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Thursday 26 September 2019
Federal Health Care Fraud Takedown in Northeastern U.S. Results in 54 Defendants Charged and ConvictedRead the Press Release
NEWARK, N.J. – 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 losses and the distribution of over 3.25 million pills of opioids in “pill mill” clinics and doctors’ offices. The takedown includes new charges and convictions by guilty plea against 54 defendants for their roles in submitting nearly $800 million in fraudulent claims made to federal payers, including 15 doctors or medical professionals, and 24 defendants are charged for their roles in diverting opioids.
The cases prosecuted by this Office in connection with the takedown reflect all of the different facets of our health care and opioids work. Doctors, marketing executives, pharmacists, and the owners and operators of a genetic testing laboratory have been charged with, or have plead guilty to a range of criminal conduct, including: the criminal prescription of highly-addictive opioid pills to patients with no medical need, the paying of kickbacks and other fraud related to unnecessary genetic testing, fraud and abuse in the compounded medicines business, and other crimes that victimize federal health care programs like Medicare and Medicaid, as well as patients across New Jersey who need medical care.
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 Investigation, DOD-DCIS, FDA-OIG, the Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the operation.
The charges 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 MFSF, 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, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Rooting out and prosecuting abuses within our health care system is a top priority for my office,” Craig Carpenito, U.S. Attorney for the District of New Jersey, said. “In New Jersey, these illegal activities run the gamut from over-prescribing dangerous opioids, to running pharmacies improperly, to mis-prescribing unnecessary medications, to tricking patients – often the elderly or vulnerable – into seeking expensive genetic testing or compounded prescriptions they don’t need. Today’s message should be clear: We are dedicated to combatting all forms of illegal activity in the health care arena. If you put patients’ health at risk with criminal intent, you will be dealt with as a criminal.”
“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.”
“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,” Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office said. “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.”
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Among those charged in the District of New Jersey are the following:
Two Doctors Mis-Prescribing Opioids
• Evangelos Megariotis, 66, of Clifton, New Jersey, an orthopedic surgeon who owns and operates Clifton Orthopedic Associates in Clifton, New Jersey. Megariotis was charged by complaint with prescribed large amounts of controlled substances, such as oxycodone, Percocet, Xanax, and promethazine with codeine outside the usual course of medical practice and without a legitimate purpose. He wrote these allegedly illegal prescriptions to patients he knew were abusing opioids. In two years, Megariotis allegedly prescribed more than 1.4 million tablets of oxycodone and over 450 gallons of promethazine with codeine cough syrup to his patients. The Government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division.
• Joseph Santiamo, 64, of Staten Island, New York, a doctor who specialized in geriatric care, was charged by complaint with prescribing powerful opioids to patients he knew were addicted. According to the complaint, Santiamo also solicited sexual favors from some patients in return for writing them an opioid prescription. In a recorded statement to agents, Santiamo admitted he knew his prescriptions were being abused, but kept writing them anyway. Just twenty of Santiamo’s patients allegedly received more than 100,000 oxycodone pills for no legitimate medical purpose. The Government is represented by Assistant U.S. Attorney Brian Urbano of the Criminal Division.
Ex-Sales Rep. Committing Compounding Fraud:
• Kent Courtheyn, of Kent, Ohio, a former medical device sales representative, indicted for his alleged role in marketing compounded (i.e. customized) medicines to patients who didn’t need them. Courtheyn allegedly steered prescriptions for these expensive compounded medications to his conspirators, and took a cut for his role. The indictment alleges that the scheme caused at least $10 million in losses to participating health care plans, at least $3.5 million of which was paid by TRICARE, the federal program that pays for health care services for veterans. The Government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division.
PrimeAid Pharmacy Indictment:• Yana Shtindler, 44, and Samuel “Sam” Khaimov, 47, both of Glen Head, New York; Alex Fleyshmakher, 33, of Morganville, New Jersey; and Ruben Sevumyants, 36, of Marlboro, New Jersey, charged by indictment. From 2009 through August 2017, Prime Aid Pharmacies (located in Union City, New Jersey and Bronx, New York) engaged in a slew of fraudulent activities including: (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 Government is represented by Assistant U.S. Attorneys Joshua L. Haber and Jason Gould of the Criminal Division.
Empire Pharmacy Criminal Complaint:
• Eduard “Eddy” Shtindler, 36, of Paramus, New Jersey, charged by complaint with conspiracy to commit health care fraud and conspiracy to pay illegal kickbacks to a doctor. From 2012 through at least 2017, Shtindler owned and operated Empire Pharmacy in West New York, New Jersey. For most of that time, Shtindler allegedly paid 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 Government is represented by Assistant U.S. Attorney Joshua L. Haber of the Criminal Division.
Ark Labs Genetic Testing Indictment:
• Dr. Matthew S. Ellis, 53, of Gainesville, Florida; Edward B. Kostishion, 59, of Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania; and Jeffrey Tamulski, 46, of Tampa, Florida. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health, Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey, and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 million in bribes. The Government is represented by Assistant U.S. Attorney Bernard Cooney of the Criminal Division.
Doctor Pleads Guilty in Compounding Case
• Bernard Ogon M.D., 46, of Burlington, New Jersey, pleaded guilty on September 25, 2019 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 Government is represented by Assistant U.S. Attorney Jason Gould of the Criminal Division.
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.
U.S. Attorney Carpenito also thanked special investigators from his office for their work on these cases.
A complaint, information or indictment is merely an accusation, and all defendants are presumed innocent until and until proven guilty.
Federal Government Employee at Camp Mabry in Austin Charged with Theft of over $1 Million in Military EquipmentRead the Press Release
In Austin today, a federal government employee at Camp Mabry surrendered himself to federal authorities on charges that he allegedly stole and unlawfully sold more than $1 million worth of items from the military installation in Austin, announced U.S. Attorney John F. Bash.
A federal criminal complaint filed today charges 35–year-old Joseph Mora with one count of theft of government property and one count of conspiracy to commit fraud against the U.S. The complaint states that Mora has served as a Program Analyst at the U.S. Property and Fiscal Office warehouse since 2013. The complaint alleges that Mora conspired to remove large quantities of sensitive military grade equipment, including rifle scopes, infrared laser aiming devices and thermal night vision goggles, from the facility without authorization. He later sold many of the stolen items on eBay and by other means.
On Tuesday, federal agents executed a search warrant at the defendant’s residence and recovered dozens of items believed to be stolen from Camp Mabry, to include pelican cases containing aiming lights, a pallet of night vision goggles and tripods.
Upon conviction, Mora faces up to ten years in federal prison on the theft charge and up to 20 years in federal prison on the fraud charge. He was released on a $10,000 bond following his initial appearance today in U.S. Magistrate Court in Austin.
Agents with the Defense Criminal Investigative Service (DCIS), Homeland Security Investigations (HSI), U.S. Army Criminal Investigative Command (Army CIC), U.S. Postal Inspection Service (USPIS) and the Texas Rangers are investigating this case. Assistant U.S. Attorneys Michael Galdo and Karthik Srinivasan are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
Federal Court Terminates Agreement After the City of Providence Transforms Services for Students with Disabilities at Providence Public High SchoolRead the Press Release
The Justice Department announced today that the U.S. District Court for the District of Rhode Island terminated the Interim Settlement Agreement (ISA), with the City of Providence (City), in U.S. v. Rhode Island and City of Providence. The independent Court Monitor has found that the City has substantially complied with the ISA’s requirements. Because of the City’s commitment to complying with the ISA, the City now provides transitional services and supports to students with intellectual and developmental disabilities (IDD) at Mount Pleasant High School, including community experiences, to enable those students to prepare for and obtain competitive jobs in businesses in the community.
“The Interim Settlement Agreement changed lives,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “Mount Pleasant students are now able to experience employment and other activities in integrated settings, thereby enabling them to prepare for and obtain competitive jobs in the community. We commend the City for its efforts in achieving compliance with the ISA.”
The ISA was the first in the nation to address the rights of individuals with disabilities to receive integrated employment services in the broader community instead of in segregated workshops exclusively for individuals with disabilities. Prior to the ISA, students with IDD at Mount Pleasant spent school days bagging, labeling, and collating jewelry and similar tasks in an in-school sheltered workshop, apart from their classmates without disabilities. Upon exiting school, most of these students did similar work for sub-minimum wage at a sheltered workshop near the school, despite their ability and willingness to work in integrated settings. Now, the students are integrated with their classmates without disabilities and receive services to prepare them for integrated work in careers that match their interests and abilities, in accordance with the ADA.
The papers related to the ISA, including the findings letter, agreement, Court Monitor’s reports, and papers related to the termination as to the City are available here. The ISA still remains in effect as to the State of Rhode Island. The papers related to the State, including the agreements signed by the State and Court Monitor’s reports, are available here. For more information about the ADA, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Fayetteville Man Sentenced for Coercion and Enticement of a Minor to Engage in Sexual ActivityRead 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 FRANKIE LEE JONES, 34, of Fayetteville, North Carolina to 180 months imprisonment, followed by 15 years of supervised release.
JONES was named in an Indictment filed on July 25, 2018 charging him with multiple counts of coercion and enticement of a minor to produce visual depictions of sexually explicit conduct and to engage in sexual activity. On July 29, 2019, JONES pled guilty to one count of coercing and enticing a minor to engage in sexual activity.
Beginning in late 2016 JONES began communicating with a 13 year child through Kik, a mobile messaging and social media application. The two began an online relationship that extended from internet messaging to texting and speaking on the phone. Law enforcement recovered nearly 7,000 text messages between the victim and JONES. The messages between the two revealed a plan to move in together, get married and continue their relationship. The messages were, at times, sexually explicit in nature. JONES indicated that he knew the child was 13 but said he loved the child and wanted to marry the child. JONES frequently asked for sexually explicit photos and videos of the child.
In March 2017, JONES picked up the child from the Raleigh area and took the child to a hotel in Fayetteville. During the weekend JONES engaged in sexual activity with the child multiple times and took sexually explicit photographs of the child.
After the child disclosed the relationship and sexual activity to family members, law enforcement spoke to JONES. He admitted to sexual activity with the child but denied knowing the child’s true age despite the text messages that showed the contrary.
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 Homeland Security and the Cumberland County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Erin Blondel, Charity Wilson and Jake D. Pugh.
Erie Man Sentenced to Prison in Project Safe Neighborhoods ProsecutionRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 14 months in jail and 18 months supervised release on his conviction of violating federal firearms laws and making a false statement in an application for a United States passport, United States Attorney Scott W. Brady announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Amaad Maliek Ali, 48.
According to information presented to the court, on April 7, 2018, Ali falsified his application for the purchase of a firearm and lied about his prior felony convictions. A National Instant Criminal Background Check was made and Ali was rejected for the firearm purchase because of his prior criminal record.
In addition, on April 18, 2017, Ali made a false statement on a United States passport application by stating that his Social Security number was 000-00-0000.
Project Safe Neighborhood (PSN) is the centerpiece of the Department of Justice’s violent crime reductions 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 prevent and reentry programs for lasting reductions in crime.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of State’s Diplomatic Security Service, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Ali.
Drug Dealer Who Sold Heroin That Killed 18-Year-Old Sentenced to 28+ YearsRead the Press Release
An Arlington drug dealer who sold the heroin that killed an 18-year-old Southlake girl was sentenced today to more than 28 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Michael Dasean Robinson, 33, pleaded guilty on April 12 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 340 months’ imprisonment by Senior U.S. District Judge John H. McBryde Thursday.
“This woman’s untimely death was tragic – and preventable,” said U.S. Attorney Nealy Cox. “Even as we mourn the many lives lost in the opioid epidemic, we are determined to hold those who peddle these deadly drugs accountable.”
“The sentence sends a message to drug dealers,” said Special Agent in Charge of the Drug Enforcement Administration’s Dallas Division Clyde E. Shelley, Jr. “Drug dealers will be will be held accountable for their customer’s overdose deaths”.
Evidence showed that Mr. Robinson – who went by the street name “Tight” – sold $40 worth of heroin to Reed Bartosh on Nov. 30, 2017.
Mr. Bartosh told police officers that he and his girlfriend, 18-year-old Brianna Flood, used the heroin together that same night and then fell asleep. The next morning, he told officers, he awoke to find her unresponsive.
An autopsy later revealed Ms. Flood had died of a heroin overdose. At today’s sentencing hearing, Judge McBryde found that the heroin sold by Mr. Robinson had caused her death – which ultimately led to Mr. Bartosh’s subsequent suicide.
According to a criminal complaint filed in January 2019, after the girl’s tragic death, undercover officers posing as Mr. Robinson’s clients bought heroin and cocaine from him and an associate:
“Can you do 140 b and 50 g?,” an undercover officer texted Mr. Robinson, at a number provided by Mr. Bartosh, referring to heroin and cocaine.
“Yeah,” Mr. Robinson responded. “Hit me up.”
At Mr. Robinson’s direction, his associate delivered plastic baggies containing heroin (commonly referred to as “boy,” or “b”) and cocaine (commonly referred to as “girl,” or “g”) to an undercover officer parked in the driveway of a Dallas residence in exchange for cash.
During a traffic stop a few days later, law enforcement found cocaine, heroin, and marijuana in Mr. Robinson’s vehicle. Multiple sources of information confirmed to law enforcement that Mr. Robinson was their regular drug dealer. A forensic analysis of his phone suggested he had more than 200 customers.
The Drug Enforcement Administration, the Fort Worth Police Department’s Narcotics Division, the Tarrant County Medical Examiner’s Office, and the Southlake Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Dominican National Sentenced for Social Security Fraud and Identity TheftRead the Press Release
Boston – A Dominican national was sentenced yesterday in federal court in Boston for Social Security fraud and aggravated identity theft.
Frank Alejandro Brea Sabala, 37, a Dominican national who resided in Methuen, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years and one day in prison and three years of supervised release. In June 2019, Brea Sabala pleaded guilty to one count of misuse of a Social Security number and one count of aggravated identity theft.
On the morning of Aug. 2, 2017, Brea Sabala submitted a handwritten application for a Massachusetts Motorcycle Permit at the Lawrence Registry of Motor Vehicles. On the application, Brea Sabala represented the name, date of birth and Social Security number of an individual from Puerto Rico as his own, and checked off that he was a United States citizen. Brea Sabala had previously obtained a Massachusetts license in the victim’s name.
On Oct. 3, 2018, a search of Brea Sabala’s residence resulted in the recovery of expired Massachusetts licenses that were in the victim’s name and date of birth but contained Brea Sabala’s photograph, as well as a Social Security card and birth certificate in the name of the victim.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigation in Boston; and Methuen Police Chief Joseph E. Solomon. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
District Court Issues Order Directing OneCoin-Related Parties to Show Cause Regarding Any Claimed Attorney-Client PrivilegeRead the Press Release
On March 7, 2019, a five-count Indictment, S4 17 Cr. 630 (ER), was unsealed charging Ruja Ignatova with wire fraud, securities fraud, and money laundering offenses in connection with an alleged international pyramid scheme that involved the marketing of a purported cryptocurrency called “OneCoin.” On May 28, 2019, co-defendant Konstantin Ignatov entered a not guilty plea to a one-count Information, S7 17 Cr. 630 (ER), charging him with conspiracy to commit wire fraud in connection with the OneCoin scheme. Co-defendant Mark S. Scott has been charged in a one-count Indictment, S6 17 Cr. 630 (ER), alleging that he conspired to launder proceeds of the OneCoin scheme; Scott’s case is presently scheduled for trial on November 4, 2019.
Yesterday, the District Court entered an Order in the case, directing a series of entities and individuals – namely, OneCoin Ltd., OnePayments Ltd., OneNetwork Services Ltd., OneAcademy, OneLife, RavenR, Ruja Ignatova, Frank Ricketts, Manon Hubenthal, Irina Dilkinska, International Marketing Services GmBH, International Marketing Services Pte, International Marketing Strategies Ltd., and B&N Consult EOOD (collectively, the “Affected Parties”) – to Show Cause why the Court should not enter an Order finding that any privilege the Affected Parties may have in communications with counsel falls within the crime-fraud exception to the attorney-client privilege, or has otherwise been waived for failure to assert or defend such privilege. The Order to Show Cause requires that the Affected Parties respond within 10 days of the entry of the Order, i.e., no later than October 7, 2019, due to intervening weekend days.
The District Court also unsealed a previously sealed Order dated July 23, 2019, regarding the application of the crime-fraud exception to certain materials in the case. Copies of yesterday’s Order to Show Cause and the July 23, 2019, Order are appended to this press release.
Department of Justice Announces Arrests in Pensacola-Based Dog Fighting Ring InvestigationRead the Press Release
Five individuals were arrested yesterday on a 44-count federal indictment charging violations of the dogfighting prohibitions of the federal Animal Welfare Act, and conspiracy to commit those violations.
Shane Patrick Sprague, 35, of Pensacola, Florida, Derek Jedidiah Golson, aka Derek Jedidiah Murray, 38, of Pensacola, Florida, Haley Cook Murph, 24, of Milton, Florida, David Lee Moser, 36, of Waynesboro, Tennessee, and James “Tommy” Peek, 67, of Milton, Florida were indicted a the case involving C Wood Kennels in Pensacola, Florida.
The indictment alleges that defendants Sprague and Golson operated C Wood Kennels, a dogfighting operation that arranged dogfights, allowed fighting dogs to attack “bait” animals, and trafficked in fighting dogs with defendant Moser and others outside of Florida, including through an underground dogfighting website. The indictment further alleges that defendant Peek acted as a source to supply fighting dogs to C Wood Kennels.
According to the indictment, defendant Murph’s role was that of a makeshift “veterinarian” for C Wood Kennels. Although Murph at no time possessed a veterinary license, she offered to and did perform veterinary and surgical procedures on fighting dogs so the kennel could avoid the scrutiny of a licensed veterinarian. The defendant also possessed veterinary equipment used to treat injured fighting dogs, including skin staplers, sutures, intravenous bags and lines, scalpels, and injectable animal steroids.
“As this case demonstrates, we are aggressively prosecuting dogfighters and those who support their inhumane criminal enterprises – including unscrupulous veterinarians or veterinary poseurs,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “We thank our federal and local law enforcement partners who made this operation possible.”
“Dogfighting is a blight on humanity, one that has no place in the Northern District of Florida or anywhere else,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida. “We will continue to work with federal and local law enforcement agencies to root out this barbaric blood sport, in Florida and beyond.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “Animal fighting is an investigative priority for USDA-OIG, and together with the Department of Justice we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
The federal Animal Welfare Act makes it a felony to sponsor or exhibit an animal in an animal fighting venture and to possess, train, sell, purchase, transport, deliver or receive an animal for purposes of having the animal participate in an animal fighting venture.
This matter continues to be investigated by the USDA-OIG. Department of Justice Trial Attorney Ethan Eddy and Assistant U.S. Attorney Ryan Love are prosecuting the case.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Announces Arrests in Pensacola-Based Dogfighting Ring InvestigationRead the Press Release
PENSACOLA, FLORIDA – Five individuals were arrested yesterday on a 44-count federal indictment
charging violations of the dogfighting prohibitions of the federal Animal Welfare Act, and
conspiracy to commit those violations. The arrests were announced by U.S. Attorney Lawrence Keefe
of the Northern District of Florida and Assistant Attorney General Jeffrey Bossert Clark for the
U.S. Department of Justice Environment and Natural Resources Division.Shane Patrick Sprague, 35, of Pensacola, Florida, Derek Jedidiah Golson, aka Derek Jedidiah Murray,
38, of Pensacola, Florida, Haley Cook Murph, 24, of Milton, Florida, David Lee Moser, 36, of
Waynesboro, Tennessee, and James “Tommy” Peek, 67, of Milton, Florida were indicted in the case
involving C Wood Kennels.The indictment alleges that defendants Sprague and Golson operated C Wood Kennels, a dogfighting
operation that arranged dogfights, allowed fighting dogs to attack “bait” animals, and trafficked
in fighting dogs with defendant Moser and others outside of Florida, including through an
underground dogfighting website. The indictment further alleges that defendant Peek acted as a
source to supply fighting dogs to C Wood Kennels.According to the indictment, defendant Murph’s role was that of a makeshift “veterinarian” for C
Wood Kennels. Although Murph at no time possessed a veterinary license, she offered to and did
perform veterinary and surgical procedures on fighting dogs so the kennel could avoid the scrutiny
of a licensed veterinarian. The defendant also possessed veterinary equipment used to treat injured
fighting dogs, including skin staplers, sutures, intravenous bags and lines, scalpels,
and injectable animal steroids.“Dogfighting is a blight on humanity, one that has no place in the Northern District of Florida or
anywhere else,” said U.S. Attorney Keefe. “We will continue to work with federal and local law
enforcement agencies to root out this barbaric blood sport, in Florida and beyond.”“As this case demonstrates, we are aggressively prosecuting dogfighters and those who support their
inhumane criminal enterprises – including unscrupulous veterinarians or veterinary poseurs,” said
Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and
Natural Resources Division. “We thank our federal and local law enforcement partners who made this
operation possible.”“The provisions of the Animal Welfare Act were designed to protect animals from being used in
illegal fighting ventures, which often entail other forms of criminal activity involving drugs,
firearms, and gambling,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of
Agriculture-Office of Inspector General. “Animal fighting is an investigative priority for
USDA-OIG, and together with the Department of Justice, we will work with our law enforcement
partners to investigate and assist in the criminal prosecution of those who participate in animal
fighting ventures.”The federal Animal Welfare Act makes it a felony to sponsor or exhibit an animal in an animal
fighting venture and to possess, train, sell, purchase, transport, deliver, or receive an animal
for purposes of having the animal participate in an animal fighting venture.This matter continues to be investigated by the U.S. Department of Agriculture, Office of the
Inspector General. Assistant United States Attorney Ryan Love and Department of Justice Trial
Attorney Ethan Eddy are prosecuting the case. If convicted, each defendant faces up to five years
in prison and a $250,000 fine per count.An indictment is merely an allegation by a grand jury that a defendant has committed a violation of
federal criminal law and is not evidence of guilt. All defendants are presumed innocent and
entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a
reasonable doubt at trial.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.Defendant sentenced for robbing eight businesses including seven Dollar Stores during a nine-day crime spreeRead the Press Release
ATLANTA - Wayne Patterson, who committed a string of eight armed robberies in the metro-Atlanta area, has been sentenced to federal prison.
“Patterson’s decision to rob these businesses at gunpoint placed employees’ and customers’ lives in danger,” said U.S. Attorney Byung J. “BJay” Pak. “Cooperation among federal and local law enforcement officers ended Patterson’s robbery spree and ensured the lengthy prison sentence he received.”
“Patterson terrorized employees and customers at seven different businesses he robbed in a nine day period in 2018 across three counties,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to our partnerships with six different local law enforcement agencies we were able to stop him before someone got hurt or killed. Hopefully the victims of those robberies can take some solace with this sentencing.”
“The Covington Police appreciates the diligence of the employee to stay calm, cooperate with the robber, get an accurate tag number, and give details of the crimes to the responding officers. This great effort allowed CPD to locate and arrest the suspect thus ending his criminal activity,” said Stacey L. Cotton, Chief of the Covington Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: Patterson robbed seven Family Dollar and Dollar General Stores in the metro-Atlanta area over nine days in July 2018. In each case, Patterson browsed in the store, selected an item to supposedly purchase, and then approached the cash register. Once at the register, Patterson brandished a handgun and demanded money, and then fled the store with whatever money the cashier gave him.
Approximately three weeks after committing the Family Dollar and Dollar General Store robberies, Patterson robbed a clothing store in Covington, Georgia, using the same tactic. On this occasion, however, an employee recorded the license plate of Patterson’s getaway car and provided that information to Covington Police who arrested Patterson shortly thereafter.
Wayne Patterson, 39, of Covington, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 20 years in prison to be followed by 5 years of supervised release. Patterson was convicted on June 19, 2019 after he pleaded guilty to eight counts of Hobbs Act robbery and two counts of brandishing a firearm during a crime of violence.
Assistant U.S. Attorney Bret R. Hobson prosecuted the case.
The Federal Bureau of Investigation, the Covington Police Department, the Clayton County Police Department, the Riverdale Police Department, the Cobb County Police Department, the Atlanta Police Department, and the Conyers Police Department investigated the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Crete Pet Food Industry Supplier Fined $100,000 for Clean Water Act ViolationRead the Press Release
United States Attorney Joe Kelly announced that United States District Court Judge Robert F. Rossiter, Jr. sentenced Crete Core Ingredients L.L.C. on September 26, 2019, to pay a fine in the amount of $100,000 following the company’s misdemeanor conviction for violating the federal Clean Water Act. Crete Core Ingredients., a Crete, Nebraska-based company, specializes in processing animal materials and byproducts for the pet food industry.
Investigation by the Environmental Protection Agency Criminal Investigation Division determined that on June 19, 2013, Crete Core Ingredients was issued a wastewater discharge permit by the Nebraska Department of Environmental Quality. The permit authorized the discharge of wastewater from the Crete Core Ingredients facility to the City of Crete’s publicly owned water treatment facility. The permit set forth limits on the amount of certain pollutants that were allowed to enter the water treatment facility. The permit further provided that in the event of a permit violation, Crete Core Ingredients was subject to penalties and sanctions as provided by the federal Clean Water Act.
On or about August 5, 2014, Crete Core Ingredients exceeded its wastewater discharge permit, thus violating the federal Clean Water Act. On August 5, 2014, wastewater flow data from Crete Core Ingredients to the City of Crete’s publicly owned water treatment facility showed a discharge of certain pollutants over twice the daily maximum that was permitted under the permit issued.
This case was investigated by the Environmental Protection Agency Criminal Investigation Division.
Cranston Man Sentenced to More Than 12 Years for Enticing Minors OnlineRead the Press Release
PROVIDENCE – Paul J. Stabile, 39, of Cranston, who used an online persona of “Cindi Mennillo,” a 16-year-old girl from Newport, to persuade numerous young boys between the ages of 13-15 to engage in explicit sexual activity in live stream videos over Facebook Messenger and Skype, was sentenced today to 151 months in federal prison.
The investigation that led to identifying Stabile as a person directing young teenage boys to participate in sexually explicit live-stream videos began in December 2017, when the mother of a 14 year-old boy in Nevada reported to the FBI that her son was the victim of an online enticement. The investigation uncovered chats between Stabile, pretending to be 16 year-old “Cindi Mennillo,” and the minor victim. During some of the conversations, Stabile directed the young teenager to send back live video streams of himself participating in sexually explicit acts. To deceive the minor victim, Stabile falsely claimed technical difficulties were preventing “Cindi” from reciprocating with live video. Instead Stabile sent the young teenager images, both pornographic and non-pornographic, of an athletic young female purported to be “Cindi.”
On November 20, 2018, a federal court-authorized search of Stabile’s residence resulted in the seizure of several computers and other digital media devices and the arrest of Stabile. Forensic audits of the devices resulted in the discovery of hundreds of images and videos of child pornography, including videos of dozens of young teenage boys performing a sex act in a similar manner to the Nevada-based minor victim. Also found were the images sent by “Cindi” to the minor victim in Nevada.
Stabile pleaded guilty on June 12, 2019, to inducement of a minor to engage in illicit sexual activity and possession of child pornography. At sentencing today, U.S. District Court Chief Judge William E. Smith sentenced Stabile to 151 months in federal prison to be followed by lifetime supervised release.
Stabile’s sentence is announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the FBI, with assistance from members of the Rhode Island State Police Internet Crimes Against Children Task Force, Warwick and Cranston Police, and the Washoe County, Nevada Sherriff’s Department.
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Columbus man sentenced to nearly 10 years in prison for robbing banks in Cleveland, Lakewood and EastlakeRead the Press Release
A Columbus man was sentenced to nearly 10 years in prison for robbing banks in Cleveland, Lakewood and Eastlake in February.
Andre Harris, 49, previously pleaded guilty to three counts of bank robbery. He was sentenced to 118 months in federal prison.
Harris robbed the Key Bank at 3601 Chester Ave. in Cleveland on February 8, the Fifth Third at 14800 Madison Ave. in Lakewood on February 11 and Chase Bank at 35400 Vine Street in Eastlake on February 15, according to court documents.
The FBI, Cleveland Division of Police, Lakewood Police Department and Eastlake Police Department investigated this case. Assistant U.S. Attorneys Margaret Kane and Ranya Elzein prosecuted the case.
Colombians Sentenced for Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that JHON ALBEIRO PINEDA JIMENEZ, age 37, and PEDRO ANTONIO JIMENEZ, age 65, both Colombians, were sentenced on September 25, 2019 after previously pleading guilty to conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride while upon the high seas on board a vessel subject to the jurisdiction of the United States, under Title 46, United States Code, Sections 70503(a)(1) and 70506(a) and (b), and Title 21, United States Code, Section 960(b)(1)(B)(ii).
According to court documents, PINEDA JIMENEZ and JIMENEZ were arrested by the U.S. Coast Guard while the two were aboard a small fishing vessel southwest of the Panama/Costa Rica border. Hidden aboard the vessel was over 113 kilograms of powder cocaine.
United States District Judge Martin L.C. Feldman sentenced PINEDA JIMENEZ, the captain of the vessel, to 78 months in prison followed by two years of supervised release. Judge Feldman sentenced JIMENEZ to 60 months in prison followed by two years of supervised release.
U.S. Attorney Strasser praised the work of the United States Coast Guard, the United States Department of Homeland Security, and United States Customs and Border Protection in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney Brandon S. Long.
Chenango County Man Sentenced to 78 Months on Child Pornography ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Brock Likens, age 34, of Greene, New York, was sentenced today to 78 months in prison for distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea, Likens admitted that he knowingly received and distributed child pornography over the internet using peer-to-peer file sharing software. An undercover law enforcement officer downloaded 87 child pornography video files from Likens’ computer that he had made available to share with others. A subsequent search of Likens’ house revealed that he possessed, on electronic devices, 31 video files and 24 image files that depicted child pornography. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Likens is released from prison, and ordered him to pay $6,000 in restitution. As a result of his conviction, Likens will be required to register as a sex offender upon his release from prison.
This case was investigated by the New York State Police Computer Crimes Unit, Colonie Police Department, and the FBI. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Cedar Rapids Man Who Carjacked a Teenager and Robbed a Store While Carrying a Gun Sentenced to over 18 Years in PrisonRead the Press Release
A Cedar Rapids man who carjacked an 18-year old woman at gunpoint and carried a loaded handgun during and in relation to the robbery of a Cedar Rapids cell phone store was sentenced in United States District Court in Cedar Rapids on September 25, 2019, to 222 months’ in federal prison.
Cedric Antonio Wright (a/k/a “Tony” or “Mitch”), age 22, from Cedar Rapids, Iowa, was convicted by a federal jury in November 2018 of four charges: carjacking; carrying and brandishing a firearm during and in relation to the carjacking; unlawful possession of a firearm as a felon and unlawful drug user; and carrying a firearm during and in relation to the October 23, 2017 robbery of a phone store in southwest Cedar Rapids. Wright had earlier pleaded guilty in the same case, on October 29, 2018, to one count of robbery and conspiracy to rob the phone store.
The evidence at trial showed that on October 22, 2017, Wright carjacked an 18 year-old Kirkwood Community College student who was returning to her apartment near Kirkwood after spending an evening with her parents. As the student parked her car outside her apartment, Wright approached and pointed a handgun at her head while demanding she give Wright her car keys and cell phone. The student later identified a photo of Wright that appeared online and identified Wright from a group of photos at the Cedar Rapids Police Department.
Trial evidence showed that on October 23, 2017, Derrick Ford agreed to give Wright and Gage Rupp a ride in his minivan from southeast Cedar Rapids to an apartment complex on the west side of Cedar Rapids, where Wright claimed the group could transfer into the stolen car. After transferring into the stolen vehicle, the group drove to a parking lot adjacent to the strip mall where the phone store is located. Wright and Rupp then entered the store and demanded the clerk let them into the room where the store inventory was located. The clerk complied and testified at trial he did so because the robbers entered the store aggressively and “I felt in fear of my life.”
Wright and Rupp returned to the waiting car with more than $1,000 in cash and about $40,000 in cell phones and other electronic devices they had stolen from the store. One of the stolen devices was a tracker that alerted police of the robbery. Police responded to the tracking device within a few minutes and were able to quickly apprehend Wright, Rupp, and Ford.
Information at the sentencing hearing showed that Wright had an extensive criminal history, even at his relatively young age, including a prior aggravated robbery conviction and numerous other offenses. The government also presented evidence that in the months preceding the robbery, Wright had been engaged in a financial fraud scheme, whereby Wright agreed to pay bills for others, in exchange for them paying him half of the cost of the bill being paid. Wright then apparently paid the bills using a fraudulently obtained credit card.
Chief United States District Court Judge Leonard T. Strand noted that Wright’s crimes in this case were extremely violent and had been committed on back-to-back evenings, something that “stood out” from others. Further, the nature and circumstance of the offenses were “frankly, disgusting” according to the judge.
Wright was ordered to serve 222 months’ in prison, or 18 and a half years, to be followed by five years of supervision upon release from imprisonment. Wright was also ordered to pay $600 in special assessments. Wright remains in custody of the United States Marshal pending designation to a federal prison.
Rupp was sentenced on August 22, 2019, to serve twelve years’ imprisonment in connection with the same case. Ford was sentenced on January 18, 2019, to serve 20 months’ imprisonment following his plea of guilty to one count of aiding and abetting the phone store robbery.
The case was prosecuted by Assistant United States Attorneys Richard Murphy and Emily Nydle and was investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl .
The case file number is 18-CR-0015.
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Cedar Rapids Man Sentenced to 32 Years in Federal Prison for Sexually Exploiting a ChildRead the Press Release
A man who sexually exploited a 14-year-old girl, enticed her to engage in prostitution, and received child pornography was sentenced today to 32 years in federal prison.
Kevin Herring, age 30, of Cedar Rapids, Iowa, received the sentence after a September 28, 2018, guilty plea to one count of sexual exploitation of a child and one count of receipt of child pornography. Evidence at sentencing showed that, in January 2018, Herring was at a halfway house in Cedar Rapids following his federal prison sentence for being a felon and domestic abuser in possession of a firearm. While on a pass from the halfway house, he met the victim, a runaway 14‑year-old girl. Herring persuaded, induced, and enticed the victim to engage in prostitution and to send him sexually explicit images of herself. Herring asked the victim if she loved him and told her she could live with him after he left the halfway house.
Herring was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Herring was sentenced to 384 months’ imprisonment in this case and an additional 24 months’ imprisonment for a supervised release violation in a previous case, to be served consecutively. A special assessment of $200 was imposed, Herring was ordered to pay $111,654 in victim restitution, and he also must serve a seven-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
“Kevin Herring preyed upon the vulnerability of a 14-year-old runaway girl,” said United States Attorney Peter Deegan. “His repulsive conduct earned him every minute of the sentence he received. Our office has and will continue to hold accountable predators like Herring and prosecute them the full extent of the law.”
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the United States Marshals Service, the Waterloo Police Department, and Homeland Security Investigations.
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.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 18-58.
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California Man Sentenced to 14 Months in Federal Prison for His Role in Staged Accident SchemeRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Alexander Arceo, age 32, of South El Monte, California, was sentenced today after having pleaded guilty on June 17, 2019, to one count of conspiracy to commit healthcare fraud, one count of conspiracy to commit mail and wire fraud, and one count of mail fraud. Chief United States District Judge Thomas O. Rice sentenced Arceo to a 14-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Chief Judge Rice also ordered Arceo to pay restitution in the amount of $40,000 and forfeiture of $40,000.
According to information disclosed during court proceedings, between February 2016, and September 2016, Arceo was involved in a staged automobile accident in Rescue, California, and a staged stair fall accident in Las Vegas, Nevada, that defrauded two insurance companies out of $412,015. In the phony automobile accident, Arceo falsely claimed that he suffered serious bodily injuries, including loss of consciousness, as a result of the accident and obtained medical treatment over an eighty-four day period after the accident. In the phony stair fall accident, a co-conspirator used Arceo’s name when he falsely claimed to an insurance company that he suffered head and other injuries and needed medical treatment over a five-month period. When the defrauded insurance company issued settlement checks for bodily injury in Arceo’s name, he endorsed the checks thereby enabling co-conspirators to get the fraudulent proceeds.
United States Attorney Hyslop said, “Staged accident automobile insurance fraud is not a victimless crime. It affects every driver, as fraud causes insurance rates to increase. It also distracts police and medical personnel from responding to legitimate distress calls. I commend the FBI, IRS Criminal Investigation and U.S. Marshals Service for their outstanding work investigating this case.”
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, U.S. Marshals Service, U.S. Attorney’s Office for the Eastern District of Washington Criminal Healthcare Fraud Investigator, with assistance from the National Insurance Crime Bureau. This case was prosecuted by George J.C. Jacobs, III, and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Brooklyn Center Man Sentenced to 15 Years in Prison for Distributing Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JUSTIN THOMAS CHAPMAN, 38, to 180 months in prison for distributing child pornography. CHAPMAN, who pleaded guilty on May 8, 2019, was sentenced today before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to his guilty plea and documents filed in court, from March 2017 through August 10, 2018, CHAPMAN moderated and participated in online chatrooms where participants distributed, traded, and received child pornography. CHAPMAN and other participants also used the chatrooms to express their preferences in child pornography as well as discuss means to avoid detection by law enforcement. As a chatroom moderator, CHAPMAN communicated and enforced the “rules” of the chatrooms, including limits on content, the way child pornography could be shared, and a code of conduct for the chatroom members.
According to his guilty plea and documents filed in court, after the execution of a search warrant at CHAPMAN’S residence, CHAPMAN obstructed the FBI’s investigation by warning others in the chatrooms that the FBI was aware of their activities.
This case was the result of an investigation conducted by the FBI.
This case was prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Alexander D. Chiquoine.
Defendant Information:
JUSTIN THOMAS CHAPMAN, 38
Brooklyn Center, Minn.
Convicted:
- Distribution of child pornography, 1 count
Sentenced:
- 180 months in prison
- Ten years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Brockton Man Sentenced to Prison for Drug TraffickingRead the Press Release
BOSTON – A Brockton man was sentenced in federal court in Boston on Tuesday, Sept. 24, 2019, for trafficking in cocaine while on supervised release from an earlier federal drug trafficking conviction.
Angelo Pina, 28, was sentenced by U.S. District Court Judge Denise J. Casper to 15 months in prison for violating the terms of his supervised release. Judge Casper ordered that the sentence be served consecutive to a 21-month prison sentence imposed on Sept. 4, 2019, by Judge Nathaniel Gorton for conspiracy to distribute cocaine.
During an investigation in September and October 2018, federal agents intercepted telephone calls between Pina and Djuna Goncalves, which revealed that Goncalves worked with others to distribute large quantities of heroin, fentanyl, cocaine, crack cocaine, and marijuana from a base of operations at 12 Addison Avenue in Brockton.
During the intercepted calls, Pina ordered cocaine from Goncalves, and agents later observed Pina pick up cocaine from Goncalves the Brockton location. At the time, Pina was on supervised release from a 2017 federal conviction for distribution of fentanyl, and, in fact, first contacted Goncalves by phone while he was incarcerated.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Kerry A. Gilpin, Superintended of the Massachusetts State Police; Brockton Police Chief John Crowley; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Brockton Man Charged as Felon in Possession of FirearmRead the Press Release
BOSTON – A Brockton man was indicted yesterday in federal court in Boston with being a felon in possession of a firearm.
Clive McFarlane, 36, was indicted on one count of being a felon in possession of a firearm.
According to the charging documents, on Aug. 27, 2019, McFarlane was found in possession of a Rohm Gesellschaft .25 caliber revolver, one round of Remington .25 caliber ammunition and seven rounds of Cascade Cartridges .25 caliber ammunition. McFarlane had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail and therefore was prohibited from possessing firearms.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bridgeport Man Sentenced to 3 Years in Prison for Distributing Cocaine While on Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAMON HERNANDEZ, 61, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for distributing cocaine and violating the conditions of his supervised release from a prior federal conviction.
According court documents and statements made in court, an investigation led by the Drug Enforcement Administration revealed that Hernandez, who was on federal supervised release, was selling cocaine near a drug rehabilitation facility where he worked. Investigators conducted multiple controlled purchases of cocaine from Hernandez near that facility. On February 13, 2019, Hernandez was arrested after he possessed and intended to distribute more than 250 grams of cocaine.
Hernandez has been detained since his arrest. On June 17, 2019, he pleaded guilty to one count of possession with intent to distribute cocaine.
In March 2006, Hernandez was sentenced in Bridgeport federal court to 84 months of imprisonment and 10 years of supervised release for his role in a cocaine trafficking ring. He was released from federal prison in August 2011.
This matter was investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force and Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
Boston Man Sentenced for Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for being a felon in possession of a firearm and ammunition.
Mohamed Abdulaziz, 31, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and three years of supervised release. In June 2019, Abdulaziz pleaded guilty to one count of being a felon in possession of a firearm and ammunition after being charged in December 2018.
On Sept. 2, 2018, law enforcement officers stopped Abdulaziz on Route 24 South in West Bridgewater because he was driving erratically. After Abdulaziz failed several field sobriety tests, he was arrested for driving under the influence of alcohol. A routine inventory search of Abdulaziz’s vehicle before it was towed resulted in the recovery of a loaded revolver beneath the driver’s seat. Federal law prohibits Abdulaziz from possessing a firearm or ammunition because of a prior felony conviction.
United States Attorney Andrew E. Lelling and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Boston Man Charged with Illegally Possessing a Loaded HandgunRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for being a felon in possession of a firearm and ammunition.
Kerry Charlotin, 30, was indicted on one count of being a felon in possession of a firearm and ammunition. Charlotin was charged by criminal complaint in August 2019.
According to the charging documents, on May 1, 2019, officers were in the area of Blue Hill Avenue in Mattapan due to resident complaints of drug dealing and public drinking. It is alleged that when Charlotin, who was seen by the officers wearing a black backpack, observed the police presence, he ran. The officers pursued him, and when they caught up to him, a black backpack was in the air and landed on the roof of a building. Charlotin, no longer wearing a black backpack, continued running from the officers; he was eventually found hiding in a fenced in area in a backyard. When officers recovered the black backpack, they found, among other things, a loaded Glock 26, 9mm caliber Lugar semi-automatic pistol containing nine rounds of ammunition, one of those rounds was in the chamber.
Based on prior felony convictions, Charlotin is prohibited from possessing a firearm and ammunition under federal law.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting 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. PSN is 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.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boise Man Pleads Guilty to Multi-Million Dollar Counterfeit Cellphone SchemeRead the Press Release
BOISE – Artur Pupko, 28, of Boise, pleaded guilty in U.S. District Court to trafficking in counterfeit goods, U.S. Attorney Bart M. Davis and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today. Sentencing for Pupko has been set for December 17, 2019 before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
According to court records, Pupko conspired with others to operate a multi-million dollar scheme wherein they sold counterfeit cellphones and cellphone accessories on Amazon.com and eBay.com that were misrepresented as new and genuine Apple and Samsung products. Using at least six different corporate entities, Pupko smuggled counterfeit cellphones and cellphone accessories in bulk from manufacturers in Hong Kong and China, repackaged the products in the Treasure Valley, and then individually resold to consumers online as genuine and new in order to deceive customers. Also as part of his plea, Pupko admitted that, on three different occasions in October through December 2017, his company sold counterfeit Apple and/or Samsung products to law enforcement.
The charge of trafficking in counterfeit goods is punishable by up to ten years in prison, a 5 million dollar fine, and a term of supervised release of up to 3 years.
This case is the result of a coordinated investigation by the Federal Bureau of Investigation, Immigration and Customs Enforcement Homeland Security Investigations, Internal Revenue Service – Criminal Investigations, and United States Postal Inspection Service. Senior Trial Attorney Timothy Flowers with the Department of Justice’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Christian Nafzger and Katherine Horwitz prosecuted the case.
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Berks County Man Sentenced to 57 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Castro, age 29, of Reading, Pennsylvania, was sentenced on September 25, 2019, by U.S. District Court Judge Robert D. Mariani, to 57 months’ imprisonment for participating in a methamphetamine trafficking conspiracy that operated in Schuylkill and Berks Counties.
According to United States Attorney David J. Freed, Castro previously pleaded guilty to conspiracy to distribute more than 500 grams of methamphetamine between July 2016 and May 2017.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa 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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Berkeley County man admits to child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Alan Himelright, of Inwood, West Virginia, has admitted to distributing child pornography, U.S. Attorney Bill Powell announced.
Himelright, age 35, pled guilty to one count of “Distribution of Child Pornography.” Himelright admitted to distributing child pornography in October 2018 in Berkeley County.
Himelright faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The West Virginia State Police and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Australian Man Sentenced to Prison for Illegally Possessing Firearm in HawaiiRead the Press Release
AUSTRALIAN MAN SENTENCED TO PRISON
FOR ILLEGALLY POSSESSING FIREARM IN HAWAII
HONOLULU – Melvyn Gear, 59, a citizen of both Great Britain and Australia, was sentenced in federal court by Senior United States District Judge Susan Oki Mollway yesterday to 15 months of imprisonment for the illegal possession of a firearm. He was convicted of being an alien illegally in possession of a firearm after a jury trial on May 7-10, 2019.
Federal law prohibits a foreign national living in the United States pursuant to a non-immigrant visa from possessing any firearms. The evidence presented at trial demonstrated that Gear was in the United States on a non-immigrant visa in July 2017 when he possessed a rifle that had been shipped into the United States, which he had owned in Australia. He then lied about it when questioned by federal law enforcement officers.
U.S. Attorney Kenji M. Price said, "We will continue our efforts to prosecute anyone in Hawaii possessing a firearm in violation of federal law." At the sentencing hearing yesterday, Senior U.S. District Judge Mollway rejected a defense request for a probationary sentence and instead sentenced Gear to 15 months of imprisonment and noted that the conviction will likely result in deportation after Gear serves the term of imprisonment.
The case was investigated by the Department of Homeland Security (Homeland Security Investigations), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hawaii County Police Department. It was prosecuted by Assistant U.S. Attorney Marshall H. Silverberg and Special Assistant U.S. Attorney Kauanoe Jackson.
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Armed Meth Dealer Sentenced to Seven Years in Federal PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Ronald Clark Roddenberry, 52, of Little River, Alabama, was sentenced today in federal court on charges of conspiracy to distribute methamphetamine and felon in possession of a firearm. Roddenberry pled guilty to the charges in December of 2018.
United States District Court Judge Terry F. Moorer imposed a sentence of 84 months imprisonment on each count, to be served concurrently. The judge ordered that Roddenberry will undergo treatment for drug and alcohol abuse while incarcerated. The judge also ordered that Roddenberry will serve a five-year term of supervised release beginning upon his discharge from prison. During his supervision, Roddenberry will be subject to drug testing and further drug treatment. No fine was imposed, but Roddenberry was ordered to pay $200 in special assessments.
The case was investigated by the Bay Minette Police Department, the Baldwin County Sheriff’s Office, the Daphne Police Department, and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Armed Career Criminal Sentenced to 188 Months in Federal PrisonRead the Press Release
Jackson, TN –Marshawn Keith Burrus, 56, has been sentenced to 188 months in federal prison for being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on June 8, 2018, officers with the Jackson Police Department made contact with a suspicious vehicle in the parking lot of the Old Hickory Inn, Jackson, Tennessee. Officers observed in plain view a .40 caliber pistol in the empty back seat. An investigation of the firearm in the vehicle led officers with the Jackson-Madison County Metro Narcotics Unit to apply for and execute a search warrant of a motel room where they found Burrus along with other individuals, as well as, a 9mm pistol, cocaine, liquid codeine, methamphetamine and marijuana.
The defendant provided a statement to law enforcement that he had purchased both pistols from two separate individuals. Burrus had previously been convicted in state court of multiple felony offenses including four counts of robbery with a deadly weapon, aggravated burglary, sale of drugs, possession of a firearm by a convicted felon, evading arrest by motor vehicle, two counts of carjacking and another possession of a firearm by a convicted felon.
Burrusmade an appearance bond on the state case. On August 20, 2018, he was arrested again by Jackson Police Department for possession of a firearm as a convicted felon and other drug offenses. On August 23, 2018, the District Court issued an arrest warrant on a complaint for the June 8, 2018, incident and the defendant has remained in custody.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, the defendant was an armed career criminal who continued to possess firearms despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more armed career criminal removed from our streets. Gun Crime is Max Time."
On September 24, 2019, U.S. Chief District Court Judge, S. Thomas Anderson sentenced Burrus to 188 months imprisonment followed by 5 years supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jackson Police Department and Jackson-Madison County Metro Narcotics.
Assistant U.S. Attorney Hillary Parham prosecuted this case on behalf of the government.
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Allentown Man Sentenced to over 11 Years’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Birch, age 46, of Allentown, was sentenced on September 25, 2019, to 140 months’ imprisonment by Senior U.S. District Court Judge A. Richard Caputo, for his role in a heroin trafficking conspiracy that operated in Carbon and Lehigh Counties from December 2014 through September 2016.
According to United States Attorney David J. Freed, Birch previously admitted to obtaining heroin from suppliers in New York and Allentown and distributing the drug in Carbon County, Pennsylvania, and elsewhere. Birch was responsible for distributing between 100 grams and 400 grams of heroin, which is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.
Judge Caputo also ordered Birch to serve four years on supervised release following his prison sentence.
The case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, and Allentown Police Department. Assistant United States Attorney Francis P. Sempa 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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Alexandria Woman Sentenced to Federal Prison for Submitting False Student Aid Applications to Department of EducationRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Adaysha Tanner, 36, of Alexandria, Louisiana, was sentenced September 25 by Chief U.S. District Judge S. Maurice Hicks Jr., to 10 months in federal prison followed by three years of supervised release for financial aid fraud, in connection with a scheme where she filled out and submitted false student aid applications for more than $95,000. Judge Hicks also ordered Tanner to pay $106,744 in restitution to the U.S. Department of Education. Tanner pleaded guilty on May 14, 2019.
Beginning in the spring semester of 2013 through the spring semester of 2015, Tanner filled out financial aid applications through the Free Application for Federal Student Aid (FAFSA) and through Federal Direct Loans for four students, representing that they would be attending Bossier Parish Community College (BPCC), and listed her physical address and email address as the contact information. In reality, Tanner would take over the individual’s BPCC student accounts, attend classes, and do minimal coursework in order to keep financial aid flowing. In one instance in particular, Tanner enrolled a student in 18 classes over four semesters, of which she withdrew from seven. In total, Tanner enrolled four students in classes, many of which were identical to classes that Tanner was taking at BPCC. For the majority of these classes, they were eventually withdrawn or given a failing grade.
On each occasion, after BPCC applied grants and loans to the costs of tuition and other fees, Bank Mobile sent a bank card to Tanner’s address with the remaining funds. She took the cards and spent the money for her own personal expenses. As a result of Tanner’s fraudulent scheme, the U.S. Department of Education disbursed a total of $106,744 in Federal Direct Stafford loans and Federal Pell grants to BPCC during the time of the fraud.
The Department of Education, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
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Additional New Jersey Case Announced as Part of Federal Health Care Fraud Takedown in Northeastern U.S.Read the Press Release
NEWARK, N.J. – 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 losses and the distribution of over 3.25 million pills of opioids in “pill mill” clinics and doctors’ offices. The takedown includes new charges and convictions by guilty plea against 54 defendants for their roles in submitting nearly $800 million in fraudulent claims made to federal payers, including 15 doctors or medical professionals, and 24 defendants are charged for their roles in diverting opioids.
Attorney for the United States Rachael A. Honig said the cases prosecuted by this Office in connection with the takedown reflect all of the different facets of the office's health care and opioids work. Doctors, marketing executives, pharmacists, and the owners and operators of a genetic testing laboratory have been charged with, or have plead guilty to a range of criminal conduct, including: the criminal prescription of highly-addictive opioid pills to patients with no medical need, the paying of kickbacks and other fraud related to unnecessary genetic testing, fraud and abuse in the compounded medicines business, and other crimes that victimize federal health care programs like Medicare and Medicaid, as well as patients across New Jersey who need medical care.
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 Investigation, DOD-DCIS, FDA-OIG, the Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the operation.
The charges 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 MFSF, 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, 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.”
“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,” Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office said. “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.”
Among those charged in the District of New Jersey are the following:
- 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, IRS-CI and special agents of the U.S. Attorney's Office. The case is being prosecuted by Assistant U.S. Attorneys J. Stephen Ferketic and Sean Sherman and of the District of New Jersey.
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.
A complaint, information or indictment is merely an accusation, and all defendants are presumed innocent until and until proven guilty.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced SERGIO NERI-ARCE, 36, of Mexico on September 20, 2019 for illegal re-entry of a previously deported alien into the United States. Neri-Arce was arrested in Cheyenne, Wyoming. He received time served plus ten days to allow for deportation proceedings. The U.S. Department of Homeland Security investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced KIMBERLY DAWN DANIELS, 46, of Sheridan, Wyoming on September 17, 2019 for conspiracy to distribute methamphetamine and marijuana. Daniels was arrested in Sheridan, Wyoming. She received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay restitution in the amount of $500.00. The Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced MICHAEL DEE BEARCLAW, Jr., 30, of Lodge Grass, Montana on September 18, 2019 for stealing a firearm from a federal firearm licensee. Bearclaw was arrested in Casper, Wyoming. He received ninety months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $301.98. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
50 Individuals Charged with Drug Trafficking in Puerto Rico as Part of the Organized Crime Drug Enforcement Task Force (OCDETF)Read the Press Release
SAN JUAN, Puerto Rico – On September 25, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against 50 defendants charged with conspiracy to possess with intent to distribute, and distribution of, controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), and the Puerto Rico Police Department (PRPD), Ponce Strike Force, were in charge of the investigation, with the collaboration of the US Marshals Service.
The indictment alleges that since the year 2013, the drug trafficking organization distributed heroin, crack, cocaine, and marihuana, within 1,000 feet of the real property comprising the José N. Gándara, and the Hogares de Portugués Public Housing Projects located in the Municipality of Ponce, and other areas in the southern part of Puerto Rico, all for financial gain and profit.
The 50 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, enforcers, runners, and sellers. Sixteen defendants are also charged with possession of firearms in furtherance of a drug trafficking crime.
As part of the conspiracy, the members of the drug trafficking gang conducted meetings to discuss the activities of the organization. The defendants had access to different vehicles in order to transport money, narcotics, and firearms. The leaders had final approval authority as to disciplinary action to be imposed upon residents of the José N. Gándara Public Housing Project; the Hogares de Portugués Public Housing Project, and/or the members of the conspiracy should they disobey the rules imposed by the drug trafficking organization.
The drug distribution points were located at the staircases of the public housing project buildings, among other locations. The gates of the buildings would be locked to prevent law enforcement personnel’s access to the drug points, thereby avoiding detection. The gang also used homemade buckets, similar to a “weapon unloading station,” to test fire their firearms while concealing the sound of the shot. These buckets were located within different areas in the José N. Gándara Public Housing Project. Members of the conspiracy would create labels to identify controlled substances as “prescribed” in order to mislead law enforcement agents into believing that the controlled substance was authorized to treat medical conditions.
The defendants indicted are: Cristopher Román-Medina, a.k.a. “Keke”; Victor Torres Galindo, a.k.a. “Manuel Silva”; Hommy Santiago-Rodríguez, a.k.a. “Hommy/Cacique”; Jonathan Ramos, a.k.a. “Zurdo”; Josué Rosado-Ríos, a.k.a. “Josué”; Juan C. Borrero-Silva, a.k.a. “Mata/Matta”; Emilio J. Alomar-García, a.k.a. “Machua/Macho/Millo”; Alexandro Rivera-Pérez, a.k.a. “El Cojo/Alex El Cojo”; Santiago De Jesús-Martínez, a.k.a. “Junito/Yairan”; Alex Manuel Malavet-Rivera, a.k.a. “Alexito”; Hector Pagán-Vega, a.k.a. “Piky”; Eric Tomás Nazario-Torres, a.k.a. “Eric/Eric Cripy”; Jesús M. Vargas-Vargas, a.k.a. “Bombo/Manuel”; Anthony Nazario-Ortiz, a.k.a. “El Negro”; José Luis Pabón-Custodio, a.k.a. “Joseito”; José A. Cintrón-Ortiz, a.k.a. “Rubia/Colorao/Barbie”; Juan C. Borrero-Ramírez, a.k.a. “Aspirina/Aspi”; Gerardo Rosado, a.k.a. “Gistro/Yistro/El Chacal”; Yalexis Fernández-García, a.k.a. “Lija/Flaco”; Rubén A. Rivera-Soto, a.k.a. “Piño”; Jean C. Velázquez-Cebollero, a.k.a. “Cebollero”; Gilberto Laboy-Nadal, a.k.a. “Papito/Papito Winston”; Randell Soto-Alvarado, a.k.a. “Bambino”; Victor Andrés Segarra-Vega, a.k.a. “Andy/Andie”; Victor Manuel Segarra-Vega, a.k.a. “Ito”; William D. Sanabria-Torres Jr., a.k.a. “W/William”; Anthony Almodovar-Guzmán, a.k.a. “Anthony”; Christopher González-Figueroa, a.k.a. “Offer”; Jonathan González-Figueroa, a.k.a. “Menor/Johnny”; José Manuel López-Velázquez, a.k.a. “Gordo”; Erik Antonio Avilés- Vega, a.k.a. “Eric/Erick/Erikcito/Erik-Chiquito”; Christopher Rosa-Moreno, a.k.a. “Chris”; Joseph Joamil Fontanez-Colón, a.k.a. “Nueva Atenas/Joamil/Cano”; Vilma Janet Vázquez-Vargas, a.k.a. “Janet/La Pata”; José J. Colón-Ramírez, a.k.a. “Yaye”; Arístides Rivera-Alvarado, a.k.a. “Fama”; Alberto Pimentel-Rodríguez, a.k.a. “Alberto”; Alexander Omar González-Morales, a.k.a. “Alexander”; Luis Ángel García-Ríos, a.k.a. “Boxeador”; Wilson Berríos-Flores, a.k.a. “Panda”; Axcel Orlando-Barral, a.k.a. “Axel/Uno-Nene”; Jeisabel Torruella-Almodovar, a.k.a. “Jei”; Freddyson Orengo-Rivera, a.k.a. “Menor”; Kevin Antonio Colón-Meléndez, a.k.a. “Atleta”; Ángel L. González-Morales, a.k.a. “Anuel”; Javier I. Montes-Medina, a.k.a. “Ivan”; Fernando L. Rivera-Quiñones, a.k.a. “Nandin/Colorao/Nando”; Samuel Jesús Castillo-Santana, a.k.a. “Simbólico”; Pedro Pacheco-Rodríguez, a.k.a. “Pedro”; and Katherine Colón-Negrón, a.k.a. “Katy-Troll”.
“I am grateful for the tireless efforts of the investigators and prosecutors who have dismantled this drug trafficking organization with today’s indictment,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to investigate these violent criminal organizations with our law enforcement counterparts, and send a clear message that drugs, firearms, and violence will not be tolerated in our neighborhoods.”
“The results of this operation show the commitment of HSI, and that of our partners in PRPD and the DEA, to rid our communities of individuals involved in criminal activity,” said Ivan J. Arvelo, special agent in charge for HSI San Juan. “Because of the hard work and efforts of HSI and DEA special agents and PRPD officers, we have 50 fewer alleged criminals in the streets, thus making our neighborhoods safer. This is only the beginning of a series of surges to return our communities to law-abiding citizens from unscrupulous criminals who have no respect for human life and dignity.”
“Today’s operation is a reflection of successful inter-agency cooperation. The dismantlement of violent organizations like this one, takes time. Since 2017, the Drug Enforcement Administration (DEA), Homeland Security Investigations, and the Puerto Rico Police Department have been relentless in targeting the criminal elements affecting the citizens of Ponce and surrounding municipalities. Working alongside the United States Attorneys’ Office, today we bettered the lives not only of the residents of these communities, but our quality of life as citizens of Puerto Rico. DEA will stay here, and we will prevail,” stated A.J. Collazo, DEA Caribbean Division Special Agent in Charge.
Assistant U.S. Attorney María L. Montañez-Concepción is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program operates nationwide and combines the resources and unique expertise of numerous federal agencies in a coordinated attack against major drug trafficking and money laundering organizations. All U.S. Attorney’s Offices work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce drugs and drug related violence in the communities. This case is a product of that collaborative effort.
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3 Pittsburgh Residents Charged with Drug and Gun CrimesRead the Press Release
PITTSBURGH, PA – John Burton, Nico Nixon, and Quintine Scales have been indicted by a federal grand jury in Pittsburgh for fentanyl, heroin, and crack cocaine trafficking and firearm crimes, United States Attorney Scott W. Brady announced today.
The Indictment, returned on September 24, charges Burton, age 31, Nixon, age 29, and Scales, age 35, all Pittsburgh residents, with distributing, possessing with intent to distribute, and/or conspiring to distribute 40 grams or more of fentanyl as well as fentanyl analogues, heroin, and crack cocaine between May 2019 and September 2019.
The law provides for a maximum total sentence of at least 10 years and up to life in prison and a fine of up to $7,500,000. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pittsburgh Bureau of Police, the United States Marshals Service, and the Pennsylvania Office of Attorney General conducted the investigation leading to the indictment in this case.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
19 charged in alleged narcotics ringRead the Press Release
DAYTON – A federal grand jury has charged 19 local individuals in a narcotics conspiracy involving more than 400 grams of fentanyl, 500 grams of methamphetamine, 500 grams of cocaine and heroin.
Eight of the defendants were arrested this morning, four were already in law enforcement custody and one has self-surrendered. Six currently remain at large.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges.
Those charged include:
Name
Age
City of Residence
Crawford P. Bogle
33
Dayton
Savon P. Pope
26
Dayton
Deshawn M. Harris
32
Phoenix, Ariz./Dayton
Kris A. Bogle
49
Dayton
Bryan K. Barney
36
Dayton
Lajuan M. Allen
32
Dayton
Donte (Deontay) A. Williams
28
Dayton
Marshall A. Cooper
32
Dayton
Jujuan D. Hansbro
26
Dayton
Qeuntin L. Robinson
35
Huber Heights
Dorian T. Bailey
32
Dayton
Storm A. Otey
28
Dayton
Dae-Sean L. Winn
21
Dayton
Jerome Bogle
52
Dayton
Brandon Henry
33
Dayton
Boyd D. Jackson
63
Middletown
Lisa N. Sumpter
34
Middletown
Kimberly L. Kelly
25
Dayton
Allen C.M. Maye
39
Dayton
*Currently a fugitive
According to the 27-count indictment, Crawford Bogle and Pope (with the assistance of other co-defendants) allegedly acquired for resale bulk amounts of controlled substances, including kilogram quantities of methamphetamine, fentanyl, heroin and cocaine. Crawford Bogle and Pope then allegedly processed and repacked the illegal drugs for resale in Southern Ohio, Kentucky and elsewhere.
It is alleged the group used 13 Dayton homes, apartments and business properties to process, store and distribute the drugs and cash proceeds.
The indictment details that defendants allegedly delivered hundreds of thousands of dollars to pay for kilogram quantities of the drugs. Crawford Bogle, Pope and others used proceeds from the drug sales to purchase a variety of high-end goods, including luxury cars.
Barney allegedly provided various members of the organization with fraudulent dealership tags to conceal their true ownership of vehicles through his car dealership.
In May 2019, Barney allegedly fled from a federal task force officer after an acquaintance of the illicit organization left a stash house in Dayton while in possession of more than $100,000 in cash.
In June 2019, members of the group allegedly hid bulk cash in a Dayton park while attempting to evade federal task force officers. It is alleged that Crawford Bogle searched the park the next day in an effort to locate the cash.
Defendants are charged with attempting to, conspiring to and distributing controlled substances (10 years up to life in prison), as well as communicating to facilitate a drug crime (up to four years in prison).
U.S. Attorney Glassman commended the investigation of this case by the DEA and the assistance of the Ohio State Highway Patrol, Montgomery County Sherriff’s Office, and Dayton, Middletown and Springfield police departments, as well as Assistant United States Attorneys Brent G. Tabacchi and Dominick S. Gerace, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you have any information regarding the whereabouts of those remaining at large, please text SOFAST and your tip to 847411.
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Wednesday 25 September 2019
Worcester Man Sentenced to 10 Years in Prison for Role in Multi-Kilogram Cocaine ConspiracyRead the Press Release
BOSTON – A Worcester man was sentenced yesterday in federal court in Worcester for his role in a cocaine trafficking ring responsible for smuggling over 20 kilograms of cocaine into central Massachusetts.
Jose Gonzalez, 38, was sentenced by U.S. District Court Judge Timothy S. Hillman to 10 years in prison and five years of supervised release. Gonzalez previously pleaded guilty to conspiring to distribute in excess of five kilograms of cocaine and possession with the intent to distribute over 500 grams of cocaine.
An investigation conducted in connection with federal wiretaps revealed, among other things, that in December 2017, Gonzalez had been the intended recipient of a package mailed from Puerto Rico containing three kilograms of cocaine.
In January 2018, wiretaps and surveillance revealed Gonzalez’s participation in the attempted smuggling of an additional six kilograms of cocaine from Puerto Rico, this time using a U.S. Postal employee to retrieve the packages of cocaine. As the scheme unfolded, agents seized one of the packages (found to contain three kilograms of cocaine) and allowed the second to be delivered to the conspiracy members under continuing electronic and physical surveillance. After observing the postal employee deliver the suspect package to a member of the conspiracy, authorities arrested several additional co-defendants. The second package was seized, and was found to contain another three kilograms of cocaine. Over $40,000 in cash and drug ledgers documenting the sale of well over 20 kilograms of cocaine were also seized during a search.
Gonzalez is the first of four defendants charged federally to be sentenced as a result of the investigation. Co-defendant Japhet Garcia is scheduled to be sentenced on Oct. 1, 2019, co-defendant Erick Cruz is scheduled to be sentenced on Oct. 8, 2019, and co-defendant Deibby Garcia is scheduled to be sentenced on Nov. 1, 2019. Another alleged member of the conspiracy, Caroline Cartagena, faces state charges. All of the defendants resided in Worcester.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph Cronin, Inspector in Charge of the United States Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Leicester Interim Police Chief Kenneth Antanavica made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Public Corruption Unit is prosecuting the case.
Worcester Man Indicted for Tax EvasionRead the Press Release
BOSTON – A Worcester man was arrested on Monday, Sept. 23, 2019, on charges of tax evasion and failing to file tax returns.
Leonard Ngunjiri a/k/a Leonard Gitonga, 50, was charged in an indictment with one count of tax evasion and five counts of failure to file a tax return. Ngunjiri was released on conditions following an arraignment in federal court in Worcester.
According to the indictment, Ngunjiri attempted to evade paying taxes for tax years 2006-2008 and 2011 by concealing his assets, directing his paychecks into bank accounts held in the names of others, and using other individuals for business and personal expenses. In addition, Ngunjiri did not file federal income tax returns from 2012 through 2017 despite making income in excess of the minimum filing requirements.
The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $100,000. The charge of failure to file tax returns provides for a sentence of up to one year in prison, one year of supervised release, and a fine of $25,000. 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 Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Woman Indicted for Attempting to Introduce Drugs to a Federal PrisonRead the Press Release
LONDON, Ky. – Keisha Pelote, 33, of Waldorf, Maryland, was indicted on Wednesday, on one count of possession with intent to distribute buprenorphine, aka Suboxone, and one count of attempting to provide it to an inmate in a federal prison.
The Indictment alleges that Pelote possessed the drug with the intent of distributing it and attempted to introduce it into FCI Manchester.
If convicted of the drug trafficking charge, Pelote faces up to 10 years of imprisonment, a $500,000.00 fine, and at least two years of federal supervised release. If convicted of attempting to introduce the buprenorphine into FCI Manchester, shefaces up to 20 years imprisonment, a $250,000 fine, and three years of federal supervised release.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, made the announcement after a federal grand jury in London returned the indictment.
Assistant United States Attorney R. Nicholas Rabold is prosecuting the case on behalf of the United States. The investigation preceding the indictment was conducted by the Bureau of Prisons, with the assistance of the Department of Homeland Security.
Pelote’s appearance before the United States District Court has not yet been set.
An indictment by a grand jury is an accusation only, and individuals charged in an indictment are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Watertown Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Watertown, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 23, 2019, by U.S. District Judge Charles B. Kornmann.
Danny Ray Callahan, Jr., age 40, was convicted of Conspiracy to Distribute a Controlled Substance and was sentenced to 151 months in federal prison, 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. He is the last of six defendants to be sentenced.
The conviction stems from a methamphetamine conspiracy in and around the Watertown and Sisseton, South Dakota areas from November 23, 2017 through February 28, 2018. The conspiracy involved over 500 grams of methamphetamine, a Schedule II controlled substance. Callahan, and three other co-defendants, Alexis Dumarce, Amos Hall and Dayvon Byrd, were selling methamphetamine brought to South Dakota from California by co-defendants Josh Paul and Victor Caperon. Caperon and Paul were found with six pounds of methamphetamine on February 28, 2018 during a traffic stop in Corson County, South Dakota. This methamphetamine was intended for sale in the Watertown and Sisseton areas.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, Corson County Sheriff’s Office, Mobridge Police Department and the Watertown Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Callahan was immediately turned over to the custody of the U.S. Marshals Service.
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United States Files False Claims Act Complaint against Participants in Hospital Development Project for Improperly Obtaining Government-Insured Loan and Misusing Loan FundsRead the Press Release
The United States has filed a complaint under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 against Lakeway Regional Medical Center, LLC (LRMC); Surgical Development Partners, LLC (SDP); G. Edward Alexander; Frank Sossi; and John Prater for improperly obtaining a loan insured by the Federal Housing Administration (FHA) and for impermissibly distributing project funds relating to the development of Lakeway Regional Medical Center in Lakeway, Texas, the Department of Justice announced.
“Participants in FHA programs undertake important commitments, and they must honor them and be truthful in their representations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates the Department’s commitment to holding accountable those who violate the requirements of this important program.”
“We will do what it takes to ensure that the American people are not left footing the bill when borrowers fail to comply with FHA program requirements intended to protect the public fisc,” said U.S. Attorney John Bash of the Western District of Texas.
The FHA, part of the U.S. Department of Housing and Urban Development (HUD), insures loans used to build hospitals in underserved areas. The United States’ complaint alleges that the defendants participated in a scheme to improperly obtain an FHA-insured loan to build the Lakeway hospital by delaying refunds to investors who had cancelled their investments to make it appear as if the project satisfied mortgage covenants regarding the cash on hand required to close the loan. The complaint also alleges that the defendants impermissibly distributed project funds.
“It is deeply disconcerting when industry professionals, who have fiduciary responsibilities and are expected to act as honest brokers, exploit federal programs created to aid legitimate medical facilities,” said Jeremy L. Kirkland, Counsel to the Inspector General, HUD Office of Inspector General. “This settlement demonstrates our continuing resolve, and should serve as a warning, that we will pursue those engaged in behavior that undermines federal insurance programs.”
“HUD will not tolerate FHA participants obtaining federally insured mortgages under false pretenses,” said HUD General Counsel Paul Compton. “Lakeway Regional Medical Center and its affiliates misrepresented facts that enabled them to obtain an FHA insured loan, and deliberately hid certain information from HUD. Today, HUD joins the Justice Department and the U.S. Attorney for the Western District of Texas to send a very clear message that the United States will seek accountability against those who defraud HUD programs.”
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Western District of Texas, HUD, and the HUD Office of Inspector General. The claims asserted against the defendants are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office Uses New Program to Connect Patients to Treatment Following the Forced Closing of a Doctor’s OfficeRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady today announced a new program that helps connect patients to care or treatment following the closing of a doctor’s office by federal law enforcement. The program was first used earlier this week following the closing of the Fayette County practice of Dr. Emilio Ramon Navarro, who was charged with drug dealing and health care fraud.
U.S. Attorney Brady said, "We know that while shuttering an office might mean the end of a doctor’s illegal behavior, it marks the beginning of an opioid-dependent patient’s quest for a new prescriber, and sometimes the street is a first choice. Partnering with Pennsylvania Department of Health, the Centers for Disease Control and Prevention, and the Department of Health and Human Services we have identified an effective way to help patients find legitimate medical care or access treatment for opioid addiction if that is what is needed."
While agents were arresting Dr. Navarro and executing a search of his office, three Pennsylvania Department of Health employees and two drug and alcohol counselors – one each from Fayette and Washington Counties - were on scene to meet one-on-one with patients and provide them with information on accessing legitimate care. They distributed an informational flyer directing people where to seek care, and posted a copy on the door of the office. Through this effort, several dozen patients were directed to alternate facilities where they could obtain legitimate qualified care.
"The defendant was responsible for protecting the health and wellbeing of his patients, but instead he is charged with coercing them into sexual acts in exchange for medically unnecessary prescription medications that are fueling the opioid crisis in Pennsylvania," said Attorney General Josh Shapiro. "He exploited his position of power as a doctor, put his patients’ lives in danger, and defrauded Pennsylvania’s Medicaid Program, which provides health care to low-income Pennsylvanians. I’m proud to work with our state and federal partners to put an end to this dangerous behavior and connect his former patients to the treatment and care that they deserve."
Assistant United States Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting the Navarro case on behalf of the government.
The investigation leading to the indictment of Emilio Navarro was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
U.S. Attorney’s Office Hosts Roundtables on Sexual Harassment and Racial Discrimination in HousingRead the Press Release
Anchorage, Alaska -- U.S. Attorney Bryan Schroder announced that on Wednesday, Sept. 18 and Thursday, Sept. 19, the U.S. Attorney’s Office and Department of Justice’s Civil Rights Division hosted roundtable discussions on combating sexual harassment and racial discrimination in housing in Fairbanks and Anchorage.
The events included state, tribal, and federal agencies, non-profit organizations, and crisis and legal service providers that often work with Alaska’s most vulnerable populations, who could also become victims of sexual harassment or racial discrimination in housing.
“These roundtables compliment the mission of the Attorney General’s Rural Alaska Anti-Violence Enforcement Network (RAAVEN). Many women facing violence and abuse in rural Alaska come to Anchorage or Fairbanks looking for a fresh start and new opportunities. These roundtables will help ensure that women and other vulnerable populations from all over Alaska are treated respectfully and fairly as they seek housing,” said U.S. Attorney Bryan Schroder.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.
Because victims may not be aware that the conduct they have experienced violates the Fair Housing Act or may not know where to turn, the U.S. Attorney’s Office and Department of Justice hope to collaborate with community organizations to raise awareness and help victims report abuse.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. In 2017, the Justice Department recovered more than $1 million in damages for victims. The Justice Department’s investigations frequently uncover sexual harassment or racial discrimination that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities. Many instances of sexual harassment or racial discrimination in housing continue to go unreported.
The roundtables were coordinated by Lauren Marks of the Housing and Civil Enforcement Section of the Civil Rights Division of Department of Justice.
The Department encourages anyone who has experienced sexual harassment or discrimination in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected].
usao/ak/19-066
Prepared by: Katie Schurig, 907-271-5022, [email protected]
U.S. Attorney's Office Hosts Roundtables on Initiative to Combat Sexual Harassment in HousingRead the Press Release
PORTLAND, Ore. – The U.S. Attorney’s Office for the District of Oregon and the Justice Department’s Civil Rights Division hosted two community roundtables on Wednesday to address the problem of sexual harassment in housing, kicking off a statewide initiative to combat this violation of federal law.
The initial Portland meetings included representatives from state and local law enforcement agencies, legal aid, advocacy organizations, the Fair Housing Council of Oregon, shelters, housing providers, victim advocates, and tribal representatives. These organizations often interact with and represent vulnerable populations who are most likely to become victims of sexual harassment in housing. The U.S. Attorney’s Office will continue this effort throughout other parts of Oregon to help educate victim advocates, social service organizations, and law enforcement, about the protections provided by the federal Fair Housing Act, and to encourage reporting of such violations across the state.
“Sexual harassment in housing is often underreported, and it is an egregious violation of a person’s right to fair housing,” U.S. Attorney Billy Williams said. “Landlords or managers, who use their power over tenants to extort sexual favors, or even commit assaults, is intolerable. Our office is dedicated to uncovering such violations where they exist and vigorously enforcing federal law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Justice Department’s nationwide initiative, seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the Justice Department’s enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
The U.S. Attorney’s Office is working closely with the DOJ Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Often it is community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers, that are in the best position to identify housing abuses and recommend that victims report sexual harassment to DOJ’s Civil Rights Division. By increasing awareness and building strong partnerships, we can better combat this problem in our community.
The roundtables are an integral part of a DOJ initiative that seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts - both among victims and those they may report to - and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected]. Individuals who believe they may have been victims of such discrimination may also file a complaint with the U.S. Attorney’s Office for the District of Oregon by contacting Assistant U.S. Attorney Adrian Brown, at 503-727-1000.
Two Men Charged for Double Homicide and Armed Robbery of Brooksville, Florida CoupleRead the Press Release
Ft. Myers, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Alex Jared Zwiefelhofer (22, Wisconsin) and Craig Austin Lang (29, Arizona and North Carolina) with conspiracy to commit robbery affecting commerce and to discharge a firearm during and in relation to a crime of violence, robbery interfering in commerce, and discharging a firearm during and in relation to a crime of violence, resulting in death. The statutory penalties for these offenses include up to life imprisonment and death.
According to court documents, on April 10, 2018, two individuals, S.L., Jr. and D.L., were found dead in Estero, Florida from multiple gunshot wounds to the head and body. Further investigation revealed that the couple had traveled to Estero from Brooksville, Florida to complete the purchase of several firearms from an individual that had listed them for sale on a website known as Armslist. As a result of the investigation, Zwiefelhofer and Lang, were identified as the individuals who were believed to have murdered the couple during the course of an armed robbery for $3,000 that the couple intended to use to purchase the firearms.
Zwiefelhofer made his initial appearance in Madison, Wisconsin, and was detained pending his return to the Middle District of Florida in Ft. Myers. Lang is currently in custody, in Ukraine, pursuant to a provisional arrest request from the United States.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It will be prosecuted by Ft. Myers Assistant United States Attorneys Jesus M. Casas and Josephine W. Thomas.
Two Men Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Wehs and Jordan Dunn, both 25, and both of Rochester, NY, were arrested and charged by criminal complaint with the receipt and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that the FBI’s Child Exploitation Task Force received a cyber tip from an online social media company indicating that an account holder had uploaded an image of child pornography using the company’s messaging application. Investigators traced the child pornography to an apartment Wehs and Dunn share in Rochester. On September 18, 2019, investigators executed a search warrant at the residence. Computers belonging to the defendants were seized. A review of the computers revealed multiple images and videos of child pornography.
Subsequent investigation determined that both Wehs and Dunn worked with children, including disabled children, at various organizations in the Rochester area.
Members of the public who have information related to this case are asked to call the FBI’s Rochester Office at 585-546-2220.
The defendants made an initial appearance today before U.S. Magistrate Judge Jonathan W. Feldman and were released under supervision.
The criminal complaint is the result of an investigation by the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Sheriff's Office, under the direction of Sheriff Todd Baxter; the Greece Police Department, under the direction of Chief Patrick Phelan; the Livingston County Sheriff's Office, under the direction of Sheriff Thomas J. Dougherty; and the Ontario County Sheriff's Office, under the direction of Sheriff Kevin M. Henderson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Two Kazakh Cybercriminals Plead Guilty in Global Digital Advertising Fraud Involving Tens of Millions of Dollars in LossesRead the Press Release
Sergey Ovsyannikov and Yevgeniy Timchenko, citizens of the Republic of Kazakhstan, pleaded guilty yesterday and today, respectively, in federal court in Brooklyn to conspiring to commit wire fraud and related charges, for their involvement in a widespread digital advertising fraud. Ovsyannikov was arrested in October 2018 in Malaysia and extradited to the United States in March 2019. Timchenko was arrested in November 2018 in Estonia and extradited to the United States in February 2019. Both plea proceedings took place before United States Magistrate Judge Steven M. Gold. When sentenced, Ovsyannikov faces up to 42 years in prison, and Timchenko faces up to 40 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.
Background on Digital Advertising
The internet is, in large part, freely available to users worldwide because it runs on digital advertising, where website owners display advertisements on their sites and are compensated by intermediaries representing businesses that advertise goods and services to human customers. In general, digital advertising revenue is based on how many users click, or view, the advertisements on those websites. As alleged in court filings, the defendants in this case represented that they ran legitimate companies that delivered advertisements to human internet users, who accessed real internet webpages. In fact, the defendants faked both the users and the webpages they programmed computers they controlled to load advertisements on fabricated webpages, via an automated program, and fraudulently obtained digital advertising revenue.
The Botnet-Based Criminal Scheme (“3ve.2 Template A”)
Between December 2015 and October 2018, Ovsyannikov and Timchenko were involved in operating a purported advertising network and carried out a digital advertising fraud scheme, referred to in the advertising industry as “3ve.2 Template A.” In this scheme, the defendants used a global “botnet”¾ a network of malware-infected computers operated without the true owner’s knowledge or consent to perpetrate their fraud. The defendants developed an intricate infrastructure of command-and-control servers to direct and monitor the infected computers, and to detect whether a particular infected computer had been flagged by cybersecurity companies as being associated with fraud. By using this infrastructure, the defendants accessed more than 1.7 million infected computers belonging to individuals and businesses in the United States and elsewhere, and used hidden browsers on those infected computers to download fabricated webpages and load advertisements onto those fabricated webpages. Meanwhile, the owners of the infected computers were unaware that this process was running in the background on their computers. As a result of this scheme, the defendants falsified billions of advertisement views and caused businesses to pay more than $29 million for advertisements that were never actually viewed by human internet users.
The Defendants’ Roles
Ovsyannikov led the development of the 3ve.2 scheme, and was a principal and owner of the advertisement network used to carry out the scheme. Ovsyannikov set out the infrastructure of the scheme in a spreadsheet titled “[Ad Network] Structure. Hosting and Domains.” The spreadsheet listed many of the command-and-control servers and other servers involved in the scheme, including several designated as repositories of “spoof” webpages. Ovsyannikov maintained lists of webpages to fabricate (or “spoof”) in his cloud storage account and on servers that he controlled, including more than 86,000 webpages associated with online publishers, including the webpages of thousands of businesses in the United States. In communications with co-conspirators, Ovsyannikov explained how different aspects of the infrastructure worked together to perpetrate the fraud, such that a “bot” in the botnet would “set itself” to visit a “spoofed domain” and cause a falsified advertisement view. Ovsyannikov directed proceeds of the fraud to bank accounts in Switzerland, among other locations. As part of his guilty plea, Ovsyannikov will forfeit those Swiss bank accounts, which contain more than eight million dollars.
Timchenko worked for Ovsyannikov and handled logistical and administrative aspects of the 3ve.2 scheme. Timchenko assisted in creating the infrastructure of command-and-control servers and other servers that were instrumentalities of the scheme. Timchenko deliberately chose certain U.S. service providers because they had the “coolest processors” and a “larger” cache (for temporary data storage) than competing providers. Timchenko also researched webpages to fabricate, deliberately targeted webpages for businesses in the United States, and placed those webpages on a running list that both defendants kept that was titled “New companies for spoofing.”
Separately, Ovsyannikov provided technical assistance to the operators of another digital advertising fraud scheme, referred to in the advertising industry as “Methbot.” In the Methbot scheme, the perpetrators used computers housed in commercial datacenters, instead of in a botnet, to carry out the digital advertising fraud. Ovsyannikov helped the Methbot operators program the datacenter computers to mimic human behavior, disguise the computers’ automated browsers, and evade fraud detection software. The Methbot operators falsified billions of advertisement views and caused businesses to pay more than $7 million for advertisements that were never actually viewed by human internet users.
The Botnet Takedown
Following the arrest of Ovsyannikov by Malaysian authorities in October 2018, U.S. law enforcement authorities, in conjunction with various private sector companies, began the process of dismantling the criminal cyber infrastructure utilized in the botnet-based scheme, which involved computers infected with malicious software known “Kovter.” The FBI executed seizure warrants to redirect the internet traffic going to 23 internet domains used to further the charged botnet-based scheme or otherwise used to further the Kovter botnet (an action known as “sinkholing”), in order to disrupt and dismantle the botnet. The FBI also executed search warrants at 11 different U.S. server providers for 89 servers related to the charged botnet-based scheme or Kovter.
In addition, as part of its investigation, the FBI discovered an additional cybercrime infrastructure committing digital advertising fraud through the use of datacenter servers located in Germany, and a botnet of computers in the United States infected with malicious software known in the cybersecurity community as “Boaxxe.” The FBI executed seizure warrants to sinkhole eight domains used to further this scheme and thereby disrupt yet another botnet engaged in digital advertising fraud.
Finally, the United States, with the assistance of its foreign partners, executed seizure warrants for multiple international bank accounts in Switzerland and elsewhere that were associated with the schemes.
For technical details on the malware and botnets referenced in this case, please see US-CERT Alert TA18-331A: https://www.us-cert.gov/ncas/alerts/TA18-331A
The government’s case is being prosecuted by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Michael T. Keilty, Alexander F. Mindlin and Karin K. Orenstein are in charge of the prosecution.
The Defendants:
SERGEY OVSYANNIKOV
Age: 30
Republic of KazakhstanYEVGENIY TIMCHENKO
Age: 31
Republic of KazakhstanE.D.N.Y. Docket No. 18-CR-633 (ERK)
Two Hudson Residents Plead Guilty to Fentanyl TraffickingRead the Press Release
CONCORD – Joseph Roy, 31, and Amelia Roy 30, both of Hudson, New Hampshire, pleaded guilty in federal court on Tuesday to drug trafficking charges, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, from November 9, 2018, until January 8, 2019, a cooperating individual, at the direction of Nashua Police Department detectives, arranged on three occasions to buy fentanyl from Joseph Roy. Amelia Roy, Mr. Roy’s sister, participated as an accomplice during one of the transactions.
Joseph and Amelia Roy are scheduled to be sentenced on January 3, 2020.
“Fentanyl trafficking has had devastating consequences throughout New Hampshire” said U.S. Attorney Murray. “Through Operation SOS we will continue to work with the Nashua Police Department and law enforcement agencies throughout Hillsborough County to bring those responsible to justice.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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