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Wednesday 4 September 2019
Atlantic County Man Admits Personal Income Tax EvasionRead the Press Release
CAMDEN, N.J. - An Atlantic County, New Jersey, man today admitted evading payment of income taxes on money he embezzled from his business, U.S. Attorney Craig Carpentino announced.
Barry Markman, 62, of Margate, New Jersey, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of evasion of income tax.
According to documents filed in this case and statements made in court:
Markman was one of the owners of a company that sold and installed shutters, shades and blinds to retail customers. The company also sold shutters, shades and blinds to wholesale customers using various other trade names. Markman admitted that between 2012 and 2016, he took checks written by the company’s customers and deposited those funds into his personal bank account. He later used those funds to gamble.
For 2012 through 2016, Markman substantially underreported his income by initially failing to include on his income tax returns $618,002 he received directly from the company’s customers. Markman admitted that he owed to the United States on this income he embezzled from the company an additional tax of $170,704.
The charge to which Markman pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 6, 2019.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Robert Williams Esq., Haddonfield, New Jersey
Ansonia Man Involved in Marijuana Trafficking Ring Sentenced to 55 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SCOTT BODNAR, also known as “Pep,” 40, of Ansonia, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 55 months of imprisonment, followed by three years of supervised release, for his involvement in a large-scale marijuana trafficking conspiracy.
According to court documents and statements made in court, in 2016, the Federal Aviation Administration began investigating a Piper single-engine aircraft, owned by Donald Burns of Milford, that was making regular flights between Stratford, Connecticut, and northern California via the southwest United States. On June 28, 2017, Burns flew the aircraft from northern California to Lubbock, Texas. The next day, Burns flew the aircraft from Texas to Arkansas, and then to West Virginia and Connecticut, where he landed in the evening at Sikorsky Airport in Stratford. After it landed, a law enforcement search of the plane revealed approximately 400 pounds of marijuana in vacuum-sealed packages, and Burns was arrested. Investigators determined that the marijuana was intended for Robert Capelli, Scott Bodnar, Terrell Givens and others to distribute in Connecticut. Capelli and Bodnar were arrested later that day.
The investigation revealed that, for more than two years, Capelli and his associates earned millions of dollars by trafficking nearly two tons of marijuana from California to Connecticut. Members of the conspiracy also laundered more than $6 million to purchase marijuana in California, maintain properties for distribution in Connecticut, pay Burns to transport the marijuana, and for other expenses related to the conspiracy.
On May 2, 2019, Bodnar pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana, and one count of conspiracy to launder monetary instruments.
Judge Arterton also ordered Bodnar to forfeit his 2012 Toyota Camry, which was seized during the investigation.
Bodnar, who is released on a $250,000 bond, is required to report to prison on October 16, 2019.
On July 26, 2019, a jury found Capelli, of Milford, guilty of one count of conspiracy to distribute, and to possess with intent to distribute, 100 kilograms or more of marijuana, and one count of possession with intent to distribute 100 kilograms or more of marijuana. He was found not guilty of one count of conspiracy to launder monetary instruments, and one count of money laundering. Capelli has forfeited approximately $90,000 to date, and additional forfeiture proceedings are pending.
On May 3, 2019, Givens, of Beacon Falls, pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana, and one count of conspiracy to launder monetary instruments. He also agreed to forfeit his 2009 Jaguar XF and approximately $8,000 in jewelry.
On May 6, 2019, Burns, of Milford, pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana. He also has agreed to forfeit the Piper aircraft.
Capelli, Givens and Burns await sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Federal Aviation Administration’s Law Enforcement Assistance Program (LEAP), the Customs and Border Protection’s Air and Marine Operations Center, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Stratford, Derby and West Haven Police Departments, and the Second Judicial Drug Task Force in Jonesboro, Arkansas.
The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Marc Silverman.
American Citizen, an Alleged ISIS Sniper and Weapons Instructor, Indicted for Providing Material Support to ISISRead the Press Release
A five-count indictment was filed yesterday in federal court in Brooklyn charging Ruslan Maratovich Asainov, 43, also known as “Suleiman Al-Amriki” and “Suleiman Al-Kazakhi,” with conspiracy to provide material support to ISIS; providing material support to ISIS in the form of personnel, training, expert advice and assistance and weapons; receipt of military-type training from ISIS; and obstruction of justice. If convicted, Asainov faces a maximum sentence of life in prison. Asainov will be arraigned at a later date.
John C. Demers, Assistant Attorney General for National Security; Richard P. Donoghue, United States Attorney for the Eastern District of New York; Michael McGarrity, Assistant Director of the Counterterrorism Division, FBI; William F. Sweeney Jr., Assistant Director-in-Charge, FBI, New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
As detailed in court filings, Asainov is a naturalized U.S. citizen born in Kazakhstan, who resided in Brooklyn. As alleged, in December 2013, Asainov traveled on a one-way ticket to Istanbul, Turkey, a common transit point to obtain entry into Syria. He subsequently entered Syria, joined ISIS and became a sniper for the terrorist organization. Over time, Asainov rose through the ranks to become an ISIS “emir” in charge of training other ISIS members in the use of weapons. He also attempted to recruit another individual to travel from the United States to Syria to fight for ISIS.
As further alleged, in March 2015, Asainov asked a confidential informant to send him approximately $2,800 so that he could purchase a scope for his rifle. Asainov subsequently sent the confidential informant two photographs of himself holding an assault rifle fitted with a scope. Asainov messaged one individual, exclaiming in reference to ISIS, “we are the worst terrorist organization in the world that has ever existed,” and added that he wished to die on the battlefield.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, Saritha Komatireddy and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Jacqueline L. Barkett of the Counterterrorism Section of the National Security Division of the Department of Justice.
Albany Meth Dealer Sentenced to 16 Years in PrisonRead the Press Release
ALBANY – A known methamphetamine dealer was sentenced to 16 years in prison for his crimes, said U.S. Attorney Charles “Charlie” Peeler. Terrence Lamont Brooks, 36, of Albany, Georgia previously entered a guilty plea in May 2019 to Distribution of Methamphetamine. U.S. District Judge Leslie Gardner sentenced Mr. Brooks to 192 months in prison and five years supervised release. There is no parole in the federal system.
Mr. Brooks admitted in his signed plea agreement that he arranged to meet a Confidential Informant (CI) on August 22, 2018 in a high-traffic area of Northwest Albany for the purpose of selling methamphetamine. Mr. Brooks met the CI in the 2700 block of Dawson Road, and under audio and visual surveillance, sold the CI 55.6 grams of 97% pure d-methamphetamine hydrochloride. During the course of two months, from August 2018 until September 2018, the CI made a total of four undercover buys from Mr. Brooks in various locations across Albany, totaling 226.3 grams of methamphetamine.
“I am proud of the excellent coordination by the investigating agencies that resulted in removing a well-known methamphetamine dealer from the streets of Albany,” said Charlie Peeler, the U.S. Attorney. “Our office will remain focused on supporting our law enforcement partners as they battle to keep our communities safe and free of deadly, illegal drugs.”
The case was investigated by the Lee County Sheriff’s Office, the Albany-Dougherty Drug Unit, the Georgia Bureau of Investigation, the Federal Bureau of Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Leah McEwen prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Albany Man Indicted for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Thomas Rosario, age 35, of Albany, was arraigned on August 26 on an indictment charging him with distributing child pornography through the Kik phone messaging application.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The indictment alleges that in May 2017, Rosario – using the Kik name “tommynewtothis” – shared child pornography by providing others with links to Dropbox.com remote storage accounts that contained child pornography. On August 26, 2019, Rosario appeared before United States Magistrate Judge Christian F. Hummel and was released under pretrial supervision conditions.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Rosario faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Rosario would also have to register as a sex offender upon his release from prison.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
4 Indicted in Series of Robberies Committed in Pittsburgh and Monroeville in Late 2018 and Early 2019Read the Press Release
PITTSBURGH, PA - Four residents of Allegheny County have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit Hobbs Act robbery and aiding and abetting, United States Attorney Scott W. Brady announced today.
Rudolph McBride, 21, of Penn Hills, Jaron Davis, 23, of Penn Hills, True Kinnon, 20, of Pittsburgh, and Wayne Edwards, 20, of Monroeville, were charged in a single indictment returned on August 28, 2019. According to the Indictment presented to the court, the four individuals conspired to commit robberies from October 2018 through February 2019, and the following members of the conspiracy committed the following robberies:
• On December 17, 2018, Jaron Davis and True Kinnon robbed a customer at the Home Goods store located at 200 Mall Boulevard in Monroeville while attempting to rob the store.
• On December 18, 2018, True Kinnon and Jaron Davis robbed the CoGo’s located at 925 East Carson Street in Pittsburgh.
• On January 30, 2019, Rudolph McBride, True Kinnon, and Wayne Edward robbed the CoGo’s located at 2800 Brownsville Road in Pittsburgh.
Additionally, Jaron Davis and True Kinnon are each charged with aiding and abetting the brandishing of a firearm in furtherance of a crime of violence on December 17, 2018, and Jaron Davis is charged with unlawfully possession a firearm from December 17 through December 19, 2018, after being convicted of an offense punishable by more than one year of imprisonment.
The law provides for a mandatory minimum sentence of seven years of incarceration for Davis and Kinnon and a maximum possible sentence of life in prison, and a maximum possible fine of $250,000 for each count of conviction. The law provides for a maximum sentence of 20 years of incarceration and a maximum possible fine of $250,000 for each count of conviction for McBride and Edwards. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rebecca Silinski, Timothy Lanni, Mark Gurzo and Doug Maloney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pittsburgh Bureau of Police, the Penn Hills Police Department and the Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tuesday 3 September 2019
Wetzel County woman sentenced for connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Cynthia Henries, of New Martinsville, West Virginia, was sentenced today to 12 months and one day incarceration for her involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Henries, age 47, pled guilty to “Aiding and Abetting the Distribution of Methamphetamine” in August 2018. Henries admitted to selling methamphetamine in March 2017 in Wetzel County.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part 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.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
West Virginia physician sentenced for illegal opioid distribution to patientsRead the Press Release
CLARKSBURG, WEST VIRGINIA— Dr. Felix Brizuela, Jr., of Harrison City, Pennsylvania, was sentenced today to 48 months incarceration for illegally distributing opioids, United States Attorney Bill Powell announced.
Following a six-day trial in January 2019, the jury found Brizuela, age 58, guilty of 15 counts of “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” The jury acquitted Brizuela of anti-kickback counts and six other distribution counts in the indictment.
The controlled substances illegally distributed by Brizuela included Oxycodone, Fentanyl, and Oxymorphone. They were distributed without legitimate medical purpose and outside the scope of professional practice in Monongalia County, West Virginia between 2013 and 2015.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of Inspector General at the U.S. Department of Health and Human Services, WV Offices of the Insurance Commissioner Fraud Division, WV Medicaid Fraud Control Unit, Office of Ohio Attorney General Health Care Fraud, Ohio Bureau of Workers’ Compensation, the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative, the Greater Harrison County Drug Task Force, a HIDTA-funded initiative, West Virginia State Police, the Hancock County Sheriff’s Office, and the Weirton Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Virginia man admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Todd Jason Erwin, of White Post, Virginia, has admitted to his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Erwin, age 42, pled guilty to one count of “Conspiracy to Distribute Cocaine Base and Heroin.” Erwin admitted to working with others to distribute cocaine base and heroin in October and November 2018 in Berkeley County.
Erwin faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
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.
U.S. Magistrate Judge Robert W. Trumble presided.
Virginia man admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Lee Gray, II, of Marshall, Virginia, has admitted to his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Gray, age 29, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Gray admitted to working with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties and elsewhere.
Gray faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part 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.
U.S. Magistrate Judge Robert W. Trumble presided.
United States District Court Enters Permanent Injunction Against Hendersonville Companies and Its OwnerRead the Press Release
NASHVILLE, Tenn. – September 3, 2019 – A federal court in Nashville today entered a consent decree of permanent injunction against Hendersonville, Tennessee-based companies Basic Reset and Biogenyx, and its owner Fred R. Kaufman III, and Kimberly Kaufman, the Department of Justice announced today. The permanent injunction enjoins the defendants from distributing unapproved new drugs and misbranded and adulterated dietary supplements and a misbranded and adulterated device in violation of the federal Food, Drug, and Cosmetic Act (FDCA).
A complaint was filed on August 26, 2019, in the Middle District of Tennessee, at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, that defendants unlawfully distributed unapproved new drugs and an adulterated and misbranded device. Defendants market their drugs and device with claims that their products can be used to diagnose, cure, mitigate, treat, or prevent conditions, such as inflammation, chronic diarrhea, bacterial infections, head lice, allergies, and pain. The FDA has not approved Basic Reset’s or Biogenyx’s drugs or device for any use.
“The public has the right to expect that products perform according to claims included in their labeling and that the products are safe for use,” said U.S. Attorney Don Cochran. “FDA regulations exists to safeguard consumers and when those regulations are circumvented we will take whatever action is necessary to protect the public.”
“Drug and dietary supplement distributors who do not comply with the law risk endangering consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We work closely with the FDA in our efforts to enforce the laws that are designed to keep consumers safe.”
“Americans expect and deserve products that meet appropriate standards for quality. To ensure safe use by consumers, it’s important that companies who sell products adhere to standards set forth by the FD&C Act, including product labeling and quality,” said Acting FDA Commissioner Ned Sharpless, M.D. “Despite previous warnings, Basic Reset and Biogenyx placed consumers at risk by distributing certain products in violation of current good manufacturing practice (CGMP) requirements and products which failed to adequately meet labeling standards. The U.S. Food and Drug Administration remains fully committed to taking enforcement action against companies and owners who place unsuspecting American consumers at risk.”
The complaint also alleges that Basic Reset and Biogenyx misbranded and adulterated their dietary supplements, several of which are missing information on their labels required by law. FDA inspections also uncovered numerous violations of the agency’s current Good Manufacturing Practice (cGMP) regulations for dietary supplements, including failing to establish and follow written procedures to review and investigate product complaints and failing to establish specifications to assure that the products they receive for labeling are adequately identified and consistent with the purchase order. Because Defendants failed to follow cGMP regulations, their dietary supplements are adulterated under the FDCA.
Basic Reset/Biogenyx is an own label distributor of various types of drugs, dietary supplements, and a device, and include, but are not limited to, AquaLyte, Bee Gold, Beta Factor, Body Mass Reset, CBD Reset, Dino-Min, Earth Wash, GH-C, Ionyte, Mello-Tonin, Miracle Facelift Masque, Nuovi Firming Masque, Nuovi Skin Toner, pH-FX, Q-min, SlimUp, TrimUp, Vibrant Energy Drink and Energy FX, a device intended for use in the cure, mitigation, treatment or prevention of disease, including but not limited to leukemia.
As part of the court-ordered permanent injunction, Basic Reset, Biogenyx, and their owners are prohibited from directly or indirectly receiving, labeling, holding, or distributing dietary supplements, drugs, or devices at or from their facility until they, among other things, recall their drugs, dietary supplements, and device, hire qualified experts to examine packaging and labeling, and receive written permission from the FDA to resume operations.
The United States is represented by Assistant U.S. Attorney Christopher Sabis of the U.S. Attorney’s Office for the Middle District of Tennessee, Trial Attorney Charles Biro of the Civil Division’s Consumer Protection Branch with the assistance of Associate Chief Counsel Laura Akowuah of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
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Two Cotulla Drug Traffickers Head to PrisonRead the Press Release
LAREDO, Texas - Two local residents have been ordered to federal prison after having being caught for selling methamphetamine out of a Cotulla residence, announced U.S. Attorney Ryan K. Patrick.
Francisco Flores, 44, and Fabian Cordova, 35, pleaded guilty in October 2018.
On Sept. 3, 2019, U.S. District Judge Diana Saldana ordered Flores to serve 151 months in prison for his four counts of trafficking methamphetamine. Flores was sentenced to 60 months for his one count of conspiracy to commit drug trafficking. The sentences will be immediately followed by five years of supervised release.
The investigation revealed Flores and Cordova had conducted several drug trafficking transactions. Authorities executed a search warrant March 8, 2018, at the residence of Flores in Cotulla. At that time, Flores and Cordova had attempted to flee but were ultimately arrested.
During the search, authorities also found 10 weapons and narcotics packaged for sale which included nearly 70 grams each of cocaine and methamphetamine.
Flores admitted he kept the weapons to protect himself and to selling narcotics for more than 25 years.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and the Cotulla County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Force operation dubbed Eagle Ford Shales. Assistant U.S. Attorney Graciella Lindberg prosecuted the case.
Turkish Businessman Sentenced to 27 Months Imprisonment for Conspiracy to Violate U.S. Sanctions by Exporting Marine Equipment from the United States to IranRead the Press Release
Resit Tavan, a Turkish Businessman and owner of the Istanbul-based Turkish business Ramor Dis Ticaret Ltd. (also known as the “Ramor Group”) was sentenced on Thursday, Aug. 29, 2019, in Federal District Court in Milwaukee, Wisconsin, to 27 months imprisonment in connection with his conviction for conspiracy to violate U.S. sanctions by exporting specialized marine equipment from the United States to Iran between 2013 to 2015.
On April 2, 2019, Tavan, a Turkish citizen, had pleaded guilty to a conspiracy to violate U.S. sanctions on Iran under the International Emergency Economic Powers Act by using his Turkish based company, the Ramor Group, to acquire a range of marine related equipment that had been manufactured in Wisconsin by U.S. companies, including high powered outboard engines, marine power generators and power boat propulsion equipment known as surface drives, on behalf of the Iran-based Qeshm Madkandalou Shipbuilding Cooperative (Madkanadalou). Evidence introduced in Court showed that Tavan had worked in cooperation with Iranian officers associated with Madkandalou to use some of this U.S. origin marine equipment to support the construction and development of a prototype high-speed missile attack boat for the Iranian military or naval forces. From early 2013 through 2015, Tavan and the Ramor Group had worked in concert with Iranian officials to procure U.S. origin marine equipment and illegally export it to Iran by using the Ramor Group in Turkey to receive the goods and thereafter re-export it to Madkandalou in Iran, in violation of U.S. sanctions.
At the sentencing hearing, the District Court Judge indicated that this conspiracy to violate U.S. sanctions by procuring marine equipment for military purposes represented a serious threat to U.S. national security. The Judge also found that Tavan’s role in the offense should be considered in connection with the overall direction and control of the project by higher ranking Iranian officials.
At no time did anyone involved in these transactions obtain permission from the U.S. Department of Treasury, Office of Foreign Assets Control or the U.S. Department of Commerce to export any U.S.-origin marine equipment from the United States to Iran.
A co-defendant charged in the same Indictment, Fulya Kalafatoglu Oguzturk, a Turkish citizen, remains at large as a fugitive.
Assistant Attorney General Demers and U.S. Attorney Matthew Krueger praised the outstanding investigative work of the FBI and the U.S. Department of Commerce, and thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Marshals Service, for their contributions to this case. The Office of International Affairs of the Justice Department’s Criminal Division provided significant support with the defendant’s extradition from Romania in 2017.
This case was prosecuted by Assistant U.S. Attorneys Paul Kanter and Keith Alexander, and by Trial Attorney Will Mackie from the Counterintelligence and Export Control Section of the National Security Division.
Tour Bus Driver Pleads Guilty to Killing Alaska Mayor and Mother in Downtown Washington Traffic FatalityRead the Press Release
WASHINGTON – Gerard D. James, 46, of Baltimore, MD, pled guilty today to two counts of negligent homicide stemming from a traffic collision last December where he struck and killed two pedestrians, including the Mayor of Skagway, Alaska, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
James pled guilty in the Superior Court of the District of Columbia this morning. The plea calls for a sentence of up to two years in prison for causing each of the two deaths, for a total of up to four years. He will be sentenced on November 15, 2019, by the Honorable Danya Dayson.
The fatal traffic collision occurred on Thursday, December 19, 2018, at approximately 9:40 p.m. The victims, Skagway, Alaska mayor Monica Carlson, 61, and her 85-year-old mother, Cora Adams, had come to Washington to tour the White House Christmas decorations. Video from a DC Department of Transportation camera showed Mayor Carlson and Ms. Adams waiting to cross Pennsylvania Avenue NW at the corner of 7th Street near the National Archives. As the pedestrian signal changed, allowing the victims to cross, they walked north across Pennsylvania Avenue in the marked crosswalk. As the two were crossing, an Eyre Bus Company tour bus being driven north on 7th Street by the defendant, turned left onto Pennsylvania Avenue. The bus struck both pedestrians as they crossed. Both Mayor Carlson and Ms. Adams were taken to area hospitals where they died from their injuries.
The Eyre tour bus that the defendant was driving was equipped with cameras that captured video from two angles of the bus, a forward facing camera on the bus’s windshield and another mounted over the operator’s compartment. The forward position camera showed that as the bus traveled north towards the Pennsylvania Avenue intersection, southbound 7th Street traffic traveled through the intersection, indicating that when James executed the left turn onto Pennsylvania Avenue, the signal controlling his progress showed a left red arrow. The other camera, mounted over the operator’s compartment, showed that as James was turning left from 7th Street onto Pennsylvania Avenue, his cell phone rang and lit up. Simultaneously as James was turning left, he picked up the ringing cell phone with his left hand and transferred it to his right hand. As the video showed this, the impact of the striking of the two pedestrians could be heard on the video.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of the officers and detectives who investigated the case from the Major Crash Investigations Unit of the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigative Analyst Zachary McMenamin, Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Jennifer Clark.
Finally, they commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the case.
Suburban Man Sentenced to 15 Years in Prison for Sharing Child Pornography and Sexually Assaulting a MinorRead the Press Release
CHICAGO — A suburban man has been sentenced to 15 years in federal prison for sharing sexually explicit images of children and sexually assaulting a 13-year-old girl he met online.
Using the screen name “darkangle25,” MATTHEW SMITH, 51, of Burbank, shared sexually explicit images and videos of children on the Kik online messaging application. Some of the images depicted underage girls being sexually abused. Smith also sexually assaulted a 13-year-old girl in 2015 after chatting online and luring her to his home.
Smith pleaded guilty earlier this year to federal child pornography charges. U.S. District Judge Charles R. Norgle on Aug. 30, 2019, sentenced Smith to 15 years in prison, to be followed by ten years of supervised release.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Burbank Police Department provided valuable assistance.
“This sentence underscores HSI’s commitment to protecting the most vulnerable members of our society — our children,” said SAC Gibbons. “We will continue to work in partnership with fellow law enforcement agencies and the U.S. Attorney’s Office to bring those engaged in child exploitation to justice.”
Although many of the children depicted in the images and videos have not been identified, 17 of the victims submitted impact statements to the Court prior to sentencing. In the statements, the victims detailed the lasting nature of the conduct by Smith and others who shared the images and videos online.
“By downloading [child pornography], storing, and trading it with others, he continued the victimization of children who had been filmed or photographed engaging in acts no child should be part of,” Assistant U.S. Attorney Matthew Hernandez argued in the government’s sentencing memorandum. “The 17 victim impact statements submitted to the Court speak to the incalculable damage caused to those young victims of child pornography.”
Smith met the 13-year-old victim online and spent two years grooming her via Kik, text message, and phone calls, before enticing her to his apartment. As detailed in victim impact statements submitted by the victim’s family to the Court, the girl’s disappearance caused her family immense suffering and prompted them to file a missing person report on her behalf.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com/home or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Suburban Houston Man Gets 34 Years for Sexually Exploiting a ChildRead the Press Release
HOUSTON – A 41-year-old resident of New Caney has received a massive sentence following his conviction of producing and possessing child pornography, announced U.S. Attorney Ryan K. Patrick. Joshua James Holmstedt pleaded guilty April 16, 2019.
Today, U.S. District Judge Andrew A. Hanen handed Holmstedt a sentence of 360 months for the sexual exploitation of a child, otherwise known as production of child pornography. He also received 120 months for the possession of child pornography - 48 months of which was ordered to run consecutively for a total of 34 years in federal prison. He was also ordered to serve 30 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Holmstedt will also be ordered to register as a sex offender.
Holmstedt came to the attention of law enforcement July 17, 2017, when authorities in the District of Columbia posted an online message as part of an undercover investigation. They then received a message via an application known as Kik from Holmstedt. He communicated with the undercover officer and indicated he had access to two minor children which he proved by sending a picture of himself holding up a specific number of fingers in front of the minor female victim’s face. Over the course of a few days, Holmstedt sent several images of the minor female as well as other images and videos of child pornography. One of the worst videos Holmstedt provided showed him digitally penetrating the minor female. At the time, the victim was only three years of age.
Based on information gathered during the investigation, local authorities were able to locate and identify the victim and the other child mentioned. Holmstedt was located July 21, 2019, at which time he indicated he had destroyed the phone he used to create the images and to communicate with the undercover officer
The District of Columbia Metropolitan Police Department – FBI Child Exploitation Task Force and FBI Houston conducted the investigation with the assistance of the Montgomery County Constables’ Office – Precinct Four.
Holmstedt has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
St. Louis Man Pleads Guilty to Four Armed RobberiesRead the Press Release
St. Louis, MO –Carlos Robinson, 28, of St. Louis, MO, pleaded guilty to four counts of robbery and two counts of brandishing a firearm in furtherance of a crime of violence arising out of four separate armed store robberies committed in early 2017. Robinson appeared today before U.S. District Judge Henry E. Autrey, who accepted his plea and set a sentencing date of December 3, 2019.
According to the plea agreement, on February 6, 2017, at approximately 5:00 p.m., Robinson entered the Conoco Gas Station located at 3600 Big Bend Boulevard in St. Louis County. He pulled a bandana over his mouth and pointed a silver firearm at the clerk. Robinson instructed the clerk to open the cash register and demanded money before exiting the service station.
On February 10, 2017, at approximately 10:00 a.m., Robinson entered the Mobil on the Run gas station located at 9371 Olive Boulevard, also in St. Louis County. He pointed a small silver firearm at the clerk, told her to open the cash register drawer and give him the money.
On February 13, 2017, at approximately 1:39 p.m., Robinson entered the BP gas station located at 7003 Manchester Avenue, St. Louis City. He entered the store wearing sunglasses and asked to use the bathroom key, which the cashier provided. Robinson returned the key, walked inside the Plexiglas partition and revealed a firearm to the cashier, demanding money. The cashier was able to physically push Robison out of the secure cashier area, close the door, and push the alarm.
On February 15, 2017, at approximately 7:01 p.m., Robinson entered the Family Dollar located at 4344 Dr. Martin Luther King, Jr. Drive, also in St. Louis City. He approached the register and asked for a pack of Newport cigarettes. Robinson displayed a firearm, demanded money, and threatened to hurt the cashier if she did not comply.
The robbery charges carry a penalty of not more than 20 years and/or a fine of $250,000 on each count. The firearm charges carry a penalty of not less than seven years nor more than life and/or fine of $250,000 on each count consecutive to any other sentence imposed. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the Maplewood Police Department, the Olivette Police Department, and the St. Louis Metropolitan Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Riverside County Tax Preparer Pleads Guilty to Charges of Cheating IRS Out of $2.1 Million through Filing of Hundreds of Bogus ReturnsRead the Press Release
LOS ANGELES – An Inland Empire income tax return preparer pleaded guilty today to federal criminal charges for defrauding the Internal Revenue Service out of more than $2.1 million by submitting false tax returns on his clients’ behalf, including obtaining child tax credits for childless clients.
Dennis L. Reed II, 31, of Hemet, pleaded guilty to two counts of aiding and assisting in the preparation of false income tax returns. United States District Judge Otis D. Wright II scheduled a December 2 sentencing hearing, at which time Reed will face a statutory maximum sentence of six years in federal prison.
Reed admitted in his plea agreement that, from 2014 through 2019, he prepared hundreds of federal and state income tax returns containing false claims designed to generate or increase fraudulent tax refunds. The fraudulent tax returns falsely claimed, for example, that the taxpayers had dependents, operated a sole proprietorship, or were entitled to receive credits for certain educational expenses.
For example, Reed admitted he prepared at least 384 returns that falsely stated that the client had earned income from Schedule C sole proprietorships, which are tax forms used by the self-employed to report business profits or losses. In reality, Reed knew his clients did not work at all during the year, had not earned income, and were not required to file an income tax return, the plea agreement states. On at least 79 tax returns, Reed admitted he created phantom business income or losses and claimed false dependents on clients’ tax returns in order to generate tax refunds to which the clients weren’t entitled. On at least 114 tax returns, Reed falsely claimed that the clients had educational expenses that resulted in refunds to which they weren’t entitled.
Though Reed prepared federal income tax returns for clients, he did not sign their returns to identify himself to the IRS as the returns’ preparer, but rather stated on the tax returns that they were “self-prepared,” the plea agreement states. Reed admitted that he charged clients between $350 and $1,350 to prepare and file income tax returns.
The false tax returns Reed prepared resulted in a loss of $2,158,337 to the IRS, according to the plea agreement.
This matter was investigated by IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.
Richland County man formerly affiliated with the Boy Scouts of America pleaded guilty to sexual exploitation of children after he surreptitiously recorded children changing before and after swimmingRead the Press Release
A Richland County man formerly affiliated with the Boy Scouts of America pleaded guilty in federal court to sexual exploitation of children after he surreptitiously recorded children changing before and after swimming.
Thomas Close, 39, of Shelby, pleaded guilty to two counts of sexual exploitation of children and one count of receiving and distributing child pornography. He is scheduled to be sentenced January 15.
Under the terms of his plea agreement, Close is expected to be sentenced to between 27 and 33 years in prison.
According to an affidavit filed in the case:
Homeland Security Investigations agents received information from the Cyber Crimes Center regarding videos taken of minor boys changing before or after swimming at the YMCA in Sandusky.
A review of several videos revealed they were recorded at the YMCA facility in Sandusky, which sometimes rented its pool to the Boy Scouts, inside teepees used at the Firelands Scout Reservation in Wakeman, as well as inside the bathroom of a home that appeared to have a swimming pool.
Investigators met with Boy Scouts of America officials in Cleveland, whose area includes seven counties. Due to the fact that all of the photos appear to revolve around changing before or after swimming, Boy Scout officials alerted investigators to an incident report from June 2017 documenting an occurrence at the Firelands Scout Reservation they felt could be related. The report was made by a den leader regarding a Boy Scouts of America staff member named Thomas Close, also known as “Aqua Joe,” according to the affidavit.
Close was associated with Boy Scout Troop 406 and had a pool in his back yard.
HSI investigators went to Close’s home on November 1, 2018. Upon viewing his bathroom, they realized it is the same bathroom depicted in one of the videos. Close admitted to making the videos and said he created videos between 2011 and the summer of 2018, according to the affidavit.
He also admitted to downloading child pornography and said he had approximately five terabytes of child pornography on his computer, according to the affidavit.
“This defendant used his position of trust to exploit several children and cause harm that will likely linger for years for his victims and their families,” U.S. Attorney Justin Herdman said. “This defendant needs to be locked up for decades and today’s plea is another important step in making sure that happens.”
"Mr. Close's admission today will hopefully begin the healing process for all of those who have been impacted by his heinous crimes," said Vance Callender, HSI special agent in charge for Michigan and Ohio. "I commend the community who supported this sensitive investigation and the pursuit of justice throughout this difficult period. Among its many types of investigations, HSI looks to bring swift justice to perpetrators of child exploitation through a victim centered approach."
Cuyahoga County Prosecutor Michael O’Malley said: “Hard work by law enforcement has taken another child predator off the street. We will continue to work with our federal partners to put an end to these crimes.”
This case was investigated by Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force and the Shelby Police Department. It is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
Reno Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
RENO, Nev. – A Reno resident who was on parole when he downloaded over two thousand images and videos of child pornography was sentenced today to 6 ½ years in federal prison, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
David Guilmette, 37, pleaded guilty in March 2018, to one count of receipt of child pornography. Guilmette has a felony conviction for attempted sexual assault of a child. In addition to the prison term, United States District Chief Judge Miranda Du sentenced Guilmette to lifetime supervised release. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
According to court documents, in October 2017, Reno Police Department officers responded to a complaint from a witness that reported seeing Guilmette looking at child pornography on a laptop computer. During an interview with law enforcement, Guilmette admitted to searching for and downloading child pornography. Officers obtained a search warrant to seize the laptop, thumb drive, and a mobile phone. A forensic examination of Guilmette’s laptop and thumb drive revealed approximately 850 images and 115 videos depicting children engaging in sexually explicit conduct, some masochistic and sadistic in nature. An additional 1,240 images and seven videos were located from deleted files.
The case was investigated by the FBI and the ICAC Task Force consisting of Washoe County Sherriff’s Office, Nevada Attorney General’s Office, Department of Homeland Security Investigations, Reno Police Department and Sparks Police Department. Assistant United States Attorneys Sue Fahami and Andolyn Johnson prosecuted the case.
If you have information regarding possible child sexual exploitation, you are urged to make a report to the National Center for Missing and Exploited Children at www.cybertipline.org or to contact local authorities.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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 and for information about internet safety education, please visit www.justice.gov/psc.
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Professional Skateboarder Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
Assistant U. S. Attorney Matthew Brehm (619) 546-8983
SAN DIEGO – Robert Lorifice, a North County professional skateboarder, and his then-girlfriend Elizabeth Alexandra Landis, pleaded guilty in federal court today to possessing methamphetamine and heroin with the intent to distribute.
Lorifice and Landis admitted to possessing the methamphetamine, heroin and other controlled substances with the intent to distribute them and that Lorifice, with Landis’ assistance, coordinated deals utilizing phone calls, text messages and communication through other apps; and they admitted to selling methamphetamine, heroin and other controlled substances for money.
For example, on September 7, 2018, Landis sent a text message that read: “I have bomb dark [heroin] you should try and I got [narcotics] and even some really bomb blue [methamphetamine] - the real deal. And bomb kush [marijuana] too. If u want to stop by here on ur way up let me know. I am gonna be heading down to sports arena a minute so if u aren’t leaving just yet I can swing by there.”
Lorifice and Landis admitted in their plea agreements that, when a search warrant was executed at Lorifice’s house in Encintitas on September 26, 2018, he did not answer the door and instead disposed of an unknown quantity of blue methamphetamine and other drugs down the toilet and sink in his master bedroom’s bathroom.
During the search of Lorifice’s residence, investigators found Lorifice and Landis in the master bedroom along with approximately 193 grams of methamphetamine, 231.6 grams of heroin, Roxicodone pills, more than 800 Xanax pills, a yellow powdery substance, marijuana, psilocybin mushrooms, a digital scale, packaging materials, three cell phones and approximately $16,824.
Lorifice and Landis further admitted that, on December 14, 2018, while Lorifice was out on bail on a state case, investigators executed a second search warrant at his same residence in Encinitas and Lorifice attempted to flush a tennis ball-sized chunk of methamphetamine down the toilet in the master bedroom’s bathroom. Again, Landis was also found in the master bedroom with Lorifice along with approximately 31 grams of black tar heroin, 18 grams of methamphetamine, $10,926 in currency, a digital scale and various pills.
Lorifice and Landis also admitted the $16,824 and the $10,926 seized during the search warrants were proceeds from drug trafficking and was also currency they intended to use to facilitate their drug trafficking activities.
Lorifice and Landis are schedule to be sentenced on November 22, 2019 at 9 a.m. by U.S. District Judge Dana M. Sabraw.
“It’s unfortunate that a public figure who is admired by kids chose to travel down this road,” said U.S. Attorney Robert Brewer. “We have a very big methamphetamine problem in our county right now, plus a nationwide opioid epidemic is raging, and we are going after anyone who sells the poison that is destroying lives and families and communities.”
"The successful conclusion of this case serves as a strong warning to drug dealers who operate on the streets of San Diego," said FBI Special Agent In Charge Scott Brunner. "Day in and day out, the FBI and our law enforcement partners work together in order to keep deadly narcotics off the streets and hold drug dealers accountable. This is an example of the important work we do with our partners at the San Diego Sheriff’s Department. "
“The San Diego Sheriff's Department embraces the collaborative efforts between local law enforcement; specifically the Sheriff's North Coastal Street Narcotic and Gang Team, and our federal partners, in ensuring that San Diego County continues to be the safest urban county in the nation,” said Sheriff’s Lieutenant James Cady.
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 Brewer, 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, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
DEFENDANTS Case Number 19cr1211-DMS
Robert Lorifice Age: 31 Encinitas, CA
Elizabeth Alexandra Landis Age: 27 Encinitas, CA
SUMMARY OF CHARGES AGAINST LORIFICE
Possession of methamphetamine with intent to distribute – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Forty years in prison and $5 million fine
Possession of heroin with intent to distribute - Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Forty years in prison and $5 million fine
AGENCY
San Diego Sheriff’s Department
Federal Bureau of Investigation
North County Gang Task Force
North Coastal Street Narcotic and Gang Team
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Pennsylvania physician admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dr. Parth Bharill, a Pittsburgh and Morgantown physician, has admitted to a drug charge, United States Attorney Bill Powell announced.
Bharill, age 61, of Pittsburgh, Pennsylvania, pled guilty to one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice.” Bharill admitted to working with the Redirections Treatment Advocates, LLC, of Morgantown, West Virginia, to write illegitimate prescriptions for suboxone. The crime occurred from November 2014 to January 2018 in Monongalia County, West Virginia.
Bharill faces up to 10 years incarceration and a fine of up to $500,000. 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 Sarah E. Wagner is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, and the Inspector General at the U.S Department of Health and Human Services investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Ohio County man admits to escapeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Garrett Michael Carrigan, of Wheeling, West Virginia, has admitted to escaping federal custody, United States Attorney Bill Powell announced.
Carrigan, age 33, pled guilty to one count of “Escape from Constructive Custody.” Carrigan, who was incarcerated for a previous child pornography case in the Northern District of West Virginia, escaped when traveling from a federal institution in California to a residential reentry center in Clarksburg in February 2019.
Carrigan faces up to 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 United States Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Nurse Who Stole Pain Medication from Her Elderly Patients at Two Area Nursing Homes Sentenced to Federal PrisonRead the Press Release
An Iowa licensed practical nurse (LPN) who stole pain medications from her elderly and vulnerable patients at two Waterloo-area nursing homes was sentenced August 29, 2019, to more than a year in federal prison.
Lacey Staveley, age 36, from Evansdale, Iowa, received the prison term after an October 15, 2018, guilty plea to one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge and one count of false statements relating to health care matters. On May 2, 2019, Staveley also pled guilty to one count of contempt of court.
In a plea agreement, Staveley admitted that, in November 2016, while employed at a nursing home in Cedar Falls, Iowa, she used her patients’ identities to get drugs. Staveley got pills containing hydrocodone by accessing her patients’ prescribed medications and diverting pain pills to herself. Staveley’s victims were long-term residents of the nursing home who had chronic pain and were on Medicare at the time. To cover up her scheme, Staveley destroyed an original medication log, placed it in a trash can, and replaced it with a fake medication log. When the nursing home discovered her thefts and asked her to provide a urine sample for testing, Staveley provided the nursing home with a fake urine sample consisting of toilet water. Because the sample obviously had flecks of toilet paper in it and no urine color, the nursing home obtained an actual urine sample from Staveley. This urine tested positive for the use of opiates, marijuana, and hydrocodone. The nursing home terminated Staveley’s employment.
In January 2018, Staveley was again working as a LPN for a different nursing home in Waterloo, Iowa. This nursing home was unaware of Staveley’s prior employment in Cedar Falls. Staveley took two oxycodone pills from a patient’s medication stocks. She also replaced the pills in the original blister pack with an anti-psychotic drug that did not provide pain relief. This patient complained of pain constantly. Staveley also admitted that she took four narcotic pills, containing Vimpat, from another nursing home patient and replaced those pills with an anti-seizure drug that had a similar shape and color. This second patient was non-verbal and could not even complain of pain. After discovering her actions, the second nursing home also terminated Staveley’s employment.
After being charged in federal court, Staveley violated the terms of her release more than 30 times. A federal judge revoked Staveley’s release after Staveley traveled to Tama County, burglarized her sister’s home, and stole her sister’s prescription drugs. Staveley’s sister suffered from serious medical conditions that required the prescriptions.
Staveley was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Staveley was sentenced to 15 months’ imprisonment. She was ordered to make more than $500 in restitution. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
This prosecution is part of the Medicare Fraud Strike Force operations, which are part of a joint initiative between the Department of Justice and Health and Human Services to focus efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
Staveley is being held in the United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2031.
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Nurse Pleads Guilty to Drug Theft and TamperingRead the Press Release
Katie Louise Boll, age 31, from Manchester, Iowa, a nurse who took hydrocodone and morphine from patients, pled guilty today in federal court in Cedar Rapids.
Boll was convicted of one count of acquiring controlled substances by misrepresentation, fraud, deception and subterfuge, and one count of tampering with a consumer product.
In a plea agreement, Boll admitted that between September 2018 and January 2019, she acquired hydrocodone prescribed for two of her patients for her own use on at least 50 occasions. Boll took the pills by swapping the hydrocodone pills for over-the-counter pills containing acetaminophen. Boll admitted that on December 24, 2018, she stole a morphine oral solution that was prescribed for a hospice patient for pain management and used mouthwash to dilute the solution to hide her theft. Boll also admitted that on December 29, 2018, she acquired controlled substances from ten additional patients by swapping their prescribed pain management medications for other substances. Boll further admitted she had been acquiring pain medications through fraud from hospitals and other facilities where she worked since October of 2016. Finally, Boll admitted her nursing license allowed her the ability to commit her crimes.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Boll remains in custody of the United States Marshal pending sentencing. Boll faces a possible maximum sentence of 14 years’ imprisonment, a $500,000 fine, and 3 years of supervised release following any imprisonment. Court file information at https://ecf.iand.uscourts.gov. The case file number is 19-CR-2044.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and investigated by Medicaid Fraud Control Unit of the Iowa Department of Inspections and Appeals and the United States Food and Drug Administration.
Northampton County Man Indicted for Illegally Possessing Guns, Homemade Bombs, and Unlawfully Operating DronesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jason Muzzicato, 43, of Bangor, Pennsylvania was charged by Superseding Indictment with possession of firearms by an unlawful user of a controlled substance, and knowingly operating an aircraft when not registered. Muzzicato was also previously charged in June with possession of firearms by a person subject to a court order restraining him from harassing, stalking and threatening an intimate partner (known as a domestic violence protective order, Protection From Abuse order or PFA), and possession of an unregistered destructive device (an improvised explosive device). These charges are pending before United States District Judge Joseph F. Leeson in Allentown, Pennsylvania.
The charges against the defendant stem from his possession of firearms and homemade bombs, while subject to the terms of a PFA order issued by the Northampton County Court of Common Pleas, and while being an unlawful user of methamphetamine. Under federal law, an individual who is subject to a PFA order is prohibited from possessing firearms. The defendant is also charged with unlawful operation of an unmanned aerial vehicle (drone). As alleged in the Superseding Indictment, the defendant possessed a DJI, Model Phantom 3, unmanned aerial vehicle (drone), seven improvised explosive devices and ten firearms, including multiple AR-15 rifles and semi-automatic pistols.
“It does not take much imagination to conjure up the enormous harm that can result from the combination of illegal firearms, explosives, and drone aircrafts,” said U.S. Attorney McSwain. “Adding methamphetamine and a disregard of court orders to the mix only serves to heighten the risk. Here the defendant’s alleged behavior violated the law and threatened public safety.”
If convicted, the defendant faces a maximum possible sentence of 33 years’ imprisonment, three years’ supervised release, a $760,000 fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Reading Field Office; the Department of Transportation, Office of Inspector General, Fort Washington Field Office; the Washington Township Police Department; the Pennsylvania State Police; and the Bethlehem Fire Department, and is being prosecuted by Assistant United States Attorney John Gallagher.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Norfolk Man Sentenced in Federal Court for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced today that on September 3, 2019, Christopher S. Harmeier, 42, of Norfolk, was sentenced in federal court in Omaha, Nebraska, for conspiracy to distribute methamphetamine. United States District Court Judge Robert F. Rossiter, Jr. sentenced Harmeier to 63 months’ imprisonment. After completing his term of imprisonment, Harmeier will begin a two-year term of supervised release.
At the beginning of 2017, law enforcement began investigating a drug trafficking organization that was transporting large amounts of methamphetamine into Lincoln, Nebraska. The methamphetamine was then redistributed to local distributors, which included Harmeier in Norfolk. When the drug trafficking organization was taken down, Harmeier was in possession of two pounds of methamphetamine and $10,000.
This case was investigated by the Drug Enforcement Administration, assisted by the Lincoln Police Department and Nebraska State Patrol.
New York Man Sentenced on Federal Drug ChargeRead the Press Release
BLUEFIELD, W.Va. -- United States Attorney Mike Stuart announced today that a Brooklyn, New York man was sentenced on a drug charge in federal court in Bluefield. Tarik Williams, 35, was sentenced to 21 months in prison for distribution of heroin.
“Another out-of-state drug dealer caught peddling heroin in our southern counties,” said United States Attorney Mike Stuart. “It means another out-of-state drug dealer is going to federal prison. I’ve sent a record number of out-of-staters to federal prison for dealing drugs in my district and my foot is full throttle on the peddle to shut down these evildoers.”
Williams pled guilty in April, admitting that on October 16, 2017, he distributed a quantity of heroin to a confidential informant in Bluefield.
The Southern Regional Drug and Violent Crimes Task Force conducted the investigation. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by Senior United States District Judge David A. Faber.
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Missouri Man Pleads Guilty to Interstate Marijuana Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Halen Steven Patrick Frazier, 33, of Lone Jack, Missouri, entered a guilty plea to conspiring to distribute and possess with intent to distribute marijuana, which was shipped from California to Kansas City, U.S. Attorney McGregor W. Scott announced.
According to court documents, in November 2018, Frazier’s co-defendants Patrick Maldonado, of Madera; Elias Zambrano Jr., of Fresno; Tan Minh Vo, of San Jose; and David Agustus McGowan, of Kansas City; and Tien Van Phan, coordinated the shipment of about 476 pounds of marijuana to Frazier in Kansas City. The first shipment was seized from Frazier during a traffic stop after Vo’s courier, Phan, made delivery to him. Another load was intercepted by Arizona troopers after stopping McGowan for a broken tail light on his truck. During a search of the trailer, troopers found a hidden compartment with 384 pounds of marijuana, 78 pounds of THC-laced edibles, and $1,629 in cash.
Frazier is scheduled to be sentenced on Dec. 9 by U.S. District Judge Dale A. Drozd. Frazier faces a maximum statutory penalty of 40 years in prison, a minimum statutory penalty of five years in prison, and a $5 million fine. 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.
The other defendants are scheduled for a status conference in federal court in Fresno on Nov. 12. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force consisting of agents from the Drug Enforcement Administration; Homeland Security Investigations; Federal Bureau of Investigation; the Sheriff’s Offices of Tulare, Kings, and Fresno Counties; Fresno Police Department; Arizona Department of Health; and Kansas City Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Mint Hill, N.C. Man Is Charged with Wire Fraud and Aggravated Identity Theft for Stealing More Than $800,000 from an Elderly VictimRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte indicted Michael Filipidis, 24, of Mint Hill, N.C., on wire fraud and aggravated identity theft charges, for stealing more than $800,000 from an elderly victim, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The criminal indictment was unsealed in federal court today, following Filipidis’s initial appearance.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office joined U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, beginning in or about December 2018, Filipidis engaged in a scheme to defraud an elderly individual, by falsely representing to the victim that Filipidis was a financial advisor with a financial institution, and that he could manage and invest the victim’s monies. Filipidis was employed by the financial institution, but worked at a call center. The indictment alleges that, based on Filipidis’s fraudulent claims, the victim provided Filipidis with access to the victim’s financial accounts, and authorized Filipidis to transfer funds to new brokerage accounts. Filipidis then fraudulently diverted funds from the victim’s new brokerage accounts, as well as from the victim’s life insurance annuities and the victim’s other bank accounts, to bank accounts under Filipdis’s control. Filipidis then used and attempted to use the victim’s funds for Filipidis’s personal benefit.
According to allegations in the indictment, in order to carry out the scheme, when Filipidis opened the new brokerage accounts he used his own phone number and email address for the contact information. He also named himself the beneficiary of one of the new brokerage accounts without the knowledge and consent of the victim. Further, Filipidis fraudulently changed the mailing address, email address, and phone number associated with the victim’s bank accounts at the financial institution to Filipidis’s personal information, so the victim stopped receiving phone calls, correspondence, and statements for his bank accounts.
The indictment alleges that between December 2018 and February 2019, Filipidis diverted more than $800,000 of the victim’s funds, intended for Filipdis’s own benefit.
“This is a case of financial exploitation perpetrated by someone who posed as a trusted financial expert. Criminals who target seniors are shameful opportunists who prey upon the vulnerable. My office will help investigate, punish and deter crimes against our seniors, and teach financial predators the hard lessons they deserve,” said U.S. Attorney Murray.
“These types of cases often result in a devastating financial loss to victims,” said Special Agent in Charge DeMatteis. “This is particularly true for seniors who are at risk of losing the financial security that they have worked a lifetime to build. The U.S. Secret Service will work tirelessly to protect our seniors from those who wish to exploit them.”
Filipidis made his initial appearance in federal court this morning, before U.S. Magistrate Judge David S. Cayer. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. The aggravated identity theft charge carries a mandatory minimum term of two years in prison, to be served consecutively to any other term of imprisonment imposed.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service’s Charlotte Field Office for leading the investigation.
Assistant United States Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative.
Milton Man Sentenced for VA Disability Benefit FraudRead the Press Release
PENSACOLA, FLORIDA – Bryan S. Gaines, 46, of Milton, Florida, was sentenced today to 3 years’ probation and ordered to repay the government more than a quarter-million dollars after pleading guilty to theft of government money and making false statements. The sentence, handed down in the U.S. District Court in Pensacola, was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Gaines received disability benefits from the Department of Veterans Affairs (VA). Between at least 2011 and 2018, he falsely reported to the VA that he was not working and was unable to work, so he could receive benefits to which he was not entitled. In fact, Gaines had been working at an automotive repair business during that time. For this fraud, Gaines was sentenced to 3 years’ probation and ordered to pay $243,243.05 in restitution to the VA.
"Stealing from the VA is tantamount to stealing from each of the brave men and women who have served our nation in times of war and times of peace. Today’s sentence should serve as a strong reminder that this kind of contemptible behavior will not be tolerated, and will in fact be prosecuted to the full extent of the law," Keefe said.
David Spilker, Special Agent in Charge, VA OIG, stated, "Gaines stole VA’s resources from eligible veterans deserving of the financial assistance earned through their military service. VA OIG is committed to safeguarding the integrity of VA’s disability benefits programs."
Assistant United States Attorney Alicia H. Forbes prosecuted the case following an investigation by the Department of Veterans Affairs-Office of the Inspector General.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Michigan man admits to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony Foy, of Detroit Michigan, has admitted to selling heroin, United States Attorney Bill Powell announced.
Foy, also known as “Duke,” age 41, pled guilty to one count of “Aiding and Abetting Distribution of Heroin.” Foy admitted to selling heroin in October 2017 in Monongalia County.
Foy faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mexican Citizen Pleads Guilty to Importing MethRead the Press Release
LAREDO, Texas – A 57-year old Mexican citizen faces up to life in prison after pleading guilty to conspiracy and importation of more than 50 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick.
On July 12, 2019, Oscar Javier Villagomez-Palacios attempted entry into the United States at the Lincoln Juarez Bridge #1 in Laredo, driving an Audi Q5. During a secondary inspection, a narcotics detection dog alerted to the presence of an odor emitting from the tires of the vehicle. Authorities conducted an X-ray examination and discovered anomalies in all four tires. Further inspection revealed non-factory compartments around the rim of the tires containing a crystalline substance, which field-tested positive for methamphetamine with a total weight of 50.46 kilograms.
The drugs have an estimated street value of $700,000.
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, Villagomez-Palacios faces up to life in prison and a possible $10 million maximum fine.
He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Mary McAuliffe is prosecuting the case.
McFarland Man Pleads Guilty to Distributing Methamphetamine and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
FRESNO, Calif. — Edgar Hernandez, 34, of McFarland, pleaded guilty today to possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hernandez, who is also known as “Dopey,” sold methamphetamine on Jan. 17, Feb. 28, and March 6, 2019, in the McFarland area. When Hernandez was arrested on March 6, he was found to be in possession of a firearm and narcotics.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the McFarland Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
Hernandez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Dec. 2. Hernandez faces a mandatory minimum five-year sentence and a maximum statutory penalty of 40 years in prison, and a $5 million fine related for the distribution of methamphetamine charge; and a mandatory consecutive five-year sentence and a maximum statutory penalty of life in prison and a $250,000 fine for 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.
Man Sentenced to Five Years in Federal Prison for Selling Meth in IowaRead the Press Release
An Iowa man who sold and possessed meth was sentenced August 29, 2019, to five years in federal prison.
Jaime William Hasselbusch, age 28, from Cedar Rapids, Iowa, received the prison term after an April 11, 2019, guilty plea to distribution of methamphetamine.
In a plea agreement, Hasselbusch admitted selling methamphetamine three times in Cedar Rapids. Hasselbusch also possessed over a half ounce of pure methamphetamine on another occasion. At sentencing, the district court enhanced Hasselbusch’s sentence after finding that he possessed brass knuckles in connection with his drug offenses.
Hasselbusch was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hasselbusch was sentenced to 60 months’ imprisonment. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Hasselbusch is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Drug Enforcement Administration (DEA) Task Force consisting of the DEA; Bureau of Alcohol, Tobacco, and Firearms, the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. Court file information at https://ecf.iand.uscourts.gov/. The case file number is 1:19-cr-00007-CJW-MAR.
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Man Sentenced for Possessing Methamphetamine for SaleRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Bounmee Thor, 33, Madison, Wisconsin, was sentenced on August 30 by U.S. District Judge William M. Conley to six years in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine. Thor pleaded guilty to the charge on June 28, 2019.
In the fall of 2018, the West Central Drug Task Force received information from the Drug Enforcement Administration in Minnesota that Thor was bringing methamphetamine from St. Paul, Minnesota to an individual in Eau Claire, Wisconsin. In October 2018, law enforcement agents obtained a warrant to place a GPS tracker device on Thor’s vehicle and confirmed that Thor was making multiple trips between St. Paul and Eau Claire.
On November 27, 2018, Thor was a passenger in a vehicle stopped by Eau Claire Police for speeding. He initially provided a false name, but eventually admitted his real identity. He was arrested on an outstanding probation warrant and searched. The search revealed 58 grams of a substance that tested positive for methamphetamine. Thor provided a post-Miranda confession confirming that the majority of methamphetamine he possessed was for re-delivery to another person whom he would not identify. At sentencing, the Court found that Thor was responsible for possessing and distributing a total of 285 grams of methamphetamine in October and November 2018. At the time, Thor was on state probation for felony drug distribution.
Despite Thor’s unwillingness to name the person he was delivering methamphetamine to on November 27, 2018, law enforcement agents were able to identify that individual as Sylvia M. Erickson, of Eau Claire. On March 13, 2019, a federal grand jury in the Western District of Wisconsin returned a seven-count indictment against Erickson, charging various drug and gun-related offenses. On August 16, 2019, Erickson pleaded guilty to distributing 50 grams or more of methamphetamine in January 2019. Her sentencing is scheduled before Judge Conley on October 29, 2019.
The charges against Thor and Erickson were the result of an investigation conducted by the West Central Drug Task Force, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Eau Claire Police Department, with assistance from the Eau Claire County District Attorney’s Office. The prosecution of both cases has been handled by Assistant U.S. Attorney Meredith P. Duchemin.
Man Charged in Deaths of Three Smuggled Chinese MigrantsRead the Press Release
Assistant U. S. Attorney Michael G. Wheat (619) 546-8437
NEWS RELEASE SUMMARY – September 3, 2019
SAN DIEGO – Neil Edwin Valera, a U.S. citizen who resides in Tijuana, was arraigned in federal court today in connection with the deaths of three Chinese migrants, including a mother and her 15-year-old son, who were found in the trunk of Valera’s BMW two days after he crossed into the United States through the San Ysidro Port of Entry in the same car.
Valera, a truck driver from El Paso, Texas, was taken into custody at the downtown bus station on Saturday. He was charged via complaint with Encouraging Aliens to Enter Resulting in Death and Bringing in Aliens without Presentation for Financial Gain.
On August 11, 2019, at 4:54 p.m., San Diego police received an emergency 911 call from a person reporting a foul odor and blood dripping from a suspicious vehicle with Texas license plates parked near the 2100 block of Jaime Avenue in San Diego.
San Diego police officers discovered a 1999 silver BMW with a Texas license plate. The officers lifted the trunk and found what initially appeared to be two deceased Asian females. Homicide detectives found an additional victim, an Asian male, pressed up against the rear wall of the trunk. A witness said the car was first noticed two days earlier and no one was seen coming or going.
Video recordings show the same car crossing into the United States from Mexico on August 9, 2019, at the San Ysidro port of entry at 3:14 p.m. According to the complaint, the driver was Valera, the registered owner of the vehicle. Valera used his Sentri card to enter into the U.S. After that day, Valera only crossed into the United States on foot, through pedestrian lanes at the San Ysidro Port of Entry.
“These tragic cases are grim reminders that attempting to cross into the United States illegally in the trunk of a car – and putting your faith, hope and future in the hands of smugglers – is extremely dangerous,” said U.S. Attorney Robert Brewer. “My office will aggressively prosecute those who smuggle others into the United States for financial gain, place vulnerable people in grave danger, and recklessly cause deaths.”
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 Brewer, 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, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
DEFENDANT Case Number 19mj3525
Neil Edwin Valera Age: 50 Tijuana
SUMMARY OF CHARGES
Encouraging Aliens to Enter Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(vi) and (B)(iv)
Maximum penalty: Life in prison or death and $250,000 fine
Bringing in Aliens without Presentation for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Mandatory minimum three years, up to 15 years in prison
AGENCY
San Diego Police Department
Homeland Security Investigations
U.S. Customs and Border Protection, Office of Field Operations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Maine Man Sentenced to 24 Months for Firearms and Assault CrimesRead the Press Release
CONCORD - William Charles Pelletier, 36, of Andover, Maine, was sentenced to 24 months in prison for unlawful transportation of a firearm in interstate commerce and simple assault, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 10, 2017, the defendant groped a passenger while aboard an airplane. On March 13, 2018, the defendant was indicted in the Northern District of Georgia for felony abusive sexual contact for that conduct. It is unlawful for a person who is under indictment for a felony to transport a firearm or ammunition in interstate commerce. On November 25, 2018, while that charge remained pending and the defendant was on pretrial release, the defendant transported two firearms from Vermont to New Hampshire.
Pelletier previously pleaded guilty on March 26, 2019, to charges related to both matters. He pleaded guilty to simple assault to resolve the Georgia matter.
The firearms have been forfeited to the United States.
“The defendant’s conduct jeopardized public safety in multiple ways,” said U.S. Attorney Murray. “First, he assaulted a fellow passenger on an airplane. Then, although on pretrial release with charges pending, he illegally transported firearms across state lines. Mr. Pelletier’s actions clearly merited the prison sentence imposed by the judge today.”
“Pelletier believed he could sexually assault a fellow passenger on a flight to Atlanta. Behavior like this will not be tolerated by the FBI,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence will hopefully send a message that this conduct is unacceptable, and anyone who chooses to act in this manner will be prosecuted. Citizens deserve to feel protected from sexual assault and should not have to fear this happening to them while traveling.”
This matter was investigated by the U.S. Border Patrol, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Litchfield Man Pleads Guilty to Fentanyl Trafficking ChargeRead the Press Release
CONCORD - William McKnight, 48, of Litchfield, pleaded guilty in federal court to distributing fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from November 7, 2018 to November 19, 2018, members the Nashua Police Department Problem Oriented Policing Unit working in conjunction with members of the Nashua Police Department Narcotics Intelligence Division investigated McKnight for distributing fentanyl in Nashua. They arranged for a cooperating individual to purchase fentanyl from McKnight on three occasions.
On January 16, 2019, Nashua Police Department searched McKnight’s apartment and found drug paraphernalia, including a scale, needles, plastic bags and cotton swabs.
McKnight is scheduled to be sentenced on December 10, 2019.
“The trafficking of fentanyl has had a devastating impact throughout New Hampshire,” said U.S. Attorney Murray. “Nashua is located in close proximity to the regional distribution center for this dangerous drug and along with other Hillsborough County communities, has been especially hard hit. Through Operation S.O.S., we are working with Nashua Police to send a message to fentanyl dealers that their dangerous and illegal activities will not be tolerated in New Hampshire.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Lincoln Man Sentenced on Methamphetamine ChargeRead the Press Release
United States Attorney Joe Kelly announced that Sabas Rodriguez-Cisneros, 47, of Lincoln, Nebraska, was sentenced today by Chief United States District Judge John M. Gerrard to 20 years and 10 months (250 months) for conspiracy to distribute and possess with intent to distribute methamphetamine. Following the prison term, Rodriguez-Cisneros will serve five years on supervised release. He was convicted of the offense by a federal jury in May of 2019.
In early March, 2018, a DHL package was intercepted by United States Customs and Border Control agents at the Cincinnati, Ohio, port of entry. The package was addressed to Rodriguez-Cisneros’s girlfriend in Lincoln, Nebraska. Customs agents opened the package and found methamphetamine and pills. Homeland Security Investigations agents sent the package to their Omaha office, and Omaha HSI agents delivered it to the Lincoln/Lancaster County Drug Task Force. On March 5, 2018, an undercover Lincoln Police officer delivered the package to Rodriguez-Cisneros’s girlfriend in Lincoln. She was arrested. The Nebraska State Patrol Crime Laboratory found the package contained 400 grams of a substance containing methamphetamine, and purity analysis showed at least 370 grams of actual (pure) methamphetamine. There were also 197 fentanyl tablets in the package.
Testimony and evidence presented at trial established that between October of 2016 and March 5, 2018, Rodriguez-Cisneros was involved in selling methamphetamine in the Lincoln, Dwight, and Crete, Nebraska areas.
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Nebraska State Patrol, Homeland Security Investigations, and U.S. Customs and Border Patrol.
Levy County Man Indicted for "Sextortion" of Washington Teen and Receipt of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – United States Attorney Lawrence Keefe for the Northern District of Florida today announced the indictment and arraignment of Dustin Lee Norman, 23, of Trenton, Florida, after a federal grand jury in Gainesville returned an indictment charging him with Sexual Exploitation of a Child, Receiving Child Pornography, Possessing Child Pornography, and Sending Interstate Transmissions of Extortionate Communications.
The indictment alleges that between September 19, 2018, and October 19, 2018, Norman knowingly and intentionally used, persuaded, induced, or enticed a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. The indictment also alleges that during the same time period, Norman knowingly used a cell phone and the internet to transmit communications containing threats to injure the reputation of the minor female, who resided in the state of Washington, intending to extort images and videos of the minor female in various stages of undress, while naked, and while engaging in sexually explicit conduct.
Norman faces the following penalties:
• Sexual exploitation of a child: a maximum of 30 years in prison and a 15-year mandatory minimum in prison;
• Receipt of child pornography: a maximum of 20 years in prison and a 5-year mandatory minimum in prison;
• Possession of child pornography: a maximum of 10 years in prison;
• Sending interstate transmissions of extortionate communications: a maximum of 2 years in prison.
This case resulted from an investigation by the Federal Bureau of Investigation and the Levy County Sheriff’s Office. Assistant United States Attorney Justin M. Keen is prosecuting the case.
Trial is scheduled for October 29, 2019, at 8:30 a.m. at the United States Courthouse in Gainesville.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Leader of Bank Robbery Crew Gets Nearly Two Decades in PrisonRead the Press Release
HOUSTON – A 31-year-old Houston resident has been handed a significant sentence for leading a crew of bank robbers responsible for multiple crimes in the local area, announced U.S. Attorney Ryan K. Patrick.
Javier Flores, 31, originally from Chicago, Illinois, but a long-time Houston resident, pleaded guilty March 26, 2019, to two counts of aiding and abetting aggravated bank robbery and one count of aiding and abetting the brandishing a firearm during a crime of violence.
Today, U.S. District Judge Andrew Hanen imposed a total of 235 months in federal prison - 151 months for the robberies in addition to another 84 months for brandishing a firearm during a crime of violence which must be served consecutively. The sentence will be immediately followed by three years of supervised release.
Flores was found responsible for leading a crew that robbed the Prosperity Bank on Westheimer Road June 2, 2017, and the BBVA Compass Bank on Fry Road in Katy, June 21, 2017. Perry Fluellen, 28 and Brandon Carter, 29, both of Houston, and Steve Malala, 36, of Kenya, Africa, were also involved in these robberies and have also pleaded guilty. They are pending sentencing at a later date.
The group conducted or attempted to conduct at least a dozen bank robberies over the course of six months in 2017 at various banks on the west side of Houston. Flores acted as the leader of the group and would select and scout the banks prior to the robberies. On the day of the robberies, he provided firearms and transportation and acted as a lookout, while Fluellen and Carter conducted the robbery, holding the employees at gunpoint. Often times, the crew would remain on an open cellular phone line so Flores could instruct them when to enter and exit the bank.
On June 21, 2017, following the BBVA Compass Bank robbery, law enforcement used surveillance and a GPS tracker attached to bait money to stop and arrest the suspects. After a short car and foot chase, the crew was taken into custody. At that time, Fluellen was found in possession of money and cash straps stolen from the bank, as well as a firearm.
All have been and will remain in custody.
The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education.
The FBI conducted the investigation in conjunction with the Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorneys Joe Porto and Heather Winter are prosecuting the case.
Kentucky Man Pleads Guilty to Stealing Mail Parcels Containing Medication Intended for VeteransRead the Press Release
HUNTINGTON, W.Va. – An Ashland, Kentucky man pled guilty to illegally stealing and rifling through mail parcels intended for veterans, announced United States Attorney Mike Stuart. Michael Lawrence Collins, 48, was a truck driver for a company who contracted with the United States Postal Service to transport mail between Post Office facilities. Collins gained access to the mail by virtue of his employment as a contract truck driver.
“A despicable crime – stealing critical medications intended for those who served our Nation,” said United States Attorney Mike Stuart. “Collins was stealing pain medication for his own personal use that was intended for veterans in the Huntington area. Collins was supposed to deliver the mail, not steal the mail. I appreciate the work of the United States Postal Inspection Service to catch Collins so that veterans in the Huntington area will once again get their much needed medications.”
An investigation was initiated in 2018 by agents of the United States Postal Inspection Service after receiving complaints that prescription medication packages sent from the Veterans Affairs Medical Center (VAMC) in Huntington were not received or the packages had been ripped open. Postal inspectors then identified the truck route in which the suspicious activity was occurring and conducted surveillance. Collins was identified as the suspect. On December 18, 2018, Postal Inspectors placed test packages into the mail stream on Collins’ mail route. Postal inspectors approached Collins on the dock of the Huntington Post Office, and Collins was found to have one of the test packages in his jacket. Collins confessed that he had been stealing and tearing open the medication parcels.
At the September 3, 2019 plea hearing, Collins admitted that on approximately eighteen occasions, from August 2018 through December 2018, he opened and removed the contents of sealed U.S. mail parcels that were labeled as being sent from the VAMC to people in the Huntington area. Collins admitted that he was looking for pain pills, such as hydrocodone, for his personal use.
Collins faces up to five years in prison when sentenced on December 9, 2019. The United States Postal Inspection Service conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing.
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KCK Man Sentenced for Robberies at Bank, Pharmacy and Retail StoreRead the Press Release
KANSAS CITY, KAN. – A Kansas man was sentenced today to 77 months in federal prison for robbing a bank and a pharmacy and attempting to rob a retail store, U.S. Attorney Stephen McAllister said.
Ralph McGinnis, 63, Kansas City, Kan., pleaded guilty to two counts of robbery and one count of attempted robbery.
In his plea, McGinnis admitted he robbed the Bank of Labor at 756 Minnesota in Kansas City, Kan. He told a bank clerk, “don’t say anything,” and demanded money from a cash drawer. When he fled from the bank with cash, a security guard followed him as far as an apartment building in the 700 block of Nebraska Avenue where McGinnis lived.
The day before the bank robbery, McGinnis was carrying what appeared to be a rifle when he attempted to rob a Family Dollar at 1200 N. 7th Street. After the clerk ducked behind the counter, McGinnis left with no money.
On the same day as the attempted robbery, McGinnis robbed the CVS Pharmacy at 950 Minnesota. He told a clerk he had a gun and would use it if he didn’t get what he wanted. He fled with cash.
McAllister commended the FBI, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Trent Krug for their work on the case.
Justice Department Settles Immigration-Related Discrimination Claim Against Security CompanyRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with U.S. Security Associates Inc. (USSA), which was recently acquired by Allied Universal Holdco LLC (Allied Universal) – the largest private security firm in the United States. Prior to its acquisition, USSA provided security services to hospitals, schools, financial institutions, government facilities, events, and other businesses. The settlement resolves a claim that USSA’s Falls Church, Virginia office violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by discriminating against work-authorized non-U.S. citizens when verifying their work authorization. The settlement applies to USSA and Allied Universal.
“The Department of Justice is committed to ensuring that employers do not unlawfully discriminate because of citizenship status or national origin when requesting documents to verify employees’ work authorization,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We are pleased that USSA and its successor, Allied Universal, have agreed to resolve this matter with the Division and ensure that their Falls Church office complies with the anti-discrimination provision of the INA.”
The Department’s independent investigation concluded that, from at least Jan. 1, 2015, to July 30, 2018, USSA’s Falls Church, Virginia, office required lawful permanent residents to provide specific documentation to prove their work authorization, while not imposing a similar requirement on U.S. citizens. Federal law allows all work-authorized individuals, regardless of citizenship status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The anti-discrimination provision of the INA prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship status or national origin.
Under the settlement, USSA or its successor will pay $194,000 in civil penalties to the United States and be subject to departmental monitoring and reporting requirements. Additionally, certain employees will be required to attend training on the requirements of the INA’s anti-discrimination provision.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Jury Convicts Armed Robbery Getaway Driver/LookoutRead the Press Release
Tampa, Florida – A federal jury has found Dajor Marquis Atkins (27, Tampa) guilty of four offenses related to a takeover-style armed robbery. The jury found Atkins guilty of one count of conspiring to interfere with interstate commerce by robbery, one count of interference with interstate commerce by robbery, one count of brandishing a firearm during a crime of violence, and one count of possessing a firearm and ammunition as a convicted felon. Atkins faces a minimum mandatory penalty of seven years, and up to life, in federal prison. His sentencing hearing is scheduled for December 4, 2019.
According to evidence presented during the five-day trial, on June 2, 2018, Atkins served as the lookout and getaway driver while his co-defendant, Riley Harris, entered the AT&T store located at 21561 U.S. Highway 19 North in Clearwater. Harris held the employees at gunpoint, forced them to open the inventory storage locker and cash register, bound the employees’ hands and feet with packing tape, and stole cash and merchandise worth more than $47,000. Harris then fled the store in the waiting vehicle as Atkins drove the pair from the scene. Law enforcement officers tracked the getaway vehicle as it fled the scene and identified Harris and Atkins as the robbery team.
This was the fourth in a series of similar takeover-style armed robberies of AT&T stores committed by Harris between December 2017 and June 2018. Atkins only participated in the fourth and final armed robbery.
Harris previously pleaded guilty. His sentencing hearing is scheduled for September 6, 2019.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Clearwater Police Department, the Pinellas County Sheriff’s Office, and the Tampa Police Department. 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.
Jose Inez Garcia-Zarate Remains Under Federal Firearm Charges in the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – On December 5, 2017, a federal grand jury indicted Jose Inez Garcia-Zarate for being a felon in possession of a firearm and ammunition, and for being an illegally present alien in possession of a firearm and ammunition.
According to the indictment, on July 1, 2015, Garcia-Zarate, a citizen of Mexico who reportedly is 48 years old, possessed a semi-automatic pistol and multiple rounds of ammunition in violation of 18 U.S.C. § 922(g)(1) (felon in possession of a firearm) and 18 U.S.C. § 922(g)(5) (unlawfully present alien in possession of a firearm). As the government alleged in a public filing in this case, on July 1, 2015, Garcia-Zarate was on Pier 14 on the Embarcadero in San Francisco. Also on the pier were 31-year old Kathryn Steinle, her father James Steinle, and Frances “Kaye” Williams, a family friend. The three were sightseeing. At approximately 6:30 p.m., Garcia-Zarate possessed and fired a semi-automatic pistol. The bullet fired by Garcia-Zarate hit Kathryn Steinle in the back and killed her. At the time of the shooting, Garcia-Zarate was a felon, an illegal alien, and was on federal supervised release from a prior conviction in 2011 in the Western District of Texas.
On November 30, 2017, a jury in San Francisco county convicted Garcia-Zarate of being a felon in possession of a firearm, in violation of California state law. On August 30, 2019, the California state Courts of Appeal overturned Garcia-Zarate’s state conviction based on the failure of the state trial court to instruct the jury on the state affirmative defense of momentary possession.
“The state-court ruling has no legal effect on the federal prosecution, which will continue,” stated United States Attorney David Anderson. “A repeatedly deported, previously convicted felon has no right to possess a firearm under federal law, even if California extends him sanctuary.”
An indictment merely alleges that a crime has been committed and Garcia-Zarate, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. Garcia-Zarate currently is in federal custody awaiting trial on these charges. If convicted of either violation of 18 U.S.C. § 922(g), Garcia-Zarate faces a maximum statutory penalty of 10 years in prison. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Huntington Man Pleads Guilty to Six Counts of Illegally Accessing Veterans' Medical RecordsRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty to illegally accessing the medical records of six veterans, announced United States Attorney Mike Stuart. Jeffrey Miller, 39, an employee of the Veterans Benefits Administration in Huntington, pled guilty to six counts of unauthorized access of a computer.
“This is a very serious matter. Medical records are protected information and the expectation and right of privacy is paramount,” said United States Attorney Mike Stuart. “Federal law requires employees of the Veterans Benefits Administration to protect the medical records of our veterans. Anyone that improperly accesses, uses or exploits veterans’ medical records will be held accountable.”
Miller admitted that he illegally accessed the medical records of six veterans between January and May of 2018. Miller further admitted that he took a picture of the medical records of former West Virginia State Senator Richard Ojeda, and then sent the picture to an acquaintance.
Miller faces up to one year in prison on each of the six counts of fraud in connection with computers when he is sentenced on December 9, 2019.
The Department of Veterans Affairs – Officer of the Inspector General and the FBI conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stefan Hasselblad is handling the prosecution.
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Home health care owner pleads guilty to defrauding Georgia MedicaidRead the Press Release
ATLANTA - Diandra Bankhead, the owner and operator of Elite Homecare (“Elite”), an Atlanta-based home healthcare provider, has pleaded guilty to defrauding Medicaid by submitting thousands of fraudulent claims for services that were never provided to medically fragile children under the Georgia Pediatric Program (“GAPP”).
“Bankhead exploited Medicaid-eligible children who suffer from significant physical and cognitive disabilities,” said U.S. Attorney Byung J. “BJay” Pak. “Her fraud included billing for services never performed and for children never seen. Georgians dependent on these types of services deserve our best, not to be used by someone who is looking to enrich themselves at their expense.”
“The greed of this defendant deprived health care to many at risk children in Atlanta, focusing on profit rather than the care of our kids,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not stand by and allow those who commit fraud to take advantage of programs that are intended to support our state's most vulnerable citizens.”
“This plea is another example of our strong commitment to aggressively pursue health care providers who recklessly bill the Medicaid program,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG, our State law enforcement partners and the U.S. Attorney’s Office will continue to protect government health programs and those they serve.”
“This is one of many cases we have seen lately that involves someone undermining the integrity of the Medicaid program and neglecting their responsibility to support children who may desperately need these services. This trend is unacceptable, and we will continue to work with our federal partners to stop it in its tracks and protect this vulnerable population,” said Georgia Attorney General Chris Carr.
According to U.S. Attorney Pak, the charges and other information presented in court: GAPP is an in-home nursing program designed to serve Medicaid-eligible children under the age of 21 years of age based on a medical necessity. The program offers in-home skilled nursing services for medically fragile children who require nursing services, and personal care services, including feeding, bathing, dressing, personal hygiene, preparation of meal, and assisting with the mobility and ambulation of members.
Medically fragile children who are eligible for services under GAPP typically suffer from significant physical and cognitive disabilities, including autism, blindness, cerebral palsy, Down syndrome, epileptic seizures, and/or paralysis.
Bankhead's scheme began in approximately September 2015 and continued until April 2018. Over that time, Elite submitted more than 5,400 claims to Georgia Medicaid—the vast majority of which were fraudulent—and for which Elite received $1.2 million. Bankhead defrauded Medicaid in a number of ways, including:
- Submitting fraudulent credentialing information to the State of Georgia Department of Community Health in order to become a certified GAPP provider, including falsely representing that a registered nurse—without her knowledge or authorization—served as Elite’s RN Supervisor.
- Falsely representing to Medicaid that a registered nurse (“RN”) or RN Supervisor had conducted the initial evaluation of putative GAPP members as required by applicable regulations.
- Submitting fraudulent claims for in-home nursing services allegedly provided to families who had not retained Elite to provide any services.
- Submitting fraudulent claims in which Elite employees allegedly provided more than 24 hours of services in a given day.
- Submitting fraudulent claims where Elite employees were impossibly providing services to multiple children simultaneously.
- Submitting fraudulent claims in the names of multiple individuals, including RNs, who did not provide the services in question, and did know that their identities and credentials were being used.
- Submitting fraudulent claims that had been “upcoded” – that is claims which fraudulently increased the amount Medicaid paid Elite – by materially misrepresenting the level of care provided and the level of licensing for the individual allegedly providing the services. For example, Elite submitted fraudulent claims to Medicaid purporting that an RN (billed at $40/hour) had rendered the services when in fact an licensed professional nurse (billed at $30/hour) and/or personal care service provider (billed at $20/hour) had actually done so.
- Preparing fraudulent supporting documentation for the in-home nursing services that were never provided, including fraudulent patient care charts.
Bankhead pleaded guilty to one count of health care fraud. Sentencing for Diandra Bankhead, 42, of Atlanta, Georgia, is scheduled for January 28, 2020 at 10:00 a.m., before Chief U.S. District Judge Thomas W. Thrash.
This case is being investigated by the Department of Health and Human Services, Georgia Medicaid Fraud Control Unit, and Federal Bureau of Investigation.
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Submitting fraudulent credentialing information to the State of Georgia Department of Community Health in order to become a certified GAPP provider, including falsely representing that a registered nurse—without her knowledge or authorization—served as Elite’s RN Supervisor.
Hamden Man Pleads Guilty to Federal Firearm and Narcotics ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CLEMENTE HOLMES, also known as “Cavali” and “Vali,” 30, of Hamden, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to firearm and narcotics offenses.
According to court documents and statements made in court, in January 2019, law enforcement made two controlled purchases of narcotics from Holmes at his Goodrich Street residence. On January 22, 2019, a court-authorized search of the residence revealed distribution quantities of fentanyl, heroin and crack cocaine, as well as a loaded 9mm handgun. Holmes was arrested on state charges on that date.
In February 2019, investigators made a controlled purchase of crack cocaine from Holmes, who had posted bond after his state arrest.
Holmes was arrested on a federal criminal complaint on February 26, 2019. At the time of his arrest, a search of his residence revealed more heroin packaged for distribution. He has been detained since his arrest.
In 2012, Holmes was convicted in state court of sale of narcotics and possession pistol without a permit.
Holmes pleaded guilty to one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years; one count of possession of heroin, fentanyl and cocaine base (“crack”) with intent to distribute, an offense that carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, an offense that carries maximum term of life imprisonment.
A sentencing date is not scheduled.
This matter has been investigated by the Federal Bureau of Investigation’s New Haven Safe Streets Gang Task Force and the East Haven, Hamden and New Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.