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28 October 2019
Detroit Man Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Gerald Robinson, 26, entered a guilty plea to an indictment charging him with conspiracy to possession with intent to distribute oxycodone and Xanax.
“Too many pill peddlers have traveled to West Virginia from Detroit,” said United States Attorney Mike Stuart. “We are working with law enforcement partners across jurisdictional borders to identify and prosecute out-of-state drug dealers that bring drugs into our communities.”
Robinson admitted that in April 2017 he came to Huntington, West Virginia with the intent to distribute oxycodone and Xanax. Officers conducted a traffic stop on the vehicle Robinson was a passenger in on Interstate 64. Officer located over 200 oxycodone pills and 53 Xanax pills.
Robinson faces up to twenty years in federal prison when he is sentenced on February 3, 2020.
The investigation was conducted by the Violent Crime and Drug Task Force West.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Detroit Home Health Owner Sentenced to Prison for Role in $1.5 Million Medicare Kickback SchemeRead the Press Release
The owner of a Michigan home health agency was sentenced today to 60 months in prison for his role in a scheme involving approximately $1.5 million in Medicare claims for home health services that were procured through the payment of illegal kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D'Antuono of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Atheir Amarrah, 44, of West Bloomfield, Michigan, the owner of Prompt Care Home Health Services Inc. of West Bloomfield, Michigan, was sentenced by U.S. District Judge Judith E. Levy of the Eastern District of Michigan, who also ordered him to pay approximately $1 million in restitution, jointly and severally with his co-conspirators. In May 2018, Amarrah pleaded guilty to one count of conspiracy to defraud the United States and pay and receive health care kickbacks in connection with a federal health care program and to four counts of paying health care kickbacks.
As part of his guilty plea, Amarrah admitted that he paid illegal kickbacks to recruiters in exchange for Medicare beneficiary referrals and billed Medicare for claims procured through these illegal kickbacks. According to court documents, Amarrah caused a loss of over $1 million to the Medicare program by submitting claims to Medicare from 2013 through 2017 related to Medicare beneficiary information that he obtained by paying illegal kickbacks.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Howard Locker and Jay McCormack, Assistant Chief Jacob Foster, and Counsel to the Chief of the Health Care Fraud Unit Amy Markopoulos of the Fraud Section prosecuted the case. Assistant U.S. Attorney Paul Kuebler of the Eastern District of Michigan handled the asset forfeiture proceedings.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Departments of Justice and Housing and Urban Development Sign Interagency Memorandum on the Application of the False Claims ActRead the Press Release
Attorney General William P. Barr and Housing and Urban Development (HUD) Secretary Ben Carson today issued a Memorandum of Understanding (MOU) between the two agencies that sets prudential guidance on the appropriate use of the False Claims Act (FCA) for violations by Federal Housing Administration (FHA) lenders.
“This MOU sets forth a robust and collaborative process for deciding when to pursue False Claims Act cases to remedy material and knowing FHA violations,” said Attorney General Barr. “DOJ and HUD will work together to determine when HUD’s administrative remedies are sufficient, or other recourse is appropriate, to address harm to the borrower, the taxpayer, or the government. Importantly, this MOU is the product of the excellent working relationship that has developed between our two agencies in our shared pursuit of greater clarity and fairness.”
“This agreement clearly outlines our FHA mortgage program requirements, so they do not impede or discourage lenders from offering affordable FHA-insured loans to credit-worthy borrowers,” said Secretary Carson. “In taking these steps, we are fulfilling an important element our Housing Finance Reform Plan and making clear to all responsible lenders that FHA’s mortgage program is a program they should participate in. At the same time, HUD will not tolerate irresponsible or fraudulent lenders who defraud borrowers and taxpayers. We are thankful for the excellent relationship we have with our colleagues at the Department of Justice who have worked diligently with us on this effort and share our goal of advancing affordable housing finance while protecting the interests of taxpayers.”
As the MOU makes clear, HUD expects that FHA requirements will be enforced primarily through HUD’s administrative proceedings, but the MOU specifically addresses how HUD and DOJ, including the U.S. Attorneys’ Offices, will consult with each other regarding use of the FCA in connection with defects on mortgage loans insured by FHA. HUD will utilize the Mortgagee Review Board (MRB), which was created by statute and empowered to take certain actions for non-compliance by FHA lenders, to review and refer FCA claims. The MOU prescribes the standards for when HUD, through the MRB, may refer a matter to DOJ for pursuit of FCA claims, and also sets forth how DOJ and HUD will cooperate during the investigative, litigation, and settlement phases of FCA matters when DOJ receives a referral from a third party, such as in qui tam cases. The MOU also recognizes that application of the FCA requires, among other elements of proof, a material violation of HUD requirements, and DOJ attorneys will solicit HUD’s views to determine whether the elements of the FCA can be established.
This interagency understanding is intended to address concerns that uncertain and unanticipated FCA liability for regulatory defects led to many well-capitalized lenders, including many banks and credit unions statutorily required to help meet the credit needs of the communities in which they do business, to largely withdraw from FHA lending. For decades, FHA has been the hallmark product for the nation’s first time homebuyers. This important segment of the market currently constitutes over 80 percent of FHAs loans. Additionally, a third of FHA loans are made to minority borrowers. This has dramatically shifted FHA’s lender base during the last decade. Today, depository institutions originate less than 14 percent of FHA-insured mortgages, down significantly from approximately 45 percent in 2010.
The MOU is part of a comprehensive plan to bring greater clarity to regulatory expectations within the FHA program, and fulfills a key component of the HUD Housing Finance Reform Plan. In addition to the MOU, FHA is simplifying the certifications that lenders make in connection with the FHA program. The certifications will better track statutory requirements and address materiality and culpability considerations. FHA is also refining its defect taxonomy that it uses to assess the appropriate remedies for identified loan underwriting defects. Together, these new and revised components are intended to make affordable FHA-insured mortgages more accessible to qualified borrowers, reduce risks within the FHA program, and preserve appropriately tailored remedies.
Department of Justice Announces Pilot Program for Use of Body-Worn Cameras by Federally Deputized Task Force OfficersRead the Press Release
Today, the Department of Justice has announced a pilot program that will allow – for the first time – federally deputized task force officers to use body-worn cameras while serving arrest warrants, or other planned arrest operations, and during the execution of search warrants. The Department of Justice, through its law enforcement agencies, partners with state, local and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics and arrest dangerous fugitives. Several of the Department’s partner state and local agencies require their officers to wear body-worn cameras and have requested their officers wear these cameras on federal task forces when the use of force is possible.
“I am pleased that this pilot program takes into account the interests and priorities of all the law enforcement agencies involved in federal task forces,” said Attorney General William P. Barr. “These are some of the most dangerous jobs in law enforcement, and I am grateful for the sacrifice of those who serve. The Department of Justice has no higher priority than ensuring the safety and security of the American people and this pilot program will continue to help us fulfill that mission.”
“ATF’s partnerships with local and state law enforcement are crucial to protecting our communities from those who commit violent crimes involving firearms, explosives, and arson; we continually strive to be the best possible partner,” said Acting Director Regina Lombardo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF’s commitment to our partners includes adopting the appropriate use of technology to enhance effectiveness and accountability. ATF, FBI, DEA and the U.S. Marshals have worked closely with the Attorney General and leadership from local law enforcement agencies in the development of a pilot policy for the use of body-worn cameras by local officers participating in federal task forces. I look forward to implementation of this pilot as ATF continues to work with local and state law enforcement to remove the most violent offenders from our communities.”
“The Drug Enforcement Administration values its partnerships with state and local law enforcement agencies throughout the country, and we look forward to continued collaboration,” said Acting Administrator Uttam Dhillon of the Drug Enforcement Administration (DEA). “Task force officers working alongside DEA special agents play a critical role in safeguarding our communities from violent criminals, drug traffickers, and dangerous cartels, and their local knowledge and expertise are vital to making our streets safer.”
“We appreciate the Attorney General’s intentions to improve accountability through DOJ’s new body worn camera pilot policy,” said FBI Director Christopher Wray. “The FBI’s very mission is to protect the American public and uphold the Constitution. We value the continued support of our task force officers as our close collaboration is a vital part of that mission. It’s our hope this program will help us to fulfill our mission and build trust within our communities – a common goal among all of our task force partners.”
“The U.S. Marshals Service has long-standing and extremely successful partnerships with state and local law enforcement agencies throughout the country. These partnerships result in the arrest of nearly 100,000 violent fugitives each year, bringing immediate relief to communities and protecting the most vulnerable populations,” said United States Marshals Service (USMS) Director Donald Washington. “The USMS remains committed to assisting our task force partners in performance of the critical fugitive apprehension mission that contributes to the safety of our communities.”
The Department of Justice’s pilot program will go into effect in select cities on Nov. 1, 2019. The Department would like to thank ATF, the DEA, the FBI and the USMS, as well as all of the state and local law enforcement leaders that have provided input and guidance.
Defendant Sentenced in Connection with Conspiracy to Distribute and Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Sonia K. Frear, 48, of Norfolk, Nebraska, was sentenced today to 92 months in prison by Senior United States District Court Judge Laurie Smith Camp for possession with intent to distribute methamphetamine. There is no parole in the federal system. In addition to her prison term, Frear will serve 5 years of supervised release following her release from prison.
On April 17, 2018, law enforcement conducted a probation check on Frear. Frear had 42 grams of methamphetamine on her, and a safe with 280 grams of methamphetamine was also located in her residence. Frear admitted to her involvement in distributing methamphetamine.
The Nebraska State Patrol and the SNARE Drug Task Force were the investigating agencies.
Defendant Sentenced in Connection with Conspiracy to Distribute and Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Harley A. McGraw, 26, of Norfolk, Nebraska, was sentenced on October 25, 2019, to 188 months in prison by United States District Court Judge Robert R. Rossiter, Jr. for conspiracy to distribute and possess with intent to distribute methamphetamine. There is no parole in the federal system. In addition to his prison term, McGraw will serve 5 years of supervised release following his release from prison.
On October 8, 2017, law enforcement conducted a traffic stop on McGraw, who had 12.4 grams of methamphetamine in his possession. In addition, several witnesses provided information implicating McGraw as a distributor of methamphetamine in the Norfolk, Nebraska, area. The evidence showed that McGraw distributed at least 5 kilograms but not more than 15 kilograms of methamphetamine from at least December 2017 until he was arrested in October 2018.
The Nebraska State Patrol and the SNARE Drug Task Force were the investigating agencies.
Community Threat Awareness Conference CallRead the Press Release
U.S. Attorney Byung (BJay) Pak invites you to participate in the next community threat awareness conference call sponsored by the US Attorney’s Office for the Northern District of Georgia, scheduled for Wednesday, October 30th, at 2:00 PM. The guest speakers will be Assistant U.S. Attorney Jolee Porter and Special Assistant U.S. Attorney Valerie Verduce. AUSA Porter leads the Elder Fraud Strike Force in Atlanta, and SAUSA Verduce is an attorney from the Federal Trade Commission attached to our office. They will be speaking on elder fraud and scams conducted in Northern Georgia and around the nation. The call is scheduled for an hour.
As space is limited to 200 participants, we ask that you register for the call at the link provided below – first come, first served. Once your registration is received, the call-in number and activation pin will be emailed to you. Once we reach capacity, you will be placed on a waiting list. The registration link will also allow you to submit questions for consideration prior to the call.
We hope to expand this capacity using commercial tools available at a later date. We also plan to conduct these calls multiple times throughout the year, on different topics, with different audiences.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Choctaw County Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Colby Roy Austin pled guilty to a two count indictment for 21 USC 841(a)(1) and 18 USC 922(g)(1), Possession with Intent to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person (Felon). Austin faces a statutory penalty of five to forty years on count one and up to ten years on count two. The sentencing date is set for January 31, 2020.
Austin admitted to the following facts at his plea hearing. On February 18, 2019, deputies from Choctaw County, Alabama received a call for a car accident. When the deputies arrived the driver, later identified as Austin, was slouched over the steering wheel and unresponsive. Deputies used a baton to break the passenger window. When this happened, Austin woke up and was asked to get out of the car. When Austin opened the door a firearm was visible in the driver side door. Austin had previously been convicted of a felony offense and admitted he knew he was not allowed to possess a firearm. Austin was placed into custody. In a brown bag hanging from the rear view mirror was a bag containing approximately 10 grams of ice/methamphetamine. Other items recovered from the vehicle included a pipe for smoking drugs, digital scales, and clear plastic bags. All these items are used for drug distribution.
The Choctaw County Sheriff’s Office and the Department of Homeland Security, Homeland Security Investigations investigated this case and Assistant United States Attorneys Michael Anderson and Alex Lankford prosecuted the case.
Centralia Man Charged with Drugs, GunRead the Press Release
A federal grand jury for the Southern District of Illinois has returned an indictment charging
Stephen Kristopher Martin, a.k.a. “Mo” Martin, 26, of Centralia, Illinois, with distribution of methamphetamine and unlawful possession of a firearm.An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Martin faces up to 20 years imprisonment, a $1 million fine, and at least 3 years supervised release on each of three methamphetamine distribution charges. The gun charge is punishable by as much as 10 years imprisonment, a $250,000 fine, and 3 years supervised release.
The indictment is the result of an investigation conducted by members of an FBI Task Force, including the Centralia Police Department, the Carlyle Police Department, and the Marion, Clinton and Washington County Sheriffs’ Offices. The trial date has not been set.
Bluefield Woman Indicted on Federal Tax Charges, Wire Fraud, Lying to Federal AgentsRead the Press Release
Abingdon, VIRGINIA – A Federal grand jury sitting in United States District Court for the Western District of Virginia in Abingdon charged a Bluefield, Va., woman last week with close to 10 federal crimes related to her failure to collect taxes, wire fraud, and making false statements, United States Attorney Thomas T. Cullen announced.
In an indictment returned under seal Tuesday, October 22 and unsealed last week following her arrest, the grand jury charged Teresa Blankenship Barringer, 58, with four counts of willfully failing to collect or pay taxes, two counts of wire fraud, and three counts of making a false statements to a federal agent.
The investigation of the case was conducted by Federal Bureau of Investigation, Internal Revenue Service, and Virginia State Police. Assistant United States Attorneys S. Cagle Juhan and Randy Ramseyer will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Biotech Company CEO Convicted of Securities Fraud and ObstructionRead the Press Release
BOSTON – The chief executive officer of PixarBio Corp., a Boston-based biotech company, was convicted today of defrauding the company’s investors and obstructing an SEC investigation.
Frank Reynolds, 57, of Newton, was convicted of by a federal jury, following a three-week trial, of one count of securities fraud and three counts of obstructing an agency proceeding. Senior United States District Judge Douglas P. Woodlock scheduled sentencing for Feb. 6, 2020.
The jury convicted Reynolds of defrauding PixarBio investors through manipulative trading of the company’s shares and false and misleading statements about the company’s finances, the timeline for FDA approval of its key drug, and Reynolds’s own background, which he claimed included curing his own paralysis. In fact, the evidence at trial showed that Reynolds was never paralyzed.
Among the false and misleading statements introduced into evidence was a December 2015 email and private placement memorandum, in which Reynolds promised investors that PixarBio’s drug, NeuroRelease, would end “thousands of years of morphine and opiate addiction.” In fact, the evidence at trial demonstrated that the drug would not end opioid addiction, and was simply an existing drug for which PixarBio claimed to have developed an additional means of delivery in a time-release form for post-operative pain.
In August 2016, Reynolds caused PixarBio to issue a press release announcing that a private securities offering underway at the time was oversubscribed, and that the maximum offering amount would be increased from $20 million to $30 million. Two months later, Reynolds caused PixarBio to issue another press release announcing that, due to oversubscription, the maximum offering amount would be increased again from $30 million to $40 million. In fact, the evidence at trial showed that the securities offering was never fully subscribed and had raised less than $10 million.
Reynolds also misrepresented the timeline to FDA approval for NeuroRelease. In a November 2016 securities filing that Reynolds signed as PixarBio’s CEO, the company stated that clinical trials were expected to begin “in late 2017 and US FDA approvals for the NeuroRelease 14-day product are expected in 2018,” despite the fact that PixarBio managers had told Reynolds that this timeline was not achievable.
Reynolds also directed two co-conspirators, Kenneth Stromsland and Jay Herod, to engage in manipulative trading in PixarBio shares that artificially pushed up the stock’s trading price. The evidence demonstrated that Herod shared the proceeds of his trading with Reynolds and PixarBio. Reynolds then misled the SEC about the trading and his prior misstatements in sworn testimony, during which he introduced a backdated document as purported evidence that $300,000 in trading proceeds Herod had given him was actually an investment unrelated to Herod’s trading. Reynolds also induced Herod and Stromsland to mislead the SEC in their own sworn testimony. Herod and Stromsland previously pleaded guilty to securities fraud and obstruction charges and testified at the trial.
The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. Each count of obstruction carries a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Leslie A. Wright of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Alleged Five Guys shooter facing federal chargesRead the Press Release
HOUSTON – A 25-year-old Houston resident is set to appear in federal court today to answer allegations he robbed a Five Guys restaurant and shot an off-duty law enforcement officer, announced U.S. Attorney Ryan K. Patrick.
Keith Thomas is expected to appear before U.S. Magistrate Judge Bryan at 10:00 am today. He is charged with interference with commerce by robbery and discharging a firearm during or in relation to that robbery.
The criminal complaint, filed Oct. 25, 2019 alleges Thomas entered the Five Guys restaurant located at 2902 Shepherd Drive in Houston with a firearm Oct. 16. There, Thomas allegedly pointed the firearm at customers and employees and demanded money. The charges allege he was able to steal cash from the cash register and from patrons.
Prior to exiting the restaurant, Thomas allegedly discharged his firearm, striking a constable who was approaching the door. The constable was off official duty with Harris County Precinct 5, but working security at the location. Thomas then fled the location, according to the complaint.
The charges allege officers found a cell phone they believed to belonged to the suspect and traced is back to Thomas. Thomas was arrested and transferred to federal custody.
If convicted, Thomas faces up to 20 years in prison for interference with commerce by robbery and a consecutive mandatory minimum of 10 years up to life in prison for firearm charge.
The Houston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.14 Defendants Charged, 200 Pounds of Meth SeizedRead the Press Release
WICHITA, KAN. – A prosecutor said in court today that federal agents seized more than 220 pounds of methamphetamine in a drug trafficking case in the Kansas City, Kan., metro area.
U.S. Attorney Stephen McAllister said 14 defendants are charged in the case.
“Opioids are often in the news,” McAllister said. “But methamphetamine remains our biggest drug problem in the Midwest.”
Investigators found the methamphetamine when they served a search warrant at a house in Kansas City, Kan., where one of the defendants lives.
The 33-count indictment, which was based on more than a year of investigation by the Drug Enforcement Administration, contains charges including conspiracy, distribution, possession with intent to distribute and interstate communications in furtherance of drug trafficking. Many of the charges carry potential penalties of 10 years or more in federal prison
The following defendants have been charged:
Luis Martinez-Carrango, 57, Kansas City, Mo., conspiracy, interstate communications in furtherance of drug trafficking, possession with intent to distribute methamphetamine.
Alfredo Rey, 34, Kansas City, Kan., conspiracy, possession with intent to distribute methamphetamine.
Antonio Edder Calderson-Reyes, 31, conspiracy, distribution of methamphetamine, interstate communication in furtherance of drug trafficking.
Raul Gutierrez-Zamaripa, 31, conspiracy.
Jose Rosa-Pacheco, 34, Kansas City, Kan., conspiracy, distribution of methamphetamine, possession with intent to distribute methamphetamine.
Carlos Rosa-Artia, 35: Kansas City, Kan., conspiracy.
Enrique Rodriguez, 42, conspiracy, possession with intent to distribute methamphetamine.
Rusbein Galicia-Lopez, 31, conspiracy, distribution of methamphetamine, possession with intent to distribute methamphetamine, interstate communication in furtherance of drug trafficking.
Abraham Gutierrez-Ojeda, 36, conspiracy, distributing methamphetamine, possession with intent to distribute methamphetamine, interstate communication in furtherance of drug trafficking,
Jerry Taylor, 44, conspiracy, interstate communication in furtherance of drug trafficking, distributing methamphetamine.
Yader Arita, 30, conspiracy, possession with intent to distribute methamphetamine.
Manuel Leyva-Quijada, 43, Kansas City, Kan., conspiracy.
Mary Cain, 38, Kansas City, Kan., conspiracy, possession with intent to distribute methamphetamine.
Christopher Hite, 36, conspiracy, possession with intent to distribute methamphetamine.
If convicted, the defendants could face the following penalties:
Conspiracy: Not less than 10 years in federal prison and a fine up to $10 million.
Distribution: Not less than 10 years in federal prison and a fine up to $10 million.
Possession with intent to distribute: Not less than 10 years in federal prison and a fine up to $10 million.
Interstate communication: Not more than four years in federal prison and a fine up to $250,000.The Drug Enforcement Administration and the Kansas City Metro Strike Force investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
27 October 2019
Yankton Woman Sentenced for Theft of Government FundsRead the Press Release
United States Attorney Ron Parsons announced that a Yankton, South Dakota, woman convicted of Theft of Government Funds was sentenced on October 21, 2019, by U.S. District Judge Karen E. Schreier.
Whitney Lynn Clark, age 37, was sentenced to 2 years of probation, $78,775.33 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Clark was indicted by a federal grand jury on December 4, 2018. She pled guilty on July 25, 2019.
The conviction stemmed from false claims Clark made on applications for Social Security benefits on behalf of her children between August 2014 and November 2017. On the applications, Clark failed to disclose her husband's income. This omission led to an overpayment of $78,775.33 in Social Security, Supplemental Nutrition Assistance Program (SNAP) benefits, and Medicaid payments.
This case was investigated by the Social Security Administration. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
St. Francis Man Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Larceny was sentenced on October 21, 2019, by U.S. District Judge Roberto A. Lange.
Joseph Abraham Mack, a/k/a Joseph Mack, Jr., age 27, was sentenced to 15 months in federal prison, followed by 2 years of supervised release, $1,250 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Additional restitution may apply.
Mack was indicted by a federal grand jury on March 13, 2018. He pled guilty on July 31, 2019.
The conviction stemmed from an incident that occurred in the early morning hours of January 14, 2018. On that date, Mack unlawfully entered a residence in Mission, South Dakota. While inside, Mack stole a silver belt buckle and the keys to a pickup truck that was parked outside. Mack then stole the pickup truck and drove away. He wrecked the pickup near Rosebud, South Dakota, and abandoned it in the middle of the roadway. Mack then walked to a nearby residence, stole another pickup, and then drove to a residence in St. Francis, where he was apprehended a short time later.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Mack was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Woman Sentenced for Misuse by a Representative PayeeRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman convicted of Misuse by a Representative Payee was sentenced on October 21, 2019, by U.S. District Judge Karen E. Schreier.
Pamela Ann Olson, age 47, was sentenced to 6 months of probation, $113,227.53 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Olson was indicted by a federal grand jury on December 4, 2018. She pled guilty on August 12, 2019.
The conviction stemmed from incidents between November 2009 and December 2017, in the District of South Dakota and elsewhere, when Olson, who was her father’s representative payee, willfully and knowingly converted Title II program benefits payments made to her father, which are administered by the U.S. Social Security Administration, to a use other than for the benefit of her father. Olson received her father’s Social Security benefits payments, and then stole and misused those benefits payments.
This case was investigated by the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Sex Offender Sentenced to 12 Months of Imprisonment for Failing to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Marty, South Dakota, man convicted of failure to register as a sex offender was sentenced on October 21, 2019, by U.S. District Judge Karen E. Schreier.
Raymond Jandreau, age 61, was sentenced to 12 months and 1 day in federal prison, to be followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, Jandreau was convicted of attempted first-degree rape in South Dakota state court. This conviction requires him to register for life as a sex offender. Since July 1, 2016, Jandreau’s whereabouts were unknown until his arrest in May 2019. His last known address was in Farmington, New Mexico, but that residence was vacated with no sign of Jandreau. His last known address in South Dakota was in Marty. Jandreau knew of the requirement to update his sex offender registration, but he knowingly failed to do so.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Jandreau was remanded to the custody of the U.S. Marshals Service.
Rosebud Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person and False Statements During Purchase of a Firearm.
John Larvie, age 29, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 24, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 22, 2019, Larvie, having been convicted of a misdemeanor crime of domestic violence, did knowingly make false and fictitious written statements in an effort to purchase and possess a firearm.
The charges are merely accusations and Larvie is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, and Firearms. Assistant U.S. Attorney Michael Elmore is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set
Rosebud Man Indicted for Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Phillip Little Hoop, age 37, was indicted on September 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 25, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 25, 2019, Little Hoop knowingly engaged in, and attempted to engage in, a sexual act with a child under the age of 12.
The charge is merely an accusation and Little Hoop is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Little Hoop was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Red Scaffold Man Charged with Burglary and Sex AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Red Scaffold, South Dakota, man has been indicted by a federal grand jury for Second Degree Burglary and Sexual Abuse of a Person Incapable of Consent.
William Collins, age 39, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, a minimum of 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 23, 2019, Collins entered the residence of an individual and knowingly engaged in and attempted to engage in a sexual act with the individual who at the time was incapable of appraising the nature of the conduct, and was physically incapable of declining participation in and communicating an unwillingness to engage in the sexual act.
The charges are merely accusations and Collins is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Collins was released on bond pending trial. A trial date has not been set.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Bradley Makes Room For Them, age 34, was indicted on October 17, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 24, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Makes Room For Them was convicted of Aggravated Sexual Abuse in September 2003. As a result of this conviction, he is required to register as sex offender. It is alleged that between September 9, 2019, and September 29, 2019, Makes Room For Them, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Makes Room For Them is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Makes Room For Them was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pierre Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Charles Olson, a/k/a Chip Olson, age 48, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 25, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that between December 1, 2018, and October 16, 2019, Olson did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more methamphetamine. Further, on June 23, 2019, a traffic stop was conducted wherein 236 grams of methamphetamine was located in the vehicle.
The charge is merely an accusation and Olson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the South Dakota Highway Patrol. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Olson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Parmelee Man and Woman Indicted for Child Abuse; Man also Indicted for Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a man and a woman from Parmelee, South Dakota, have been indicted by a federal grand jury for Child Abuse. The man has also been indicted by a federal grand jury for Involuntary Manslaughter.
Dakota Horned Eagle, age 29, and Ashley Stoneman, age 25, were indicted on July 23, 2019. Horned Eagle appeared before U.S. Magistrate Judge Mark A. Moreno on August 22, 2019, and Stoneman appeared on October 25, 2019. Both pled not guilty to the Indictment.
The maximum penalty upon conviction for Child Abuse is up to 15 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The maximum penalty upon conviction for Involuntary Manslaughter is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 12, 2019, Horned Eagle and Stoneman did abuse, expose, torture, torment, and cruelly punish six children. The Indictment further alleges that Horned Eagle unlawfully killed two of the children while operating a motor vehicle, in a grossly negligent manner.
The charges are merely accusations and Horned Eagle and Stoneman are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Horned Eagle and Stoneman were remanded to the custody of the U.S. Marshals Service pending trial, which has been set for December 17, 2019.
New Castle Man Convicted After Federal Jury Trial on Child Pornography ChargesRead the Press Release
WILMINGTON, Del. – A federal jury convicted Thomas Noble, age 71, of New Castle, on October 24, 2019, on charges of possession of child pornography and attempted receipt of more child pornography.
According to court records and evidence presented at trial, on October 5, 2017, the Delaware State Police Internet Crimes Against Children Taskforce (ICAC) executed a search warrant at Noble’s home in New Castle, Delaware. When they arrived, officers found Noble's personal computer actively downloading child pornography files through a peer-to-peer file sharing network called BitTorrent. A forensic examination of Noble's computer found hundreds of files of child pornography.
Noble had previously been convicted in the State of Delaware for possessing child pornography. His term of probation for that conviction had ended less than six months before Delaware State Police executed their search warrant.
David C. Weiss, U.S. Attorney for the District of Delaware stated, “Crimes involving child sexual exploitation continue to victimize innocent children and my office will prosecute any such crimes to the fullest extent of the law.”
“Those who possess or download child pornography over the internet are a part of a troubling cycle of violence against children. The Delaware State Police ICAC Taskforce made up of the Delaware State Police, Department of Justice, and ICE’s Homeland Security Investigations work together to relentlessly investigate and prosecute these dangerous criminals to ensure child victims, our most vulnerable, are protected,” said Sergeant Richard Bratz, spokesperson for the Delaware State Police
Noble faces a mandatory minimum sentence of 15 years and a maximum sentence of 40 years in prison when sentenced on February 26, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss made the announcement after Chief U.S. District Judge Leonard P. Stark accepted the verdict. Assistant U.S. Attorneys Graham L. Robinson and Alexander P. Ibrahim presented the case to the jury on behalf of the United States. The case was investigated by Delaware State Police’s ICAC Unit, with support from ICE’s Homeland Security Investigations.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 18-15-LPS.
Mission Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Possession with Intent to Distribute Methamphetamine was sentenced on October 21, 2019, by U.S. District Judge Roberto A. Lange.
Alicia Medicine Eagle, age 39, was sentenced to time served equal to 114 days in custody, 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Medicine Eagle will also forfeit all interest in $340 which was seized at the time of arrest.
Medicine Eagle was indicted by a federal grand jury on March 13, 2019. She pled guilty on July 22, 2019.
The conviction stemmed from an incident on October 14, 2016, where Medicine Eagle knowingly and intentionally possessed methamphetamine with the intent to distribute it to others on the Rosebud Sioux Tribe Reservation.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron Cook prosecuted the case.
Mission Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on October 22, 2019, by U.S. District Judge Roberto A. Lange.
Cole Emery, age 25, was sentenced to 72 months in federal prison, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Emery was indicted by a federal grand jury on December 11, 2018. He pled guilty on July 31, 2019.
The conviction stemmed from an incident beginning at a time unknown but no later than on or about December 1, 2017, and continuing to on or about December 11, 2018, where Emery conspired with others to possess with intent to distribute 500 grams or more of methamphetamine on the Rosebud Sioux Indian Reservation.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Emery was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Assault and Witness TamperingRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, and Wounding and Witness Tampering was sentenced on October 23, 2019, by U.S. District Judge Roberto A. Lange.
Edward Leon Wilson, a/k/a Eddie Wilson, age 37, was sentenced to 21 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $125.
Wilson was indicted by a federal grand jury on October 16, 2018. He pled guilty on July 31, 2019.
The conviction for Assault by Striking, Beating, and Wounding stemmed from an incident that occurred in Mission on September 16, 2018. On that date, Wilson and the victim got into an argument at the residence they shared. The argument became physical and Wilson struck the victim.
The conviction for Witness Tampering stemmed from conduct that occurred after Wilson made his initial appearance in U.S. District Court. Between December 2018 and June 2019, Wilson repeatedly contacted the victim and asked her to change her description of the September 16, 2018, incident and further asked that she to refuse to testify against him.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Wilson was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Assault With a Dangerous Weapon was sentenced on October 21, 2019, by U.S. District Judge Roberto A. Lange.
Francis Dog Soldier, age 37, was sentenced to 40 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Dog Soldier was indicted by a federal grand jury on September 11, 2018. He pled guilty on July 22, 2019.
The conviction stemmed from an incident that occurred on the evening of May 4, 2018, in Rosebud, South Dakota. On that date, Dog Soldier was drinking and socializing with a group of individuals at the victim’s residence. At one point, Dog Soldier and the victim got into an argument. Dog Soldier then assaulted the victim and kicked him multiple times in the chest and face with shod feet. Dog Soldier then fled the area, and was apprehended a short time later by law enforcement near Okreek, South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Dog Soldier was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Indicted on Assault and Child Abuse ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault By Strangulation and Suffocation, Child Abuse, and Domestic Assault by an Habitual Offender.
Hunter Ritter, age 20, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 25, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple occasions between June 12, 2019, and August 9, 2019, Ritter unlawfully committed domestic assaults against his intimate partner and that, at the time of the domestic assaults, Ritter had at least two prior convictions for offenses that would have been, if subject to federal jurisdiction, assaults against a spouse or intimate partner. The Indictment further alleges that on July 29, 2019, Ritter unlawfully committed a domestic assault against his intimate partner, by strangling and suffocating her, and further did abuse, expose, torture, torment, and cruelly punish a minor child.
The charges are merely accusations and Ritter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Ritter was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Isabel Man Charged with Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that an Isabel, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Theodore Taylor, age 34, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 24, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 17, 2019, Taylor disobeyed and resisted an order and command of the U.S. District Court, in that he failed to surrender and serve a sentence.
The charge is merely an accusation and Taylor is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Taylor was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eden Man Sentenced to 24 Months in Federal Prison for Felony Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that an Eden, South Dakota, man convicted of felony child abuse and neglect of a child was sentenced on October 21, 2019, by U.S. District Judge Charles B. Kornmann.
Jeremiah Lynn Renville, Jr., age 39, was sentenced to 24 months in federal prison, followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Renville, Jr. was indicted for assault resulting in serious bodily injury of a child and felony child abuse and neglect of a child under seven years by a federal grand jury on October 10, 2018. He pled guilty on May 2, 2019.
According to court filings, on February 13 and 14, 2018, Renville engaged in assaultive and abusive conduct toward a child under the age of three years.
This case was investigated by the Federal Bureau of Investigation and the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Renville will surrender to the U.S. Marshal’s Service in late December 2019, to begin serving his federal prison sentence.
Eagle Butte Man Charged with Sexual Abuse of a Person Incapable of ConsentRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Person Incapable of Consent.
Coren Clown, age 28, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 18, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, not less than 5 years, or up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 3, 2017, Clown knowingly engaged in and attempted to engage in a sexual act with an individual who was physically incapable of declining participation in and communicating an unwillingness to engage in the sexual act.
The charge is merely an accusation and Clown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Clown was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Aberdeen Woman Sentenced for Theft of Government FundsRead the Press Release
United States Attorney Ron Parsons announced that an Aberdeen, South Dakota, woman convicted of Theft of Government Funds was sentenced on October 21, 2019, by U.S. District Judge Charles B. Kornmann.
Brianna Breaw, a/k/a Stephanie Haupt, age 28, was sentenced to 20 months in federal prison, followed by 3 years of supervised release, restitution in the amount of $58,244.95, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Breaw was indicted by a federal grand jury on July 10, 2018. She pled guilty on July 29, 2019.
The conviction stemmed from incidents between on or about August 28, 2014, and November 28, 2017, when Breaw willfully and knowingly embezzled, stole, purloined, and converted to her own use money from departments or agencies of the United States, namely, Title XVI program benefits payments administered by the U.S. Social Security Administration (SSA), Supplemental Nutrition Assistance Program (SNAP) benefits payments funded by the U.S. Department of Agriculture, and Medicaid coverage funded in part by the U.S. Department of Health and Human Services.
Breaw began receiving Title XVI supplemental security income program benefits payments (SSI), Medicaid benefits, and SNAP benefits under her former name, Stephanie Haupt, and her original social security number. On August 28, 2014, Breaw was issued a new social security number. However, due to an oversight, the SSA failed to transfer Breaw’s SSI record from her original social security number to her new social security number, so her SSI and Medicaid benefits continued to be linked to her original social security number.
In approximately October 2015, Breaw legally changed her name to Brianna Breaw. She contacted the SSA to update the name linked to her new social security number, but the new name was not linked to her original social security number. This resulted in her new social security number being linked to Brianna Breaw, and her original social security number being linked to Stephanie Haupt.
Breaw knowingly received SSI benefits payments, Medicaid benefits, and SNAP benefits payments under her former name and original social security number, while at the same time she was working full-time under her new name and new social security number. Breaw lied to SSA on multiple occasions regarding her social security numbers, her marital status, her employment status, and her income in order to continue to receive SSI benefits payments. She also lied on her various SNAP applications, and at one point was receiving overlapping SNAP benefits from South Dakota, Iowa, and Illinois.
This case was investigated by the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Breaw was permitted to turn herself in to the custody of the U.S. Marshals Service on or before January 14, 2020.
25 October 2019
York County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that John A. Swayze, age 56, of York, Pennsylvania, was indicted on October 23, 2019, by a federal grand jury on child exploitation charges.
According to United States Attorney David J. Freed, the indictment alleges that Swayze received and distributed child pornography, and possessed child pornography involving minors under the age of 12 between October 2017 and May 2019. The two-count indictment also includes a notice of the Government’s intent to forfeit all images of child pornography and the electronic devices associated with those images.
This case was investigated by the Northeastern Regional Police Department with assistance from the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for receipt and distribution of child pornography is 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 5 years. The maximum penalty for possession of child pornography involving minors under 12 years old is 20 years’ imprisonment and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wetzel County woman admits to selling meth near an elementary schoolRead the Press Release
WHEELING, WEST VIRGINIA – Kaley Edgell, of New Martinsville, West Virginia, has admitted to , U.S. Attorney Bill Powell announced.
Edgell, age 36, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location.” Edgell admitted to selling methamphetamine near New Martinsville Elementary School in May 2018.
Edgell faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Virginia Man Sentenced to 30 Months in Prison for Trafficking in Large-Scale Narcotics and Possession of a FirearmRead the Press Release
WASHINGTON – Amir Gibreel, 30, of Northern Virginia, was sentenced yesterday to 30 months in prison for his role in a large-scale marijuana distribution enterprise, announced 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 Timothy M. Dunham, Special Agent in Charge of the FBI’s Washington Field Office’s Criminal Division.
On July 23, 2019, Gibreel pled guilty before the Honorable Rudolph Contreras in the U.S. District Court for the District of Columbia to one count of possessing with intent to distribute marijuana and one count of unlawful possession of a firearm by a person previously under felony indictment. As part of his plea, Gibreel accepted responsibility for running a marijuana business and possessing with intent to distribute over 80 pounds of marijuana. Gibreel’s conviction represents his third marijuana-related conviction.
According to the Government’s evidence, in the summer of 2018, law enforcement associated with the FBI’s Safe Streets Task Force began investigating Gibreel for the illegal distribution of marijuana. Specifically, FBI learned that Gibreel was operating a website called JetpackDC. JetpackDC is a website that specifically sells marijuana through an online distribution system. Much like Uber Eats or other internet delivery services, a user would obtain contact information from the internet, and then contact a telephone number to coordinate the sale and drop-off of various packages of marijuana, ranging from small sales in the low-dollar amount, or high sales in the hundreds of dollars. FBI had learned that Gibreel operated stash houses to prepare and market his product. Specifically, FBI learned that Gibreel utilized Airbnb, a housing internet rental company, to store his marijuana. Gibreel and his associates were making $80,000 to $100,000 monthly.
In September and October of 2018, FBI conducted three separate controlled purchases to try to identify Gibreel’s Airbnb safe house. In each of those controlled purchases, the FBI utilized an undercover agent, posing as a marijuana consumer, to go to JetpackDC, contact the JetpackDC dispatcher, and order marijuana. Based on the controlled purchases and coordinated surveillance, FBI was able to identify two locations as possible premises associated with the distribution of marijuana: an Airbnb apartment used by Gibreel within D.C. and 230 Rhode Island Avenue N.E. (Gibreel’s leased apartment).
On October 30, 2018, FBI executed search warrants at both locations. Gibreel was present at the 18 N Street apartment, along with four other subjects who stated that they did not reside at the location. Law enforcement identified one of the persons present as one of the delivery drivers from the earlier controlled purchases.
During the search of the Airbnb., law enforcement found several of Gibreel’s personal belongings in an upstairs bedroom, including a blue backpack with the JetpackDC label. Inside of the backpack, law enforcement found several documents, mail matter, and notebooks belonging to Gibreel. In the same bedroom, law enforcement found approximately $17,230 in cash on the closet shelf, and another $1,939 in cash in the front right pocket of a pair of blue jeans that Gibreel identified as his own. On a folding table in the same room, law enforcement found Gibreel’s bankcard and $352 in cash. On the bed, law enforcement found two ledger books containing information pertaining to the sale of marijuana. In a second upstairs bedroom, law enforcement located multiple bins, cardboard boxes, and canisters containing various amounts of marijuana, a suitcase containing marijuana vape cartridges, and marijuana packaging materials, such as a label maker and heat-sealing equipment. In total, the approximate weight of the marijuana found in the second bedroom was 80 pounds, with a street value of over $100,000.
During the search of 230 Rhode Island Avenue N.E.—no one was present during the warrant’s execution—law enforcement found a black 9mm Springfield XD semi-automatic pistol (Serial No. US8499099), which contained 16 rounds of ammunition, in the sole bedroom. Underneath the firearm was mail matter addressed to Gibreel, $15,000 in cash, and medical cannabis stickers. In the kitchen, law enforcement also seized an extended magazine, marijuana packaging materials, grinders, four ledgers (containing information pertaining to marijuana sales in the thousands of dollars per day), bank statements, nine cell phones, additional mail matter, four laptops, a money counter, three tablets, and a bag containing JetpackDC paraphernalia. Law enforcement also recovered approximately 900 grams of marijuana from the kitchen and living room.
Both the firearm and ammunition possessed by Gibreel had been shipped and transported in interstate commerce and in fact, Gibreel had purchased the firearm through an intermediary in Northern Virginia.
Finally, on October 30, 2018,Gibreel was aware that on April 30, 2018, he had been indicted by a grand jury in Arlington County, Commonwealth of Virginia, in case number CR18000582 (Sale/Distribute Marijuana) and CR18000583 (Possession of a Controlled Substance). Both of the indicted charges are felony offenses in the Commonwealth of Virginia, and are punishable by a term of imprisonment exceeding one year.
This matter was investigated by the FBI Washington Field Office’s Safe Streets Violent Gang Task Force, which is composed of FBI and ATF Special Agents, along with detectives from the Metropolitan Police Department, the U.S. Park Police, and the Prince George’s County Police. The Task Force is charged with investigating, disrupting and dismantling the most egregious and violent gangs operating in the District of Columbia and National Capital Region.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Benedict, and Special Agent in Charge Dunham commended the assistance provided by our joint law enforcement partners, as well as the Arlington County Commonwealth’s Attorney’s Office. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Trafficking Section.
Valdosta Doctor, Physician’s Assistant Sentenced to Prison for Medicare-Medicaid Fraud, Ordered to Repay Millions in RestitutionRead the Press Release
Valdosta, Ga. — A Valdosta doctor guilty of defrauding the federal and state Medicare and Medicaid health care programs of more than $2.2 million was sentenced to 97 months in prison today, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. A citizen jury returned a guilty verdict against Dr. Douglas Moss, 58, of Valdosta, on May 14, 2019 following a seven-day trial in federal court. Dr. Moss was found guilty on all seven counts that he was charged with: conspiracy to commit health care fraud (Count 1) and health care fraud (Counts 2-7). U.S. District Judge Hugh Lawson imposed an additional 3 years of supervised release. A co-conspirator, Shawn Tywon, 50, of Valdosta, who worked as a Physician’s Assistant (PA) in Dr. Moss’s practice, entered a guilty plea to conspiracy to commit health care fraud on April 11, 2019 and was sentenced today to 24 months in prison and 2 years of supervised release. Dr. Moss and Mr. Tywon were ordered to pay restitution in the amount of $2,256,861.32 to Medicare and Georgia Medicaid. There is no parole in the federal system.
“Stealing from Medicare and Medicaid programs undermines our government’s mission to assist providing healthcare to senior citizens and vulnerable members of our society. Enriching oneself on the backs of law-abiding, tax-paying citizens will not be tolerated, and the punishment is prison time,” said U.S. Attorney Charlie Peeler. “Dr. Moss stole more than $2.2 million by billing the government for work he did not perform. We will continue to work closely with our law enforcement partners to end government fraud. I want to thank HHS, FBI and the Office of State of Georgia Attorney General Chris Carr for their hard work in this matter.”
“The ability to combine resources with our federal partners is critically important as we work together to prosecute those who break the law and take advantage of government programs for their own personal gain,” said Attorney General Chris Carr. “We remain committed to protecting the integrity of the Georgia Medicaid program, its members and the taxpayer dollars used to provide this service, and, as identified by today’s action, we will remain vigilant in our efforts to recover any and all funds spent illegally.”
“Today’s sentencing demonstrates that when medical professionals choose to break the law and corrupt the system to line their pockets with taxpayer dollars, we will work relentlessly to bring those individuals to justice,” said Derrick L. Jackson, Special Agent in Charge of the Office of the Inspector General of the U.S. Department of Health and Human Services. “Protecting precious Medicare and Medicaid funds remains a top priority for the Inspector General and our law enforcement partners.”
“When health care professionals choose to defraud federally funded programs like Medicare and Medicaid there are many victims, including American taxpayers and the people who are rightly entitled to those funds,” said Special Agent in Charge of FBI Atlanta Chris Hacker. “Health care costs are driven up when doctors and staff bill for unnecessary and unfulfilled services and the FBI and our partners will continue to use every resource in our power to stop it.”
Dr. Moss was a practicing physician at South Georgia Health Group, LLC, (SGHG) in Valdosta, Georgia, since 2002. Dr. Moss was also the Medical Director of four Heritage Health (which became Pruitt Health) facilities (Holly Hill Nursing Home, Valdosta Nursing Home, Lakehaven Nursing Home, and Crestwood Nursing Home) between January 2011 and May 2016, where he served as an attending physician for residents at those facilities. Dr. Moss was also the Medical Director of Grant Medical Clinic in Valdosta, an after-hours clinic. According to testimony and evidence presented at trial, Dr. Moss bilked the U.S. government out of more than $2.2 million dollars by falsifying Medicare and Medicaid claims, either by billing for services he actually did not perform, or by utilizing his PA, Mr. Tywon, as an “extender” (a non-physician practitioner) to render services that were billed as if Dr. Moss had performed them himself, netting a larger reimbursement. The evidence showed that Dr. Moss routinely did not render the services he billed under his name, and even visited Las Vegas casinos during at least two periods of time when he submitted bills for services in Valdosta.
The case was investigated by the FBI and the U.S. Department of Health and Human Services – OIG. Assistant U.S. Attorneys Sonja Profit and Lyndie Freeman from the U.S. Attorney’s Office for the Middle District of Georgia, and Assistant Director Jim Mooney from the Georgia’s Office of the Attorney General prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
United States Attorneys, FBI and AARP Team up to Help Educate SeniorsRead the Press Release
CHARLESTON, W.Va. -- The United States Attorney’s Offices for the Southern and Northern Districts of West Virginia and the FBI are teaming up to educate the aging population in the mountain state and their families about the dangers of elder fraud.
Today, United States Attorneys Mike Stuart and Bill Powell, along with FBI Pittsburgh Special Agent in Charge Robert Jones, partnered with the AARP to conduct outreach and raise awareness to educate senior citizens about the latest scams so they do not fall victim. More than 200 seniors in West Virginia had the opportunity to participate in an interactive telephone town hall to learn about the latest financial scams.
“Our seniors are being exploited through grandparent scams, fake prizes, romance scams, fraudulent IRS refunds and deliberate extortion,” said United States Attorney Mike Stuart. “You can rest assured that we are working with our federal, state and local partners to combat all types of elder fraud and to hold the fraudsters accountable. I will do everything within my power to protect West Virginia’s elderly.”
“West Virginia’s senior citizens represent a significant but often vulnerable population. They are regular targets of fraudsters and scammers who often cause catastrophic and irreversible financial losses. Attorney General Barr and all United States Attorneys are aggressively pursuing those who prey on our seniors,” said United States Attorney Bill Powell.
Scammers are targeting senior citizens at an alarming rate. Across the country victims lost $2.71 billion to fraud in 2018 according to statistics collected by the FBI’s Internet Crime Complaint Center. West Virginia victims over the age of 60 lost more than $4 million to scams in 2018, nearly quadrupling from losses in 2017.
"Our seniors did not grow up in a world with technology," said FBI Pittsburgh Special Agent in Charge Robert Jones. "For many, navigating through these advances may be difficult. That's when the predators come in and prey on their vulnerabilities. All of us at the FBI will do everything we can to make sure our seniors are supported and protected from being victims of fraud."
The Department of Justice 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 getting ripped off by scammers; and promote greater coordination with law enforcement partners.
In March of this year, Attorney General William P. Barr and multiple law enforcement partners including the FBI, announced the largest coordinated sweep of elder fraud cases in history. The Department took action in every federal district across the country, through the filing of criminal or civil cases. The cases brought during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars. For more information about the Elder Justice Initiative, please visit: https://www.justice.gov/elderjustice.
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U.S. Attorneys, FBI, and AARP team up to help educate seniorsRead the Press Release
U.S. Attorney Bill Powell, FBI SAC Robert Jones, and U.S. Attorney Mike Stuart take calls during AARP event.The U.S. Attorney’s Offices for the Northern District of West Virginia and the Southern District of West Virginia and the FBI are teaming up to educate the aging population the mountain state and their families about the dangers of elder fraud.
Today, U.S. Attorneys Bill Powell and Mike Stuart partnered with FBI Special Agent in Charge Robert Jones and the AARP to conduct outreach and raise awareness to educate senior citizens about the latest scams so they do not fall victim. More than 200 seniors in West Virginia had the opportunity to participate in an interactive telephone town hall to learn about the latest financial scams.
“West Virginia’s senior citizens represent a significant but often vulnerable population. They are regular targets of fraudsters and scammers who often cause catastrophic and irreversible financial losses. Attorney General Barr and all United States Attorneys are aggressively pursuing those who prey on our seniors,” said Powell.
“Our seniors are being exploited through grandparent scams, fake prizes, romance scams, fraudulent IRS refunds and deliberate extortion,” said United States Attorney Mike Stuart. “You can rest assured that we are working with our federal, state and local partners to combat all types of elder fraud and to hold the fraudsters accountable. I will do everything within my power to protect West Virginia’s elderly.”
Scammers are targeting senior citizens at an alarming rate. Across the country victims lost $2.71 billion to fraud in 2018 according to statistics collected by the FBI’s Internet Crime Complaint Center. West Virginia victims over the age of 60 lost more than $4 million to scams in 2018, nearly quadrupling from losses in 2017.
"Our seniors did not grow up in a world with technology," said FBI Pittsburgh Special Agent in Charge Robert Jones. "For many, navigating through these advances may be difficult. That's when the predators come in and prey on their vulnerabilities. All of us at the FBI will do everything we can to make sure our seniors are supported and protected from being victims of fraud."
The Department of Justice 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 getting ripped off by scammers; and promote greater coordination with law enforcement partners.
In March of this year, Attorney General William P. Barr and multiple law enforcement partners including the FBI, announced the largest coordinated sweep of elder fraud cases in history. The Department took action in every federal district across the country, through the filing of criminal or civil cases. The cases brought during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
For more information about the Elder Justice Initiative, please visit: https://www.justice.gov/elderjustice.
U.S. Attorney's Statement on Federal Charges Brought Against 3 Suspects in El Dorado County Sheriff Deputy's KillingRead the Press Release
Multiple Federal law enforcement agencies have been assisting the El Dorado Sheriff’s Office in this investigation since early Wednesday morning. The United States Attorney’s Office has brought these federal charges in full cooperation and consultation with the El Dorado District Attorney’s Office. We will continue to work collaboratively to ensure that justice is done.
U.S. Attorney encourages safe drug disposalRead the Press Release
WHEELING, WEST VIRGINIA - U.S. Attorney Bill Powell is encouraging residents across the Northern District of West Virginia to safely dispose of unused and unwanted medications and vaping products at the Drug Enforcement Administration’s Drug Take Back Day this weekend.
Drug Take Back Day is Saturday, October 26 from 10 a.m. until 2 p.m. The event, in its ninth year, offers a safe way to rid homes of unwanted and unused medications, preventing them from falling into the wrong hands.
Starting with this October’s campaign, collection sites will now accept vaping devices and cartridges – in addition to tablets, capsules, patches, and other medications in solid forms – at any of its drop off locations. DEA is doing all it can to help dispose safely of vaping devices and liquids to get these products off our streets and out of the hands of children.In April the DEA’s Drug Take Back Day collected nearly 940,000 pounds – or 469 tons – of prescription drugs, more than twice the weight of the Statue of Liberty.
In 2018, nearly 1,000 West Virginians died because of a drug overdose, with 82% of those deaths involving an opioid.
The find the nearest collection site, go to www.deatakeback.com.
U.S. Attorney Trent Shores Reappointed to the U.S. Sentencing Commission’s Tribal Issues Advisory GroupRead the Press Release
The United States Sentencing Commission has reappointed U.S. Attorney Trent Shores this week as the Department of Justice representative for the Tribal Issues Advisory Group (TIAG). The new term will run until Dec. 31, 2022.
“I look forward to serving a second term on the Commission’s Tribal Issues Advisory Group,” said U.S. Attorney Trent Shores. “This group plays an important role in providing to the Commissioners our views on federal sentencing issues relating to American Indian defendants and victims and to offenses committed in Indian Country. It is critical that justice be implemented equitably, transparently, and with an understanding of Indian Country’s unique considerations.”
The TIAG was formed in February 2015. The group is charged assisting the Commission on carrying out its statutory responsibilities; advising the Commission on sentencing issues related to American Indian defendants, victims, and tribal communities; studying the operation of the sentencing guidelines as they pertain to Indian country, and making recommendations for revisions to the guidelines. The group recommends revisions, in part, based on concerns from tribal communities and courts and any potential disparities in the application of the guidelines to Native American defendants. You may find a more detailed description of the TIAG’s responsibilities here.
U.S. Attorney Encourages Idahoans to Participate in DEA’s National Prescription Drug Take Back Day This SaturdayRead the Press Release
BOISE – U.S. Attorney Bart M. Davis will join the Drug Enforcement Administration (DEA) on October 26th in support of the 18th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including 38 here in Idaho. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“The widespread prevalence of unused prescription medication is a significant contributor to drug abuse and addiction,” stated U.S. Attorney Davis. “National Prescription Drug Take Back Day provides an actionable way to rid opioids and other medicines from our nation’s homes. I urge Idahoans to do their part to combat this crisis by going to a collection site and safely disposing of unused, expired, and dangerous prescription medication.”
Starting with this October’s campaign, DEA will now accept vaping devices and cartridges–in addition to tablets, capsules, patches, and other medications in solid forms–at any of its drop off locations. DEA is doing all it can to help dispose safely of vaping devices and liquids to get these products off our streets and out of the hands of children.
Last April, 469 tons (937,443 pounds) of prescription drugs were turned in, more than twice the weight of the Statue of Liberty. Nearly 5,000 local and tribal law enforcement partners signed up to operate close to 6,300 collection sites around the nation. Overall, in its 17 previous Take Back Day events, DEA and its partners have taken in over 11 million pounds—almost 6,000 tons—of expired, unused and unwanted prescription medications. The disposal service is free and anonymous, no questions asked.
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. The initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at www.DEATakeBack.com where you can search by zip code, city, or state.
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Two More Reagor Dykes Employees Plead Guilty, Seven Pleas TotalRead the Press Release
Two Reagor Dykes Auto Group employees pleaded guilty today for their role in the auto group’s floor plan fraud scheme, following an investigation by the Federal Bureau of Investigation’s Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Pepper Laray Rickman, 47, and Sherri Lynn Wood, 53, plead guilty to conspiracy to commit wire fraud before Magistrate Jude Lee Ann Reno in Amarillo Friday morning.
Rickman and Wood are two of seven employees who have confirmed their role in the $50 million Reagor Dykes fraud. Admitted coconspirators include Reagor Dykes Chief Financial Officer Shane Andrew Smith and employees Sheila Miller, Lindsay Williams, Diana Urias, and Paige Johnston.
In plea papers, Rickman, accounting controller at Reagor Dykes Plainview LP (a Toyota store in Plainview, Texas), and Wood, office manager at the Reagor Dykes Auto Company LP (a Ford store in Plainview), admitted the auto group participated in a fraudulent floor plan fraud scheme.
In a practice accounting staff dubbed “dummy flooring,” “fake flooring,” or “re-flooring,” employees dug through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitted new loan applications to Ford Motor Credit Company using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale, Rickman and Wood said in plea papers. After acquiring the new floor plan funding, instead of re-buying the car, Reagor Dykes used the ensuing loan to cover other expenses.
The company’s accounting staff submitted the false information via interstate wire communication, the defendants admitted.
Rickman and Wood each face up to five years in federal prison and may be required to pay at least $27 million in restitution.
The Federal Bureau of Investigation and Internal Revenue Services - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Sean Taylor are prosecuting the case.
Two Han Gil Drug Dealers Sentenced to Combined 60 YearsRead the Press Release
The lead defendant in the Han Gil Hotel criminal case has been sentenced to 30 years in federal prison on drug and gun charges, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Eric Dewayne Freeman, aka “Stuff,” pleaded guilty in June to conspiracy to possess with the intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon. Freeman was sentenced Friday afternoon before U.S. District Judge Karen Gren Scholer alongside coconspirator Kendrick Lamel Washington, aka “Kiki,” who pleaded guilty in May to conspiracy to possess with the intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime. Washington was also sentenced to 30 years in federal prison.
Freeman, 44, and Washington, 40, are two of fifteen defendants who have pleaded guilty in the Han Gil Hotel Town case, which has so far resulted in charges against 22 individuals and one corporation associated with the notoriously dangerous hotel.
“In the seven months since the feds shuttered the Han Gil, defendants have confirmed what we already knew from our investigation – that the hotel was a haven for drug dealers, human traffickers, and violent criminals,” said U.S. Attorney Nealy Cox. “Two of the Han Gil’s most notorious dealers will spend decades behind bars, where they can no longer peddle the substances that have already shattered so many lives.”
“The DEA will pursue investigations, much like the Han Gil Hotel case, until these places are extinct,” said DEA Special Agent in Charge of the Dallas Division Clyde E. Shelley, Jr.
In plea papers, Freeman and Washington both admitted that they and other dealers routinely used so-called “trap rooms” within the Han Gil Hotel to peddle and distribute heroin, methamphetamine and crack cocaine to numerous customers. Users often smoked or injected the drugs on hotel premises, which lay within 1000 feet of Dallas’ Herbert Marcus Elementary School.
Washington admitted that he acted as Freeman’s enforcer, using tactics “designed to instill fear” in individuals Freeman believed had stolen from him or owed him money. In December 2018, Washington used a cell phone to record Freeman torturing a young woman with a butane torch, then showed the video to numerous people inside the hotel.
Freeman, meanwhile, admitted that multiple drug overdoses occurred in Han Gil Hotel rooms during the time the conspiracy was ongoing. The bodies of some of those victims were removed from the hotel and dumped elsewhere. DEA agents discovered the corpse of a twenty year-old female victim who died in December 2018 decomposing in Boren-Hilseweck Park in Oak Cliff almost a month after Freeman and two others carried her body out of the hotel. Law enforcement agents in Coppell, Texas also tied the heroin overdose deaths of two Coppell residents that died in June and July 2018 back to the Han Gil Hotel.
Freeman also admitted the owner of the Han Gil Hotel, codefendant Su Y. Amos Mun, was aware that multiple armed drug dealers were using the hotel to distribute drugs to hundreds of customers. He said Mun charged dealers an inflated room rate, dubbed a “drug tax,” in exchange for allowing them to openly deal out of trap rooms. Mun collected thousands of dollars from Freeman alone, and often tipped off dealers before law enforcement or city officials arrived for inspections, Freeman said in his plea papers.
Mun, 64, pleaded guilty in August to maintaining a drug involved premises, admitting that for more than a year, he profited off dealers openly selling quantities of heroin, methamphetamine, cocaine and other drugs from inside his hotel rooms.
As part of his plea agreement, Mun agreed to forfeit the Han Gil Hotel, which is also the subject of a civil action filed by the U.S. Attorney’s Office alleging the site functioned as a “safe haven for drug distributors” and a “breeding ground for escalating criminal activity.”
The hotel has been shuttered since March 8, when a federal judge granted prosecutors’ motion for a restraining order prohibiting the hotel’s further operation and a task force of more than 50 agents and officers, accompanied by several attorneys, converged on the Han Gil to effect arrests, execute search warrants, and post notices requiring the immediate clearing of the premises.
The Drug Enforcement Administration conducted the investigation with assistance from the Federal Bureau of Investigation, Coppell Police Department, Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshal’s Service, Grand Prairie Police Department, Arlington Police Department, Grapevine Police Department, Lancaster Police Department, the State Department, IRS, U.S. Postal Inspection Service, Plano Police Department, Farmers Branch Police Department, Homeland Security Investigations, Garland Police Department, Rowlett Police Department, Denton Police Department, Lewisville Police Department and McKinney Police Department. Assistant U.S. Attorneys Scott Hogan, NDTX Civil Chief, Lindsey Beran, NDTX Deputy Civil Chief, and Braden Civins filed the civil motion. Assistant U.S. Attorneys Rick Calvert, Chief of NDTX’s Narcotics Section, and Phelesa Guy, Deputy Chief of the Narcotics Section, are prosecuting the criminal case.
Two Charged in Connection with Cocaine Sales and Firearms OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Carl Martin, 34, and Mirnes Julardzija, 33, were arrested on October 23. Both defendants appeared yesterday before U.S. Magistrate Judge John M. Conroy in Burlington. Martin was ordered detained pending detention and probable cause hearings on October 28, 2019. Julardzija was released pending a probable cause hearing on November 12, 2019.
According to a federal criminal complaint filed today, Martin sold cocaine to an undercover agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in September of 2019. The complaint further alleges that Martin subsequently traded cocaine to the undercover agent in exchange for a semiautomatic pistol in October of 2019.
A separate federal criminal complaint alleges that Julardzija aided and abetted Martin’s September, 2019 cocaine sale to the undercover agent.
If convicted of possessing a firearm in relation to a drug trafficking crime, Martin faces a maximum sentence of life imprisonment, a minimum sentence of five years, and up to a $250,000 fine. Martin and Julardzija also face a maximum sentence of up to 20 years in prison if convicted of distributing cocaine. The actual sentences however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaints are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
United States Attorney Christina Nolan commended the investigative efforts of federal, state, and local law enforcement. She stated: “The U.S. Attorney’s Office will continue to prioritize combatting gun and violent crime in connection with the drug trade. The mix of drugs and guns creates grave public safety risks, particularly where, as here, it occurs in areas of high pedestrian foot traffic. Those who traffic guns in connection with the drug trade should consider themselves targets for federal investigation and prosecution.” U.S. Attorney Nolan also thanked the Burlington Police Department, the Drug Enforcement Administration, the South Burlington Police Department, the Vermont State Police, and the U.S. Marshals Service for their assistance with this matter.
“The ATF has an unwavering commitment to remove illegal firearms and narcotics from our neighborhoods. Everyone deserves a community where they feel safe,” stated ATF Boston Field Division Special Agent-in-Charge Kelly D. Brady. “ATF is committed to working with our law enforcement partners and we will continue to use all of our resources to take armed criminals off our streets and put them behind bars where they belong.”
Burlington Police Chief Brandon Del Pozo commented: “Allegedly trading cocaine for a firearm is the type of behavior that makes Vermont a more dangerous place on several levels. We’re grateful for a partnership with ATF and the U.S. Attorney’s Office that protects Vermonters from these dangers.”
The United States is represented in this matter by Assistant U.S. Attorney Wendy Fuller. Carl Martin is represented by Mark Oettinger. Kevin Henry represents Mirnes Julardzija.
Tucson Man Sentenced to 13 Years in Prison for 1998 Child Sexual AbuseRead the Press Release
TUCSON, Ariz. – On October 23, 2019, Christopher James Preston, 52, of Tucson, Arizona, was sentenced by U.S. District Judge James A. Soto to 156 months in prison, followed by lifetime supervised release. Preston is also required to register as a sex offender.
A federal jury previously found Preston guilty in a re-trial of two counts of aggravated sexual abuse of a child. The evidence at the re-trial showed that in the summer of 1998, Preston, a member of the Tohono O’Odham Tribe, sexually abused the 10-year-old victim in Tucson, in the San Xavier district, on the Tohono O’odham reservation. At the time, Preston was the victim’s little league coach.
The investigation in this case was conducted by the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Matthew C. Cassell and Rui Wang, Assistant U.S. Attorneys, District of Arizona, Tucson.
Three Men Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on October 16, 2019, Marcus John Josephson, age 35, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Conspiracy to Distribute a Controlled Substance. Josephson was sentenced to 102 months in prison, to be followed by a term of supervised release of three years.
On August 20, 2019, Judge Ebinger sentenced Josephson’s co-defendants, Dustyn Russell Bond, age 47, and Clayton Dean Stucker, age 31, for Conspiracy to Distribute a Controlled Substance. Bond was sentenced to 176 months of imprisonment, to be followed by a term of supervised release of eight years; and Stucker was sentenced to 77 months in prison, to be followed by a term of supervised release of five years. All three defendants had earlier pleaded guilty to this charge.
On January 10, 2018, Bond and Stucker were stopped by law enforcement in Mills County and found to be in possession of methamphetamine. Bond and Stucker were associated with Marcus Josephson, who assisted them in the distribution of controlled substances in Montgomery County.
This case was investigated by the Southwest Iowa Narcotics Enforcement Task Force, United States Drug Enforcement Administration, Mills County Sheriff’s Department and the Montgomery County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Three KC Tax Preparers Plead Guilty to False Tax Return SchemeRead the Press Release
KANSAS CITY, Mo. – Three Kansas City, Missouri, tax preparers have pleaded guilty in federal court to a scheme to file false tax returns.
Ananeia Derseh, 42, pleaded guilty today before U.S. District Judge Howard F. Sachs to aiding and assisting in the preparation of a false tax return. His brother and co-defendant, Azareia Derseh, 38, pleaded guilty on Thursday, Oct. 24, to the same offense. Co-defendant Quashanda King, 38, of Kansas City, Missouri, pleaded guilty on Oct. 27, 2017, to the same offense.
Azareia Derseh owned and operated a tax preparation business in the Kansas City metropolitan area, under the names Instant Tax Service and Speedy Tax Service, at various locations. Ananiea was the manager in charge of one of the offices and King was the manager in charge of another office.
Ananeia and Azareia Derseh and King each admitted they prepared federal income tax returns for clients containing materially false and fraudulent items. They prepared returns for at least 37 individuals resulting in at least 47 false income tax returns for tax years 2012, 2013, and 2014.
Ananeia and Azareia Derseh and King included higher fees to prepare clients’ returns than what the clients were originally quoted. Often, a false Schedule C was included with clients’ returns to increase clients’ refunds. Client refunds were used to pay the high fees, with the fees most often being deducted from clients’ refunds before the refund was issued to the client. Most of the clients had between $669 and $1,437 in fees deducted from their refund.
According to court documents, the typical client who had their return prepared at Instant Tax Service was a very low wage earner, typically with under $3,000 inW-2 wages. Further, the clients were unsophisticated in tax or financial matters. When they walked into one of the two offices, they were assigned a preparer, who input their W-2 wages, dependents, and other identifying information into the appropriate field of their electronically filed returns. There was no meaningful review of the completed return, and sometimes, the client did not get a copy of the return.
Under federal statutes, each of the defendants is subject to a sentence of up to three years in federal prison without parole and must pay restitution to the Internal Revenue Service in the total amount of federal tax loss as determined by the court at sentencing. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Three Carlisle Farmers Plead Guilty to Charges Related to Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. - Three Carlisle, Kentucky farmers admitted in federal court Thursday, before United States District Judge Karen Caldwell, that they committed crop insurance fraud-related offenses.
Bradley Price, 34, pleaded guilty to conspiring to commit money laundering. According to his plea agreement, Bradley Price farmed tobacco in Nicholas and Bourbon Counties and carried federal crop insurance covering those crops in at least 2013 and 2014. During those two years, Price admitted to working with individuals identified as E.P. and R.W. to hide his crop production from his crop insurance company. The scheme involved Bradley Price providing his tobacco to E.P. to sell and then writing a check for that sales price to Clay’s Tobacco Warehouse. In this way, it appeared that Bradley Price had purchased the tobacco he sold through E.P. from Clay’s Tobacco Warehouse, and Bradley Price never reported this crop production to his insurance company. R.W. then wrote checks covering the price of the sale that tobacco, and E.P. applied 70 percent of those checks to Bradley Price’s bank account, keeping the 30 percent as his payment. This meant that Bradley Price was paid for his crop production, while also receiving an insurance payment from his crop insurance company for damage to that same crop.
Jimmy Price, 57, and Brandon Price, 27, both pleaded guilty to conspiring to commit crop insurance fraud. According to their plea agreements, Jimmy Price farmed tobacco in Nicholas and Bourbon Counties, and Brandon Price farmed tobacco in Nicholas County. Both carried federal crop insurance covering their tobacco in at least 2013 and 2014. In those years, both admitted to engaging in the same scheme as Bradley Price with E.P. and R.W., except that Jimmy and Brandon’s plea agreements state that Bradley Price handled concealing the scheme, after providing Bradley Price with blank checks drawn on their respective bank accounts.
All three defendants are scheduled to be sentenced on January 22, 2020. Bradley Price faces up to 20 years in prison and a maximum fine of $500,000 or twice the amount of loss. Jimmy and Brandon Price face up to five years in prison and a maximum fine of $250,000 or twice the amount of loss. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky; Bethanne M. Dinkins, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr.,, Special Agent in Charge, Federal Bureau of Investigation; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Dwayne Depp, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the guilty pleas.
The investigation was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The United States was represented by Assistant U.S. Attorneys Erin M. Roth and Kathryn A. Anderson.
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