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Wednesday 18 September 2019
Two Southern California Residents Charged with Credit Card FraudRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 20-count indictment on Aug. 22 against Akop Dongelyan, 44, of Glendale, and Artak Vardanyan, 37, of Burbank, charging them with credit card fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced. Vardanyan was arraigned today, with Dongelyan’s arraignment is scheduled for Sept.23.
According to court documents, Dongelyan and Vardanyan used counterfeit credit and debit cards to make fraudulent cash withdrawals of over $200,000 at ATMs in the Fresno area and in Southern California. The counterfeit cards were created using cardholder information stolen via skimming devices installed at various gas stations.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.
If convicted, Dongelyan and Vardanyan each face a maximum statutory penalty of 10 years in prison for access device fraud, a mandatory two years in prison for aggravated identity theft, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Letcher County Men Sentenced for Methamphetamine OffensesRead the Press Release
London, KY- Shiloh Adams, 34, of Jeremiah, Ky., and Mitchell Adams, 35, of Whitesburg, Ky., were sentenced Tuesday, to 150 months in prison and 94 months in prison respectively, by United States District Judge Claria Horn Boom, for drug trafficking and possession of a firearm in furtherance of drug trafficking.
According to their plea agreements, in November 2018, the Adams’ traveled from Letcher County, Ky., to Louisville, Ky., to purchase methamphetamine for purposes of distribution in the Eastern District of Kentucky. Law enforcement stopped the Adams’ vehicle on the return trip to Letcher County. During a search of the vehicle, officers found over 50 grams of methamphetamine a .540 caliber pistol, and $10,249 in cash.
Shiloh Adams pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking. Mitchell Adams pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.
Under federal law, the Defendants must serve 85 percent of their prison sentence. Shiloh Adams and Mitchell Adams will be under the supervision of the U.S. Probation Office for six years and five years respectively.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division, jointly announced the sentence.
The investigation was conducted by the Louisville Police Department and the ATF’s Ashland Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna Reed.
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Two Fayetteville Gang Members Sentenced for Gun CrimesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that Chief United States District Judge Terrence W. Boyle sentenced TEVON FAYSON 24, of Fayetteville, North Carolina, to 180 months’ imprisonment, followed by a term of supervised released, and HASAN THOMAS 24, of Fayetteville, North Carolina, to 130 months’ imprisonment, followed by a term of supervised released.
FAYSON and THOMAS were named in a five-count Indictment on October 18, 2018. Count One charged Possession of a Firearm by a Convicted Felon, Count Two charged Possession of a Firearm by a Convicted Felon and Aiding and Abetting, Count Three charged Forcibly Assaulting an Officer or Employee of the United States and Aiding and Abetting, Count Four charged Robbing Personal Property belonging to the United States and Aiding and Abetting, and Count Five charged Brandishing, Carrying, and Using a Firearm During and in Relation to a Crime of Violence and Aiding and Abetting.
On April 16, 2019, FAYSON pled guilty to Counts Two and Four, and on May 20, 2019, THOMAS pled guilty to Counts Two through Five.
On September 5, 2018, as part of an undercover operation, law enforcement arranged a meeting with FAYSON to purchase controlled substances and a firearm. At the time of the controlled purchase, FAYSON was a convicted felon and prohibited from possessing a firearm. On September 7, 2018, law enforcement arranged another meeting with FAYSON to conduct a controlled purchase for controlled substances and firearms. FAYSON and THOMAS then traveled to Murchison Road in Fayetteville, North Carolina where FAYSON and THOMAS went to a residential area to complete the controlled purchase. There, THOMAS, a convicted felon, provided FAYSON with a loaded firearm, which he brandished during the controlled purchase. Audio and video surveillance captured the entire transaction. According to law enforcement, both men are validated gang members.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fayetteville Police Department. Assistant United States Attorney Chad E. Rhoades prosecuted the case for the government.
Two Defendants Arrested in $10 Million Tech Support Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced charges against ROMANA LEYVA and ARIFUL HAQUE for participating in a conspiracy that for several years exploited elderly victims by remotely accessing their computers and convincing victims to pay for computer support services they did not need, and which were never actually provided. In total, the conspiracy generated more than $10 million in proceeds from at least approximately 7,500 victims. LEYVA was arrested today in Las Vegas, Nevada, and will be presented, in the District of Nevada, before Magistrate Judge Cam Ferenbach. HAQUE was arrested this morning in Bellerose, New York, and will be presented today before Magistrate Judge Ona T. Wang in the Southern District of New York. The case has been assigned to U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants participated in a sophisticated fraud scheme that preyed on the elderly. The conspirators allegedly caused pop-up windows to appear on victims’ computers – pop-up windows that claimed, falsely, that a virus had infected the victim’s computer. Through this and other misrepresentations, this fraud scheme deceived thousands of victims, including some of society’s most vulnerable members, into paying a total of more than $10 million.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “In a fraud scheme that targeted thousands of elderly victims who were swindled out of millions, the conspirators allegedly posed as tech support to fix computers supposedly infected by malware. It is our duty as citizens to protect our growing elderly population and it is our duty as law enforcement to investigate and arrest those, like Leyva and Haque, who seek to make a profit through fraud and deception.”
According to the Indictment unsealed in Manhattan federal court:[1]
From March 2015 through December 2018, LEYVA and HAQUE were members of a criminal fraud ring (the “Fraud Ring”) based in the United States and India that committed a technical support fraud scheme targeting elderly victims located across the United States and Canada, including in the Southern District of New York. The Fraud Ring’s primary objective was to trick victims into believing that their computers were infected with malware, in order to deceive them into paying hundreds or thousands of dollars for phony computer repair services. Over the course of the conspiracy, the Fraud Ring generated more than $10 million in proceeds from at least 7,500 victims.
The scheme generally worked as follows. First, the Fraud Ring caused pop-up windows to appear on victims’ computers. The pop-up windows claimed, falsely, that a virus had infected the victim’s computer. The pop-up window directed the victim to call a particular telephone number to obtain technical support. In at least some instances, the pop-up window threatened victims that, if they restarted or shut down their computer, it could “cause serious damage to the system,” including “complete data loss.” In an attempt to give the false appearance of legitimacy, in some instances the pop-up window included, without authorization, the corporate logo of a well-known, legitimate technology company. In fact, no virus had infected victims’ computers, and the technical support phone numbers were not associated with the legitimate technology company. Rather, these representations were false and were designed to trick victims into paying the Fraud Ring to “fix” a problem that did not exist. In exchange for victims’ payment of several hundred or thousand dollars (depending on the precise “service” victims purchased), the purported technician remotely accessed the victim’s computer and ran an anti-virus tool, which is free and available on the Internet. The Fraud Ring also re-victimized various victims again.
LEYVA’s roles in the scheme included (1) creating several fraudulent corporate entities that were used to receive fraud proceeds from victims, (2) recruiting others (including through misrepresentations) to register fraudulent corporate entities that became part of and facilitated the activities of the Fraud Ring, and (3) assisting others in setting up fraudulent corporate entities and bank accounts, including coaching them to make misrepresentations to bank employees where necessary. HAQUE registered a fraudulent corporate entity that was used to receive fraud proceeds from victims on behalf of the Fraud Ring. HAQUE also provided guidance to a co-conspirator who registered a different fraudulent corporate entity that was part of the Fraud Ring, and deposited fraud proceeds into accounts associated with that entity.
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LEYVA, 35, of Las Vegas, Nevada, and HAQUE, 33, of Bellerose, New York, are each charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised HSI’s El Dorado Task Force, Cyber Intrusion/Cyber Fraud Group for its outstanding work on the investigation and the NYPD for their assistance on this case. He added that the investigation is continuing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Arrested for Extortion of Startup Cryptocurrency CompanyRead the Press Release
A complaint was unsealed earlier today in federal court in Brooklyn charging Steven Nerayoff and Michael Hlady with extortion. Nerayoff, an attorney, and Hlady threatened to destroy a startup cryptocurrency company if they were not paid millions of dollars in the cryptocurrency Ether (ETH). Nerayoff was arrested this morning, and will make his initial appearance this afternoon before United States Magistrate Judge Steven L. Tiscione. Hlady was arrested this morning in Rhode Island, and will make his initial appearance this afternoon in federal court in Providence.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, announced the charges.
“As alleged, Nerayoff and Hlady carried out an old-fashioned shakedown, to be paid off with 21st century cryptocurrency,” stated United States Attorney Donoghue. “This Office and our partners at the FBI are committed to protecting businesses from extortion, whether the demands are for U.S. dollars or cryptocurrency.”
“When you peel back the layers of this case, an age-old extortion scheme is revealed with a modern day twist,” stated FBI Assistant Director-in-Charge Sweeney. “Imposing forceful demands on a company for personal gain is risky business, whether one's preference is to be paid off with cryptocurrency or cold hard cash. The FBI will continue to seek justice for victims who businesses have been targeted by these types of scams.”
The victim company, headquartered in Seattle, Washington, is a startup mobile-based business that specializes in generating user traffic to clients’ products by issuing its own cryptocurrency tokens as loyalty rewards. In November 2017, the company planned an Initial Coin Offering (ICO) to raise capital, and signed an agreement with an entity operated by Nerayoff. Under the agreement, Nerayoff agreed to help the company complete a successful ICO in return for 22.5% of all funds raised, and 22.5% of the issued cryptocurrency tokens. Just days before the ICO was to occur, Nerayoff told executives of the company that his compensation would have to be increased by approximately 17,000 ETH to 30,000 ETH (worth approximately $8.75 million at the time), or he would sabotage the ICO and destroy the company. The company paid Nerayoff as demanded, despite not receiving any additional services.
Subsequently, Nerayoff introduced the executives to Hlady, who used the alias “Michael Peters” and who Nerayoff described as his “operations guy.” Hlady told the executives that he had been part of the Irish Republican Army, the National Security Agency, the Central Intelligence Agency and the FBI, and that he had “taken down” a head of state. In March 2018, Nerayoff and Hlady threatened one of the executives with destruction of the company if not paid additional funds and company tokens. Later that month, Nerayoff demanded a purported loan of 10,000 ETH (worth approximately $4.45 million at the time), and Hlady followed up with a text message to the executive stating, “I promise I will destroy your community” if Nerayoff’s demands are not met. The company then transferred 10,000 ETH to Nerayoff. The “loan” was never repaid.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Nerayoff and Hlady each face up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Andrey Spektor are in charge of the prosecution.
The Defendants:
Steven Nerayoff
Age: 48
Great Neck, New YorkMichael Hlady (also known as “Michael Peters”)
Age: 47
East Greenwich, Rhode IslandE.D.N.Y. Docket No. 19-MJ-830
Three men indicted for their alleged roles in a conspiracy to distribute anabolic steroids via the dark webRead the Press Release
Three men were indicted in federal court for their alleged roles in a conspiracy to distribute anabolic steroids via the dark web.
Named in the four-count indictment are: Ronald D. Roginsky, 52, of Brunswick; John M. Ambrose, 40, of Chicago, and Eric S. Angle, 52, of Wexford, Pennsylvania.
All three are charged with one count each of conspiracy to distribute controlled substances, conspiracy to import controlled substances, distributing controlled substances by means of the Internet, and conspiracy to launder money.
According to the indictment filed in U.S. District Court in Cleveland:
Roginsky, Ambrose and Angle were members of the “qu4ntum” drug trafficking organization. The organization maintained and controlled the qu4ntum dark net vendor account on AlphaBay, Dream Market, Wall Street and other dark net marketplaces.
The qu4ntum drug organization distributed anabolic steroids and other controlled substances over the dark web, websites and forums operating on the clear web and via person-to-person transactions, according to the indictment.
The organization used the qu4ntum account as an online storefront for the sale of anabolic steroids and other controlled substances. The group imported steroids from China and elsewhere and shipped the drugs to locations throughout the U.S.
They used the U.S. Postal Service, third-party shipping companies and hand-to-hand transactions as a means of distribution. They used various means to hide their identification as the shippers of drug parcels, including opening P.O. boxes under fictitious names, according to the indictment.
Sales of controlled substances were paid for using cryptocurrency, such as Bitcoin, and cash, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including each defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Daniel Riedl and Segev Phillips following an investigation by the U.S. Postal Inspection Service, Federal Bureau of Investigation, Homeland Security Investigations, Internal Revenue Service – Criminal Investigations and the Medina County Drug Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Texas Healthcare Fraud Takedown Results in Charges Against 58 IndividualsRead the Press Release
The Justice Department announced today a coordinated health care fraud enforcement operation across the state of Texas, involving charges against a total of 58 individuals across all four federal districts in Texas for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, Health and Human Services-Office of Inspector General (HHS-OIG) and the Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Veterans Affairs-OIG and the Department of Labor, various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), Department of Labor-Office of Worker’s Compensation Programs, and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.
Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills.
“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists, and others who may have long believed they could perpetrate their frauds behind closed doors.”
“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment, or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”
“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox, and Joe Brown,” said U.S. Attorney John Bash of the Western District of Texas. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”
“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”
“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said HHS - OIG Special Agent in Charge C.J. Porter. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”
“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”
Among those charged in the Northern District of Texas are the following:
- Michael Charles Braddick, Kyle Martin Hermesch, and Bioflex Medical were charged for their alleged participation in a scheme to defraud the Department of Labor- Office of Worker’s Compensation Programs. Bioflex Medical is located in Dallas, Texas. The case is being prosecuted by Special Assistant U.S. Attorney Jennifer Bray.
- Nehaj Rizvi was charged for his alleged participation in a scheme to defraud Medicare through Life Spring Housecall Physicians, Inc., a company located in Dallas, Texas. The case is being prosecuted by Assistant U.S. Attorney Douglas Brasher.
- Dr. Brian Carpenter and Jerry Hawrylak were charged for their alleged participation in a scheme to defraud TRICARE through a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
- Leah Hagen and Michael Hagen were charged for their alleged participation in conspiracies to pay and receive kickbacks and launder money through Metro DME Supply and Ortho Pain Solutions, both durable medical equipment companies in Arlington, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess.
- Nilesh Patel, Dr. Craig Henry, and Bruce Henry were charged for their alleged participation in a scheme to defraud TRICARE through marketing company RxConsultants and a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Carlos Lopez of the Fraud Section.
- Bruce Stroud and Bobbi Stroud were charged for their alleged participation in a scheme to defraud Medicare through New Horizons Durable Medical Equipment, Striffin Medical Supply, and 4B Ortho Supply, all durable medical equipment companies located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Trial Attorney Carlos Lopez.
- Jamshid Noryian, Dehshid Nourian, Christopher Rydberg, Leyla Nourian, Ashraf Mofid, Dr. Leslie Benson, Dr. Michael Taba, and Ali Khavarmanesh were charged for their alleged participation in a scheme to defraud the Department of Labor- Office of Worker’s Compensation and Blue Cross Blue Shield and conspiracies to launder money and evade the payment of taxes through Ability Pharmacy, Industrial & Family Pharmacy, and Park Row Pharmacy, all located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the MFSF, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Texas Health Care Fraud and Opioid Takedown Results in Charges Against 58 IndividualsRead the Press Release
The Justice Department announced today a coordinated health care fraud enforcement operation across the state of Texas, involving charges against a total of 58 individuals across all four federal districts in Texas for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in losses and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, Health and Human Services-Office of Inspector General (HHS-OIG) and the Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Veterans Affairs-OIG, the Department of Labor and various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), Department of Labor-Office of Worker’s Compensation Programs, and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.
According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills.
“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists, and others who may have long believed they could perpetrate their frauds behind closed doors.”
“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment, or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”
“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox, and Joe Brown,” said U.S. Attorney John Bash of the Western District of Texas. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”
“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”
“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of HHS-OIG. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”
“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”
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Among those charged in the Northern District of Texas are the following:
Dr. Brian Carpenter and Jerry Hawrylak were charged for their alleged participation in a scheme to defraud TRICARE through a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
Leah Hagen and Michael Hagen were charged for their alleged participation in conspiracies to pay and receive kickbacks and launder money through Metro DME Supply and Ortho Pain Solutions, both durable medical equipment (DME) companies in Arlington, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess.
Nilesh Patel, Dr. Craig Henry and Bruce Henry were charged for their alleged participation in a scheme to defraud TRICARE through marketing company RxConsultants and a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Carlos Lopez of the Fraud Section.
Bruce Stroud and Bobbi Stroud were charged for their alleged participation in a scheme to defraud Medicare through New Horizons Durable Medical Equipment, Striffin Medical Supply and 4B Ortho Supply, all DME companies located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Trial Attorney Carlos Lopez.
Jamshid Noryian, Dehshid Nourian, Christopher Rydberg, Leyla Nourian, Ashraf Mofid, Dr. Leslie Benson, Dr. Michael Taba and Ali Khavarmanesh were charged for their alleged participation in a scheme to defraud the Department of Labor-Office of Worker’s Compensation and Blue Cross Blue Shield and conspiracies to launder money and evade the payment of taxes through Ability Pharmacy, Industrial & Family Pharmacy and Park Row Pharmacy, all located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
Michael Charles Braddick, Kyle Martin Hermesch and Bioflex Medical were charged for their alleged participation in a scheme to defraud the Department of Labor-Office of Worker’s Compensation Programs. Bioflex Medical is located in Dallas, Texas. The case is being prosecuted by Special Assistant U.S. Attorney Jennifer Bray.
Nehaj Rizvi was charged for his alleged participation in a scheme to defraud Medicare through Life Spring Housecall Physicians Inc., a company located in Dallas, Texas. The case is being prosecuted by Assistant U.S. Attorney Douglas Brasher.
Among those charged in the Southern District of Texas are the following:
Diana Hernandez, Kathy Hernandez, Hieu Troung, R.P.H., Clint Randall, Prince White, Charles Walton and Cedric Milbrurn were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through S&S Pharmacy of Houston, Texas. The case is being prosecuted by Trial Attorney Devon Helfmeyer of the Fraud Section.
Franklin Nwabugwu, R.P.H. was charged for his alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through Golden Pharmacy of Houston, Texas. The case is being prosecuted by Trial Attorney Devon Helfmeyer.
Steven Inbody, M.D. and Hoai-Huong Truong were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose. The case is being prosecuted by Trial Attorney Catherine Wagner.
Ashley McCain, John Sims, Gregory Comer, Kesia Banks, Jacqueline Hill and Horace LeBlanc were charged for their alleged participation in a scheme to unlawfully distribute and dispense a controlled substance without a legitimate medical purpose through Continuous Medical Care and Rehabilitation. The case is being prosecuted by Assistant Deputy Chief Aleza Remis of the Fraud Section and Trial Attorney Devon Helfmeyer.
Among those charged in the Eastern District of Texas are the following:
Demetrius Cervantes, 44, of McKinney, Texas, Amanda Lowry, 39, of Sherman, Texas, and Lydia Henslee, 27, of Denison, Texas, were indicted for conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification. The case involves the breach of a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients of the provider. The information that was stolen from the provider was “repackaged” in the form of false and fraudulent physician orders and sold to DME providers and contractors. Within approximately eight months, the defendants obtained more the $1.4 million in proceeds from the sale of the stolen information. The proceeds of the offenses were traced and the following forfeitable assets were identified: a 2019 Land Rover Range Rover SC; a 2019 Dodge Durango; a 2018 Polaris RZR XP4 1000 EPS; a 2019 Can-Am Outlander 450; a 2019 Sea-Doo RXT-X 300 W; a 2019 Sea-Doo RXT-X 300 W; and a 2019 Karavan Sea-Doo Move. This case is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan.
Joseph Valdie Kimble, 62, of Longview, Texas, pleaded guilty to health care fraud. Kimble operated Tiger EMS, a business providing non-emergency ambulance transport, mostly between skilled nursing centers and hospitals and dialysis centers. Ambulance providers may bill for ambulance services only if there is a demonstrated medical need, which requires that (a) the beneficiary be bed-confined, and it is documented that other methods of transportation are contraindicated; or (b) the beneficiary's medical condition is such that transportation by ambulance is medically required. Kimble disregarded medical necessity requirements and billed Medicare and Medicaid for ambulance services provided to patients for whom ambulance transport was not medically necessary. The plea agreement provides for an agreed sentence of 30 months in prison and $751,986.80 in restitution. This case is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.
Among those charged in the Western District of Texas are the following:
Orlando Garcia-Moya, owner and president of Fleet Ambulance Co. in San Antonio (Fleet), and Melody Ann Villareal, emergency medical technician and Fleet supervisor, were charged for their roles in a scheme to defraud Medicaid by submitting over $2.5 million in fraudulent claims for non-emergency ambulance transportation that was never provided. As a result of the scheme, Fleet received over $1 million in Medicaid funds. The case is being prosecuted by Special Assistant U.S. Attorney Rex Beasley and Assistant U.S. Attorney John Kennedy.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the MFSF, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Texas Health Care Fraud and Opioid Takedown Results in Charges Against 58Read the Press Release
HOUSTON - The Justice Department has announced a coordinated health care fraud enforcement operation across the state of Texas involving charges against a total of 58 individuals, several of which are charged in Houston. They were allegedly involved in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, while 20 were charged for their role in diverting opioids.
The Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners led the enforcement actions. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, FBI, Department of Health and Human Services – Office of Inspector General (HHS-OIG) and Drug Enforcement Administration. In addition, the operation includes the participation of the Veterans Affairs – OIG and the Department of Labor (DOL), various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), DOL - Office of Worker’s Compensation Programs and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.
According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills.
“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”
“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists and others who may have long believed they could perpetrate their frauds behind closed doors.”
“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”
“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of HHS-OIG. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”
“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”
Among those charged in the Southern District of Texas are:
Diana Hernandez, Kathy Hernandez, Hieu Troung R.P.H., Clint Randall, Prince White, Charles Walton and Cedric Milbrurn were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through S&S Pharmacy of Houston.
Franklin Nwabugwu R.P.H. was charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through Golden Pharmacy of Houston.
Steven Inbody M.D. and Hoai-Huong Truong were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose.
Ashley McCain, John Sims, Gregory Comer, Kesia Banks and Jacqueline Hill were charged for their alleged participation in a scheme to unlawfully distribute and dispense a controlled substance without a legitimate medical purpose through Continuous Medical Care and Rehabilitation.
Trial Attorneys Devon Helfmeyer and Catherine Wagner and Assistant Deputy Chief Aleza Remi, all of the Fraud Section, are prosecuting the respective cases.
Several others were also charged in the Northern District of Texas (NDTX), Eastern District of Texas (EDTX) and Eastern District of Texas (EDTX).
“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said NDTX U.S. Attorney Erin Nealy Cox. “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said EDTXU.S. Attorney Joseph D. Brown of the “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox and Joe Brown,” said WDTX U.S. Attorney John Bash. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”
The Fraud Section leads the MFSF, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Suspected Columbus gang member sentenced to 42 months in prison for illegal possession of firearms, ammunitionRead the Press Release
COLUMBUS, Ohio – Corey D. Wilder, Jr., 27, of Columbus was sentenced in U.S. District Court to serve 42 months in prison for possessing a loaded AR-15 assault-style rifle during a standoff with members of a rival gang in south Columbus in 2017.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Acting Columbus Police Chief Thomas Quinlan announced the sentence handed down September 16 by U.S. District Judge Edmund A. Sargus Jr.
According to court documents, Columbus Police identified Wilder, a suspected gang member, alongside documented South Park/Fetti Nation gang members outside apartments where Wilder lived in July 2017 when a dispute erupted with a rival gang who threatened to shoot up Wilder’s girlfriend’s sister’s car. A Columbus Police officer knew Wilder by sight and knew he was a convicted felon who was not allowed to possess a gun. Wilder was carrying an AR-15 style rifle with a loaded magazine containing 31 live rounds of ammunition. A search of Wilder’s apartment recovered at least nine other firearms, several of which were loaded, along with illegal drugs. Wilder pleaded guilty on April 11, 2019 to one count of possession of a firearm by a convicted felon.
Wilder has been in custody since his arrest. Two others involved in the incident received substantial sentences as well. Michael Chester, 28, was sentenced to 51 months in prison. Davonta Flood, 22, was sentenced to 33 months in prison. Each pleaded guilty to illegally possessing firearms because they were convicted felons.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Glassman commended the cooperative investigation by the ATF and Columbus Police Department, as well as Assistant United States Attorney Jonathan J. C. Grey, who is representing the United States in this case.
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St. Croix Man Sentenced to Six and a Half Years in Federal Prison for Possession with Intent to Distribute Crack CocaineRead the Press Release
St. Croix, USVI – Roosevelt Dowling, 59, of St. Croix, was sentenced on September 18, 2019, in District Court on one count of Possession of Crack Cocaine with Intent to Distribute United States Attorney Gretchen C.F. Shappert announced.
Chief Judge Wilma A. Lewis sentenced Dowling to a prison term of 78 months (6.5 years), to be followed by 5 years of supervised release, a $1,000 fine, and a $100 special assessment.
According to court documents, on January 30, 2017, law enforcement officers executed a search warrant on Dowling’s Estate La Grande Princess residence and vehicle. These officers seized approximately 31 grams of crack cocaine, 759 grams of cocaine hydrochloride, 19 marijuana plants, 2 digital scales, and $6,690 in cash.
The case was investigated by the Drug Enforcement Administration and the Virgin Islands Police Department. Assistant U.S. Attorney Meredith J. Edwards prosecuted the case.
St. Croix Man Arrested on Drug and Firearm Charges Following Search of His Anna Hope ResidenceRead the Press Release
St. Croix, USVI – Troy Patterson, 51, of St. Croix, appeared before Magistrate Judge George W. Cannon for an Initial Appearance after his arrest by Drug Enforcement Administration (DEA) Special Agents on the charges of Possession of Marijuana with the Intent to Distribute; Possession of Cocaine with the Intent to Distribute; Maintaining Drug-Involved Premises; Possession of a Firearm in Furtherance of Drug Trafficking; and Fugitive in Possession of a Firearm.
According to court documents, in the early morning of September 18, 2019, law enforcement agents and officers executed a search warrant at Patterson’s Anna Hope residence. The search resulted in the seizure of 301 marijuana plants, approximately 117 grams of processed marijuana, approximately 168 grams of cocaine, and a loaded Taurus .38 caliber firearm. Additionally, Patterson had an active 2004 warrant from Oregon for failing to appear on Dangerous Drugs violations.
The case was investigated by the Drug Enforcement Administration and the Virgin Islands Police Department and is being prosecuted by Assistant U.S. Attorney Melissa Ortiz.
United States Attorney Gretchen C.F. Shappert reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
South Texan Lands in Prison After Trying to Smuggle Cocaine Through CheckpointRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Hidalgo drug smuggler has been ordered to federal prison following his conviction of possession with the intent to distribute nearly two kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick. Josue Rivera pleaded guilty May 30, 2019.
Today, U.S. Senior District Judge Nelva Gonzales Ramos ordered Rivera to serve 60 months in prison to be immediately followed by four years of supervised release.
On Feb. 18, 2019, Rivera drove his vehicle into the primary inspection area of the Border Patrol (BP) checkpoint in Falfurrias. Immediately thereafter, a service K-9 alerted to the vehicle by pulling hard towards its direction.
Upon questioning, Rivera claimed to be on his way to work in the oil field. However, authorities noticed he actually did not have any work equipment with him.
They searched the vehicle and discovered 1.95 kilograms of cocaine wrapped in two bundles hidden inside the door of the vehicle. They immediately arrested him.
The estimated street value of the drugs was $179,200.
Rivera has been on bond and was ordered to surrender himself to the U.S. Marshal Service on a date to be determined in the near future for transfer to a U.S. Bureau of Prisons facility.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney Joel Dunn is prosecuting the case.
Six Cuban Nationals Indicted for Gas Pump Skimming SchemeRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging six southern Florida men for their respective roles in a bank fraud and aggravated identity theft conspiracy.
According to the indictment, the defendants, all of whom are Cuban nationals, placed skimming devices on gas pumps located in the Eastern District of Virginia. The skimming devices were capable of recording the credit and debit card numbers, along with their PINs, of the customers that used their cards at the gas pumps. In April and May 2018, using the stolen card information, the defendants traveled between Harris Teeter store locations, among other destinations, to withdraw money from the victims’ bank accounts and purchase prepaid debit cards.
Below is a table which lists the name, age, hometown of each defendant. They have all been charged with bank fraud, conspiracy to commit bank fraud and aggravated identity theft.
Name, Age
Hometown
Pedro Emilio Duran, 40
Miami, Florida
Yariel Monsibaez Ruiz, 28
Hialeah, Florida
Ariel Mora Quijada, 25
Miami, Florida
Guillermo Bello Fuentes, 33
Miami, Florida
Jorge Bello Fuentes, 30
Homestead, Florida
Luis Miguel Fernandez Cardente, 28
Coral Gables, Florida
If convicted, each defendant faces a maximum penalty of 30 years in prison. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
The Northampton County Sheriff’s Office has provided significant and ongoing assistance with the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-109.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Shaker Heights man indicted violations related to improperly operating an incineratorRead the Press Release
A Shaker Heights man was indicted in federal court for violations related to improperly operating an incinerator.
Anthony Gray, 63, was indicted on one count of conspiracy to defraud the United States.
According to the indictment:
Gray was the co-owner of Lomack Drum Company (LDC), also known as L. Gray Barrel & Drum and Gray Container LLC. The company was located in Cleveland and reconditioned metal drums.
Gray served as operations manager and sales manager, while another person, identified in court documents as Owner 2, served as environmental manager and maintenance manager.
Some drums were passed through an incinerator at the facility as part of the reconditioning process. The contents of the drums were burned out as they passed through the incinerator. The incinerator had to be operated above a certain temperature, otherwise incomplete combustion would occur, producing dioxins and furans.
A temporary restraining order was issued in 2009 ordering LDC to cease operations of the incinerator at its facility. Gray and Owner 2 agreed to several new conditions with the operation of the incinerator, including testing the incinerator in the presence of an inspector demonstrating it could operate about 1,600 degrees Fahrenheit, according to indictment.
Gray and Owner 2 scheduled compliance demonstrations with inspectors but the incinerator did not maintain the required operating temperature. To date, LDC has not demonstrated the incinerator can be operated according to its permit.
Gray and Owner 2 directed and were aware the incinerator operated at night, concealing violations of the facility’s permit. Gray and Owner 2 also lied to authorities about operating the incinerator, according to the indictment.
Gray and Owner 2, as well as LDC employees, operated the incinerator after dark and at night numerous times in 2013 and 2014. This included placing drums containing paints and solvents onto the conveyor belt going through the incinerator.
This resulted in the burning of several hundred drums to be burned every night the incinerator burned, causing flaming drums visible from several hundred feet away and at times emitted an offensive odor, according to the indictment, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Brad J. Beeson following an investigation by U.S. EPA Criminal Investigation Division, Ohio Bureau of Criminal Investigation, and the Ohio EPA - Special Investigations Unit, with assistance from the Cleveland Division of Police, Cleveland Fire Department, and Cleveland Division of Air Pollution Control.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Salem Man Charged with Transmitting Threatening Communications (Photo)Read the Press Release
PORTLAND, Ore.—A federal criminal complaint was unsealed today charging a Salem, Oregon man with threatening Social Security Administration (SSA) officials after being denied Supplemental Security Income (SSI) benefits.
Erick Carlsen, 45, is charged with transmitting threatening communications in violation of 18 U.S.C. § 875(c).
According to the complaint, on July 24, 2019, Carlsen allegedly engaged in threatening behavior at an SSA benefits review hearing in Salem. At the hearing, Carlsen yelled at the Administrative Law Judge and threatened future physical violence. Salem police officers responded and Carlsen left without further incident. Carlsen livestreamed his actions on Facebook and later posted additional threats.
On September 11, 2019, Carlsen left a voicemail for an SSA Office of Inspector General Agent in which he said, “I’m going to go to this hearing and people are going to [expletive] pay. Do you understand? You guys are going to [expletive] pay.” The same day, Carlsen posted another threat on Facebook entitled “Why do People Go on Shooting Sprees.” In the post, Carlsen claimed that he would “…make the front page and air on every TV station” and “…make sure the whole country stands up and takes notice…”
The next day, investigators from the Federal Protective Service (FPS) interviewed Carlsen at his home in Salem. During the conversation, Carlsen was visually agitated and appeared to be preparing for a fight. Carlsen told the investigators he suffered from mental health issues that cause anger and that he does not leave his property because he is never sure what he will do. When they discussed his upcoming SSA hearing, Carlsen said that he would not bring weapons, but that he could not promise he wouldn’t hurt anyone.
A concerned citizen notified law enforcement of Carlsen’s Facebook posts and later told investigators, “I really feel like he has the potential to follow through.” On September 17, 2019, Carlsen was arrested by the Marion County Sheriff’s Office without incident.
Carlsen made his first appearance in federal court today in Portland. He will be arraigned on October 16, 2019.
This case was investigated by the SSA Office of Inspector General, FPS, FBI, Marion County Sheriff’s Office and Salem Police Department and is being prosecuted by Rachel Sowray, Special Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov. For immediate threats to life and safety, please call 9-1-1.
Screenshot of a Facebook post threatening to attack the Social Security AdministrationRochester Man Sentenced for Heroin Possession and Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Delisio, 47, of Rochester, NY, who was convicted of possession of heroin with intent to distribute and possession of a firearm and ammunition by a convicted felon, was sentenced to serve 100 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Cassie Kocher, handled the case, stated that the defendant sold heroin between September 29, 2017, and April 11, 2018 to individuals working with the Drug Enforcement Administration. Delisio was arrested on April 11, 2018, following a vehicle stop. The defendant had approximately $34,650 in cash in his possession and officers found a bottle in the vehicle containing residue of suspected heroin, scales which are commonly used to process narcotics for distribution, and a .22 caliber Ruger handgun.
During a subsequent search of Delisio’s residence, officers recovered three more firearms and ammunition. The defendant was previously convicted in Wayne County Court in 2013 of Criminal Possession of a Controlled Substance in the Fourth Degree; in 2009 of Criminal Sale of a Controlled Substance in the Fifth Degree; and in 2002 of Burglary in the Third Degree. As a result, Delisio is legally prohibited from possessing firearms and ammunition.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Wayne County Sheriff’s Office, under the direction of Sheriff Barry Virts.# # # #
Registered Sex Offender in Kansas Convicted on Federal Child Porn ChargesRead the Press Release
WICHITA, KAN. – A registered sex offender living in western Kansas was convicted today on federal child pornography charges, U.S. Attorney Stephen McAllister said.
A federal jury convicted Wayne Benjamin Wasson, 59, Great Bend, Kan., on four counts of uploading child pornography to the internet and one count of possessing child pornography.
During trial, a prosecutor presented evidence that Yahoo and Google detected child pornography originating from Wasson’s residence. The digital trail led investigators to Wasson, who admitted he had received child pornography via Skype and had operated a number of other accounts. Investigators found child pornography within the accounts and on Wasson’s devices.
Wasson registered as a sex offender in 2007 following a conviction for possession of child pornography.
Sentencing is set for Dec. 13, 2019. He faces a penalty of not less than 15 years in federal prison and a fine up to $250,000.
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Registered Nurse Sent to Federal Prison for Stealing Opioids from HospitalRead the Press Release
DENVER – United States Attorney Jason R. Dunn announces that registered nurse Kacye Unruh was sentenced to 24 months in federal prison for stealing opioids by deceit and for tampering with a consumer product. The defendant was sentenced today in Denver by United States District Court Judge William J. Martinez. At the conclusion of her prison sentence, she will serve 3 years of supervised release.
According to the plea agreement and facts presented at sentencing, Unruh was addicted to fentanyl and/or hydromorphone while she worked as a registered nurse in the acute dialysis department at the University of Colorado Hospital from May to July, 2016. During her employment, Unruh used her position as a nurse to access secure machines – called Pyxis machines – to steal opioids intended to treat patients’ pain. She used a needle and syringe to inject herself with those stolen opioids in a bathroom. She then re-filled the partially used opioid vials with saline solution and placed the tampered vials back into the Pyxis machines. Tests of certain vials showed that they contained substantially less of the active ingredients than expected or were tainted with substances other than the active ingredients expected to be present in those vials.
The evidence presented at sentencing caused the Court to infer that patients at the hospital received tainted opioids to treat their pain as a result of Unruh’s conduct. The Court concluded that Unruh violated the trust placed in her by the hospital and its patients.
“This defendant took potent pain medicine that was intended for patients and used it to satisfy her addiction,” said United States Attorney Jason Dunn. “Whatever else may happen in addressing the opioid crisis, we must ensure that patients in hospitals receive the appropriate medication they need to recover.”
“FDA will continue to aggressively pursue those health care practitioners who prey on vulnerable patients by removing their needed medications,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations, Kansas City Field Office. “We remain committed to working with our law enforcement partners to protect the public health and bring to justice those who compromise patients’ health in this manner.”
Unruh was placed on investigative leave in July 2016, during an investigation of her conduct. Her license to be a professional nurse in Colorado was suspended that same month.
This matter was investigated by the Food and Drug Administration. Assistant United States Attorneys Jaime Pena and Peter McNeilly prosecuted this case.
CASE NO. 16-cr-0347
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Portland Man Sentenced to 100 Months in Federal Prison for Illegally Importing Fentanyl from ChinaRead the Press Release
PORTLAND, Ore.—John William Schantz, 28, of Portland, was sentenced today to 100 months in federal prison and four years’ supervised release for illegally importing fentanyl from China for the purpose of making and selling counterfeit prescription pills.
According to court documents, in November 2017, a U.S. Postal Inspection Service inspector discovered a suspicious package addressed to Schantz’s girlfriend at the U.S. Postal Service Portland Air Cargo Center. The inspector noted that the package was listed as containing a “pants zipper,” but felt like it contained a powdery substance. Agents from Homeland Security Investigations and officers from the Portland Police Bureau’s Drugs and Vice Division were called to investigate.
After finding that the package contained a white powdery substance, investigators transported it to the Oregon State Police Laboratory for further examination in a safe environment. The lab later determined the package contained approximately 102 grams of para-fluoroisobutryl fentanyl, a powerful opioid and Schedule I controlled substance. Investigators soon learned that between August and November 2017, there were 16 additional parcels shipped to Schantz’s residence. Of those, at least four were associated with known sources of controlled substances and pill manufacturing equipment.
On November 29, 2019, investigators conducted a controlled delivery of the package, now containing an inert substance, to Schantz’s residence. Investigators searched Schantz’s residence and seized two pill presses, a Ruger semi-automatic .22 caliber handgun, 245 rounds of .22 caliber ammunition, approximately 800 assorted counterfeit oxycodone and valium pills, various binding agents, die casts, digital scales and $1,142 in cash. When interviewed, Schantz admitted ordering fentanyl on the internet and having it shipped to his residence in his girlfriend’s name to avoid detection.
On July 16, 2019, Schantz pleaded guilty to one count of unlawfully importing a controlled substance.
This case was investigated by the High Intensity Drug Trafficking Area Interdiction Taskforce, Homeland Security Investigations, the U.S. Postal Inspection Service and the Portland Police Bureau Drugs and Vice Division. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
The Oregon HIDTA program was established by the White House Office of National Drug Control Policy (ONDCP) in June of 1999. In 2015 the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 14 counties and the Warm Springs Indian Reservation. Counties in the HIDTA include Oregon’s Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock and Canyon counties.
Opioid abuse affects communities across the nation. The CDC reports that in 2017, there were 70,237 drug overdose deaths in the U.S. Opioids and synthetic opioids were alone responsible for 47,600 overdose deaths or nearly 68% of all overdoses. Drug overdose is now the leading cause of injury or death in the United States.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Philadelphia Man Sentenced for Series of 2018 Hobbs Act Robberies in North and Northeast PhiladelphiaRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that John Karl Smith, 26, of Philadelphia, Pennsylvania was sentenced to 84 months’ incarceration and three years’ supervised release by United States District Judge Paul S. Diamond for the robbery of multiple businesses in Philadelphia during the summer of 2018.
This Hobbs Act robbery case charged the defendant with entering commercial businesses in North and Northeast Philadelphia during July and August of 2018. He entered each business, approached the clerk, produced a knife, and demanded money. The defendant robbed six businesses during his crime spree – including a corner store, multiple cell phone stores, and a pizza restaurant – and he pled guilty to six counts of Hobbs Act robbery in May 2019.
“The complete disregard that Smith demonstrated for the safety and well-being of others is appalling,” said First Assistant U.S. Attorney Williams. “The employees of these stores were simply doing their jobs, when Smith terrorized them just to make a few bucks. The streets are safer now that the defendant will be spending the next few years behind bars.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
Owner of Detroit-Area Health Care Clinics Pleads Guilty to Drug Diversion SchemeRead the Press Release
The owner of a Detroit-area pain clinic and physical therapy clinic pleaded guilty today for her role in a drug diversion scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’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.
Shirley Douglas, 70, of West Bloomfield, Michigan, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. District Judge David Lawson of the Eastern District of Michigan. Sentencing has been scheduled for Dec. 19, 2019, before Judge Lawson.
As part of her guilty plea, Douglas admitted that, as the owner and operator of Abyssinia Love Knot Physical Therapy L.L.C., which was purportedly a pain clinic and a physical therapy clinic, she conspired with her co-conspirators to employ physicians who would write medically unnecessary prescriptions for controlled substances, such as oxycodone, oxymorphone and other controlled substances. Douglas facilitated patient visits with doctors, and accepted payment from patients and patient recruiters/marketers in exchange for physician visits at which she knew that prescriptions for medically unnecessary controlled substances would be provided. Medicare beneficiaries were also required to sign physical therapy documents as a condition to receive prescriptions for controlled substances, regardless of medical necessity.
The total drug amount attributable to Douglas is in excess of 500,000 oxycodone pills, she admitted.
This case was investigated by the DEA and HHS-OIG. Trial Attorney Patrick Suter and Assistant Chief Malisa Dubal of the Criminal Division’s Fraud Section are prosecuting the case. The case was previously prosecuted by Assistant Chief Drew Bradylyons and Trial Attorney Thomas Tynan.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Oregon Man Sentenced to 14 Months in Federal Prison for Instagram Threats Against Portland Mayor Ted Wheeler (Photo)Read the Press Release
PORTLAND, Ore.—Kermit Tyler Poulson, 40, was sentenced today to 14 months in federal prison and one year of supervised release for transmitting threatening communications with the intent to extort Portland Mayor Ted Wheeler.
“Using social media to threaten violence against any person regardless of that person’s position in our community is wrong. The Portland JTTF actively investigates all threats of violence,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Federal law enforcement will continue working with our state and local partners to respond quickly to threats. These partnerships prevent many horrific acts of violence from occurring.”
“True threats victimize individuals and undermine the foundations that make our country a place where we can disagree, debate and find common ground,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “The FBI's Joint Terrorism Task Force and our partners remain committed to keeping our shared community free of violence and intimidation.”
According to court documents, on October 9, 2018, Poulson posted multiple threatening comments on Mayor Wheeler’s personal Instagram account. Poulson threatened to firebomb the mayor’s home and office if he did not immediately fire Portland police officers recently involved in an on-duty shooting. Investigators tracked the IP address associated with the comments to a Portland residence where Poulson was staying. Poulson was present when investigators searched the property and after initially making a number of misleading statements, admitted that he alone was responsible for the comments.
On July 3, 2019, Poulson pleaded guilty to one count of transmitting threatening communications with the intent to extort Mayor Wheeler.
This case was investigated by the Portland FBI Joint Terrorism Task Force (JTTF) and the Portland Police Bureau (PPB). The Portland JTTF includes FBI special agents and more than a dozen state and local law enforcement officers.
Screenshot from Instagram showing threats made.Operation Shutdown Corner: Law Enforcement Dismantles Multi-State Methamphetamine Pipeline from Southern California to West VirginiaRead the Press Release
17 Individuals Indicted as part of Drug Trafficking Organization
Over 200 Law Enforcement Officers from Multiple States Involved in Takedown
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced a major takedown today of drug traffickers resulting in the dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing pounds of methamphetamine from San Diego, California to West Virginia. The indictments and subsequent arrests are the result of a long-term investigation led by Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the United States Marshals Service, the Beckley/Raleigh County Drug and Violent Crimes Task Force, which is made up of law enforcement officers from the Raleigh County Sheriff’s Office, the Beckley Police Department and the West Virginia State Police, the Central West Virginia Drug Task Force and the Southern Regional Drug and Violent Crimes Task Force. The operation, dubbed “Operation Shutdown Corner,” resulted in two indictments charging 17 individuals in the DTO alleged to have distributed methamphetamine and heroin.
“Today’s coordinated takedown as part of Operation Shutdown Corner is a significant achievement in our continued effort to rid West Virginia of the drug traffickers, drug dealers and poison peddlers that have caused so much pain and despair among our people,” said United States Attorney Mike Stuart. “From San Diego to West Virginia, today’s operation shutdown a major drug trafficking organization. Over 200 law enforcement agents from more than five states were involved in this operation without incident and according to plan. I want to thank the tremendous investigative and law enforcement efforts of all our partners at the federal, state and local levels. Great work. As a result of these indictments and arrests, West Virginia communities and West Virginia families are safer today than they were yesterday. We continue with a sense of urgency to take down and remove those who cause only harm and despair in the interests of greed and making money.”
"Disrupting drug trafficking organizations like this one is a critical part of the FBI's mission. The heroin, meth and guns seized are dangerous and can lead to dangerous consequences," said FBI Pittsburgh Special Agent in Charge Robert Jones. "These arrests should send a message to other groups who think they can do business in West Virginia. The FBI and our law enforcement partners are pooling all our resources to stop you and the violence that comes with the drug trade you deem as profitable."
The long-term investigation revealed that a stream of packages containing pounds of methamphetamine were being shipped from the San Diego, California area and being received in the Southern District of West Virginia using common carriers, such as the United States Postal Service and the United Parcel Service (UPS). Several packages were intercepted by law enforcement, and using law enforcement tools, the full nature and scope of the DTO was revealed. The dismantling of the DTO resulted in the seizure of large quantities of controlled substances, illegally possessed firearms, and United States currency, which represents proceeds of the DTO’s illegal operations. It is believed that the shutting down of this DTO will significantly curtail the methamphetamine scourge in Raleigh County and the surrounding area.
The investigation was a collaborative effort between federal, state and local law enforcement partners. Today’s actions would not have been possible without the seamless collaboration of federal, state, and local law enforcement agencies. The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: SDWVNews and USAttyStuart
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Ohio Man Arrested for Orchestrating $10 Million Dollar Scheme to Defraud Health Care Benefit ProgramsRead the Press Release
NEWARK, N.J. – An Ohio man was arrested today for his role in a large-scale, multi-level marketing scheme to defraud private and federally funded health care benefit programs of at least $10 million through the submission of claims for medically unnecessary prescriptions for compounded medications, U.S. Attorney Craig Carpenito announced.
Kent Courtheyn, 35, of Kent, Ohio, owner and operator of two companies involved in the sales and marketing of compounded medications, IntegriMed Solutions LLC (IntegriMed) and KA Compounding LLC (KA Compounding), was charged by a federal grand jury in a two-count indictment with conspiring to commit health care fraud and conspiring to violate the Anti-Kickback Statute. He is scheduled to have his initial court appearance today in federal court in Ohio.
According to documents filed in this case and statements made in court:
From as early as July 2014 through July 2016, Courtheyn, a former medical device sales representative, ran a scheme to defraud federally funded health care benefit programs, such as TRICARE, as well as privately funded health care benefit programs. TRICARE is a health care entitlement program of the U.S. Department of Defense (DoD) Military Health System that provides coverage for DoD beneficiaries worldwide, including active duty service members, National Guard and Reserve members, retirees, their families, and survivors.
Courtheyn recruited individuals to submit false and fraudulent claims for medically unnecessary compounded medications, such as pain creams, scar creams, wound creams, and metabolic vitamins, without regard to medical necessity. Compounding is a practice in which a licensed pharmacist or physician combines, mixes or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. Pharmacies engaging in the practice are referred to as “compounding pharmacies.” Generally, compounded medications are not approved by the Food and Drug Administration (FDA), but can be prescribed by a physician when an FDA-approved drug does not meet the health needs of a particular patient. Compounded medications are supposed to be tailored to a patient’s particular medical need.
Courtheyn and others targeted individuals with health insurance plans that paid for compounded medications and had high reimbursements, and convinced these individuals to obtain compounded medications through their health insurance plan regardless of medical necessity.
Courtheyn was partners with Steven M. Butcher, a New York resident who was the owner and operator of another marketing company, MedMax LLC, involved in the marketing of medically unnecessary compounded medications. Courtheyn and Butcher had relationships with various compounding pharmacies, either directly or indirectly, through billing and distribution companies, which had their own network of compounding pharmacies. Courtheyn and Butcher sent prescriptions directly to a compounding pharmacy or to a billing and distribution company, which referred prescriptions to a particular compounding pharmacy and submitted claims to the appropriate health insurance plan on behalf of that pharmacy. In return for steering prescriptions to certain compounded pharmacies, Courtheyn and Butcher received a percentage of the reimbursement received by the pharmacy for each paid claim. Health insurance plans were reimbursing compounding pharmacies from $3,000 and $43,000 for each compounded prescription.
To maximize profit, Courtheyn operated IntegriMed and KA Compounding as a multi-level marketing company. He recruited several individuals as “sales representatives” who were paid a certain percentage of the reimbursement amount for each medically unnecessary compounded medication the sales rep caused to be filled and billed to a paying health insurance plan. If a sales representative was a beneficiary of a paying health insurance plan, Courtheyn also paid these individuals for obtaining their own or their family members’ medically unnecessary compounded medications.
The compounded medications Courtheyn and Butcher marketed and sold were not individualized to address the specific therapeutic needs of a specific patient. Instead, he chose drugs to be included in a compounded medication in order to maximize reimbursement and profit and not based on medical necessity. To get the medically unnecessary medications prescribed, Courtheyn and Butcher contracted and paid telemedicine companies with the expectation that their telemedicine physicians would prescribe compounded medications regardless of medical need. In total, Courtheyn defrauded health care benefit programs of at least $10 million, including TRICARE, which was defrauded at least $3.5 million.
The count of conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison; conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years. Both offenses are also punishable by a fine of $250,000, or twice the gross gain or loss from the offense.
Butcher pleaded guilty on Feb. 14, 2018, before U.S. District Judge John Michael Vazquez in Newark federal court to conspiracy to commit health care fraud and conspiracy to violate the Anti-Kickback Statute. He admitted to defrauding health care benefit programs of $45 million. Butcher is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division in Newark.
Defense counsel: Michael Elliot Esq. and Mindy Sauter Esq, Dallas, Texas
Myrtle Beach Man Sentenced to Nearly 5 Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that Jadarius Oshar McCray, 23, of Myrtle Beach, was sentenced to nearly 5 years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on April 22, 2018, an officer with the Myrtle Beach Police Department responded to a 911 call about a man with a gun. The caller described a subject who approached the caller and asked for money the subject thought the caller owed him. When the caller told the subject he didn’t know the subject and didn’t owe him any money, the subject pointed a firearm at him and threatened him. When a group of women walked through a nearby parking lot, the subject fled on foot. An officer located McCray, who matched the subject’s description, walking in a parking lot near the incident location and told McCray to stop. McCray turned around, looked at the officer, and then disappeared around a building corner for a few seconds before returning into the officer’s view. Officers detained McCray and located an unloaded .380 caliber handgun in the brush directly behind where McCray had disappeared.
Federal law prohibits McCray from possessing firearms and ammunition because of his prior felony convictions for pointing and presenting a firearm and unlawful carrying of a weapon.
United States District Judge Mary G. Lewis sentenced McCray to 57 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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Monroe County Man Charged with Cocaine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fausto Hernandez, age 41, of Tobyhanna, Pennsylvania, was indicted on September 17, 2019, by a federal grand jury for cocaine trafficking.
According to United States Attorney David J. Freed, the indictment charges Hernandez with four counts of distribution of cocaine, and one count of possession with intent to distribute cocaine between June 11 and August 6, 2019, in Monroe County.
This matter was investigated by the Drug Enforcement Agency (DEA) and the Pocono Mountain Regional Police Department. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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 sentence under federal law is up to twenty in prison, a term of supervised release following imprisonment, and a 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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Minneapolis Man Sentenced to Prison for Heroin Trafficking, Resulting in the Shooting Deaths of Two Individuals on the Red Lake ReservationRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of BRYAN BOARDMAN, a/k/a “Boon,” 25, to 78 months in prison for his role in a heroin distribution conspiracy that resulted in the shooting deaths of two individuals. BOARDMAN, who pleaded guilty on April 23, 2019, was sentenced before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota. BOARDMAN’s co-defendants FRANKLIN JACKSON, 23, was sentenced on September 11, 2019, to 21 months in prison, and KRISTOPHER SULLIVAN, 24, is scheduled to be sentenced on October 9, 2019.
“Today’s sentence underscores our message that drug trafficking and gun violence will not be tolerated,” said U.S. Attorney Erica MacDonald. “Combatting violent crime in our Native American communities remains a top priority for my office. We are committed to working with our tribal law enforcement partners to improve public safety in Indian Country.”
“This defendant and his co-conspirators are in prison thanks to the good work of the Headwaters Safe Trails Task Force,” said Jill Sanborn, Special Agent in Charge of the FBI’s Minneapolis field office. “This task force in northern Minnesota targets, disrupts and dismantles violent crime of all kinds including the sale and distribution of heroin. The FBI and its task force partners will continue to work these cases with urgency,” she said.
According to the defendant’s guilty plea and documents filed in court, between October 1, 2018, and October 21, 2018, BOARDMAN, JACKSON, and SULLIVAN conspired with each other to distribute heroin on the Red Lake Indian Reservation. In the early morning hours of October 21, 2018, BOARDMAN, JACKSON, and SULLIVAN met in a trailer home on the Red Lake Indian Reservation belonging to JACKSON’s girlfriend. The three defendants made preparations to sell heroin later that day, including contacting potential customers to let them know that heroin was available for sale at the trailer home. The defendants’ drug trafficking activities were interrupted at approximately 6:30 a.m. that morning when three armed, masked men broke into the trailer home in an apparent armed robbery. BOARDMAN drew a 9 millimeter pistol and fired eight shots, killing two of the intruders. The third intruder was wounded in the leg by the gunfire and fled from the scene.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Julie E. Allyn are prosecuting the case.
Defendant Information:
BRYAN BOARDMAN, a/k/a “Boon,” 25
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute heroin, 1 count
- Using and carrying a firearm during a drug trafficking crime, 1 count
Sentenced:
- 78 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Milton-Freewater Man Sentenced to 10 Years in Federal Prison for Trafficking Heroin in Eastern Oregon (Photo)Read the Press Release
Guns, drugs, and cash found in the residence. Gun found in vehicle.PORTLAND, Ore.—Adan Torres-Nieves, 45, of Milton-Freewater, Oregon, was sentenced today to 120 months in federal prison and five years’ supervised release for possessing with the intent to distribute nearly four pounds of heroin in Eastern Oregon.
According to court documents, in early 2017, investigators from the Blue Mountain Narcotics Enforcement Team (BENT) began investigating Torres-Nieves who appeared to be supplying a low-level drug dealer named Carlos Cisneros-Razo. Investigators established probable cause to arrest Torres-Nieves and execute search warrants on both of his and Cisneros-Razo’s residences.
During the search of Torres-Nieves’s residence in Milton-Freewater, investigators found approximately four pounds of heroin, a pound of methamphetamine, and five pounds of cocaine; $21,046 in cash; digital scales; a stolen revolver and a camouflage ballistic vest. A second revolver was found in Torres-Nieves’ bedroom.
On May 6, 2019, Torres-Nieves pleaded guilty to one count of possession with intent to distribute heroin. During sentencing, U.S. District Court Judge Michael H. Simon ordered Torres-Nieves to forfeit two firearms seized from his residence and the $26,166 seized from his person and residence.
On October 1, 2018, Cisneros-Razo was sentenced to 60 months in prison for possession with intent to distribute methamphetamine.
This case was investigated by BENT and the FBI and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Mercer County Man Convicted of Being Felon in Possession of FirearmRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was convicted today of being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Rasheed McNair, 40, of Ewing, New Jersey, was convicted following a two-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. The jury deliberated for less than one hour before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
On Feb. 18, 2018, two Trenton Police detectives in the Street Crimes Unit were driving through the area of Oakland Street and Hoffman Avenue in Trenton when one of them observed McNair standing in an open doorway in a public housing complex and holding what was later identified as a Smith & Wesson .40 caliber semiautomatic handgun.
McNair tucked the handgun into his jacket and ran up the stairwell of the building. After giving chase, one of the detectives observed McNair remove the handgun from inside his jacket and attempt to hide it under a doormat in front of an apartment. The other detective retrieved the firearm from under the doormat and rendered it safe. The weapon was later found to be loaded with 11 rounds of ammunition in the magazine and one round in the chamber, and its serial number had been obliterated.
The charge of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 9, 2020.
U.S. Attorney Carpenito credited the Trenton Police Department, under the direction of Police Director Sheilah A. Coley; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel: Mark A. Fury Esq., Mt. Holly, New Jersey
Marion man charged with child exploitation after he allegedly induced a 13-year-old to engage sexual activityRead the Press Release
A Marion man was charged in federal court for child exploitation after he induced a 13-year-old to engage sexual activity.
Tyler Foreman, 21, was charged via criminal information with one count of coercion and enticement of a minor and one count of receiving visual depictions of a minor engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Danielle K. Angeli following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Sentenced to Prison for Scheme to Defraud Elderly Man of $157,000Read the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to six years in prison for exploiting an elderly man’s diminished mental capacity to defraud him of nearly $157,000.
According to court documents, John Michael Gatchell, 55, facilitated a marriage between the elderly man and a woman with whom Gatchell had a long-term relationship in order to gain access to the elderly man’s money and property. Gatchell induced the elderly man to make a down payment on a Jaguar that Gatchell and a family member drove for about 10 months before it was repossessed by the lender when the loan went into default.
Gatchell also induced the elderly man to obtain two mortgage loans and then diverted most of the proceeds to the benefit of himself and others. He subsequently induced the elderly man to sell the property that secured the loans and again diverted most of the proceeds to himself and others. Gatchell used these monies that he fraudulently diverted to himself to purchase concert series tickets, pay delinquent bills, and make a security deposit for a house he leased, among other things.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-49.
Man Indicted for Possession of a Firearm by a Convicted FelonRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment today charging a Richmond man with possession of a firearm by a convicted felon.
According to the indictment, in May 2017, Travis Aaron Ball aka “Wiz,” 30, possessed a .25 caliber firearm after previously being convicted of a crime punishable by imprisonment for a term exceeding one year.
Ball is charged with possession of a firearm by a convicted felon. If convicted, he faces a maximum penalty of 10 years in prison. 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.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement. Assistant U.S. Attorneys Erik S. Siebert and Stephen E. Anthony are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-128.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Man Indicted for Armed Robbery of Credit UnionRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging a Richmond man with the armed robbery of Call Federal Credit Union in Midlothian.
According to the indictment, Okello Chatrie, 24, entered the Call Federal Credit Union in Midlothian, in May, demanding money at gunpoint. Chatrie robbed the Credit Union of nearly $200,000.
Chatrie is charged with forced accompaniment and brandishing a firearm during the armed robbery. If convicted, he faces a mandatory minimum of 10 years in prison for the forced accompaniment and a mandatory minimum of seven years in prison for brandishing a firearm during the robbery. The maximum penalty is life imprisonment. 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.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorneys Kenneth Simon and Peter S. Duffey are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-130.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Longview Ambulance Operator Guilty of Health Care FraudRead the Press Release
TYLER, Texas – A 62-year-old Longview, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown.
Joseph Valdie Kimble pleaded guilty to health care fraud on Sep. 11, 2019, before U.S. Magistrate Judge John D. Love.
Kimble’s plea was announced today during a press conference held in Dallas with Texas U.S. Attorneys and the Assistant Attorney General of the Justice Department’s Criminal Division. A total of 58 individuals across all four federal districts in Texas were charged for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
According to information presented in court, Kimble operated Tiger EMS, a business providing non-emergency ambulance transport, mostly between skilled nursing centers and hospitals and dialysis centers. Ambulance providers may bill for ambulance services only if there is a demonstrated medical need, which requires that either a beneficiary be bed-confined and it is documented that other methods of transportation are contraindicated; or the beneficiary's medical condition is such that transportation by ambulance is medically required. Kimble disregarded medical necessity requirements and billed Medicare and Medicaid for ambulance services provided to patients for whom ambulance transport was not medically necessary. The plea agreement provides for an agreed sentence of 30 months in federal prison and $751,986.80 in restitution.
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
A sentencing hearing will be scheduled at a later date.
This case was investigated by U.S. Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Lehigh Valley Drug Trafficker Sentenced for Distributing Variety of Illegal Drugs Including Meth, Cocaine, “Crack Cocaine” and MarijuanaRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Jerome Lamont Duggan, 46, of Bethlehem, Pennsylvania was sentenced to 324 months’ imprisonment, five years’ of supervised release and a $2,500 fine by United States District Judge Joseph F. Leeson, Jr., for his crimes related to trafficking a multitude of drugs throughout the Lehigh Valley.
From about March through early-May 2016, Duggan and his co-conspirators possessed with intent to distribute and distributed illegal drugs including approximately 2.4 kilograms of methamphetamine in various locations throughout Northampton and Lehigh Counties, Pennsylvania. In March 2019, a jury found Duggan guilty of all counts of the Superseding Indictment, including one count of conspiracy to distribute 500 grams or more of methamphetamine, and counts charging possession with intent to distribute: (a) 50 grams or more of methamphetamine; (b) 500 grams or more of cocaine; (c) 28 grams or more of cocaine base (“crack”); and (d) approximately 772 grams of marijuana.
“Duggan and other members of this drug organization pumped huge quantities of dangerous drugs into our community,” said First Assistant U.S. Attorney Williams. “These traffickers essentially delivered destruction to our communities. Our office is determined to investigate and convict these criminals, and put them behind bars.”
“Duggan was convicted and sentenced for distributing a substantial amount of dangerous drugs such as methamphetamine, cocaine, crack cocaine, and marijuana across the Lehigh Valley,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA, working with our partner federal, state, and local law enforcement agencies will continue to identify and investigate drug-traffickers like Duggan that seek to poison our communities.”
The case was investigated by Drug Enforcement Administration-Allentown Resident Office, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania State Police, Lehigh County District Attorney’s Office Detectives, and Allentown and Bethlehem Police Departments, and is being prosecuted by Assistant United States Attorney Kishan Nair.
Leader of Nationwide Fraud Scheme Sentenced to 60 MonthsRead the Press Release
EVANSVILLE - United States Attorney Josh J. Minkler announced today that Derek D. Knight, 25, Canton, Michigan, was sentenced to 60 months in prison by United States District Judge Richard L. Young in Evansville, Indiana. Knight previously pleaded guilty to charges involving credit card fraud and aggravated identity theft. Codefendant Dylan C. Garrett, 26, Taylor, Michigan, also pleaded guilty to the same charges and was previously sentenced to four years imprisonment.
On October 21, 2017, Knight and Garrett were arrested by the Evansville Police Department following a traffic stop. During a search of the vehicle, officers found more than 83 different credit cards in six different names, fraudulent driver’s licenses, two computers, and a credit card Magstripe reader/writer. Knight purchased credit and debit card numbers from the Dark Web and used them to make fraudulent credit cards.
Knight was the leader of a group who used the fraudulent credit cards and driver’s licenses in at least 13 different states, including Indiana. The fraudulent credit cards were used to purchase Visa debit cards and gift cards for Lowes, iTunes, and other retail merchants. Knight, Garrett, and other members of the criminal conspiracy made more than 100 fraudulent purchases at over 60 stores totaling more than $107,000.
"Nothing good happens on the Dark Web," said Minkler. "Those who use the internet for criminal intent in violation of federal law will be identified and prosecuted. The U.S. Attorney’s Office seeks to protect individuals from becoming victims of identity theft and promotes businesses having safeguards in place to prevent fraud."
This case was investigated the Federal Bureau of Investigation, United States Secret Service and Evansville Police Department.
"Identity theft devastates people’s credit and can be time-consuming and costly for victims to restore their credit and clear their name after having their identity compromised," said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. "This sentence demonstrates that no matter how sophisticated and pervasive a scheme may be, the FBI and our partners are dedicated to identifying, investigating and stopping perpetrators who take advantage of citizens."
"Cyber enabled Credit Card Fraud investigations utilizing the ‘Dark Web’ remain a top priority for the Secret Service," said Andrew Campion, Assistant Special Agent in Charge of the U.S. Secret Service Indianapolis Field Office. "We are committed to protecting our nation’s financial institutions and the citizens of Indiana. I would like to thank the U.S. Attorney’s Office, the FBI and Evansville Police Department for their cooperation and partnership in this case."
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Knight and Garrett will each serve three years of supervised release following their imprisonment.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to prosecute those individuals engaged in fraudulent activity and identity fraud through the use of bogus access devices purchased on the dark web other advanced technology. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.5 and 4.6.
Leader of Interstate Drug Trafficking and Money Laundering Conspiracy Is Sentenced to 14 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Pierre Buissereth, 37, of Indian Land, South Carolina, to 14 years in prison, to be followed by four years of supervised release, for his leadership role in a cross-country drug trafficking and money laundering conspiracy, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Buissereth was also ordered to pay a money judgment of $1 million for the value of the marijuana involved in the conspiracy.
U.S. Attorney Murray is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents and today’s sentencing hearing, beginning as early as August 2014 to February 2015, Buissereth was the leader of a marijuana trafficking conspiracy. Court records show that, during the relevant time period, Buissereth utilized a network of couriers who transported tens of thousands of dollars in luggage via commercial aircraft to San Francisco, California, where they purchased approximately one ton of high-grade marijuana. The couriers then transported the marijuana to Charlotte on commercial flights.
Over the course of the investigation, law enforcement seized 10 pounds of marijuana from a local drug distributor in November 2014; 46 pounds of marijuana at the Charlotte airport in February 2015; and $96,950 in cash at the San Francisco airport in February 2015. Flight records also show that the couriers made more than 100 trips to San Francisco with quick turnaround flights. In addition, law enforcement determined that the conspiracy laundered more than $460,000 in drug proceeds.
Buissereth is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
This prosecution is part of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray commended HSI and CMPD for their investigation of this case, and thanked the Pineville Police Department, the Huntersville Police Department, and the York County, South Carolina, Sheriff’s Office.
Assistant U.S. Attorney Steven R. Kaufman coordinated the investigation and prosecution of this OCDETF operation.
Kansas Man Probably Shot Himself with Gun He Was Prohibited from HavingRead the Press Release
TOPEKA, KAN. – A Topeka man who appears to have accidentally shot himself was sentenced Tuesday to 30 months in federal prison for unlawful possession of a gun, U.S. Attorney Stephen McAllister said.
Keeno D. Collins, 26, Ozawkie, Kan., pleaded guilty to one count of unlawful possession of a firearm by a convicted felon. In his plea, he admitted Topeka police found him wounded on the grounds of the Topeka West High School. He had a gunshot wound to his upper left arm. Collins told police he didn’t know what had happened. After police found a gun nearby, they matched DNA on the weapon to Collins. He was prohibited from possessing a firearm because of a 2015 conviction in Shawnee County District Court on a felony drug charge.
McAllister commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Stephen Hunting for their work on the case.
Jury Convicts Cincinnati Man of 8 Drug and Firearms ChargesRead the Press Release
CINCINNATI – A U.S. District Court jury here today convicted Qian “Will” Williams, 38, of Cincinnati, of distributing heroin and cocaine from a house in northeast Cincinnati, and of possessing firearms in furtherance of drug crimes.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), Cincinnati Police Chief Eliot K. Isaac and Boone County Sheriff Michael A. Helmig announced the verdict reached today following a jury trial that began September 11 before U.S. District Judge Michael R. Barrett.
Testimony by witnesses and evidence presented during the trial showed that for approximately 15 months Williams distributed heroin and cocaine he obtained from sources in Indiana and elsewhere.
Task force officers executed search warrants at Williams’ property on Randomhill Drive in August 2017. They seized more than a kilogram of heroin, more than 100 grams of cocaine, drug paraphernalia including a kilogram press, six firearms including two handguns, large-capacity magazines, and ammunition. Agents also seized more than $80,000 in cash and jewelry while executing the search warrants.
The jury found Williams guilty of two counts of distribution of a controlled substance (up to 20 years), one count of possession of a kilogram or more of heroin with intent to distribute it (at least 10 years up to life), one count of possession of 100 or more grams of heroin with intent to distribute it (five to 40 years), one count of possession of cocaine with intent to distribute it (up to 20 years) and one count of maintaining a drug-involved premises (up to 20 years).
The jury also convicted Williams of being a felon in possession of a firearm, punishable by up to 10 years in prison, and one count of possession of a firearm in furtherance of a drug trafficking crime, punishable by at least five years and up to life in prison.
A federal grand jury indicted and agents arrested Williams in October 2017. He has been in custody since his arrest and was ordered to remain in custody until he is sentenced. Judge Barrett will schedule a date for sentencing.
U.S. Attorney Glassman commended the cooperative investigation by the DEA, Cincinnati Police Department and Boone County Sheriff’s Office, as well as assistant United States Attorneys Karl P. Kadon and Ebunoluwa Taiwo, who are representing the United States in this case.
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Indictments: Convicted Felons Had GunsRead the Press Release
TOPEKA, KAN. – Two Kansas men with prior felony convictions were charged in separate cases today with unlawfully possessing firearms, U.S. Attorney Stephen McAllister said.
Gwyndell B. Declerck, Jr., 32, Topeka, Kan., is charged with one count of unlawful possession of a firearm by a felon. The indictment alleges that on Aug.17, 2019, Declerck unlawfully possessed a .40 caliber handgun. He was prohibited from having a gun because of prior convictions, including a 2010 conviction in Shawnee County District Court for criminal possession of a firearm.
Declerck was arrested Aug. 17, 2019, after Topeka police reported responding to callers complaining their house was hit by bullets.
If convicted Declerck faces up to 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Jeffrey Lamont Armstrong, 38, Salina, Kan., is charged with one count of unlawful possession of a firearm by a felon, one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Feb. 22, 2019, in Saline County, Kan.
If convicted, Armstrong could face up to 10 years in federal prison and a fine up to $250,000 on the first firearm charge, up to 20 years and a fine up to $1 million on the drug charge and not less than five years and a fine up to $250,000 on the second firearm charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Lindsey Debenham is prosecuting.
Both cases are being prosecuted under the Project Safe Neighborhoods initiative, a Justice Department program aimed at reducing gun violence. Last year, the U.S. Attorney’s Office for the District of Kansas prosecuted 161 defendants who were found guilty of federal firearms violations.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Holmes County company fined more than $165,000 for refusing to allow FDA investigators to inspect its facilitiesRead the Press Release
A Holmes County company that advertised it manufactured tinctures, salves and herbal formulas was fined more than $165,000 for refusing to allow FDA investigators to inspect its facilities.
Precision Herbs LLC was ordered to pay a fine of $166,965 –- which represented the profits of their business after they refused FDA Inspection. Original Design Wellness was fined $2,000. Company officials Sharon Overman and Eric Pierce were both sentenced to six months of probation and ordered to pay a $2,000 fine.
All parties previously pleaded guilty to one count of refusal of inspection and one count of introduction of adulterated drugs and devices.
According to the criminal information filed in U.S. District Court:
Precision Herbs advertised it manufactured “alcohol-based tinctures, salves and vegetable-based encapsulations of unique herbal formulas” that “address(ed) individual wellness needs and improved daily living.”
Original Design Wellness Center was associated with Precision Herbs and distributed Precision Herbs’ products. Overman, 75, and Pierce, 50, owned both companies.
The FDA obtained a warrant on January 15, 2016 to inspect Precision Herbs’ facilities in Killbuck and Millersburg, Ohio. Original Design Wellness Center was operated out of the Millersburg facility.
FDA investigators, accompanied by U.S. Marshals, attempted to conduct an inspection of both locations on January 21, 2016. Overman and Pierce refused the inspection of the Millersburg facility. Pierce initially allowed the inspection of the Killbuck facility until a third party arrived and disrupted it. Pierce allowed the disruption and the inspection was terminated.
The companies, Overman and Pierce continued to sell products that were manufactured from a location that refused to permit inspection by the FDA. This took place between January 21, 2016 and May 24, 2017.
“Today’s announcement demonstrates that those who purposely subvert the regulatory functions of the FDA by obstructing inspections will be held accountable for their actions,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “We value the efforts of the Department of Justice for vigorously pursuing the prosecution of this matter.”
This case was investigated by the FDA and prosecuted by Assistant U.S. Attorney Alejandro Abreu.
Hartford Man Sentenced to Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARTIN NUNEZ, 41, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 21 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and ammunition.
According to court documents and statements made in court, on October 15, 2018, state parole officers, with the assistance of Hartford Police, conducted a compliance check of Nunez at his residence. A search of the residence revealed a .380 caliber handgun, a firearm magazine, and five rounds of ammunition in a dresser drawer in Nunez’s bedroom. Nunez was arrested at that time.
Nunez’s criminal history includes a state conviction for assault in the first degree, and multiple convictions for distributing narcotics.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On June 27, 2019, Nunez pleaded guilty to one count of possession of a firearm by a convicted felon.
Nunez has been detained in state custody since his arrest. He will begin serving his 21-month federal sentenced today.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Harrisburg Man Sentenced to 77 Years’ Imprisonment for Firearms Offenses and Three Armed RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Maurice L. Ross, age 35, of Harrisburg, Pennsylvania, was sentenced on September 17, 2019, to 924 months’ imprisonment followed by five years on supervised release, by United States District Court Judge Yvette Kane for unlawful possession of a firearm as a convicted felon and three armed robberies.
Judge Kane also ordered Ross to pay restitution in the amount of $2,147 to Brookwood Mart and the convenience store clerk victims.
According to United States Attorney David J. Freed, Ross was convicted on November 6, 2018 after a two-day jury trial, of three counts of a felon in possession of a firearm (a Charter Arms .38 caliber revolver), three counts of interference with commerce by threats or violence, and three counts of carrying and brandishing a firearm in furtherance of a crime of violence.
Ross robbed the Brookwood Mart, located in Harrisburg, by gunpoint on three separate occasions on December 8, 17, and 22, 2016. Each time, he stole hundreds of dollars of cash from the store registers. Two of the three times, he also stole dozens of instant lottery tickets. The robberies occurred several months after Ross was released from federal prison after serving five years for possession with intent to distribute cocaine base and possessing a firearm in furtherance of drug trafficking.
There was surveillance footage from the robberies, but Ross was heavily hooded and masked, so identification was a significant issue, but Ross cashed some of the stolen lottery tickets the morning after one of the robberies at another convenience store, before the tickets could even be reported stolen. The PA Lottery provided the location, date and time of the cashings, and Harrisburg detectives were able to review in-store surveillance videos at the store where the tickets were cashed. That surveillance footage revealed a license plate that led detectives to Ross’ residence where a search warrant was executed. Detectives found the very distinctive gun Ross used in all three robberies, a shirt tied like a mask, a pair of black boots, a black knit hat and a flat-brimmed hat seen in surveillance footage.
The case was investigated by the Harrisburg Police Department. Assistant United States Attorneys James T. Clancy and Carl Marchioli prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Charged with Producing and Distributing Child Pornography
Jeremy Schenck, 24, Madison, Wisconsin, is charged with three counts of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, and one count of distributing such a visual depiction. The indictment alleges that between September 2017 and August 2018, he produced three images of child pornography, and that on November 6, 2018, he used Kik messenger to send an image to a person in North Dakota.
If convicted, Schenck faces a mandatory minimum of 15 years and a maximum of 30 years on each production count. He faces a mandatory minimum of five years and a maximum of 20 years on the distribution count. The charges against him are the result of an investigation by the Madison Police Department and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
Madison Man Charged with Producing Child Pornography
Diorian Smith, 29, Madison, Wisconsin, is charged with two counts of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. The indictment alleges that between November 2017 and November 2018, he produced child pornography videos using a cell phone.
If convicted, Smith faces a mandatory minimum sentence of 15 years and a maximum of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Madison Police Department. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
DeForest Man Charged with Receiving Child Pornography
Michael Hinze, 43, DeForest, Wisconsin, is charged with five counts of receiving visual depictions of a minor engaged in sexually explicit conduct. The indictment alleges that Hinze received the child pornography from September 28 to 30, 2018.
If convicted, Hinze faces a mandatory minimum sentence of five years and a maximum of 20 years in federal prison on each count. The charges against him are the result of an investigation by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal Investigation, and DeForest Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
The indictments against Smith, Schenck, and Hinze have been 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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Wisconsin Rapids Man Charged with Distributing Methamphetamine
David Shamont Lindsey, 35, Wisconsin Rapids, Wisconsin, is charged with distributing 50 grams or more of methamphetamine. The indictment alleges that he distributed the methamphetamine on May 7, 2019.
If convicted, Lindsey faces a mandatory minimum of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Central Wisconsin Drug Task Force, Wisconsin Rapids and Plover Police Departments, Wisconsin Department of Justice Division of Criminal Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
New Lisbon Man Charged with Methamphetamine Crime
Shane C. Evans, 43, New Lisbon, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on May 5, 2019.
If convicted, Evans faces a mandatory minimum sentence of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Rice Lake Police Department. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Madison Man Charged with Illegally Possessing Firearms
Sean P. Okray, 48, Madison, Wisconsin, is charged with being a felon in possession of firearms. The indictment alleges that on August 23, 2019, he possessed a 9mm pistol and a .380 caliber pistol.
If convicted, Okray faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department, Dane County Sheriff’s Office, U.S. Marshals Service, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita Rumbelow is handling the prosecution.
Janesville Man Charged with Gun Crimes
Deshawn Foreman, 24, Janesville, Wisconsin, is charged with being a felon in possession of ammunition and with being a felon in possession of a firearm. The indictment alleges that on July 24, 2019, he possessed .45 caliber ammunition, and that on July 25, 2019, he possessed a .45 caliber handgun.
If convicted, Foreman faces a maximum penalty of 10 years in federal prison on each charge. The charges against him are the result of an investigation by the Janesville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
The indictments against Okray and Foreman have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Four Defendants Charged in $70 Million Wire Fraud Conspiracy Involving Black Market HIV MedicationsRead the Press Release
SAN FRANCISCO - A federal grand jury returned a superseding indictment charging Edvin Ovasapyan, Hakob Kojoyan, Lorik Papyan, and Stephen Silverman for their respective roles in an alleged scheme to defraud purchasers of prescription drugs, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
The multi-count superseding indictment was returned on September 5, 2019, and unsealed September 10, 2019. It alleges Ovasapyan, 41, of Los Angeles; Kojoyan, 27, of Los Angeles; Papyan, 36, of Los Angeles; and Silverman, 77, of Los Angeles, each played a role in a conspiracy to operate a large-scale clearing house to divert drugs, primarily those used in the treatment of the Human Immunodeficiency Virus (“HIV”). The superseding indictment describes how Ovasapyan, Kojoyan, and Papyan conspired to acquire large quantities of diverted prescription HIV medications on the black market, and then created false documentation claiming that the medications had been acquired from licensed suppliers. All four defendants allegedly then conspired to sell these diverted prescription drugs to retail pharmacies and wholesalers across the United States. The drugs were sold through a company called Mainspring Distribution, LLC (“Mainspring”), and the defendants provided their customers with false documentation regarding the origin of those drugs. The indictment alleges Silverman, an attorney, was aware of the illicit nature of the operation and assisted his co-defendants by, among other things, agreeing to launder the proceeds of the fraud. Mainspring’s customers were never informed that they were purchasing prescription drugs acquired on the black market. Over the course of the conspiracy, Mainspring earned more than $70,000,000 through sales to its customers. According to the indictment, the defendants also disguised the destination of these funds, routing a portion of Mainspring’s earnings through misleadingly named bank accounts designed to create the appearance of a lawful supply chain.
All four defendants have been charged with one count each of conspiracy to commit wire fraud, in violation of § 18 U.S.C. § 1349; conspiracy to commit money laundering, in violation of § 18 U.S.C. § 1956(h); and conspiracy to engage in the unlawful wholesale distribution of drugs, in violation of 18 U.S. C. § 371.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of conspiracy to commit wire fraud, the defendants face a maximum sentence of 20 years in prison, a fine of $250,000 (or twice the gross gain or loss), and restitution. If convicted of conspiracy to commit money laundering, the defendants face a maximum sentence of 20 years in prison, a fine of $500,000 (or twice the value of the property involved in the transaction), and restitution. If convicted of conspiracy to engage in the unlawful wholesale distribution of drugs, the defendants face a maximum sentence of 5 years in prison, a fine of $250,000 (or twice the gross gain or loss), and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Andrew F. Dawson and Briggs Matheson are prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation led by the Federal Bureau of Investigation, with the assistance of the Food and Drug Administration.
Former deputy indicted on federal charge for possession of child pornographyRead the Press Release
STATESBORO, GA: A former Bulloch County sheriff’s deputy has been indicted by a federal grand jury with possession of child pornography.
Travis Tuenge, 43, of Statesboro, is charged with one count of Possession of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to 20 years in federal prison, and there is no parole in the federal system.
“Exploitation of children through child pornography is a despicable crime that will not be tolerated in the Southern District of Georgia,” said U.S. Attorney Christine. “In cooperation with our law enforcement partners, we will find and prosecute these cases no matter the status of those engaging in this exploitation.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated by the Georgia Bureau of Investigation with assistance from the U.S. Marshals Service Southeast Regional Fugitive Task Force, and is being prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden and Marcela C. Mateo.
Former VA Hospice Nurse Charged with Diverting and Tampering with Morphine Meant for Dying VeteransRead the Press Release
BOSTON – A Tewksbury woman was charged today in federal court in Boston with diverting morphine while employed as a nurse in the hospice unit at the Veterans Affairs (VA) Medical Center campus in Bedford.
Kathleen Noftle, 55, was arrested this morning and charged by criminal complaint with one count of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge, and one count of tampering with a consumer product. Noftle will make an initial appearance in federal court in Boston at 12:00 p.m. today.
According to charging documents, on Jan. 13, 14, and 15, 2017, Noftle used her position as a nurse to obtain doses of morphine that were meant to be given to the veterans under her care in the hospice unit. Noftle admitted to federal agents that she mixed water from a sink with a portion of the liquid morphine doses, and then administered the diluted medication to patients orally. Noftle then allegedly ingested a diluted amount of the remaining drug. The investigation revealed that, due to diluted morphine administered by Noftle, one veteran experienced increased difficulty breathing (dyspnea) and increased suffering in his final days. The investigation also found that before working at the VA Medical Center in Bedford, Noftle had resigned from her position as a nurse at a different hospital following her failure to follow appropriate procedures when wasting narcotics on 60 occasions.
The charge of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge, provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of tampering with a consumer product provides for a sentence of no greater than four years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney William B. Brady of Lelling’s Health Care Fraud Unit is prosecuting the case.
Former Postal Carrier Offers Guilty Plea for Stealing Marijuana and Methamphetamine Mail PackagesRead the Press Release
COLUMBUS, Ohio – A former United States Postal Carrier pleaded guilty in U.S. District Court today to stealing mail parcels that contained narcotics and then selling those narcotics in his neighborhood.
Ricky Lee Harris Germany, 32, of Columbus, pleaded guilty to one count of conspiring to possess with intent to distribute more than 500 grams of methamphetamine and a detectable amount of marijuana.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Kenneth Cleevely, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG) Eastern Area Field Office, announced the plea offered before U.S. Magistrate Judge Norah McCann King.
According to court documents, Germany had been employed as a city postal carrier at the United States Postal Service’s Oakland Park Station in Columbus from 2013 until 2018.
In September 2018, investigators received information that Germany had stolen mail parcels containing marijuana while employed as a postal carrier. According to a complainant, Harris Germany stole more than 100 pounds of marijuana over the course of six months. The complainant stated Harris Germany would look for large parcels from California, Texas and Arizona and would check the packages on his lunch break to see if they contained drugs.
The investigation revealed Germany intercepted mail parcels on multiple occasions from delivery routes other than his assigned route. During a search of his residence, investigators discovered opened packages containing marijuana, THC oil and methamphetamine.
Germany admitted to stealing mail coming from out of state and selling stolen narcotics to people in his neighborhood.
Conspiracy to possess with intent to distribute more than 500 grams of methamphetamine is punishable by a range of 10 years up to life in prison.
U.S. Attorney Glassman commended the investigation of this case by the USPS-OIG and Assistant United States Attorney Jonathan J.C. Grey, who is representing the United States in this case.
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Former Alabama Correctional Lieutenant Indicted for Allowing Inmate AbuseRead the Press Release
Montgomery, AL – The Justice Department today announced that a Federal Grand Jury sitting in Montgomery, Alabama, returned a two-count indictment charging former Alabama Department of Corrections (ADOC) Lieutenant Willie Burks, 39, with failing to stop a sergeant under his command from kicking and striking with a baton a handcuffed and compliant inmate at ADOC’s Elmore Correctional Facility. Burks was also charged with making false statements to the federal grand jury in connection with the investigation.
Three former and current corrections officers have previously pleaded guilty in connection with this incident. Former Alabama Department of Corrections Sergeant Ulysses Oliver pleaded guilty to unlawfully assaulting two handcuffed inmates. Corrections Officers Briana Mosley and Leon Williams pleaded guilty for failing to intervene to prevent the abuse by former-Sergeant Oliver.
According to the prior guilty pleas, Oliver went to an observation room holding the two inmate victims, who were both handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately 19 times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately 10 times. During the assaults, the victims were handcuffed, and were not resisting or posing a threat. After, Oliver returned to the observation room where the victims were held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face. Oliver assaulted the victims as punishment because he believed that the victims had brought contraband into the facility. Oliver assaulted the victims in the presence of other ALDOC correctional officers, who did not intervene to prevent the assaults.
Burks faces a statutory maximum sentence of 15 years in prison.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty in court.
This case is being investigated by the FBI’s Mobile Division and ADOC’s Investigations and Intelligence Division. It is being prosecuted by Assistant U.S. Attorney Ben Baxley of the Middle District of Alabama, and Special Legal Counsel Mark Blumberg, Special Litigation Counsel Jared Fishman, and Trial Attorney David Reese of the Civil Rights Division.