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Friday 27 September 2019
Buffalo Man Pleads Guilty to Selling Heroin and FentanylRead 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 Jose Velez, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to distribution of heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorney Justin Bish, who is handling the case, stated that between June 1 and July 12, 2017, the Drug Enforcement Administration conducted five undercover purchases of heroin and fentanyl from the defendant in exchange for cash.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 8, 2020, before Judge Skretny.
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Brooklyn Businessman Pleads Guilty to Failing to Pay over Employment TaxesRead the Press Release
A Brooklyn, New York, businessman pleaded guilty today to failing to collect, truthfully account for, and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents and information provided to the court, Zhi Hui Zheng owned and operated Good Time Sewing Inc. and Perfect Made Apparel Inc., which did business in Brooklyn. As the owner and operator of these businesses, Zheng was responsible for collecting, truthfully accounting for and paying over to the Internal Revenue Service (IRS) Social Security, Medicare and income taxes withheld from his employees’ wages. For seventeen consecutive quarters, beginning from the first quarter of 2012 and continuing through the first quarter of 2016, Zheng failed to collect and pay over the required employment taxes and failed to file the corresponding Forms 941 with the IRS. Zheng has admitted that he did not pay approximately $688,234 in employment taxes due to the IRS.
Sentencing is scheduled for Jan. 14, 2020, before U.S. District Court Judge Nicholas G. Garaufis. The defendant faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark Kotila and Christopher O’Donnell of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Birmingham Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM – A federal grand jury on Thursday indicted a Birmingham man for being a felon in possession of a firearm, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson
A one-count indictment filed in U.S. District Court charges RAYMOND DEJUAN SHINE 38, with being a felon in possession of a firearm. Shine was arrested by federal agents on September 12, 2019 and made an initial appearance in the United States District Court.
“We will not sit idly by when given the opportunity to prosecute convicted felons who continue to abuse the system,” Town said. “Defendants like Shine will be prosecuted under federal law where there is no bail and there is no early parole.”
“Reducing the potential for violent crime that have negative effects to our neighborhoods was critical due to ATF partnering with our state, local and federal counterparts,” Marcus said.
The maximum penalty for being a felon in possession of a firearm is ten years in prison and a $250,000 fine.
ATF investigated the case, which Assistant U.S. Attorney John Camp is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Bangor Ambulance Company Settles False Claims Act AllegationsRead the Press Release
PORTLAND, Maine: United States Attorney Halsey B. Frank today announced that a Bangor ambulance company has agreed to pay $138,285.30 to settle allegations that it violated the federal False Claims Act (“FCA”).
The civil settlement agreement resolves allegations that Meridian Mobile Health, L.L.C., doing business as Capital Ambulance (“Capital”), improperly billed Medicare for nonemergency ambulance transportation of patients discharged from Eastern Maine Medical Center (“EMMC”) from October 2016 through February 2018. The government contended that such patients were not “bed-confined,” and did not otherwise medically require transportation by ambulance. The government also contended that EMMC personnel provided Capital with certification statements containing incomplete or incorrect information about the medical necessity of transporting the patients via ambulance, information Capital later used to bill Medicare.
Prior to the government’s lawsuit, Capital identified instances where it had billed and received payment from Medicare for nonemergency ambulance transports originating at EMMC that were not medically necessary. Capital voluntarily disclosed these results to the U.S. Attorney’s Office for the District of Maine. Capital also cooperated throughout the investigation, and implemented enhanced internal compliance and remedial measures. Federal authorities encourage health care providers to cooperate with investigations involving the possible submission of false claims to federal programs. Entities or individuals that make proactive, timely and voluntary self-disclosures to the U.S. Attorney’s Office may receive credit during the resolution of a later FCA case.
The U.S. Department of Health and Human Services, Office of Inspector General investigated the case. The civil action is docketed United States v. Meridian Mobile Health, L.L.C. d/b/a Capital Ambulance, 19-cv-00440-JDL (D. Me.)
Baltimore Felon Sentenced to Eight Years in Federal Prison for Distributing Heroin, Cocaine and FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Floyd Montague, age 28, of Baltimore, to eight years in federal prison, followed by three years of supervised release, for possession with intent to distribute heroin, cocaine, and fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees; Chief Thomas J. Ledwell of the Westminster Police Department; and Baltimore City Sheriff John Anderson.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. Armed drug dealers, like Floyd Montague, are on notice that gun crime may lead to federal time, where there are no suspended sentences and no parole—ever.”
According to Montague’s plea agreement, on November 29, 2018 and January 29, 2019, Montague met with an individual working with law enforcement at a gas station in Baltimore County. On both occasions the individual got into the front passenger seat of Montague’s vehicle and Montague sold the individual drugs. Specifically, on November 28, 2018 Montague sold the individual 20 vials containing 3.69 grams of cocaine; 10 bags containing 1.2 grams of heroin, and a paper fold containing .503 grams of heroin. On January 29, 2019, Montague sold the individual 24 baggies containing 2.96 grams of a mixture of heroin and fentanyl and 40 vials containing 4.43 grams of cocaine.
Following the sale of drugs on January 29, 2019, police attempted to arrest Montague, but Montague drove his vehicle into oncoming traffic and fled. During his flight, Montague struck an undercover vehicle being driven by police officers, causing extensive damage to the police vehicle. Montague turned into a lumber yard, drove through a chain link fence at the rear of the property, and after the vehicle came to a stop, fled on foot.
Montague was subsequently apprehended and searched. Officers recovered 17 bags containing a mixture of heroin, fentanyl, and cocaine, with a net weight of 2.48 grams. A search of Montague’s vehicle recovered cash totaling $927.80 and a 9mm semi-automatic handgun containing a magazine loaded with ten cartridges. The gun had been reported stolen on May 8, 2016. The firearm had several wet drops of blood on it. Montague’s DNA matched the DNA found in the blood on the firearm. Montague had at least two previous felony convictions and was prohibited from possessing a firearm or ammunition.
United States Attorney Robert K. Hur praised HSI, the Maryland State Police, the Carroll County Sheriff’s Office, the Westminster Police Department, and the Baltimore City Sheriff’s Office, which are part of the Carroll County Drug Task Force, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Goldsticker, who prosecuted the case.
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Armed robber sentenced to 11+ years in prison for Mountlake Terrace cannabis store robberyRead the Press Release
SEATTLE – One of two men who robbed a marijuana store at gunpoint was sentenced today in U.S. District Court to 138 months in prison and five years of supervised release for three federal felonies. ERIC HENRY WOODBERRY, 23, was convicted in June 2019, of robbery, possession of marijuana with intent to distribute and aiding and abetting possession of a firearm in furtherance of a crime of violence and a drug trafficking crime. At the sentencing hearing U.S. District Judge Richard A. Jones said, the robbery was a “very aggressive, very violent action on your part… (the victims) were terrified.”
According to records in the case and testimony at trial, WOODBERRY and co-defendant Bradford M. Johnson robbed Rainier Cannabis in Mountlake Terrace, Washington on November 21, 2017. The men entered the store carrying a stolen short-barreled rifle and a handgun. Both wore masks. They forced the employees onto the floor, took their phones and then ordered two of the employees to fill large bags with marijuana products and cash. When they saw police arriving at the front of the store, they ran out the back and attempted to hide from police in the nearby neighborhood. With the assistance of a police tracking dog, officers located WOODBERRY hiding in a boat trailered next to a house a few blocks from the store. Johnson was located a short time later.
Court records detail two other robberies and a Seattle robbery/burglary linked in police reports and state charging documents to WOODBERRY.
Johnson is scheduled for sentencing on November 22, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Mountlake Terrace Police Department, with assistance from the Lynnwood Police Department, Edmonds Police Department, Everett Police Department, King County Sheriff’s Office, and Washington State Patrol.
The case is being prosecuted by Assistant United States Attorneys Erin H. Becker and Stephen P. Hobbs.
Airline Passenger Charged in Disturbance After Flight Diverted to KCIRead the Press Release
KANSAS CITY, Mo. – A passenger aboard an Alaska Airlines flight diverted to Kansas City International Airport was charged in federal court today with interfering with a flight attendant.
Jwan Curry, 40, of Hamburg, New Jersey, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Missouri. Curry remains in federal custody pending an initial court appearance.
According to an affidavit filed in support of today’s criminal complaint, Curry was a passenger on an Alaskan Airlines flight that was scheduled to fly nonstop from John F. Kennedy Airport in New York to Los Angeles International Airport. Approximately one and a half to two hours into the flight, the affidavit says, Curry became agitated after not being able to use the bathroom in the front of the aircraft. Curry engaged in a verbal altercation with the attendants because they told him he could not use the forward lavatory, which was being used by crew members at that time.
Curry began screaming, yelling and using foul language, the affidavit says. He was swinging his arms and walking up and down the aisle. While waiting in line for the bathroom at the rear of the aircraft, he began swearing loudly around other passengers in line. He entered one of the rear lavatories and stayed there for an extremely long time. When he returned to his seat, he continued to be unruly.
The flight captain announced that all passengers should return to their seats and stop interfering with the flight attendants. The attendants notified the captain that Curry became increasingly physically dangerous. Curry was punching the seat and punching himself, the affidavit says, and threatened to “blow up” the plane. Passengers reported that Curry stated he was going to “kill everyone.”
Based on this information, it was decided to divert the flight. Four passengers were given flex cuffs and helped restrain Curry, who remained restrained in his seat for the remainder of the flight. After the plane landed at Kansas City International Airport, police officers arrived and took Curry into custody.
Under federal law, it is illegal to interfere with the performance of the duties of a flight crew member or flight attendant by assaulting or intimidating the crew member or attendant.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew A. Blackwood. It was investigated by the FBI and the Kansas City, Mo., Police Department.
17 Charged in Federal Indictment Alleging Cocaine/Heroin/Meth Trafficking in AustinRead the Press Release
This week, federal, state and local authorities arrested 13 individuals residing in Austin, including ringleader Juan Aguirre, in connection with a cocaine/heroin/methamphetamine trafficking operation, announced U.S. Attorney John F. Bash, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Houston Division, Austin Police Chief Brian Manley, Cedar Park Police Chief Sean Mannix, Texas Department of Public Safety Director Steven McCraw, Hays County Sheriff Gary Cutler, and IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office.
A federal grand jury indictment, returned in Austin and unsealed this week, charges those 13 plus four others residing in Austin who were previously arrested, with conspiracy to distribute a controlled substance. The defendants, allegedly, conspired to distribute more than five kilograms of cocaine, more than one kilogram of heroin, methamphetamine and other narcotics in Austin since December 2016. During this investigation, authorities seized approximately 20 kilograms of methamphetamine, seven kilograms of cocaine, five kilograms of heroin and more than $594,000 in U.S. Currency and assets attributed to this organization.
Defendants who are charged in this indictment include: 32-year-old Juan Angel Aguirre (aka “Larry Aguirre”), 35-year-old Thomas Daniel Garcia, 40-year-old Daniel Orozco, 34-year-old Sergio Gonzalez-Martinez (aka “Flaco”), 35-year-old Eloy Jaimes-Jaramillo, 30-year-old Francisco Jaimes-Jaramillo (aka “Pancho”), 30-year-old Magaly Ortiz-Cabrera, 37-year-old Isaias Rodriguez-Ramirez, 26-year-old Gerardo Cruz-Jaramillo, 24-year-old Christian Maya-Garcia (aka “Kike”), 32-year-old Saul Lopez, Jr., 32-year-old Salatiel Martinez-Fierro, 20-year-old Jesus Garcia-Vargas (aka “Junior”), 26-year-old Leonardo Flores-Solis, 28-year-old Ociel Diaz-Torres, 42-year-old Abel Duarte-Castro, and 21-year-old Daniel Maya-Garcia (aka “Pelon,” “Bola”). Gonzalez-Martinez, Flores-Solis, Diaz-Torres, and Duarte-Castro were already in custody prior to this week.
“The arrests made this week conclude an 18-month comprehensive investigation by the DEA and its state and local law enforcement partners here in Austin into the criminal activities of a dangerous poly drug trafficking organization,” said DEA SAC Glaspy. “With these arrests, key command and control elements of this criminal organization’s leadership have been apprehended and removed from the communities they sought to prey upon.”
All of the defendants remain in federal custody. Each defendant faces between ten years and life in federal prison upon conviction. Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the DEA, Austin Police Department, Cedar Park Police Department, Texas Department of Public Safety, Hays County Sheriff’s Office, and IRS-CI. U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) assisted with the arrests. Assistant U.S. Attorney Douglas Gardner is prosecuting this case on behalf of the Government.
Thursday 26 September 2019
Worcester Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday in federal court in Worcester to possession of child pornography.
Michael Chapman, 62, pleaded guilty to two counts of possession of child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 19, 2019. Chapman was charged by criminal complaint in March 2019.
On July 2 and 3, 2017, Chapman uploaded images depicting child pornography using his Skype account. He also possessed child pornography on Oct. 6, 2017, on his computer, which agents seized during the execution of a search warrant. Chapman is a registered Level 3 sex offender due to multiple prior convictions. In 2004, he was convicted of two counts of indecent assault and battery on a child under 14 and three counts of obscene material; in 1994, he was convicted of transporting in interstate commerce a visual depiction of a minor engaging in sexually explicit conduct; and, in 1984, he was convicted of rape of a child and four counts of lewd and lascivious acts.
The charge provides for a sentence of no greater than 20 years in prison, five years and up to a lifetime of supervised release, and a fine of $250,000. Due to prior convictions, Chapman faces a minimum mandatory sentence of 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations, Boston Field Division; Massachusetts State Police Superintendent Colonel Kerry A. Gilpin; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Woman admits to smuggling pure methRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Huntsville, Alabama, woman has entered a guilty plea to knowingly attempting to smuggle 20 pounds of pure meth, announced U.S. Attorney Ryan K. Patrick.
On June 21, 2019, Guadalupe Inostroza-Diaz drove a white Nissan Altima into the primary inspection area of the Border Patrol (BP) checkpoint near Falfurrias. An x-ray search of the vehicle revealed bundles of methamphetamine concealed within the walls of an ice chest located in the car’s trunk.
Laboratory analysis later confirmed the substance in the bundles was 100% pure meth totaling 12 kilograms with a value of more than $919,000.
U.S. District Judge David S. Morales will impose sentencing Jan. 15, 2020. At that time, Inostroza-Diaz faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine.
She has been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorneys Robert D. Thorpe Jr. and Julie K. Hampton prosecuted the case.
Westfield Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Westfield man pleaded guilty yesterday in federal court in Springfield to child pornography charges.
Stephen Cote, 48, pleaded guilty to three counts of receipt of child pornography, one count of distribution of child pornography and one count of offering to receive child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 18, 2019. Cote was indicted in January 2016, and he has been detained since his arrest on July 20, 2018.
On various occasions between April 30, 2013, and May 31, 2015, Cote sent and received child pornography by text and email, and also offered to receive child pornography. Cote exchanged child pornography with Bruce Singer, who was sentenced on July 19, 2019, to 96 months in prison for various child pornography offenses. During the course of Cote and Singer’s electronic communications, they discussed their shared interest in the sexual abuse of children.
The charges of receipt and distribution of child pornography each provide for a sentence of up to 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of seeking and offering to receive child pornography provides for a sentence of no greater than 30 years in prison, a lifetime of supervised release, and a $250,000 fine. According to the terms of the plea agreement, the Government will recommend a sentence of 15 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Northampton Police Chief Jody Kasper; and Easthampton Police Chief Robert Alberti made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Washington, D.C. Man Pleads Guilty to Federal Charge of Involuntary Manslaughter in Connection with a Fatal Crash on the Baltimore-Washington ParkwayRead the Press Release
Greenbelt, Maryland – Darnell E. Bassett, age 24, of Washington, D.C., pleaded guilty to involuntary manslaughter in connection with a fatal accident on the Baltimore-Washington Parkway. The guilty plea was entered on September 25, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Chief Gregory T. Monahan of the U.S. Park Police; and Chief Peter Newsham of the Metropolitan Police Department.
According to his plea agreement, on June 24, 2019, a vehicle driven by Bassett was involved in a collision with a District of Columbia Metropolitan Police cruiser in northeast Washington, D.C. The police vehicle was disabled, but Bassett continued driving at a high rate of speed, going the wrong way on a one-way street. Another marked Metropolitan Police vehicle pursued Bassett with its lights and siren activated. Bassett did not stop, making his way into Maryland on the Baltimore-Washington Parkway.
Bassett continued driving northbound on the Baltimore-Washington Parkway at a high rate of speed and passed other vehicles by driving on the right shoulder of the highway. Sometime during the incident, one of his tires blew out, but Bassett nevertheless continued driving on the shoulder of the highway and passing other traffic. While driving at least 70 miles per hour, Bassett began to take the right-side exit ramp to the inner loop of Interstate 495, then veered left across the on-ramp and into the triangular painted safety zone between the ramp and the travel lanes, striking a Honda CR-V that was stopped in the safety zone. The Honda spun around and then turned onto its side. The driver of the Honda died as a result of the crash.
Bassett faces a maximum sentence of eight years in prison. As part of his plea agreement, Bassett is also required to pay restitution in the full amount of the victim’s losses and injuries caused to the victim and the victim’s vehicle, which includes but is not limited to the costs of the victim’s funeral and burial costs. U.S. District Judge George J. Hazel has scheduled sentencing for November 27, 2019 at 2:00 p.m.
United States Attorney Robert K. Hur commended the U.S. Park Police and the Metropolitan Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Morgan and Hollis Raphael Weisman, who are prosecuting the case.
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Washington Parish Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – BILLY C. PORTER, age 43, a resident of Bogalusa, Louisiana, was charged September 6, 2019, in a two-count indictment by a Federal Grand Jury with distribution of methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to the indictment, on April 30, 2019, and again on August 6, 2019, PORTER distributed fifty grams or more of a mixture or substance containing a detectable amount of methamphetamine.
If convicted, PORTER faces a mandatory minimum term of imprisonment of five years and a maximum of forty years’ imprisonment, a fine of up to $5,000,000.00 and at least four years of supervised release following any term of imprisonment.
This prosecution is part of an extensive investigation by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and firearms in the Bogalusa area.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney André Jones.
WDNY Takes Part in Federal Health Care Fraud TakedownRead the Press Release
FEDERAL HEALTH CARE FRAUD TAKEDOWN IN NORTHEASTERN U.S. RESULTS IN CHARGES AGAINST 48 INDIVIDUALS
Three Plead Guilty to One of Largest Health Care Fraud Schemes Prosecuted Involving Fraudulent Telemedicine Networks Targeting Elderly Patients Nationwide
WASHINGTON – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in loss and the distribution of over 3.25 million pills of opioids in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims, including charges against 15 doctors or medical professionals, and 24 who were charged for their roles in diverting opioids.
In addition to the new charges, today’s enforcement action also includes the guilty pleas of three corporate executives, including the Vice President of Marketing of numerous telemedicine companies and two owners of approximately 25 durable medical equipment companies, for their roles in causing the submission of over $600 million in fraudulent claims to Medicare. This is one of the largest health care fraud schemes ever investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice, which previously resulted in charges against 21 other defendants. The enforcement action also includes three additional recent guilty pleas by other defendants. In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI) announced today that all appropriate administrative actions would be taken based on these charges. As part of the announcement in April, CMS/CPI announced that it took administrative action against 130 DME companies that submitted over $1.7 billion in claims to the Medicare program.
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 District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigations (IRS-CI), Department of Defense-Defense Criminal Investigative (DoD-DCIS), Food and Drug Administration-Office of Inspector General (FDA-OIG), U.S. Postal Service-Office of Inspector General (USPS-OIG), the Medicaid Fraud Control Unit and other federal and state law enforcement agencies participated in the operation.
The charges and guilty pleas announced today continue to target corporate health care fraud involving fraudulent telemedicine companies and the solicitation of illegal kickbacks and bribes from health care suppliers in exchange for the referral of Medicare beneficiaries for medically unnecessary durable medical equipment and other testing. The charges also involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss to the public fisc, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement assistant U.S. attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and my Office, and our focus in this area continues to pay off.”
“Under the law, healthcare professionals are obligated to exercise appropriate care and judgment in the manner in which opiates are prescribed and distributed in order to ensure that such substances are, in fact, ‘controlled,’” said U.S. Attorney James P. Kennedy Jr. of the Western District of New York. “When such professionals abandon that obligation and instead engage in acts of fraud and deceit, they will be prosecuted.”
“As alleged, defendants charged in the Eastern District of New York used fraud and deceit to steal Medicaid and Medicare funds meant to protect our elderly and most vulnerable residents,” stated U.S. Attorney Donoghue of the Eastern District of New York. “As this initiative demonstrates, we will continue to bring to justice those that defraud our nation’s health care programs.”
“We continue to work closely with our law enforcement partners to identify, investigate and eliminate fraud, waste and abuse in the nation’s federal healthcare programs,” said Deputy Administrator and CPI Center Director Alec Alexander. “In this case, CMS will take swift administrative action against providers responsible for fraudulent billings to federal healthcare programs. CMS is committed to protecting vulnerable beneficiaries from exploitation and safeguarding taxpayer dollars.”“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law," said Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”
“Healthcare fraud is not a victimless crime—with unscrupulous providers preying on Medicare beneficiaries and taxpayers alike. Especially insidious is the fraud committed by healthcare professionals who are trusted to provide needed, quality services to patients,” said Special Agent in Charge Scott J. Lampert of HHS-OIG. “With our law enforcement partners, our agency will continue to thoroughly investigate medical providers and others involved in healthcare fraud.”
“The physicians who chose to violate their oaths to “Do no harm” are nothing more than drug dealers wearing a white lab coat,” said Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s New Jersey Field Division. “They have turned their backs on those most vulnerable. We will continue to vigorously pursue these doctors who violate the faith and trust of those who need help.”
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Among those charged in the District of New Jersey are the following:
Elliot Loewenstern, 56, of Boca Raton, Florida, the vice president of marketing of purported call centers and telemedicine companies, pleaded guilty on Sept. 24, 2019, for his role in one of the largest health care fraud schemes ever investigated by the FBI and HHS-OIG and prosecuted by the Department of Justice, which resulted in charges in April 2019 against 24 defendants. Loewenstern pled guilty to one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of solicitation of health care kickbacks. Loewenstern was the Vice President of Marketing of PCS CC LLC and a marketer for Video Doctor USA (Video Doctor) and Telemed Health Group LLC (AffordADoc) (collectively, the Video Doctor Network). In connection with his plea agreement, Loewenstern admitted causing the submission of over $424 million in fraudulent claims that resulted from the solicitation of illegal kickbacks and bribes in exchange for the referral of brace orders to brace providers. In connection with his guilty plea, Loewenstern admitted that he and others agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, brace suppliers and others in exchange for the arranging for doctors to order medically unnecessary orthotic braces for beneficiaries of Medicare and other insurance carriers. The beneficiaries were contacted through an international telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America, Loewenstern stated. Loewenstern admitted that many of these orders were written after only a short telephone call between the health care provider and the beneficiary, with whom the health care provider had no prior doctor-patient relationship. In addition, Loewenstern admitted that he was aware that the owners and other executives of the Video Doctor Network schemed to defraud investors and others by making false and fraudulent representations that the Video Doctor Network was a legitimate telemedicine enterprise that made revenue of “$10 million per year” and “20 percent profit” from payments by beneficiaries who enrolled in a membership program and paid for the telemedicine consultations. These statements were false because revenue was obtained by the Video Doctor Network through the receipt of illegal kickbacks and bribes, Loewenstern admitted. In connection with his plea agreement, Loewenstern agreed to pay $200 million in restitution to the United States, as well as forfeit assets and property traceable to proceeds of the conspiracy to defraud the United States. Loewenstern’s sentencing is set for Jan. 9, 2020, before U.S. District Judge Madeline Cox Arleo of the District of New Jersey, who accepted his plea. Loewenstern was charged along with Creaghan Harry, 51, of Highland Beach, Florida, and Lester Stockett, 52, of Medellin, Colombia, in an indictment charging one count of conspiracy to defraud the United States and pay and receive health care kickbacks and four counts of health care kickbacks. Stockett and Harry were separately charged with one count of conspiracy to commit money laundering. Stockett, the Chief Executive Officer, previously entered a plea of guilty to one count of conspiracy to defraud the United States and one count of money laundering. The case against Harry is pending. Trial has not been set. The case was investigated by FBI, HHS-OIG, and IRS-CI. The case is being prosecuted by Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section.
Joseph DeCoroso, M.D., 62, of Toms River, New Jersey, pleaded guilty for his role in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for durable medical equipment (DME), in many instances without ever speaking to the patients, while working for two telemedicine companies. Sentencing is set for Jan. 8, 2020. The case was investigated by FBI Newark and HHS-OIG. The case is being prosecuted by Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
Nelly Petrosyan, 56, of New York, New York, the owner and operator of orthotic brace suppliers in New York, New York, was indicted on one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and three counts of payment of health care kickbacks. The charges result from a $5.6 million conspiracy in which Petrosyan offered and paid kickbacks and bribes to several purported telemedicine companies in exchange for completed doctors’ orders of medically unnecessary orthotic braces for Medicare beneficiaries. Petrosyan and her coconspirators concealed the fraud by entering into sham contracts and producing false invoices characterizing the kickbacks and bribes as payments for “marketing.” The investigation was conducted by FBI Newark and HHS-OIG. The case is being prosecuted by Trial Attorney Darren Halverson.
Alice Chu, M.D., 62, of Fort Lee, New Jersey, was indicted on one count of conspiracy to commit health care fraud and four counts of health care fraud. The charges stem from Chu’s alleged submission of false and fraudulent claims to Medicare and private insurance companies for services that were medically unnecessary, never provided, not provided as represented or not eligible for reimbursement. Chu was allegedly induced by a financial incentive to order expensive and medically unnecessary lab tests that were paid for by Medicare. The investigation was conducted by FBI Newark, HHS-OIG, DOD-DCIS and FDA-OIC. The case is being prosecuted by Trial Attorney Rebecca Yuan of the Fraud Section.
Aaron Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 40, of Englishtown, New Jersey, owners of approximately 25 durable medical equipment companies, pleaded guilty on Sept. 18 and Sept. 25, respectively, for their participation in a health care fraud scheme related to their payment of kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Levit’s conduct admittedly caused losses in excess of $120 million and Williamsky’s conduct admittedly caused losses in excess of $170 million. Williamsky also pleaded guilty to a money laundering conspiracy related to his attempt to conceal at least $1.65 million of the proceeds of the fraud. The case was investigated by FBI, HHS-OIG, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Sean Sherman and Stephen Ferketic of the District of New Jersey.
Bernard Ogon, M.D., 46, of Burlington, New Jersey, pleaded guilty on Sept. 25 to one count of health care fraud conspiracy for his participation in a vast compounded medication telemedicine conspiracy. As part of the conspiracy, Ogon admittedly signed prescriptions for compounded medications (that is, medications with ingredients of a drug tailored to the needs of a particular patient) without having established a doctor-patient relationship, spoken to the patient or conducting any medical evaluation. Ogon often signed preprinted prescription forms—with patient information and medication already filled out—where all that was required was his signature. Then, instead of providing the prescription to the patient, Ogon would return the prescriptions to specific compounding pharmacies involved in the conspiracy. Ogon was paid $20 to $30 for each prescription he signed, and his participation in the conspiracy caused losses to health care benefit programs of over $24 million, including losses to government health care programs of over $7 million. The case was investigated by FBI Newark and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney Jason Gould of the District of New Jersey.
Joseph Santiamo, 64, of Staten Island, New York, a physician specializing in internal medicine and geriatrics was charged for allegedly conspiring to distribute and dispense controlled substances, including oxycodone, in exchange for sexual favors, and outside the usual course of professional practice and not for a legitimate medical purpose. The case is being prosecuted by Assistant U.S. Attorney Brian Urbano of the District of New Jersey.
Yana Shtindler, 44, of Glen Head, New York; Samuel “Sam” Khaimov, 47, of Glen Head, New York; Alex Fleyshmakher, 33, of Morganville, New Jersey; and Ruben Sevumyants 36, of Marlboro, New Jersey were indicted in connection with a scheme at Prime Aid Pharmacies (located in Union City, New Jersey and Bronx, New York) that included: (a) paying illegal bribes and kickbacks to doctors and doctors’ employees in exchange for prescription referrals to Prime Aid; (b) billing health insurance providers for medications that were never actually provided to patients; and (c) opening new pharmacies and concealing the true ownership of those pharmacies to obtain lucrative contracts they otherwise would not have obtained. The scheme of billing for medications that were never dispensed to patients was so egregious that Prime Aid received reimbursement payments of over $65 million for prescription medications that it never even ordered from distributors or had in stock. In total, Prime Aid’s multiple schemes defrauded Medicare, Medicaid, and private insurers out of at least $99 million. The case is being prosecuted by Assistant U.S. Attorney Joshua Haber of the District of New Jersey.
Eduard “Eddy” Shtindler, 36, the owner and operator of Empire Pharmacy in West New York, New Jersey, was charged by criminal complaint for paying bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. On occasion, Shtindler secreted cash bribes in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy. In addition, starting in 2015, Empire – at Shtindler’s direction – perpetrated a fraudulent scheme to induce doctors to send expensive specialty medication prescriptions to Empire. Specialty medications often required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. To receive prior authorization approval more quickly and successfully than any other pharmacies, Empire employees, including two pharmacists, repeatedly falsified prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In total, Empire defrauded Medicare and Medicaid out of at least $2 million. The case is being prosecuted by Assistant U.S. Attorney Joshua Haber of the District of New Jersey.
Matthew S. Ellis, 53, of Gainesville, Florida; Edward B. Kostishion, 59, 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 were indicted in connection with a genetic testing health care fraud scheme. 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 in bribes. The case is being prosecuted by Assistant U.S. Attorney Bernard Cooney of the District of New Jersey.
Among those charged in the Eastern District of Pennsylvania are the following:
Timothy F. Shawl, 60, of Garnet Valley, Pennsylvania, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. Shawl allegedly wrote prescriptions for controlled substances for patients without seeing, treating or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients amounting to over 29,000 oxycodone tablets. The FBI conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the Fraud Section.
Neil K. Anand, M.D., 42, of Bensalem, Pennsylvania, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, Pennsylvania, Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the U.S. Office of Personnel Management (OPM) and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” bags of medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances. Malik and Kundi allegedly wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova allegedly prescribed over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone totaling over 634,000 oxycodone tablets. The investigation was conducted by the FBI, HHS-OIG, USPS-OIG and OPM. The case is being prosecuted by Trial Attorney Debra Jaroslawicz.
Twelve indictments were unsealed involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, drove many miles to pharmacies in Mt. Laurel, New Jersey, Marcus Hook, Pennsylvania, Drexel Hill, Pennsylvania, and Kennett Square, Pennsylvania. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone. According to the indictments, the defendants would often travel together to the pharmacies to fill their forged prescriptions. Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock; Crystal Coleman, 31; Marques Russell, 35, and Joseph Michael Simmons, 31. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. The case was jointly investigated by the DEA’s Tactical Diversion Squad, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office and the Easttown Township Police Department. The cases are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes and Mary Kay Costello of the Eastern District of Pennsylvania.
Search and seizure warrants are being executed today at approximately six different locations. The search and seizures are being executed by law-enforcement officers from six federal agencies, including HHS-OIG, the FBI, USPS-OIG, DOL-OIG, DOD and OPM.
Among those charged in the Eastern District of New York are the following:
Anna Steiner, M.D., also known as “Hanna Wasielewska,” 63, of Valatie, New York, a licensed anesthesiologist, was charged in a superseding indictment for an alleged $17.4 million health care fraud scheme related to the payment of kickbacks in return for the ordering of DME, prescription drugs and diagnostic tests that were not medically necessary and not the result of an actual doctor-patient relationship. Steiner was originally indicted on July 9, 2019. The case was investigated by FBI and HHS-OIG. The case is being prosecuted by Fraud Section Trial Attorney Andrew Estes.
Dr. Denny Martin, 46, of New York, New York, a licensed Neurologist, was charged in a complaint for an alleged healthcare fraud scheme related to the billing of doctor home visits where none actually occurred. The case is being prosecuted by Assistant U. S. Attorney William P. Campos.
Andrew Barrett, 60, of New City, New York, and his former wife, pharmacy owner Phyllis Pincus, 58, of New City, New York, were charged by indictment with healthcare fraud and false claims in a scheme where they billed insurers for medications not actually dispensed to patients. In 2016, Barrett was sentenced to 43 months’ incarceration upon his guilty plea to tax fraud and healthcare fraud in which he billed insurers for medications not actually dispensed to patients. He was excluded from participation in the Medicare and Medicaid programs for over 20 years. The case is being prosecuted by Assistant U.S. Attorney William P. Campos.Kevin McMahon, 31, of Seaford, New York, a registered professional nurse, was charged in a misdemeanor information with possession of fentanyl, which he obtained through the course of his employment at Nassau University Medical Center. McMahon will plead guilty to the information pursuant to a plea agreement and has agreed to surrender his nursing license at the time of his plea. The case is being prosecuted by Assistant U.S. Attorney Erin E. Argo.
Among those charged in the Western District of New York are the following:Jillian Marks, 37, of Orchard Park, New York, a licensed nurse practitioner, was charged with obtaining controlled substances through fraud, wrongful use of government seal, and identity theft. With access to the Neighborhood Health Center in the City of Buffalo’s internal computer databases, the defendant allegedly abused her position and illegally accessed the Allscripts prescription prescribing portal. Marks allegedly prescribed approximately 2,000 dosage units of controlled substances such as Adderall and Oxycodone, in the names of health center patients, which she then had filled and picked up at local pharmacies. At one point, Marks allegedly forged a letter from the DEA in order to appear “good” to her employer and allegedly used the DEA seal illegally. The DEA conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Adler and Misha A. Coulson of the Western District of New York.
Karen Melton, 45, of Cuba, New York, was charged with obtaining controlled substances through fraud. Melton, a medical secretary working for a physician in Olean, New York, was not licensed to prescribe controlled substances. However, Melton allegedly used her access within the office to issue fraudulent prescriptions in her own name in both paper and electronic form. The prescriptions were allegedly issued without a legitimate medical purpose. Between September 2016 and May 2019, Melton allegedly issued 59 fraudulent prescriptions for controlled substances, including hydrocodone. The DEA conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Adler and Misha A. Coulson.
Among those charged in the District of Connecticut are the following:
Philippe R. Chain, M.D., has entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Connecticut, in which he will pay $300,000 to resolve allegations that he violated the False Claims Acts. Chain, who currently practices medicine in Florida, previously practiced medicine in Connecticut and performed telehealth services from Connecticut for a telemedicine company located in Las Vegas, Nevada. The telehealth services Chain provided involved prescribing compounded medications to TRICARE beneficiaries. TRICARE is the federal health care program for active duty military personnel, retirees, and their families. The government alleges that Chain caused pharmacies to submit false claims for compounded medications to TRICARE by issuing or approving prescriptions which were invalid, because Chain did not speak with or examine the patients in question and did not have an established physician-patient relationship with them, in exchange for compensation paid to Chain. This matter was investigated by the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot of the District of Connecticut.
Among those charged in the Western District of Pennsylvania are the following:
Emilio Ramon Navarro, M.D., 58, of Coal Center, Pennsylvania, was charged with unlawfully dispensing controlled substances and health care fraud. Counts 1 – 28 of the Indictment allege that from April 2018 until April 2019, Navarro unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to a person in return for sexual favors, either physically or by electronic communications, outside the usual course of professional practice and not for a legitimate medical purpose. Navarro is also charged in Count 29 with health care fraud for causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed controlled substances. This case was investigated by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit which includes: FBI, HHS-OIG, DEA, IRS-CI, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, USPS, Veterans Affairs-OIG, FDA-CI, OPM-OIG, and the Pennsylvania Bureau of Licensing. Assistant U.S. Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting the case.
Among those charged in the District of Columbia are the following:
Hope Falowo, a personal care aide, was charged by information with one count of healthcare fraud for her role in a $400,000 fraud scheme where she would bill Medicaid in the District of Columbia for services she never provided. The case is being prosecuted by Counsel to the Chief of the Health Care Fruad Unit Amy Markopoulos.
Nkiru Uduji, a personal care aide, pleaded guilty to one count of health care fraud conspiracy charged in an August 2019 Information. The charges stem from Uduji’s role in a $600,000 fraud scheme in which she billed for more than 24 hours in a day, for services that were not rendered, and for services that were procured by kickbacks. The case is being prosecuted by Counsel to the Chief of the Health Care Fruad Unit Amy Markopoulos.
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 $14 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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Virginia man admits to child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Alan Williams, of Hillsboro, West Virginia, has admitted to producing child pornography, U.S. Attorney Bill Powell announced.
Williams, age 54, pled guilty to one count of “Production of Child Pornography by Person Having Custody or Control.” Williams admitted to permitted a minor to engage in sexually explicit conduct to produce child pornography to be shared in February 2019 in Jefferson County.
Williams faces at least 15 years and up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Department of Homeland Security Investigations investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Vermont Man Pleads Guilty to Narcotics OffenseRead the Press Release
BOSTON – A Vermont man pleaded guilty today in federal court in Boston for his role in a cocaine conspiracy.
Lorenzo Deconinck, 60, of Jamaica, Vt., pleaded guilty to one count of conspiracy to distribute cocaine. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Dec. 19, 2019. Deconinck was charged in an indictment unsealed in March 2018.
Deconinck pleaded guilty to conspiring with David Cruz and others to distribute cocaine in Massachusetts. Specifically, between 2015 and 2016, Cruz obtained cocaine from sources in Mexico and caused the cocaine to be transported to the Springfield area via concealed compartments in a Nissan Juke. Deconinck then purchased more than 50 grams of cocaine from Cruz with the intent to distribute it.
Cruz previously pleaded guilty to drug and firearms offenses and is scheduled to be sentenced on Jan. 23, 2020.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistance was provided by the Internal Revenue Service’s Criminal Investigations, the DEA’s Carlsbad (Calif.) Resident Office, and Westfield Police Department. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the case.
Unites States Attorney’s Office Announces Arrest of Two Tied to Recent Roanoke Violence, including Eastern Avenue ShootingsRead the Press Release
Roanoke, VIRGINIA – Aaron Lee Woods of Roanoke, whose Eastern Avenue home was alleged to have been something like a “fast food operation for marijuana,” was arrested on a federal criminal complaint last week and charged with crimes related to federal drug trafficking and firearms offenses. United States Attorney Thomas T. Cullen made the announcement today as part of the Western District of Virginia’s ongoing Project Safe Neighborhoods initiative to reduce drug and violent crime. In a separate criminal complaint, U.S. Attorney Cullen announced the arrest of Tyrik Dausha Merchant on one count of being a convicted felon illegally in possession of a firearm.
“These arrests underscore the commitment of federal law enforcement to address drug trafficking and rising levels of violence in Roanoke,” U.S. Attorney Cullen stated today. “We are working closely with our partners at the police department and expect additional federal arrests in the near future.”
As alleged in the criminal complaint, Woods and others not named in court documents were involved in a conspiracy since at least 2017 to distribute large quantities of marijuana in the Roanoke Valley. Woods operated at times from a residence on Eastern Avenue leased in his name. On a typical day, witnesses described a steady stream of marijuana purchases at the house during the afternoon and evening hours. A dozen or more individuals, on average, would stop in to purchase marijuana from large vacuum sealed bags Woods kept on the coffee table in the living room while others played video games and socialized. Witnesses told law enforcement that firearms were frequently in view in the residence, on tables or leaning against the wall during periods of peak distribution.
The complaint alleges that the distribution activity culminated in a shooting death on July 10, 2018 at the Eastern Avenue address. According to witnesses, three prospective marijuana purchasers who left the residence empty-handed earlier in the day returned to the residence around 9:45 p.m. According to witnesses, something like a brick came through the front glass window, at which point two-way gunfire ensued. Woods, and others, began shooting from inside and in front of the residence. During the course of the shootout, one individual was shot in the head and neck and killed during an apparent attempt to flee the scene. Woods and others fled his Eastern Avenue residence following the shooting.
According to a separate complaint, on or about September 14, 2019, Merchant was at the 7-11 convenience store located at 3602 Williamson Rd., N.W. in the City of Roanoke. Witnesses and surveillance cameras showed Merchant approach a vehicle in the 7-11 parking lot, draw a pistol, and fire at the driver of that vehicle from a distance of no greater than four feet away. The driver of the vehicle returned fire, hitting Merchant several times. A Roanoke City Police officer was able to recover Merchant’s pistol from the parking lot where Merchant dropped it. Merchant had previously been convicted of a felony, and so was prohibited from possessing a firearm when these events occurred.
The investigation of these cases was conducted by the Roanoke City Police Department, the Bureau of Alcohol, Tobacco, Firearm, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Marshals Service, the Roanoke County Police Department, the Virginia State Police, the Bedford County Sheriff’s Office, and members of the area’s High Intensity Drug Trafficking Area Task Force [HIDTA]. Assistant United States Attorneys Kari Munro and Andrew Bassford will prosecute the cases for the United States.
These cases were brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A criminal complaint is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
U.S. Attorney’s Office Hosts Roundtables on Sexual Harassment and Racial Discrimination in HousingRead the Press Release
Anchorage, Alaska -- U.S. Attorney Bryan Schroder announced that on Wednesday, Sept. 18 and Thursday, Sept. 19, the U.S. Attorney’s Office and Department of Justice’s Civil Rights Division hosted roundtable discussions on combating sexual harassment and racial discrimination in housing in Fairbanks and Anchorage.
The events included state, tribal, and federal agencies, non-profit organizations, and crisis and legal service providers that often work with Alaska’s most vulnerable populations, who could also become victims of sexual harassment or racial discrimination in housing.
“These roundtables compliment the mission of the Attorney General’s Rural Alaska Anti-Violence Enforcement Network (RAAVEN). Many women facing violence and abuse in rural Alaska come to Anchorage or Fairbanks looking for a fresh start and new opportunities. These roundtables will help ensure that women and other vulnerable populations from all over Alaska are treated respectfully and fairly as they seek housing,” said U.S. Attorney Bryan Schroder.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.
Because victims may not be aware that the conduct they have experienced violates the Fair Housing Act or may not know where to turn, the U.S. Attorney’s Office and Department of Justice hope to collaborate with community organizations to raise awareness and help victims report abuse.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. In 2017, the Justice Department recovered more than $1 million in damages for victims. The Justice Department’s investigations frequently uncover sexual harassment or racial discrimination that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities. Many instances of sexual harassment or racial discrimination in housing continue to go unreported.
The roundtables were coordinated by Lauren Marks of the Housing and Civil Enforcement Section of the Civil Rights Division of Department of Justice.
The Department encourages anyone who has experienced sexual harassment or discrimination in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected].
U.S. Attorney McSwain Announces Charges as Part of Federal Health Care Fraud Takedown in Northeastern United StatesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain joined fellow Justice Department officials today at a press conference to announce a coordinated health care fraud enforcement action across seven federal districts involving more than $800 million in loss and the distribution of over 3.25 million opioid pills in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims. Of those 48 defendants, 15 are doctors or medical professionals, and at least 24 defendants were charged for their roles in diverting opioids. In the Eastern District of Pennsylvania, 17 defendants (five of whom are doctors or medical professionals) were arrested, and the conduct involved submission of more than $4 million in fraudulent claims and distribution of approximately 738,000 oxycodone pills to the streets of this District.
Today’s announcement comes one year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the District of New Jersey. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney McSwain. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and of my Office, and our focus in this area continues to pay off.”
At the press conference, U.S. Attorney McSwain announced details about the following cases charged in the Eastern District of Pennsylvania:
Timothy F. Shawl, M.D., 60, of Garnet Valley, PA, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. As alleged in the indictment, Shawl wrote prescriptions for controlled substances for patients without seeing, treating, or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients, amounting to over 29,000 oxycodone tablets. The Federal Bureau of Investigation (FBI) conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the DOJ Fraud Section.
The second case involves defendants Neil K. Anand, M.D., 42, of Bensalem, PA, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, PA. Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were each indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the United States Office of Personnel Management (OPM), and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” which were stuffed with medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM, and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances.
According to the indictment, Malik and Kundi wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova provided over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone, for a staggering total of over 634,000 oxycodone tablets distributed from this scheme. The investigation was conducted by the following agencies: FBI, Department of Health and Human Services – Office of Inspector General (HHS-OIG), United States Postal Service – Office of Inspector General (USPS-OIG), the Office of Personnel Management, the Pennsylvania Office of Attorney General, and the Philadelphia Police Department. The case is being prosecuted by DOJ Trial Attorney Jaroslawicz.
Additionally, 12 indictments were unsealed yesterday involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, allegedly drove to Pennsylvania pharmacies in Marcus Hook, Drexel Hill, and Kennett Square, and a New Jersey pharmacy in Mount Laurel, to fill these forged prescriptions. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone, which is approximately 75,000 oxycodone pills.
Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock, 29; Crystal Coleman, 31; Marques Russell, 35; and Joseph Michael Simmons. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. These cases were investigated by the Drug Enforcement Administration, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office, and the Easttown Township Police Department. They are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes, and Mary Kay Costello, all of the Eastern District of Pennsylvania.
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, as well as the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, District of New Jersey, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“Today's indictments confirm the FBI's commitment to hunting down doctors and other healthcare professionals who act like drug dealers. The opioid crisis is devastating families here in Philadelphia and across the country. The FBI and its law enforcement partners will continue to focus on corrupt physicians and others driving the epidemic,” said Michael T. Harpster, Special Agent in Charge of the Philadelphia Division of the FBI.
“Today’s law enforcement actions show we are holding alleged bad actors accountable and working to prevent further harm to beneficiaries and taxpayers,” said Maureen R. Dixon, Special Agent in Charge, Philadelphia Regional Office of the Inspector General, U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our law enforcement and community partners to combat health care fraud and drug diversion in the Philadelphia Region.”
“The DEA’s Diversion Investigators and Tactical Diversion Squads are missioned with the identification, investigation, and arrest of rogue DEA Registrants and drug trafficking organizations involved in the illegal distribution of controlled substances such as oxycodone and other prescription painkillers,” said Jonathan A. Wilson, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Working with our partner agencies such as the U.S. Department of Health & Human Services, the U.S. Department of Labor, and the Federal Bureau of Investigation, the DEA will continue to pursue federal criminal cases and parallel civil proceedings against the registrants and organizations that seek to divert these powerful painkillers that have contributed to the opioid epidemic.”
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, stated: “The Postal Service spends billions of dollars per year on health care related costs for postal employees, the majority of which is for legitimate purposes. However, a few medical providers try to take advantage of the system. USPS – OIG special agents will vigorously investigate health care fraud allegations that touch the Postal Service and will work with our law enforcement partners to bring fraudsters to justice.”
“The opioid, heroin, and fentanyl epidemic is devastating Pennsylvania communities, and it is fueled in part by prescription drug abuse,” said Pennsylvania Attorney General Josh Shapiro. “The defendants had a responsibility to help their patients, but instead they are charged with giving them dangerous opioids that they did not need. They also allegedly committed millions of dollars in insurance fraud, which causes rates for all consumers to increase. I’m proud to work with our law enforcement partners to put a stop to this criminal enterprise and protect the people of Pennsylvania.”
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.
U.S. Attorney Herdman to continue serving on Attorney General's Advisory CommitteeRead the Press Release
Attorney General William P. Barr announced the appointment of the following nine U.S. Attorneys to serve on the Attorney General’s Advisory Committee (AGAC): David Anderson, Northern District of California; Scott Brady, Western District of Pennsylvania; Maria Chapa Lopez, Middle District of Florida; Halsey Frank, District of Maine; Erica MacDonald, District of Minnesota; Christina Nolan, District of Vermont; Zach Terwilliger, Eastern District of Virginia; Tom Kirsch, Northern District of Indiana; and Nicholas Trutanich, District of Nevada.
“I am pleased to appoint these nine outstanding U.S. Attorneys to this key advisory committee. I am confident that they will serve with distinction,” Attorney General William P. Barr said. “The U.S. Attorneys who comprise the Attorney General’s Advisory Committee play a critical role in carrying out the Department of Justice’s important work, including its efforts to reduce violent crime, combat the opioid crisis, protect the most vulnerable, and enforce the rule of law.”
U.S. Attorney Justin Herdman and five other U.S. Attorneys will continue serving on the committee.
“I am honored to continue to serve on the Attorney General’s Advisory Committee,” Herdman said. “My colleagues around the country are doing important work to reduce violent crime, combat the drug abuse epidemic and enforce our nation’s laws.”
Attorney General Barr also announced that U.S. Attorney for the Northern District of Texas Erin Nealy Cox, a current member, will replace U.S. Attorney John Huber as the Vice Chair of the AGAC.
Chaired by U.S Attorney for the District of Columbia, Jessie K. Liu, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management, and operational issues impacting U.S. Attorneys’ Offices.
The bios of all U.S. Attorneys are available here.
U.S. Attorney Announces the Indictment of 13 Individuals for Federal Firearms ChargesRead the Press Release
Memphis, TN – On September 26, 2019, a federal grand jury in Memphis indicted 13 individuals for federal firearms violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
As charged in the indictments, all 13 of the defendants are prohibited by federal firearms laws from possessing firearms as a result of either prior violent felony convictions, prior drug felony convictions, or prior misdemeanor domestic violence convictions.
U.S. Attorney D. Michael Dunavant said: "Violent crime reduction is the top priority of this office and the Department of Justice. Many violent crimes are committed by prohibited persons with firearms, including convicted felons, persons with a history of domestic violence, and persons possessing firearms in furtherance of crimes of violence and drug trafficking. Under our PSN initiative, we focus on removing firearms from the hands of prohibited persons, and removing dangerous offenders from our streets. This office will aggressively prosecute and seek mandatory federal sentencing guidelines to target and remove from our communities those armed career criminals and career drug offenders who illegally possess firearms in Memphis and across West Tennessee. We are Fed Up. Gun Crime is Max Time."
Several defendants charged in this series of indictments are alleged to be convicted felons. Under federal law, it is illegal for an individual convicted of a felony to possess a firearm. This is a violation of Title 18, United States Code (USC), § 922(g)(1). A violation of this section is punishable by a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years. The penalty for a violation of § 922(g)(1) is enhanced when a defendant has a prior criminal record that includes three convictions for a violent felony or serious drug offenses. Under this enhanced sentencing provision, the defendant is subject to a mandatory minimum statutory sentence of at least 15 years imprisonment, and up to a maximum sentence of life imprisonment.
Federal firearms laws also prohibit an individual convicted of a misdemeanor crime of domestic violence from possessing a firearm. This is a violation of Title 18, USC, § 922(g)(9). An individual convicted of violating this section is subject to a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years.
It is also against federal law to possess or use and carry a firearm during or in relation to a crime of violence or a drug trafficking crime. This is a violation of Title 18, USC, § 924(c). A violation of this section is punishable by a mandatory minimum consecutive sentence of at least five years imprisonment and up to a maximum of life imprisonment.
Those charged in this recent group of indictments include:
Tico Hopson, 25, of Memphis, was charged with possessing a SCCY 9 mm pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Special Assistant U.S. Attorney Sam Winnig is prosecuting this case on behalf of the government.
Robert Webb, 40, of Memphis, was charged with possessing a Smith & Wesson .40 caliber pistol after previously being convicted of a misdemeanor crime of domestic violence, in violation of Title 18, USC, § 922(g)(9). Assistant U.S. Attorney Raney Irwin is prosecuting this case on behalf of the government.
Courtney Peterson, 31, of Memphis, was charged with possessing a stolen Sig Sauer .40 caliber handgun after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Christopher Cotten is prosecuting this case on behalf of the government.
William Martin, 29, of Memphis, was charged with possessing a firearm in furtherance of drug trafficking crime in violation of Title 18, USC, § 924(c); possession of a Glock 9 mm caliber pistol, a Ruger .380 caliber pistol, and a Remington Arms, Inc. 7 mm Magnum caliber rifle after previously being convicted of a felony in violation of Title 18, USC, § 922(g)(1); and possession of methamphetamine with intent to distribute, in violation of Title 18, USC, § 841(a)(1). Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
Euriqueo Holloway, 42, of Memphis, was charged with possessing a firearm in furtherance of drug trafficking crime in violation of Title 18, USC, § 924(c); possession of an American Tactical Incorporated .300 Blackout caliber pistol, a Jimenez Arms 9 mm caliber pistol, and a Remington Arms 12 gauge shotgun after previously being convicted of a felony in violation of Title 18, USC, § 922(g)(1); and possession of marijuana with intent to distribute, in violation of Title 18, USC, § 841(a)(1). Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
Kaleb Green, 29, of Memphis, was charged with possessing a Smith & Wesson 9 mm Parabellum caliber pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
Michael Covington, 30, of Memphis, was charged with possessing PMC 9 mm Luger caliber ammunition after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
Demarcus Burks, 33, of Memphis, was charged with possessing a Kel-tec 9 mm pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Marques Young is prosecuting this case on behalf of the government.
Jeremiah Williams, 34, of Memphis, was charged with possessing a Taurus 9 mm pistol after previously being convicted of a misdemeanor crime of domestic violence, in violation of Title 18, USC, § 922(g)(9). Assistant U.S. Attorney Raney Irwin is prosecuting this case on behalf of the government.
Kenneth Taylor, 31, of Memphis, was charged with possessing a Sturm, Ruger & Company 9 mm caliber pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Raney Irwin is prosecuting this case on behalf of the government.
Omar Fair, 29, of Memphis, was charged with possessing a Rossi (Taurus International) .357 caliber revolver after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1); and after previously being convicted of a misdemeanor crime of domestic violence, in violation of Title 18, USC, § 922(g)(9). Special Assistant U.S. Attorney Sam Winnig is prosecuting this case on behalf of the government.
Montinez Wright, 30, of Memphis, was charged with possessing a Smith & Wesson .40 caliber pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1); and while on the grounds and premises of a school zone, the Sherwood Elementary School, in violation of Title 18, USC, § 922(q)(2)(A). Assistant U.S. Attorney Will Crow is prosecuting this case on behalf of the government.
Jason Smith, 36, of Memphis, was charged with possessing a Diamondback multi-caliber pistol in furtherance of drug trafficking crime in violation of Title 18, USC, § 924(c); possession of a firearm after previously being convicted of a felony in violation of Title 18, USC, § 922(g)(1); and possession of cocaine base with intent to distribute, in violation of Title 18, USC, § 841(a)(1). Assistant U.S. Attorney Neal Oldham is prosecuting this case on behalf of the government.
These federal firearms cases are part of Project Safe Neighborhoods (PSN) initiative, 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. In 2017, the PSN Task Force 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, and local law enforcement and the community to develop effective, locally based strategies to reduce violent crime. The PSN Task Force includes the U.S. Attorney’s Office; the Shelby County District Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through targeted investigations and aggressive prosecution.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Announces the Closing of an Investigation After Last Defendant Involved in Unemployment Insurance Benefits Scheme Is Sentenced TodayRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced late today Diane McKinny, 66, of Rutherfordton, N.C., to three years of probation, ten months of which she will spend in home confinement, for her role in an unemployment benefits scheme while working as a payroll clerk and corporate secretary for Diverse Corporate Technologies, Inc. (DCT), announced U.S. Attorney Andrew Murray.
In July 2017, the United States Attorney’s Office issued a statement acknowledging the opening of a federal criminal investigation into alleged criminal activities of certain members of the Word of Faith Fellowship (WoFF). As a result of the investigation, in addition to McKinny, her co-conspirator, Marion “Kent” Covington, was previously sentenced to 34 months in prison for orchestrating the fraudulent scheme. Two other WoFF members, Dr. Jerry Gross and Jason Lee Gross, received probationary sentences for executing a similar unemployment benefits scheme at the Foot & Ankle Center of the Carolinas, P.A., a podiatry clinic located in Forest City, N.C. At today’s sentencing hearing, Judge Reidinger ordered McKinny to pay $466,960.30 as restitution, jointly and severally with Covington, Dr. Jerry Gross and Jason Lee Gross.
In making today’s announcement, U.S. Attorney Murray said, “I want to thank Homeland Security Investigations, the Office of Inspector General of the Department of Labor, and the SBI for their outstanding investigation of this matter. I also want to thank Rutherford County District Attorney Ted Bell for his continued coordination and assistance throughout this investigation. Following an exhaustive review and evaluation of all of the available information, the United States Attorney’s Office has concluded its investigation into this matter.”
“Diane McKinny conspired with her co-defendant to defraud the State of North Carolina in an unemployment insurance (UI) fraud scheme by placing DCT’s employees on UI benefits while those employees continued to work at the business in excess of program eligibility requirements. We will continue to work with our law enforcement partners to protect the integrity of the UI system from those who exploit these benefit programs,” said Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“Unemployment insurance benefits are intended as a safety net for the state’s residents who truly find themselves out of work. Thanks to the investigative work of our law enforcement partners, we were able to expose the benefit fraud committed by this defendant,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte.
“While it takes coordination to pull off a fraud scheme like this one, it takes even greater coordination to investigate and prosecute individuals who think it’s okay to take advantage of North Carolina taxpayers. I am grateful for the work of our agents, Homeland Security Investigations Charlotte, the Department of Labor - Office of the Inspector General and U.S. Attorney Murray in working together to ensure justice is served,” said SBI Director Robert Schurmeier.
According to court documents filed in this and related cases and statements made in court, Covington was the president, owner, and registered agent of DCT, a plastics manufacturing company located in Rutherford County, N.C., where McKinny was employed. In late 2008, DCT was struggling financially. Covington, with the assistance of McKinny, orchestrated a scheme to defraud the State of North Carolina by placing DCT employees on Unemployment Insurance Benefits (UI Benefits) while those employees continued to work at DCT in excess of what was permitted by the program eligibility requirements. The scheme allowed DCT to reduce the cost-of-labor component of its cost-of-goods-sold, thereby increasing its net profitability.
According to court records, in November or December 2008, in order to accomplish the scheme, Covington “laid off” nearly all of the employees at DCT. Some employees were provided with separation notices and were instructed on how to file their own claims for UI Benefits. Those employees received UI Benefits based on their asserted “totally unemployed” status. Next, as court records show, Covington called a business meeting at DCT and informed the remaining DCT employees that the company could no longer afford to pay their wages, and that they therefore would be placed on UI Benefits, but that Covington expected the employees to continue to work at DCT, just as they had before they were laid off, in order to help the business survive. Around the same time, McKinny filed claims for UI Benefits on behalf of the employees whom Covington had required to continue working at DCT while they received UI Benefits. In filing the necessary information for UI Benefits, McKinny certified the claimants’ initial and continuing eligibility to receive those benefits.
At Covington’s direction, at least five of the employees for whom McKinny made claims for UI Benefits then continued to work at DCT on a full-time or near-full-time basis while collecting UI Benefits every week. Through the operation of the scheme outlined above, the co-defendants obtained more than six months of free labor for DCT, paid for by the government, instead of by the business itself.
By September 2009, other businesses run by members of the Word of Faith Fellowship, the church community with which Covington and McKinny were affiliated, were facing their own financial struggles related to the economic downturn. Court records show that Covington, McKinny, and others began to promote the scheme that they had devised at DCT to those businesses, and several additional businesses implemented versions of the scheme. In total, between November 2008 and March 2013, these various implementations of the scheme resulted in well over $250,000 in fraudulent claims for UI Benefits.
In making today’s announcement U.S. Attorney Murray commended the Department of Labor, Office of Inspector General, Homeland Security Investigations, and the SBI for their thorough investigation of this case.
Assistant U.S. Attorney Daniel Bradley, of the U.S. Attorney’s Office in Asheville, prosecuted the cases related to this investigation.
U.S. Air Force Master Sergeant Indicted with Federal Firearm and Drug ChargesRead the Press Release
LAS VEGAS, Nev. – An active-duty United States Air Force Master Sergeant currently assigned to Nellis Air Force Base in Las Vegas was indicted by a federal grand jury on September 24, 2019, with federal firearm and drug trafficking charges, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
The indictment charges Michael Reimers, 39, of Las Vegas, with two counts of distribution of a controlled substance, one count of engaging in the business of dealing in firearms without a license, and one count of sale of a firearm to a prohibited person.
According to allegations in the indictment, from July 2019 to September 2019, Reimers sold cocaine and more than 50 grams of methamphetamine. In addition, he sold an AK-47 7.62mm caliber rifle, a .25 caliber handgun, and a 12 gauge shotgun without a license. The shotgun was sold to an illegal alien.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the DEA, along with the Las Vegas Metropolitan Police Department and Henderson Police Department. Assistant U.S. Attorney Shaheen Torgley is prosecuting the case.
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Two Washington Parish Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DERRICK MARK, a/k/a “Dopeman,” age 40, and CHRISTOPHER HARRIS, age 29, both residents of Bogalusa, Louisiana, were charged September 6, 2019, in a five-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiring to distribute and possess with intent to distribute methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to the indictment, beginning at a time unknown, but prior to April 5, 2019, and continuing until the present, MARK and HARRIS conspired with each other to distribute and possess with intent to distribute fifty grams or more of a mixture or substance containing a detectable amount of methamphetamine. Both MARK and HARRIS are also charged with distribution of a mixture or substance containing a detectable amount of methamphetamine and MARK is charged with possessing a firearm in furtherance of a drug trafficking crime.
If convicted, both MARK and HARRIS face a mandatory minimum term of imprisonment of five years and a maximum of forty years’ imprisonment, a fine of up to $5,000,000.00 and at least four years of supervised release following any term of imprisonment. If convicted of the firearms offense, MARK faces an additional five years’ imprisonment to run consecutive to any other sentence imposed against him.
This prosecution is part of an extensive investigation by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and firearms in the Bogalusa area.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney André Jones.
Two Men Indicted for Fentanyl DistributionRead the Press Release
BOSTON – Two New York men were indicted yesterday by a federal grand jury in Boston with fentanyl distribution charges.
Yamel Cuevas Gonzalez, 33, and Carlos Nunez, 47, were indicted on one count each of conspiracy to distribute and possession with intent to distribute fentanyl and multiple counts of distribution and possession of fentanyl. Gonzalez and Nunez were charged by criminal complaint and arrested on Aug. 5, 2019. Gonzalez is currently in custody and Nunez was released on conditions.
According to the charging documents, Gonzalez and Nunez conspired to distribute more than 400 grams of fentanyl between May and August of 2019. It is also alleged that Gonzalez distributed more than 400 grams of fentanyl on three separate occasions in May, June and August of 2019. Nunez is also charged with distributing more than 400 grams of fentanyl on two occasions in July and August of 2019. The government is also seeking forfeiture of $97,000 as well as a 2010 Honda Accord.
Both men face mandatory minimum sentences of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason J. Molina, Acting Special Agent in Charge of Homeland Security Investigations, made the announcement today. Valuable assistance was provided by the Dedham Police Department. Assistant U.S. Attorney Nadine Pellegrini of Lelling’s Narcotics and Money Laundering 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.
Two Men Are Sentenced to Prison for Bank Fraud ConspiracyRead the Press Release
CHARLOTTE, N.C. – Brady Raymond Frick, Jr., 39, and Timothy Ray Canon, Jr., 27, both of Charlotte, were sentenced to prison today by U.S. District Judge Robert J. Conrad, Jr. for executing a bank fraud scheme involving stolen mail, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Frick was sentenced to 61 months in prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Canon was sentenced to a year and a day in prison for conspiracy to commit bank fraud. Both Frick and Canon were also ordered to serve terms of supervised release and to pay $81,322.14 in restitution.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service, joins the U.S. Attorney’s Office in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from April 2017 to November 2017, Frick and Cannon carried out a bank fraud scheme using stolen mail to defraud financial institutions. Court records show that the co-conspirators obtained the stolen mail by targeting high-end neighborhoods in the Charlotte area. In order to avoid detection, Frick rented luxury vehicles to drive around the targeted neighborhoods, while Canon collected the mail. As part of the criminal scheme, Frick and Canon stole mail that contained the victims’ bank checks, credit card convenience checks, credit cards, and other bank account information, and used the information to steal money from the victims and to make unauthorized transactions at the expense of federally-insured financial institutions.
In addition to Frick’s 61-month sentence, Judge Conrad also imposed an additional two years in prison for Frick’s supervised release violation related to a 2009 conviction for theft of mail and possession of a firearm by a felon.
In making today’s announcement, U.S. Attorney Murray thanked the USPIS for leading the investigation, and commended the Charlotte Mecklenburg Police Department for their invaluable assistance. This case is the result of the Charlotte Financial Crimes Task Force (CFCTF), which was formed in 2016 by the U.S. Postal Inspection Service and comprises over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the task force is to focus on the identification and development of financial fraud investigations in the Charlotte area. Based on crime trends in the area, the task force began to focus its efforts on violent offenders with lengthy criminal histories who are committing fraud. Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Two Medical Doctors Charged with Acquiring Controlled Substances by Fraud and Identity TheftRead the Press Release
PENSACOLA, FLORIDA – Robert Patrick Jensen, 49, and Michael T. Harris, 44, both of Gulf Breeze,
Florida, appeared in federal court this week for their initial appearances after they were indicted
by a federal grand jury in Pensacola on charges of acquiring controlled substances by fraud and
identity theft. The indictments against the two doctors were announced by Lawrence Keefe, United
States Attorney for the Northern District of Florida.“These indictments show how pervasive our nation’s drug abuse problem is and how it can ravage any
part of our society,” Keefe said. “The U.S. Attorney’s Office will continue to vigorously pursue
drug crimes, wherever they occur.”The indictment charging Jensen alleges that between December 3, 2014, and July 7, 2016, he
knowingly acquired and obtained controlled substances – namely tramadol and dextroamphetamine – by
misrepresentation, fraud, forgery, deception, and subterfuge. The indictment also alleges that
between those same dates, Jensen knowingly and unlawfully used another person’s identification to
acquire the controlled substances by fraud.The indictment charging Harris alleges that between November 4, 2015, and August 11, 2016, he
knowingly acquired and obtained controlled substances – methadone, morphine sulfate, oxycodone, and
alprazolam – by misrepresentation, fraud, forgery, deception, and subterfuge.
The indictment also alleges that between those same dates, Harris knowingly and unlawfully used
another person’s identification to acquire the controlled substances by fraud.Jensen and Harris each face the following potential penalties:
• Acquiring controlled substances by fraud: a maximum of 4 years in prison;
• Identity theft: a maximum of 20 years in prison.This case resulted from an investigation by the Drug Enforcement Administration, the Santa Rosa
County Sheriff’s Office, and the Gulf Breeze Police Department. Assistant United States Attorney J.
Ryan Love is prosecuting the case.An indictment is merely an allegation by a grand jury that a defendant has committed a violation of
federal criminal law and is not evidence of guilt. All defendants are presumed innocent and
entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a
reasonable doubt at trial.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Two Individuals Charged with Illegally Purchasing A Firearm Used in Three ShootingsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint against SEQUANA CIGOLO, 38, and JASON LYNNDROTTI WINSTON, 48, for their roles in illegally supplying a firearm that was used in multiple shootings in Minneapolis, Minnesota and Chicago, Illinois. CIGOLO and WINSTON were arrested on September 25, 2019. They will make their initial appearances today at 2:00 pm before Magistrate Judge Becky R. Thorson in U.S. District Court in Minneapolis, Minnesota.
According to allegations in the criminal complaint and law enforcement affidavit, on September 18, 2019, in Chicago, Illinois, while walking to lunch, “Individual A,” was shot in the back with a 9mm semi-automatic pistol by “Individual B,” leaving her paralyzed. Chicago Police Department (CPD) Officers responded, collected evidence, and subsequently identified Individual B as the suspect. On September 21, 2019, CPD Officers located Individual B and attempted to take him into custody. Individual B shot a CPD Officer three times using a 9mm semi-automatic pistol before fleeing. Hours later, CPD Officers again located Individual B and while attempting to take him into custody, Individual B fired several shots. CPD Officers exchanged gunfire with Individual B, wounding him and subsequently taking him into custody.
According to allegations in the criminal complaint and law enforcement affidavit, an urgent firearms trace by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) indicated that the 9mm semi-automatic pistol that was recovered during Individual B’s arrest, was purchased by CIGOLO on July 11, 2019, from Bill’s Gun Shop in Robbinsdale, Minnesota. Law enforcement agents learned that CIGOLO’s brother was the victim of a shooting on July 28, 2019. A forensic comparison of the ballistic evidence from all three crime scenes (two in Chicago and one in Minneapolis) revealed that the firearm used in the Minneapolis shooting was the same 9mm semi-automatic pistol used in the Chicago shootings, and was the same firearm CIGOLO purchased on July 11, 2019.
According to allegations in the criminal complaint and law enforcement affidavit, on September 24, 2019, during an interview with law enforcement, CIGOLO admitted to purchasing a firearm for her ex-boyfriend’s cousin, WINSTON, who had asked her to do so because he was a convicted felon and therefore could not legally purchase a firearm himself. CIGOLO admitted to lying on the ATF Form 4473, stating that she was purchasing the firearm for herself, when in fact she was not. After purchasing the 9mm semi-automatic pistol, CIGOLO gave the firearm to WINSTON, who paid her approximately $250.00. That same day, law enforcement interviewed WINSTON at his residence, where they found a pistol box and the original pistol safety lock for a 9mm semi-automatic pistol, and a magazine loaded with 9mm rounds of ammunition. WINSTON admitted to transferring the 9mm semi-automatic pistol to the individual who was charged in Hennepin County with the July 28, 2019, shooting of CIGOLO’s brother.
“The Chicago Police Department works tirelessly on a daily basis to stem the flow of illegal firearms into the city. Prohibited persons and those who supply firearms to those individuals will be held accountable and brought to justice,” said Superintendent Eddie Johnson of the Chicago Police Department. “I would like to extend my gratitude to the special agents of the ATF Chicago and St. Paul Field Divisions and the officers of the Minneapolis Police Department who worked hand in hand with our officers over the course of this investigation.”
This case is the result of an investigation conducted by the ATF Chicago Field Division, the Chicago Police Department, the ATF St. Paul Field Division, and the Minneapolis Police Department.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is being prosecuted by Assistant U.S. Attorney Nathan H. Nelson.
Defendant Information:
SEQUANA CIGOLO, 38
Minneapolis, Minn.
Charges:
- Making a false statement to acquire firearms (straw purchase of a firearm), 1 count
JASON LYNNDROTTI WINSTON, 48
Minneapolis, Minn.
Charges:
- Making a false statement to acquire firearms (straw purchase of a firearm), 1 count
- Aiding and abetting felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three-Time Felon Sentenced to Federal Prison for Possessing Loaded Firearm with Obliterated Serial NumberRead the Press Release
A convicted felon who was stopped with a loaded firearm while under the influence of drugs in Waterloo was sentenced today to more than six years in federal prison.
Jesus David Jimenez, age 33, from Waterloo, Iowa, received the prison term after a May 2, 2019 guilty plea to being a felon and drug user in possession of a firearm.
At the guilty plea, Jimenez admitted he possessed a pistol in Waterloo, Iowa, in September 2018. Court documents reflect that Waterloo officers saw Jimenez walking on a public street, apparently intoxicated. Jimenez had in his possession a loaded .45 caliber pistol with an obliterated serial number. Jimenez admitted that he assumed the gun had been stolen because its serial number had been removed. Jimenez’s backpack contained methamphetamine, cocaine, two syringes, marijuana, and two digital scales.
Before moving to Waterloo in 2017, Jimenez was convicted of two felonies in California involving firearms. He was convicted of committing a robbery involving a carjacking with a gun. Jimenez was later convicted of assault with a gun in relation to a drive-by shooting. He was as also convicted of another felony for evading a peace officer.
Jimenez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Jimenez was sentenced to 78 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Jimenez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-02016-LTS-MAR.
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Three Washington Parish Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – TREVION HARRIS, a/k/a “TRIGGA,” age 22, JONZARRION HARRIS, a/k/a “GEE,” age 19, and DEMARQUIEZ HARRIS, age 24, all residents of Bogalusa, Louisiana, were charged September 6, 2019, in a twelve-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiring to distribute and possess with intent to distribute methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to the indictment, beginning at a time unknown, but prior to November 30, 2018, and continuing until the present, TREVION HARRIS, JONZARRION HARRIS, and DEMARQUIEZ HARRIS conspired with each other to distribute and possess with intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine. All three individuals are also charged with distribution of a mixture or substance containing a detectable amount of methamphetamine.
If convicted, all three individuals face a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00 and at least five years of supervised release following any term of imprisonment.
This prosecution is part of an extensive investigation by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and firearms in the Bogalusa area.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney André Jones.
Three Facing Federal Charges After Carthage Bank RobberyRead the Press Release
NASHVILLE, Tenn. – September 26, 2019 – Three mid-state individuals are facing federal bank robbery charges following the Tuesday afternoon robbery of the Citizen’s Bank of Carthage, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
David Reynolds, 28, Joe Betty, 22, and Tiffany Garcia, 27, all of Gallatin, Tennessee, were charged yesterday in a criminal complaint following their arrests Tuesday afternoon on Interstate 40, near Lebanon, Tennessee.
According to the complaint, on Tuesday afternoon, three individuals entered the Citizen’s Bank on Dixon Springs Highway in Carthage, Tennessee and one of the individuals handed a teller a note demanding $15,000. The robber motioned to his waist indicating a gun. When the teller told the robber that there was not enough cash in the drawer to fulfill the demand, the robber asked where additional cash was. The teller then motioned toward the vault behind the teller counter. The robber then went behind the counter, pushed the teller out of the way and began taking cash from the vault and instructed the other two suspects to help him.
The suspects then fled the bank in a red Chevrolet Impala and a bank teller notified police. Officers from the Smith County Sheriff’s Department and the Carthage Police Department observed the suspects fleeing the bank and attempted to stop them but the suspects continued to flee. Multiple law enforcement agencies became involved as the suspects fled. The vehicle was subsequently stopped on Interstate 40, near Lebanon and four individuals were apprehended including Reynolds, Betty and Garcia, along with $65,000 cash. The other individual was a juvenile and was taken into custody by the Smith County Sheriff’s Department.
After reviewing the bank surveillance video, FBI agents determined that approximately five minutes before the robbery, Tiffany Garcia entered the bank and spoke to a teller. The complaint alleges that Garcia was “casing” the premises immediately before the robbery.
If convicted, the defendants face up to 20 years in prison.
This case is being investigated by the FBI. Other agencies involved in the pursuit and apprehension include the Tennessee Highway Patrol; the Wilson County Sheriff’s Department; and the Lebanon Police Department. Assistant U.S. Attorney Rob McGuire is prosecuting the case.
The charge is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Three Bozeman area men sentenced in drug overdose investigationRead the Press Release
MISSOULA—An investigation into Bozeman area pill overdoses in 2017 resulted in the sentencing today of three men convicted of drug trafficking and other charges, U.S. Attorney Kurt Alme said.
Dylan Joseph Jardin, 21, of Bozeman, was sentenced to seven years in prison and three years of supervised release. He was ordered to pay $10,925 restitution and to forfeit $4,012. Jardin pleaded guilty in June to conspiracy to distribute and possession with intent to distribute cocaine, methamphetamine, oxycodone and carfentanil.
Rady Charles Waters, 22, was sentenced to one year and one day in prison and three years of supervised release. Waters pleaded guilty in June to possession with intent to distribute cocaine.
Artemus Lavelle Brock, also known as “Al Beezy”, 30, was sentenced to three years of probation. Brock pleaded guilty in June to possession of cocaine, a misdemeanor.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said in court documents that investigators uncovered a drug distribution ring that led to Jardin and the co-defendants after law enforcement in Gallatin County responded to a series of drug overdoses in September 2017.
Five persons who overdosed were revived after being given Narcan, which is an emergency treatment to restore breathing in cases of opiate and narcotic analgesic overdoses.
In interviews with law enforcement, Jardin admitted to distributing oxycodone pills and that he was aware of some of the overdoses. Jardin moved to Montana in 2015 and began selling cocaine, Xanax, meth, marijuana, oxycodone and other drugs. He obtained some of the pills through the dark web and had other sources who typically mailed drugs to him at various addresses in Bozeman. Jardin said he bought meth from sources in Las Vegas and sold drugs, including cocaine, to co-defendants Brent McCarthy, Waters and Brock.
Waters, prosecutors said, told law enforcement that he bought and received drugs from Jardin and acknowledged he had been selling cocaine.
McCarthy was convicted in the case and is pending sentencing.
Assistant U.S. Attorneys Jessica Betley and Tom Bartleson prosecuted the case, which was investigated by the Drug Enforcement Administration and the Missouri River Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Thirty-One Defendants Charged in Takedown of Two Separate Burlington County Drug Trafficking OrganizationsRead the Press Release
Twenty-eight Arrests Made in Coordinated Takedown by Federal and State Law Enforcement
TRENTON, N.J. – Federal criminal charges have been filed against 31 individuals for their roles as members, associates, and suppliers of multiple drug-trafficking conspiracies that distributed cocaine, crack cocaine, and heroin in the Burlington County, New Jersey, area, U.S. Attorney Craig Carpenito announced today.
Twenty-eight defendants were arrested today, one was already in state custody, and two remain at large. Those arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court. (See chart below.)
The first complaint charges 20 defendants in two overlapping drug conspiracies involving the distribution of cocaine and crack cocaine in the Burlington County area. This organization is allegedly operated by Herbert Mays of Willingboro, New Jersey.
The second complaint charges 12 defendants with three interrelated drug conspiracies involving the distribution of cocaine, crack cocaine, and heroin. Talib Conway of Philadelphia is described in the complaint as a leading member of this organization. One defendant, Teron Huggins, is charged in both complaints.
“The defendants charged in this case were responsible for moving large quantities of dangerous drugs through the streets of Burlington County and elsewhere,” U.S. Attorney Carpenito said. “Taking this number of people off the street required a massive and coordinated effort by our office and other federal and state law enforcement organizations. These arrests should go a long way toward making our streets safer.”
“The success of today’s operation is largely attributed to the close working relationship between federal, state, and local law enforcement,” FBI Special Agent-in-Charge Gregory W. Ehrie, Newark, said. “This collaborative effort to address violent, drug traffickers within our local communities is just one example of how highly the FBI values its partners. To them, I would like to say ‘thank you’ for trusting us, lending their support, and playing a critical role making our community safer. To the criminal element that escaped arrest this time around – know that we aren't finished.”
“Today's arrests are a testament to ATF's commitment to stand with our local, state, and federal partners to expend every resource available to make our communities safer,” ATF Special Agent in Charge Charlie J. Patterson said. “Arresting criminals that contribute to the violence in our communities will continue to be ATF's top priority.”
According to the documents filed in this case and statements made in court:
Between July 2019 and September 2019, the defendants and others engaged in multiple and overlapping narcotics conspiracies that operated primarily throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, Edgewater Park, Pemberton and Mount Laurel – and which sought to profit from the distribution of cocaine, crack cocaine, and heroin. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, and other investigative techniques, law enforcement learned that defendants obtained regular supplies of cocaine from conspirators in the Philadelphia area, then redistributed that cocaine, portions of which defendants converted into crack cocaine, to distributors, sub-dealers, and end-users throughout Burlington County and elsewhere. During the wiretap portion of the investigation, law enforcement intercepted numerous communications among the conspirators discussing cocaine, crack cocaine, and heroin quality and availability, pricing, packaging, quantity, and customer satisfaction.
The counts of conspiracy to distribute at least five kilos of cocaine carry a maximum penalty of life in prison and a fine of $1 million. The counts of conspiracy to distribute 280 grams or more of crack cocaine carry a maximum potential penalty of life in prison, and a maximum fine of $10 million. The counts of conspiracy to distribute 100 grams or more of heroin carry a maximum penalty of 40 years in prison and a fine of $5 million. The counts of conspiracy to distribute 28 grams or more of crack cocaine carry a maximum potential penalty of 40 years in prison and a fine of $5 million.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson; detectives of the Burlington County Prosecutor’s Office, under the direction of Burlington County Prosecutor Scott Coffina; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Director of Public Safety Kinamo Lomon; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesche; officers of the Edgewater Park Police Department, under the direction of Chief of Police Robert Hess; officers of the Mount Laurel Police Department, under the direction of Chief of Police Stephen Reidener; officers of the Ewing Police Department, under the direction of Chief of Police John Stemler; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; officers of the Trenton Police Department, under the direction of Director Sheilah Coley, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Martha K. Nye and Ray Mateo of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
*denotes at large
NAME
AGE
RESIDENCE
CHARGE
Herbert Mays
62
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Andre Morton
37
Lower Makefield Township, PA
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Ronnie Dawson
34
Edgewater Park, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Teron Huggins
42
Mount Laurel, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Rufus Williams
44
Eastampton, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Gurnsey Flagg
61
Burlington, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Roniffe Gaines
36
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
John Petrovich
55
Burlington, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Linford Johnson
42
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Nathaniel McCoy
52
Darby, PA
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Anthony Pruitt
46
Edgewater Park, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Shameke Fowler
30
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Julius Thigpen
57
Philadelphia, PA
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Andre Perkins
(already in state custody)
37
Edgewater Park, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Brandon Watts
32
Burlington City, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
*Craig Moore
46
Wilmington, NC
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Tracy Williams
57
Mount Holly, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Samatha Bohlert
48
Mount Holly, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Mecca Grant
33
Burlington, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
April Branson
26
Willingboro, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Talib Conway
39
Philadelphia, PA
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Teron Huggins
42
Mount Laurel, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Jerrod Epps
35
Medford, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Michael Linares
35
Mansfield, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Allan Simeon
39
Browns Mills, NJ
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Joaquin Simeron
36
Westampton, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Jamarl Simeron
39
Delanco, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Jawan Paxton
23
Burlington City, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Andre Williams
20
Browns Mills, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
*Rasheed Pollard
33
Pemberton, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Cemal Wood
31
Pemberton, NJ
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Donte Snow
31
Pemberton, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Third Parent Sentenced to Prison in College Admissions CaseRead the Press Release
BOSTON – A California man became the third parent to be sentenced to prison today in connection with his involvement in the college admissions case.
Stephen Semprevivo, 53, of Los Angeles, Calif., was sentenced by U.S. District Court Judge Indira Talwani to four months in prison, two years of supervised release, 500 hours of community service, and ordered to pay a fine of $100,000. The Court may offset the fine with restitution to be determined at a later hearing. In May 2018, Semprevivo pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. The government recommended a sentence of 13 months in prison, one year of supervised release, a fine of $95,000, and restitution of $105,341.
Semprevivo conspired with William “Rick” Singer and others to have his son admitted to Georgetown University as a tennis recruit, even though his son did not play competitive tennis. As part of the scheme, Semprevivo involved his son as an active participant in the scheme by having him send emails to defendant Gordon Ernst, the Georgetown tennis coach, expressing interest in playing tennis at Georgetown. By April 2016, Semprevivo’s son had been formally admitted to Georgetown and Semprevivo made a purported contribution of $400,000 to Singer’s sham charity, Key Worldwide Foundation. From that account, Singer paid Ernst hundreds of thousands of dollars for facilitating the fraudulent recruitment of Semprevivo’s son to Georgetown as a tennis recruit.
On Tuesday, Sept. 24, 2019, co-defendant Devin Sloane was sentenced to four months in prison, and earlier this month co-defendant Felicity Huffman was sentenced to two weeks in prison.
Ernst is charged by indictment with racketeering conspiracy, and is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Tampa Man Sentenced to Nearly Four Years and Ordered to Pay over $1.2 Million to Victims of Dialing-For-Dollars Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Richard Buffington (49, Clearwater) to 46 months in federal prison for committing wire fraud. The court also ordered Buffington to forfeit more than $1.2 million, which is traceable to the proceeds of the offense, and to pay more than $1.2 million in restitution to the victims of his fraud scheme.
Buffington had pleaded guilty on April 30, 2019.
According to court documents, from at least January 2013 through August 29, 2018, Buffington defrauded approximately 28 investors, from Florida and across the United States, out of more than $1.2 million by selling unregistered, non-exempt securities in the form of preferred shares. He made false and fraudulent representations to victim-investors about the need for funding for Green Street Equities (“GSE”). Buffington, GSE’s listed Chairman and President, pitched GSE as a company focused on investing in “green companies” (i.e., environmentally friendly projects). Buffington’s misrepresentations to investors included that: (1) GSE would go public soon after the investors’ stock purchase, and (2) that GSE would use investor money to acquire ownership interests in various companies in the “green energy” sector. Based on Buffington’s misrepresentations, victim-investors sent funds believing that that Buffington would use such money to fund GSE and its investments or acquisitions. Investors accepted Buffington’s misrepresentations about GSE because prior to 2013, he had successfully raised funds for a company that had gone public and from which investors had profited.
Buffington also made fraudulent representations to “green sector” companies, which he included on GSE’s website and in its Private Placement Memoranda. Some of those companies appear to have been paper companies; others were legitimate companies towards which Buffington had promised any GSE-raised investor funding would be directed to fund their respective “green sector” projects.
In the end, although Buffington marketed GSE as a company making meaningful investments or acquisitions in “green companies,” neither GSE nor Buffington ever made any such investments or acquisitions. Instead, Buffington used any monies that he raised, including money wired by an undercover agent, for his personal benefit, which included drinking, gambling, and drug use.
This case was investigated by the Federal Bureau of Investigation and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
St. Louis City Man Pleads Guilty to Three Armed RobberiesRead the Press Release
St. Louis, MO –Lonzo Patrick, 54, of St. Louis City, MO, pleaded guilty to three counts of robbery and two counts of brandishing a firearm in furtherance of a crime of violence in connection with three separate armed store robberies committed in October 2017. Patrick appeared today before U.S. District Judge Henry Ronnie L. White, who accepted his plea and set a sentencing date of January 8, 2020.
According to the plea agreement, on October 21, 2017, at approximately 7:30 p.m., Patrick entered the O’Reilly Auto Parts located at 1140 North Kingshighway in St. Louis City. After inquiring about purchasing items, Patrick pointed a firearm at the clerk and instructed the clerk to open the cash register. Patrick took money from the register drawer.
On October 25, 2017, at approximately 6:10 p.m., Patrick entered the Phillips 66 store located at 4251 Lindell Boulevard in St. Louis City. He approached the cashier in order to purchase an item but, instead, reached over the counter to remove money from the cash register drawer. When the cashier attempted to close the register drawer, Patrick pulled a firearm and pointed it at the cashier. Patrick then took money from the register drawer.
On October 30, 2017, at approximately 3:30 p.m., Patrick entered the Walgreens store located at 2933 South Kingshighway in St. Louis City. He approached the counter to buy a sucker. During the transaction, Patrick pulled a firearm and pointed it at the clerk. The clerk ran from behind the counter, and Patrick took the money from the cash register.
Each robbery charge carries a penalty of not more than 20 years and/or a fine of $250,000. Each firearm charge carries a penalty of not less than seven years nor more than life and/or fine of $250,000 consecutive to any other sentence imposed. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bird is handling the case.
Southern District of Florida Charges 30 Individuals Responsible for $86 Million in Fraudulent Billing as Part of Healthcare Fraud TakedownRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Atlanta Regional Office, announced that a total of 30 defendants were charged with offenses relating to their alleged participation in various schemes to defraud Medicare, Medicaid and private insurance. The conduct allegedly resulted in more than $86 million in fraudulent billings. Those charged included physicians as well as other medical and business professionals.
The charges announced involve schemes alleged to have billed Medicare, Medicaid and private insurance companies for medically unnecessary services, such as home health, prescriptions drugs, durable medical equipment and addiction treatment services.
“Health care programs provide vital services to Americans,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “Those who perpetuate these pervasive health care fraud schemes steal taxpayer dollars from intended beneficiaries and threaten the viability of government programs. We commend the coordinated and continued efforts of our federal law enforcement partners to root out fraud and abuse in our healthcare system.”
“The defendants charged today allegedly bilked the American people to the tune of millions in fraudulent billings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “All Americans should stand with the Department as we fight the fight against these unscrupulous schemes in Florida, Georgia, and across the country.”
“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 of the HHS-OIG Atlanta Regional Office. “Today’s arrests puts 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.”
“The FBI and its federal, state and local partners are working tirelessly every day to detect and combat schemes like those announced today,” said Special Agent in Charge George L. Piro of the FBI’s Miami Field Office. “Despite our efforts, we still need the public's help in reporting suspicious activity. If anyone suspects they are a victim of health care fraud please call your local FBI office or the HHS Office of Inspector General.”
The following are some of the health care fraud cases have been charged recently in the Southern District of Florida:
Substance Abuse Treatment:
U.S. v. Peter Port, Brian Dublynn, & Jennifer Sanford, Case No. 19-20583-CR-Williams
Peter Port, 64, of Boca Raton, Brian Dublynn, 62, of Fort Lauderdale, and Jennifer Sanford, 57, of Hollywood, were charged for their alleged participation in a scheme to defraud private health insurance companies. Port, Dublynn and Sanford were each charged with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. In addition, Port and Dublynn were each charged with one count of conspiracy to commit money laundering and five counts of money laundering. The defendants caused Safe Haven Recovery Inc. (Safe Haven), a substance abuse treatment facility in Miami, and several clinical laboratories to submit false and fraudulent claims to health insurance plans for addiction treatment services that were not provided as billed and laboratory tests that were not medically necessary. DOJ Trial Attorney David A. Snider is prosecuting this case.
Home Health:
U.S. v. Dr. Richard S. Mallia, Case No. 19-20623-CR-Altonaga
Richard S. Mallia, D.P.M., 55, a podiatrist, was charged by indictment with one count of conspiracy to defraud the United States and to receive kickbacks, one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud, for his role in a health care fraud conspiracy that caused a loss of approximately $7.7 million to the Medicare program. The indictment alleges that Mallia accepted cash kickbacks in exchange for writing medically unnecessary home health prescriptions and also participated in a scheme to submit claims to Medicare for relatively expensive foot procedures that he never performed. DOJ Trial Attorney Alexander Thor Pogozelski is prosecuting this case.
U.S. v. Maribel Sera, Case No. 19-20625-CR-Williams
Maribel Sera, 51, of Hialeah, was charged by information with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the information, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Juan Jose Mesa, et al., Case No. 19-20574-CR-Gayles
Juan Jose Mesa, 58, and Madelaine Varona, 47, both of Miami, owners and/or operators of All Excellent OT-PT Service LLC of Miami and Cruz Healthcare Corp. of Miami, respectively; Sandra Cardona, 47, of Hialeah, an allegedly unlicensed therapist; and Silvia Salvatori, 67, of Pembroke Pines, Florida, a licensed massage therapist, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud. Mesa and Varona were also charged with five and six counts of health care fraud, respectively. The charges stem from Mesa’s and Varona’s alleged roles in a scheme to defraud Part A of the Medicare program of more than $4 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters in exchange for patient referrals. Cardona and Salvatori, who were allegedly not licensed to provide physical therapy, accepted payment from a licensed physical therapist, paid by their co-conspirators, in exchange for allegedly obtaining signed patient visitation forms from Medicare beneficiaries used to submit false and fraudulent claims. Assistant U.S. Attorney Kevin Larsen is prosecuting this case.
U.S. v. Sara Tania Ruiz and Maria Laura Prieto, Case No. 19-20588-CR-Moore
Sara Tania Ruiz, 55, of Hialeah, and Maria Laura Prieto, 60, of Miami, were charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Marisol Padilla, Case No. 19-20589-CR-Martinez
Marisol Padilla, 48, of Hialeah, was charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Ana Maria Fernandez and Berta Leon, Case No. 19-20573-CR-Ungaro
Ana Maria Fernandez, 62, and Berta Leon, 69, of Miami, Florida, were charged with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to use their company ABC Medical Solutions Corp. of Miami, to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah, Florida. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Jocelyn De La Caridad Perez and Joaquin Guevara, Case No. 19-20582-CR-Altonaga
Jocelyn De La Caridad Perez, 41, and Joaquin Guevara, 46, both of Miami, were charged by indictment with one count of conspiracy to receive health care kickbacks. Perez was also charged with one count of conspiracy to commit health care fraud and wire fraud, and Guevara was also charged with three counts of receipt of kickbacks in connection with a federal health care program. According to the indictment, Perez was an administrator of Joe Rehabilitation and Diagnostic, Inc. (Joe Rehab), an outpatient rehabilitation facility in Doral, Florida, that purportedly provided therapy services to Medicare beneficiaries. As part of the fraudulent scheme, Perez allegedly conspired with others to pay kickbacks and bribes for the referral of Medicare beneficiaries to Joe Rehab so their information could be used to submit fraudulent claims to Medicare for services purportedly provided, regardless of whether the Medicare beneficiaries needed or received the services. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
Private Insurance:
U.S. v. Ivan Bejerano, Case No. 19-20591-CR-King
Ivan Bejerano, 49, of Miami, was charged by indictment with seven counts of health care fraud and one count of conspiracy to commit health care and wire fraud. According to the indictment, Dynamic Physical Rehab Inc. (Dynamic) was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From June 2017 through July 2019, Bejerano allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $2.5 million that falsely and fraudulently represented that various health care benefits, primarily physical therapy, were medically necessary, prescribed by a doctor, and had been provided by Dynamic to insurance beneficiaries of Blue Cross Blue Shield (BCBS). Assistant U.S. Attorney Shannon Shaw is prosecuting this case.
U.S. v. Deivys Ernesto Alvarez, Case No. 19-20604-CR-Bloom
Deivys Ernesto Alvarez, 48, of Hialeah, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. According to the indictment, Alvarez was the owner of Diagnostic Center of Medley Inc., a Miami medical clinic. AP & JL Medical Center Inc. (AP & JL) was another Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. Alvarez and co-conspirators allegedly recruited and paid Comcast Corp. and Telemundo Corp. employees, through Diagnostic Center of Medley Inc., and referred those employees and/or the employees’ personal information to AP & JL to fraudulently bill BCBS. Alvarez and his co-conspirators allegedly submitted and caused the submission of false and fraudulent claims, via interstate wires, totaling approximately $800,500. Assistant U.S. Attorney Timothy J. Abraham is prosecuted this case.
U.S. v. Francisco Abreu Tartabull, Case No. 19-20605-CR-Altonaga
Francisco Abreu Tartabull, 53, of Miami, was charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with his role in a $2.1 million private insurance fraud scheme. According to the indictment, Tartabull was the owner and operator of South Dade Medical Center Inc. (South Dade), a Miami medical clinic that purportedly provided Blue Cross Blue Shield insurance beneficiaries with various medical treatments and services. As part of the fraudulent scheme, Tartabull and his co-conspirators submitted more than $2.1 million in fraudulent claims to Blue Cross Blue Shield. These claims falsely represented that the benefits Tartabull’s clinic had billed insurance for were medically necessary, prescribed by a doctor, and had been provided by South Dade to these beneficiaries. As a result of these false claims, Blue Cross Blue Shield paid Tartabull’s clinic more than $920,000. Tartabull then used this ill-gotten money for his own personal use and benefit, and to further the fraud. The FBI investigated this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
Pharmacy:
U.S. v. Elba Cobos Baile and Yolanda Castano, Case No. 19-20581-CR-Cooke
Elba Cobos Baile, 60, and Yolanda Castano, 55, both of Miami, were charged by indictment with four counts of health care fraud and one count of conspiracy to commit health care fraud and wire fraud. Cobos and Castano were the owners and operators of Pharmacy Solution, a retail pharmacy in Miami-Dade County. The indictment alleges that from on or about March 1, 2012 to September 17, 2014, Cobos and Castano submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by Pharmacy Solution to Medicare beneficiaries. As a result of these false and fraudulent claims, Medicare prescription drug plan sponsors allegedly made payments funded by the Medicare Part D Program to the corporate bank accounts of Pharmacy Solution in the approximate amount of at least $2.1 million. Assistant U.S. Attorney Christopher J. Clark is prosecuting this case.
U.S. v. Tania Rodriguez and Rafael Vidal, Case No. 19-20584-CR-King
Tania Rodriguez, 48, and Rafael Vidal, 61, both of Miami, were charged by indictment with one count of conspiracy to commit healthcare and wire fraud and seven counts of health care fraud. According to the indictment, the defendants participated in a conspiracy to use their company, American United Pharmacy Corp. of Miami, to offer and pay kickbacks for the referral of Medicare beneficiaries to their pharmacy, and to submit false and fraudulent claims to Medicare for prescription drugs that were not provided to Medicare beneficiaries. Assistant U.S. Attorney David Turken is prosecuting this case.
U.S. v. Ricardo Ignacio Perez and Ricardo Perez-Leon, Case No. 19-20594-CR-Williams
Ricardo Ignacio Perez, 54, and Ricardo Perez-Leon, 31, both of Miami, the owners and operators of three Miami pharmacies, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud; one count of conspiracy to defraud the United States and pay and receive health care kickbacks; and three counts of health care fraud. The indictment alleges that the defendants participated in a scheme to pay kickbacks and bribes to patient recruiters and to fraudulently bill Medicare drug plan sponsors for prescription medications. The indictment alleges that, during the course of the fraudulent scheme, the defendants received approximately $5.3 million from Medicare drug plan sponsors for prescription medications that were medically unnecessary, never provided and/or never purchased by the defendants’ pharmacies. DOJ Trial Attorneys Sara Clingan and Tim Loper are prosecuting the case.
Durable Medical Equipment:
U.S. v. Steven Kahn and Pamela Edwin, Case No. 19-80169-CR-Rosenberg
Steven Kahn, 61, of Boca Raton, and Pamela Edwin, 33, of Delray Beach, the owner and office manager, respectively, of a Broward county telemedicine company, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and three counts of wire fraud. Kahn was also charged with five counts of money laundering. The indictment alleges that the defendants paid kickbacks and bribes to physicians in exchange for signing doctors’ orders, and that the defendants then sold the doctors’ orders to Medicare providers who used the orders to submit approximately $39 million in fraudulent claims to Medicare. DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.
U.S. v. Jordan Karlick, Michael Moranz and Jordan Chibnick, Case No. 19-80168-CR-Rosenberg
Jordan Karlick, 33, of Boca Raton, Michael Moranz, 32, of Lake Worth, and Jordan Chibnick, 36, of Plantation, the owners of Palm Beach durable medical equipment (DME) companies, were charged by indictment with one count of conspiracy to commit healthcare fraud and wire fraud, one count of conspiracy to defraud the United States and pay kickbacks, four counts of health care fraud, and three counts of payment of kickbacks. The indictment alleges that the defendants paid kickbacks and bribes in exchange for signed doctors’ orders for DME, which the defendants used to fraudulently bill Medicare for over $23 million. The indictment alleges that defendants sought to impede Medicare beneficiary’s ability to return DME that they did not want or need to defendants’ companies, so that defendants could continue to bill Medicare for that DME. DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.
U.S. Attorney Fajardo Orshan commends the investigative efforts of HHS-OIG and FBI.
A criminal complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent unless and 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.
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.
South Florida Man Pleads Guilty in Connection with Torture and Kidnapping PlotRead the Press Release
Today, a South Florida man pled guilty to charges arising from his participation in kidnapping a victim at gunpoint and, along with his co-conspirators, facilitating his torture.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Justin Boccio, 33, of Deerfield Beach, pled guilty to conspiracy to commit kidnapping, in violation of Title 18, United States Code, 1201(c); and kidnapping, in violation of Title 18, United States Code, Section 1201(a) (Case No. 19-CR-20261). Boccio is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on December 5, 2019 at 9:00 a.m. He faces a maximum statutory sentence of life in prison.
According to court records, Boccio and co-defendant Serge Nkorina (“Nkorina”), along with others, plotted to kidnap and torture a victim in an attempt to obtain tens of thousands of dollars from him. To facilitate the kidnapping, on or about December 30, 2018, Nkorina and Boccio purchased supplies at a Home Depot in Broward County, Florida. On or about January 5, 2019, the two rented a van from Budget with Florida tag number GHPT19. Then, on January 14, 2019, Boccio entered the victim’s office and made false representations on paperwork inside of the victim’s office. Later that same day, January 14, 2019, Nkorina and Boccio intercepted the victim in a Walmart parking lot in Broward County, Florida. Nkorina and Boccio blindfolded the victim and forced the victim into the rental van. The kidnappers then transported their victim to a storage facility in Margate, Florida, in which they burned the victim’s hands with a blowtorch while threatening to kill him with a firearm and other weapons. The kidnappers demanded information about the victim’s home address, including access codes to the victim’s residence. On or about January 15, 2019, Nkorina visited the premises of the victim’s home while carrying a firearm. Ultimately, also on January 15, 2019, Nkorina and Boccio left the victim, with his hands and feet bound, in his vehicle, which they relocated to the parking lot of Cheetah Gentlemen’s Club in Broward County, Florida.
Boccio is detained in South Florida and Nkorina was arrested and detained in Spain. Nkorina has not yet made his appearance in the South Florida case and is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office in this matter. She thanked the Hallandale Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller in the Southern District of Florida.
The case is 19-20261-CR-CMA, pending before United States District Judge Cecilia M. Altonaga. 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.
Smith County Man Sentenced for East Texas Drug TraffickingRead the Press Release
TYLER, Texas - A 36-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Florencio Campos, Jr., pleaded guilty on March 19, 2019, to conspiracy to possess with intent to distribute and distribution of cocaine and was sentenced to 36 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Campos was also ordered to submit to the forfeiture of $27,810.
According to information presented in court, on May 22, 2018, law enforcement agents executed a search warrant at Campos’ residence where they discovered a number of firearms and ammunition and evidence of drug trafficking activities including several pages of ledgers for tracking illegal cocaine transactions and nearly $28,000 in cash. Agents also recovered cellular phones belonging to Campos that contained text messages from Campos and to Campos relating to illegal cocaine transactions. Campos was indicted by a federal grand jury on June 29, 2018.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety, Smith County Sheriff’s Office, and Tyler Police Department and prosecuted by Assistant U.S. Attorney Alan Jackson.
Sharon Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A Sharon woman was sentenced yesterday in federal court in Boston for stealing Social Security benefits intended for her children.
Stacey Orlando, 60, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (one day), two years of supervised release, and ordered to pay $33,795 in restitution to the Social Security Administration. Orlando was arrested and charged in May 2018.
Orlando’s two children, who received monthly Social Security benefits – which were paid to Orlando as their representative payee – were removed from her care by the Massachusetts Department of Children and Families in May 2011. Orlando failed to inform Social Security that her children were no longer in her custody, and instead, falsely told Social Security that her children lived with her and that she spent all of the benefits she received for their care and support. In reality, from May 2011 through October 2013, Orlando stole $33,795 intended for the benefit of her two children.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Seven Men from Waterloo Sentenced to Federal Prison for Trafficking Crack CocaineRead the Press Release
Seven men, all from Waterloo, Iowa, were sentenced over the last fifteen months in federal court in Cedar Rapids based on their involvement in a crack cocaine trafficking conspiracy. Evidence from various hearings showed the investigation, which was a cooperative effort of numerous law enforcement agencies, included use of wiretaps and confidential sources.
Gregory Porter Washington, age 40, was sentenced on June 13, 2018, to 180 months’ imprisonment and supervised release of ten years. The sentence came after he pled guilty to conspiracy to distribute crack cocaine. Washington had previously been convicted of possession of cocaine and marijuana with intent to deliver in state court.
Ronald Corey, age 62, was sentenced on August 13, 2018, to 57 months’ imprisonment and supervised release of five years. The sentence came after he pled guilty to conspiracy to distribute crack cocaine and distribution of crack cocaine.
Melvin Maurice Grubbs, age 37, was sentenced on October 11, 2018, to 179 months’ imprisonment and supervised release of three years. The sentence came after he pled guilty to two counts relating to the use of a phone to facilitate drug trafficking. Grubbs had previously been convicted possession of marijuana with intent to deliver on two occasions in state court.
Michel Earl Snow, age 42, was sentenced on November 20, 2018, to 197 months’ imprisonment and supervised release of eight years. The sentence came after he pled guilty to conspiracy to distribute crack cocaine. Snow had previously been convicted of delivery of cocaine, possession of crack cocaine with intent to deliver, and delivery of cocaine base.
Deon Marcell Goldsmith, age 38, was sentenced on December 17, 2018, to 46 months’ imprisonment and supervised release of one year. The sentence came after he pled guilty to two counts relating to the use of a phone to facilitate drug trafficking.
Keylynn Landon Goldsmith, age 34, was sentenced on January 3, 2019, to 60 months’ imprisonment and supervised release of one year. The sentence came after he pled guilty to two counts relating to the use of a phone to facilitate drug trafficking. Goldsmith had previously been convicted of ongoing criminal conduct in state court.
Corey Demarcus Jones, age 39, was sentenced on September 24, 2019, to 71 months’ imprisonment and supervised release of six years. The sentence came after he pled guilty to possession with intent to distribute crack cocaine. Jones had previously been convicted of possession of cocaine base with intent to deliver and a drug tax stamp violation in state court.
All seven defendants were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2051.
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Seven Defendants Charged in International Narcotics Conspiracy that Trafficked Pound Quantities of Drugs in Tricked-Up ‘Trap Cars’Read the Press Release
LOS ANGELES – Authorities this morning arrested five defendants charged in a federal grand jury indictment alleging they took part in a drug trafficking ring that imported pound quantities of cocaine and heroin from Mexico, then used modified BMW “trap cars” to distribute those drugs throughout the United States.
The four-count indictment charges a total of seven defendants with conspiracy to distribute controlled substances, and alleges a series of acts between December 2017 and July 2018.
In today’s takedown, law enforcement seized approximately 22 kilograms (48.5 pounds) of cocaine, 22 firearms, two luxury vehicles purchased with drug proceeds, 3 Rolex watches and equipment for making butane honey oil, which contains a much higher percentage of tetrahydrocannabinol (THC) than found in traditional marijuana products.
The five defendants arrested today are expected to make their initial court appearance this afternoon in United States District Court in downtown Los Angeles.
Joel Antonio Villegas, a.k.a. “Junior,” 31, of Downey, and William Ariel Moreno, 29, also of Downey, are accused of being the operation’s ringleaders who obtained kilogram quantities of heroin and cocaine from Mexico for U.S. customers. Villegas and Moreno were found in possession of cocaine and guns in their homes at the time of their arrests this morning. Villegas is an alleged drug distributer who obtains drugs from a Mexican supplier and distributes the narcotics from the Los Angeles area to customers throughout the United States, using both trap cars and commercial shipping companies.
According to the indictment, Villegas directed co-conspirators to buy two 2005 BMW X5 automobiles so they could be outfitted with secret compartments to carry narcotics. Villegas allegedly also arranged for the shipment of two crates containing 55 pounds of marijuana and honey oil to Orlando, Florida. He also advised other members of the conspiracy that commercially shipping, rather than mailing, marijuana and honey oil “better ensured that law enforcement would not intercept the packages and seize the drugs,” the indictment alleges.
The two BMWs belonging to the Villegas organization were stopped on the same day in April 2018 at the U.S.-Mexico border, where officers found hidden compartments inside their engine manifolds, containing multiple kilograms of cocaine and heroin, intended for distribution throughout the United States. Last year, law enforcement seized at least $71,000 in cash, along with pound quantities of cocaine and heroin in connection with this organization.
In addition to the conspiracy charge, Villegas and another co-conspirator also are charged with possessing with intent to distribute 13.3 pounds of cocaine. Two other co-defendants have been charged with possessing with intent to distribute 11 pounds of cocaine.
If convicted on all counts, the defendants would face a statutory maximum sentence of life in federal prison and mandatory minimum sentences of at least 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, U.S. Customs and Border Protection, the California Highway Patrol, the Pasadena Police Department, the South Gate Police Department, and the Jacksonville Sheriff’s Office with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
This case is being prosecuted by Assistant United States Attorneys A. Carley Palmer of the International Narcotics, Money Laundering, and Racketeering Section and Jonathan S. Galatzan of the Asset Forfeiture Section.
Second Hoover Criminal Gang Member Indicted for Racketeering After Murder of Portland ManRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, announced today that a second Hoover Criminal Gang member has been indicted for the 2015 murder of Portland resident Kyle Polk.
Ronald Clayton Rhodes, 34, is charged with murder in aid of racketeering, using and carrying a firearm during a crime of violence, and causing the death of Polk through the use of a firearm.
The indictment alleges that on December 16, 2015, Rhodes, along with co-defendant Javier Fernando Hernandez, 23, also of Portland, murdered Polk for the purpose of maintaining and increasing his position in the Hoover Criminal Gang, a criminal enterprise engaged in racketeering in California, Oregon, Washington and elsewhere.
Rhodes made his initial appearance in federal court today and was detained pending a four-week jury trial on November 12, 2019 before U.S. Chief District Court Judge Michael W. Mosman. Hernandez and Rhodes face the same charges and will stand trial together.
Murder in aid of racketeering carries a maximum sentence of death or life in prison.
According to the indictment, the Hoovers are a criminal street gang operating in Oregon, and are known to engage in acts of violence including murder, assault, robbery, sex trafficking and the distribution of narcotics. The Hoovers originated in Los Angeles in the late 1960s and established a presence in Portland in the early 1980s. The gang has a loose hierarchical structure in which members have different amounts of power and influence based on age and gang activity. To maintain status and increase one’s position in the gang, members were expected to carry out violence on behalf of the enterprise.
This case was investigated by the FBI, the Portland Police Bureau, Multnomah County Sheriff’s Office and Homeland Security Investigations and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sacramento Parolee Indicted for Possession of Multiple FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Dezmaighne McClain, 28, of Sacramento, charging him with two counts of being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, McClain, while on felony parole, sold a firearm to an individual on July 15, 2019, after leaving the parole office. McClain sold the same individual another firearm on July 30, 2019, and continued to discuss potential firearms sales after that date. McClain is prohibited from possessing firearms based on his prior felony convictions. During the search of McClain’s residence, agents recovered an AR-15 “ghost” gun with no serial number and two other firearms and ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.
If convicted, McClain faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Revere Man and Boston Man Charged with Cocaine TraffickingRead the Press Release
BOSTON – A Revere man and a Boston man were indicted yesterday in federal court in Boston with drug trafficking charges.
Edgar Castro, of Revere, and Julio Ortiz, of Boston, were indicted on one count each of conspiracy to distribute, and to possess with intent to distribute, five kilograms or more of cocaine, and one count of possession with intent to distribute five kilograms or more of cocaine. Castro and Ortiz were previously charged by complaint and have been detained since their arrest on Aug. 26, 2019.
According to court documents, an individual in Puerto Rico attempted to ship a box containing approximately 29 kilograms of cocaine to an automotive repair garage in Lawrence. After a routine inspection of the box, employees of the shipping company found packages appearing to be narcotics wrapped in plastic. The shipping company called Customs and Border Protection, who searched the package and found 29 kilograms of cocaine. Federal agents conducted a controlled delivery of the package to the address in Lawrence on Aug. 26, 2019. Upon delivery, Castro and Ortiz were observed unpacking the box and moving containers of cocaine into another vehicle. The defendants were subsequently arrested.
The charges of conspiracy to distribute and possession with intent to distribute more than five kilograms of cocaine carry a mandatory minimum sentence of 10 years and up to a lifetime in prison, at least five years of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigations, New England Field Division; and William Ferrara, Director of Field Operations of U.S. Customs and Border Protection, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Woburn Police Department. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering 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.
Raleigh County Woman Indicted on Multiple Counts of Wire Fraud, Bank Fraud, Bankruptcy Fraud and Money LaunderingRead the Press Release
BECKLEY, W.Va. – A federal grand jury returned an indictment yesterday charging a Beckley woman with multiple counts of fraud, announced United States Attorney Mike Stuart. Natalie P. Cochran, 38, owner of Technology Management Solutions (TMS) and Tactical Solutions Group (TSG), was charged in a 26-count indictment with wire fraud, bank fraud, money laundering, aggravated identity theft and bankruptcy fraud.
“A 26-count indictment alleging wire fraud, bank fraud, money laundering, aggravated identity theft and bankruptcy fraud,” said United States Attorney Mike Stuart. “All indictments are serious and this is a serious matter. Ms. Cochran pretended to be a government contractor, intentionally misled investors to raise money for her fraudulent schemes, intentionally stole personal identification information from multiple individuals, falsely marketed herself and her companies as experienced, leading suppliers of government services while never being awarded a single federal contract and having two potential state contracts cancelled, and then engaged in bankruptcy fraud. I want to thank the work of my team and the West Virginia State Police, Secret Service, FDIC and ATF for their tremendous work in this matter.”
“The results of this investigation demonstrate the Secret Service’s commitment to strong partnerships between local, state, and federal law enforcement agencies,” said Thomas Fleming, Resident Agent in Charge of the U.S. Secret Service Charleston Resident Office. “We are committed to protecting our nation’s financial institutions and the citizens of West Virginia. We would like to thank the West Virginia State Police, the ATF, and the FDIC OIG for their cooperation and partnership in this case.”
According to the indictment, Cochran has pretended to be an experienced government contractor since 2017. She advertised TMS and TSG as experienced government contracting businesses. TSG’s website even boasted that it was a leading supplier to the Department of Defense. Investigators learned however, that TSG was never awarded a single federal or state government contract. TMS was awarded two state government contracts, but the State of West Virginia ultimately cancelled these awards because of TMS’ repeated delays in performance.
It is further alleged in the indictment that Cochran received investments from at least 11 individuals in her government contracting businesses, TSG and TMS. Cochran received these investments as a result of her false misrepresentations regarding TSG’s and TMS’ experience and purported success as government contractors. Cochran also received funds from at least one financial institution as a result of her false and misleading statements regarding TSG and TMS. During the course of her fraudulent schemes, Cochran stole identification information from multiple individuals, who were either employed by the federal government or the banking industry. She would then send investors emails that were purportedly from these individuals in order to further her wire fraud and bank fraud schemes.
This past July, Cochran filed for bankruptcy. The indictment further alleges that she made several material misrepresentations within her bankruptcy filing and lied while testifying under oath at her meeting of creditors.
The indictment alleges that Cochran fraudulently obtained over $2.5 million during her scheme and is believed to have spent over $1 million of investor money. Cochran used investor money to fund her lifestyle for over a year and a half, as she was unemployed during that time outside of her work with TSG and TMS. She also used the investor money for extravagant purchases, including jewelry, a 1965 Shelby Cobra, and multiple properties.
If convicted, the defendant faces a maximum penalty of 30 years in prison.
The West Virginia State Police, the United States Secret Service, the Federal Deposit Insurance Corporation (FDIC) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
Please note: An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Qui Tam Lawsuit and Federal Investigation Results in Half a Million Dollar Settlement to Resolve False Claims Act LiabilitiesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph of the Western District of Louisiana announces that Biomedical Research Foundation of Northwest Louisiana and its related companies, and the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College have agreed to pay $531,241.74 in damages and/or civil penalties to resolve claims that they violated the False Claims Act and other laws while operating University Health Hospital in Shreveport.
“Providers who fail to submit accurate data affect beneficiaries who depend on Medicare funding for access to safe and effective healthcare services,” said Joseph. “The United States Attorney’s Office is committed to investigating allegations of fraud concerning Medicare services and we will continue to pursue those whose actions undermine the integrity of the Medicare program and the data it relies upon.”
The Biomedical Research Foundation of Northwest Louisiana and LSU were alleged to have sought and obtained payment from Medicare for procedures that required reporting to a qualified registry. The procedures that they failed to report involved implantable automatic defibrillators, which are electronic devices designed to detect and treat life-threatening tachyarrhythmias.
Medicare coverage for implanting the defibrillators was part of a coverage expansion in 2005, which required that the procedure be studied and analyzed through data submitted to qualified registries. This effort was part of a new Coverage with Evidence Development initiative, which expands access to important new treatments while facilitating the collection of evidence so that the Centers for Medicare and Medicaid Services can continue to monitor the effects of its coverage decisions. The data collected was to be used to ensure the safety and quality of care provided to Medicare patients.
This settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.
The government’s intervention in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The Department of Health and Human Services, Office of Inspector General, This investigated the matter. Assistant U.S. Attorney Melissa Theriot and Affirmative Civil Enforcement investigator Christopher Knighton prosecuted the case.
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Prime Contractor Employee at U.S. Military Bases Sentenced to 28 Months in Prison for $1.4 Million Fraud and Taking KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man employed as a regional manager for a contractor involved with construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix- Lakehurst (Ft. Dix) was sentenced today to 28 months in prison for his role in a fraud scheme that caused losses of $1.4 million, U.S. Attorney Craig Carpenito announced.
James Conway, 48, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud and one count of accepting unlawful kickbacks. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2009 to August 2015, Conway secretly owned a company called Walsh Construction Services, LLC (Walsh Construction), which purported to provide construction services. Using his position as regional manager for a construction contractor, Conway steered subcontracts to Walsh Construction for jobs at PICA and Ft. Dix. To conceal his ownership of Walsh Construction, Conway signed the subcontracts as Keith Walsh, the purported owner or vice president of Walsh Construction. There was, in fact, no person by that name who owned or was the vice president of Walsh Construction.
Conway used Walsh Construction to obtain payments from the construction contractor by submitting invoices and bills on behalf of Walsh Construction for work purportedly performed at PICA and Ft. Dix. Many of the invoices and bills included charges for work that Walsh Construction only partially did, or for work that was not performed at all by Walsh Construction, causing losses of $1.4 million.
Conway also accepted kickbacks totaling $180,345, from four subcontractors who served as subcontractors to the contractor on various construction projects at PICA and Ft. Dix knowing that the subcontractors expected, in return, to obtain favorable treatment from Conway.
In addition to the prison term, Judge Wigenton sentenced Conway to three years of supervised release and ordered him to pay $1.4 million in restitution.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty sentencing.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Pittsburgh Man with Multiple Felony Convictions Indicted on Serious Drug and Firearms CrimeRead the Press Release
PITTSBURGH, PA – A Superseding Indictment was returned against Deon Blair by a federal grand jury in Pittsburgh charging the distribution of heroin, butyryl fentanyl, and fentanyl resulting in serious bodily injury and death, and the commission of related firearms crimes, United States Attorney Scott W. Brady announced today. A federal jury trial has been scheduled to start on October 28, 2019, in Pittsburgh.
The Superseding Indictment charges Blair, age 27, who formerly resided in Pittsburgh, Pennsylvania, with committing the following crimes in February 2017: (1) distributing a mixture containing butyryl fentanyl and fentanyl resulting in serious bodily injury and death; (2) conspiring to distribute and distributing heroin, butyryl fentanyl, and fentanyl; (3) possessing a firearm in furtherance of a drug trafficking crime; and (4) possessing a firearm after 11 prior felony convictions for heroin and cocaine trafficking and firearms crimes in four prior prosecutions.
The law provides for a minimum sentence of 25 years and up to life in prison and a fine of up to $4,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Christy C. Wiegand and Craig W. Haller are prosecuting this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania Board of Probation and Parole, and the Allegheny County Medical Examiner’s Office conducted the investigation leading to the Superseding Indictment in this case.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pierz Business Owner Pleads Guilty to Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald announced the guilty plea of JEFFREY LAWRENCE KLOSS, 38, to one count of tax evasion. KLOSS, who was charged on August 2, 2019, entered his guilty plea on September 24, 2019, before Senior Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, KLOSS owned and operated a tree trimming business in Pierz, Minnesota. From January 2014 through at least December 2017, KLOSS cashed checks from customers payable to his tree trimming business and failed to include those funds as business income on his federal income tax returns. KLOSS failed to report a total of approximately $467,555 in income for calendar years 2014 through 2017. As a result, KLOSS evaded assessment of a total of approximately $152,923 in federal income taxes for calendar years 2014 through 2017.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
Defendant Information:
JEFFREY LAWRENCE KLOSS, 38
Pierz, Minn.
Convicted:
- Tax evasion, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600