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Monday 16 September 2019
Ventura County Gang Member Linked to Mexican Mafia Convicted of Drug Trafficking Charges as Part of “SuperNova” TakedownRead the Press Release
LOS ANGELES – A high-ranking member of the Oxnard-based Surtown Chiques street gang who attempted to secure control of drug trafficking in Ventura County and who extorted “taxes” on behalf of the Mexican Mafia prison gang has been found guilty by a jury of federal narcotics charges.
Armando “Criminal” Molina, 36, of Ventura, was found guilty late Friday afternoon of one count of conspiracy to distribute methamphetamine and five counts of distribution of methamphetamine. Molina was arrested in 2013 as part of Operation “SuperNova,” a multi-agency task force investigation that targeted Mexican Mafia-affiliated street gangs in Ventura County.
According to evidence presented at a four-day trial, between October 2012 and March 2013, Molina and his co-conspirators sold 247 grams of pure methamphetamine to a confidential informant working for an FBI task force.
Molina was arrested in 2013 on a criminal complaint targeting “shotcallers” of Ventura County street gangs. The criminal complaint details a year-long undercover investigation and outlines a series of narcotics transactions that led to the seizure of more than two pounds of methamphetamine and quantities of heroin that were being sold on the streets of Ventura County.
The drugs were supplied by a drug trafficking organization controlled by Mexican Mafia member Martin Madrigal-Cazares. Local street gangs communicated with the head of the organization in Mexico, while controlling narcotics sales and collecting “taxes” on behalf of the Mexican Mafia in Ventura County, the complaint alleges.
United States District Judge John A. Kronstadt has scheduled a February 6 sentencing hearing, at which time Molina will face a statutory maximum sentence of life and a mandatory minimum sentence of 10 years in federal prison.
On the eve of Molina’s trial, his co-defendant, Frank “Villain” Ruiz, 37, of Ventura County, pleaded guilty to one count of conspiracy to distribute methamphetamine. Ruiz’s sentencing hearing is scheduled for December 12, at which time he will face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in federal prison. In total, eight defendants have been convicted in connection with this phase of the operation.
The investigation was conducted jointly by the FBI, the Ventura Police Department and the Oxnard Police Department.
The Ventura County-Multi-Agency Gang Task Force is one of many FBI Safe Streets Task Forces throughout the United States, funded for the purpose of assisting local police in identifying and addressing violent crime in America.
This case is being prosecuted by Assistant United States Attorneys Agustin D. Orozco of the Public Corruption and Civil Rights Section and Alexander B. Schwab of the Major Frauds Section.
Utah Man Sentenced to Almost 16 Years in Prison for a Violent Armed Robbery of the Carlsbad Motel 6Read the Press Release
Assistant U. S. Attorneys Brandon J. Kimura (619) 546-9604 and Matthew Brehm (619) 546-8983
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Lance Lamont Lavert of Utah was sentenced in federal court today to 189 months in prison for a violent armed robbery in which he terrorized and pistol whipped a Carlsbad Motel 6 clerk.
Lavert was convicted by a federal jury in August of using and brandishing a Smith and Wesson .357 magnum revolver during the robbery and being a felon in possession of a firearm. The jury returned its verdict after hearing the testimony of 11 witnesses and deliberating for approximately two hours.
“What an excruciating experience for these victims, who were hunted and pistol-whipped by a gunman,” said U.S. Attorney Robert Brewer. “This is a fitting sentence for a gunman who did not hesitate to attack. Protecting our community from violent criminals is our number one priority.”
During trial before Chief U.S. District Judge Larry Alan Burns, the prosecution relied on victims from the Motel 6, a Carlsbad police detective, forensic specialists from the San Diego Sheriff’s Department, and federal agents, among others, as witnesses to prove Lavert’s traumatizing crimes.
Witnesses described how, on the morning of July 9, 2018, Lavert and his girlfriend, a co-defendant, entered the Motel 6 on Paseo Del Norte in Carlsbad, California. Lavert approached the counter and asked for a room. When his request was denied due to a lack of identification, Lavert pulled a gun out of his backpack, pointed it at the clerk and her manager, and demanded money. The clerk and manager ran from Lavert but Lavert jumped the counter, kicked in the door of the bathroom where the clerk was hiding, and then brought the clerk, at gunpoint, back to the cash register. Lavert demanded money and pistol-whipped her in the head. After the clerk opened a drawer that held the motel’s cash, Lavert grabbed money from the drawer and ordered the clerk to give him keys to her personal vehicle. Lavert then jumped back over the counter and he and his girlfriend departed.
Two days later, Lavert was arrested trying to enter the United States from Mexico at the San Ysidro Port of Entry. He had the Smith and Wesson .357 magnum revolver concealed in his waistband. The prosecution introduced certified court documents to prove Lavert had several prior felony convictions, including for arson.
Lavert’s co-defendant accepted a resolution before trial.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, labor trafficking and alien smuggling. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Case Number 18cr3485-LAB
Lance Lamont Lavert Age: 37 Salt Lake City, UT
SUMMARY OF CHARGES
Interference with Commerce by Threats or Violence – Title 18, U.S.C., Section 1951(a)
Maximum penalty: Twenty years in prison and $250,000 fine
Using and Brandishing a Firearm During and in Relation to a Crime of Violence –
Title 18, U.S.C., Section 924(c)
Maximum penalty: Life in prison; a mandatory minimum seven years in prison; and $250,000 fine
Felon in Possession of a Firearm
Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
Carlsbad Police Department
San Diego Sheriff’s Department
Homeland Security Investigations
Customs and Border Protection
Undocumented Alien Ordered to Prison for Assaulting Federal OfficerRead the Press Release
LAREDO, Texas – A 39-year-old Mexican national has been sentenced for attacking a Border Patrol (BP) agent with a flashlight, announced U.S. Attorney Ryan K. Patrick. Melecio Lopez-Hernandez pleaded guilty April 30, 2019.
Today, U.S. District Judge Marina Garcia Marmolejo handed Lopez-Hernandez a 70-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence. At the hearing, the defense attempted to convince the court he thought the officer was a cow and was startled when he appeared. Judge Marmolejo was not persuaded. She further found the flashlight he used was a dangerous weapon under the law and noted Lopez-Hernandez had a clear intent to harm the agent based on the evidence.
Authorities arrested Lopez-Hernandez Feb. 7, 2019, after a BP agent encountered him walking through the brush south of Freer. He began to struggle as the agent attempted to detain him, during which time Lopez-Hernandez dislodged a flashlight that was clipped to the agent’s outer vest.
After verbally threatening him, Lopez-Hernandez then struck the agent in the head with the flashlight. The agent sustained injuries from the impact.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Border Patrol conducted the investigation. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
U.S. Attorney’s Office and Project Safe Childhood Partners Announce Highlights of Ongoing Efforts to Protect ChildrenRead the Press Release
PITTSBURGH – September marks back to school, and is an appropriate time to highlight the work the U.S. Attorney’s Office and its Project Safe Childhood partners are doing to prevent, investigate, and prosecute sexual predators, abusers, and pornographers who target children. Led by the U.S. Attorneys Offices, Project Safe Childhood (PSC) is a Department of Justice initiative that marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
U.S. Attorney Scott W. Brady said, "We are steadfastly committed to the safety and well-being of every child in western Pennsylvania and have made investigating and prosecuting offenders involved in child sexual exploitation a highest priority. Over the past several weeks, we brought multiple defendants to justice across our district. Going forward, we intend to build on those successes."
"The exploitation of vulnerable youth is a growing issue in our country and right here at home," said FBI Pittsburgh Special Agent in Charge Robert Jones. "These child predators think they can use the internet to have a sense of anonymity when they target these kids. I want to commend the hard work and dedication of all the agents who work these very important cases. They are among some of the toughest to work, but we hope these outcomes provide a small measure of justice for the victims who no doubt suffer lifelong damages from the actions of these child predators."
"We must protect our children, they are the most vulnerable and precious members of our community," said Marlon V. Miller, special agent in charge of Homeland Security Investigations Philadelphia. "HSI is committed to working with the United States Attorney’s Office for the Western District of Pennsylvania and our other law enforcement partners to investigate and bring to justice predators who prey on children."
Major Stephen K. Eberle, Area I Commander for the Pennsylvania State Police, added, "The Pennsylvania State Police are proud to work alongside our federal and local law enforcement and prosecution partners to protect our children from Internet predators in every form—those who have been convicted, those who are non-compliant, and those who have not yet been found."
A list of cases follows:
KIDNAPPING AND AGGRAVATED SEXUAL ABUSE OF A CHILD
On August 27, United States District Judge Kim R. Gibson sentenced Timothy D. Nelson, Jr., 50, of Cumberland, Maryland, to 30 years in prison and ordered him to pay a $5,000 assessment under the Justice for Victims of Trafficking Act on his conviction of kidnapping and aggravated sexual abuse of person under 12 years old. On the afternoon of September 19, 1999, in a quiet neighborhood in Shade Township, Somerset County, an unknown man abducted a 10-year-old girl. He forced her to the floor of his car and transported her at gun point across the Pennsylvania state line into West Virginia, where he sexually assaulted her. He drove the minor victim back into Pennsylvania, abandoned her on a dirt road, and vanished. A couple driving by saw the child in distress and offered assistance. Law enforcement responded. The minor victim was able to direct law enforcement to the location of the sexual assault, where they found a discarded brown paper bag and napkin that had been used to clean up following the assault. Forensic examination found partial fingerprints and DNA. At that time however, there were no matching results in either the Integrated Automated Fingerprint Identification System (IAFIS) or the FBI’s Combined DNA Index System (CODIS) database. In 2004, DNA from a different kidnapping and assault that occurred in September 1988 in Maryland was found to match the 1999 kidnapping in Somerset County. Still, the perpetrator was unknown. In Fall 2018, fingerprints re-submitted to the new fingerprint identification system – Next Generation Identification (NGI) identified Timothy David Nelson Jr. as a possible match. The FBI Laboratory subsequently confirmed the partial prints from the discarded bag as a match to Timothy David Nelson Jr., who was living in Maryland. In January 2019, Nelson was arrested on Pennsylvania state charges, and a federal DNA search warrant was executed. Subsequent DNA analysis proved Nelson’s DNA was a match for the September 19, 1999 incident that began in Cairnbrook, Somerset County. Assistant U.S. Attorney Stephanie L. Haines prosecuted this case. The Pennsylvania State Police and the FBI conducted the investigation.
COERCION AND ENTICEMENT OF A MINOR
On September 12, former Tulsa, Oklahoma resident Shelby Summer Brown, 28, waived prosecution by Indictment and pleaded guilty to an Information. In connection with the guilty plea, the court was advised that on or about March 6, 2018, to on or about March 14, 2018, Brown conspired and agreed with another individual, Oscar Carter, to knowingly persuade, induce, entice, and coerce an individual, Minor A (who had not yet attained the age of 18 years) to travel from Ohio to Pennsylvania, to engage in prostitution from March 6, 2018 through March 14, 2018. U.S. District Judge Cathy Bissoon scheduled sentencing for January 14, 2020. The law provides for a total sentence of not more than 25 years in prison, a fine of $500,000, or both. Pending sentencing, the Judge ordered Brown remain detained. Assistant U.S. Attorney Heidi M. Grogan is prosecuting this case, which was investigated by the FBI, the Cranberry Township Police and the Pittsburgh Police.
On August 13, Joseph Hamilton, 38 of Pittsburgh, was indicted on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity. According to the indictment, from March 11, 2019 until on or about April 18, 2019, Hamilton used a facility or means of interstate commerce, specifically the Internet and over a cellular phone network, to knowingly attempt to persuade, induce, entice and coerce a minor to engage in sexual activity. The law provides for a maximum total sentence of up to life in prison, a fine of $250,000, or both. Assistant U.S. Attorney Heidi M. Grogan is prosecuting this case, which was investigated by the FBI.
TRAVEL FOR SEX
On September 10, Chief United States District Judge Mark R. Hornak sentenced Alastair Lee Stewart, 27, of Van Buren, Arkansas, to a term of imprisonment of 12 years and seven months (151 months) and 27 years of supervised release. From November 15, 2016 to March 27, 2017, Stewart engaged in internet conversations with a 12 year-old girl over a chatting application called "Live Me," and later communicated with the victim over Skype, Snapchat, and text messages. Stewart then traveled from Arkansas to western Pennsylvania and arranged to meet the victim at her grandfather’s residence, where he sexually assaulted her in a motor home on the property on March 24 and March 25, 2017. Stewart fled the area on March 26, 2017. Assistant U.S. Attorneys Christy C. Weigand and Jessica L. Smolar prosecuted this case. The FBI and Pennsylvania State Police conducted the investigation.
On August 15, Jeffrey Judd, 60, of Vienna, Ohio, pleaded guilty to a charge of traveling with intent to engage in illegal sexual activity with a minor. In connection with the guilty plea, the court was advised that in late May 2017, Judd began conversing with a 14-year-old male over the "Chathour" software application and by email. He arranged to meet the child victim in the parking lot of his school on June 1, 2017, and traveled from Vienna, Ohio, to Hermitage, Pennsylvania, to engage in intercourse and oral sex acts with the victim. The victim was frightened by Judd’s arrival at the school, and failed to show at the meet location. He later reported his communications with Judd to school officials. Judd continued to communicate by email with the victim until June 5, 2017. Judge Bissoon scheduled sentencing for December 6, 2019. The law provides for a total sentence of 30 years in prison, a fine of $250,000, or both. Assistant U.S. Attorney Carolyn J. Bloch is prosecuting this case, which was investigated by the FBI and the Hermitage Police Department.
PRODUCTION/DISTRIBUTION OF CHILD PORNOGRAPHY
On August 29, Chief United States District Judge Mark R. Hornak sentenced Randolph Guy Gum, 25, of Rochester, Pennsylvania, to 30 years’ imprisonment followed by lifetime supervised release on his conviction of production and distribution of material depicting the sexual exploitation of a minor. In 2014, Gum produced at least seven videos of his sexual exploitation of a minor—Minor A, and on July 23, 2015 distributed at least one of these videos and a link containing thousands of other images depicting the sexual exploitation of minors to another individual via email. At the time of the offense, Minor A was seven years old. In sentencing the defendant, Chief Judge Hornak ordered that at least 10 years (120 months) of Gum’s federal sentence shall run consecutive to the 15-year to 40-year state sentence that Gum is currently serving for the sexual abuse of Minor A. Assistant U.S. Attorney Heidi M. Grogan prosecuted this case. Homeland Security Investigations and the Rochester, Pennsylvania Police Department conducted the investigation.
On August 12, United States District Judge David S. Cercone sentenced Michael Robert Heinrich, 68, of Girard, Pennsylvania, to 15 years in prison, lifetime supervised release and a $5,300 special assessment. In January 2017 Heinrich took sexually explicit photos of a minor who was four years of age at the time. On February 14, 2017, Heinrich again took sexually explicit photos of that same four-year-old minor and also took a sexually explicit photo of a three-year-old minor. An examination of Heinrich’s computers and cell phone also revealed the presence of numerous other images depicting prepubescent minors engaged in sexually explicit conduct. Assistant U.S. Attorney Christian A. Trabold prosecuted this case on behalf of the government. The FBI and the Pennsylvania State Police conducted the investigation.
On August 13, Krent Jeffrey Haight, 47, formerly of Pittsburgh was indicted on charges of distribution and possession of material depicting the sexual exploitation of minors. According to the two-count Indictment, on or about September 20, 2018, Haight distributed material depicting the sexual exploitation of minors to an internet website, and on November 14, 2018, Haight knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. The law provides for a term of imprisonment of not less than five years, and not more than 20 years, a fine of $250,000, or both. Assistant U.S. Attorney Shanicka L. Kennedy is prosecuting this case, which was investigated by the FBI.
POSSESSION OF CHILD PORNOGRAPHY
On September 10, Michael Pulliam, 36, of Fairchance, Pennsylvania, was indicted on a charge of possession of material depicting the sexual exploitation of a minor. According to the one-count indictment, Pulliam knowingly possessed visual depictions, namely, images and videos in computer graphic files, which depicted, minors who have not attained 12 years of age, engaging in sexually explicit conduct. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Assistant U.S. Attorney Lee J. Karl is prosecuting this cas, which was investigated by the Pennsylvania State Police.
On September 9, Senior United States District Judge Donetta W. Ambrose sentenced Jason A. Early, 41, of Uniontown, Pennsylvania to a term of imprisonment of three years and one month (37 months), to be followed by 10 years of supervised release. In October 2017, Homeland Security Investigations was conducting an investigation into the Internet sharing of child pornography (CP). They obtained and executed a search warrant at the residence of Jason Early. A forensic review of his devices revealed 1,181 images and videos depicting CP, including images and videos of toddlers 2 or 3 years of age, as well as bondage. Early admitted to viewing CP through peer to peer programs and that there was CP stored on his MacBook and on two external hard drives. Assistant U.S. Attorney Shanicka L. Kennedy prosecuted this case. Homeland Security Investigations conducted the investigation.
On August 28, Brian R. Reddinger, 36, of Shaler Township, Pennsylvania, pleaded guilty to a charge of possession of material depicting the sexual exploitation of minors. In connection with the guilty plea, the court was advised that in the fall of 2016, Homeland Security Investigations was conducting an online investigation into the internet sharing of child pornography. As part of the investigation, a special agent was able to connect to a device that was sharing material depicting the sexual exploitation of minors and download a suspected child porn file. The investigation led to Brian Reddinger. On November 1, 2016, agents executed a search warrant on Reddinger’s home. Reddinger admitted to searching, downloading, viewing and possessing child porn. He stated that his downloads are highly structured on his computer. He further stated that he downloaded files of individuals as young as five years of age. Three of the items seized from Reddinger contained child porn. In total, there were 2,932 images and 60 videos of child porn on the devices. U.S. District Judge Cathy Bissoon scheduled sentencing for January 9, 2020. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000 or both. Pending sentencing, the court continued Reddinger’s bond. Assistant U.S. Attorney Shanicka L. Kennedy is prosecuting this case, which was investigated by Homeland Security Investigations.
On August 21, United States District Judge Kim R. Gibson sentenced John F. Boslett, 54, of Altoona, Pennsylvania, to two years (24 months) in prison and 10 years supervised release. On August 8, 2013, Boslet knowingly possessed images as computer graphic files containing child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer. Assistant U.S. Attorney Arnold P. Bernard, Jr. prosecuted this case. Homeland Security Investigations conducted the investigation.
On August 20, Jack Brian Laforte, 54 of Monessen, Pennsylvania, was indicted on a charge of possession of material depicting the sexual exploitation of a minor. According to Indictment, on or about June 14, 2019, Laforte possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Information provided to the court included the fact that Laforte was previously employed as a bus driver for the Monessen School District. The law provides for a maximum total sentence of 10 years in prison, a maximum term of supervised release of life, and a fine of $250,000, or both. Assistant U.S. Attorney Heidi M. Grogan is prosecuting this case, which was investigated by Homeland Security Investigations.
On August 15, United States Senior District Judge Nora Barry Fischer imposed the sentence on David McAnally, 64, of Mars, Pennsylvania, to four years’ (48 months’) imprisonment, followed by eight years’ supervised release. On September 4, 2015, McAnally unlawfully possessed more than 500,000 still images and videos in computer graphics files depicting minor females, some of whom were under the age of 12 years, engaging in sexually explicit conduct. McAnally received and distributed the images through Bit Torrent, a peer-to-peer Internet file-sharing network. Assistant U.S. Attorney Carolyn J. Bloch prosecuted this case on behalf of the government. The Pennsylvania State Police conducted the investigation.
On August 12, Matthew Poese, 47, of Fairview, Pennsylvania, waived indictment and pleaded guilty to a charge of violating federal laws relating to the sexual exploitation of children, In connection with the guilty plea, the court was advised that Poese possessed computer images depicting prepubescent minors engaging in sexually explicit conduct. Poese was previously employed as a Camp Counselor at a YMCA Camp in Eastern Ohio. U.S. District Judge David Cercone scheduled sentencing for December 9, 2019. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Pending sentencing, the court placed Poese on bond. Assistant U.S. Attorney Christian A. Trabold is prosecuting this case, which was investigated by the FBI.
U.S. Attorney’s Office Celebrates First RespondersRead the Press Release
Meet and Greet the Safety Fleet is planned for Saturday, September 21, 2019 at Cabela's at the Highlands in Triadelphia, WV.WHEELING, WEST VIRGINIA – Families from across the Ohio Valley will have the chance to see their favorite emergency response, military and construction vehicles up close this weekend, thanks to the United States Attorney’s Office, Cabela’s, first responders, and other businesses in our community.
United States Attorney Bill Powell is proud to announce the fourth “Meet and Greet the Safety Fleet” event at the Highlands in Triadelphia. This event offers a chance for children and their families to meet their local law enforcement and first responders and “touch a truck.” Participants can sit in their favorite vehicles, take pictures, and explore.
“The opportunity for children and their families to up close and personal with some our first responders and learn a little bit about what they do should never be passed up. The commemoration of 9/11 just recently passed, and it clearly reminded us of the sacrifices these brave men and women do on a daily basis,” said Powell.
The event is open and free to the public. It will be held Saturday, September 21, from 10 a.m. to 2 p.m. at Cabela’s in Triadelphia. There will be character appearances and a special appearance of AirEvac’s medical helicopter (weather permitting).
Two Austin Psychologists, Owners of Psychological A.R.T.S., P.C., Sentenced for Health Care OffensesRead the Press Release
In Austin today, a federal judge sentenced two Austin psychologists who own and operate Psychological A.R.T.S., P.C., and their patient recruiter for Health Care fraud related offenses, announced United States Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
U.S. District Judge Xavier Rodriguez sentenced 34-year-old Dr. David Fox Dubin, to three years in federal prison and ordered him to pay $282,019.92 restitution. Judge Rodriguez also sentenced 74-year-old Dr. William Joseph Dubin and 70-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, to five years probation and ordered each of them to pay, joint and severally, $61,230 restitution.
On October 29, 2018, jurors found the Dubins guilty of multiple federal crimes. Dr. William Dubin was found guilty of one count of conspiracy to pay and receive health care kickbacks, and two counts of offering to pay and paying illegal kickbacks. Dr. David Dubin was found guilty of one count of conspiracy to commit health care fraud, one count of health care fraud and aiding and abetting health care fraud, and one count of aggravated identity theft.
On October 11, 2017, McKenzie pleaded guilty to one count of conspiracy to violate the federal anti-kickback law and one count of receiving an illegal kickback. McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin that provided temporary shelter for crisis intervention and mental health services to children and youth ages 5 to 17 who had been removed from their homes by the Texas Department of Family and Protective Services.
Evidence provided during trial revealed that Dr. William Dubin paid McKenzie to use his position at the emergency shelter to refer children and youth to Psychological A.R.T.S., for comprehensive mental health services, which were billed to the Medicaid program. Upon receipt of payment for these services, Dr. William Dubin paid McKenzie a 10-percent kickback from the money paid to Psychological A.R.T.S.
Evidence during trial also revealed that Dr. David Dubin engaged in a conspiracy to commit health care fraud and committed health care fraud by causing at least one fraudulent billing to be submitted to the Medicaid program. Evidence further revealed that Dr. David Dubin engaged in aggravated identity theft when he caused a fraudulent claim to be submitted to Medicaid and unlawfully used a patient’s personal identification information to obtain payment of the bill.
Special Agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit investigated this case. Special Assistant U.S. Attorney Rex Beasley and Assistant U.S. Attorneys Greg Surovic, Justin Chung, and Daniel Castillo prosecuted this case on behalf of the Government.
Turtle Creek Woman Sentenced to Probation in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH – The final defendant in a federal drug trafficking prosecution has been sentenced in federal court to four years’ probation on her conviction of attempted distribution of heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Shyanne Johnson, age 27, of Turtle Creek, PA.
According to information presented to the court, Shyanne Johnson was indicted in connection with a DEA wiretap investigation. The intercepted wiretap communications revealed that in June 2016, Johnson traveled to Mechanicsburg, PA to meet with a heroin supplier to attempt to bring nearly 400 bricks of heroin back to Pittsburgh for distribution of the heroin by members of the conspiracy.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. United States Attorney Brady commended the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Pittsburgh Bureau of Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Johnson.
Tulare County Man Pleads Guilty to Drug Trafficking Charge and Illegal Possession of a Machine GunRead the Press Release
FRESNO, Calif. —Francisco Fernandez, 26, of Earlimart, pleaded guilty Monday to possessing with the intent to distribute cocaine and possession of an unregistered firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, a search warrant was executed at Fernandez’s residence in April 2019. During the search, federal agents found and seized scales, drug paraphernalia and cocaine. Fernandez admitted to possessing the cocaine for sale to others. Apart from the narcotics, federal agents also found “auto-sear” devices that are used to convert semi-automatic firearms to fire as fully automatic machineguns. In a subsequent search of Fernandez’s storage unit, agents located and seized several firearms, which included a Glock handgun that Fernandez had converted into a machinegun.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations (HSI). Assistant U.S. Attorney Thomas Newman is prosecuting the case.
Fernandez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Dec. 16. Fernandez faces a maximum statutory penalty of 20 years in prison and a fine of up to $1 million for the distribution of cocaine charge and a maximum statutory penalty of 10 years in prison and a $250,000 fine for the possession of an unregistered firearm charge. The actual sentence, however, will 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.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Trucking Company Owners Sentenced in Scheme to Falsify Federal Safety RecordsRead the Press Release
PROVIDENCE, RI – The owners of two trucking companies that hauled tons of refuse and scrap metal through Rhode Island and Massachusetts were each sentenced today to 12 months probation and fined $1,250 for directing employees to falsify federally mandated United States Department of Transportation (USDOT) Driver Vehicle Inspection Reports (DVIR) and allow trucks in need of repair to remain on the road and haul waste.
Leslie Cucino, 54, and Robert Cucino, Jr., 49, of Foster, RI, owners of CDE Corporation and Winsor Hill Hauling and Recycling Corporation, admitted to directing truck drivers over a period of years not to report safety defects on the DVIRs as they were required to do. In numerous instances, state police in Rhode Island and Massachusetts pulled over their trucks for safety inspections and issued inspection reports citing many defects, including some serious defects such as faulty brakes. The Cucinos’ regularly instructed drivers to report “no defects” on the DVIR reports.
A significant amount of the companies’ business included hauling fully loaded truckloads of scrap metal to the Port of Providence and to locations in Boston. The companies have since closed.
United States Department of Transportation (USDOT) regulations, enforced by the Federal Motor Carrier Safety Administration (FMCSA), a division of the USDOT, require that motor carriers require their drivers to prepare a daily DVIR on each commercial motor vehicle operated. The report must be in writing and prepared at the completion of each day's work, and must include at least the following parts and accessories: service brakes, parking (hand) brake, steering mechanism, lighting devices and reflectors, tires, horn, windshield wipers, rear vision mirrors, coupling devices, wheels and rims, and emergency equipment.
The reports, which must be preserved and made available upon demand for review, are the primary means by which FMCSA Inspectors and state law enforcement authorities enforce federal motor carrier safety regulations relating to the safety of the commercial motor vehicles.
Leslie and Robert Cucino, Jr., previously pleaded guilty to failure to comply with Department of Transportation regulations. They were each sentenced today by U.S District Court Magistrate Judge Lincoln D. Almond to 12 months probation and fined $1,250, announced United States Attorney Aaron L. Weisman and Todd Damiani, Special Agent in Charge of the United States Department of Transportation Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by USDOT Office of Inspector General and FMCSA, with the assistance of Massachusetts State Police and Rhode Island State Police.
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Trenton Man Pleads Guilty to Possessing a Short-Barreled ShotgunRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Brian Jordan, 33, of Trenton, Maine, pleaded guilty today in U.S. District Court to possessing an unregistered firearm.
According to court records, on more than one occasion between January 2017 and May 2018, Jordan held and shot a short-barreled shotgun with a barrel length of less than 10 inches. Federal law prohibits the possession of a weapon made from a shotgun, if the modified weapon has a barrel less than 18 inches in length or an overall length of less than 26 inches, unless that weapon is registered to the possessor in the National Firearms Registration and Transfer Record. The shotgun Jordan possessed was not registered to him.
Jordan faces up to 10 years imprisonment and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the United States Coast Guard Investigative Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine Marine Patrol.
Texas Hospital Administrator Sentenced to 10 Years in Prison for Role in $16 Million Health Care Fraud SchemeRead the Press Release
A Houston, Texas-area hospital administrator was sentenced today for his role in a $16 million Medicare fraud scheme involving partial hospitalization programs.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Region, and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Starsky Bomer, 46, of Houston, Texas, was sentenced by U.S. District Judge Vanessa Gilmore of the Southern District of Texas to 10 years in prison for his role in the scheme, and ordered the defendant to pay $6,277,575.77 in restitution and to forfeit $158,260. On Oct. 5, 2018, following a five-day trial before Judge Gilmore, Bomer was convicted of one count of conspiracy to receive health care kickbacks, two counts of violating the Anti-Kickback Statute, and one count of conspiracy to commit healthcare fraud from a November 2017 superseding indictment.
According to evidence presented at trial, from 2011 until February 2013, Bomer and his co-conspirators engaged in a scheme to defraud Medicare by submitting to Medicare, through Atrium Medical Center (Atrium) and Pristine Healthcare (Pristine), approximately $16 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness.
The evidence presented at trial showed that Bomer, the hospitals’ chief financial officer and chief operating officer, orchestrated a scheme by which he and others paid illegal bribes and kickbacks to group home owners and patient recruiters in exchange for sending Medicare patients to Atrium and Pristine’s PHPs. Bomer disguised bribes and kickbacks as salary payments and transportation payments to group home owners in exchange for patient referrals. In addition, evidence presented at trial showed that Bomer knew that many of the patients admitted to Atrium and Pristine’s PHPs did not qualify for and were never provided legitimate partial hospital services.
This case was investigated by the FBI, HHS-OIG and the Texas Attorney General’s MFCU. Assistant Chief Aleza Remis and Trial Attorneys Jason Knutson and Gerald M. Moody, Jr. of the Criminal Division’s Fraud Section prosecuted the case.
The Medicare Fraud Strike Force 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 HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tennessee Man Sentenced for Role in Ugandan Counterfeit Currency Distribution RingRead the Press Release
PITTSBURGH, Pa. - A Tennessee resident has been sentenced in federal court to three years (36 months) of probation, the first nine months on home detention, 250 hours of community service, a $5,000 fine and ordered to pay $120,710 in restitution on his conviction of conspiracy and transferring counterfeit currency, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Cole M. Harris aka Ink, 23, of Knoxville, TN.
According to information presented to the court, Harris was a reshipper in the United States for the distribution of Ugandan manufactured counterfeit currency that was being sold online by an individual using the moniker Willy Clock. Harris also traveled to Uganda and smuggled the counterfeit currency into the United States.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Secret Service, Federal Bureau of Investigation, and U.S. Customs and Border Protection for the investigation leading to the successful prosecution of Harris.
Springfield Man Sentenced to 24 Years for Leading Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for leading a drug-trafficking organization that distributed as much as 10 kilograms of heroin in Greene County, Mo., over a 15-month time period.
Jovan J. Denson, 41, was sentenced by U.S. District Judge Stephen R. Bough to 24 years and four months in federal prison without parole.
On March 18, 2019, Denson pleaded guilty to participating in a conspiracy to distribute heroin from March 1, 2016, to May 18, 2017. Denson also pleaded guilty to four counts of distributing heroin, one count of possessing heroin with the intent to distribute, and one count of money laundering (involving the down payment on a vehicle with $9,500 in proceeds of illegal drug trafficking).
Denson was arrested on May 17, 2017. At the time of his arrest, he was in possession of $11,500 that was derived from drug distribution. Law enforcement officers executed a search warrant at his residence the same day and seized approximately 528 grams of heroin. During the time of this conspiracy, Denson was on state parole for distributing crack cocaine.
Denson is among 14 defendants charged in this case, and among six who have pleaded guilty and been sentenced. Five co-defendants have pleaded guilty and await sentencing; one co-defendant is deceased.
Co-defendant Gerald E. Pope, 41, of Springfield, pleaded guilty in federal court today to his role in the conspiracy to distribute heroin. A sentencing hearing has not yet been scheduled.
One dose of heroin, which sells on the street for approximately $5 to $15, contains on average about .025 grams of heroin (40,000 doses per kilogram). An individual dose of heroin can be fatal, depending on its purity, and at least one death was linked to this conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Rosebud Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 9, 2019, by U.S. District Judge Roberto A. Lange.
Everett Joseph Menard, a/k/a Everette J. Menard, age 23, was sentenced to 21 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Menard was indicted by a federal grand jury on October 16, 2018. He pled guilty on June 18, 2019.
The conviction stemmed from an incident that occurred on September 27, 2018. On that date, Menard and the victim were both in custody at the Rosebud Sioux Tribe Adult Correctional Facility near Rosebud, South Dakota. At one point, Menard and the victim were both in the day room. The victim went to shower in one of the stalls that adjoins the day room. Menard knew the victim was in the shower stall, and subsequently carried a chair from the common area of the day room over to the shower stalls. He looked around to see if anyone was watching him, and then rushed into the victim's shower stall. He grabbed the victim, lifted him, and threw him to the floor. The victim suffered a broken wrist as a result of the assault.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Menard was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with EscapeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Escape from Custody.
Daniel Red Horse, age 49, was indicted on August 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 3, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 19, 2019, and August 13, 2019, Red Horse knowingly escaped from the custody of the United States Bureau of Prisons, where he was lawfully confined for the offense of Failure to Register as a Sex Offender.
The charge is merely an accusation and Red Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Red Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Raleigh Investment Advisor Sentenced to 40 Years for Orchestrating Ponzi Scheme, Obstructing the SEC, and Committing Aggravated Identity TheftRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in the United States District Court in Raleigh, Judge James C. Dever III sentenced STEPHEN CONDON PETERS, 45, of Raleigh, North Carolina, to serve a total term of 40 years in federal prison on charges of Investment Advisor Fraud, Fraud in the Sale of Unregistered Securities, Wire Fraud, Conducting Monetary Transactions in Criminally Derived Property, and Aggravated Identity Theft. The court also ordered that Peters make restitution in the amount of $15,063,624.30 to his numerous victims. The court also ordered forfeiture as part of the sentence.
United States Attorney Robert J. Higdon, Jr. stated, “With what is effectively a life sentence for Mr. Peters, the Court in this case gave a clear message: Investment advisors who steal their client’s money with lies, and use it to fund their own greed, will pay for their crimes in decades -- not days, months or years. This office will continue its mission to protect the elderly and others who place their trust in financial professionals.”
"Stephen Peters will spend the next 40 years right where he belongs, behind bars. Peters cheated hundreds of hardworking people out of their life savings so he could fund his own lavish lifestyle. This is a case about greed and abuse of trust. The FBI will continue to work with our partners to ensure this kind of malicious behavior is investigated and those guilty offenders are held accountable,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
At trial and through the sentencing process, the evidence showed that Peters, in his role as a Registered Investment Advisor, defrauded his numerous clients by steering them into investments in which Peters had a direct financial interest. He then compounded his crimes by attempting to defraud the SEC with false documents and statements. According to the Court, Peters’s crimes were “breathtaking,” but were proven with a “tsunami of evidence.” In issuing its 40 year sentence, the Court also noted that Peters “quadrupled down” on the crime by, among other things, perjurying himself at trial.
In addition to its order of restitution, the Court gave potential victims an additional 45 days in which to lodge claims of restitution that were not previously known to the Government. If you feel that you may have been a victim of this offense, and have not already responded to the Government’s requests for information, please contact the FBI or the U.S. Attorney’s Office.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Puerto Rican Man Going to Prison for Selling FentanylRead 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 Xavier Hernandez-Gerena, 29, of Puerto Rico, who was convicted of possession with intent to distribute fentanyl, was sentenced to serve 46 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that on October 16, 2018, law enforcement officers recovered quantities of fentanyl and heroin from the defendant. In addition, on May 23 and June 6, 2018, Hernandez-Gerena sold fentanyl to another individual in exchange for cash.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the New York State Police, under the direction of Major Eric Laughton.
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Ponte Vedra Man Indicted on Twelve Counts of Wire Fraud for Investment SchemeRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Robert H. Hendricks (63, Ponte Vedra) with 12 counts of wire fraud. If convicted, Hendricks faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Hendricks that the United States is seeking a money judgment of at least $2,638,924.34, the proceeds of the charged criminal conduct.
According to the indictment, Hendricks solicited his friends and clients to invest in fraudulent and sham investments in real property and commercial business ventures. To convince the victims of the veracity of their investments, Hendricks provided falsified property documents that represented the purported investments and made statements to hide and conceal the purpose of his scheme. Hendricks spent the funds to personally enrich himself and others.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.
Pierre Man Sentenced for Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 10, 2019, by U.S. District Judge Roberto A. Lange.
Kape Teal Burgee, age 25, was sentenced to 21 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Burgee was indicted by a federal grand jury on December 11, 2018. He was found guilty on July 7, 2019, by way of a court trial.
Burgee, a person who is required to register under the Sex Offender Registration and Notification Act, and sex offender by reason of a conviction under state law, absconded from the Community Transition Program in Rapid City in September of 2016 through October of 2018, and knowingly failed to register and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Burgee was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Man Found Guilty of Sex Trafficking ChildrenRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Artavius Horne, a/k/a “Lo”, 35, of Philadelphia, PA was convicted at trial of three counts of sex trafficking minors by force, fraud or coercion.
During the week-long trial, the government presented evidence which showed that the defendant organized, operated and led a sex trafficking venture based in and around Northeast Philadelphia. As part of the scheme, the defendant recruited, enticed, harbored, transported, provided, obtained, or maintained three minor children, one of whom was 13 years old, to engage in commercial sexual encounters. Horne created internet advertisements for each of the victims on a website known as Backpage.com, and he transported them across state lines to New Jersey, New York, Washington D.C., and Maryland for the purpose of engaging in commercial sex acts. He also kept the victims in apartments throughout Philadelphia, also known as “trap houses,” where they were made to engage in commercial sex for the benefit of the defendant.
“The defendant’s days of trafficking girls by force and manipulation for his own financial benefit are over,” said First Assistant U.S. Attorney Williams. “Sex trafficking is an appallingly pervasive problem, exacerbated by the easy availability of online advertising, and it demands an aggressive response. We stand ready with our federal partners to identify and dismantle organizations that perpetuate this abuse.”
The case was investigated by the Federal Bureau of Investigation, and it is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
Passaic County, New Jersey, Man Sentenced to 24 Years in Prison for Heroin Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 288 months in prison for conspiring to distribute at least one kilogram of heroin, U.S. Attorney Craig Carpenito announced.
Yasmil Minaya, a/k/a “Animal,” 33, was previously convicted on both counts of the indictment against him: one count of conspiracy to distribute one kilogram or more of heroin and one count of distribution and possession with intent to distribute one kilogram or more of heroin. Minaya was convicted following a two-week trial before U.S. District Judge Kevin McNulty, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:Law enforcement officials learned that Minaya and his co-defendants were serving as New Jersey and New York area distributors for a drug trafficking organization operating in the Dominican Republic, Mexico and elsewhere. The organization’s narcotics were usually transported to this area via truck and were paid for by the defendants before being sold on the street. The drug organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015, four kilograms in November 2015, and 10 kilograms in January 2017.
In addition to the prison term, Judge McNulty sentenced Minaya to five years of supervised release.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents with the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and officers with the N.J. State Police, Trafficking North Unit, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim, Chief of the Opioid Abuse Prevention and Enforcement Unit in Newark, and U.S. Attorney Carpenito.
Defense Counsel: Howard B. Brownstein Esq., Union City, New Jersey
Omaha Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Joseph Arner, 51, of Omaha, Nebraska, was sentenced today for receipt of child pornography. Senior United States District Court Judge Laurie Smith Camp sentenced Arner to 66 months in prison. There is no parole in the federal system. After his release from prison, Arner will serve a five-year of supervised release and will be required to register as a sex offender.
The case arose from a Cybertip related to a user sharing an image in a chatroom on Chatstep. In February 2018, law enforcement executed a search warrant at Arner’s residence and seized Arner’s laptop computer. Law enforcement then conducted a forensic examination of the computer and located more than 100 images and 20 videos depicting sexually explicit conduct involving a minor, including prepubescent minors as young as 10.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the FBI Child Exploitation Task Force.
Omaha City Council Member Pleads Guilty to Failing to File Federal Tax ReturnsRead the Press Release
United States Attorney Joe Kelly announced today that Vincent J. Palermo, 46, of Omaha, Nebraska, entered a plea of guilty before Senior United States District Judge Laurie Smith Camp to three counts of willful failure to file income tax returns for the 2012, 2013, and 2014 tax years. Each count calls for a maximum penalty of up to one year in prison, a $100,000 fine, a one-year term of supervised release, and a $25 special assessment.
Palermo, an Omaha City Council member, pleaded guilty to an Information which alleged that he willfully failed to file federal income tax returns, commonly referred to as Form 1040, for the 2012, 2013 and 2014 tax years, even though he received gross income in those years of $145,434, $220,400, and $129,612, respectively. Palermo admitted in court that he failed to file returns within the time required by law. The court ordered a presentence report and scheduled sentencing for December 9, 2019, at 1:30 p.m.
“Mr. Palermo should have been more aware of his own financial obligations. This wasn’t an oversight or mistake. This was the willful intentional act of not filing federal tax returns as required under the law,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.
This case was investigated by Internal Revenue Service, Criminal Investigation.
North Texas Man Sentenced to 20 Years for Conspiring to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
FORT WORTH – A North Texas man was sentenced today to 240 months in federal prison for conspiring to provide material support to Lashkar-e-Taiba, a Pakistani-based foreign terrorist organization also known as LeT, announced U.S. Attorney Erin Nealy Cox for the Northern District of Texas and Assistant Attorney General John C. Demers of National Security.
“This case demonstrates how an American citizen can be radicalized by a violent ideology based upon hate and how the actions of the FBI and our partners on the Joint Terrorism Task Force worked tirelessly to prevent violence here, and abroad. We cannot thank them enough for what they do to protect our community,” said U.S. Attorney Nealy Cox. “The 20 year sentence proves that justice in the Northern District of Texas can be swift and certain. We will work aggressively to counter terrorist threats and treat these cases with the highest priority.”
“Sewell conspired with another individual to provide material support to LeT and assisted his coconspirator with his plans to travel overseas to join the terrorist organization. Today’s sentence provides just punishment for his crime,” said Assistant Attorney General John C. Demers of National Security. “The National Security Division is committed to identifying and holding accountable those who conspire to provide material support to foreign terrorist organizations.”
“Eighteen years after 9/11, combatting terrorism remains the FBI’s top priority. Here, the defendant, a natural born American citizen, helped recruit a fellow American to fight for a group responsible for unspeakable violence across South Asia,” said FBI Special Agent in Charge Matthew J. DeSarno. “The FBI Dallas Field Office, and its partners who make up the North Texas Joint Terrorism Task Force, will work tirelessly to bring to justice those who offer their support to terrorist organizations, both at home and abroad.”
Michael Kyle Sewell, 18, was arrested in February and pleaded guilty to the conspiracy charge in May. He was sentenced by U.S. District Judge Reed O’Connor this morning. During sentencing, the United States introduced evidence that Sewell’s offense was consistent with a long pattern of online statements supporting violent extremism. Sewell had posted numerous messages threatening to attack individuals and gatherings of people who he believed were opponents of his radical beliefs. Sewell also conducted internet searches suggesting that he was investigating ways to carry out such attacks. During a search of Sewell’s home after his arrest, agents found an AR-15 style rifle, multiple magazines, and a number of knives in Sewell’s bedroom.
According to court documents, Sewell admitted to encouraging an individual identified in court documents as cc1 to join LeT. Sewell provided the coconspirator, who he spoke to on social media, with contact information for an individual he believed could facilitate the coconspirator’s travel to Pakistan to join LeT. Unbeknownst to Sewell and the coconspirator, the facilitator was an undercover FBI employee. After providing the facilitator’s contact information to the coconspirator, Sewell coached the coconspirator about how to present himself to the facilitator. Sewell then contacted the facilitator to vouch for the coconspirator’s intentions and promised that he would kill the coconspirator if he turned out to be a spy. Sewell also told the facilitator that he would recruit additional fighters to join LeT. The coconspirator continued to communicate with the facilitator, and made arrangements to travel to Pakistan to join LeT.
The FBI and its Joint Terrorism Task Force members, including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, Homeland Security Investigations, and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Weimer prosecuted the case with the assistance of Trial Attorney Bridget Behling of the National Security Division’s Counterterrorism Section.
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Public Affairs Officer Erin Dooley will be out of the office thru Monday, Sept. 16.
If you need immediate assistance, please contact Suzanne Martin at [email protected] .North Texas Man Sentenced to 20 Years for Conspiring to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
A North Texas man was sentenced today to 240 months in federal prison for conspiring to provide material support to Lashkar-e-Taiba, a Pakistani-based foreign terrorist organization also known as LeT, announced Assistant Attorney General John C. Demers of National Security and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
“Sewell conspired with another individual to provide material support to LeT and assisted his coconspirator with his plans to travel overseas to join the terrorist organization. Today’s sentence provides just punishment for his crime,” said Assistant Attorney General John C. Demers of National Security. “The National Security Division is committed to identifying and holding accountable those who conspire to provide material support to foreign terrorist organizations.”
“This case demonstrates how an American citizen can be radicalized by a violent ideology based upon hate and how the actions of the FBI and our partners on the Joint Terrorism Task Force worked tirelessly to prevent violence here, and abroad. We cannot thank them enough for what they do to protect our community,” said U.S. Attorney Nealy Cox. “The 20 year sentence proves that justice in the Northern District of Texas can be swift and certain. We will work aggressively to counter terrorist threats and treat these cases with the highest priority.”
“Eighteen years after 9/11, combatting terrorism remains the FBI’s top priority. Here, the defendant, a natural born American citizen, helped recruit a fellow American to fight for a group responsible for unspeakable violence across South Asia,” said FBI Special Agent in Charge Matthew J. DeSarno. “The FBI Dallas Field Office, and its partners who make up the North Texas Joint Terrorism Task Force, will work tirelessly to bring to justice those who offer their support to terrorist organizations, both at home and abroad.”
Michael Kyle Sewell, 18, was arrested in February and pleaded guilty to the conspiracy charge in May. He was sentenced by U.S. District Judge Reed O’Connor this morning. During sentencing, the United States introduced evidence that Sewell’s offense was consistent with a long pattern of online statements supporting violent extremism. Sewell had posted numerous messages threatening to attack individuals and gatherings of people who he believed were opponents of his radical beliefs. Sewell also conducted internet searches suggesting that he was investigating ways to carry out such attacks. During a search of Sewell’s home after his arrest, agents found an AR-15 style rifle, multiple magazines, and a number of knives in Sewell’s bedroom.
According to court documents, Sewell admitted to encouraging an individual identified in court documents as cc1 to join LeT. Sewell provided the coconspirator, who he spoke to on social media, with contact information for an individual he believed could facilitate the coconspirator’s travel to Pakistan to join LeT. Unbeknownst to Sewell and the coconspirator, the facilitator was an undercover FBI employee. After providing the facilitator’s contact information to the coconspirator, Sewell coached the coconspirator about how to present himself to the facilitator. Sewell then contacted the facilitator to vouch for the coconspirator’s intentions and promised that he would kill the coconspirator if he turned out to be a spy. Sewell also told the facilitator that he would recruit additional fighters to join LeT. The coconspirator continued to communicate with the facilitator, and made arrangements to travel to Pakistan to join LeT.
The FBI and its Joint Terrorism Task Force members, including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, Homeland Security Investigations, and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Weimer prosecuted the case with the assistance of Trial Attorney Bridget Behling of the National Security Division’s Counterterrorism Section.
Niagara Falls Woman Pleads Guilty to Selling Crack Cocaine with Her Incarcerated HusbandRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tasheka Stalling, 30, of Niagara Falls, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with the intent to distribute and distributing 28 grams or more of crack cocaine. The charge carries a maximum penalty of 40 years in prison.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that between November 2015 and January 26, 2017, the defendant conspired with her husband, Jermaine Ellison to sell crack cocaine.
Between November 12, 2015, and June 20, 2016, investigators conducted six controlled purchases of crack cocaine from Ellison. On August 30, 2016, Ellison was ordered into state custody by a Niagara County Court Judge to begin serving a state sentence. While Ellison was being held in the Green Correctional Facility, Stalling conspired with him to continue selling crack cocaine to his customers in Niagara County. Stalling utilized Ellison’s cellphone contacts in order to communicate with buyers to distribute the crack cocaine. During their conspiracy, Stalling and Ellison discussed details related to the ongoing sales over recorded telephone calls from the correctional facility. Investigators made a total of 16 controlled purchases of crack cocaine from the defendant.
Jermaine Ellison was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Niagara County Drug Task Force, under the direction of Sheriff James R. Voutour; the New York State Police, under the direction of Major Edward Kennedy; and the Niagara Frontier Transportation Authority, under the direction of Chief George Gast.
Sentencing is scheduled for December 20, 2019, before Judge Arcara.
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New York Man Sentenced to Nine Years in Prison for Kidnapping, Interstate Domestic ViolenceRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 108 months in prison for assaulting and kidnapping an individual with whom he had a romantic relationship, U.S. Attorney Craig Carpenito announced.
Rudolf Szoradi, 51, previously pleaded guilty before U.S. District Judge Jose J. Linares in Newark federal court to an information charging him with one count of kidnapping and interstate domestic violence. U.S. District Judge Esther Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Szoradi and the victim previously had a romantic relationship. On Dec. 15, 2017, Szoradi assaulted the victim with a knife in the basement of a Newark residence. The victim suffered serious injuries. Szoradi then confined her in a vehicle against her will and drove her across state lines, eventually reaching North Carolina, where the victim was able to receive medical attention for her injuries.
In addition to the prison term, Judge Salas sentenced Szoradi to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Newark Police Division and Clayton, North Carolina, police department for their assistance.
The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the U.S. Attorney’s Office’s Criminal Division in Newark.
New Orleans Man Sentenced for a Violation of the Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on Wednesday, September 11, 2019, HERBERT WILLIAMS, age 50, a resident of New Orleans, Louisiana was sentenced to serve 57 months in federal prison and 3 years of supervised release for violating federal law by possessing a firearm after having been convicted of a felony.
This case was brought as part of Project Safe Neighborhoods (PSN), a centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant U.S. Attorney Kathryn McHugh.
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New Orleans Man Pleads Guilty to Mortgage FraudRead the Press Release
NEW ORLEANS, LOUISIANA – THEODORE KURZ, age 70, a resident of New Orleans, Louisiana, pled guilty on September 12, 2019 to mortgage fraud before the Honorable Nannette Jolivette Brown, announced U.S. Attorney Peter G. Strasser. Sentencing has been set for December 12, 2019.
According to court documents, KURZ obtained mortgages for three properties through the State of Louisiana, Division of Administration, Office of Community Development. He then forged mortgage cancellations that he filed with the Orleans Parish Clerk of Court to falsely make it appear that the loans had been satisfied. KURZ then obtained mortgages through a different lender, falsely claiming that there were no outstanding mortgages or liens on the properties.
KURZ faces 30 years of imprisonment, 5 years of supervised release and a $1,000,000 fine.
U.S. Attorney Strasser praised the work of the Office of Inspector General for the U.S. Department of Housing and Urban Development in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of General Crimes.
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New Haven Man Sentenced to More Than 5 Years in Federal Prison for Bank RobberiesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that VINCENT JONES, 51, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 63 months of imprisonment, followed by three years of supervised release, for bank robbery offenses.
According to court documents and statements made in court, Jones attempted to rob the Key Bank located at 245 Main Street in East Haven on July 31, 2017; robbed the Webster Bank located at 247 Boston Post Road in Orange of $5,469 on July 31, 2017, and robbed the Bank of America located at 1331 Boston Post Road in Milford of $6,578 on August 8, 2018.
On January 31, 2019, Jones pleaded guilty to one count of bank robbery.
Jones, who has an extensive criminal history, has been detained since August 9, 2018, when he was arrested on related state charges.
This matter was investigated by the Federal Bureau of Investigation and the East Haven, Orange, Milford, New Haven and Waterbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Native of Mexico Pleads Guilty to Re-Entering the United States Illegally and Possessing Counterfeit DocumentsRead 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 Everardo Donoteo-Reyes, 27, of Mexico, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession of a counterfeit social security card and alien registration card, and illegal re-entry after deportation. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in September 2016, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), administratively arrested the defendant in Gretna, Louisiana, and in October 2016, he was ordered removed from the United States. Upon his departure, Donoteo-Reyes was advised that he could not re-enter the United States without the permission of the United States Attorney General, or his Successor, the Secretary of Homeland Security.
On March 1, 2017, United States Border Patrol encountered the defendant in the United States and administratively arrested him in Laredo, Texas. Two days later, on March 3, 2017, Donoteo-Reyes pleaded guilty to entering the United States unlawfully and was sentenced to 15 days confinement. On March 15, 2017, the defendant was physically removed from the United States to Mexico. Donoteo-Reyes was once again advised that he could not re-enter the United States without permission.
On May 24, 2018, the defendant was arrested by the Wayne County Sheriff’s Office on New York State criminal charges. The sheriff’s office sent Donoteo-Reyes’s fingerprints to Immigration and Customs Enforcement (ICE). An immigration records check determined that the defendant had no valid immigration status and was again illegally present in the United States. During the course of an investigation into the defendant’s missing girlfriend and her son, the Wayne County Sheriff's Office located fraudulent documents belonging Donoteo-Reyes, including a counterfeit alien registration card bearing defendant’s photograph, as well as a fraudulent social security card.
Donoteo-Reyes was subsequently indicted for the murder of his girlfriend and her toddler son. He pleaded guilty to 1st Degree Manslaughter on September 11, 2019, and he is scheduled to be sentenced on November 7, 2019.
“Although a violent crime, such as that to which this defendant pled guilty in New York State Court, may not be more egregious simply because it was committed by an illegal alien as opposed to a United States citizen or anyone else,” stated U.S. Attorney Kennedy, “what is particularly frustrating is that the defendant should never have had the opportunity to commit such a heinous crime in the first place. Simply put, the defendant should not have been in the United States, and the public needs to recognize that our immigration laws exist not only to punish those, like this defendant, who violate them but to protect those, like his girlfriend and her son, who do not. This Office will work tirelessly to continue to protect our community by faithfully discharging our duty to uphold all of the laws of our great Nation.”
The plea is the result of an investigation by agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Donoteo-Reyes is scheduled to be sentenced on the federal charges on December 16, 2019, before Judge Siragusa.
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Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Derrick Morris, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Morris, age 32, pled guilty to one count of “Use of a Firearm During and in Relation to a Drug Offense.” Morris, who is prohibited from having a firearm because of a previous conviction, is admitted to having a .45 caliber semi-automatic pistol during a drug offense in Monongalia County in November 2018.
Morris faces at least five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Midland Man Sentenced to 24 Years in Prison for Distribution and Receipt of Child Pornography, and Coercion and Enticement of a MinorRead the Press Release
Seth Ryan Mose, a 35-year-old resident of Midland, Michigan, was sentenced on September 12, 2019, to 290 months in federal prison for one count of Distribution and Receipt of Child Pornography and one count of Coercion and Enticement of a Minor, announced U.S. Attorney Matthew Schneider. Schneider was joined in the announcement by Rainer S. Drolshagen, Acting Special Agent in Charge of the FBI’s Detroit Field Office.
United States District Judge Thomas L. Ludington imposed sentence on Mose following his guilty pleas to Distribution and Receipt of Child Pornography and Coercion and Enticement of a Minor. Ludington also imposed five years of supervised release following his term of imprisonment and restitution payments to identified victims.
According to court documents, between February 2, 2018, and June 12, 2018, Seth Ryan Mose knowingly possessed, distributed, and received approximately 387 photographs and 102 videos containing child pornography through the use of various online social networks and chat rooms. In the fall of 2014, Mose used these social networks and chat rooms to entice a 12-year-old girl to send him nude photographs of herself. Later, Mose traveled from Michigan to Ohio and engaged in sexual contact with the 12-year-old girl, conduct that amounted to rape under Ohio law.
The case was investigated by the FBI and the Michigan State Police’s Computer Crimes Unit and Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Anca Pop.
Mexican Lawyer Sentenced to 96 Months for Laundering Millions of Dollars of Narcotics Proceeds for Sinaloa CartelRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Gibran Rodriguez-Mejia, a lawyer from Sinaloa, Mexico, was sentenced in federal court today by U.S. District Judge Roger T. Benitez to eight years in custody for laundering millions of dollars of drug proceeds for the Sinaloa Cartel.
Rodriguez, who has a Mexican law degree with a specialization in business and civil law, pleaded guilty in April, admitting that he operated a currency exchange house that received the proceeds of multi-kilogram quantities of cocaine, methamphetamine and heroin smuggled into the United States by the Sinaloa Cartel. Rodriguez, who was extradited from Mexico to San Diego in September 2018, is the fourth Mexico-based defendant in this case to be sentenced.
In his plea agreement, Rodriguez admitted to laundering $3.5 million in drug proceeds. He coordinated with couriers, primarily located in Southern California, who smuggled the bulk U.S. currency from the United States to Mexico. Rodriguez also admitted that he arranged for currency to be smuggled to an exchange house in Tijuana, Mexico that was owned and operated by co-defendant Cesar Hernandez-Martinez, who has also pleaded guily and is set to be sentenced on December 2, 2019. After the money was converted to Mexican pesos, Rodriguez provided financial accounts in Mexico into which the money was deposited for the benefit of the Mexican-based drug traffickers.
According to court records, in one instance in April 2014, Rodriguez and an individual referred to as “Doc” arranged for a southbound money courier to pick up $100,000 dollars from Philadelphia, Pennsylvania, and transport that sum to Mexico. “Doc” provided the courier’s identity to Rodriguez, who arranged the purchase of a plane ticket for the courier to travel to Philadelphia to make the pick up. When the courier landed, law enforcement conducted surveillance and then seized the $100,000 in cash on the courier’s person and in his hotel room.
“Those who launder proceeds for the world’s most violent drug trafficking organizations will continue to be targeted and brought to justice no matter where they may be located,” said U.S. Attorney Robert Brewer. “We will continue to combat efforts to further the flow of dangerous narcotics across the border into and through Southern California by every means at our disposal.”
In addition to the six defendants in U.S. custody in this case, approximately 20 other individuals have entered guilty pleas and have been sentenced previously in related cases. Those cases have involved individuals based in the United States or who frequently crossed into the United States and served as money couriers, drug couriers and drug stash house operators and who were part of, or related to, the same money laundering and drug trafficking organization.
Three other defendants have previously entered guilty pleas in this case and been sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda) and two others (Cesar Hernandez-Martinez and Oscar Rodriguez-Guevara) have entered guilty pleas. Hernandez-Martinez entered his plea on April 4, 2019 and will be sentenced on October 21, 2019 at 9:00 a.m. before Judge Benitez and Rodriguez-Guevara entered his plea on August 22, 2019 and will be sentenced on December 2, 2019 at 9:00 a.m., also before Judge Benitez.
The U.S. Attorney’s Office prosecuted this case with the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice in Washington, D.C.
DEFENDANT Case Number 15-cr-950
Gibran Rodriguez-Mejia Age: 31 Culiacan, Sinaloa, Mexico
SUMMARY OF CHARGE
Hernandez-Martinez
Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).
Maximum Penalties: Twenty years in prison; $500,000 fine or twice the value of the funds involved.
Prior Guilty Pleas and Sentences
Joel Acedo-Ojeda: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 135 months custody and $20,000 fine.
Omar Ayon-Diaz: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 120 months custody and $15,000 fine.
Osvaldo Contreras-Arriaga: Pleaded guilty to Conspiracy to import cocaine, in violation of Title 21, U.S.C., Secs. 952, 960 and 963; sentenced to 132 months custody and $1,000 fine.
Cesar Hernandez-Martinez: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on October 21, 2019.
Oscar Rodriguez-Guevara: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on December 2, 2019.
INVESTIGATING AGENCY
Homeland Security Investigations
Maximum sentence removes violent felon from Savannah neighborhoodRead the Press Release
SAVANNAH, Ga: A Savannah man has received the maximum federal prison sentence after his conviction for possession of a firearm by a convicted felon.
Hosea Scott, 39, was sentenced to 120 months in prison by U.S. District Court Judge R. Stan Baker, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Scott, who was convicted after a jury trial in June, also was sentenced to serve three years of supervised release after completion of his sentence. There is no parole in the federal system.
Scott’s arrest occurred in March 2018 after the police initially responded to a 911 call regarding a domestic dispute. Scott fled the scene before police arrived and was apprehended a short time later in possession of a loaded 9mm pistol equipped with a high-capacity magazine.
“Convicted felons are prohibited from possessing firearms at any time - period,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “We are committed to prosecuting repeat criminals who fail to get this message, and will work to ensure that gun crimes will bring hard prison time.”
The value of this type of case can be measured in human lives,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “This case involved illegally possessed firearm in the hands of a criminal. It demonstrates the cooperation that exists between the Savannah Police Department and ATF.”
The case was investigated by the Savannah Police Department and the ATF, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer Kirkland and Frank Pennington.
Leader of Armed Robbery Crew Sentenced to 41 YearsRead the Press Release
Tampa, Florida – United States District Judge William F. Jung has sentenced Rashid Iman Turner (32, Ft. Myers) to 41 years in federal prison for his involvement in a string of armed robberies of banks and retail stores. Turner was also ordered to pay $103,782.78 in restitution to the victims. A federal jury had found Turner guilty on May 29, 2019.
According to evidence presented at trial, in August and October 2017, Turner and co-defendant Petrie Addison robbed Family Dollar and Dollar General stores in Lehigh Acres. In both retail robberies, shortly after closing time, Turner and Addison held the employees at gunpoint, threatened to kill them and their families, forced them to open the safes, and stole cash from the stores. Co-defendant Dakiriya Lias served as their getaway driver for the Dollar General robbery.
In November 2017, Turner and Addison robbed a Wells Fargo Bank in Spring Hill. And, in December 2017, co-defendant Zachary Gloster joined Turner and Addison and they robbed Seacoast Banks in Arcadia and Port St. Lucie. In each of the bank robberies, the defendants stormed through the bank’s front doors shortly after opening time, held the employees at gunpoint, looted the teller drawers, and fled less than two minutes later.
Addison, Gloster, and Lias pleaded guilty for their roles in this case prior to Turner’s trial. This morning, Gloster was sentenced to 20 years in prison for his role. Addison and Lias are currently awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Ft. Myers Police Department, the Lee County Sheriff’s Office, the Pasco County Sheriff’s Office, the Hernando County Sheriff’s Office, the Florida Highway Patrol, the Arcadia Police Department, the Port St. Lucie Police Department, and the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael M. Gordon.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Lake Andes Man Sentenced for Abusive Sexual Contact of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Lake Andes, South Dakota, man convicted of Abusive Sexual Contact by Force was sentenced on September 11, 2019, by U.S. District Judge Karen E. Schreier.
Terry Clement Blaine, age 63, was sentenced to 240 months in federal prison, followed by 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Blaine was indicted by a federal grand jury on November 6, 2018. He pled guilty on June 26, 2019.
The conviction stemmed from incidents that occurred between 2010 and 2013, when Blaine knowingly engaged in sexual contact with a child under 12 years old. The molestation occurred while the child visited a relative's home.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Blaine was immediately turned over to the custody of the U.S. Marshals Service.
In the Aftermath of Hurricane Dorian Department of Justice Reminds the Public to be Aware of Fraud and Report it to the National Center for Disaster FraudRead the Press Release
The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“In the aftermath of Hurricane Dorian, I urge the public to be wary of fraudsters looking to exploit victims of the hurricane through identity theft schemes, solicitations for fake charities, or other types of fraud. Report suspected disaster fraud to the National Center for Disaster Fraud,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.
Since Hurricane Dorian’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property. Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorneys’ offices have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims. They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
In the Aftermath of Hurricane Dorian Department of Justice Reminds the Public to Be Aware of Fraud and Report It to the National Center for Disaster FraudRead the Press Release
WASHINGTON – The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“In the aftermath of Hurricane Dorian, I urge the public to be wary of fraudsters looking to exploit victims of the hurricane through identity theft schemes, solicitations for fake charities, or other types of fraud. Report suspected disaster fraud to the National Center for Disaster Fraud,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.
Since Hurricane Dorian’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property. Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorneys’ offices have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims. They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Illegal Alien Who Used Another Person’s Name and Social Security Number Sentenced to PrisonRead the Press Release
A man who used another person’s Social Security number to get a job was sentenced today to more than three months in federal prison.
Rony Sandoval-Ramirez, age 28, a citizen of Guatemala illegally present in the United States and residing in Toledo, Iowa, received the prison term after a June 25, 2019, guilty plea to one count of misuse of a social security number.
In a plea agreement, Sandoval-Ramirez admitted that on November 3, 2015, he used someone else’s name and social security number on employment forms and state and federal tax forms when applying for work in Tama, Iowa.
On September 5, 2016, Sandoval-Ramirez was arrested in Nobles County, Minnesota, and charged with driving while intoxicated. On September 7, 2016, Sandoval-Ramirez was arrested by immigrations for being illegally present in the United States and then released on an immigration bond. In July 2017, Sandoval-Ramirez was convicted of driving while intoxicated.
Following his release from immigration custody, Sandoval-Ramirez continued working under the false name in Tama, Iowa. He updated his employment forms in October 2018, again using the name and social security number of the other person. Sandoval-Ramirez worked under that person’s name until he was again arrested by immigration officials after he was charged with domestic assault with injury and two counts of child endangerment on May 25, 2019. These charges are currently pending in the Iowa District Court for Tama County.
Sandoval-Ramirez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sandoval-Ramirez was sentenced to 98 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sandoval-Ramirez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-61.
Follow us on Twitter @USAO_NDIA.
Guatemalan National Man Pleads Guilty to an Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Guatemalan national man pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Daniel Lopez-Ajqui, 26, faces up to two years in prison, a $250,000 fine, three years of supervised release, a special assessment, and possible removal from the United States when he is scheduled to be sentenced on October 21, 2019. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“This is Constitution Week in the United States and I celebrate that it is not only the finest document ever written by man but that it is also the foundation for the greatest nation in the history of the earth. But to be an American, you must follow the rules and come to this nation legally. This is Lopez-Ajqui’s third removal,” said United States Attorney Mike Stuart. “If he legally entered our country, he would be welcomed to stay.”
On June 11, 2019, Lopez-Ajqui was found in Elkview by members of ICE after they received information Lopez-Ajqui was working illegally in Elkview. ICE agents traveled to Elkview to confirm his legal status. The defendant admitted to agents that he was in the United States illegally. Lopez-Ajqui was arrested and ICE agents matched his fingerprints to previous removals from the United States. ICE agents further spoke to the defendant to confirm his identity. Lopez-Ajqui again admitted being in the United States illegally and had no identification documents permitting him legal status in the United States.
Fingerprinting matched Lopez-Ajqui to two prior removals from the United States in 2018 from Texas. In all prior removal hearings, Lopez-Ajqui was found by immigration judges to be in the United States illegally and he was deported to Guatemala. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Lopez-Ajqui further admitted to ICE agents that he was a Guatemalan citizen.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
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Georgia Man Pleads Guilty to Using the Internet to Attempt to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Douglas Scott Phillips (52, Richmond Hill, Georgia) has pleaded guilty to using the internet to attempt to entice a child to engage in sexual activity. Phillips faces a minimum mandatory penalty of 10 years, and up to life, in federal prison, and a potential life term of supervised release.
According to court documents, on November 15, 2018, a detective from the St. Johns County Sheriff’s Office engaged in an online undercover operation to identify individuals seeking to meet children for sex. The detective posted a notice on an online bulletin board using the fictitious persona of a “mother” with “a young 11-year-old daughter.” Phillips responded to the notice and confirmed the age of the “daughter.” Phillips indicated that he was “very interested” and sent the “mother” an explicit photo of himself.
Over the next two months, Phillips and the undercover officer had several online conversations in which Phillips expressed his desire and intention to engage in sexual activity with the “child.” During the conversations, Phillips instructed the “child” how to masturbate and sent pornographic photos illustrating how to do so. Phillips stated that he wanted to teach the “child” about sex in person. On January 7, 2019, Phillips told the “mother” that he was “serious about making this [meeting with the “child”] happen” and confirmed that he had texted with the “child” about masturbation.
On January 18, 2019, Phillips was arrested at his home in Georgia. During an interview, Phillips admitted seeing the advertisement and following up “just to see what it was.” He also admitted to engaging in sexual conversations with the “mother” and sending explicit pictures of himself to the “child.”
This case was investigated by the St. Johns County Sheriff’s Office, Homeland Security Investigations, the Liberty County (GA) Sheriff’s Office, and the Bryan County (GA) Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fourth Baltimore Man Pleads Guilty to Participating in A Conspiracy to Rob A Marijuana DealerRead the Press Release
Baltimore, Maryland – James Dorsey, a/k/a Boosey, Boosey Boo, and Bad Ass, age 24, of Baltimore, Maryland, pleaded guilty today to a commercial robbery, which resulted in the death of 18-year-old Markel Benson.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on October 12, 2015, Dorsey, Ameer Baker, Keyon Hawkins, and a juvenile planned a robbery of Benson, who sold marijuana outside a restaurant located in the 2300 block of W. North Avenue in Baltimore. Before the robbery, Dorsey, Baker, Hawkins, and the juvenile drove around the block where the restaurant was located to make sure that Benson was there. Baker was driving Hawkins’ car. After seeing Benson, Baker drove the men to Pulaski and Smallwood Roads, where they met Deonta Douglas. Baker gave Hawkins a gun. Hawkins, Douglas and the juvenile returned to the restaurant on foot, while Baker and Dorsey drove Hawkins’ car.
At approximately 6:40 p.m., Hawkins, Douglas, and the juvenile approached the restaurant and asked a friend of Benson’s if anyone had any “weed.” Benson’s friend indicated that Benson, who was inside the restaurant, had weed. Hawkins went inside and robbed Benson of his drugs, cash, and phones. Hawkins and the other men ran away. Benson was angry and wanted to find the men who robbed him and get his property back. Benson and his friend went to a nearby associate’s house to get a gun, then walked to the area where Benson believed they would find the robbers. Benson and his friend were captured on a CCTV street camera walking together and Benson appeared to be carrying a gun. The time noted on the CCTV camera was 6:55 p.m.
In the meantime, Douglas, Hawkins, Baker, Dorsey, and the juvenile were back on Ridgehill Avenue. Hawkins returned Baker’s gun to him and gave him Benson’s stolen phone. Hawkins started to roll a joint using Benson’s stolen marijuana when Douglas let the others know that Benson and his friend were coming up the street. Douglas yelled “line ‘em up,” a street phrase meaning to shoot someone. At that moment, Dorsey and Baker ran up an alley and Dorsey fired three shots. One shot hit Benson, killing him. Baker’s gun jammed. The CCTV camera captured individuals scattering on foot, running away from the shots.
Immediately after the shooting, Baker, at Dorsey’s direction, contacted a co-conspirator to take them from the scene of the crime. Baker used Benson’s stolen phone to call Hawkins and a family member.
Dorsey and the government have agreed that, if the Court accepts the plea agreement, Dorsey will be sentenced to 15 years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for December 16, 2019 at 3:00 p.m.
Keyon Hawkins, age 25; Deonta Douglas, a/k/a Cuzzo, age 24; and Ameer Baker, a/k/a Meer, age 25, all of Baltimore, previously pleaded guilty to their roles in the robbery. Hawkins was sentenced to 111 months in federal prison. Judge Bennett has scheduled sentencing for Baker and Douglas on November 12 and December 4, 2019, respectively, each at 3:00 p.m.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Lindsey N. McCulley, who are prosecuting the case.
# # #
Four People Charged in $99 Million Scheme to Commit Health Care Fraud and Wire Fraud and Pay Kickbacks to Doctors and Their EmployeesRead the Press Release
TRENTON, N.J. – Four people have been charged for their roles in conspiracies to commit health care fraud and wire fraud and to pay kickbacks to doctors and doctors’ employees, U.S. Attorney Craig Carpenito announced today.
Alex Fleyshmakher, 33, of Morganville, New Jersey, was arrested this morning and will have his initial appearance this afternoon before U.S. Magistrate Judge Douglas Arpert in Trenton federal court. Also charged in the superseding indictment are: Ruben Sevumyants, 36, of Marlboro, New Jersey; and Samuel “Sam” Khaimov, 47, and Yana Shtindler, 44, both of Glen Head, New York. Sevumyants was previously charged by indictment, and Khaimov and Shtindler were each previously charged by complaint.
According to documents filed in this case:
Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” out of locations in Union City, New Jersey, and Bronx, New York. They processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Fleyshmakher worked at Prime Aid Union City and was an owner of Prime Aid Bronx. Khaimov was an owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Shtindler was Prime Aid Union City’s administrator, and Sevumyants was its operations manager.
Initially, Prime Aid Pharmacies obtained retail network agreements with several pharmacy benefit managers (PBMs), which allowed them to receive reimbursement payments for prescription medications, including specialty medications. PBMs acted as intermediaries on behalf of Medicare, Medicaid, and private healthcare insurance providers, so that when a pharmacy received a prescription, the pharmacy then submitted a claim for reimbursement to the PBM that represented the beneficiary’s drug plan.
Starting in 2009, in order to obtain a higher volume of prescriptions, Khaimov, Sevumyants, Fleyshmakher, and other Prime Aid employees paid bribes and kickbacks to doctors and doctors’ employees to induce them to steer prescriptions to Prime Aid Pharmacies. The kickbacks included expensive meals and payments by cash, check, and wire transfers. Another method of bribery also involved paying an employee to work inside a doctor’s office for the doctor’s benefit.
Prime Aid Union City – at the direction of Shtindler, Khaimov, and Sevumyants – also engaged in the pervasive fraudulent practice of billing health insurance providers for medications that were never provided to patients. While Prime Aid generally provided medications for initial prescriptions it received, it systematically billed for refills for those same medications without ever dispensing them to patients. From 2013 through 2017, Prime Aid Union City received over $65 million in reimbursement payments from Medicare, Medicaid, and private insurers for medications the pharmacy not only failed to give patients, but never even ordered or had in stock.
PBMs conducted routine audits of Prime Aid Union City and discovered its practice of billing but not dispensing medications. In response to these audits, Shtindler instructed Prime Aid employees to falsify records submitted to the PBMs. Sevumyants forged shipping records of a private commercial shipping company to make it appear as if medications were shipped to the patients when, in fact, they were not.
Despite these concealment efforts, some PBMs terminated the Prime Aid Pharmacies from their PBM networks. In order to continue profiting from these same PBMs, Khaimov and Shtindler opened new pharmacies, including Your Care Pharmacy in Bronx, New York, and transferred patients from the terminated Prime Aid Pharmacies to Your Care. To facilitate this scheme, Shtindler and Khaimov lied to the PBMs about the true ownership of those pharmacies, including Your Care, in order to ensure that in approving such pharmacies, the PBMs did not know the affiliation between the terminated pharmacies and the new pharmacies. This scheme resulted in one PBM being defrauded into paying Your Care over $34 million in reimbursement payments.
The superseding indictment charges each defendant as follows:
Counts
Defendants
Charge
One
Khaimov
Shtindler
Sevumyants
Health Care Fraud Conspiracy
Two – Five
Khaimov
Shtindler
Sevumyants
Health Care Fraud
Six
Khaimov
Shtindler
Wire Fraud Conspiracy
Seven – Nine
Khaimov
Shtindler
Wire Fraud
Ten
Khaimov
Sevumyants
Fleyshmakher
Kickback Conspiracy
The healthcare fraud counts charged in Counts One through Five are each punishable by a maximum of 10 years in prison. The wire fraud counts charged in Count Six through Nine are each punishable by a maximum of 20 years in prison. The conspiracy to pay illegal kickbacks charged in Count 10 in punishable by a maximum of five years in prison. All 10 counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Scott J. Lampert; and the N.J. Office of the State Comptroller, Medicaid Fraud Division, under the direction of Director Josh Lichtblau, with the ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care & Government Fraud Unit, and Senior Trial Counsel Jason S. Gould of Criminal Division of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Fleyshmakher: TBD
Khaimov: Anthony Iacullo Esq., Nutley, New Jersey
Shtindler: Lawrence S. Lustberg Esq., Newark
Sevumyants: Amy Luria Esq. & Michael Critchley Sr. Esq., RoselandFormer Tribal Officials Make Appearances and Plead Guilty to Embezzlement from an Indian Tribal Organization and Aiding and AbettingRead the Press Release
United States Attorney Ron Parsons announced today that two former Crow Creek Sioux Tribe councilmembers made appearances in federal court for their respective charges of Embezzlement & Theft from an Indian Tribal Organization, and Aiding and Abetting.
Tina Grey Owl, age 63, was charged for the offense by Information and made her appearance in federal court in Pierre on September 5, 2019. She appeared before U.S. District Judge Roberto A. Lange and pled guilty to the embezzlement offense set forth in the Information.
On September 9, Rozanne Lynette Sazue, age 62, also appeared before Judge Lange and pled guilty to the charge contained in the Superseding Indictment.
According to the Superseding Indictment, in about March 2014 through February 2019, Roland Robert Hawk, Sr., Francine Maria Middletent, Roxanne Lynette Sazue, Jacquelyn Ernestine Pease, and Brandon Sazue embezzled, stole, willfully misapplied, willfully permitted to misapplied, and converted to their own use over $1,000 of monies, funds, credit, goods, assets, and other property belonging to the Crow Creek Sioux Tribe. During times relevant to each defendant’s case, Brandon Sazue served as Chair of the Crow Creek Sioux Tribe, Hawk served as the elected Treasurer of the tribe, Roxanne Sazue was also chair, and Middletent and Grey Owl were elected councilpersons. When not serving in their respective leadership positions, all defendants, except for Brandon Sazue, worked for Hawk in the tribe’s finance office. In their respective leadership roles and employment positions, the defendants had the access and opportunity to the funds that were embezzled from the tribe.
The maximum penalties for each defendant upon conviction are as follows: 5 years imprisonment, a $250,000 fine, or both; 3 years, of supervised release; $ 100 to the Federal Crime Victims Fund; and restitution may be ordered.
The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Roxanne Sauze and Tina Grey Owl were released on bond pending sentencing. A trial date for the other defendants has been set for October 8, 2019. The charges against the others are merely accusations and those defendants are presumed innocent until and unless proven guilty.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Salesman of Porsche Dealership Pleads Guilty to over $3 Million Fraud Scheme Involving Non-Existent Rare Porsche ModelsRead the Press Release
On September 13, 2019, a former salesman for Copans Motorsports d/b/a Champion Porsche, Shiraaz Sookralli, 45, of Plantation, pled guilty for leading a fraud scheme in which he entered into bogus sales orders for the sale of exotic Porsche models to over 30 customers throughout the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Sookralli pled guilty to conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19cr60188). He is scheduled for sentencing on November 14, 2019, at 10:00 am before U.S. District Judge Rodney Smith. He faces a maximum sentence of twenty years in prison.
According to his signed factual proffer and other court documents, in 2017, Sookralli opened a shell corporation with a name bearing a close resemblance to both Champion Porsche and another corporate affiliate of the dealership. After forming the shell corporation, Sookralli opened a bank account in the shell corporation’s name. Sookralli then entered into bogus sales orders with customers for the unauthorized sales of non-existent future exotic Porsche models. The majority of the vehicles were rare, highly sought-after, Carrera 911 models. The defendant required deposits from his victims in the form of, wire transfers, bank checks, and cash that he later deposited into his shell company’s bank account. The buyers relied on Sookralli’s longtime employment at Champion Porsche, title as “Vice President of Marketing,” representations that he or she would receive a yet-to-be-built Porsche vehicle, and the seemingly legitimate bank account for wiring deposits to Sookralli. Champion Porsche did not authorize Sookralli to conduct these transactions.
To further his scheme, Sookralli typically provided the customers with signed false and fraudulent purchase orders, sham vehicle build sheets showing the specifications of the customers' vehicle, as well as other false and fraudulent documents. Sookralli often communicated with customers using email and other wire communications. Some customers sent Sookralli payments using the United States mails and interstate bank wire transfers. During this same fraud scheme, Sookralli defrauded another victim with whom he had agreed to sell, “on consignment,” a certain Porsche vehicle for the victim. Once the defendant sold the car, he kept the money for himself.
Throughout the conspiracy, customers wired or otherwise transferred approximately $3,000,000 to Sookralli which he used for his personal benefit. As set forth in the court documents, the defendant used the money for extravagant expenditures including luxury vehicles, jewelry, nightclubs, and restaurants. Sookralli also funneled amounts in excess of $10,000 at a time from his shell company account to bank accounts he controlled.
Prior to executing the fraud scheme involving the bogus sales orders for the Porsche vehicles, in or around 2014 through 2016, Sookralli opened a separate “shell” company named Color Pro Motorsport. Through that company, Sookralli embezzled additional money from Champion Porsche.
After Champion Porsche uncovered Sookralli’s fraud scheme, it contacted his victims and began its cooperation with the criminal investigation. All of Sookralli's victims with valid claims were made whole by Champion.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI, and BSO in this matter. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Navy MP Sentenced to 20 years in Prison for Sexual Exploitation and Enticement of a MinorRead the Press Release
Assistant U.S. Attorneys Janet Cabral (619) 546-8715 or Amanda Griffith (619)546-8970
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Isaiah Smallwood Jackson, a former Navy military police officer, was sentenced today to 20 years in prison for sex crimes involving a 14-year-old girl.
Jackson was convicted by a federal jury in October 2018 of sexual exploitation of a minor and enticement of a minor. At the time of the offense in September of 2017, Jackson, 21, was on active duty with the U.S. Navy.
The jury found that Jackson created a profile on Spotafriend, a teens-only mobile application designed to allow teens to meet new friends. Because the terms of service for Spotafriend did not allow users over the age of 19 to create an account, Jackson created a user profile listing his name as “Logan” and listing his age as 17. In the description portion of the profile, however, he stated he was actually 21.
Using Spotafriend, Jackson began chatting with a 14-year-old girl from northern San Diego County. Early in their conversation, after making sure the victim knew he was 21, Jackson told the victim “is it bad that I don’t care about your age?” Jackson got the victim’s phone number and continued communicating with her through text messages. In one text Jackson asked the victim, “Okay cuteness, so are you ready to lose your virginity?” Jackson also enticed the victim to take explicit nude photos of herself to send to him.
Jackson got the victim’s home address and convinced her to permit him come to her home, telling her when she expressed that she was nervous, “Please I’m dying to see you” and “Take a leap of faith.” Once at the victim’s home, Jackson engaged in sexual acts with her, outside the home. Shortly after Jackson left, the victim reported the contact to her sister, who called the Oceanside Police Department.
Jackson was arrested by the Oceanside Police Department on September 21, 2017 and charged with state offenses relating to his sexual contact with the victim. At the time of his arrest, Jackson made a statement admitting he had communicated with the victim, and that he had gone to her house and engaged in sexual acts with her.
On October 25, 2017, Jackson was charged in federal court with use of a facility and means of interstate commerce to attempt to induce a minor to engage in unlawful sexual activity. Thereafter, a federal grand jury returned an indictment charging Jackson with sexual exploitation of a minor and enticement of a minor. A federal jury convicted Jackson on all counts after trial.
At sentencing, the victim’s family talked about how the victim has been devastated as a result of the contact with Jackson and is now afraid to be out in public or around men.
In imposing sentence, the Hon. Cynthia A. Bashant told Jackson that the Court “cannot ignore you engaged in clearly predatory conduct” by using a teens-only application to meet the victim and then continuing to communicate with the victim to convince her to let him come to her house.
Following his time in custody, Jackson will be on supervised release for a period of 10 years, during which he will be required to register as a sex offender, will be prohibited from initiating contact with minors or loitering in places primarily frequented by minors, and will be prohibited from accessing the internet except on devices where his use can be monitored by U.S. Probation Officers.
This case serves as a reminder for parents of the dangers posed by the internet, and the need for teenagers and their parents to maintain open lines of communication regarding online activity. Defendant’s abuse of a seemingly safe chat application for teens allowed Jackson access to this 14-year-old victim that he would not otherwise have had. From the time Jackson began chatting with the victim, until the time she reported the sexual contact to the police, just over 24 hours elapsed. Parents are urged to educate themselves and discuss these dangers with their children.
DEFENDANT Criminal Case No. 18cr1805-BAS
Isaiah Smallwood Jackson Age: 23 Vista, CA
SUMMARY OF CHARGE
- Count 1 – Title 18, United States Code, Section 2251(a), Sexual Exploitation of a Minor
- Count 2 – Title 18, United States Code, Section 2422(b) – Enticement of a Minor
- Criminal forfeiture – Title 18, United States Code, Section 2243 and 2428
Maximum penalties:
- Count 1 – 30 years in prison, with a minimum mandatory 15 years in prison
- Count 2 – Life in prison, with a minimum mandatory 10 years in prison
- As to all Counts, $250,000 fine
INVESTIGATING AGENCIES
Oceanside Police Department
Former Garden Plain Water Operator Pleads Guilty to Making False ReportRead the Press Release
WICHITA, KAN. - The former operator of the water system in Garden Plain, Kan., pleaded guilty today to falsifying a report on the quality of the city’s drinking water, U.S. Attorney Stephen McAllister said.
Arthur Wolfe, 64, Norwich, Kan., pleaded guilty to one count of a making a false statement in a report to the Kansas Department of Health and Environment that is required by the Environmental Protection Agency. Wolfe certified a bacteriological report in falsely represented water samples taken at the water treatment plant as samples taken at other locations.
Sentencing is set for Dec. 2. He faces a penalty of up to a year in federal prison and a fine up to $100,000. McAllister commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Fontana City Treasurer Sentenced for EmbezzlementRead the Press Release
WICHITA, KAN. – A former treasurer for the city of Fontana in Miami County, Kan., was sentenced Monday to 12 months and a day in prison for embezzlement, U.S. Attorney Stephen McAllister said.
Deborah Sell, 56, Fontana, Kan., pleaded guilty to one count of wire fraud and one count of filing a false tax return. In her plea, she admitted she used her position as treasurer to steal money from the city. She issued city checks to pay her personal expenses, withdrew cash using a city debit card for personal expenses, and deposited cash payments received from customers into her personal account.
At a sentencing hearing today, prosecutors told the court Sell embezzled a total of more than $174,000 from the city, including a debit card withdrawal of $414 at an ATM in a casino in Riverside, Mo.
She admitted her 2016 tax return failed to include more than $94,000 in income she embezzled that year.
McAllister commended the U.S. Secret Service, IRS-Criminal Investigation and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Duquesne Man Sentenced to Prison for Straw Purchasing and Trafficking FirearmsRead the Press Release
PITTSBURGH, Pa – A former resident of Duquesne, PA was sentenced to two years and 10 months (34 months) in prison and three years of supervised release on violations of federal firearms laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Khalil Armstrong, age 27, for conspiracy to make false statements in acquisition of a firearm, making a false statement in the acquisition of a firearm, and making a false statement to a licensed firearm dealer. Armstrong has been detained since his initial appearance in federal court.
According to information presented to the court, in and around January and February 2018, Armstrong, co-defendant Melvin Bowles, and others conspired to have Armstrong purchase firearms on behalf of Bowles and others. To further this conspiracy, Armstrong made false statements on required federal firearms forms and to federally licensed firearms dealers representing that he was the true purchaser of the firearms. In fact, Armstrong was not the true purchaser and was buying the firearms for other individuals including Bowles, a convicted felon. In total, Armstrong purchased 23 firearms in this manner and distributed them to Bowles and other individuals. On February 15, 2018, The Bureau of Alcohol, Tobacco, Firearms, and Explosives – Pittsburgh division executed a search warrant at Bowles’ residence and recovered the firearm purchased by Armstrong. The 22 remaining firearms have not been recovered. Melvin Bowles was sentenced previously to 14 months of time served.
Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
The Bureau of Tobacco, Alcohol, Firearms and Explosives conducted the investigation leading to the guilty plea and sentence in this case.