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Thursday 26 September 2019
Physicians and pharmacy sales reps indicted for kickback conspiracy in which doctors allegedly received money in exchange for writing unnecessary prescriptions of NuedextaRead the Press Release
Two doctors from Northeast Ohio and two drug company salesmen were indicted in federal court for their roles in a kickback conspiracy in which the doctors allegedly received money and other things of value in exchange for writing prescriptions of Nuedexta for patients that did not have the condition.
Named in the 83-count indictment are: Deepak Raheja, 63, of Hudson; Gregory Hayslette, 43, of Aurora; Frank Mazzucco, 41, of Dublin, and Bhupinder Sawhny, 70, of Gates Mills. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks.
According to the indictment:
Raheja is a medical doctor who specialized in psychiatry and neurology whose primary practice location was 2307 West 14th Street in Cleveland. Sawhny is a medical doctor who specialized in neurosurgery whose primary practice location was 6731 Ridge Road in Parma.
Hayslette worked as a pharmaceutical sales representative for Avanir Pharmaceuticals, Inc. from June 2015 through September 2016. He was responsible for marketing Nuedexta, and his territory included Northern Ohio. Mazzucco was the regional business manager and supervised Hayslette.
Avanir manufactured Nuedexta, a drug approved by the FDA solely to treat pseudobulbar affect (PBA). PBA is a condition characterized by involuntary, sudden and frequent episodes of uncontrollable laughing and crying, according to the indictment.
Avanir promoted Nuedexta through a speaker’s bureau, in which Avanir representatives engaged doctors to speak about and promote Nuedexta to other medical professionals. Typical speaking engagements involved dinner at a high-end restaurant in which the doctor made a presentation with a slide deck provided by Avanir. A company sales representative was responsible for inviting attendees and attending the presentation.
Raheja joined Avanir’s speaker’s bureau in February 2011. He gave approximately 211 speaking presentations at various restaurants and doctor’s offices between October 2011 and April 2016. Raheja received approximately $1,500 for each of these purported presentations.
Raheja received approximately $331,550 from Avanir between October 2011 and April 2016. During this time, Raheja wrote approximately 10,088 Nuedexta prescriptions – the highest in the country, according to the indictment.
As part of the conspiracy, Hayslette and Mazzucco incentivized physicians to write Nuedexta prescriptions and thereby increase compensation to themselves. This included:
Hayslette and Mazzucco arranged speaker’s bureau programs, many with little to no educational value, for Raheja, Sawhny and other medical professionals relating to Nuedexta.
Hayslette and Mazzucco facilitated the payment of honoraria and other expenses to Raheja.
Hayslette facilitated the submission of false and fictitious sign-in sheets from speaking engagements to justify the event and maximize payments and other benefits to Raheja and Sawhny.
Hayslette facilitated the promotion of non-FDA-approved uses and dosages of Nuedexta through the speaker’s bureau program and the distribution of literature to physicians.
Hayslette offered free firearms training, office equipment and other things of value to Sawhny.
Hayslette provided coffee, breakfast, lunch and other food and beverage to Raheja, Sawhny and their office staff, usually with little to no substantive discussion about Nuedexta.
Hayslette accessed protected patient health information without authorization, and facilitated the submission of false diagnoses of PBA on prior authorizations to Medicaid Managed Care Organizations.
It was further part of the conspiracy that Raheja and Sawhny took steps in return for things of value, such as:
Raheja and Sawhny wrote more Nuedexta prescriptions and caused the submission of billings to Medicare and Medicaid for Nuedexta prescriptions for patients that did not have PBA.
Raheja and Sawhny also submitted and caused the submission of materially false and fictitious prior authorizations to Medicaid MCOs that reflected diagnoses of PBA for patients that did not actually have PBA.
Raheja falsely diagnosed patients with PBA, and recorded and caused the recording of false symptoms in patient records to support a diagnosis of PBA.
Sawhny also allegedly permitted unauthorized access to protected patient health information.
“We all trust our doctors to make decisions based on what is best for the patient, not based on which sales representative is paying them money on the side and springing for steak dinners,” U.S. Attorney Justin Herdman said. “Doctors and the pharmaceutical sales reps who don’t follow the rules will be held accountable for their actions.”
“These doctors will now answer to a court of law for financially benefitting from lucrative speaking engagements and writing questionable prescriptions for one medication,” FBI Special Agent in Charge Eric B. Smith said. “The FBI will continue collaborative efforts to root out healthcare fraud and hold those responsible accountable for their fraudulent, unethical behavior."
“Kickbacks are to ethics like a magnet to a compass — you lose your direction,” Ohio Attorney General Dave Yost said. “Imagine trusting your doctor to do what’s right for your health, and finding out he’s instead doing what’s right for his wallet. This is much more than a financial crime.”
If anyone believes they may have been a victim in this case, they are encouraged to call the FBI at 216-622-6963.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The FBI, Health and Human Services – Office of Inspector General and the Ohio Attorney General’s Medicaid Fraud Control Unit investigated this case. Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller are prosecuting the case.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Philadelphia Man Sentenced to over 10 Years’ Imprisonment for Distributing MethamphetamineRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gregory A. Jackson, age 54, of Philadelphia, Pennsylvania, was sentenced on September 23, 2019, to 121 months’ imprisonment to be followed by five years on supervised release, by Chief U.S. District Court Judge Christopher C. Conner, for distributing methamphetamine.
According to United States Attorney David J. Freed, Jackson was convicted in November 2018 after a two-day jury trial. The evidence presented at trial showed that in September 2017, Jackson traveled from Philadelphia to York and delivered over 100 grams of pure methamphetamine to another individual.
The case was investigated by the Federal Bureau of Investigation, the Springettsbury Township Police Department, the Pennsylvania State Police, and the York County Drug Task Force. Assistant United States Attorneys Carlo D. Marchioli and James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Pharmaceutical Company Targeting Elderly Victims Admits to Paying Kickbacks, Resolves Related False Claims Act ViolationsRead the Press Release
ATLANTA - The Department of Justice announced today that Avanir Pharmaceuticals (Avanir), a pharmaceutical manufacturer based in Aliso Viejo, California, has been charged for paying kickbacks to a physician to induce prescriptions of its drug Nuedexta.
“When a drug company pays kickbacks to physicians, it can affect their medical decision making and undermine the proper treatment of their patients,” said U.S. Attorney Byung J. “BJay” Pak. “This is particularly troublesome when it affects our vulnerable elderly population.”
“Kickbacks have the power to corrupt a provider’s medical judgment,” said Assistant Attorney Jody Hunt of the Department of Justice’s Civil Division. “And it is particularly concerning when a pharmaceutical company uses kickbacks to drive up sales in connection with a vulnerable population, such as elderly patients in nursing care facilities.”
“Paying kickbacks to medical providers in an effort to increase profits is illegal and diminishes the trust and credibility of drug companies who engage in these activities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services. My agency’s five-year compliance agreement with Avanir has been tailored to ensure such alleged behavior will not be repeated.”
As alleged in a one-count Information filed today in the U.S. District Court for the Northern District of Georgia, Avanir violated the Anti-Kickback Statute by paying a doctor to induce him to become a high prescriber of Nuedexta to beneficiaries of federal healthcare programs, offering him financial incentives to write additional Nuedexta prescriptions for beneficiaries of federal healthcare programs, and inducing him to recommend that other physicians prescribe Nuedexta to beneficiaries of federal healthcare programs. Nuedexta is approved by the Food and Drug Administration for the treatment of pseudobulbar affect (PBA), which is characterized by involuntary, sudden, and frequent episodes of laughing or crying, and occurs secondary to a neurologic disease or brain injury.
The Northern District of Georgia also announced a deferred prosecution agreement resolving the charge, under which Avanir admits that it paid the doctor to induce him to not only maintain, but increase his prescription volume. Under the agreement’s terms, Avanir will pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. The United States will defer prosecuting Avanir for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court.
The Northern District of Georgia entered into the deferred prosecution agreement with Avanir based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including capturing and producing text messages from employee cell phones, the extensive remedial measures taken by the company, including terminating, or permitting to resign in lieu of termination, multiple employees, at various levels of the organization, including senior executives, and its enhanced compliance program. Other facts and circumstances include: Avanir has agreed to resolve all civil claims relating to federal health care programs arising from its conduct; and a conviction (including a guilty plea) would likely result in the Office of the Inspector General of the Department of Health and Human Services imposing mandatory exclusion of Avanir from all federal health care programs under 42 U.S.C. § 1320a-7 for a period of at least five years, which would result in substantial consequences, including to American consumers. The agreement can ensure that integrity has been restored to Avanir’s operations and preserve its financial viability while preserving the United States’ ability to prosecute it should material breaches occur.
The Northern District of Ohio also announced indictments of four individuals, including former Avanir employees and one of the top prescribers of Nuedexta in the country, who were involved in the kickback scheme. Avanir has also agreed to pay over $95 million to resolve civil False Claims Act allegations of kickbacks as well as its false and misleading marketing of Nuedexta to providers in long term care facilities to induce them to prescribe it for behaviors commonly associated with dementia patients, which is not an approved use of the drug.
Named in the 83-count Northern District of Ohio indictment are: Deepak Raheja, 63, of Hudson; Gregory Hayslette, 43, of Aurora; Frank Mazzucco, 41, of Dublin, and Bhupinder Sawhny, 70, of Gates Mills. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks. Avanir has agreed to cooperate in the prosecution of these individuals.
“Doctors should prescribe medicine based on what is best for their patients, not on which drug company is paying for their travel and meals,” said U.S. Attorney for the Northern District of Ohio Justin Herdman.
In a separate civil resolution, Avanir has agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta. The government alleged that between October 29, 2010, and December 31, 2016, Avanir provided remuneration in the form of money, honoraria, travel, and food to certain physicians and other health care professionals to induce them to write prescriptions for Nuedexta. One form of remuneration included Avanir’s payment to certain health care professionals to give talks (commonly known as “speaker’s programs”) about Nuedexta based on their willingness to prescribe Nuedexta. These events were primarily social, with no educational value.
The government further alleged that Avanir implemented a strategy to market Nuedexta in long-term care (LTC) facilities for uses other than PBA that had not been approved by the FDA and were not medically accepted indications as defined by the statutes and regulations governing the Federal health care programs. In particular, Avanir sought to capitalize on efforts by the Centers for Medicare and Medicaid Services to reduce the use of anti-psychotics on dementia patients in LTC facilities, based in part on CMS’s concern that anti-psychotics can be and have been used as a form of chemical restraint for residents. Avanir did so by instructing its sales force to initiate discussions in LTCs regarding anti-psychotic use and how Nuedexta could be used to reduce a LTC facility’s reliance on anti-psychotics even though Avanir’s own studies demonstrated that the actual population of patients with PBA is limited. In order to counter the objection by certain physicians that they had few, if any, patients that exhibited signs of PBA in their facilities, Avanir instructed sales representatives to provide false and misleading information that PBA patients could be exhibiting a wide variety of “behaviors” such as crying without tears, moaning, or making other inarticulate sounds, when, in fact, those symptoms are commonly observed in patients who have dementia but do not have a diagnosis of PBA. This strategy worked, and Nuedexta utilization in LTC facilities increased.
In one example of the impact of these strategies, the government alleged that an Avanir employee reported that one doctor, who was also a paid speaker for Nuedexta, had “entire units” of patients on Nuedexta at the LTC facility where he worked, which contained a large number of dementia patients with behavioral issues. And while another doctor, a geriatrician, who also worked in the same LTC facility routinely discontinued Nuedexta for patients, the doctor paid by Avanir “constantly re-initiat[ed]” the treatment.
Contemporaneous with the civil settlement, Avanir entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Avanir implement additional controls around its interactions with physicians and conduct internal and external monitoring of promotional and other activities. It also increases individual accountability by requiring compliance-related certifications from its Board and key executives.
The civil settlement resolves lawsuits filed by Kevin Manieri, Duane Arnold, and Mark Shipman, all former employees of Avanir, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suits were filed in the Northern District of Ohio and the Northern District of Georgia and are captioned United States ex rel. Kevin Manieri v. Avanir Pharmaceuticals, Inc. and Deepak Raheja, Action No. 5:15-cv-611 (N.D. Ohio), and United States ex rel. Duane Arnold and Mark Shipman v. Avanir Pharmaceuticals, Inc., Action No. 1:15-cv-01250 (N.D. Ga.). Manieri will receive $12,389,823 of the civil settlement, and Arnold and Shipman will receive $5,365,000 of the civil settlement. In addition to the $95,972,017 being paid to resolve the United States’ civil claims, Avanir will pay an additional $7,027,983 to resolve state Medicaid claims.
The government is represented in the criminal case against Avanir by Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds Section, U.S. Attorney’s Office for the Northern District of Georgia, and against the individuals by Assistant U.S. Attorneys Michael Collyer and Megan Miller, U.S. Attorney’s Office for the Northern District of Ohio. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorneys Patricia Fitzgerald and Brendan Barker of the U.S. Attorney’s Office for the Northern District of Ohio, Assistant U.S. Attorney Neeli Ben-David of the U.S. Attorney’s Office for the Northern District of Georgia, and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by the FBI, HHS-OIG, the Department of Defense Criminal Investigative Services, the Office of Personnel Management Office of Inspector General, the Department of Veteran’s Affair Office of Inspector General, and the Ohio Medicaid Fraud Control Unit. Assistance was also provided by the Consumer Protection Branch of the Department of Justice, HHS Office of Counsel to the Inspector General and the National Association of Medicaid Fraud Control Units.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Except as to conduct admitted as part of the deferred prosecution agreement and its Statement of Facts, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pharmaceutical Company Targeting Elderly Victims Admits to Paying Kickbacks, Resolves Related False Claims Act ViolationsRead the Press Release
Avanir Pharmaceuticals (Avanir), a pharmaceutical manufacturer based in Aliso Viejo, California, was charged for paying kickbacks to a physician to induce prescriptions of its drug Nuedexta, the Department of Justice announced today. The Northern District of Ohio also announced indictments of four individuals, including former Avanir employees and one of the top prescribers of Nuedexta in the country, who were involved in the kickback scheme. Avanir has also agreed to pay over $95 million to resolve civil False Claims Act allegations of kickbacks as well as its false and misleading marketing of Nuedexta to providers in long term care facilities to induce them to prescribe it for behaviors commonly associated with dementia patients, which is not an approved use of the drug.
“Kickbacks have the power to corrupt a provider’s medical judgment,” said Assistant Attorney Jody Hunt of the Department of Justice’s Civil Division. “And it is particularly concerning when a pharmaceutical company uses kickbacks to drive up sales in connection with a vulnerable population, such as elderly patients in nursing care facilities.”
As alleged in a one-count Information filed today in the United States District Court for the Northern District of Georgia, Avanir violated the Anti-Kickback Statute by paying a doctor to induce him to become a high prescriber of Nuedexta to beneficiaries of federal healthcare programs, offering him financial incentives to write additional Nuedexta prescriptions for beneficiaries of federal healthcare programs, and inducing him to recommend that other physicians prescribe Nuedexta to beneficiaries of federal healthcare programs. Nuedexta is approved by the Food and Drug Administration for the treatment of pseudobulbar affect (PBA), which is characterized by involuntary, sudden, and frequent episodes of laughing or crying, and occurs secondary to a neurologic disease or brain injury.
The Northern District of Georgia also announced a deferred prosecution agreement resolving the charge, under which Avanir admits that it paid the doctor to induce him to not only maintain, but increase his prescription volume. Under the agreement’s terms, Avanir will pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. The United States will defer prosecuting Avanir for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court.
“When a drug company pays kickbacks to physicians, it can affect their medical decision making and undermine the proper treatment of their patients,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “This is particularly troublesome when it affects our vulnerable elderly population.”
The Northern District of Georgia entered into the deferred prosecution agreement with Avanir based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including capturing and producing text messages from employee cell phones, the extensive remedial measures taken by the company, including terminating, or permitting to resign in lieu of termination, multiple employees, at various levels of the organization, including senior executives, and its enhanced compliance program. Other facts and circumstances include: Avanir has agreed to resolve all civil claims relating to federal health care programs arising from its conduct; and a conviction (including a guilty plea) would likely result in the Office of the Inspector General of the Department of Health and Human Services imposing mandatory exclusion of Avanir from all federal health care programs under 42 U.S.C. § 1320a-7 for a period of at least five years, which would result in substantial consequences, including to American consumers. The agreement can ensure that integrity has been restored to Avanir’s operations and preserve its financial viability while preserving the United States’ ability to prosecute it should material breaches occur.
The Northern District of Ohio also announced indictments of four individuals who paid or received kickbacks from Avanir. Named in the 83-count indictment are: Deepak Raheja, 63, of Hudson; Gregory Hayslette, 43, of Aurora; Frank Mazzucco, 41, of Dublin, and Bhupinder Sawhny, 70, of Gates Mills. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks. Avanir has agreed to cooperate in the prosecution of these individuals.
“Doctors should prescribe medicine based on what is best for their patients, not on which drug company is paying for their travel and meals,” said U.S. Attorney for the Northern District of Ohio Justin Herdman.
In a separate civil resolution, Avanir has agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta. The government alleged that between October 29, 2010, and December 31, 2016, Avanir provided remuneration in the form of money, honoraria, travel, and food to certain physicians and other health care professionals to induce them to write prescriptions for Nuedexta. One form of remuneration included Avanir’s payment to certain health care professionals to give talks (commonly known as “speaker’s programs”) about Nuedexta based on their willingness to prescribe Nuedexta. These events were primarily social, with no educational value.
The government further alleged that Avanir implemented a strategy to market Nuedexta in long-term care (LTC) facilities for uses other than PBA that had not been approved by the FDA and were not medically accepted indications as defined by the statutes and regulations governing the Federal health care programs. In particular, Avanir sought to capitalize on efforts by the Centers for Medicare and Medicaid Services to reduce the use of anti-psychotics on dementia patients in LTC facilities, based in part on CMS’s concern that anti-psychotics can be and have been used as a form of chemical restraint for residents. Avanir did so by instructing its sales force to initiate discussions in LTCs regarding anti-psychotic use and how Nuedexta could be used to reduce a LTC facility’s reliance on anti-psychotics even though Avanir’s own studies demonstrated that the actual population of patients with PBA is limited. In order to counter the objection by certain physicians that they had few, if any, patients that exhibited signs of PBA in their facilities, Avanir instructed sales representatives to provide false and misleading information that PBA patients could be exhibiting a wide variety of “behaviors” such as crying without tears, moaning, or making other inarticulate sounds, when, in fact, those symptoms are commonly observed in patients who have dementia but do not have a diagnosis of PBA. This strategy worked, and Nuedexta utilization in LTC facilities increased.
In one example of the impact of these strategies, the government alleged that an Avanir employee reported that one doctor, who was also a paid speaker for Nuedexta, had “entire units” of patients on Nuedexta at the LTC facility where he worked, which contained a large number of dementia patients with behavioral issues. And while another doctor, a geriatrician, who also worked in the same LTC facility routinely discontinued Nuedexta for patients, the doctor paid by Avanir “constantly re-initiat[ed]” the treatment.
Contemporaneous with the civil settlement, Avanir entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Avanir implement additional controls around its interactions with physicians and conduct internal and external monitoring of promotional and other activities. It also increases individual accountability by requiring compliance-related certifications from its Board and key executives.
“Paying kickbacks to medical providers in an effort to increase profits is illegal and diminishes the trust and credibility of drug companies who engage in these activities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services. My agency’s five-year compliance agreement with Avanir has been tailored to ensure such alleged behavior will not be repeated.”
The civil settlement resolves lawsuits filed by Kevin Manieri, Duane Arnold, and Mark Shipman, all former employees of Avanir, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suits were filed in the Northern District of Ohio and the Northern District of Georgia and are captioned United States ex rel. Kevin Manieri v. Avanir Pharmaceuticals, Inc. and Deepak Raheja, Action No. 5:15-cv-611 (N.D. Ohio), and United States ex rel. Duane Arnold and Mark Shipman v. Avanir Pharmaceuticals, Inc., Action No. 1:15-cv-01250 (N.D. Ga.). Manieri will receive $12,389,823 of the civil settlement, and Arnold and Shipman will receive $5,365,000 of the civil settlement. In addition to the $95,972,017 being paid to resolve the United States’ civil claims, Avanir will pay an additional $7,027,983 to resolve state Medicaid claims.
The government is represented in the criminal case against Avanir by Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds Section, U.S. Attorney’s Office for the Northern District of Georgia, and against the individuals by Assistant U.S. Attorneys Michael Collyer and Megan Miller, U.S. Attorney’s Office for the Northern District of Ohio. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorneys Patricia Fitzgerald and Brendan Barker of the U.S. Attorney’s Office for the Northern District of Ohio, Assistant U.S. Attorney Neeli Ben-David of the U.S. Attorney’s Office for the Northern District of Georgia, and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by the FBI, HHS-OIG, the Department of Defense Criminal Investigative Services, the Office of Personnel Management Office of Inspector General, the Department of Veteran’s Affair Office of Inspector General, and the Ohio Medicaid Fraud Control Unit. Assistance was also provided by the Consumer Protection Branch of the Department of Justice, HHS Office of Counsel to the Inspector General and the National Association of Medicaid Fraud Control Units.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Except as to conduct admitted as part of the deferred prosecution agreement and its Statement of Facts, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Perris Man Charged with Smuggling Unregistered PesticidesRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – September 26, 2019
SAN DIEGO – Luis Alberto Vargas of Perris was arraigned today on a felony complaint charging him with smuggling pesticides into the United States from Mexico. Vargas made his appearance before U.S. Magistrate Judge F.A. Gossett.
The complaint alleges that Vargas smuggled three containers with 2.25 liters of Mexican pesticides into the United States on September 9, 2019. According to the complaint, Vargas brought in pesticides containing the active ingredients chlorpyrifos and abamectin, chemicals which are considered to be restricted-use pesticides in the United States because they are lethal if ingested, harmful if absorbed through the skin or inhaled, and toxic to bees and other wildlife.
In the United States, federal regulations limit the commercial sale and distribution of restricted-use pesticides to those who have received training and certification approved by the U.S. Environmental Protection Agency in mitigating the dangers of such chemicals.
The complaint alleges that Vargas lacks the certification needed for purchase or commercial use of such pesticides. Only pesticides registered with the EPA may be imported, sold, or distributed in the United States, and all pesticides intended for commercial use in the United States must bear their EPA registration number on their labels. According to the complaint, the containers imported by Vargas were labeled only in Spanish and bore no EPA registration numbers.
“These types of chemicals, which are extremely dangerous to humans if ingested or inhaled, must be kept out of the hands of untrained individuals,” said U.S. Attorney Robert Brewer. “Misapplication of these chemicals could cause untold harm to our citizens and the environment.”
“We allege that the defendant knowingly smuggled unregistered pesticides into the country, violating environmental regulations established to protect human health and the environment,” said Jay Green, Special Agent-in Charge of EPA’s Criminal Investigation Division. “EPA and its partners worked together to apprehend the defendant and prevent this illegal product from threatening public safety.”
“The illegal importation and use of restricted pesticide products puts people's health and the environment at significant risk,” said Juan Munoz, deputy special agent in charge for HSI San Diego. “HSI agents will continue to investigate these individuals that are involved in the illicit distribution of these dangerous products that threaten our communities.”
California Department of Toxic Substances Control Chief Investigator, Hansen Pang said, “It is notable to see State and Federal Law Enforcement work together on a no-tolerance initiative to protect the environment.”
DEFENDANT
Luis Alberto Vargas Age: 28 Perris, California
SUMMARY OF CHARGES
Smuggling, 18 U.S.C. § 545
Maximum penalty: Twenty years in prison, fine of $250,000
AGENCIES
U.S. Environmental Protection Agency, Criminal Investigations Division
Department of Homeland Security, Homeland Security Investigations
California Department of Toxic Substances Control, Office of Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Ongoing Federal Crime Reduction Strategy Leads to Criminal Charges Against Five Statesville-Area Drug TraffickersRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that a federal grand jury sitting in Charlotte has returned criminal indictments against five defendants, for their alleged involvement in drug trafficking in the Statesville area.
The five defendants named in the indictments and the charges they face are:
- Charles Mills, 34, of Statesville, is charged with nine counts of distribution and possession with intent to distribute cocaine.
- Dorey Joyner, 34, of Statesville, is charged with five counts of distribution and possession with intent to distribute cocaine.
- Myles Foote, 25, of Statesville, is charged with four counts of distribution and possession with intent to distribute cocaine.
- Lashon Maurice, Gaither, 40, of Statesville, is charged with possession with intent to distribute cocaine, and possession of a firearm by a felon.
- Terry Barringer, 61, of Statesville, is charged with four counts of distribution and possession with intent to distribute cocaine.
Each charge of possession with intent to distribute cocaine and distribution of cocaine carries a maximum term of 20 years in prison and $1,000,000 fine per count.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Iredell County Sheriff’s Office for handling the investigation that led the federal charges. U.S. Attorney Murray also thanked Iredell County District Attorney Sarah M. Kirkman for her office’s continued coordination and support of the PSN initiative.
Assistant U.S. Attorney Lambert Guinn, of the U.S. Attorney’s Office in Charlotte, is prosecuting these cases.
These case have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. In May 2019, the U.S. Attorney’s Office, announced the revitalization of PSN in Statesville, as part of a law enforcement initiative to drive down criminal activity in the area. Including today’s indictments, the Statesville-area PSN initiative has led to the prosecution of 18 defendants on federal narcotics and/or firearms offenses, and the seizure of 25 firearms, six of which had been reported stolen.
Nye’s Pharmacy Settles Allegations of Controlled Substances Act ViolationsRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Nye’s Pharmacy, of Conway, has agreed to pay the United States $185,000 to resolve allegations that it failed to abide by recordkeeping requirements of the Controlled Substances Act and filled prescriptions without confirming that they served a legitimate medical purpose. The settlement also requires Nye’s to comply with heightened reporting requirements for a two year period.
“Pharmacies have a duty to ensure that they track and dispense controlled substances in compliance with the law,” said U.S. Attorney Lydon. “Doctors and pharmacists are uniquely positioned to assist in preventing the abuse and diversion of controlled substances. Adhering to the basic rules of recordkeeping and prescription review is essential to helping fight the opioid epidemic.”
This matter was investigated by Dawn Bauer and Adam Roberson of the Drug Enforcement Administration and Assistant United States Attorneys Tina Cundari and James Leventis of the Columbia office.
The claims resolved by this settlement are allegations only. Nye’s does not admit wrongdoing or liability.
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Newport Man Sentenced for Social Security FraudRead the Press Release
COVINGTON, Ky. – A Newport, Kentucky, man was sentenced in federal court on Thursday, by U.S. District Judge David L. Bunning, to five years of probation and 30 days of intermittent confinement for committing Social Security fraud.
According to his guilty plea, from July 2013 through April 2018, Robert Howard, 57, defrauded the Social Security Administration by continuing to fraudulently receive his father’s Title II Social Security benefits, after his father’s death, and knowingly concealing his father’s death from the SSA. Howard admitted to calling the Florence, Ky., SSA office and impersonating his deceased father, in an attempt to ensure wrongful continuation of monthly payments. The total amount that Howard fraudulently received from the SSA was $82,565.10. As part of the sentence, the district court ordered Howard to repay this amount in restitution.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Wayne R. Warren, Resident Agent-in-Charge, SSA Office of the Inspector General, Atlanta Field Division, jointly announced the sentence.
The investigation was directed by the SSA-OIG. The United States was represented by Special Assistant U.S. Attorney James T. Chapman.
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New Orleans Resident Pleads Guilty in Cocaine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that defendant TEKA LAFRANCE, age 48, of New Orleans, pleaded guilty on September 25, 2019 to multiple counts of conspiring to distribute and distributing large quantities of cocaine hydrochloride and cocaine base. LAFRANCE is facing a mandatory minimum sentence of 10 years in prison, a maximum life sentence, a possible fine up to $10,000,000, and a period of supervised release of at least five years.
U.S. District Judge Martin L.C. Feldman is scheduled to sentence LAFRANCE on December 18, 2019.
U.S. Attorney Strasser praised the work of the Plaquemines Parish Sheriff’s Office (PPSO), Drug Enforcement Administration (DEA), Alcohol, Tobacco and Firearms (ATF), New Orleans Police Department (NOPD), Kenner Police Department (KPD), Customs and Border Protection (CBP), and Houston Police Department (HPD) in their investigation of this case. Assistant United States Attorneys Brandon S. Long and Paige O’Hale are in charge of the prosecution.
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New Cumberland Man Sentenced to Five Years’ Imprisonment for Receipt of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Earl T. Cook, Jr., age 55, of New Cumberland, Pennsylvania, was sentenced on September 25, 2019, by United States District Court Judge John E. Jones III, to five years’ imprisonment followed by five years’ on supervised release, for receipt of child pornography. Judge Jones also ordered Cook to pay an assessment of $5,000 under the Justice for Victims of Trafficking Act.
According to United States Attorney David J. Freed, Cook admitted to receiving child pornography over the internet between October 2014 and March 2015, in New Cumberland.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Mobile County Sentenced to 37 Months for Possession of a Firearm After Conviction of Five FeloniesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Derick Thomas Cumbie, a 26 year old resident of Mobile, Alabama was sentenced to 37 months of incarceration for possession of a firearm after being convicted of five felonies, namely, Theft of Property in 2018, Theft of Property in 2012, Burglary Third Degree in 2018, Receiving Stolen Property First Degree in 2018 and Unlawful Possession of a Controlled Substance in 2012.
On June 26, 2019, Cumbie entered a guilty plea pursuant to a plea agreement and admitted in open court that on February 3, 2019, Mobile County, AL deputies responded to a call for someone trespassing on property. When they arrived at the address on Padgett Switch Road in Irvington, they saw Cumbie get out of a Gray Nissan truck and flee when he saw the deputies. The deputies chased him and caught him. Cumbie told the deputies he ran because he had outstanding warrants. Deputies returned to the Nissan and saw, in plain view, on the front passenger seat a small quantity of methamphetamine (a field test confirmed it to be methamphetamine). The methamphetamine was seized. Deputies also saw, in plain view, a Glock pistol protruding from a duffle bag on the front passenger seat. Deputies seized the Glock and found it to be loaded. It is described as a Glock, model 17, 9mm pistol. After waiving his Miranda rights, Cumbie told the deputies that the Glock was his and he described it for them. Cumbie knew he was a convicted felon at the time he possessed the firearm.
Deputies of the Mobile County Sheriff’s Office along with special agents of the FBI investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mission Man Sentenced for Assault with a Dangerous Weapon, Discharging a Firearm During a Crime of Violence, and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Assault With a Dangerous Weapon, Discharging a Firearm During and in Relation to a Crime of Violence, and Failure to Appear was sentenced on September 26, 2019, by U.S. District Judge Roberto A. Lange.
William J. Waukechon, age 20, was sentenced to a total of 135 months in federal prison. He was sentenced to 12 months in federal prison for of Assault With a Dangerous Weapon, 120 months in federal prison for Discharging a Firearm During and in Relation to a Crime of Violence, and 3 months in federal prison for Failure to Appear, with such sentences to be served consecutively, followed by 3 years of supervised release. Waukechon was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $300.
The convictions for Assault With a Dangerous Weapon and Discharging a Firearm During and in Relation to a Crime of Violence stemmed from an incident that occurred on June 3, 2018, in Mission, South Dakota. On that date, Waukechon and another individual were working on a vehicle at the Sunrise Apartment Complex. Following a verbal altercation with the victim, Waukechon got into a vehicle and proceeded to leave the scene. The victim threw a can of beer at Waukechon’s vehicle. The driver then stopped the vehicle. Waukechon produce a pistol, opened the vehicle door and fired two rounds in the direction of the victim, striking the victim in the thigh. Waukechon was indicted by a federal grand jury on June 12, 2018. He plead guilty on March 18, 2019.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The conviction for Failure to Appear stemmed from conduct that occurred in January 2019. On January 22, 2019, Waukechon failed to appear in United States District Court for a change of plea hearing based on the above-described assault. Waukechon was indicted by a federal grand jury on February 13, 2019. He plead guilty on March 18, 2019.
These cases were investigated by the Federal Bureau of Investigation, the Rosebud Sioux Tribe Law Enforcement Services, and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted these cases.
Waukechon was immediately turned over to the custody of the U.S. Marshals Service.
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Mason County Man Sentenced to 30 Years in Prison for Federal Carjacking and Firearms OffensesRead the Press Release
HUNTINGTON, W.Va. – A Mason County man who threatened two employees of the Putnam Public Service District (PSD) with a machinegun and stole their company truck last year in Teays Valley was sentenced in federal court, announced United States Attorney Mike Stuart. Justin Michael Wilson, 20, was sentenced to 30 years in federal prison after he was previously convicted of carjacking, using, carrying, and brandishing a machinegun during and in relation to a crime of violence, unlawful possession of a machinegun, and possession of an unregistered machinegun. Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and multiple agencies who responded to the crimes, including the Mason County Sheriff’s Department, the Jackson County Sheriff’s Department, the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the Hurricane Police Department, and the West Virginia State Police.
“30 years for a 20 year old - truly tragic,” said United States Attorney Mike Stuart. “Threatening government employees. Use of a machine gun. Risking the lives of law enforcement. These were incredibly dangerous actions that could have resulted in loss of many lives. We will never accept this type of violent and illegal behavior but we appreciate the human tragedy of a 20 year old serving 30 years in prison.”
On January 11, 2018, Wilson drove a vehicle he had stolen earlier in the day in Jackson County to the Liberty Square Shopping Plaza in Teays Valley. While in route to the shopping plaza, Wilson acquired a machinegun and engaged deputies in Kanawha County in a chase, eventually driving off-road and jumping his vehicle over railroad tracks to get away. When he arrived at the shopping plaza, Wilson approached two employees of the Putnam Public Service District eating lunch in their company truck. Wilson brandished the machinegun, demanded the men transfer items from the stolen vehicle to the PSD truck, and stole the truck.
A West Virginia State Police trooper and deputies with the Putnam County Sheriff’s Department responding to calls at the shopping plaza for assistance immediately saw Wilson fleeing in the truck. Wilson then entered Interstate 64 headed westbound and led the responding units on another high speed chase. During the pursuit, Wilson pointed the machinegun out of the truck at the trooper, ran vehicles off the road, crossed the median at a designated emergency vehicle crossing, traveled westbound in the eastbound lanes, exited the interstate by traveling the wrong way up the entrance ramp at Hurricane, and eventually crashed the truck which was destroyed by fire. Wilson was pulled from the burning truck by the trooper and placed under arrest.
Assistant United States Attorneys Joseph F. Adams and Stephanie S. Taylor handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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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MEDIA ADVISORY: United States Attorney Robert Duncan Jr. to have Media Availability in Lexington on FridayRead the Press Release
LEXINGTON, Ky. – United States Attorney Robert Duncan will have press availability in Lexington on Friday, Sept. 27, 2019 at 3 p.m., along with Robert Brown, Jr., Special Agent in Charge of the FBI to discuss a sentencing.
Where: U.S. Attorney's Office
Eastern District of Kentucky
260 W. Vine Street, Suite 300
Lexington, Kentucky 40507
When: Friday, Sept. 27, 2019 at 3 p.m.
Luzerne County Woman Sentenced to 37 Months’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Angela Haggerty, age 44, of Hazleton, Pennsylvania, was sentenced on September 25, 2019, by U.S. District Court Judge Robert D. Mariani to 37 months’ imprisonment followed by three years’ supervised release, for participating in a heroin trafficking conspiracy that operated in Hazleton and other areas of Luzerne County.
According to United States Attorney David J. Freed, Haggerty previously pleaded guilty to conspiracy to distribute more than 700 grams of heroin between February 2016 and January 2017 (700 grams is equivalent to approximately 28,000 individual doses of heroin).
The matter was investigated by the Drug Enforcement Administration – Scranton Office, and the Pennsylvania State Police. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Lowell Woman Indicted for Stealing Approximately $182,000 from EmployerRead the Press Release
BOSTON – A Lowell woman was indicted today by a federal grand jury in Boston in connection with embezzling approximately $182,000 from a veterinary hospital that employed her.
Sasha A. Saulnier, 32, was indicted on six counts of wire fraud. An arraignment date has not yet been scheduled. In August 2019, Saulnier was charged by criminal complaint.
According to the charging documents, Saulnier was employed by a full-service animal hospital as a client relations specialist from October 2011 until September 2018. During that time, she had various client responsibilities, including selling retail products to customers at the hospital. Saulnier also served in a temporary supervisory role, which gave her access to management software and the ability to manipulate account transactions and accounting data.
It is alleged that from March 2014 through August 2018, Saulnier entered false refund transactions into the company’s management software, and then credited her own personal debit cards, which linked directly to her personal checking account. Specifically, Saulnier occasionally entered a fictitious refund for merchandise that was legitimately purchased by a customer, but never returned, and then credit the bogus refund to her own debit card. Saulnier also fabricated refunds for wholly fictitious retail purchases that were never actually made, and then credited that amount to her own debit card. In an effort to conceal her fraud, Saulnier allegedly used dormant accounts of inactive hospital clients, such as those with deceased pets and so-called “test accounts,” set up solely for training purposes. In addition, Saulnier fabricated discounts which she applied to purchases of retail products.
Over the course of the scheme, Saulnier used her position to falsify approximately 482 transactions resulting in refunds and credits totaling more than $182,800 to her own bank account. Saulnier allegedly used this money for personal expenses and travel, including trips to Las Vegas, New York City and the Bahamas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or up to twice the loss involved, restitution and forfeiture. 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 Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Resident Indicted on Sexual Exploitation ChargesRead the Press Release
BOSTON – A Lawrence resident was indicted today in federal court in Boston with sexually exploiting two children under four years of age.
Jakob Nieves, who also goes by the name Dakota, 19, was indicted on two counts of sexual exploitation of children, one count of distribution of child pornography and one count of possession of child pornography. Nieves was charged by complaint and arrested on Aug. 14, 2019. Nieves has been detained since that time.
According to the charging document, as part of an investigation into the use of Kik messenger for the trade of child pornography, an undercover agent communicated with Nieves via Kik. During the course of those communications, Nieves allegedly sent the undercover agent images and videos that Neives produced, depicting her sexually abusing a child.
It is alleged that when law enforcement executed a search warrant at Nieves’ home on Aug. 14, 2019, Nieves admitted to distributing images and videos of child pornography to a user she “met” in a Kik group geared toward individuals interested in pedophilia.
The charge of sexual exploitation of children provides for a minimum mandatory sentence of 15 years and no greater than 30 years in prison. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Each charge provides for a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Coordinator and member of the Major Crimes Unit, 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/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Latonia Man Sentenced to 40 Months for Identification Document Fraud and Aggravated Identity TheftRead the Press Release
COVINGTON, Ky. – A Latonia, Kentucky, man who previously admitted to illegally possessing nine Social Security cards and aggravated identity theft, was sentenced today to 40 months in prison, by U.S. District Court Judge David L. Bunning
Jesse Bryant, 37, pleaded guilty to the charges in June 2019. According to his plea agreement, at the time the identification documents were discovered in the vehicle that Bryant was driving, law enforcement also discovered stolen credit cards and equipment used to make or alter stolen identification documents.
Under federal law, Bryant must serve 85 percent of his/her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, and the Yvonne DiCristoforo, Special Agent in Charge for the United States Secret Service, jointly announced the sentence.
The investigation was conducted by the United States Secret Service. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Laura K. Voorhees.
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Jury Finds Tulsa Man Guilty of Federal Firearms and Drug Trafficking CrimesRead the Press Release
United States Attorney Trent Shores announced that a jury found Evan Jamon Woodard, 34, of Tulsa, guilty on Wednesday of multiple crimes, including intent to distribute cocaine, marijuana, and heroin, while carrying a firearm.
"I thank the jury for their service. Justice was done today. A gun-toting drug dealer who had seven prior felony convictions is off the streets and headed to federal prison," stated U.S. Attorney Trent Shores. "Guns and drugs are a dangerous combination that often lead to violence. That is why our Project Safe Neighborhoods initiative focuses on these types of offenses. I commend Assistant U.S. Attorneys Victor Regal and Edward Snow for successfully prosecuting this case, and the ATF and TPD for their thorough investigation. This guilty verdict is a direct reflection of the excellent collaborative law enforcement partnerships we have in northern Oklahoma."
Ultimately, the jury found Woodard guilty of 7 total felony charges. U.S. District Judge Gregory K. Frizzell presided over the trial and will sentence Woodward on December 30, 2019. Woodard faces a maximum penalty of 10 years in prison and a $250,000 fine for the felon in possession of firearm and ammunition charge; a maximum penalty of 20 years in prison and a $1,000,000 fine for the possession with intent to distribute cocaine and heroin charges; a maximum penalty of 5 years in prison and a $250,000 fine for the possession with intent to distribute marijuana charges; and a maximum penalty of life in prison and a $250,000 fine for possessing a firearm in furtherance of drug trafficking crimes.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources at all levels. Each United States Attorney’s Office will create a specialized unit that tailors its approach to the unique needs of its own district, and targets the most significant gun crime problems within that district to maximize the impact of the initiative and help ensure the safety of the community.
Woodard’s arrest and conviction were the result of a coordinated effort involving the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa Police Department, and Assistant U.S. Attorneys Victor Regal and Edward Snow.
Joint US-EU Statement on Electronic Evidence Sharing NegotiationsRead the Press Release
U.S. Department of Justice and European Commission officials met yesterday to begin formal negotiations on an E.U.-U.S. agreement to facilitate access to electronic evidence in criminal investigations. After a productive first discussion, there was agreement to regular negotiating rounds with the view to concluding an agreement as quickly as possible. Progress will be reviewed at the next E.U.-U.S. Justice and Home Affairs Ministerial in December.
European Commissioner for Justice, Věra Jourová said, “I welcome the start of formal negotiations. Criminals use fast, modern technologies to organize their crimes and cover up their evidence. We need to work together with our American partners to speed up the access of our enforcement authorities to this evidence. This will strengthen our security, while protecting the data privacy and procedural safeguards of our citizens. The launch of negotiations marks an important step towards achieving this.”
U.S. Attorney General William Barr said, “We are pleased that the Council adopted a mandate to authorize the Commission to negotiate an agreement with the United States on facilitating access to certain e-evidence, and that we have obtained authorization to negotiate with the European Union. This type of agreement can enhance public safety and national security by providing an improved and more rapid ability to identify and respond to criminal threats on both sides of the Atlantic, in a manner that assures respect for the rule of law, privacy, and civil liberties. The U.S. is committed to working with the E.U. on this important issue.”
Jacksonville Career Criminal Sentenced to Ten Years for Drugs and GunsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced James Edward Phillips, III (45, Jacksonville) to 10 years in federal prison for selling cocaine and possessing a firearm as a convicted felon. Phillips had pleaded guilty on June 11, 2019.
According to court documents, on four occasions during the summer of 2018, Phillips sold cocaine to a confidential informant working at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. On two of those occasions, Phillips also sold a total of three firearms, one of which was a rifle equipped with a 50-round drum magazine. At the time, Phillips was a 15-time convicted felon and therefore prohibited from possessing firearms or ammunition under federal law. His previous convictions include kidnapping with a firearm, armed burglary with assault or battery, armed burglary, battery on a law enforcement officer, possession of a firearm by a convicted felon, burglary, and grand theft.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jackson Man Sentenced under Project EJECT to nearly Two Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Mackee Donell Jefferson, 38, of Jackson, was sentenced today by U.S. District Judge Tom S. Lee to 21 months in federal prison, followed by 3 years of supervised release, for possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the FBI in Mississippi.
On September 14, 2018, Jefferson was waiting in a drive-through line of a fast food restaurant in Jackson. After a long wait, Jefferson became irritated. In an apparent attempt to accelerate his order, Jefferson approached the drive-thru window and tapped on the window with a handgun. A restaurant employee called the Jackson Police Department and officers responded. The officers approached Jefferson’s vehicle and questioned Jefferson while he was in his car. Jefferson admitted to possessing a gun. Jefferson has prior felony convictions for auto burglary in Rankin County and auto theft in Hinds County.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Honduran National Sentenced to More Than 11 Years for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Oscar Orlando Navarro-Melendez, 31, a Honduran national residing in Asheville, N.C. to 135 months in prison and five years of supervised release, for possession with intent to distribute methamphetamine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Interim Chief Robert C. White of the Asheville Police Department; and Sheriff Quentin Miller of the Buncombe County Sheriff’s Office.
According to court documents and today’s sentencing hearing, in July 2017, law enforcement became aware that Oscar Orlando Navarro-Melendez and his co-defendant, Linda Liceth Prada-Ardilla, were trafficking methamphetamine in and around Buncombe County. Court records show that law enforcement recovered from an Asheville-area hotel a suitcase which belonged to Navarro-Melendez and his co-defendant. Inside the suitcase, law enforcement located methamphetamine, cocaine, drug paraphernalia, a firearm and 25 rounds of ammunition. Law enforcement also searched the hotel room shared by Navarro-Melendez and Prada-Ardilla, where they found additional quantities of methamphetamine and cocaine, a firearm and more ammunition.
Navarro-Melendez is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. Prada-Ardilla was previously sentenced to 135 months in prison.
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In a separate case, Judge Reidinger sentenced Terrell Thomas, 23, of Asheville, and Angelia Neris, 28, of Fort Myers, Florida, each to 210 months and five years of supervised release for conspiracy to distribute methamphetamine. According to documents filed in this case, from July 2017 to October 2017, Neris and Thomas trafficked large amounts of methamphetamine in and around Buncombe County. Court records show that, each week, the co-conspirators bought between half a kilogram to a kilogram of methamphetamine from a supplier located in Atlanta. As Neris previously admitted in court, in a span of three months, the pair trafficked approximately 12 to 15 kilograms of methamphetamine. Over the course of the investigation, law enforcement recovered more than 650 grams of methamphetamine, a pump shotgun, an assault rifle, and a 9mm handgun.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Buncombe County Anti-Crime Task Force (B-CAT) for leading these investigations.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the cases.
Holly Ridge Man Sentenced for Production of Child PornographyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced KENNETH WADE REINHOLD, 33, of Holly Ridge, North Carolina to 360 months imprisonment, followed by a lifetime of supervised release.
REINHOLD was named in an Indictment filed on January 19, 2019 charging him with multiple counts of manufacture of child pornography, distribution of child pornography and possession of child pornography. On June 12, 2019, REINHOLD pled guilty to manufacturing child pornography.
In June 2018 the Federal Bureau of Investigation in Kansas City, Missouri, was investigating the distribution of child pornography on social media sites. An agent working in an undercover capacity found REINHOLD and others exchanging child pornography via Kik Interactive social media site. The undercover agent, in an attempt to gain information about the criminal activities and identity of REINHOLD, said she had two daughters that she was interested in exposing to sexual activity. REINHOLD expressed an immediate interest and began having private conversations with the agent. During those conversations the agent became aware REINHOLD was molesting young children with whom he had contact. Agents identified REINHOLD based on photos and dteremined he lived in Holly Ridge, North Carolina. FBI in Kansas City referred the matter to FBI in Wilmington, North Carolina so immediate action could be taken to protect the children against whom REINHOLD was offending.
The FBI and Onslow County Sheriff’s Office executed a search warrant at REINHOLD’s residence in Holly Ridge and seized multiple digital devices. REINHOLD, after being warned of his Miranda rights, admitted to taking exploitative photos of multiple children. He also admitted to running the chat group on Kik where multiple people were exchanging child pornography.
Forensic analysis of REINHOLD’s digital devices uncovered 185 images and 206 videos of child pornography. Law enforcement also found multiple child pornographic images and videos that REINHOLD himself produced, depicting minor victims under the age of 12.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The investigation of this case was conducted by the Federal Bureau of Investigation and Onslow County Sherriff’s Office. The case was prosecuted by Assistant United States Attorneys Erin Blondel, Charity Wilson and Jake D. Pugh.
Health Care Fraud and Opioid Enforcement Action Brings Multiple Charges Across the Middle District of FloridaRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces a significant health care fraud and opioid enforcement operation across the Middle District of Florida, involving charges against seven individuals for their alleged involvement in various schemes to defraud Medicare, Medicaid, and other federal health care benefit programs, and in various conspiracies to illicitly obtain and distribute oxycodone and other controlled substances.
Among those charged in partnership with the Justice Department’s Medicare Fraud Strike Force are the following:
United States v. Teresa Johnson
Teresa Johnson (53, Lecanto) is charged in a one-count Information with conspiracy to commit health care fraud. She faces a maximum penalty of 10 years in federal prison. According to the Information, from November 2016 through October 2018, Johnson owned and operated Tri-County Medical Billing and submitted false and fraudulent claims to Medicare, Medicaid, Tricare, and ChampVA, on behalf of a medical doctor who owned clinics in Crystal River, Spring Hill, and Celebration, Florida. The case is being investigated by the Health and Human Services - Office of Inspector General (HHS-OIG), the FBI, the Department of Defense - Office of Inspector General (DoD-OIG), the Department of Veterans’ Affairs - Office of Inspector General (VA-OIG), and the Florida Office of Attorney General’s Medicaid Fraud Control Unit (MFCU). The case will be prosecuted by Assistant U.S. Attorney Kelley Howard-Allen.
United States v. Hong Truong
Hong Truong (54, Dunedin) is charged in a 16-count indictment with conspiracy to unlawfully distribute and dispense Schedule II controlled substances, unlawful distribution and dispensing of Schedule II controlled substances, and using a place for unlawful drug distribution of the Schedule II controlled substances oxycodone 30 mg and hydromorphone 8mg in return for cash. Truong faces a maximum penalty of 20 years in federal prison on each of the counts. According to the indictment, Truong is a licensed pharmacist who owned and operated HP Pharmacy in Pinellas Park. From May 2015 through August 2016, Truong used her pharmacy to distribute and dispense Schedule II controlled substance prescriptions outside the scope of usual professional practice and for no legitimate medical purpose. This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Jessica Evans
Jessica Evans (34, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. Evans, who worked as a pharmacy technician at HP Pharmacy, faces a maximum penalty of 20 years in federal prison. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Lucretia Mullan
Lucretia Mullan (34, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. She faces a maximum penalty of 20 years in federal prison. Mullan was employed as a medical assistant at a pain management clinic where she generated the fraudulent opiate prescriptions. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Robin Lloyd
Robin Lloyd (37, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. She faces a maximum penalty of 20 years in federal prison. Lloyd was employed as a medical assistant at a pain management clinic where she generated the fraudulent opiate prescriptions. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Patrice Jackson
Patrice Jackson (37, Bradenton) is charged by Information with conspiracy to unlawfully distribute the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. Shen faces a maximum penalty of 20 years in federal prison. Jackson obtained the fraudulent opiate prescriptions from Mullan and Lloyd and then obtained the Schedule II controlled substances from Truong and Evans at HP Pharmacy for distribution. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Marcus Anderson
Marcus Anderson (34, St. Petersburg) is charged in a 13-count indictment with health care fraud and aggravated identity theft for stealing rendering providers’ identities to submit more than $1.2 million in false and fraudulent claims to Medicaid. He faces a maximum penalty of 10 years in federal prison for each of the seven health care fraud counts and a consecutive two years in prison for the six aggravated identity counts. The case is being investigated by HHS-OIG, the Florida Office of Attorney General/MFCU, and the St. Petersburg Police Department. This case will be prosecuted by Assistant U.S. Attorney Kristen A. Fiore.
An indictment and information are merely formal charges that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Guatemalan Man Who Used a Fraudulent Social Security Card Sentenced to PrisonRead the Press Release
A man who used a false identification document and someone else’s social security number was sentenced today to almost three months in federal prison.
Daniel Riz-Morente, age 35, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a July 3, 2019, guilty plea to one count of unlawful use of an identification document and one count of misuse of a social security number.
At the guilty plea, Riz-Morente admitted he used a fraudulent Social Security card when he completed employment and tax forms using an alias name in April 2019, at a business in West Union, Iowa. The Social Security account number on the card used by Riz-Morente belonged to another person. On June 4, 2019, Riz-Morente was arrested by immigration agents at the business in West Union where Riz-Morente was working under the alias name.
On March 4, 2019, Riz-Morente first came to the attention of Custom and Border Patrol agents in New Mexico after he illegally entered the United States with a minor child. Riz-Morente was released and instructed to report to the ICE office in Cedar Rapids, Iowa, pending further immigration proceedings. As part of his release conditions, Riz-Morente was told he could not work in the United States without government authorization and proper documentation.
Riz-Morente was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Riz-Morente was sentenced to 115 days’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Riz-Morente is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1016.
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Guatemalan Man Sentenced to Prison Following Deportation and Document FraudRead the Press Release
A man who had been deported, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced today to more than four months in federal prison.
Jose Mariano Choch-Quiej, age 32, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a July 1, 2019, guilty plea to one count of illegal reentry into the United States.
In a plea agreement, Choch-Quiej admitted he had previously been deported from the United States in August 2007 and that he illegally reentered the United States without the permission of the United States government. When he was found in 2007, Choch-Quiej initially claimed to be a Mexican citizen to avoid being returned to Guatemala. In May 2019, immigration agents found Choch-Quiej at the Winneshiek County Jail in Decorah, Iowa, following his arrest for driving with a suspended license.
Choch-Quiej also admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed employment forms in August 2018, at a business in Decorah, Iowa. The Social Security account number on the card used by Choch-Quiej belonged to another person. The Alien Registration number on the “green card” was issued to another person.
Choch-Quiej was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Choch-Quiej was sentenced to 133 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Choch-Quiej is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2034.
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Gibson County Man Receives 90 Month Sentence for Being a Convicted Felon in Possession of Multiple FirearmsRead the Press Release
Jackson, TN – Matthew J. Pate, 34, of Humboldt, Tennessee was sentenced to 90 months in federal prison for being a felon in possession of firearms. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on July 2, 2019, Gibson County Sheriff’s Department deputies responded to a domestic assault situation where Matthew Pate was waiving a BB gun at his wife, mother in law and children. Once on scene, officers determined that the suspected BB gun was actually a .380 caliber pistol.
Further investigation revealed Pate was a prohibited person for a prior aggravated assault felony conviction. Officers asked for consent to search the residence where they found 5 additional firearms (3 pistols and 2 rifles). One was stolen and another had the serial numbers partially obliterated. The pistols were scattered throughout the house and the rifles were in the closet. Officers also found numerous alprazolam pills. Pate admitted to purchasing the weapons from an individual.
On September 11, 2019, U.S. District Court Judge J. Daniel Breen sentenced Pate to 90 months imprisonment followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said: "Reducing violent crimes committed with firearms is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. I commend the work of our federal and local law enforcement partners in holding Pate responsible and removing him from our streets."
Gibson County Sheriff Paul Thomas said: "I'm thankful for the partnership the United States Attorney's office maintains with local law enforcement. General Dunavant and his dedicated staff of Assistant U.S. Attorneys are always eager to help us when we have repeat, felony offenders in our communities that we need to remove from society. Their prosecution in this particular case solidifies all our positions on keeping our streets safe."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gibson County Sheriff’s Department.
Assistant U.S. Attorney Hillary Parham prosecuted this case on behalf of the government.
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Gaithersburg Man Pleads Guilty to Federal Charges for Receipt of Child Pornography and Extortion by Threat to Ruin the Reputation of AnotherRead the Press Release
Greenbelt, Maryland – Zhi Tian Lang, age 23, of Gaithersburg, Maryland, pleaded guilty on September 25, 2019, to receipt of child pornography and to extortion by threat to ruin the reputation of another. Lang admitted that he threatened to post revealing photos of the victims on social media and other Internet platforms if they did not send him sexually explicit photographs and/or videos of themselves.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, between at least January and October 2014 Lang communicated with minor female victims ranging in age from 13 to 17 years old and located throughout the United States, including South Dakota, Wisconsin, and New Jersey. Lang used an Internet messaging application and used the name “Seth” when contacting his victims. Lang would obtain pictures of minor victims from their social media accounts or through direct flirtation. The picture often depicted the victims in their underwear. Lang would then demand that unless the victim provided him with nude pictures, he would post the initial pictures on a public Internet account or send them directly to one or more of the victim’s acquaintances.
As detailed in his plea agreement, at least eight minor victims provided Lang sexually explicit photos and/or videos of themselves in response to Lang’s threats. Lang admitted that he posted photographs of minor victims to coerce them and sent at least one photo to another individual.
As a result of his conviction, Lang will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Unless indigent, Lang will also be required to pay a special assessment of $5,000.
Lang faces a minimum mandatory sentence of five years and a maximum of 20 years in prison for receipt of child pornography and a maximum of two years in prison for extortion by threat to ruin the reputation of another. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 8, 2020 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who is prosecuting the federal case.
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Ft. Thompson Man Sentenced on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Ft. Thompson, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 25, 2019, by U.S. District Judge Roberto A. Lange.
Michael George Fallis, age 41, was sentenced to 72 months in federal prison, 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fallis was indicted by a federal grand jury on April 9, 2019. He pled guilty on May 30, 2019.
The conviction stemmed from an drug conspiracy that began at a time unknown, but no later than December 1, 2015, and continuing to November 14, 2018, where Fallis knowingly and intentionally conspired with others to distribute and possess with the intent to distribute over 500 grams of methamphetamine, a Schedule II controlled substance, on the Crow Creek and Lower Brule reservations in South Dakota. Fallis was a dealer for Frank “Tank” Adams, who was convicted of conspiracy to distribute a controlled substance at a federal jury trial in August. Fallis allowed Adams to deal methamphetamine out his home. A federal search warrant conducted at Fallis home recovered meth, baggies, scales and other drug paraphernalia items.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs, Crow Creek Agency, the Bureau of Indian Affairs, Lower Brule Agency, the South Dakota Highway Patrol, and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges.
Fallis was immediately turned over to the custody of the U.S. Marshals Service.
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Fresno Man Stopped for Speeding Found to Be in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Jerald Esther Williams, 22, of Fresno, charging him with being a felon in possession of ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 14, Fresno Police Department officers saw a vehicle driving at a high rate of speed. They determined the vehicle was going in excess of 97 miles per hour. Williams was the sole occupant of the vehicle. During a search of the car, the officers found a loaded gun on the driver’s side floorboard near Williams’ left heel. The gun had eight rounds of 9 mm Luger ammunition in it. As a previously convicted felon, Williams is prohibited from possessing ammunition.
This case is the product of an investigation by Homeland Security Investigations and the Fresno Police Department. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Williams faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Indicted for Fentanyl and Carfentanil ConspiracyRead the Press Release
BOSTON – Three men and one woman were indicted yesterday in federal court in Boston with fentanyl and carfentanil conspiracy.
Rickey Depina, 31, of Brockton; David Fernandes, 32, of Braintree; Keanu Fernandes, 23, of Brockton; and Viviana Fontes, 29, of Brockton, were charged in an indictment with conspiracy to distribute and possess with intent to distribute fentanyl and carfentanil.
According to the charging documents, from at least May 2017 through August 2019, in Brockton, Abington, Boston, Braintree, Easton, Fall River, Holbrook, Norton, Quincy, Raynham, South Easton, West Bridgewater, and Whitman the defendants conspired to distribute fentanyl and carfentanil. On multiple occasions, law enforcement made controlled purchases of both fentanyl and carfentanil. And on Oct. 1, 2018, law enforcement stopped a car in which Depina, David Fernandes, and Fontes were traveling and recovered over 17 grams of fentanyl, approximately $1,750 and four cell phones. While executing search warrants later that day, law enforcement recovered another $10,000.
Carfentanil is an analog of fentanyl and approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is used commercially in tranquilizer darts for large mammals such as elk or elephants, and can be lethal in a dose as small as 2 milligrams.
The charge of conspiracy to distribute and possess with intent to distribute fentanyl and carfentanil provides for a sentence of no greater than 20 years in prison, at least three years and up to life supervised release and a fine of $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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Massachusetts State Police Superintendent Colonel Kerry A. Gilpin; and Brockton Police Chief John Crowley made the announcement. Assistant U.S. Attorneys Timothy Moran and Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former shipbuilding Project Manager pleads guilty to wire fraud in $1.5 million false invoice schemeRead the Press Release
SEATTLE - A former project manager for Portland, Oregon-based shipbuilder Vigor Marine LLC, pleaded guilty today to wire fraud related to his scheme to defraud his employer out of approximately $1.5 million, announced U.S. Attorney Brian T. Moran. SHELTON LAYNE SMITH, 50, of Portsmouth Virginia, is scheduled to be sentenced by U.S. District Judge Robert S. Lasnik on December 19, 2019.
According to records in the case, in 2016 and 2017, SMITH served as the project manager on the renovation of two U.S. Coast Guard cutters called the “Bertholf” and the “Waesche.” The renovations took place at Vigor’s Seattle facility. SMITH was responsible for selecting vendors and approving payments to them for equipment and services related to the renovations. In this role, SMITH fabricated invoices from a fictitious company called “Marine Service Solutions” (MSS). The fraudulent invoices caused Vigor to pay out approximately $1.5 million for work that was never done and equipment that was never provided.
SMITH’s scheme to defraud was an elaborate charade. SMITH persuaded a legitimate Vigor vendor to serve as a “pass-through” entity that received invoices from MSS, marked up the cost of the services, and passed on the fraudulent expenses to Vigor. The local vendor was not aware that Marine Service Solutions was not a real company. SMITH also misled a long-time acquaintance in Mississippi into setting up a bank account for MSS, cashing the checks, and funneling most of the proceeds to SMITH. In emails, SMITH posed as the Mississippi man, making it appear as if the Mississippi man was the owner of MSS. When questioned by the FBI, SMITH repeatedly lied about MSS and encouraged his acquaintance in Mississippi to stick to a false story about the company.
Vigor terminated SMITH in 2017 after discovering that SMITH had mishandled the Bertholf project. SMITH’s successor discovered the fraud, and Vigor reported the crime to the FBI.
SMITH has agreed to make restitution to Vigor of $1,483,802. As part of that restitution he will forfeit his right, title, and interest in any and all property, real or personal, that constitutes or is derived from proceeds traceable to the offense of Wire Fraud.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. The ultimate sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Former deputy constable to appear in court on drug and money laundering chargesRead the Press Release
HOUSTON – A former Harris County deputy constable and her husband have been charged with conspiring to possess heroin with the intent to distribute it as well as attempting to launder drug proceeds, announced U.S. Attorney Ryan K. Patrick.
A Houston grand jury returned the six-count indictment Sept. 18 against Betty Jean Molina, 56, and her husband Henry Molina, 59, both of Houston. They were taken into custody yesterday and are expected to make their initial appearances today before U.S. Magistrate Judge Christina A. Bryan at 10 a.m.
At the time of the offense, Jean Molina was a deputy constable with Harris County Precinct 5 Constable’s Office.
She and her husband are charged for their involvement in the laundering of what they believed was $500,000 in drug proceeds over a two-month-period.
The couple is charged with one count of conspiracy and another count of possession with the intent to distribute heroin for which they face a minimum of 10 years and up to life in prison as well as a possible $10 million fine. If convicted of any of the four counts of money laundering, they also face a potential sentence of 20 years of federal imprisonment. Those counts also carry up to a $500,000 fine or twice the value of the property involved in the transaction.
The FBI conducted the investigation with the assistance of Harris County Constable Precinct 5 and the FBI Houston Law Enforcement and Border Corruption Task Force, which includes the Houston Police Department’s Internal Affairs Proactive Unit and the Texas Department of Public Safety.
Assistant U.S. Attorneys Arthur R. Jones and Alamdar Hamdani are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former U.S. Army Range Director Pleads Guilty in Bribery SchemeRead the Press Release
HONOLULU – John Winslett, 65, of Bristol, Rhode Island, pleaded guilty today in federal court to one count of conspiracy to commit honest services wire fraud and one count of conspiracy to accept kickbacks in connection with a U.S. government contract. Winslett admitted that he bribed government contracting officials in order to steer federal contracts worth at least $19 million to his employer, a government contractor. Winslett further admitted that he accepted $723,333.33 in kickbacks from a local subcontractor, in exchange for Winslett assigning those contracts to that local subcontractor. Sentencing is scheduled for January 16, 2020 before Chief U.S. District Judge John M. Seabright.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Kenji M. Price for the District of Hawaii, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command (Army CID), Special Agent in Charge Bryan Denny of the U.S. Defense Criminal Investigative Service (DCIS) and acting Special Agent in Charge Eli S. Miranda of FBI’s Honolulu Field Office made the announcement.
According to court documents and information presented in court, from 2011 to 2018, Winslett paid over $100,000 worth of bribes to two U.S. Army contracting officials who worked at the Range at Schofield Barracks. The bribes included cash, automobiles, and firearms. In return, the contracting officials used their positions to benefit Winslett’s employer in securing U.S. Army contracts. Winslett also arranged for one of the contracting officials, Franklin Raby, to receive a job at his employer immediately following his retirement from the Department of Defense Civil Service. Raby has previously pled guilty to receiving bribes. Another contracting official, Victor Garo, has been charged with receiving bribes, and a change-of-plea is scheduled for later in October.
"Fair play in the competitive bidding process is critical to obtaining quality products and services for our uniformed personnel," stated U.S. Attorney Price. "Our law enforcement community will continue to hold those accountable who violate the law by failing to act with honesty and integrity in military contracting."
The case was investigated by Army CID, DCIS, FBI, and the Defense Contract Audit Agency. It was prosecuted by Trial Attorney Laura Connelly and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein for the District of Hawaii.
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Former Postal Employee Pleads Guilty to Theft of MailRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CAREEMA LEWIS, 33, of Waterbury, waived her right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to theft of mail by a postal employee.
According to court documents and statements made in court, between September 2018 and January 2019, while she was employed as a postal worker at the U.S. Post Office in Plymouth, Lewis stole numerous pieces of mail, specifically, greeting cards that contained gift cards or other items of value. When confronted by investigators in January 2019, Lewis admitted that she stole “between 20 and 50” gift cards from the mail. Lewis subsequently surrendered approximately 10 gift cards that she had stolen from greeting cards, and approximately 17 pieces of stolen mail that she had in her vehicle and her purse.
At sentencing, which is not yet scheduled, Lewis faces a maximum term of imprisonment of five years.
This matter is being investigated by the U.S. Postal Service Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
U.S. Attorney Durham encouraged individuals who believe they are a victim of theft related to this case to file a complaint by calling 888-USPS-OIG, or by visiting https://www.uspsoig.gov/form/file-online-complaint
Former Mexican State Attorney General Sentenced to 20 Years in Prison for Participation in International Narcotics Distribution ConspiracyRead the Press Release
A dual citizen of the United States and Mexico, and the former State Attorney General for the State of Nayarit, Mexico, was sentenced to 20 years’ imprisonment followed by five years of supervised release, following his guilty plea to an international heroin, cocaine, methamphetamine and marijuana manufacture and distribution conspiracy.
Edgar Veytia, 48, was sentenced today by U.S. District Judge Carol Bagley Amon, who also ordered Veytia to forfeit $1 million, following a conspiracy charge relating to a scheme to import illegal drugs from Mexico to the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Richard P. Donoghue of the Eastern District of New York; Special Agent in Charge Ray Donovan of the Drug Enforcement Administration (DEA) New York Division; Special Agent in Charge David J. Downing of DEA Los Angeles Division; Special Agent in Charge Matt DeSarno of the FBI’s Washington D.C. Field Office and Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York Field Office made the announcement.
As established at the defendant’s sentencing, U.S. law enforcement has been investigating a violent Mexican drug trafficking organization, known as the H-2 Cartel that was previously lead by Juan Francisco Patron Sanchez, also known as “H-2,” and was based in Nayarit and Sinaloa, Mexico. The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The government estimates that, during the relevant time period of the conspiracy, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana and earned millions of dollars in illegal proceeds. Additionally, the H-2 Cartel was involved in the possession and use of firearms, and substantial violence, including torture and dozens of homicides.
Between January 2013 and February 2017, the defendant conspired with the H-2 Cartel to distribute thousands of kilograms of heroin, cocaine, methamphetamine and marijuana, from Mexico into the United States, and distributed those narcotics in the New York area, including in the Eastern District of New York. Veytia used his position as the top law enforcement officer in his region to assist and abet drug trafficking organizations in Mexico. Veytia received bribes on a monthly basis and provided official sanction for the H-2 Cartel to engage in drug trafficking in Nayarit. Vetyia directed other corrupt Mexican law enforcement officers he oversaw to assist the H-2 Cartel, released members and associates of the H-2 Cartel from prison after they had been arrested for drug trafficking-related crimes, instructed corrupt Mexican law enforcement officers to target rival drug traffickers in Nayarit for wiretaps and arrests and assisted the H-2 Cartel with murders and other acts of violence, all of which helped the H-2 Cartel’s illegal drug enterprise flourish.
The DEA, FBI and HSI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) investigated the case. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The Office’s International Narcotics and Money Laundering Section of the United States Attorneys with the Narcotic and Dangerous Drug Section of the Department of Justice are handling the government’s case. Trial Attorneys Jason Ruiz and Anthony Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Michael P. Robotti, Craig R. Heeren and Ryan C. Harris of the Eastern District of New York are prosecuting the case.
Former Mexican State Attorney General Sentenced to 20 Years in Prison for Participation in International Narcotics Distribution ConspiracyRead the Press Release
Edgar Veytia, a dual citizen of the United States and Mexico, and the former State Attorney General for the State of Nayarit, Mexico, was sentenced today to 20 years’ imprisonment and ordered to pay $1 million in forfeiture following his guilty plea to participating in an international heroin, cocaine, methamphetamine and marijuana manufacturing and distribution conspiracy responsible for importing illegal drugs from Mexico to the United States. The sentencing was held before United States District Judge Carol Bagley Amon in federal court in Brooklyn
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; William D. Bodner, Special Agent-in-Charge, Drug Enforcement Administration, Los Angeles Division (DEA); Timothy M. Dunham, Special Agent-in-Charge, Federal Bureau of Investigation, Washington, D.C. Field Office (FBI); and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), announced the sentence.
“When Joaquin ‘El Chapo’ Guzmán was sentenced to life imprisonment, we warned that there were more days of reckoning to come. The sentence imposed on this corrupt Mexican government official makes this just such a day,” stated United States Attorney Donoghue. “Neither Mexican cartel leaders nor corrupt officials who assist them should sleep well tonight. We are coming for you.” Mr. Donoghue thanked the DEA New York Field Office for its assistance on the case.
“Today’s sentencing of Mr. Veytia shows DEA’s strong commitment to the rule of law and collaboration with other Government agencies,” said DEA Special Agent-in-Charge Bodner. “Our agents will continue to be relentless in the worldwide pursuit of drug traffickers and the corrupt government officials who protect them.”
“Veytia abused his position in the government and protected drug traffickers who brought dangerous drugs through his country to the U.S. on behalf of a violent Mexican drug cartel," stated FBI Special Agent-in-Charge Dunham. “The FBI stands for fair and honest law enforcement and will continue to investigate any individual who places greed over the rule of law and commits such crimes that bring harmful drugs and corruption to our communities.”
“Working with the cartel, Veytia used Mexican law enforcement to protect drug loads, intimidate and harm rival drug traffickers. He also used his role as Attorney General to obstruct justice when cartel members were arrested,” stated HSI Special Agent-in-Charge Fitzhugh. “Law enforcement partnerships in investigating this case is what brought this individual who used his position of power for criminal gains to now face justice for his actions.”
U.S. law enforcement has been investigating the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico, that was previously led by Juan Francisco Patron Sanchez. The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds. In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence, including torture and dozens of homicides.
Veytia used his position as the top law enforcement officer in the State of Nayarit to assist and sanction the cartel’s operations in Mexico, in exchange for bribes on a monthly basis. Vetyia also directed other corrupt Mexican law enforcement officers under his supervision to assist the H-2 Cartel, released members and associates of the cartel from prison after they had been arrested for drug trafficking-related crimes, instructed corrupt Mexican law enforcement officers to target rival drug traffickers for wiretaps and arrests and assisted the H-2 Cartel in carrying out murders and other acts of violence. In addition, Veytia assisted the H-2 Cartel in covering up the murder of a rival drug trafficker in October 2015.
The case was investigated by the DEA, FBI and HSI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and the Narcotics and Dangerous Drug Section of the Department of Justice. Assistant U.S. Attorneys Michael P. Robotti, Craig R. Heeren and Ryan C. Harris of the Eastern District of New York are prosecuting the case, together with Trial Attorneys Jason Ruiz and Anthony Aminoff of the Narcotics and Dangerous Drug Section.
The Defendant:
Edgar Veytia
Age: 48
EDNY Docket No. 17-CR-115 (CBA)Former Employee Indicted for Nearly $10 Million Fraud SchemeRead the Press Release
HOUSTON – A 65-year-old Lubrizol Corporation employee has been taken into custody following the return of a 10-count indictment for wire fraud, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the indictment under seal Sept. 17 against James Arthur Camp, of New Braunfels. Today, he is expected to make his initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m.
The indictment alleges Camp was employed at Lubrizol Corporation in Deer Park, a provider of specialty chemicals for the transportation, industrial and consumer markets. While employed there, he allegedly defrauded the company of $9,256,712.54 from approximately April 1998 through November 2017.
In order to execute the scheme, Camp submitted fraudulent invoices for laboratory services from two companies he owned, knowing they had not actually been performed. He then allegedly caused Lubrizol to issue payments to those companies. The indictment further alleges he used the fraudulently - obtained payments for his own personal use and benefit.
If convicted, Camp faces up to 20 years imprisonment on each count as well as a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Connecticut Physician Pays $300,000 to Settle False Claims Act AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office, today announced that DR. PHILIPPE R. CHAIN has entered into a civil settlement agreement with the federal government in which he will pay $300,000 to resolve allegations that he violated the False Claims Act.
Chain, who currently practices medicine in Florida, previously practiced medicine in Connecticut. While in Connecticut, Chain also worked for CallMD, a telemedicine company located Nevada, to perform telehealth services. 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. “Compounding” is a practice by which a pharmacist combines, mixes, or alters the ingredients of a drug to create a medication tailored to the needs of an individual patient. Compounded medications are not FDA-approved.
The government alleges that Chain caused pharmacies to submit false claims for compounded medications to TRICARE by issuing or approving prescriptions that 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. It is further alleged that many of the prescriptions were not medically necessary.
To resolve the government’s allegations under the False Claims Act, Chain agreed to pay $300,000, which covers claims submitted to the TRICARE program from January 28, 2015 through July 28, 2015.
“We will work to aggressively protect the health care benefits for our service members, veterans, and their families,” said U.S. Attorney Durham. “Health care providers who cause false claims to be submitted to federal health care programs will be held accountable.”
“One of the Defense Criminal Investigative Service’s (DCIS) investigative priorities is to ensure the integrity of TRICARE, the U.S. Department of Defense’s health care program for military members, retirees and their dependents,” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “This settlement is the result of a joint effort and demonstrates DCIS’ ongoing commitment to partner with the Connecticut U.S. Attorney’s Office to investigate and prosecute health care providers who submit false claims to TRICARE.”
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.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Former CEO Pleads Guilty in Scheme to Defraud Elderly Victims in the Sale of Worthless StockRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KEITH ORLEAN, a/k/a “Jack Allen,” pled guilty to participating in a scheme to target elderly persons to solicit purchases of stock in a series of valueless companies through a variety of lies and misrepresentations. ORLEAN pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud before U.S. District Judge Vernon S. Broderick.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Keith Orlean purported to offer elderly victims time-sensitive investment opportunities. In actuality, he was selling victims a package of false promises that yielded profit only for him and his co-defendants. Orlean now awaits sentencing for his predatory practices.”
According to the allegations contained in the Complaint, the Indictment, and statements made in related court filings and proceedings:[1]
For several years, ORLEAN and his co-defendants operated a fraudulent scheme in which a salesman named “Mike Palmer” would call elderly persons on the phone and offer them what he claimed was a time-sensitive opportunity to buy stock in certain companies. In fact, there was no “Mike Palmer,” and the salesman was actually one or the other of ORLEAN’s two co-defendants, who were taking turns using the fake alias. The purported time-sensitive investment opportunity was also fabricated by the defendants, as the companies in which they solicited investments were actually companies under their control. In one intercepted phone conversation, Co-defendant-1 described to ORLEAN his strategy for a successful investor sales pitch as: “You ram it down their fucking throat.” In another intercepted call between Co-defendant-1 and ORLEAN, upon learning that a particular victim investor died, Co-defendant-1 remarked: “I knew I should have pulled the last $10,000 out of him.”
The most recent version of the defendants’ phony sales pitch included false representations about an impending initial public offering, or “IPO,” for their company, Digital Donations Technologies, Inc. For example, in April 2018, one of the defendants assured a victim investor that “our company is doing great,” that the company had an offer for an IPO valued at approximately $300 million, and that defendant KEITH ORLEAN was considering a private sale of the company for more than $1.5 billion. In truth, however, the defendants knew that the company had little or no actual commercial value and that no such IPO or sale was taking place.
The Federal Bureau of Investigation ("FBI") estimates that since April 2014, the defendants have convinced more than approximately 50 elderly persons to purchase stock in companies controlled by one or more of the defendants based on false representations. The defendants appear to have solicited more than $2 million in stock purchases from victims.
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ORLEAN, 61, of Dix Hills, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum penalty of five years in prison, and one count of securities fraud, which carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ORLEAN is scheduled to be sentenced before Judge Broderick on January 10, 2020, at 3:00 p.m.
Mr. Berman praised the outstanding work of the FBI.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Robert Boone and Andrew Thomas are in charge of the case.
[1] As for ORLEAN’s co-defendants, the description of the charges set forth herein constitute only allegations.
Former Allen County Sheriff sentenced to more than 11 years in prison for asking for and taking bribes from people arrested in prostitution stings, suspected gamblers and othersRead the Press Release
The former Allen County Sheriff was sentenced to more than 11 years in prison for asking for and taking bribes from people arrested in prostitution stings, suspected gamblers and others.
Samuel A. Crish, 56, previously pleaded guilty to multiple counts of extortion and soliciting bribes. He was sentenced to 136 months in federal prison and ordered to pay $606,221 in restitution.
“The former sheriff earned every day of this sentence,” U.S. Attorney Justin Herdman said. “His conduct is an affront to the men and women in law enforcement and the citizens he pledged to protect and serve. Using his office and badge to demand bribes from gamblers and people arrested in prostitution stings is beyond offensive.”
"Mr. Crish will now serve the well deserved punishment handed down by the judge for his abhorrent criminal behavior,” said FBI Special Agent in Charge Eric Smith. “Law enforcement officers take an oath to enforce the law, not break the law."
Court documents detail Crish extorting or soliciting tens of thousands of dollars from several people between 2012 and 2016.
According to court documents:
Crish joined the Allen County Sheriff’s Office in 1991, where he held numerous positions, including commander of the office’s Investigative Division and the West Central Ohio Crime Task Force (WCOCTF). He was elected sheriff in 2008, 2012 and 2016.
In June 2012, Crish approached a person identified in the charges as Person 1 and asked Person 1 for $8,000, falsely stating he needed the money to cover medical bills. Person 1 gave Crish the money in cash in an alley behind the sheriff’s office in July 2012.
Two months later, Person 1 applied for the position of nurse at the Allen County Jail, which Crish oversaw. Based on conversations with Crish, Person 1 understood the job was theirs. Crish stated in October 2012 he would try to hire Person 1 as nurse. In the same conversation, he stated he needed $42,000 to pay his debts and asked if Person 1 could help.
Person 1 took out a home equity line of credit and, on Oct. 12, 2012, gave Crish a check for $42,000 in the alley behind the sheriff’s office. Crish agreed to repay the money in monthly increments of $480. On Dec. 15, 2012, Person 1 was hired by the Allen County Sheriff’s Office to work as the nurse at the county jail.
Person 3 operated a used car business and was arrested by members of the sheriff’s office and WCOCTF on Aug. 19, 2015 during a prostitution sting. He was charged with solicitation in Lima Municipal Court.
Crish visited Person 3’s business several times in August and September 2015, at one point asking Person 3 for a $7,000 loan. Person 3 gave Crish a check for $7,000 on Sept. 25, 2015.
Crish met with prosecutors and law enforcement officials about Person 3’s case on Nov. 24, 2015, and demanded the Lima City Attorney’s Office drop the charges. The solicitation case was dismissed on Feb. 18, 2016. Eight days later, Crish texted Person 3 to meet, where they discussed the dismissal of Person 3’s case.
Person 4 operated a used car business in Elida, Ohio. Crish asked Person 4 in September 2015 to work as an informant. He also asked Person 4 to loan him $10,000.
Person 4 gave Crish $10,000 in cash on Nov. 3, 2015. The next day, Person 4 was arrested at a motel in Lima as part of a prostitution sting operation. Following his arrest, Person 4 asked to speak to Crish. All of the other men arrested were charged.
Crish visited Person 4’s business on Nov. 5, 2015, and told him not to worry about the arrest because he was working for Crish.
Crish visited Person 4’s business again on Nov. 17, 2015, and asked for $500. Person 4 insisted Crish would have to pay back the $500, unlike the previous $10,000. Crish called Person 4 in May 2016 and told him he was “fine” referring to the charges for the prostitution arrest.
Person 5 owned a grocery store in Allen County. Crish stopped by Person 5’s business in October 2015 to ask for a loan. Crish inferred during the visit that an agency was coming to investigate Person 5’s business for suspected illegal gambling operations, but that Crish could stop the investigation if Person 5 provided Crish with a loan.
Person 5 gave Crish a $2,000 loan in October 2015, which Crish repaid without interest.
The FBI and the Ohio Bureau of Criminal Investigation investigated the case, and it was prosecuted by Assistant U.S. Attorney Gene Crawford.
Five Defendants, Including Two Medical Doctors, Charged as Part of Northeast Regional Health Care Fraud TakedownRead the Press Release
Four individuals, including two doctors, a pharmacist who had previously lost his license and been excluded from participating in the Medicaid and Medicare programs and a pharmacy owner have been charged for their participation in schemes in which the Medicare and Medicaid programs were fraudulently billed more than $17 million. A fifth individual, a registered nurse, pleaded guilty to possession of fentanyl that he stole from his employer, a hospital on Long Island. The charges filed in federal court in Brooklyn and Central Islip are part of a coordinated health care fraud enforcement action across seven federal districts in the northeast United States, led by the Medicare Fraud Strike Force, that resulted in criminal charges against 48 defendants for their alleged participation in health care fraud schemes involving more than $800 million in false and fraudulent claims.
The charges were announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, New York Regional Office (HHS-OIG).
“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 United States Attorney Donoghue. “As this initiative demonstrates, we will continue to bring to justice those that defraud our nation’s health care programs.”
“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,” stated Assistant Attorney General Benczkowski. “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 alleged today, the defendants took advantage of programs established for the benefit of those less fortunate, allowing themselves to profit by defrauding the government of public money. May today’s charges remind those who tear holes in the government safety net that they will face the error of their ways,” stated FBI Assistant Director-in-Charge Sweeney.
“There is no difference between the diversion of prescription medication to street drug trafficking,” stated DEA Special Agent-in-Charge Donovan. “Allegedly, Kevin McMahon abused his position as a registered nurse diverting fentanyl for his personal use. The DEA and our law enforcement partners’ goal is to keep our citizens safe by guarding against health care fraud and the illegal diversion of prescription medication.”
“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,” stated HHS-OIG Special Agent-in-Charge Lampert. “With our law enforcement partners, our agency will continue to thoroughly investigate medical providers and others involved in healthcare fraud.”
The schemes charged in the Eastern District of New York, detailed in two indictments, one complaint and one criminal information, are as follows:
United States v. Anna Steiner: The superseding indictment charges Anna Steiner, a licensed anesthesiologist, was charged for her role in an alleged $17.4 million health care fraud scheme related to the payment of kickbacks in return for prescribing and ordering durable medical equipment, prescription drugs and diagnostic tests that were neither medically necessary nor resulted from an examination by or consultation with a physician. Steiner was charged with conspiracy to commit health care fraud and health care fraud in a superseding indictment filed on September 19, 2019. The case is being prosecuted by Department of Justice Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section.
United States v. Denny Martin: Denny Martin, a licensed neurologist who was the sole owner of AM PM Medical P.C., was charged with health care fraud for his role in a scheme to falsely bill Medicare for treatments that were never performed. Between 2015 and 2019, AM PM Medical P.C. submitted more than 3,000 in fraudulent claims for home health and podiatry visits to the Medicare program. Martin was arrested this morning and arraigned before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The case is being prosecuted by Assistant United States Attorney William P. Campos of the U.S. Attorney’s Office for the Eastern District of New York.
United States v. Andrew Barrett and Phyllis Pincus: Andrew Barrett, a pharmacist who had been previously convicted of healthcare fraud in 2016 and excluded from the Medicare and Medicaid programs, and Phyllis Pincus, the sole proprietor of two New York-based pharmacies, were indicted on September 24, 2019 for health care fraud, false claims and conspiracy to defraud the United States by submitting fraudulent claims to Medicare and Medicaid for medications that were not actually dispensed to patients. The case is being prosecuted by Assistant United States Attorney William P. Campos of the U.S. Attorney’s Office for the Eastern District of New York.
United States v. Kevin McMahon: Kevin McMahon, a registered nurse, was charged with possession of fentanyl, a Schedule II controlled substance. The charge stem from McMahon’s theft of a synthetic opioid fentanyl while employed at Nassau University Medical Center. McMahon was arraigned and pleaded guilty to a criminal information at the federal courthouse in Central Islip on September 25, 2019. The case is being prosecuted by Assistant United States Attorney Erin E. Argo of the U.S. Attorney’s Office for the Eastern District of New York.
The Eastern District of New York’s Healthcare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section, was created in 2009 and since its inception has charged well over 100 defendants, many of which were medical professionals.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty.
The Defendants:
DR. ANNA STEINER
Age: 63
Valatie, New York
E.D.N.Y. Docket No. 19-CR-295 (ILG)DR. DENNY MARTIN
Age: 46
New York, New York
E.D.N.Y. Docket No. 19-MJ-847ANDREW BARRETT
Age: 60
New City, New YorkE.D.N.Y. Docket No. 19-CR-436 (RJD)PHYLLIS PINCUS
Age: 58
New City, New York
E.D.N.Y. Docket No. 19-CR-0436 (RJD)KEVIN McMAHON
Age: 31
Seaford, New York
E.D.N.Y. Docket No. 19-CR-422 (ARL)Final defendant pleads guilty in Vegas-to-Columbus oxy ring, marking 22nd convictionRead the Press Release
COLUMBUS, Ohio – The 22nd and final defendant related to a Las Vegas-to-Columbus oxycodone distribution ring pleaded guilty in U.S. District Court today.
Edward Vaughns, 56, of Las Vegas, pleaded guilty to conspiring to possess with intent to distribute oxycodone and to launder money.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), Mona Passmore, acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, and Ohio Attorney General Dave Yost announced the plea entered into today before U.S. District Judge Edmund A. Sargus Jr.
According to court documents, defendants had been diverting oxycodone pills from the Las Vegas area to Columbus since at least 2012. Law enforcement officials seized numerous U.S. mail packages containing thousands of oxycodone pills and large amounts of cash being sent between Las Vegas and Columbus in connection with this drug trafficking organization.
The co-conspirators also engaged in financial transactions – making use of wire transfers, bank accounts, and prepaid debit cards – involving hundreds of thousands of dollars to conceal the nature and source of their profits and promote the drug trafficking organization’s activities. Money was used to purchase airline tickets, pay for hotel rooms and cover other costs associated with bringing the drugs to Columbus for distribution.
According to Vaughns’ plea, specifically, Vaughn was responsible for the distribution of at least 15,000 oxycodone pills.
Others charged in the related cases include: Marcus Pryor, Marquis Pryor, Maisha Caples, Michael Griffin, James Stone, David Pryor, Sukita Williams, Danny Williams, Russell Briggs, Richard Briggs, Tiana Castro, Dontonyo Courtney, Larissa Harris-Patterson, Joquline Harris, Alfred James, Rashod Todd, Raynard Miller, Arthur Pirtle, Thomas Lane, Gary Washington and Jerry Campbell.
U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS Criminal Investigation, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorneys Michael J. Hunter and Brian J. Martinez, who are prosecuting the cases.
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Federal, state & local law enforcement to announce significant law enforcement action involving 19 charged defendantsRead the Press Release
DAYTON – Today the government has unsealed charges against 19 individuals in an alleged narcotics conspiracy. Arrests were made this morning.
The briefing will be held:
TODAY: THURSDAY, SEPTEMBER 26, 2019
WHEN: 1:30 P.M.
WHERE: Walter H. Rice Federal Building & U.S. Courthouse
Front Steps
200 West 2nd Street
Dayton, Ohio 45402
WHO: U.S. Attorney Benjamin C. Glassman
Mauricio Jimenez, assistant special agent in charge, DEA
ID and media credentials will be required.
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Federal Officials Close Civil Rights Investigation into the Fatal Shooting of Stephon ClarkRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott and Special Agent-in-Charge Sean Ragan of the FBI’s Sacramento Division today announced that the independent federal review into the fatal shooting of Stephon Clark on March 18, 2018, found insufficient evidence to support federal criminal civil rights charges against the Sacramento Police Department officers involved. Officials from the U.S. Attorney’s Office and the FBI met today with Clark’s family to inform them of this decision.
After a careful and thorough review into the facts surrounding the shooting, federal investigators and prosecutors determined that there is insufficient evidence to prove beyond a reasonable doubt a violation of the federal statute. Accordingly, the investigation into this incident has been closed.
The U.S. Attorney’s Office, the FBI, and career prosecutors in the Civil Rights Division conducted a comprehensive, independent review of the events surrounding the shooting that resulted in Clark’s death. Federal authorities also reviewed all of the evidence generated by the Sacramento Police Department, the Sacramento County District Attorney’s Office, and the California Department of Justice in earlier investigations, including witness statements, audio and video recordings, dispatch records, police reports, and autopsy reports, and gathered additional evidence pertinent to the federal investigation.
The federal investigation sought to determine whether the evidence of the events that led to Clark’s death was sufficient to prove beyond a reasonable doubt that any officer’s actions violated federal criminal civil rights statutes. Under the applicable federal law, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer’s use of force was objectively unreasonable in light of the facts and circumstances at the time and that the officer acted willfully, with the purpose of using objectively unreasonable force.
The Department of Justice is committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Returns Guilty Verdict in Illegal Firearm, Methamphetamine TrialRead the Press Release
Columbus—A convicted felon with an extensive criminal history in both Alabama and Georgia was found guilty late Tuesday on illegal gun and drug charges, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. After deliberating approximately two hours, a citizen jury found Freddie Clark, 42, of Phenix City, AL guilty on all three charges, including possession of a firearm by a convicted felon, possession of methamphetamine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. U.S. District Judge Clay Land presided over the federal jury trial in Columbus beginning on Monday, September 23, 2019. Mr. Clark faces a combined maximum 512 months imprisonment for his crimes and will be sentenced on February 4, 2020. There is no parole in the federal system.
“The penalties for serial criminals in the Middle District of Georgia are severe. Repeat, dangerous offenders will not be tolerated by law-abiding citizens or law enforcement,” said Charlie Peeler, the U.S. Attorney. “It is a priority of this office to target and prosecute violent offenders who harm the safety of our communities. I want to thank the Columbus Police Department and the ATF for their work in this case.”
Mr. Clark was pulled over by a Columbus Police Department officer for extreme erratic driving March 14, 2018 at 3:30 a.m. on Buena Vista Road. Mr. Clark did not exit the car as directed, and upon approaching the vehicle, the arresting officer saw a pistol on Mr. Clark’s lap. The officer was able to remove the loaded Ruger .380 from Mr. Clark and the defendant was taken into custody. Officers found various drugs and 85 grams of methamphetamine on Mr. Clark and inside his vehicle. Mr. Clark has a total of eight prior felony convictions in Alabama and Georgia state courts.
This case was prosecuted 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.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Federal Jury Convicts Sex Trafficker of Using Crack Cocaine and Heroin to Coerce Victims into ProstitutionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Valentino Shine, Sr., 51, of Buffalo, NY, of five counts of sex trafficking, and one count each of sex trafficking conspiracy, narcotics conspiracy, using and maintaining a drug-involved premises, and possession with intent to distribute crack cocaine. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum penalty of life, and a $20,000,000 fine.
Assistant U.S. Attorneys Elizabeth R. Moellering and Meghan A. Tokash, who prosecuted the case, with support from the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit, stated that the defendant ran a sex trafficking operation out of his Humboldt Parkway residence in Buffalo. Shine preyed upon and exploited women who were vulnerable and addicted to drugs, coercing them to engage in commercial sex acts. The defendant provided or withheld drugs to coerce the victims to engage in commercial sex acts.
According to evidence presented by the government at trial, Shine was recovering from a cocaine addiction and knew the power that drug addiction could have over someone. The defendant used this as a weapon to target vulnerable women. Shine’s motto was “BABI PAE” – Break a (expletive) Incorporated; Pimping Ain’t Easy.
At the urging of the defendant, victims advertised on backpage.com. After performing sex acts for money, they would give that money to Shine. Money was important to Shine. When signing his name, the defendant wrote CREAM: “Cash Rules Everything Around Me.”
In addition to using drugs to control his victims, Shine also used physical beatings, manipulation, and brainwashing.
Three women who worked for the defendant died of drug overdoses as a result of their addictions.
“Let this verdict serve as a warning to predators like Valentino Shine who think that they can exploit women and girls for profit and sexual servitude,” stated U.S. Attorney Kennedy. “My Office simply will not permit human traffickers—the modern day equivalent of slave owners—to exist in our community. I find it particularly fitting that defendant’s reign of terror, which involved at least nine female victims, was officially ended by two outstanding AUSAs in our Office—both of whom happen to be female—Meghan Tokash and Elizabeth Moellering. Sometimes the results achieved at trial seem particularly just—this was one of those trials.”
“The guilty verdict in this case makes it clear that Mr. Shine preyed on the vulnerable as do most traffickers,” said Kevin Kelly, HSI Buffalo, Special Agent-in-Charge. “So many of our investigations begin with identifying victims, which is why a key component of our work involves HSI's victim-centered approach to these cases. It’s critical that we work closely with survivors, helping them obtain necessary support services so they are able to move on with their lives and potentially participate in the prosecution of their trafficker, which was key in the case against Mr. Shine.”
The verdict is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Human Trafficking Task Force of the Western District of New York.
Sentencing is scheduled for December 12, 2019, at 3:30 p.m. before Chief U.S. District Judge Frank P. Geraci, Jr., who presided over the trial of the case.
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Federal Jury Convicts Bullhead Man of Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that Daniel Brown, age 29, of Bullhead, South Dakota, was found guilty of involuntary manslaughter as a result of a federal jury trial in Aberdeen, South Dakota. United States District Judge Charles B. Kornmann presided over the trial proceedings.
The charges carry a maximum penalty of 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
According to the evidence presented at trial, on or about September 8, 2018, in Bullhead, South Dakota, Daniel Brown unlawfully killed Dionne Brown Otter by operating a motor vehicle recklessly while under the influence of alcohol and a controlled substance. Brown had a blood alcohol content of .22 percent and methamphetamine in his system. While driving up an unmaintained steep hill that had a walking path, Brown lost control of his crew cab truck, causing it to roll down the hill. As a result of the roll, two people were ejected, including Dionne Brown Otter. The second individual also sustained serious injuries.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Office of Justice Services, and the South Dakota Highway Patrol. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
A presentence investigation was ordered and a sentencing date was set for December 16, 2019. The defendant was remanded to the custody of the U.S. Marshals Service.
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Federal Health Care Fraud Takedown in Northeastern U.S. Results in Charges Against 48 IndividualsRead the Press Release
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, Pennsylavia, 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.