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Wednesday 25 September 2019
Two Charged in Connection to Fatal and Non-Fatal Overdoses Last WeekendRead the Press Release
PITTSBURGH – Two individuals have been charged in separate, but related, indictments relating to the September 22-23, 2019 overdose deaths of three people and non-fatal overdoses of five people that occurred in Pittsburgh and West Mifflin, United States Attorney Scott W. Brady announced today.
"These cases are stark reminders that although we have made significant progress, we continue to fight an epidemic," said U.S. Attorney Brady. "I commend the tireless efforts of our law enforcement partners who within 24 hours of the first overdose arrested the distributor of these deadly narcotics and took five kilograms of it off the streets."
A seven-count indictment returned today names Peter Rene Sanchez Montalvo aka Carlos, 25, of Coachella, California, as the sole defendant. According to the indictment and a criminal complaint filed in the case, on September 22, 2019, Montalvo distributed fentanyl and acetyl fentanyl at a party in an apartment located at 2626 Tunnel Boulevard on Pittsburgh’s South Side. The indictment alleges that the distribution resulted in the deaths of R.M., J.P., and J.S., as well as serious bodily injury to F.M., G.G., and P.R.
A one-count indictment returned today charges Derek Omar Smith, 36, of West Mifflin, Pennsylvania, with possessing with intent to distribute fentanyl and acetyl fentanyl. According to a criminal complaint filed in the case, on September 23, 2019 at 3:15 a.m., West Mifflin Police were dispatched to a suspected overdose at 4304 Bowes Avenue in West Mifflin. Upon arrival they located two individuals who had overdosed, and who medics were able to revive with Narcan. The homeowner identified one of the men as Derek Omar Smith. During the investigation, West Mifflin police located a bag laying on the ground outside. Police opened the bag and observed five blocks of narcotics.
Investigation by the Allegheny County Medical Examiner’s Office has determined the substances referenced in both cases to be fentanyl and acetyl fentanyl, an analogue of fentanyl.
Montalvo was arrested on Monday in McKees Rocks and Smith was arrested on Monday in West Mifflin. The United States Attorney’s Office intends to seek detention without bail of the defendants pending trial.
The law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $16,000,000, or both, for Montalvo. The law provides for maximum total sentence
of not less than 10 years and up to life in prison, a fine of $10,000,000, or both for Smith. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Robert C. Schupansky is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Pittsburgh Bureau of Police, the FBI’s Western Pennsylvania Opioid Task Force, which is comprised of law enforcement officers from the FBI, Port Authority Police of Allegheny County, the Allegheny County Sheriff’s Office, the North Versailles Police Department and the Stowe Twp. Police Department, with assistance from the Drug Enforcement Administration.
This case is being prosecuted as part of Operation S.O.S. (Synthetic Opioid Surge), a Department of Justice enforcement initiative designed to dismantle deadly fentanyl distribution networks through cooperation with local, state and federal law enforcement, as well as local and state prosecutors. The Western District of Pennsylvania is one of 10 districts from across the country to implement the S.O.S. program.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Trident USA Health Services LLC to Pay $8.5 Million to Resolve False Claims Act Liability for Alleged Kickback SchemeRead the Press Release
PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced today an $8.5 million civil settlement to resolve two False Claims Act cases, United States et al. ex rel. Ravi Srivastava v. Trident USA Health Services LLC, Symphony Diagnostic Services No. 1, Inc. dba MobilexUSA, Civil Action No. 16-2956 (E.D. Pa.), and United States ex rel. Peter Goldman v. Symphony Diagnostic Services No. 1, LLC, d/b/a MobilexUSA, Civil Action No. 19-cv-01603 (E.D. Pa.). The lawsuits were filed by whistleblowers Ravi Srivastava and Peter Goldman, respectively, on behalf of the United States. The defendant is MobilexUSA, also known as Trident USA Health Services, LLC (Trident).
Trident provides mobile diagnostic services, including mobile x-rays, to individuals residing in skilled nursing facilities. The United States pays Trident to provide mobile x-rays to Medicare and Medicaid participants in these skilled nursing facilities. Whistleblower Srivastava had been Trident’s Chief Information Officer, and whistleblower Goldman had been a Trident regional sales manager. Based upon these whistleblowers’ allegations that Trident was engaged in a kickback scheme with skilled nursing facilities, the government investigated Trident’s pricing arrangements and its costs to provide mobile x-rays at these facilities.
Based upon its investigation, the government alleges that, from approximately June 2006 through September 2019, Trident engaged in illegal “swapping” arrangements under which Trident provided mobile x-rays to skilled nursing facilities at prices below Trident’s costs to provide the services, or below fair market value, for the purpose of inducing the facilities to refer lucrative federal health program business to Trident. Federal law prohibits the payment of kickbacks in exchange for the referral of federal healthcare business, including for healthcare that will be paid by the federal government through Medicare or Medicaid. Trident, like other companies that submit claims for payment to Medicare or Medicaid, is required to certify that it is compliant with federal anti-kickback laws. The government alleges that Trident’s certifications of anti-kickback law compliance were false certifications.
On February 10, 2019, Trident filed for bankruptcy protection. In bankruptcy, Trident sought to extinguish the government’s ability to collect any damages or penalties from Trident in connection with the illegal swapping arrangements. Despite Trident’s bankruptcy, the government and whistleblowers Srivastava and Goldman and their counsel worked together closely and continued their vigorous pursuit of the government’s claims, resulting in the $8.5 million settlement.
First Assistant U.S. Attorney Williams said: “Companies that violate the False Claims Act through illegal swapping arrangements, or by any other illegal scheme violating federal laws designed to protect the public fisc, will not find a safe harbor in bankruptcy court. The government will not relent or be deterred in our pursuit of justice for America’s taxpayers.”
Whistleblower Srivastava will receive $2,018,750.00 as his share of the government’s $8.5 million recovery, and whistleblower Goldman will receive $106,250.00. The whistleblowers were represented by attorneys Sherrie R. Savett, Esq. and Russell D. Paul, Esq., of Berger Montague, Philadelphia, PA, and James D. Young, Esq., of Morgan & Morgan Complex Litigation Group, Jacksonville, FL, respectively. “The whistleblowers and their lawyers provided vital and exceptionally valuable support to the government’s effort in this case, even after Trident’s bankruptcy put any recovery in doubt,” stated Williams.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The lawsuits were handled by Assistant U.S. Attorneys Joel M. Sweet and Veronica J. Finkelstein, Auditor Dawn Wiggins, and Investigator Jeffrey R. Braun, from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, along with Trial Attorneys Alex Thor Pogozelski and Michael J. Podberesky of the Civil Frauds Branch of the Department of Justice. Assistant U.S. Attorney Jessica Hu of the U.S. Attorney’s Office for the Southern District of New York represented the United States in Trident’s bankruptcy proceedings.
The government’s settled civil claims are based on allegations. There has been no court determination of liability.
Three Members of Coney Island Street Gang Plead Guilty to Murder as Part of Racketeering ConspiracyRead the Press Release
Tysheen Cooper, Michael Liburd and Maurice Washington, members of the West End Enterprise, a Coney Island-based street gang, pleaded guilty in federal court in Brooklyn on September 24 and September 25, 2019 to a racketeering conspiracy involving their participation in the murder of Antwon Flowers. The guilty pleas were entered before United States District Court Judge Pamela K. Chen.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
As detailed in the superseding indictment, other public court filings and statements in court, the defendants were members of the West End Enterprise, a street gang comprising individuals residing in and around the Sea Rise Apartments, the Gravesend Houses and Surfside Gardens, also known as the “Mermaid Houses,” located in Coney Island. Between approximately 2011 and October 2017, the gang committed various criminal acts, including narcotics distribution, robbery, extortion and murder.
On January 17, 2016, the defendants agreed to murder Antwon Flowers in retaliation for what they believed was his role in setting up the killing of a West End Enterprise leader the previous day. As captured on surveillance video, Liburd and Cooper followed Flowers as he walked out of the Mermaid Houses, at which point they pulled out firearms and shot at Flowers, with Liburd’s shot striking Flowers in the head and killing him. Liburd and Cooper then fled in a getaway car that Washington had parked nearby.
“Families living in apartment buildings and public housing deserve to feel as safe, and to be as safe, as those living in mansions,” stated United States Attorney Donoghue. “We and our law enforcement partners will continue to prosecute gang members who inflict mindless violence not only on one another, but on the community.” Mr. Donoghue thanked the Drug Enforcement Administration and the New York City Housing Authority, Office of the Inspector General, for their assistance in 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 its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Mathew S. Miller, Jennifer M. Sasso and Kayla Bensing are in charge of the prosecution.
The Defendants:
TYSHEEN COOPER (also known as “Billz”)
Age: 28
Brooklyn, New YorkMICHAEL LIBURD (also known as “Mike Mike” and “Mitty”)
Age: 33
Brooklyn, New YorkMAURICE WASHINGTON (also known as “Moe” and “Flaco”)
Age: 30
Brooklyn, New YorkEDNY Docket No. 17-CR-296 (PKC)
The Department of Justice Announces Launch of New Process for Filing Documents Pursuant to the Foreign Agents Registration Act of 1938 (FARA)Read the Press Release
The Department of Justice today announced a new online system for filing, storing, and searching registrations under the Foreign Agents Registration Act of 1938 (FARA).
This enhanced system (known as eFile) will increase public transparency and allow for better analysis of new filings. The system will also benefit new registrants who will file using fillable web-forms (instead of by filling out PDFs), making it easier for them to upload information and to update registrations, as the statute requires. These improvements build on the FARA Unit’s expansion, earlier this summer, of the website’s search features, which enable full-text searches and downloads of results in bulk format (e.g. CSV, XML) or via machine-readable API endpoints (e.g. CSV, XML, JSON) of more than 80,000 online FARA filings, and last year’s decision to publish its advisory opinions online.
“FARA helps protect the integrity of American democracy by combating covert foreign government influence in our political process,” said Assistant Attorney General John C. Demers. “Improving the FARA filing system is part of the Department’s commitment to improving transparency of foreign influence activities. This new system will make it easier for registrants to comply with their legal obligations and for the public to remain informed of their activities. The more accessible we make information on foreign political activities to the public, the better we accomplish our mission.”
The Department’s commitment to transparency and enforcement of the statute has borne fruit:
- In 2018 alone, more than 20 individuals and entities were criminally charged with violations involving FARA. That is more than the total number of individuals and entities charged in the prior 50 years.
- In May, the Division used its civil enforcement authority for the first time since 1991 to obtain a court order requiring RM Broadcasting to register as the agent of a Russian state-owned media enterprise.
- At current rates, the Department is on track to double the number of new registrants and new foreign principals registering annually as of 2016. Moreover, almost twice the number of individuals who work for registrants (known as “short-form registrants”) have registered, increasing transparency concerning the individuals (and not just the entities) engaged in foreign influence activities.
- The FARA Unit has increased the number of inspections of FARA registrants, to audit compliance with their record-keeping and reporting obligations, by over 30 percent, from an average of about 14 a year (from 2010 to 2018) to 20.
The revamped FARA eFile system will streamline the registration process and improve searching and analysis of FARA filings. The new process is self-guided, provides instructions and definitions, and automatically pre-populates data in subsequent filings. Importantly, eFile will help ensure all required fields are completed and responses are standardized, which will promote transparency and efficiency. Applicants can prepare their materials offline, using templates, which they can upload at the time of filing. Although only new FARA registrants will use the web-fillable eFile system at this time, and existing registrants will continue to use the legacy method, further updates to the website are planned that will transition all filings to the new platform. Additional details regarding this feature, including the templates, are posted on the FARA website.
Texas District Judge Sentenced to PrisonRead the Press Release
A Texas state district judge has been sentenced to 60 months in federal prison following his multiple convictions of conspiracy, bribery and obstructing justice, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
A federal jury in Houston convicted Rodolfo “Rudy” Delgado, 66, of Edinburg, July 11, 2019, following a six-day trial of one count of conspiracy, three counts of federal program bribery, three counts of travel act bribery and one count of obstruction of justice.
Delgado was sentenced by U.S. District Judge Alfred Bennett who also ordered Delgado to serve two years of supervised release.
Delgado was a justice in the 13th Court of Appeals for the State of Texas, having been elected in November 2018. He resigned from that position following his conviction.
Prior to that, he was previously the presiding judge for the 93rd District Court for the State of Texas, which has jurisdiction over Texas criminal and civil cases located within Hidalgo County. As a district judge, Delgado conspired with an attorney from January 2008 to November 2016 to accept bribes in exchange for favorable judicial consideration on criminal cases pending in his courtroom.
As part of the investigation, Delgado also accepted bribes on three separate occasions in exchange for agreeing to release three of the attorney’s clients on bond in cases pending before his court. The first two bribes totaled approximately $520 in cash and the third bribe - in January 2018 - totaled approximately $5,500.
After Delgado learned of the FBI’s investigation, he also attempted to obstruct justice by contacting the attorney and providing a false story about the payments.
The FBI conducted the investigation. Trial Attorney Peter M. Nothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Arthur “Rob” Jones and Robert Guerra are prosecuting the case.
Rochester Woman Sentenced to 84 Months for Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD - Kristen Hodgkins, 30, of Rochester, was sentenced in to serve 84 months in federal prison for participating in a methamphetamine trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning about September 4, 2018, Hodgkins sold methamphetamine to an undercover police officer on multiple occasions. On December 20, 2018, agents traveled to a store in Rochester and located Hodgkins in a vehicle driven by another woman. New Hampshire State Police stopped the vehicle and Hodgkins was arrested on outstanding arrest warrants. During a search of Hodgkins’s bags, a police officer located bags containing approximately 146.4 grams of methamphetamine.
Hodgkins previously pleaded guilty on June 19, 2019.
“Methamphetamine is a powerful drug that endangers the health and safety of the citizens of New Hampshire,” said U.S. Attorney Murray. “The seven-year sentence imposed in this case should serve as a warning to those inclined to sell this substance in our state. We will continue to be aggressive in our efforts to identify, arrest, and incarcerate those who engage in this trade.”
“DEA will do everything in our power to bring to justice those who distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Ms. Hodgkins accountable for her crimes but serves as a warning that DEA and its local, state and federal partners will work diligently to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the Drug Enforcement Administration, with assistance from the New Hampshire State Police and the Rochester Police Department. The case was prosecuted by Assistant U.S. Attorney John Davis.
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Registered Sex Offender Sentenced to Life in Federal Prison for Enticing Two ChildrenRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Romeo Valentin Sanchez (32, Cape Coral) to life in federal prison for producing child pornography, enticing a minor to engage in sexual conduct, and possessing child pornography. The court also ordered Sanchez to forfeit two cellphones that he had used to receive and store the images.
Sanchez was found guilty by a jury on February 25, 2019, after a five-day trial.
According to testimony and evidence presented at trial, Sanchez, a convicted sex offender, lured a 14-year-old victim into a sexual relationship that lasted several months. In addition to engaging in sex acts with the victim, Sanchez also induced the victim to make and send him pornographic videos.
After officers from the Cape Coral Police Department seized Sanchez’s phone and informed him that he was under investigation for his sexual exploitation of the first victim, Sanchez obtained a second cellphone and attempted to entice a second middle-school-aged child into a sexual relationship. Sanchez lured the victim by creating a fraudulent social media profile of a 13-year-old boy in an attempt to trick the victim into a sexual relationship. Although no in-person encounter occurred with the second victim, Sanchez was able to induce the victim to send him child pornography.
This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Charles Schmitz.
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prichard Man Sentenced to 96 Months Imprisonment for Drug TraffickingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge Callie V. S. Granade sentenced Edward Lamar Hunt on September 25, 2019 to 95 months confinement for Possession with the Intent to Distribute Crack Cocaine in violation of Title 21 USC Section 841.
The defendant plead guilty to this offense on July 23, 2018. The facts of court record established that on July 25, 2017, Mobile Police Department officers prepared to execute a search warrant at an apartment where the defendant was living with his girlfriend. Just before execution of the search warrant, the defendant happened to be walking out of apartment on a stairwell with his girlfriend. The defendant was in possession of 43 grams of crack cocaine and 30 grams of powder cocaine at the time. Upon seeing law enforcement, the defendant dropped the crack cocaine and powder cocaine into his girlfriend’s purse. The defendant possessed the crack cocaine and powder cocaine with the intent to distribute it.
Upon execution of the search warrant officers also recovered a handgun from the master bedroom the defendant shared with his girlfriend.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Mobile Police Department and the Prichard Police Department. The case was prosecuted by Deputy Criminal Chief, Assistant United States Attorney George F. May.
Plum Borough Man Pleads Guilty in Heroin, Fentanyl and Cocaine Distribution SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Plum Borough, PA, pleaded guilty in federal court today to charges involving heroin, fentanyl, and cocaine trafficking, United States Attorney Scott W. Brady announced today.
Brandon Winters, age 43, pleaded guilty before Senior United States District Judge Nora Barry Fischer to the two-count Indictment charging him at Count One with conspiring to possess with intent to distribute and to distribute one kilogram or more of heroin and 400 grams or more of fentanyl; and at Count Two, with possessing with intent to distribute 500 grams or more of cocaine.
In connection with the guilty plea, the Court was advised that on January 30, 2019, investigators with the Federal Bureau of Investigation and Pennsylvania State Police Drug Law Enforcement Division executed a search warrant at an apartment located in Pittsburgh, which was utilized by Winters and his alleged co-conspirators, Eduard Rijo and Erick Martinez. Upon entry into the apartment, case agents located Winters, Rijo, and Martinez, approximately 1,500 "bricks" (the equivalent of roughly 75,000 individual dosage units) containing mixtures of heroin and fentanyl, and more than 500 grams of cocaine. Additionally, case agents seized over $250,000 in U.S. Currency, which was found in and around Mr. Winters and his alleged co-conspirators.
Judge Fischer scheduled sentencing for Feb. 6, 2020 at 9:00 a.m. The law provides for a total sentence of not less than 10 years up to life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court revoked Winters’s bond and remanded him to the custody of the United States Marshal.
Assistant United States Attorneys Jerome A. Moschetta and Tonya Sulia Goodman are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Winters.
Pittsburgh Man Indicted on Drug Possession ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Jeremie Mitchell, age 25, as the sole defendant.
According to the indictment, on or about September 3, 2019, Mitchell possessed with the intent to distribute 100 grams or more of a mixture and substance heroin, a Schedule I controlled substance, and a quantity of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The law provides for a minimum sentence of 10 years and a maximum total sentence of life in prison, a fine not to exceed $8,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Owners Agree to Pay $1.1 Million and Abide by 10-Year Federal Healthcare Exclusion to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced that the owners of E-Z Pharmacy in Philadelphia have agreed to pay $1,100,000 to resolve liability under the False Claims Act.
Dhanyabapa LLC, doing business as E-Z Pharmacy, and Shardaben Patel will jointly pay $1,100,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period from January 1, 2012 to December 31, 2016. These medications include Advair Diskus, Humalog, Novolog, Renvela, and Lidoderm. Dhanyaba LLC and Shardaben Patel also agreed to a ten-year federal healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare for the next decade.
“Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse,” said U.S. Attorney McSwain. “We appreciate E-Z Pharmacy's willingness to promptly negotiate a resolution in this matter. I also want to thank the Department of Health and Human Services, Office of the Inspector General for its referral of this matter. Our Office will continue to work proactively with our law enforcement partners to identify and prosecute fraudulent conduct.”
“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”
The settled civil claims are allegations only. There has been no determination of civil liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, and Auditor George Niedzwicki.
National Telecommunications and Information Administration Releases Report on Effectiveness of Micro-Jamming Contraband Cellphones in PrisonsRead the Press Release
The National Telecommunications and Information Administration (NTIA) has released a report on the effectiveness of a new technology used to block illegal cellphone signals in correctional institutions. Department officials are encouraged by the promising results and the potential for the technology to disable contraband cellphones in prisons.
The NTIA report details the results of an April 2019 Federal Bureau of Prisons (BOP) pilot test of micro-jamming technology at a state prison in Columbia, S.C. The results are promising, showing that the new technology could be effective in preventing the use of contraband cellphones in prisons. As detailed in the report, NTIA observed micro-jamming technology installed and operated within half of an inmate housing unit. The testing was overseen by BOP staff who observed that cell signals inside the housing unit were blocked, while legitimate calls could be made one foot outside of the housing unit perimeter. This test followed two earlier tests at a federal corrections facility in Cumberland, Md., one of which included a micro-jamming test showing that the technology rendered cellular signals inoperable inside a single cell.
Contraband cellphones are used by inmates to engage in criminal activity, or even run entire criminal enterprises, while incarcerated, endangering law enforcement officers (including correctional staff) and the public. For instance, in June 2019, the Department of Justice announced charges against members and associates of the Aryan Brotherhood, many of whom are currently serving life prison sentences for murder. Some of the charged defendants allegedly used cellphones that had been smuggled into prison to order murders and oversee other criminal activities.
There are countless examples of prisoners using illegal cellphones from behind bars to engage in illicit activities, such as sextortion schemes and conspiracies to purchase a mail bomb over the Dark Web or traffic drugs. “We are pleased with the most recent test results, and our efforts to test and employ new technology will continue until inmates cannot use contraband cellphones to terrorize, threaten, or harm our communities,” said Assistant Attorney General Beth Williams. “We also want to thank Senators Lindsey Graham and Tom Cotton and Congressman David Kustoff for their leadership on this important issue."
The BOP will continue to evaluate cell signal detection and interception technologies and work with its partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. BOP does not endorse any specific vendor or product.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Eleven TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to five months in federal prison.
Gabriel Hernandez-Martinez, age 39, a citizen of Mexico illegally present in the United States received the prison term after a June 21, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Hernandez-Martinez admitted he had previously been deported from the United States in October 2009, December 2009, March 2010, and November 2010 and illegally reentered the United States without the permission of the United States government. Hernandez-Lopez and other illegal aliens were found by immigration agents in May 2019 after a traffic stop in Bremer County, Iowa. Hernandez-Martinez was also deported to Mexico one time in November 1998, three times in November 1999, two times on the same day in June 2005, and one additional time in October 2009.
Hernandez-Martinez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Hernandez-Martinez was sentenced to five months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Martinez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2038.
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Metairie Man Charged with Conspiracy to Distribute OxycodoneRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that a Bill of Information was filed September 24, 2019 against AARON JEFFREY DENN, age 34, of Metairie charging him with conspiracy to distribute oxycodone, a Schedule II controlled substance.
If convicted, DENN faces a possible maximum sentence of 20 years imprisonment and a $1,000,000 fine as to Count 1 of the Information. He also faces at least three years of supervised release.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the Department of Health and Human Services, and the Jefferson Parish Sheriff’s Office for their work investigating the case. U.S. Attorney Strasser reiterated that the Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Jared Hasten of the U.S. Department of Justice Criminal Division, Fraud Section.
Merrimack Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD - Joseph Francis Brodie, Jr., 50, of Merrimack, pleaded guilty in federal court Tuesday to drug trafficking charges, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, on September 28, 2018, a cooperating individual, at the direction of Nashua Police Department detectives, arranged to buy heroin from Brodie. On October 2, 2018, the cooperating individual contacted Brodie again and arranged to buy more heroin. Lab testing revealed that Brodie sold a combination of fentanyl and heroin to the individual.
Brodie is scheduled to be sentenced on January 15, 2020.
“Trafficking in fentanyl and heroin has caused great damage to the health and safety of people throughout New Hampshire,” said U.S. Attorney Murray. “The U.S. Attorney’s Office is working closely with all of our law enforcement partners to identify and prosecute those who are distributing these deadly drugs.”
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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Men from Lima and Willard sentenced to prison for child pornography crimesRead the Press Release
Two men from Northwest Ohio were sentenced to prison for crimes related to child pornography.
Dustin Davis, 42, of Lima, was sentenced to nine years in prison. He previously pleaded guilty to one count of receipt and distribution of child pornography.
Davis received and distributed numerous images of child pornography between September and November 2018, according to the indictment.
In a separate case, Karl Rogers, 35, of Willard, was sentenced to eight years in prison. Rogers was previously convicted at trial of receiving and distributing child pornography.
The Department of Homeland Security investigated the Davis case. The FBI and Ohio Internet Crimes Against Children investigated the Rogers case. Assistant U.S. Attorney Tracey Ballard Tangeman prosecuted both cases.
Members of Nationwide Child Exploitation Enterprise Sentenced to PrisonRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that the following sentences were handed down this week for defendants’ participation in a nationwide child exploitation enterprise and child pornography conspiracy occurring over the online communications service Discord: (a) Andrew Dowdle, 47, of Oswego, New York, was sentenced to 16 years’ imprisonment and 15 years of supervised release; (b) Carl Masters, 44, of Lawrence, Kansas, was sentenced to 27 years’ imprisonment and a lifetime of supervised release; and (c) Ric Crossfield, Jr., 24, of Queens, New York, was sentenced to 14 years’ imprisonment and 40 years of supervised release. All three defendants will be required to register as sex offenders upon their release from incarceration. All sentences were imposed by United States District Judge Harvey Bartle III.
The case represents the first child exploitation enterprise prosecution ever brought in the Eastern District of Pennsylvania.
The sentenced defendants and their co-conspirators congregated on Discord, an Internet communications service permitting users to create “servers” (essentially chat rooms with certain advanced features) typically organized around a particular common interest. In the case of the sentenced defendants and their co-conspirators, their common interest was child pornography streamed via web camera or cell phone camera over any of a number of video-streaming platforms (including Omegle, Skype, live.me, Snapchat, Periscope, musical.ly, YouNow and others).
Over various Discord servers, the defendants and the other enterprise members encouraged one another to produce child pornography by communicating over the Internet directly with minors and enticing them to broadcast sexually explicit videos of themselves, and then to share the results of their successful efforts (which they described as “wins”) with other members of the group. The members also provided each other with links to child pornography and technical advice designed to facilitate the viewing and retention of child pornography videos. Hundreds of minor children were victimized by the enterprise, and vast quantities of child pornography were produced.
Each of these sentences followed a previous guilty plea. Dowdle pled guilty to conspiracy to advertise child pornography on April 8, 2019. Masters pled guilty to engaging in a child exploitation enterprise and conspiracy to advertise child pornography on April 25, 2019. Crossfield pled guilty to engaging in a child exploitation enterprise and conspiracy to advertise child pornography on April 17, 2019.
“The harm caused by any child exploitation is devastating and long-lasting,” said First Assistant U.S. Attorney Williams. “In this case, the impact can be multiplied by the hundreds of victims these defendants and others manipulated for their own benefit. There can be no doubt that children across the nation, and the world, are safer now that these defendants are off the street. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Seth M. Schlessinger and Trial Attorneys Lauren E. Britsch and Kaylynn N. Foulon of the Department of Justice’s Child Exploitation and Obscenity Section.
Maine Woman Sentenced to Prison and Home Confinement for Promoting ProstitutionRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Lourdes Suero, 46, of Biddeford, Maine, was sentenced today by U.S. District Court Judge Nancy Torresen to five months in prison and three years of supervised release for using a facility of interstate commerce to promote prostitution. After completing her prison sentence, Suero must serve up to five months of home confinement as a condition of supervised release. She pleaded guilty on March 18, 2019.
Court records reveal that on April 22, 2017, Suero went to a motel in Scarborough, Maine, where she met up with her adult son, Isaac Suero, and the female victim, who was 15 years old. The defendant booked a room at the motel for the evening of April 22, exchanged telephone numbers with the victim, and left the victim in the rented motel room. The defendant and the victim later texted about the victim’s prostitution activities, with the defendant agreeing to drive the victim to meet with a client. The victim engaged in multiple commercial sex acts while she was staying in the room the defendant rented, and ultimately left the motel on her own the following day. The defendant’s son, Isaac Suero, was sentenced in a related case in June to nine years in prison for conspiracy to commit sex trafficking of a minor. Records in that case show that in the days before Isaac Suero and the female victim met with the defendant in Scarborough, Isaac Suero was trafficking the victim in the Bangor area.
The District of Maine is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
The Southern Maine Gang Task Force—comprised of investigators from the FBI; the Portland, South Portland and Lewiston Police Departments; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration—investigated the case. The Androscoggin County Sheriff’s Office and District Attorney’s Office also provided assistance.
MEDIA ADVISORY: United States Attorney Mike Stuart to Hold Press Conference in Beckley TomorrowRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart, joined by federal, state and local law enforcement officials, will hold a press conference in Beckley on Thursday, September 26, 2019 at 1:30 p.m. to discuss law enforcement actions of significant interest.
Where: Robert C. Byrd Federal Building
110 North Heber Street
Beckley, WV
When: Thursday, September 26, 2019 @ 1:30 p.m.
Follow us on Twitter: SDWVNews
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Lynn Man Sentenced for Multi-Million Dollar Lottery Ticket ScamRead the Press Release
BOSTON - A Lynn man was sentenced on Monday, Sept. 23, 2019, for tax fraud charges in connection with a “ten-percenting” scheme, in which he purchased millions of dollars’ worth of winning Massachusetts state lottery tickets at a discount in order to help the ticket holders avoid taxes on the winnings.
Clarance Jones, 80, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to two months in prison and two years of supervised release with the first six months to be served in home confinement. In May 2019, Jones pleaded guilty to conspiring to commit tax fraud and filing false tax returns.
Co-conspirators George Kinslieh, 69, pleaded guilty to filing false tax returns and was sentenced to one year of probation, and Bhavna Patel, 44, pleaded guilty to one count of conspiring to defraud the Internal Revenue Service and was sentenced to one year of probation and ordered to pay a $1,000 fine.
From at least 2013 through 2015, Kinslieh and Patel, who were store owners, and others, purchased winning lottery tickets from the ticket holders for cash, at a discount to the value of the tickets, thereby allowing the ticket holders to avoid reporting the winnings on their tax returns – a scheme known as “ten-percenting.” Kinslieh and Patel gave the winning tickets to Jones, who presented them to the Massachusetts State Lottery Commission as his own, and collected the full winnings. Jones reported the winnings on his tax returns, but offset them with purported gambling losses. Jones and the store owners then shared the excess winnings.
For the tax years 2011 through 2017, Jones paid less than $16,000 in federal tax on a total of approximately $52,000 of reported income. During this period, Jones claimed that he was a professional gambler and that all of his winnings were offset by alleged gambling losses. Patel and Kinslieh did not report to the Internal Revenue Service or pay taxes on the income that they received from the ticket scheme.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. The Massachusetts State Lottery Commission provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit prosecuted the cases.
Lowell, Massachusetts Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Jesus Lopez, 27, of Lowell, Massachusetts, pleaded guilty in federal court on Tuesday to distributing a controlled substance, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, between October 26, 2017 and January 31, 2018, law enforcement officers used a cooperating individual to make three separate controlled purchases of fentanyl from Lopez in Hudson, New Hampshire.
Lopez is scheduled to be sentenced on January 15, 2020.
“Interstate fentanyl trafficking presents a grave risk to the health and safety of the citizens of New Hampshire,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners to identify and prosecute those who distribute this deadly drug. I commend the New Hampshire State Police for their efforts in this case.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Long-Term FBI Investigation Shutters Large Akron to West Virginia Drug Trafficking OrganizationRead the Press Release
21 Total Individuals Indicted for Roles in Drug Conspiracy
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced multiple indictments today charging numerous individuals with participating in a conspiracy to distribute methamphetamine and heroin which operated between Akron, Ohio and the Southern District of West Virginia. The indictments and subsequent arrests resulted from an extensive, joint investigation spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ona Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. Also included in the charges is information uncovered in a separate investigation conducted by the Huntington Police Department. The investigation resulted in two indictments charging a total of 21 individuals for their roles in distributing large quantities of methamphetamine and heroin, primarily in Cabell, Putnam, and Kanawha Counties in the Southern District of West Virginia.
“This case demonstrates the incredible commitment of federal, state and local law enforcement to work collaboratively and cooperatively across jurisdictional boundaries to shut down the pipeline of drugs flowing into West Virginia,” said United States Attorney Mike Stuart. “My Office has spearheaded many, many takedowns but this one is particular important. Indictments by a West Virginia grand jury are being executed today in Akron and West Virginia. Search warrants were executed and, trust me, this is dangerous work. I always pray for the safety of law enforcement involved in the arrests. Those arrested in Akron will be brought to West Virginia and prosecuted in West Virginia. When I took my oath of office nearly two years ago, I did so with the absolute conviction that I would do all in my power to root out the drug dealers, drug thugs and poison peddlers that have caused so much devastation, despair and death. As a son of West Virginia, my heart aches for the effects of this scourge on our people, our families and our children. I am impassioned to end this scourge. We will continue to do everything within our power and use every available resource to disrupt the supply of deadly drugs coming into our state, prosecute those responsible to the fullest extent of the law, and protect the people of West Virginia.”
"Drug dealers are trying to take advantage of the addiction problem this community and the entire state faces," said FBI Pittsburgh Special Agent in Charge Robert Jones. "They have chosen West Virginia to do business, but I’m here to tell them today, to take their business elsewhere. We and our law enforcement partners will use every tool we have to stop criminals from exploiting the vulnerable people."
This long-term investigation uncovered an ongoing scheme to transport large quantities of crystal methamphetamine and heroin from Akron to the Southern District of West Virginia. The drugs were then distributed across the Southern District, primarily in Cabell, Putnam, and Kanawha Counties. During the investigation, agents were able to purchase large quantities of methamphetamine and seize large quantities of methamphetamine and heroin. It is believed that the shuttering of this drug conspiracy will continue to address and curtail the availability of highly pure methamphetamine and heroin in the Southern District.
The investigation was a collaborative effort between numerous federal, state and local law enforcement partners and today’s actions would not have been possible without the seamless collaboration of all involved agencies. The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Lexington Man Gets 8 Years in Federal Prison on Firearm ChargeRead the Press Release
Columbia, South Carolina -- United States Attorney Sherri A. Lydon announced today that Jason Cory Dix, age 42, of Lexington, was sentenced to 99 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition. United States District Judge J. Michelle Childs of Columbia imposed the sentence. After 99 months, Dix will remain under court-ordered supervision for an additional 3 years. There is no parole in the federal system.
Evidence presented in court established that on June 8, 2018, a Deputy with the Lexington County Sheriff’s Department was working patrol and turned into a gas station on South Lake Drive in Lexington. As he turned into the parking lot, he saw a black SUV waiting to exit the lot. The driver, later identified as Dix, quickly grabbed his seatbelt and fastened it, and as Deputy Smith drove past Dix he could not see a tag affixed to the rear of the SUV. As Deputy Smith turned around, he saw the SUV traveling at a high rate of speed and then run the red light at the intersection of Southwood Drive and Old Orangeburg Road. The Deputy activated his blue lights and siren to initiate a traffic stop, but Dix failed to stop. Dix reached speeds of 104 mph before colliding with another vehicle, the driver of which was taken to the hospital with non-life threatening injuries. When the Deputy searched the SUV, a Ruger P-89 9mm and two loaded magazines were found in the floorboard of the vehicle. Dix admitted that the firearm and ammunition were his.
Federal law prohibits Dix from possessing firearms and ammunition based upon multiple prior state convictions: a 1996 assault and battery of a high and aggravated nature, a 1998 possession of crack cocaine, three counts of breaking and entering a motor vehicle in 1999, a 2005 manufacturing methamphetamine and trafficking methamphetamine, and a 2016 manufacturing methamphetamine 2nd offense. Dix was on probation at the time of the June 18, 2018, offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Special Assistant United States Attorney Casey Rankin Smith of the Eleventh Judicial Circuit Solicitor’s Office prosecuted the case.
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Lawrence Man Sentenced to Prison for Conspiracy to Distribute FentanylRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Worcester in connection with a 2017 fentanyl trafficking conspiracy.
Ernesto Rodriguez, 49, was sentenced by U.S. District Court Judge Timothy S. Hillman to 20 months in prison and three years of supervised release. Rodriguez previously pleaded guilty to conspiring to distribute in excess of 40 grams of fentanyl.
In May 2019, co-defendant Jorge Burgos, 40, of Leicester, was sentenced to 60 months in prison and 40 months of supervised release, and in August 2019, another co-defendant, Joshua Sanchez, a/k/a Manuel Peguero, was sentenced to 34 months in prison and three years of supervised released. The last co-defendant, Carlos Rodriguez, previously pleaded guilty and is scheduled to be sentenced on Oct. 9, 2019.
As a result of various wiretaps capturing the defendants’ discussions of sales and purchases of fentanyl in November and December 2017, law enforcement agents conducted surveillance of Rodriguez participating in fentanyl sales on multiple occasions. On Dec. 20, 2017, after intercepted communications suggested that a co-defendant would be delivering 50 grams of fentanyl to a residence in Leicester, Mass., agents stopped the co-defendant’s vehicle and recovered just under 50 grams of fentanyl. That day, an additional 40 grams of fentanyl were turned over to authorities by Rodriguez.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Leicester Interim Police Chief Kenneth Antanavica made the announcement. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.
Laplace Man Pleads Guilty to Federal Drug and Firearm ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that ANDREW ANDERSON, age 38, a resident of LaPlace, Louisiana, pleaded guilty on September 23, 2019 to a three-count Superseding Bill of Information. In Count One, ANDERSON pled guilty to possession with the intent to distribute a quantity of a mixture or substance containing a quantity of heroin, cocaine base, and cocaine hydrochloride. In Count Two, ANDERSON pled guilty to possession of firearms in furtherance of drug trafficking crimes. In Count Three, ANDERSON pled guilty to being a convicted felon in possession of firearms and ammunitions.
The Honorable District Court Judge Lance Africk will sentence ANDERSON on January 8, 2020. ANDERSON faces a maximum sentence of up to twenty years of imprisonment, a fine up to $250,000.00, a period of supervised release not less than three years, and a mandatory assessment fee of $100.00, as it relates to Count One. For Count Two, ANDERSON faces a mandatory minimum sentence of five years of imprisonment, to run consecutive to any other sentence imposed by the court, a fine up to $250,000.00, a period of supervised release up to five years, and a mandatory assessment fee of $100.00. As it relates to Count Three, ANDERSON faces a maximum sentence of ten years imprisonment, a fine up to $250,000.00, a period of supervised release up to three years, and a mandatory assessment fee of $100.00.
This case was brought as part of Project Safe Neighborhoods (“PSN”), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. PSN 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.
U.S. Attorney Peter G. Strasser praised the work of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. John Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Kidnapper Michael Webb Convicted of Abducting 8-Year Old GirlRead the Press Release
Kidnapper Michael Webb has been found guilty of abducting an 8-year-old girl and holding her captive for eight hours, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a two-day trial, a federal jury in Fort Worth, Texas convicted Webb, 51, of kidnapping after less than 10 minutes of deliberation.
“Today’s jury verdict represents closure and consequence -- closure for the family and consequence for Michael Webb,” said U.S. Attorney Nealy Cox. “Early on, I pledged to the family that my office would seek justice on behalf of this victim, this family, and this community. As a prosecutor and a mother, it was important for me to take part in presenting this case to a jury. We’re glad this jury delivered swift justice.”
"Today's verdict underscores the FBI's commitment to aggressively pursue those who would prey on the most vulnerable in our community," said Special Agent in Charge Matthew J. DeSarno of the FBI's Dallas Field Office. "I am proud of the outstanding collaboration in this case between the FBI's Child Exploitation Task Force, the Fort Worth Police Department's Major Case Unit Task Force, and the many citizen volunteers who worked tirelessly to help bring the victim home safely. The critical role volunteer searchers and other members of the public played in recovering the victim cannot be overstated, and the FBI is grateful for their assistance.”
According to evidence presented at trial, Webb grabbed the child as she and her mother were walking down Fort Worth’s 6th Avenue at 6:38 p.m. on Saturday, May 18. Neighborhood surveillance video shows the victim’s mother knocked to the ground as Webb’s car drives away.
The victim’s mother testified, describing her daughter as “brave, strong, and smart” before describing for the jury the horrific details of the “physical fight” for her daughter’s life.
In a three-hour recorded interview with the FBI, Webb confessed to the kidnapping, admitting that after successfully fighting off the child’s mother, he drove to a church parking lot. Later that evening, he admitted that he took the girl to Forest Hill’s WoodSprings Suites hotel, where he carried the child into a room and held her captive.
It was around midnight when a tip led Forest Hill police officers to Webb’s room. Shortly before their arrival, Webb admitted to threatening the girl, and hiding the girl from law enforcement in a small laundry basket. The officers, having visually inspected the room, left without finding the child.
Meanwhile, friends, volunteers, and law enforcement canvassed the city of Fort Worth looking for the missing girl. It was ultimately the efforts of a family friend who spotted Webb’s Ford sedan and called 911. Fort Worth Police Department responded and confirmed that there appeared to be blood on the front passenger seat. Law enforcement then acted quickly to gain entry into the hotel room, rescuing the victim who was found hidden in the laundry basket.
Jurors heard an emotional, “We got her, we got her!” from officers who announced the news over the radio moments after they found the girl. “He’s in custody; we have her.”
Webb, who has been in federal custody since his arrest on May 19, faces up to life in federal prison. A sentencing date has not yet been set.
The investigation was conducted by the Federal Bureau of Investigation’s North Texas Child Exploitation Task Force, the Fort Worth Police Department’s Major Case Unit Taskforce, which includes representatives of local law enforcement around the region, Homeland Security Investigations and the Texas Department of Public Safety. U.S. Attorney Erin Nealy Cox and Assistant U.S. Attorney Aisha Saleem, the District’s Project Safe Childhood Coordinator, are prosecuting the case. U.S. District Judge Reed C. O’Connor presided over the trial.
Jury Finds Brooklyn Man Guilty of Conspiracy and Attempting to Provide Material Support to ISISRead the Press Release
A jury in Brooklyn returned a verdict yesterday finding Dilkhayot Kasimov, 31, a citizen of Uzbekistan and resident of Brooklyn, New York, guilty of conspiracy and of attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS). The verdict followed a one-week trial before United States District Judge William F. Kuntz, II. When sentenced, Kasimov faces up to 30 years’ imprisonment.
“Dilkhayot Kasimov worked to support ISIS, including by collecting and giving money to another individual to fund his travel to join the terrorist group. The jury has held Kasimov accountable for his crimes,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division is committed to help defend the nation against foreign terrorist groups and those who support them. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“As found by the jury, Kasimov was part of a conspiracy in which he willingly and eagerly sought to help fund a foreign fighter’s travel and expenses in Syria to wage violent jihad,” stated United States Attorney Richard P. Donoghue for the Eastern District of New York. “The Department of Justice and our law enforcement partners will continue working relentlessly to protect our country from those who would provide support of any kind to terrorists seeking to harm the United States and its allies.”
“This verdict should serve as a warning to those who provide support of any kind to foreign terrorist organizations and their sympathizers,” stated FBI Assistant Director-in-Charge Sweeney. “Kasimov joins a growing list of individuals facing significant jail time for their efforts to fund or carry out acts of terror. The public should know that the FBI continues to make every effort to protect Americans at home and abroad, and we’ll continue to work with our international partners to mitigate the threat posed by terrorists and would-be terrorists worldwide.”
“This case highlights how vital our work is in intercepting and halting those among us who remain willing to support the terrorism that threatens innocent lives,” stated NYPD Commissioner O’Neill. “It shows our commitment to remaining vigilant, with our law enforcement partners, against all forms of terrorist threats around the world and here at home.”
The evidence at trial established that Kasimov’s co-conspirators, Abdurasul Juraboev and Akhror Saidakhmetov, planned to travel to Syria to fight on behalf of ISIS, and Kasimov provided money – his own and cash collected by others – to help fund Saidakhmetov’s travel and expenses. On the evening of Saidakhmetov’s scheduled departure in February 2015, Kasimov drove to John F. Kennedy International Airport, met Saidakhmetov at Terminal 7 and handed him $1,600 in cash on behalf of himself, co-conspirator Abror Habibov and others.
Co-conspirators Juraboev, Saidakahmetov and Habibov, as well as co-conspirators Akmal Zakirov and Azizjon Rakhmatov, have previously pleaded guilty. Juraboev and Saidakahmetov were each sentenced to 15 years’ imprisonment. Habibov, Zakirov and Rakhmatov are awaiting sentencing.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, David K. Kessler, and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
Jury Convicts Johnstown Man of Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was found guilty after a three-day jury trial of distribution of crack cocaine, U.S. Attorney Scott W. Brady announced today.
Clarence M. Cosby, 37, of Johnstown, Pa., was convicted of distributing a quantity of cocaine base, commonly known as "crack," a Schedule II controlled substance on July 5, 2017.
U.S. District Judge Kim Gibson scheduled sentencing for Cosby on February 6, 2020, at 10 a.m. The law provides for a maximum sentence of 30 years in prison and a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and prior criminal history of the defendant.
The case is being prosecuted by Assistant U.S. Attorney Maureen Sheehan-Balchon.
U.S. Attorney Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigations and the Cambria County Drug Task Force for the investigation leading to the prosecution of Clarence Cosby.
Judge Delgado heads to prisonRead the Press Release
HOUSTON – A Texas state district judge has been ordered to federal prison following his multiple convictions of conspiracy, bribery and obstructing justice, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
A federal jury in Houston convicted Rodolfo “Rudy” Delgado, 66, of Edinburg, July 11, following a six-day trial of one count of conspiracy, three counts of federal program bribery, three counts of travel act bribery and one count of obstruction of justice.
Today, U.S. District Judge Alfred Bennett handed Delgado a 60-month sentence to be immediately followed by two years of supervised release. At the hearing, the court heard additional evidence and testimony that detailed the value of the bribery activities and its impact on South Texas. In handing down the sentence, the court noted that a corrupt judge, who abuses the trust the public placed in him to enrich himself, undermines the integrity of the entire criminal justice system and tears at the very fabric of our society.
“The sentencing of Delgado sends a strong message to any public official who chooses to serve him or herself rather than their community,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division. “As this case illustrates, the FBI will tirelessly pursue those who betray the public trust. We can only hold corrupt officials accountable if people refuse to accept this behavior and are willing to cooperate and come forward with information.”
Delgado was a justice in the 13th Court of Appeals for the State of Texas, having been elected in November 2018. He resigned from that position following his conviction.
Prior to that, he was previously the presiding judge for the 93rd District Court for the State of Texas, which has jurisdiction over Texas criminal and civil cases located within Hidalgo County. As a district judge, Delgado conspired with an attorney from January 2008 to November 2016 to accept bribes in exchange for favorable judicial consideration on criminal cases pending in his courtroom.
As part of the investigation, Delgado also accepted bribes on three separate occasions in exchange for agreeing to release three of the attorney’s clients on bond in cases pending before his court. The first two bribes totaled approximately $520 in cash and the third bribe - in January 2018 - totaled approximately $5,500.
After Delgado learned of the FBI’s investigation, he also attempted to obstruct justice by contacting the attorney and providing a false story about the payments.
Previously released on bond, Delgado was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys Arthur R. Jones and Robert Guerra are prosecuting the case along with Trial Attorney Peter Nothstein of the Criminal Division’s Public Integrity Section.
Ithaca-Area CPA Sentenced to 87 Months for Bankruptcy Fraud, Mail Fraud, and Money LaunderingRead the Press Release
BINGHAMTON, NEW YORK - Andrew N. LaVigne, age 66, of Lansing, New York, was sentenced today in federal court in Binghamton to serve 87 months in prison for bankruptcy fraud, mail fraud, and money laundering, announced United States Attorney Grant C. Jaquith, James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigations (IRS-CI), New York Field Division.
Senior United States District Judge Thomas J. McAvoy also ordered LaVigne to pay over $3.6 million in restitution to his victims.
LaVigne, a Certified Public Accountant (“CPA”) who practiced in the Ithaca, New York area for more than 30 years, filed for personal bankruptcy in 2004. At the time, he owed approximately $7.6 million to over 80 unsecured creditors following a failed scheme to use their money to purchase sports and entertainment memorabilia for resale. During the course of LaVigne’s years‑long bankruptcy proceedings, he claimed that his only asset was his home. He paid back no money to his 80 investors. In pleading guilty, LaVigne admitted that during his bankruptcy he used his CPA practice’s bank accounts to conceal between $3.5 and $9.5 million in assets from the United States Bankruptcy Court and the Office of the United States Trustee. LaVigne laundered money by depositing funds unrelated to his CPA practice into his business accounts and then using that money for his own benefit and that of his family, including buying himself sports memorabilia and writing checks to himself totaling tens of thousands of dollars that were never disclosed in his bankruptcy proceeding.
In pleading guilty, LaVigne also admitted to defrauding an elderly client in a $4.6 million mail fraud scheme. Between 2014 and 2016, LaVigne convinced the elderly victim to pay $3.6 million for shares of a company that LaVigne created, which LaVigne claimed would develop a piece of waterfront property on Pier Road in Ithaca. After the victim bought 90% of the company, LaVigne obtained an additional $1 million from her, purportedly as a further investment in the company. LaVigne did not use the $1 million to invest in the company, and he never developed the property. Instead, he used the victim’s money for his own purposes, including writing checks to himself, paying for the construction of a house for a family member, and funding payroll for his CPA practice. LaVigne also laundered payments he received from this scheme through his CPA practice accounts.
United States Attorney Grant C. Jaquith said, “Bankruptcy is intended to give honest debtors a fresh start. Andrew LaVigne is not that honest debtor. He abused the bankruptcy process for his own gain and attempted to leave his creditors with nothing while he hid and spent millions of dollars. Mr. LaVigne’s crimes did not stop there – he lied to an elderly client and defrauded her of millions of dollars that he spent on himself, his family, and his business. Mr. LaVigne’s frauds cost his victims dearly, and I am grateful to our partners at the IRS, the FBI, and the Office of the United States Trustee for helping to bring him to justice.”
“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously,” said James N. Hendricks, Special Agent in Charge of the Federal Bureau of Investigation's (FBI) Albany Field Office. “We will continue working with our law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”
“IRS Criminal Investigation uses financial investigative expertise to pursue those individuals who engage in corruption as demonstrated in this case by Mr. LaVigne.” said Jonathan D. Larsen, IRS Special Agent in Charge of the New York Field Office, “Money laundering and fraud constitutes a serious threat to our communities and to the integrity of our financial system; today’s sentence is an example of how the FBI and the IRS work together to make a formidable team as we prosecute the offenders.”
This case was investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI), following a referral from the Office of the United States Trustee for the Northern District of New York. It was prosecuted by Assistant U.S. Attorneys Carina H. Schoenberger and Michael F. Perry.
ICE Deportation Officer Arrested on Federal ‘Structuring’ Charges Alleging He Hid Assets from His Then-Wife in Divorce CaseRead the Press Release
LOS ANGELES – A U.S. Immigration and Customs Enforcement deportation officer was arrested today on federal “structuring” charges alleging that he made cash withdrawals and deposits totaling nearly $100,000 designed to circumvent federal reporting requirements and also to conceal assets from his then-wife, who was divorcing him.
Vardan Keshishyan, 47, of Glendale, has been charged in a federal grand jury indictment with two felony counts of structuring of currency transactions to evade reporting requirements. He is expected to appear in United States District Court in downtown Los Angeles to be arraigned on the charges later today.
According to the indictment, in January 2015, Keshishyan deposited approximately $96,369 into a bank account he solely owned and controlled. That amount was the proceeds of the sale of the home he shared with his then-wife, who had filed for divorce two months earlier, according to the indictment.
In January and February of 2015, Keshishyan allegedly made 11 cash withdrawals, each of approximately $9,000, and ultimately totaling $99,400. During one attempted withdrawal, a bank manager warned him that it is a crime to break up a transaction into small amounts to evade the $10,000 reporting requirement mandated by federal law, the indictment alleges. After the manager informed Keshishyan that the bank would have to file a report to comply with federal law, he allegedly cancelled the transaction and instead went to a different bank branch the same day to withdraw $9,000 in cash.
The indictment further alleges that Keshishyan lied under oath to the judge at a June 2015 court hearing in his divorce case, falsely telling the court he had lost $95,000 of the family home sale proceeds, in part, through a bad investment. The court also told Keshishyan that the government “investigate[s]” repeated withdrawals of cash and warned him that transactions above $10,000 generate an “automatic notification.”
Despite these admonishments from the court and the bank manager’s prior warning to Keshishyan about structuring being a crime, Keshishyan allegedly structured $99,000 back into his bank accounts as soon as his divorce was nearly final. On August 19, 2016, just one day after Keshishyan and his then-wife had reached an agreement regarding the terms of their divorce, Keshishyan deposited $9,000 in cash into a bank account that he controlled, the indictment alleges. In January 2017, the month after final judgment was entered in the divorce, Keshishyan allegedly made 10 more cash deposits – each of approximately $9,000 – into two bank accounts that he controlled.
If convicted on both counts, Keshishyan would face a statutory maximum sentence of 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by Department of Homeland Security-Office of Inspector General.
This case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Hingham Man Sentenced in Connection with International Money Laundering SchemeRead the Press Release
BOSTON - A Hingham man was sentenced yesterday in federal court in Boston in connection with an international money laundering scheme.
Yannick A. Minang, 26, was sentenced by U.S. District Court Judge F. Dennis Saylor to 46 months in prison, three years of supervised release, and forfeiture and restitution – each in the amount of $465,616. In January 2019, Minang pleaded guilty to a five-count indictment charging international money laundering, structuring, unlawful monetary transactions, concealment money laundering, and false statements.
In 2017, Minang opened, and caused to be opened, bank accounts in the names of sole proprietorship businesses as part of a business email compromise (BEC) scheme that targeted individuals about to purchase real estate. Generally, a BEC scheme is a sophisticated scam which targets businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques to cause individuals to transfer funds to accounts controlled by the scammers.
Minang’s scheme worked as follows: shortly before closing on properties, the victims received emails from their real estate agents or title companies containing wiring instructions that directed the victims to send funds to accounts that Minang and others had opened and controlled. The emails, however, were spoofed – made to appear to be coming from title company representatives and real estate agents, when in fact they were sent from email accounts created solely to carry out the fraud. After each deposit of fraudulent proceeds, the funds were wired to bank accounts abroad or withdrawn via structured cash withdrawals.
Earlier this year, Minang was charged in a separate federal indictment in connection with a similar, but different, business email compromise scheme. It is alleged that Minang committed that crime while charges in this case were pending.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, prosecuted the case.
Gulf Coast Health Care Fraud Law Enforcement Action Results in Charges Against 34 IndividualsRead the Press Release
WASHINGTON – Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud. The conduct allegedly resulted in more than $515 million in fraudulent billings. Those charged included physicians, licensed social workers, as well as other medical and business professionals. In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.
The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.
“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”
“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry. “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”
“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community. As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems. Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud. I want to commend the hard work of all who have been instrumental in this nationwide effort.”
“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”
“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida. “This indictment is the next step in holding these two defendants accountable for their actions.”
“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed. These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office. “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”
“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region. “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”
“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office. “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI. The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”
“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office. “Our agency is stepping up our efforts to combat the opioid problem facing our nation. These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”
*********
Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Southern District of Mississippi, three defendants have been charged.
Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme. The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million. The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.
Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes. The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE. The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.
In the Middle District of Louisiana, four defendants have been charged.
J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship. According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted. The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.
Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid. Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not. According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million. The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana.
In the Eastern District of Louisiana, three defendants have been charged.
Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market. The case is being prosecuted by Trial Attorney Jared Hasten.
Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills. The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.
In the Northern District of Florida, two defendants have been charged.
Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided. According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid. The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.
*********
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
# # #
19-1029
Gulf Coast Health Care Fraud Law Enforcement Action Results in Charges Against 33 IndividualsRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud. The conduct allegedly resulted in more than $515 million in fraudulent billings. Those charged included physicians, licensed social workers, as well as other medical and business professionals. In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.
The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.
“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”
“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community. As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems. Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud. I want to commend the hard work of all who have been instrumental in this nationwide effort.”
“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”
“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida. “This indictment is the next step in holding these two defendants accountable for their actions.”
“Healthcare fraud harms us all," said U.S. Attorney Mike Hurst of the Southern District of Mississippi. "When individuals put their greed above the interests and well-being of our men and women in uniform and our veterans, this office will be there to swiftly bring them to justice.”
“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry. “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”
“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed. These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office. “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI
will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region. “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”
“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office. “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI. The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”
“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office. “Our agency is stepping up our efforts to combat the opioid problem facing our nation. These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”
*********
Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Southern District of Mississippi, three defendants have been charged.
Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme. The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million. The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.
Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes. The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE. The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.
In the Middle District of Louisiana, four defendants have been charged.
J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship. According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted. The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.
Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid. Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not. According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million. The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana.
In the Eastern District of Louisiana, three defendants have been charged.
Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market. The case is being prosecuted by Trial Attorney Jared Hasten.
Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills. The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.
In the Northern District of Florida, two defendants have been charged.
Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided. According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid. The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.
*********
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Gulf Coast Health Care Fraud Law Enforcement Action Results in Charges Against 33 IndividualsRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud. The conduct allegedly resulted in more than $515 million in fraudulent billings. Those charged included physicians, licensed social workers, as well as other medical and business professionals. In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.
The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.
“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”
“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community. As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems. Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud. I want to commend the hard work of all who have been instrumental in this nationwide effort.”
“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”
“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida. “This indictment is the next step in holding these two defendants accountable for their actions.”
“Healthcare fraud harms us all," said U.S. Attorney Mike Hurst of the Southern District of Mississippi. "When individuals put their greed above the interests and well-being of our men and women in uniform and our veterans, this office will be there to swiftly bring them to justice.”
“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry. “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”
“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed. These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office. “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI
will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region. “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”
“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office. “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI. The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”
“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office. “Our agency is stepping up our efforts to combat the opioid problem facing our nation. These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”
*********
Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Southern District of Mississippi, three defendants have been charged.
Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme. The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million. The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.
Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes. The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE. The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.
In the Middle District of Louisiana, four defendants have been charged.
J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship. According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted. The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.
Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid. Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not. According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million. The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana.
In the Eastern District of Louisiana, three defendants have been charged.
Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market. The case is being prosecuted by Trial Attorney Jared Hasten.
Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills. The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.
In the Northern District of Florida, two defendants have been charged.
Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided. According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid. The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Greenwich Man Sentenced to Prison for Operating Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEONID POLLAK, also known as “Lenny,” 59, of Greenwich, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for operating an investment fraud scheme.
According to court documents and statements made in court, Pollak owned a Norwalk-based company that organized trade shows and expositions throughout the U.S. In mid-2013, Pollak induced an acquaintance to invest money in a new business venture that was supposed to organize similar expositions in Ukraine. Instead of using the money to build the new business, Pollak spent at least $185,000 on unrelated business and personal expenses, including his home mortgage loan and private school tuition.
Judge Hall ordered Pollak to pay $236,049 in restitution to the victim.
Pollak was arrested on September 20, 2018. On March 18, 2019, he pleaded guilty to one count of wire fraud and one count of making illegal monetary transactions.
Pollak, who is released on a $200,000 bond, is required to report to prison on December 9.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, with the assistance of the U.S. Secret Service and Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and Pilar Gonzalez.
Gang Member Sentenced to Federal Prison for Illegal Possession of a FirearmRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Randy Coy James Holmes, age 22, of Moses Lake, Washington, was sentenced today after having pleaded guilty on May 9, 2019, to being a felon in possession of a firearm. United States District Judge Salvador Mendoza, Jr., sentenced Holmes to a 37-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, a Grant County Sheriff’s Office deputy initiated a traffic stop on a vehicle with four occupants in Moses Lake, Washington. During the encounter, the deputy seized a stolen firearm from the vehicle’s rear passenger compartment and in close proximity to Holmes, a member of the Little Valley Locos street gang. Holmes is a previously convicted felon and is prohibited from possessing firearms. The firearm was submitted to the Washington State Patrol Crime Laboratory, which determined it contained a latent print belonging to Holmes.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting individuals who unlawfully possess firearms. Such offenses are serious and just punishment will be pursued against those individuals who violate the firearms laws. I commend the ATF, Grant County Sheriff’s Office and Washington State Patrol Crime Laboratory for their commitment to this successful prosecution.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Spokane Regional Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Grant County Sheriff’s Office, and the Washington State Patrol Crime Laboratory. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Grand Jury Indicts Shooting Suspect on Firearm ChargeRead the Press Release
On September 24, 2019 a Federal Grand Jury returned and indictment against ANDREW WEAVER, age 25, of Cheyenne, Wyoming for being a felon in possession of a firearm stemming from a shooting that occurred in Cheyenne on September 16th. Weaver made his initial appearance in front of Chief United States Magistrate Judge Kelly H. Rankin on September 25th and was ordered to be held in the custody of the United States Marshals Service. Weaver will have his arraignment and detention hearing on September 30th.
The Cheyenne Police Department along with agents of the FBI, DEA, and ATF continue to investigate the shootings of four people in Cheyenne on September 16, 2019. The United States Attorney’s Office is in contact with all agencies involved.
Mark A. Klaassen, United States Attorney for Wyoming, stated, “This indictment is a first step in an ongoing process. My office will continue to do all we can to investigate and develop this case and see that it’s charged appropriately. I appreciate the cooperation that is occurring between our local Cheyenne Police and our federal law enforcement agency partners in this effort.”
An indictment is an allegation and Mr. Weaver is presumed innocent until if and when proven guilty in court.
Fort Wayne Woman Sentenced to 63 MonthsRead the Press Release
FORT WAYNE – Jermesha Davis, age 28, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly Brady for possession with intent to distribute methamphetamine and heroin, announced U.S. Attorney Kirsch.
Davis was sentenced to 63 months in prison followed by 5 years of supervised release.
According to documents in this case, on July 28, 2018, Jermesha Davis was followed by Fort Wayne Police Department officers from her apartment to a residence where a search warrant was being executed as part of an ongoing narcotics trafficking investigation. Davis arrived driving a vehicle belonging to one of the occupants of the location being searched. Davis was also found to be in possession of a cell phone that the Fort Wayne Police Department had been tracking in connection with the investigation. It was determined that Davis did not have a valid driver’s license. A subsequent search of Davis’ home produced quantities of heroin, methamphetamine, and cocaine as well as a cutting agent often used by drug traffickers. Law enforcement also located two firearms in the kitchen.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Fort Wayne Man Sentenced to 117 Months in PrisonRead the Press Release
FORT WAYNE – Brandon Buchanan, age 29, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly Brady upon his plea of guilty for maintaining a drug-involved premises and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Buchanan was sentenced to 117 months imprisonment followed by 2 years of supervised release.
According to documents in this case, in March 2018 a search warrant was served on Buchanan’s residence in Fort Wayne. During the search, investigators located a loaded .357 caliber revolver, fentanyl, crack cocaine, marijuana, hypodermic syringes, approximately $1000 in US currency, evidence of narcotics dealing, along with multiple calibers of ammunition and magazine for various firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and the Indiana State Police. This case was handled by Assistant United States Attorneys Stacey R. Speith and Anthony Geller.
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Former Vice President of Synergy Concepts Pleads Guilty to Stealing FundsRead the Press Release
St. Louis, MO – Steven Walters, 52, of St. Peters, Missouri, pleaded guilty to one felony count of theft or embezzlement from an employee benefit plan. Walters appeared in federal court today before U.S. District Judge Rodney Sippel who accepted his plea and set his sentencing date for December 19, 2019.
According to court documents, Walters began his employment with Synergy Concepts Inc. on or about August 2001. In 2014, Walters was the Vice-President and Secretary of Synergy Concepts Inc. Defendant Walters, on behalf of Synergy Concepts Inc., acted as the co-trustee for a company retirement plan that was funded from voluntary contributions by the employees. From May of 2015 through August 2016, Defendant Walters, as an officer of Synergy Concepts, Inc., failed to transfer withheld funds destined for the retirement plan and instead diverted the funds for other purposes, including his own personal use. Defendant Walters did knowingly embezzle, steal and unlawfully and willfully abstract and convert to his own use the money, funds, securities, premiums, properties and other assets of the employee pension plan that resulted in a total loss of $72,817.27.
“Steven Walters abused his former fiduciary position as Trustee of the Synergy Concepts Retirement Plan by diverting employee contributions and loan repayments for his personal use. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the integrity of employee benefit plans,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
This case is being investigated by the Department of Labor, Office of Inspector General. Assistant U.S. Attorney Gwendolyn Carroll is handling the case for the U.S. Attorney’s Office.
Former Owner and Operator of Jannah Healthcare Charged with Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District, announced that a federal grand jury in the district returned an indictment charging Latoya Joseph with three counts of tax evasion, in violation of 26 U.S.C. § 7201.
Ms. Joseph was the owner and operator of Jannah Home Health Care, LLC (“Jannah”), a home health business providing personal care services primarily to Medicaid recipients in the Milwaukee area. According to the indictment, Joseph received more than $1.8M from Jannah in 2013, 2014, and 2015, but failed to file federal income tax returns for herself or the business for these years. The indictment alleges that Joseph willfully attempted to evade and defeat the proper assessment and payment of income taxes totaling approximately $640,000.
In a separate indictment also returned today, the grand jury has charged Ms. Joseph with scheming to defraud the Social Security Administration in connection with disability benefits that were paid to a Jannah employee.
“These charges allege serious abuses of federal programs, including the failure to pay taxes on income earned by a federally funded home-health agency,” said U.S. Attorney Krueger. “We are committed to prosecuting program fraud and tax cheating aggressively to protect federal funds.” Added Chicago IRS Criminal Investigation Special Agent in Charge Kathy Enstrom: “Today’s indictment alleges the misuse of Joseph’s standing in the community as a person providing vital services to those in need. IRS-Criminal Investigation remains committed to the investigation of those who violate the tax laws for their own benefit.”
These matters were jointly investigated by agents of the U.S. Internal Revenue Service – Criminal Investigation, agents of the Social Security Administration – Office of Inspector General, and agents of the U.S. Department of Health and Human Services - Office of the Inspector General. They are being prosecuted by Assistant United States Attorney Jonathan H. Koenig.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
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Former CEO Agrees to Plead Guilty to Embezzlement and Tax CrimesRead the Press Release
BOSTON – The former CEO and co-founder of a Boston-based mobile phone music streaming service, has agreed to plead guilty in connection with a scheme to embezzle hundreds of thousands of dollars from his employer and to file false tax returns.
David John, 56, who recently changed his name from David John Fondots, was charged by information with one count of wire fraud and one count of filing false tax returns. A plea hearing has not yet been scheduled. In June 2019, the defendant was arrested and charged by criminal complaint under the name David Fondots. According to court records, in June 2018, the government learned that the defendant changed his name from David John Fondots to David John but did not inform Pretrial Services.
According to the court documents, Fondots misappropriated company funds which he used for his personal benefit. From 2014 to 2016, Fondots caused his company to pay significant sums of money directly to himself, to a family member, and to companies controlled by a family member. Fondots used the embezzled funds to pay personal expenses for himself and his family, including car payments, legal fees, and travel, among other things. Fondots is also charged with failing to report the illegal income to the IRS over the period of his embezzlement scheme.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, restitution, and forfeiture. The charge of filing false tax returns provides a sentence of no greater than three years in prison, one year 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities & Financial Fraud Unit is prosecuting the case.
Florida and Georgia Health Care Fraud Law Enforcement Action Results in Charges against 67 IndividualsRead the Press Release
The Justice Department announced today a significant health care fraud enforcement operation across Florida and Georgia, involving charges against a total of 67 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare and Medicaid. The conduct allegedly resulted in more than $160 million in fraudulent billings. Those charged included physicians as well as other medical and business professionals. In addition, in the state of Florida, 16 defendants, including one licensed mental health professionals, have been charged with defrauding the Medicaid program out of over $1.2 million. Florida’s Medicaid Fraud Control Unit (MFCU) investigated these cases.
The charges announced today aggressively target schemes alleged to have billed Medicare, Medicaid and private insurance companies for medically unnecessary services, such as home health, prescriptions drugs and durable medical equipment.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of various other federal law enforcement agencies and state MFCUs. The Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI) also announced today that all appropriate administrative actions would be taken based on these charges.
“The defendants charged today allegedly bilked the American people to the tune of millions in fraudulent billings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “All Americans should stand with the Department as we fight the fight against these unscrupulous schemes in Florida, Georgia, and across the country.”
“Anyone who seeks to exploit our federal healthcare programs for personal gain and illicit profit should know that we will prosecute them to the fullest extent of the law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “The American people must have confidence in the healthcare services for which they pay and receive, and trust in those who administer them.”
“Health care programs provide vital services to Americans,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “Those who perpetuate these pervasive health care fraud schemes steal taxpayer dollars from intended beneficiaries and threaten the viability of government programs. We commend the coordinated and continued efforts of our federal law enforcement partners to root out fraud and abuse in our healthcare system.”
“The drug dealer stereotype involves violent gang members peddling poison in our streets, but often the illicit dealers wear white coats and work in medical offices,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “People who violate medical oaths and ethical codes to turn illegal profits by fueling the opioid crisis will find prosecutors and investigators working tirelessly to swap their lab coats for prison uniforms.”
“Being a healthcare professional in the Medicare program is a privilege, not a right. When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office. “Today’s arrests put corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
“FBI Atlanta and its Savannah Resident Agency are proud to have participated in this nationwide effort to help protect the much needed federal funds that Medicare provides,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “When providers are driven by greed and abuse the Medicare program, every tax paying citizen is a victim, especially those who use the federal funds for their health care needs. Improper billing inflates costs and the FBI and its law enforcement partners are determined to hold those who do it accountable.”
“The FBI and its federal, state and local partners are working tirelessly every day to detect and combat schemes like those announced today,” said Special Agent in Charge George L. Piro of the FBI’s Miami field office. “Despite our efforts, we still need the public's help in reporting suspicious activity. If anyone suspects they are a victim of health care fraud please call your local FBI office or the HHS Office of Inspector General.”
“We commend the law enforcement partnerships for this operation and pledge to continue our commitment to protecting the nation's federally funded healthcare system and the people who depend on it," said Special Agent in Charge Michael McPherson of the FBI’s Tampa Division.
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Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Northern District of Georgia, one defendant was charged.
Donald Graham, 49, of Smyrna, Georgia, a former employee of a metro Atlanta hospital, has been charged for allegedly stealing and selling individually identifiable health information that was used to submit fraudulent claims to Medicaid. Assistant U.S. Attorney Jeffrey A. Brown of the Northern District of Georgia and Assistant Attorney General Elizabeth Grofic of the Georgia Medicaid Fraud Control Unit are handling the case.
In the Southern District of Georgia, six defendants were charged and one civil complaint was filed.
Jenna Savage, 26 of Port Wentworth, Georgia; Norman Lee Burnsed, 27 of Port Wentworth, Georgia; Tucker Chambers, 21 of Ellabell, Georgia; Macaila Brown, 22 of Rincon, Georgia; and Cameron Hilliard, 26 of Savannah, Georgia, were indicted by a federal grand jury in Savannah with conspiracy charges under the Controlled Substances Act relating to the distribution of oxycodone, Adderall, alprazolam, and clonazepam. Assistant U.S. Attorneys Katelyn Semales and Marcela Mateo are prosecuting the case.
David L. Williford, 59, of Rincon, Georgia, a pharmacist, was charged by information with one count of acquiring a controlled substance (oxycodone) by misrepresentation, fraud, or forgery. Assistant U.S. Attorney Jonathan A. Porter is prosecuting the case.
Darien Pharmacy and Janice Ann Colter, 62, of Darien, Georgia, a pharmacist, were named in a civil complaint filed in federal court that accused Darien Pharmacy and Colter of filling prescriptions for controlled substances that the defendants knew or should have known were not issued for legitimate medical reasons, and by a provider not acting with the regular course of professional practice. Assistant U.S. Attorneys Bradford C. Patrick and Jonathan A. Porter are prosecuting the case.
In the Middle District of Florida, two defendants were charged.
Teresa Johnson, 53, of Lecanto, Florida, was charged by information with one count of conspiracy to commit health care fraud and submit fraudulent claims to Medicare, Medicaid, Tricare and ChampaVA. According to the indictment, Johnson owned and operated Tri-County Medical Billing and, from November 2016 through October 2018, knowingly submitted false and fraudulent claims on behalf of a medical doctor who owned clinics in Crystal River, Spring Hill and Celebration, Florida. HHS-OIG, FBI, DoD-OIG, VA-OIG and the Florida Office of Attorney General Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Kelley Howard-Allen is prosecuting the case.
Marcus Anderson, 34, of St. Petersburg, Florida, was charged in a thirteen-count indictment with health care fraud and aggravated identity theft for allegedly stealing rendering providers’ identities to submit more than $1.2 million in false and fraudulent claims to Medicaid. HHS-OIG and the Florida Office of Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Kristen A. Fiore will prosecute the case.
In the Southern District of Florida, 42 defendants were charged.
Ana Maria Fernandez, 62, and Berta Leon, 69, of Miami, Florida, were charged with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to use their company ABC Medical Solutions Corp. of Miami, to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah, Florida. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida is prosecuting this case.
Sara Tania Ruiz, 55, of Hialeah, and Maria Laura Prieto, 60, of Miami, were charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida is prosecuting this case.
Marisol Padilla, 48, of Hialeah, was charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
Juan Jose Mesa, 58, and Madelaine Varona, 47, both of Miami, owners and/or operators of All Excellent OT-PT Service LLC of Miami and Cruz Healthcare Corp. of Miami, respectively; Sandra Cardona, 47, of Hialeah, an allegedly unlicensed therapist; and Silvia Salvatori, 67, of Pembroke Pines, Florida, a licensed massage therapist, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud. Mesa and Varona were also charged with five and six counts of health care fraud, respectively. The charges stem from Mesa’s and Varona’s alleged roles in a scheme to defraud Part A of the Medicare program of more than $4 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters in exchange for patient referrals. Cardona and Salvatori, who were allegedly not licensed to provide physical therapy, accepted payment from a licensed physical therapist, paid by their co-conspirators, in exchange for allegedly obtaining signed patient visitation forms from Medicare beneficiaries used to submit false and fraudulent claims. This case was investigated by HHS-OIG and the FBI. The case is being handled by Assistant U.S. Attorney Kevin Larsen of the Southern District of Florida.
Ivan Bejerano, 49, of Miami, was charged by indictment with seven counts of health care fraud and one count of conspiracy to commit health care and wire fraud. According to the indictment, Dynamic Physical Rehab Inc. (Dynamic) was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From June 2017 through July 2019, Bejerano allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $2.5 million that falsely and fraudulently represented that various health care benefits, primarily physical therapy, were medically necessary, prescribed by a doctor, and had been provided by Dynamic to insurance beneficiaries of Blue Cross Blue Shield (BCBS). This case was investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorney Shannon Shaw of the Southern District of Florida.
Jocelyn De La Caridad Perez, 41, and Joaquin Guevara, 46, both of Miami, were charged by indictment with one count of conspiracy to receive health care kickbacks. Perez was also charged with one count of conspiracy to commit health care fraud and wire fraud, and Guevara was also charged with three counts of receipt of kickbacks in connection with a federal health care program. According to the indictment, Perez was an administrator of Joe Rehabilitation and Diagnostic, Inc. (Joe Rehab), an outpatient rehabilitation facility in Doral, Florida, that purportedly provided therapy services to Medicare beneficiaries. As part of the fraudulent scheme, Perez allegedly conspired with others to pay kickbacks and bribes for the referral of Medicare beneficiaries to Joe Rehab so their information could be used to submit fraudulent claims to Medicare for services purportedly provided, regardless of whether the Medicare beneficiaries needed or received the services. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Anne P. McNamara of the Southern District of Florida is prosecuting this case.
Deivys Ernesto Alvarez, 48, of Hialeah, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. According to the indictment, Alvarez was the owner of Diagnostic Center of Medley Inc., a Miami medical clinic. AP & JL Medical Center Inc. (AP & JL) was another Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. Alvarez and co-conspirators allegedly recruited and paid Comcast Corp. and Telemundo Corp. employees, through Diagnostic Center of Medley Inc., and referred those employees and/or the employees’ personal information to AP & JL to fraudulently bill BCBS. Alvarez and his co-conspirators allegedly submitted and caused the submission of false and fraudulent claims, via interstate wires, totaling approximately $800,500. This case was investigated by HHS-OIG and the FBI. This case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida.
Elba Cobos Baile, 60, and Yolanda Castano, 55, both of Miami, were charged by indictment with four counts of health care fraud and one count of conspiracy to commit health care fraud and wire fraud. Cobos and Castano were the owners and operators of Pharmacy Solution, a retail pharmacy in Miami-Dade County. The indictment alleges that from on or about March 1, 2012 to September 17, 2014, Cobos and Castano submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by Pharmacy Solution to Medicare beneficiaries. As a result of these false and fraudulent claims, Medicare prescription drug plan sponsors allegedly made payments funded by the Medicare Part D Program to the corporate bank accounts of Pharmacy Solution in the approximate amount of at least $2.1 million. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Christopher J. Clark of the Southern District of Florida is prosecuting this case.
Tania Rodriguez, 48, and Rafael Vidal, 61, both of Miami, were charged by indictment with one count of conspiracy to commit healthcare and wire fraud and seven counts of health care fraud. According to the indictment, the defendants participated in a conspiracy to use their company, American United Pharmacy Corp. of Miami, to offer and pay kickbacks for the referral of Medicare beneficiaries to their pharmacy, and to submit false and fraudulent claims to Medicare for prescription drugs that were not provided to Medicare beneficiaries. Assistant U.S. Attorney David Turken of the Southern District of Florida is prosecuting this case.
Ricardo Ignacio Perez, 54, and Ricardo Perez-Leon, 31, both of Miami, the owners and operators of three Miami pharmacies, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud; one count of conspiracy to defraud the United States and pay and receive health care kickbacks; and three counts of health care fraud. The indictment alleges that the defendants participated in a scheme to pay kickbacks and bribes to patient recruiters and to fraudulently bill Medicare drug plan sponsors for prescription medications. The indictment alleges that, during the course of the fraudulent scheme, the defendants received approximately $5.3 million from Medicare drug plan sponsors for prescription medications that were medically unnecessary, never provided and/or never purchased by the defendants’ pharmacies. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Tim Loper of the Fraud Section.
Steven Kahn, 61, of Boca Raton, and Pamela Edwin, 33, of Delray Beach, the owner and office manager, respectively, of a Broward county telemedicine company, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and three counts of wire fraud. Kahn was also charged with five counts of money laundering. The indictment alleges that the defendants paid kickbacks and bribes to physicians in exchange for signing doctors’ orders, and that the defendants then sold the doctors’ orders to Medicare providers who used the orders to submit approximately $39 million in fraudulent claims to Medicare. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Catherine Wagner of the Fraud Section.
Jordan Karlick, 33, of Boca Raton, Michael Moranz, 32, of Lake Worth, and Jordan Chibnick, 36, of Plantation, the owners of Palm Beach durable medical equipment (DME) companies, were charged by indictment with one count of conspiracy to commit healthcare fraud and wire fraud, one count of conspiracy to defraud the United States and pay kickbacks, four counts of health care fraud, and three counts of payment of kickbacks. The indictment alleges that the defendants paid kickbacks and bribes in exchange for signed doctors’ orders for DME, which the defendants used to fraudulently bill Medicare for over $23 million. The indictment alleges that defendants sought to impede Medicare beneficiary’s ability to return DME that they did not want or need to defendants’ companies, so that defendants could continue to bill Medicare for that DME. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Catherine Wagner of the Fraud Section.
Richard S. Mallia, D.P.M., 55, a podiatrist, was charged by indictment with one count of conspiracy to defraud the United States and to receive kickbacks, one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud, for his role in a health care fraud conspiracy that caused a loss of approximately $7.7 million to the Medicare program. The indictment alleges that Mallia accepted cash kickbacks in exchange for writing medically unnecessary home health prescriptions and also participated in a scheme to submit claims to Medicare for relatively expensive foot procedures that he never performed. This case was investigated by HHS-OIG, the FBI, and United States Secret Service. The case is being prosecuted by Trial Attorney Alexander Pogozelski of the Fraud Section.
Peter Port, 64, of Boca Raton, Brian Dublynn, 62, of Fort Lauderdale, and Jennifer Sanford, 57, of Hollywood, were charged for their alleged participation in a scheme to defraud private health insurance companies. Port, Dublynn and Sanford were each charged with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. In addition, Port and Dublynn were each charged with one count of conspiracy to commit money laundering and five counts of money laundering. The defendants caused Safe Haven Recovery Inc. (Safe Haven), a substance abuse treatment facility in Miami, and several clinical laboratories to submit false and fraudulent claims to health insurance plans for addiction treatment services that were not provided as billed and laboratory tests that were not medically necessary. This case was investigated by the FBI. This case is being handled by Trial Attorney David A. Snider of the Fraud Section.
Maribel Sera, 51, of Hialeah, was charged by information with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the information, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. HHS-OIG and the FBI investigated this case. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
Francisco Abreu Tartabull, 53, of Miami, was charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with his role in a $2.1 million private insurance fraud scheme. According to the indictment, Tartabull was the owner and operator of South Dade Medical Center Inc. (South Dade), a Miami medical clinic that purportedly provided Blue Cross Blue Shield insurance beneficiaries with various medical treatments and services. As part of the fraudulent scheme, Tartabull and his co-conspirators submitted more than $2.1 million in fraudulent claims to Blue Cross Blue Shield. These claims falsely represented that the benefits Tartabull’s clinic had billed insurance for were medically necessary, prescribed by a doctor, and had been provided by South Dade to these beneficiaries. As a result of these false claims, Blue Cross Blue Shield paid Tartabull’s clinic more than $920,000. Tartabull then used this ill-gotten money for his own personal use and benefit, and to further the fraud. The FBI investigated this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Florida Man Pleads Guilty to Wire Fraud as Part of an Investment Fraud Scheme Involving Baton Rouge Area VictimsRead the Press Release
United States Attorney Brandon J. Fremin announced today that Wallace Byers, age 59, of Miami, Florida, pled guilty to three counts of wire fraud before U.S. District Judge Brian A. Jackson. As a result of his conviction, Byers faces a significant term of imprisonment, a fine, and a period of supervised release.
According to admissions made as part of his guilty plea, between October 2014 and November 2018, Byers solicited victims in the Baton Rouge area and elsewhere to invest with his company, WBI Associates, Inc., promising victims large returns in a short time frame. Byers focused his solicitations on older individuals and those who had been victims of prior schemes. He promised his victims that the money would be invested, variously, in gold production, a lottery company, foreign currency, or “dark pools” or “blind pools.” Whenever his victims pressed for returns or refunds of their money, Byers gave various excuses for delays – the money was invested overseas, other individuals had to “sign off,” or more money needed to be invested before any was paid out. In truth, instead of investing the money as promised, Byers spent the money on personal expenditures, including among others, approximately $10,000 per month in rent for his residence in a Miami hotel, the lease of luxury cars, and gambling in casinos. Byers admitted that he received between $3,500,001 and $9,500,000 as a result of his scheme, $3,000,000 of which he sent to a Swiss bank account he controlled. Byers also admitted that he had two prior federal felony convictions, one of which was for a similar wire fraud scheme.
U.S. Attorney Brandon J. Fremin stated, “This plea demonstrates our commitment to investigate and prosecute criminals who target our community with financial scams and abuse. Defendants who illegally line their pockets by deceiving and defrauding elderly victims have our attention and will be duly investigated and prosecuted. I am grateful for the outstanding efforts of our prosecutors and the dedicated professionals at the FBI whose collaboration and contributions were critical to the success of this important matter.”
Bryan Vorndran, FBI New Orleans Special Agent in Charge stated, “Wallace Byers’ greed and pursuit of a lavish lifestyle depleted a number of victims in seven states of their life savings. Through an in-depth investigation, the FBI uncovered Byers’ detailed scheme of defrauding elders and vulnerable citizens for his own personal gain. I commend the hard work and dedication put forth by the investigative team and prosecutor to bring this case to justice. We urge the public to perform extensive research before investing with any company or individuals who promise large returns on your investments. Elder abuse is a top investigative priority for the FBI, if you believe you are a victim please contact the FBI at 1-800-CALL FBI or online at https://tips.fbi.gov.”
This matter is being investigated by the Federal Bureau of Investigations - Baton Rouge Field Office, and is being prosecuted by Assistant United States Attorney Elizabeth E. White, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana, and AUSAs Peter J. Smyczek and Demetrius D. Sumner.
The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/elderjustice.
Five Walton County Residents Charged in Drug Trafficking ConspiracyRead the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment, charging five defendants with federal drug trafficking offenses. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The defendants are:
• Kadeem Ingram, 29, DeFuniak Springs, Florida;
• Kenneth Ingram, 59, DeFuniak Springs, Florida;
• Terrell Burdette, 63, DeFuniak Springs, Florida;
• Sidney McGhee, 30, DeFuniak Springs, Florida; and
• Francis Muldowney, 59, Santa Rosa Beach, Florida
The indictment and arrests resulted from an ongoing Organized Crime Drug Enforcement Task Force Operation which targeted a drug trafficking organization alleged to be responsible for the distribution of cocaine and cocaine base throughout the northcentral panhandle of Florida since the beginning of 2019.
The charged defendants face penalties ranging up to 40 years imprisonment and fines up to $10,000,000.
The case was investigated by the Drug Enforcement Administration, the Walton County Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Bay County Sheriff’s Office, the Washington County Sheriff’s Office, the Lynn Haven Police Department, the Panama City Police Department, and the Panama City Beach Police Department. The case is being prosecuted by Assistant United States Attorney Michelle Daffin.
The prosecution, part of an extensive investigation by the Organized Crime Drug Enforcement Trask Force (OCDETF) OCDETF, is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to take down criminal organizations and seize assets.
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.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
FCI Danbury Inmate Pleads Guilty to Possessing WeaponsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JULIAN DE JESUS CASTILLO, 35, pleaded guilty yesterday in Hartford federal court to possession of contraband in a federal prison.
According to court documents and statements made in court, on February 8, 2018, Castillo, an inmate at the Federal Correctional Institution in Danbury, Connecticut, possessed a razor blade and a 7.5 inch piece of flat metal that had sharpened edges and a point at one end. The razor blade was discovered taped to the underside of Castillo’s assigned bunk and the metal blade was concealed at the base of a pillar adjacent to Castillo’s bunk. The objects were designed or intended to be used as weapons.
Castillo is scheduled be sentenced by U.S. District Judge Michael P. Shea on December 19, 2019, at which time he faces a maximum term of imprisonment of five years.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Ex-‘Arsenio Hall Show’ Musical Director Pleads Guilty to Wire Fraud for Embezzling $750,000 from a Charity Concert for Homeless KidsRead the Press Release
LOS ANGELES – A professional drummer who has served as a musical director for the United Nations and “The Arsenio Hall Show” television program pleaded guilty today to one count of wire fraud for embezzling $750,000 from a charity concert for homeless children and using the stolen money to pay alimony to his ex-wife and buy cars for his mother and son.
Robin DiMaggio, 48, of Woodland Hills, entered his plea before United States District Judge Dolly M. Gee, who scheduled a March 4, 2020 sentencing hearing.
According to court documents, DiMaggio said he would assist the Peace for You Peace for Me Foundation, a Bulgaria-based non-profit organization, with organizing a charity concert in the Bulgarian capital of Sofia that was designed to raise money for and raise awareness of homeless and displaced children from conflict zones throughout the world. DiMaggio told the Foundation in a series of communications that he would be able to secure several celebrities to perform at the charity concert, court papers state.
On August 5, 2016, the foundation’s financial sponsor wired $750,000 to a DiMaggio-controlled account as a guarantee for future payments related to artists performing at the charity concert, according to DiMaggio’s plea agreement. Prior to the money transfer, DiMaggio falsely represented that he would not spend the money, which he would place in an escrow account and only later use to pay artists who would perform at the concert, the plea agreement states.
DiMaggio admitted he never set up the escrow account, and instead, several days later, he deposited the $750,000 into his personal bank account and used the money to make payments on cars, credit card debt and his living expenses. DiMaggio also admitted that within weeks of the wire transfer he used $251,370 of the funds to purchase a Calabasas home for his ex-wife. DiMaggio also bought his mother a $35,000 car and bought his son a $24,000 car, the plea agreement states. He also wired $150,000 of the funds to a bank account in the name of his company, DiMagic Entertainment, Inc. None of the transfers was sent to artists or their management in connection with the charity concert in Bulgaria.
The foundation’s financial sponsor later sued DiMaggio in Los Angeles Superior Court and DiMaggio ultimately filed for Chapter 7 bankruptcy protection. In his September 2017 bankruptcy filing, DiMaggio made false statements that he had not made alimony payments or given any gifts worth more than $600 to any person in the prior two years, the plea agreement states.
At his sentencing hearing, DiMaggio will face a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this case.
This matter is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Drug trafficking indictments bring multiple federal charges for narcotics, firearmsRead the Press Release
AUGUSTA, GA: Eight people have been charged in a 13-count federal indictment in a drug trafficking conspiracy that brought large amounts of narcotics from Atlanta for distribution in the Augusta area.
The indictments stem from a two-year joint investigation by the Drug Enforcement Administration and Richmond County Sheriff’s Office into cocaine deliveries from the Atlanta area into Augusta, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition to other charges, all eight defendants – including an Augusta man and his two sons – are charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances.
“This investigation is a great example of interagency cooperation supported by the latest technology,” said U.S. Attorney Christine. “Our office will take the handoff from our law enforcement partners, and carry the ball that last hundred yards to score another victory against those who would peddle poison in our community.”
During the investigation, federal agents and sheriff’s office investigators seized more than $500,000 in cash, more than two kilos of cocaine, 32 grams of crack cocaine and more than 9 pounds of marijuana, along with eight firearms.
Facing federal charges from the indictment are:
- Terrance Quain Freeman, 48, of Augusta, charged with Conspiracy to Possess with Intent to Distribute and To Distribute Five Kilograms or More of Cocaine and an Amount of Marijuana; Possession with Intent to Distribute Marijuana; and Possession with Intent to Distribute Cocaine and Marijuana. If convicted, he faces a sentence of up to life in prison. His two sons also are charged in the conspiracy.
- Mario Hubbard, 43, of Atlanta, charged with one count of Conspiracy to Possess with Intent to Distribute and To Distribute Five Kilograms or More of Cocaine and an Amount of Marijuana. If convicted, he faces a sentence of up to life in prison.
- Timothy Jeremy Myers, 31, of Augusta, charged with one count of Conspiracy to Possess with Intent to Distribute and To Distribute Five Kilograms or More of Cocaine and an Amount of Marijuana, and Possession with Intent to Distribute 500 Grams or More of Cocaine. If convicted, he faces a sentence of up to life in prison.
- Timothy Dale Reid, 51, of Augusta, is charged with charged with Conspiracy to Possess with Intent to Distribute and To Distribute 500 Grams or More of Cocaine; Possession with Intent to Distribute 500 Grams or More of Cocaine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Firearm by a Convicted Felon; and Possession of a Stolen Firearm. If convicted, he faces a sentence of up to life in prison.
- Willie Antonio Bass, 35, of Augusta, is charged with Conspiracy to Possess with Intent to Distribute and To Distribute 500 Grams or More of Cocaine and Possession of a Firearm by a Convicted Felon. If convicted, he faces a sentence of up to 40 years in prison.
- Tyquain Freeman, 27, of Augusta, is charged with Conspiracy to Possess with Intent to Distribute and To Distribute 500 Grams or More of Cocaine, and Possession with Intent to Distribute Marijuana. He is a son of Terrance Freeman. If convicted, he faces a sentence of up to 40 years in prison.
- Christopher Chin, 34, of Augusta, is charged with Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine, Crack Cocaine and Marijuana, and Possession with Intent to Distribute Cocaine, Crack Cocaine and Marijuana. If convicted, he faces a sentence of up to 20 years in prison. And,
- Quieaton Freeman, 20, of Augusta, is charged with Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine, Crack Cocaine and Marijuana; Possession with Intent to Distribute Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of Firearms by an Illegal Drug User. He is a son of Terrance Freeman. If convicted, he faces a sentence of up to 25 years in prison.
If convicted, each of the defendants also would be subject to fines and to serve supervised release after completion of any prison terms.
Those facing charges from separate state indictments include:
- Marvin Hikeem Griffin, 30, of Augusta, charged with two counts of Illegal Use of Communications Facility (OCGA 16-13-32.3);
- Willie Lawrence Wimbley, 42, of Augusta, charged with Trafficking Heroin and Cocaine, Possession of Marijuana with Intent to Distribute, and one count of Illegal Use of Communications Facility;
- Terrell Maurice Myers, 31, of Augusta, charged with Possession of Cocaine with Intent to Distribute, Possession of a Firearm during a Crime, Use of an Article with an Altered Identification Mark, Possession of a Firearm by a Convicted Felon, and one count of Illegal Use of Communications Facility;
- Dana Dione Myers, 49, of Augusta, charged with Possession of Cocaine with Intent to Distribute, Possession of a Firearm during a Crime, Use of an Article with an Altered Identification Mark, and Possession of a Firearm by a Convicted Felon;
- Alonzo Walters, 51, of Augusta, charged with Possession of Cocaine with Intent to Distribute, Possession of a Firearm during a Crime, Use of an Article with an Altered Identification Mark, and Possession of a Firearm by a Convicted Felon;
- Bobby Lewis Jenkins, 31, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Jamie Anderson, 28, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Juan Holliman, 42, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Joshua McDaniel, 24, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Christian Walker, 50, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Michael Daggett, 38, of Augusta, charged with three counts of Illegal Use of Communications Facility;
- Joseph L. Turner, 32, of Augusta, charged with one count of Illegal Use of Communications Facility; and,
- Cornice Roberts Lee, 53, of Augusta, charged with six counts of Computer Invasion of Privacy.
The investigation is ongoing, with additional defendants identified.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This case illustrates how success can be achieved through collaborative efforts between federal, state and local law enforcement and the subsequent prosecution by the U.S. Attorney’s Office.”
“The only way to seriously affect drug distribution in Augusta is by targeting, disrupting and dismantling major drug trafficking organizations,” said Richmond County Sheriff Richard Roundtree. “We will continue to target these organizations. Our message is quite simple: If you distribute drugs in Augusta or cause those drugs to come to Augusta, we will hunt you down.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The investigation was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, the Aiken County Sheriff’s Office, the Dekalb County HIDTA Task Force, the Greene County Sheriff’s Office, and the Georgia National Guard Counterdrug Task Force, and prosecuted for the United States by Assistant U.S. Attorneys Patricia G. Rhodes and Hank Syms. State defendants are being prosecuted by Falin Syms, Senior Assistant District Attorney for the Augusta Judicial Circuit.
District Man Sentenced to Five Years in Prison for Role in Large-Scale Narcotics Trafficking ConspiracyRead the Press Release
WASHINGTON – Artinis Winston, 43, of Northeast, D.C. was sentenced today to five years in prison for his role in a large-scale narcotics trafficking conspiracy. U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD) made the announcement.
Winston pled guilty in July 2019 before the Honorable Amit P. Mehta in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Judge Mehta sentenced Winston to five years in prison, to be followed by four years of supervised release. As part of his guilty plea to engaging in the conspiracy, Winston accepted responsibility for trafficking 360 grams of heroin and 40 grams of buprenorphine (commonly referred to as suboxone). Winston’s conviction in the case represents his fourth felony conviction.
According to the Government’s evidence, in June 2017, ATF began investigating the trafficking of narcotics from the Next Level Cuts barbershop located in the 2400 block of MLK, Jr., Avenue, SE and adjoining property above. Law enforcement discovered a coordinated drug trafficking operation that was centered at the barbershop and extended into Maryland through surveillance, controlled purchases from inside and outside the barbershop, residential search warrants, cellphone searches, arrests, jailhouse calls, pleas, and cooperating witnesses. The investigation established that drug traffickers used the barbershop and adjoining property as a stash location.
The investigation led to a series of arrests beginning in February 2018. These arrests led to the recovery of three firearms from the barbershop, one firearm in a residence, the seizure of more than $7,000 in cash, and without packaging, the seizure of more than 300 grams of PCP, more than 150 grams of heroin, more than 100 grams of fentanyl, boxes of suboxone strips, and more than 100 grams of a cutting agents.
While multiple conspirators had been arrested in 2018, Winston was a fugitive for approximately nine months. Coconspirators Lonnell Tucker, 42, of Temple Hills, Md., Anthony Fields, 45, of Washington, D.C., and Abdul Samuels, 45, of Washington, D.C., were found guilty on March 21, 2019, following a trial in the U.S. District Court for the District of Columbia before Judge Mehta.
During the trial, officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, and the Maryland Office of the State Prosecutor, testified regarding separate arrests of coconspirators during the course of ATF’s investigation, which resulted in the seizure of narcotics, drug paraphernalia, and U.S. currency.
On June 13, 2019, Fields was sentenced to 16 years in prison to be followed by eight years of supervised release. On June 14, 2019, Tucker was sentenced to five years in prison to be followed by three years of supervised release. Samuels is scheduled to be sentenced on October 2, 2019 and faces up to 20 years in prison. Three other defendants – Darryl Smith, 41, of Washington, D.C., James Venable, 47, of Fort Washington, Md., and Lacy Hamilton, 42, of Suitland, Md. – pled guilty earlier to federal charges. Smith managed the barbershop and was sentenced to 80 months in prison relating to his possession of narcotics in the barbershop on February 1, 2018, and for his possession of packaged fentanyl and a loaded firearm following an arrest by MPD in December 2017 outside of the barbershop. Venable, another conspirator, was sentenced to a 37-month prison term following his possession of narcotics and a firearm in both Washington, D.C. during a December 2017 arrest by MPD and at his residence in Maryland on February 1, 2018. Venable also acknowledged selling narcotics to an ATF confidential informant in July 2017. Hamilton was sentenced to a 15-month prison term for selling narcotics outside the barbershop and in Maryland as part of the charged narcotics conspiracy.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the assistance provided by officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, the Maryland Office of the State Prosecutor, and the United States Marshal Service who assisted in trying to apprehend Winston. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Christopher Macchiaroli and Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, and Paralegal Specialist Candace Battle.