cost of health care as he fraudulently billed at least $500,000 to health insurance programs for prescriptions that were never filled.”
According to court documents, Latif Mohamed Chowdhury, aka Gulam Latif Chaudhury, 29, operated and controlled two now-defunct pharmacies known as Alexandria Care Pharmacy LLC (ACP-1) and Alexandria Care Pharmacy Store #2 LLC (ACP-2). Chowdhury has never been a licensed pharmacist and has no medical qualifications. Nonetheless, between August 2015 and February 2016, Chowdhury fraudulently operated ACP-1 and ACP-2 by personally filling and dispensing thousands of dosage units of medications, including opioids, without a licensed pharmacist on-site. Chowdhury used the identities of licensed pharmacists, without their permission, to carry out his scheme.
“Chowdhury used his trusted position to enrich himself at the expense of others," said Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office. “Today's sentencing makes it clear that the illegal distribution of opioids will not be tolerated. The FBI will work closely with our partners to continue to investigate allegations of healthcare fraud.”
Chowdhury admitted to fraudulently billing health insurance benefit programs, including Medicare and Medicaid, for refills of prescription medications that were not delivered to customers even though his pharmacies received payment for these prescriptions. Chowdhury also submitted fraudulent health insurance claims in the names of pharmacy customers for medications that were not authorized by any physician, and were not dispensed to any of the customers, in order to enrich himself through illicit profits generated by ACP-1 and ACP-2.
“We are committed to protecting the public and the people of Virginia,” said Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division. “We will continue to track down and bring to justice criminals who are fueling the opiate crisis at every level including pill writers, pill fillers, and drug dealers in the area.”
In addition, Chowdhury dispensed Schedule II controlled substances in the names of minors, including children as young as 7 and 8-years-old, outside the usual course of professional practice. During the execution of a search warrant, a loaded Colt .38-caliber firearm that belonged to Chowdhury was located in plain view on the pharmacy department shelves.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Raj Parekh and Monika Moore 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. 1:19-cr-203.
Former Dayton city commissioner pleads guiltyRead the Press Release
DAYTON – A former Dayton City Commissioner entered a guilty plea in U.S. District Court today for accepting a thing of value in connection with a local government.
Williams served as an elected commissioner of the City of Dayton from 2001 until 2018. In 2015, Williams accepted a construction project at his personal home by an individual for a greatly reduced price in exchange for influencing the awarding of city contracts to that same individual.
The individual’s business was subsequently awarded at least $150,000 in contracts with both the City of Dayton and CityWide Development Corporation, a non-profit organization that functioned as a development and financing arm of the City of Dayton. CityWide routinely awarded thousands of dollars in contracts to private companies for the demolition of homes in Dayton.
Williams accepted more than $35,000 in free benefits from the individual, including cash payments and the construction of a patio at his home.
In an attempt to conceal the fraud, Williams demanded the individual create a fake invoice, falsely reflecting that Williams had personally paid the individual for the home improvement project.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced today’s plea entered before U.S. District Judge Thomas M. Rose.
Williams is scheduled to be sentenced on January 29.
Others charged include RoShawn Winburn, Clayton Luckie and Brian Higgins. Luckie pleaded guilty in July to mail fraud.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and the Ohio Auditor of State’s Office, as well as assistant United States Attorneys Brent Tabacchi, SaMee Harden and Dominick Gerace, who are representing the United States in this case.
If you have any information related to the schemes alleged above, please contact the FBI’s Dayton Public Corruption Tip Line at 937-291-5222.
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Former Carpenters’ Benefit Plan Administrator Indicted on Fraud ChargesRead the Press Release
NEWARK, N.J. – The former administrative manager of the United Brotherhood of Carpenters (Carpenters Union) New Jersey/New York benefit funds was indicted today by a federal grand jury for defrauding the funds of more than $1.5 million, U.S. Attorney Craig Carpenito announced.
George R. Laufenberg, 69, of Harvey Cedars, New Jersey, is charged in a five-count indictment with embezzlement of pension funds, embezzlement of deferred compensation payments, embezzlement of excess annuity fund contributions, conspiracy to embezzle with a “low-show” employee, and making a false statement in an annual financial report. He will be arraigned before a U.S. District Court Judge at a later date.According to the indictment:
Laufenberg is the former administrative manager of the New Jersey Carpenter’s Pension, Annuity, Health and Training/Apprenticeship Funds. He allegedly stole from the benefit plans by using his authority to self-deal and benefit himself with unapproved and improper distributions from pension and annuity funds. He also filed a false U.S. Department of Labor Form 5500 in which he denied he was improperly diverting annuity contributions into his paycheck.
Laufenberg, who earned an annual salary of approximately $300,000, is charged with using his authority to unilaterally grant himself a $120,000 pension and $180,000 in annual deferred compensation, without retiring, or without giving notice or receiving approval from the funds’ board of trustees. He is also charged with diverting into his paycheck monthly annuity contributions, contrary to IRS regulations. Laufenberg also used his authority to grant a personal friend, who was a low-show employee at the funds, a full salary with a pension, annuity contributions and full health care coverage.
The maximum penalty for each count is five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited the investigators of the Department of Labor (DOL), Employee Benefit Security Administration (EBSA), under the supervision of Darren Cohen, Regional Director; special agents of the DOL Office of the Inspector General (OIG) under the supervision of Special Agent in Charge Michael Mikulka; and the agents of the Port Authority of New York/New Jersey, under the supervision of Inspector General Michael Nestor, with the investigation leading to today’s indictment.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Offices’ Organized Crime/Gangs Unit.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Peter W. Till Esq., Springfield Township, New Jersey
Food Truck Owner Sentenced for Food Stamp FraudRead 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 Paul Carroll, of Rochester, NY, who was convicted of conspiracy to defraud an agency of the United States in connection with food stamps, was sentenced by U.S. District Judge David G. Larimer to serve two years’ probation, to include eight months home confinement. The defendant was also ordered to pay restitution totaling $82,066.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that the defendant Carroll conspired with co-conspirator David Sobczyk and others to commit food stamp fraud.
Congress established the Federal Food Stamp Program in 1977 to alleviate hunger and malnutrition. In 2008, the program was renamed the Supplemental Nutrition Assistance Program (SNAP program), which uses federal tax dollars to subsidize low-income households, helping low-income individuals and families to maintain more nutritious diets by increasing the food purchasing power of eligible households. The USDA Food and Nutrition Service (FNS) administers the SNAP program through retail food stores or food truck delivery business (FTDB) that have been approved for participation in the SNAP program to sell food in exchange for the SNAP program benefits.
A business that accepts the SNAP program benefits must do so only in connection with retail sales of eligible food products, and must be authorized by FNS as a retail food store or FTDB. According to USDA regulations, most edible items, except for prepared foods, vitamins and medicines, are eligible for purchase with food stamp benefits. Items such as beer, cigarettes, paper goods, soaps, and detergents are ineligible for purchase with food stamp benefits. It is also against the SNAP program regulations to allow customers to pay for merchandise on credit with EBT SNAP/food stamps. Federal law specifies that a purchase made utilizing the SNAP program benefits must be tax exempt. Food stamp benefits may not lawfully be exchanged for cash.
In 1991, Carroll applied to FNS and received authorization to operate a business, Carroll Services, which received the SNAP program benefits. Carroll Services operated a FTDB. Contrary to the regulations, procedures, and policies governing the administration of the SNAP program benefits, the defendant operated his FTDB as a “for credit” operation, whereby he allowed beneficiaries to purchase items from him “on credit,” obtained from the beneficiaries their identifying information, including EBT card number, PIN number, and social security number, and thereafter caused funds to be deducted from the beneficiaries’ SNAP benefits accounts on the date that the benefits were available on the beneficiaries’ EBT cards.
In November 2015, David Sobczyk also applied to FNS and received authorization to operate a business, Sobczyk Services, which received the SNAP program benefits. Sobczyk Services operated a FTDB. Sobczyk also operated his FTDB as a “for credit” operation. Carroll provided Sobczyk with the vehicle to use for his FTDB, and Sobczyk made monthly payments to Carroll for the vehicle, who knew that the FTDB was being operated as a “for credit” operation contrary to program policies.
David Sobczyk was previously convicted and sentenced to serve two years probation and ordered to pay restitution totaling $82,066. He also forfeited $33,991.41.
The sentencing is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in Charge Bethanne M. Dinkins, and the New York State Office of Inspector General, under the direction of Inspector General Letizia Tagliafierro.
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Foley Man Sentenced to 30 Years for Child Pornography OffensesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Taras Hodivsky, Jr., 40, of Foley, Alabama, was sentenced today in federal court on charges of advertising child pornography and possession of child pornography. Hodivsky pled guilty to the charges in June of 2019.
According to court documents filed in connection with his guilty plea, Hodivsky was being investigated by Summerdale Police Department in response to allegations that he had sexually abused a seven year old girl. During the course of that investigation, Summerdale police officers seized Hodivsky’s cell phone. A forensic exam of the phone was performed by personnel of the Foley Police Department. That exam revealed approximately 2,430 still images and 13 video files which depicted the sexual exploitation of children. A further exam of the phone was completed by the FBI, which revealed that Hodivsky used an encrypted app to exchange images of child pornography with other users. Federal agents seized a second cell phone from Hodivsky and discovered an additional 802 images of child pornography on that phone. These images included images of prepubescent children engaged in sex acts and children engaged in sadistic or masochistic conduct.
Chief United States District Court Judge Kristi DuBose imposed a sentence of 360 months imprisonment. The judge ordered that Hodivsky undergo mental health treatment while incarcerated. The judge also ordered Hodivsky to serve a fifteen-year term of supervised release beginning upon his discharge from prison. Upon his release from prison, Hodivsky will be required to register as a sex offender. Chief Judge DuBose ordered that Hodivsky pay $164,415 in restitution and $12,200 in special assessments.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc
The case was investigated by the Summerdale Police Department, the Foley Police Department, and the FBI. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorneys Maria Murphy and Kacey Chappelear.
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
WASHINGTON – A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approx. 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of 1 billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation," said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today's law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
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In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (“Lotus Health”), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia, where Elmore was CEO. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Ga., for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, MD, 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories, LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 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.
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19-1039
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges Against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approximately 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of one billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“The defendants are alleged to have capitalized on the fears of elderly Americans in order to induce them to sign up for unnecessary or non-existent cancer screening tests,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “The genetic testing fraud schemes put personal greed above the preservation of the American health care system. The U.S. Attorney’s Office in South Florida, alongside our law enforcement and USAO partners, remains committed to protecting taxpayer dollars and the Medicare program from abuse.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation," said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today's law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
*********
In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (Lotus Health), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Georgia, for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, M.D., 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
Sekhar Rao, M.D., 48 of Austin, Texas, and Vinay Parameswara, M.D., 46, of Austin, Texas, were charged for their role in alleged referrals of TRICARE beneficiaries for medically unnecessary “cancer screening” genetic tests and toxicology tests. Rao and Parameswara did not examine or speak with the beneficiaries they signed testing orders for and there was no physician-patient relationship between the physicians and these beneficiaries. Tests were repeated many times and beneficiaries often did not receive the results of their tests. From in or about May 2014 and until in or about June 2016, Rao, Parameswara and others caused the submission of over $36 million in false and fraudulent claims to TRICARE. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana, were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
In addition, as part of the Northeast Regional Takedown announced on Sept. 26, the District of New Jersey announced charges against the following:
Matthew S. Ellis, MD, 53, of Gainesville, Florida; Edward B. Kostishion, 59, of Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania; and Jeffrey Tamulski, 46, of Tampa, Florida. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health, Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey, and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 million in bribes. The case is being prosecuted by Assistant U.S. Attorney Bernard Cooney of the District of New Jersey.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 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.
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges Against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approximately 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“The defendants are alleged to have capitalized on the fears of elderly Americans in order to induce them to sign up for unnecessary or non-existent cancer screening tests,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “The genetic testing fraud schemes put personal greed above the preservation of the American health care system. The U.S. Attorney’s Office in South Florida, alongside our law enforcement and USAO partners, remains committed to protecting taxpayer dollars and the Medicare program from abuse.”
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of one billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation,” said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today’s law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
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In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (Lotus Health), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia, where Elmore was CEO. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Georgia, for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, MD, 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana, were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Federal Inmate Charged with Possession of DrugsRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tavon Johnson, age 29, an inmate at the Federal Correctional Institution, Allenwood (FCI Allenwood), was indicted on September 26, 2019, for possession of a controlled substance.
According to United States Attorney David J. Freed, the indictment alleges that Johnson was found on May 21, 2018 in possession of 120 strips of suboxone, a prescription opioid narcotic, hidden on his person after receiving a visit.
The charges stem from an investigation by officers at FCI Allenwood and agents of the Federal Bureau of Investigation. Assistant United States Attorney Geoffrey MacArthur is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Johnson is facing a maximum of twenty years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Fayette County Man Sentenced to 33 Months for Firearms Straw PurchasesRead the Press Release
LEXINGTON, Ky. – Ronald Mark Harrison, 49, of Lexington, Kentucky, was sentenced to 33 months in federal prison on Friday, by United States District Judge Danny C. Reeves, for acquiring firearms through the making of false statements.
In June 2017 and February 2018, Harrison purchased several firearms from Bud’s Gun Shop in Lexington. During the purchases, Harrison provided false information to the store claiming to be the true purchaser of these firearms when, in fact, he was obtaining the firearms on behalf of a co-defendant, Lawrence Westbrook III, a convicted felon. These types of transactions are commonly known as “straw purchases” and are prohibited under federal law. Harrison previously pled guilty to two counts involving the acquisition of these firearms. As part of his plea, Harrison further admitted to obtaining other firearms and later trading them to Westbrook in exchange for narcotics.
On August 23, Westbrook pled guilty to charges involving the possession of methamphetamine with the intent to distribute, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Westbrook is set to be sentenced on December 13. He faces up to life in prison and a maximum fine of $5 million. However, any sentence will be imposed by the Court after consideration of the United States Sentencing Guidelines and applicable federal sentencing statutes.
Under federal law, Harrison must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of 3 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Stuart L. Lowery, Special Agent in Charge, ATF, Louisville Field Division, and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly made the announcement.
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 PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Extradited Israeli Fugitive Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. — Yaniv Gohar, 36, formerly of Berkeley, pleaded guilty today to conducting an illegal gambling business, conspiracy to commit money laundering, and failure to appear, U.S. Attorney McGregor W. Scott announced.
According to court documents, Gohar created and led an organization that installed and maintained video slot machines at businesses open to the public across Northern California. Gohar then created a system by which he could launder the proceeds of his lucrative gambling business, involving shell companies and paying cash to employees of a co-defendant’s business in exchange for money transfers from that co-defendant. In total, Gohar laundered at least $492,475 through his co-defendant’s business from Jan. 2015 through Dec. 2017. Gohar also laundered his gambling proceeds by acquiring a boat and real estate in the San Francisco Bay Area.
Court documents also detail Gohar’s escape from the United States by charter jet through Mexico, France, and Israel. Gohar was first arrested on Dec. 8, 2017, in connection with his initial charges and released two weeks later on bond over the government’s objection. Four days later, he violated the terms of his release by failing to stop after allegedly crashing his Porsche Panamera into a parked car in Berkeley. He was cited by Berkeley police for reckless driving. On Jan. 3, 2018, he failed to appear for the violation hearing, and he remained at large for more than a year. In Sept. 2018, a superseding indictment charged Gohar with failure to appear and other offenses. Gohar was arrested and extradited from Israel in July 2019.
Finally, court documents detail threats that Gohar made to at least two witnesses in the investigation, including threatening to break the legs of a confidential source.
This case is the product of an investigation by the Federal Bureau of Investigation and California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case. Significant assistance was provided by the Department of Justice’s Office of International Affairs and Israeli authorities.Yaniv Gohar’s brother and co-defendant, Orel Gohar, 28, also fled the United States in December 2017 and remains at large. Anyone with information about his whereabouts should call the Federal Bureau of Investigation at (916) 746-7000.
Co-defendants Eran Buhbut, 34, of Oakland, pleaded guilty in August to conducting an illegal gambling business and awaits sentencing. Co-defendants May Levy, 28, of Walnut Creek, Atir Dadon, 34, of Sherman Oaks, Bar Shani, 27, of San Francisco, and Adam Atari, 35, of Sherman Oaks, have pleaded guilty and have been sentenced. Dadon and Shani are currently serving their sentences.
Co-defendant Raz Razla, 48, of Sherman Oaks, is charged with making false statements to the grand jury. The charge against Razla is only an allegation; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Gohar is scheduled to be sentenced by Judge Garland E. Burrell Jr. on Dec. 13, 2019. Gohar faces a maximum statutory penalty of five years in prison for the illegal gambling offense, 20 years in prison for the money laundering conspiracy, and five years in prison for failure to appear (to be served consecutively to the other sentences imposed). The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Defendant sentenced for a second time for using counterfeit checks to buy United States Postage StampsRead the Press Release
ATLANTA - John Lamb, a/k/a Johnny Lamb, has been sentenced to federal prison for a second time for again using counterfeit checks for purchases from the United States Postal Service (USPS).
“Lamb proves that some people never learn,” said U.S. Attorney Byung J. “BJay” Pak. “He once again used counterfeit checks to purchase postal products and again will serve time in a federal prison. If you seek to steal from our public institutions, and ultimately the American people, you will be prosecuted and sent to prison every time.”
“This career offender stole from the Postal Service for his own financial gain and the sentence sends a message to others to deter from these types of illegal acts,” said David M. McGinnis, Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to investigate and apprehend individuals that engage in criminal activities against the nation's mail system.”
According to U.S. Attorney Pak, the charges and other information presented in court: From September 2018 through March 2019, John Lamb a/k/a Johnny Lamb engaged in a scheme to defraud the USPS throughout the Southeastern United States, including North Georgia. Lamb negotiated over 200 counterfeit and forged checks at post offices in Georgia, Tennessee, North Carolina, Alabama, and Kentucky, defrauding the United States Postal Service of over $140,000. The value of these checks ranged from $500 to $950, which he used to buy U.S. postage stamps.
The U.S. Attorney’s Office for the Northern District of Georgia prosecuted Lamb in 2014 for using counterfeit checks to buy over $500,000 worth of U.S. Postal Service products, including stamps and services. He served a sentence in federal prison.
Lamb was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $143,960. Lamb was convicted on these charges on June 20, 2019, after he pleaded guilty.
The U.S. Postal Inspection Service investigated this case.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted 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.
Davenport Man Sentenced to 260 Months in Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa- On September 25, 2019, United States Attorney Marc Krickbaum announced, Demajor Alexander Nettles, age 26, of Davenport, was sentenced by United States District Court Chief Judge John A. Jarvey to 200 months in prison for Possession of Methamphetamine with Intent to Distribute and 60 months in prison Possession of a Firearm in Furtherance of a Drug Trafficking Offense. These sentences were ordered to run consecutively. Nettles was ordered to serve four years of supervised release following his prison term and to pay $200 to the Crime Victims’ Fund.
On May 20, 2019, Nettles pleaded guilty and admitted he distributed cocaine base to another individual. He further admitted that during the course of a search warrant executed on his hotel room officers located cocaine base and methamphetamine, a digital scale, packaging material, and a loaded firearm. Nettles admitted that $1,974 dollars in his possession were proceeds from narcotics trafficking.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhood (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.
Cuban Citizen Sentenced for Making False Statements on an Application for Lawful Permanent Residence and for Theft of Government FundsRead the Press Release
A Cuban citizen and high-ranking official in the Cuban government living in Miami, Florida, was sentenced to six months in prison for making false statements in his application for lawful permanent residence and for theft of government funds.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro the of the FBI’s Miami Field Office and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Saul Santos Ferro, 74, previously pleaded guilty to one count of making false statements in an immigration document and theft of government funds. Santos was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida who also ordered Santos to be removed to Cuba immediately upon completion of his sentence and pay restitution in the amount $12,522.28.
According to admissions in court documents, Santos made a number of lies and misrepresentations in his application to register as a permanent resident, which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status. Specifically, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a Major in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades and was involved in arresting and detaining political dissidents in Cuba.
Additionally, Santos admitted that he falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and falsely stated that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits. In fact, Santos told a series of lies about his past employment with the DSE to U.S. immigration authorities in the course of obtaining authority to enter the United States on a visitor visa in 2011 and 2012.
Santos further admitted to receiving Supplemental Security Income (SSI) benefits to which he was not entitled. SSI is a program funded by tax dollars and administered by the Social Security Administration to provide the elderly and people with disabilities with cash for basic needs including food, clothing and shelter. Santos and his wife qualified for and began receiving SSI benefits in September 2014, but by April 2015, Santos and his wife misrepresented their living situation and began receiving more money than they were entitled to receive. Because of his misrepresentation, the Court held Santos responsible for overpayments, which amounted to $28,491.83.
The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Social Security Administration Office of Inspector General with support from the FBI’s International Human Rights Unit investigated the case.
Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section, with the support of historian Joanna Crandall and Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida, prosecuted the case.
Covington Woman Indicted for Theft of Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that HAYDEE ARMAS SANTANA (“SANTANA”), age 56, of Covington, Louisiana, was indicted September 26, 2019 by a federal grand jury for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, beginning in 2015, SANTANA filed for, and became eligible for, Social Security Supplemental Security Income (“SSI”) disability payments. According to the indictment, SANTANA submitted a Form SSA-8001, under penalty of perjury, to the SSA in which she denied owning additional real property other than her home and claimed she only had $200.00 in a Citizen Bank & Trust checking account. SANTANA’s SSI application concealed an Iberia Bank account and her ownership in at least two additional pieces of real property, including one located in Miramar Beach, FL. In total, SANTANA fraudulently obtained over $31,000.00 in SSA SSI disability benefits.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, SANTANA faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man who tried to run a woman off the road and chased her into the police station, was sentenced in federal court today for illegally possessing a firearm.
Daleron Michael Monroe, 32, was sentenced by U.S. District Judge Roseann Ketchmark to six years in federal prison without parole. The court also ordered the federal sentence to be served consecutively to Monroe’s imprisonment in a Boone County Circuit Court case.
On Sept. 17, 2018, Monroe pleaded guilty to being a felon in possession of a firearm. Monroe admitted that he was in possession of a Springfield Armory .45-caliber semi-automatic handgun on April 29, 2018.
On that date, a woman identified in court documents as “L.P.” ran into the lobby of the Columbia, Mo., Police Department while fleeing from Monroe. According to court documents, Monroe had chased her in his vehicle at a high rate of speed while brandishing a firearm. During this chase, he rammed his vehicle into the vehicle containing L.P., and ran her and a co-worker off the road. L.P. was incredibly frightened of Monroe, according to court documents, due to previous threatening texts, the brandishing of the firearm, the high-speed chase, and the fact that he followed her into the police station.
An officer saw Monroe outside the lobby door. He began to run away as the officer approached. The officer thought he observed what might be a gun in Monroe’s right hand. Officers ran out of the police station with their weapons drawn and saw Monroe running towards a car parked in the middle of the street, with the driver’s door left open. One officer unsuccessfully attempted to apprehend Monroe; during the struggle the officer attempted to use his firearm, but it jammed. Monroe broke free and ran northbound towards Sixth Street. Officers continued to pursue Monroe on foot for approximately three blocks before he was apprehended in a residential back yard on Park Avenue.
Officers returned to Monroe’s vehicle, which was still running in the middle of the street, and saw the handgun laying in the front passenger side floorboard.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Monroe has prior felony convictions for unlawful possession of a firearm (in which he shot the victim in the face) and possession of a controlled substance. In addition to those felony convictions, Monroe also has a number of misdemeanor convictions, including four prior convictions for domestic assault, three prior convictions for resisting/interfering with arrest, and prior convictions for harassment to frighten or disturb another person and trespassing.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Capital Region Gang Member Pleads Guilty to Drug and Gun OffensesRead the Press Release
ALBANY, NEW YORK – Darrell Chapman, a/k/a “Bishop,” a/k/a “Sly Foxx,” age 39, of Rensselaer, New York, pled guilty today to narcotics and gun offenses.
The announcement was made by United States Attorney Grant C. Jaquith; New York State Police Superintendent Keith M. Corlett; and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chapman is a self-described founder of the East Bishop Family, a set of the Bloods gang operating in the Capital Region. In pleading guilty, Chapman admitted to regularly obtaining distribution-size quantities of cocaine and heroin in New York City, which he and others sold in the Albany area. In addition to Albany, Chapman’s drug-distribution operations reached to Rochester, New York, and to Pennsylvania.
In the early morning hours of October 18, 2017, Chapman was stopped returning to Albany from New York City with 250 grams of heroin. Later in the day, law enforcement seized over 100 grams of cocaine from Chapman’s jewelry store, “The Freezer,” on South Pearl Street in Albany, and seized digital scales, a money counter, and $3,910 in cash from Chapman’s home in Rensselaer. In searching a Chevy Malibu parked behind Chapman’s home, law enforcement seized approximately 1.5 kilograms of cocaine, cutting agent, and additional digital scales. Law enforcement also seized four handguns and two rifles, some of which were loaded, and over 100 rounds of ammunition. Chapman admitted he used the guns to protect his drugs and drug proceeds.
In pleading guilty, Chapman agreed to be sentenced to 262 months in prison, to be followed by 5 years of supervised release. Senior United States District Judge Fredrick J. Scullin Jr. will sentence him on June 10, 2020.
This case was investigated by the New York State Police and the FBI, with assistance from the Albany County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Burlington Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa - United States Attorney Marc Krickbaum announced on September 25, 2019, Tyreon Leseanjea Woodard, age 22, was sentenced by United States District Court Chief Judge John A. Jarvey for Felon in Possession of a Firearm. Woodard was sentenced to a prison term of 70 months to be followed by a term of supervised release of three years. Woodard was ordered to pay $100 to the Crime Victims’ Fund.
Woodard pleaded guilty to the offense on May 15, 2019, and admitted on September 13, 2018, he possessed a loaded, semi-automatic Smith and Wesson nine-millimeter pistol, a loaded semi-automatic Zastava rifle, and a loaded semi-automatic rifle. Woodard had previously been convicted of a felony and was not allowed to possess firearms.
This case was investigated by the Burlington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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.
Buffalo Woman Pleads Guilty to Selling Cocaine and Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
www.usdoj.gov/usao/nywBUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Danielle Ruger, 27, of Buffalo, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to possess with intent to distribute cocaine and crack cocaine. The charges carry a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorneys Laura A. Higgins and Misha A. Coulson, who are handling the case, stated that in the early morning hours of June 3, 2018, the defendant was a passenger in a vehicle stopped by the Buffalo Police Department after it was observed committing traffic violations for excessive tinted windows and speeding. Co-defendant Brandon Cooley was driving the vehicle.
Officers searched the vehicle after detecting a strong odor of marijuana coming from it. Quantities of suspected cocaine and crack cocaine were recovered, along with marijuana, a scale, gloves, packaging, and seven cellphones.
Charges remain pending against Brandon Cooley. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for February 27, 2020, before Judge Wolford.
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