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27 September 2019
Former Dayton city commissioner pleads guiltyRead the Press Release
DAYTON – A former Dayton City Commissioner entered a guilty plea in U.S. District Court today for accepting a thing of value in connection with a local government.
Williams served as an elected commissioner of the City of Dayton from 2001 until 2018. In 2015, Williams accepted a construction project at his personal home by an individual for a greatly reduced price in exchange for influencing the awarding of city contracts to that same individual.
The individual’s business was subsequently awarded at least $150,000 in contracts with both the City of Dayton and CityWide Development Corporation, a non-profit organization that functioned as a development and financing arm of the City of Dayton. CityWide routinely awarded thousands of dollars in contracts to private companies for the demolition of homes in Dayton.
Williams accepted more than $35,000 in free benefits from the individual, including cash payments and the construction of a patio at his home.
In an attempt to conceal the fraud, Williams demanded the individual create a fake invoice, falsely reflecting that Williams had personally paid the individual for the home improvement project.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced today’s plea entered before U.S. District Judge Thomas M. Rose.
Williams is scheduled to be sentenced on January 29.
Others charged include RoShawn Winburn, Clayton Luckie and Brian Higgins. Luckie pleaded guilty in July to mail fraud.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and the Ohio Auditor of State’s Office, as well as assistant United States Attorneys Brent Tabacchi, SaMee Harden and Dominick Gerace, who are representing the United States in this case.
If you have any information related to the schemes alleged above, please contact the FBI’s Dayton Public Corruption Tip Line at 937-291-5222.
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Former Carpenters’ Benefit Plan Administrator Indicted on Fraud ChargesRead the Press Release
NEWARK, N.J. – The former administrative manager of the United Brotherhood of Carpenters (Carpenters Union) New Jersey/New York benefit funds was indicted today by a federal grand jury for defrauding the funds of more than $1.5 million, U.S. Attorney Craig Carpenito announced.
George R. Laufenberg, 69, of Harvey Cedars, New Jersey, is charged in a five-count indictment with embezzlement of pension funds, embezzlement of deferred compensation payments, embezzlement of excess annuity fund contributions, conspiracy to embezzle with a “low-show” employee, and making a false statement in an annual financial report. He will be arraigned before a U.S. District Court Judge at a later date.According to the indictment:
Laufenberg is the former administrative manager of the New Jersey Carpenter’s Pension, Annuity, Health and Training/Apprenticeship Funds. He allegedly stole from the benefit plans by using his authority to self-deal and benefit himself with unapproved and improper distributions from pension and annuity funds. He also filed a false U.S. Department of Labor Form 5500 in which he denied he was improperly diverting annuity contributions into his paycheck.
Laufenberg, who earned an annual salary of approximately $300,000, is charged with using his authority to unilaterally grant himself a $120,000 pension and $180,000 in annual deferred compensation, without retiring, or without giving notice or receiving approval from the funds’ board of trustees. He is also charged with diverting into his paycheck monthly annuity contributions, contrary to IRS regulations. Laufenberg also used his authority to grant a personal friend, who was a low-show employee at the funds, a full salary with a pension, annuity contributions and full health care coverage.
The maximum penalty for each count is five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited the investigators of the Department of Labor (DOL), Employee Benefit Security Administration (EBSA), under the supervision of Darren Cohen, Regional Director; special agents of the DOL Office of the Inspector General (OIG) under the supervision of Special Agent in Charge Michael Mikulka; and the agents of the Port Authority of New York/New Jersey, under the supervision of Inspector General Michael Nestor, with the investigation leading to today’s indictment.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Offices’ Organized Crime/Gangs Unit.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Peter W. Till Esq., Springfield Township, New Jersey
Food Truck Owner Sentenced for Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Paul Carroll, of Rochester, NY, who was convicted of conspiracy to defraud an agency of the United States in connection with food stamps, was sentenced by U.S. District Judge David G. Larimer to serve two years’ probation, to include eight months home confinement. The defendant was also ordered to pay restitution totaling $82,066.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that the defendant Carroll conspired with co-conspirator David Sobczyk and others to commit food stamp fraud.
Congress established the Federal Food Stamp Program in 1977 to alleviate hunger and malnutrition. In 2008, the program was renamed the Supplemental Nutrition Assistance Program (SNAP program), which uses federal tax dollars to subsidize low-income households, helping low-income individuals and families to maintain more nutritious diets by increasing the food purchasing power of eligible households. The USDA Food and Nutrition Service (FNS) administers the SNAP program through retail food stores or food truck delivery business (FTDB) that have been approved for participation in the SNAP program to sell food in exchange for the SNAP program benefits.
A business that accepts the SNAP program benefits must do so only in connection with retail sales of eligible food products, and must be authorized by FNS as a retail food store or FTDB. According to USDA regulations, most edible items, except for prepared foods, vitamins and medicines, are eligible for purchase with food stamp benefits. Items such as beer, cigarettes, paper goods, soaps, and detergents are ineligible for purchase with food stamp benefits. It is also against the SNAP program regulations to allow customers to pay for merchandise on credit with EBT SNAP/food stamps. Federal law specifies that a purchase made utilizing the SNAP program benefits must be tax exempt. Food stamp benefits may not lawfully be exchanged for cash.
In 1991, Carroll applied to FNS and received authorization to operate a business, Carroll Services, which received the SNAP program benefits. Carroll Services operated a FTDB. Contrary to the regulations, procedures, and policies governing the administration of the SNAP program benefits, the defendant operated his FTDB as a “for credit” operation, whereby he allowed beneficiaries to purchase items from him “on credit,” obtained from the beneficiaries their identifying information, including EBT card number, PIN number, and social security number, and thereafter caused funds to be deducted from the beneficiaries’ SNAP benefits accounts on the date that the benefits were available on the beneficiaries’ EBT cards.
In November 2015, David Sobczyk also applied to FNS and received authorization to operate a business, Sobczyk Services, which received the SNAP program benefits. Sobczyk Services operated a FTDB. Sobczyk also operated his FTDB as a “for credit” operation. Carroll provided Sobczyk with the vehicle to use for his FTDB, and Sobczyk made monthly payments to Carroll for the vehicle, who knew that the FTDB was being operated as a “for credit” operation contrary to program policies.
David Sobczyk was previously convicted and sentenced to serve two years probation and ordered to pay restitution totaling $82,066. He also forfeited $33,991.41.
The sentencing is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in Charge Bethanne M. Dinkins, and the New York State Office of Inspector General, under the direction of Inspector General Letizia Tagliafierro.
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Foley Man Sentenced to 30 Years for Child Pornography OffensesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Taras Hodivsky, Jr., 40, of Foley, Alabama, was sentenced today in federal court on charges of advertising child pornography and possession of child pornography. Hodivsky pled guilty to the charges in June of 2019.
According to court documents filed in connection with his guilty plea, Hodivsky was being investigated by Summerdale Police Department in response to allegations that he had sexually abused a seven year old girl. During the course of that investigation, Summerdale police officers seized Hodivsky’s cell phone. A forensic exam of the phone was performed by personnel of the Foley Police Department. That exam revealed approximately 2,430 still images and 13 video files which depicted the sexual exploitation of children. A further exam of the phone was completed by the FBI, which revealed that Hodivsky used an encrypted app to exchange images of child pornography with other users. Federal agents seized a second cell phone from Hodivsky and discovered an additional 802 images of child pornography on that phone. These images included images of prepubescent children engaged in sex acts and children engaged in sadistic or masochistic conduct.
Chief United States District Court Judge Kristi DuBose imposed a sentence of 360 months imprisonment. The judge ordered that Hodivsky undergo mental health treatment while incarcerated. The judge also ordered Hodivsky to serve a fifteen-year term of supervised release beginning upon his discharge from prison. Upon his release from prison, Hodivsky will be required to register as a sex offender. Chief Judge DuBose ordered that Hodivsky pay $164,415 in restitution and $12,200 in special assessments.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc
The case was investigated by the Summerdale Police Department, the Foley Police Department, and the FBI. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorneys Maria Murphy and Kacey Chappelear.
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
WASHINGTON – A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approx. 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of 1 billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation," said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today's law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
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In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (“Lotus Health”), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia, where Elmore was CEO. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Ga., for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, MD, 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories, LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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19-1039
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges Against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approximately 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of one billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“The defendants are alleged to have capitalized on the fears of elderly Americans in order to induce them to sign up for unnecessary or non-existent cancer screening tests,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “The genetic testing fraud schemes put personal greed above the preservation of the American health care system. The U.S. Attorney’s Office in South Florida, alongside our law enforcement and USAO partners, remains committed to protecting taxpayer dollars and the Medicare program from abuse.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation," said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today's law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
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In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (Lotus Health), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Georgia, for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, M.D., 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
Sekhar Rao, M.D., 48 of Austin, Texas, and Vinay Parameswara, M.D., 46, of Austin, Texas, were charged for their role in alleged referrals of TRICARE beneficiaries for medically unnecessary “cancer screening” genetic tests and toxicology tests. Rao and Parameswara did not examine or speak with the beneficiaries they signed testing orders for and there was no physician-patient relationship between the physicians and these beneficiaries. Tests were repeated many times and beneficiaries often did not receive the results of their tests. From in or about May 2014 and until in or about June 2016, Rao, Parameswara and others caused the submission of over $36 million in false and fraudulent claims to TRICARE. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana, were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
In addition, as part of the Northeast Regional Takedown announced on Sept. 26, the District of New Jersey announced charges against the following:
Matthew S. Ellis, MD, 53, of Gainesville, Florida; Edward B. Kostishion, 59, of Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania; and Jeffrey Tamulski, 46, of Tampa, Florida. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health, Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey, and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 million in bribes. The case is being prosecuted by Assistant U.S. Attorney Bernard Cooney of the District of New Jersey.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges Against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approximately 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“The defendants are alleged to have capitalized on the fears of elderly Americans in order to induce them to sign up for unnecessary or non-existent cancer screening tests,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “The genetic testing fraud schemes put personal greed above the preservation of the American health care system. The U.S. Attorney’s Office in South Florida, alongside our law enforcement and USAO partners, remains committed to protecting taxpayer dollars and the Medicare program from abuse.”
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of one billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation,” said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today’s law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
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In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (Lotus Health), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia, where Elmore was CEO. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Georgia, for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, MD, 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana, were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Federal Inmate Charged with Possession of DrugsRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tavon Johnson, age 29, an inmate at the Federal Correctional Institution, Allenwood (FCI Allenwood), was indicted on September 26, 2019, for possession of a controlled substance.
According to United States Attorney David J. Freed, the indictment alleges that Johnson was found on May 21, 2018 in possession of 120 strips of suboxone, a prescription opioid narcotic, hidden on his person after receiving a visit.
The charges stem from an investigation by officers at FCI Allenwood and agents of the Federal Bureau of Investigation. Assistant United States Attorney Geoffrey MacArthur is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Johnson is facing a maximum of twenty years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Fayette County Man Sentenced to 33 Months for Firearms Straw PurchasesRead the Press Release
LEXINGTON, Ky. – Ronald Mark Harrison, 49, of Lexington, Kentucky, was sentenced to 33 months in federal prison on Friday, by United States District Judge Danny C. Reeves, for acquiring firearms through the making of false statements.
In June 2017 and February 2018, Harrison purchased several firearms from Bud’s Gun Shop in Lexington. During the purchases, Harrison provided false information to the store claiming to be the true purchaser of these firearms when, in fact, he was obtaining the firearms on behalf of a co-defendant, Lawrence Westbrook III, a convicted felon. These types of transactions are commonly known as “straw purchases” and are prohibited under federal law. Harrison previously pled guilty to two counts involving the acquisition of these firearms. As part of his plea, Harrison further admitted to obtaining other firearms and later trading them to Westbrook in exchange for narcotics.
On August 23, Westbrook pled guilty to charges involving the possession of methamphetamine with the intent to distribute, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Westbrook is set to be sentenced on December 13. He faces up to life in prison and a maximum fine of $5 million. However, any sentence will be imposed by the Court after consideration of the United States Sentencing Guidelines and applicable federal sentencing statutes.
Under federal law, Harrison must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of 3 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Stuart L. Lowery, Special Agent in Charge, ATF, Louisville Field Division, and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly made the announcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Extradited Israeli Fugitive Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. — Yaniv Gohar, 36, formerly of Berkeley, pleaded guilty today to conducting an illegal gambling business, conspiracy to commit money laundering, and failure to appear, U.S. Attorney McGregor W. Scott announced.
According to court documents, Gohar created and led an organization that installed and maintained video slot machines at businesses open to the public across Northern California. Gohar then created a system by which he could launder the proceeds of his lucrative gambling business, involving shell companies and paying cash to employees of a co-defendant’s business in exchange for money transfers from that co-defendant. In total, Gohar laundered at least $492,475 through his co-defendant’s business from Jan. 2015 through Dec. 2017. Gohar also laundered his gambling proceeds by acquiring a boat and real estate in the San Francisco Bay Area.
Court documents also detail Gohar’s escape from the United States by charter jet through Mexico, France, and Israel. Gohar was first arrested on Dec. 8, 2017, in connection with his initial charges and released two weeks later on bond over the government’s objection. Four days later, he violated the terms of his release by failing to stop after allegedly crashing his Porsche Panamera into a parked car in Berkeley. He was cited by Berkeley police for reckless driving. On Jan. 3, 2018, he failed to appear for the violation hearing, and he remained at large for more than a year. In Sept. 2018, a superseding indictment charged Gohar with failure to appear and other offenses. Gohar was arrested and extradited from Israel in July 2019.
Finally, court documents detail threats that Gohar made to at least two witnesses in the investigation, including threatening to break the legs of a confidential source.
This case is the product of an investigation by the Federal Bureau of Investigation and California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case. Significant assistance was provided by the Department of Justice’s Office of International Affairs and Israeli authorities.Yaniv Gohar’s brother and co-defendant, Orel Gohar, 28, also fled the United States in December 2017 and remains at large. Anyone with information about his whereabouts should call the Federal Bureau of Investigation at (916) 746-7000.
Co-defendants Eran Buhbut, 34, of Oakland, pleaded guilty in August to conducting an illegal gambling business and awaits sentencing. Co-defendants May Levy, 28, of Walnut Creek, Atir Dadon, 34, of Sherman Oaks, Bar Shani, 27, of San Francisco, and Adam Atari, 35, of Sherman Oaks, have pleaded guilty and have been sentenced. Dadon and Shani are currently serving their sentences.
Co-defendant Raz Razla, 48, of Sherman Oaks, is charged with making false statements to the grand jury. The charge against Razla is only an allegation; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Gohar is scheduled to be sentenced by Judge Garland E. Burrell Jr. on Dec. 13, 2019. Gohar faces a maximum statutory penalty of five years in prison for the illegal gambling offense, 20 years in prison for the money laundering conspiracy, and five years in prison for failure to appear (to be served consecutively to the other sentences imposed). 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.
Defendant sentenced for a second time for using counterfeit checks to buy United States Postage StampsRead the Press Release
ATLANTA - John Lamb, a/k/a Johnny Lamb, has been sentenced to federal prison for a second time for again using counterfeit checks for purchases from the United States Postal Service (USPS).
“Lamb proves that some people never learn,” said U.S. Attorney Byung J. “BJay” Pak. “He once again used counterfeit checks to purchase postal products and again will serve time in a federal prison. If you seek to steal from our public institutions, and ultimately the American people, you will be prosecuted and sent to prison every time.”
“This career offender stole from the Postal Service for his own financial gain and the sentence sends a message to others to deter from these types of illegal acts,” said David M. McGinnis, Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to investigate and apprehend individuals that engage in criminal activities against the nation's mail system.”
According to U.S. Attorney Pak, the charges and other information presented in court: From September 2018 through March 2019, John Lamb a/k/a Johnny Lamb engaged in a scheme to defraud the USPS throughout the Southeastern United States, including North Georgia. Lamb negotiated over 200 counterfeit and forged checks at post offices in Georgia, Tennessee, North Carolina, Alabama, and Kentucky, defrauding the United States Postal Service of over $140,000. The value of these checks ranged from $500 to $950, which he used to buy U.S. postage stamps.
The U.S. Attorney’s Office for the Northern District of Georgia prosecuted Lamb in 2014 for using counterfeit checks to buy over $500,000 worth of U.S. Postal Service products, including stamps and services. He served a sentence in federal prison.
Lamb was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $143,960. Lamb was convicted on these charges on June 20, 2019, after he pleaded guilty.
The U.S. Postal Inspection Service investigated this case.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted 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.
Davenport Man Sentenced to 260 Months in Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa- On September 25, 2019, United States Attorney Marc Krickbaum announced, Demajor Alexander Nettles, age 26, of Davenport, was sentenced by United States District Court Chief Judge John A. Jarvey to 200 months in prison for Possession of Methamphetamine with Intent to Distribute and 60 months in prison Possession of a Firearm in Furtherance of a Drug Trafficking Offense. These sentences were ordered to run consecutively. Nettles was ordered to serve four years of supervised release following his prison term and to pay $200 to the Crime Victims’ Fund.
On May 20, 2019, Nettles pleaded guilty and admitted he distributed cocaine base to another individual. He further admitted that during the course of a search warrant executed on his hotel room officers located cocaine base and methamphetamine, a digital scale, packaging material, and a loaded firearm. Nettles admitted that $1,974 dollars in his possession were proceeds from narcotics trafficking.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhood (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Cuban Citizen Sentenced for Making False Statements on an Application for Lawful Permanent Residence and for Theft of Government FundsRead the Press Release
A Cuban citizen and high-ranking official in the Cuban government living in Miami, Florida, was sentenced to six months in prison for making false statements in his application for lawful permanent residence and for theft of government funds.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro the of the FBI’s Miami Field Office and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Saul Santos Ferro, 74, previously pleaded guilty to one count of making false statements in an immigration document and theft of government funds. Santos was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida who also ordered Santos to be removed to Cuba immediately upon completion of his sentence and pay restitution in the amount $12,522.28.
According to admissions in court documents, Santos made a number of lies and misrepresentations in his application to register as a permanent resident, which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status. Specifically, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a Major in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades and was involved in arresting and detaining political dissidents in Cuba.
Additionally, Santos admitted that he falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and falsely stated that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits. In fact, Santos told a series of lies about his past employment with the DSE to U.S. immigration authorities in the course of obtaining authority to enter the United States on a visitor visa in 2011 and 2012.
Santos further admitted to receiving Supplemental Security Income (SSI) benefits to which he was not entitled. SSI is a program funded by tax dollars and administered by the Social Security Administration to provide the elderly and people with disabilities with cash for basic needs including food, clothing and shelter. Santos and his wife qualified for and began receiving SSI benefits in September 2014, but by April 2015, Santos and his wife misrepresented their living situation and began receiving more money than they were entitled to receive. Because of his misrepresentation, the Court held Santos responsible for overpayments, which amounted to $28,491.83.
The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Social Security Administration Office of Inspector General with support from the FBI’s International Human Rights Unit investigated the case.
Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section, with the support of historian Joanna Crandall and Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida, prosecuted the case.
Covington Woman Indicted for Theft of Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that HAYDEE ARMAS SANTANA (“SANTANA”), age 56, of Covington, Louisiana, was indicted September 26, 2019 by a federal grand jury for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, beginning in 2015, SANTANA filed for, and became eligible for, Social Security Supplemental Security Income (“SSI”) disability payments. According to the indictment, SANTANA submitted a Form SSA-8001, under penalty of perjury, to the SSA in which she denied owning additional real property other than her home and claimed she only had $200.00 in a Citizen Bank & Trust checking account. SANTANA’s SSI application concealed an Iberia Bank account and her ownership in at least two additional pieces of real property, including one located in Miramar Beach, FL. In total, SANTANA fraudulently obtained over $31,000.00 in SSA SSI disability benefits.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, SANTANA faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man who tried to run a woman off the road and chased her into the police station, was sentenced in federal court today for illegally possessing a firearm.
Daleron Michael Monroe, 32, was sentenced by U.S. District Judge Roseann Ketchmark to six years in federal prison without parole. The court also ordered the federal sentence to be served consecutively to Monroe’s imprisonment in a Boone County Circuit Court case.
On Sept. 17, 2018, Monroe pleaded guilty to being a felon in possession of a firearm. Monroe admitted that he was in possession of a Springfield Armory .45-caliber semi-automatic handgun on April 29, 2018.
On that date, a woman identified in court documents as “L.P.” ran into the lobby of the Columbia, Mo., Police Department while fleeing from Monroe. According to court documents, Monroe had chased her in his vehicle at a high rate of speed while brandishing a firearm. During this chase, he rammed his vehicle into the vehicle containing L.P., and ran her and a co-worker off the road. L.P. was incredibly frightened of Monroe, according to court documents, due to previous threatening texts, the brandishing of the firearm, the high-speed chase, and the fact that he followed her into the police station.
An officer saw Monroe outside the lobby door. He began to run away as the officer approached. The officer thought he observed what might be a gun in Monroe’s right hand. Officers ran out of the police station with their weapons drawn and saw Monroe running towards a car parked in the middle of the street, with the driver’s door left open. One officer unsuccessfully attempted to apprehend Monroe; during the struggle the officer attempted to use his firearm, but it jammed. Monroe broke free and ran northbound towards Sixth Street. Officers continued to pursue Monroe on foot for approximately three blocks before he was apprehended in a residential back yard on Park Avenue.
Officers returned to Monroe’s vehicle, which was still running in the middle of the street, and saw the handgun laying in the front passenger side floorboard.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Monroe has prior felony convictions for unlawful possession of a firearm (in which he shot the victim in the face) and possession of a controlled substance. In addition to those felony convictions, Monroe also has a number of misdemeanor convictions, including four prior convictions for domestic assault, three prior convictions for resisting/interfering with arrest, and prior convictions for harassment to frighten or disturb another person and trespassing.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Capital Region Gang Member Pleads Guilty to Drug and Gun OffensesRead the Press Release
ALBANY, NEW YORK – Darrell Chapman, a/k/a “Bishop,” a/k/a “Sly Foxx,” age 39, of Rensselaer, New York, pled guilty today to narcotics and gun offenses.
The announcement was made by United States Attorney Grant C. Jaquith; New York State Police Superintendent Keith M. Corlett; and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chapman is a self-described founder of the East Bishop Family, a set of the Bloods gang operating in the Capital Region. In pleading guilty, Chapman admitted to regularly obtaining distribution-size quantities of cocaine and heroin in New York City, which he and others sold in the Albany area. In addition to Albany, Chapman’s drug-distribution operations reached to Rochester, New York, and to Pennsylvania.
In the early morning hours of October 18, 2017, Chapman was stopped returning to Albany from New York City with 250 grams of heroin. Later in the day, law enforcement seized over 100 grams of cocaine from Chapman’s jewelry store, “The Freezer,” on South Pearl Street in Albany, and seized digital scales, a money counter, and $3,910 in cash from Chapman’s home in Rensselaer. In searching a Chevy Malibu parked behind Chapman’s home, law enforcement seized approximately 1.5 kilograms of cocaine, cutting agent, and additional digital scales. Law enforcement also seized four handguns and two rifles, some of which were loaded, and over 100 rounds of ammunition. Chapman admitted he used the guns to protect his drugs and drug proceeds.
In pleading guilty, Chapman agreed to be sentenced to 262 months in prison, to be followed by 5 years of supervised release. Senior United States District Judge Fredrick J. Scullin Jr. will sentence him on June 10, 2020.
This case was investigated by the New York State Police and the FBI, with assistance from the Albany County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Burlington Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa - United States Attorney Marc Krickbaum announced on September 25, 2019, Tyreon Leseanjea Woodard, age 22, was sentenced by United States District Court Chief Judge John A. Jarvey for Felon in Possession of a Firearm. Woodard was sentenced to a prison term of 70 months to be followed by a term of supervised release of three years. Woodard was ordered to pay $100 to the Crime Victims’ Fund.
Woodard pleaded guilty to the offense on May 15, 2019, and admitted on September 13, 2018, he possessed a loaded, semi-automatic Smith and Wesson nine-millimeter pistol, a loaded semi-automatic Zastava rifle, and a loaded semi-automatic rifle. Woodard had previously been convicted of a felony and was not allowed to possess firearms.
This case was investigated by the Burlington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Buffalo Woman Pleads Guilty to Selling Cocaine and Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817 www.usdoj.gov/usao/nywBUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Danielle Ruger, 27, of Buffalo, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to possess with intent to distribute cocaine and crack cocaine. The charges carry a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorneys Laura A. Higgins and Misha A. Coulson, who are handling the case, stated that in the early morning hours of June 3, 2018, the defendant was a passenger in a vehicle stopped by the Buffalo Police Department after it was observed committing traffic violations for excessive tinted windows and speeding. Co-defendant Brandon Cooley was driving the vehicle.
Officers searched the vehicle after detecting a strong odor of marijuana coming from it. Quantities of suspected cocaine and crack cocaine were recovered, along with marijuana, a scale, gloves, packaging, and seven cellphones.
Charges remain pending against Brandon Cooley. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for February 27, 2020, before Judge Wolford.
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Buffalo Man Pleads Guilty to Selling Heroin and FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose Velez, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to distribution of heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorney Justin Bish, who is handling the case, stated that between June 1 and July 12, 2017, the Drug Enforcement Administration conducted five undercover purchases of heroin and fentanyl from the defendant in exchange for cash.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 8, 2020, before Judge Skretny.
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Brooklyn Businessman Pleads Guilty to Failing to Pay over Employment TaxesRead the Press Release
A Brooklyn, New York, businessman pleaded guilty today to failing to collect, truthfully account for, and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents and information provided to the court, Zhi Hui Zheng owned and operated Good Time Sewing Inc. and Perfect Made Apparel Inc., which did business in Brooklyn. As the owner and operator of these businesses, Zheng was responsible for collecting, truthfully accounting for and paying over to the Internal Revenue Service (IRS) Social Security, Medicare and income taxes withheld from his employees’ wages. For seventeen consecutive quarters, beginning from the first quarter of 2012 and continuing through the first quarter of 2016, Zheng failed to collect and pay over the required employment taxes and failed to file the corresponding Forms 941 with the IRS. Zheng has admitted that he did not pay approximately $688,234 in employment taxes due to the IRS.
Sentencing is scheduled for Jan. 14, 2020, before U.S. District Court Judge Nicholas G. Garaufis. The defendant faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark Kotila and Christopher O’Donnell of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Birmingham Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM – A federal grand jury on Thursday indicted a Birmingham man for being a felon in possession of a firearm, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson
A one-count indictment filed in U.S. District Court charges RAYMOND DEJUAN SHINE 38, with being a felon in possession of a firearm. Shine was arrested by federal agents on September 12, 2019 and made an initial appearance in the United States District Court.
“We will not sit idly by when given the opportunity to prosecute convicted felons who continue to abuse the system,” Town said. “Defendants like Shine will be prosecuted under federal law where there is no bail and there is no early parole.”
“Reducing the potential for violent crime that have negative effects to our neighborhoods was critical due to ATF partnering with our state, local and federal counterparts,” Marcus said.
The maximum penalty for being a felon in possession of a firearm is ten years in prison and a $250,000 fine.
ATF investigated the case, which Assistant U.S. Attorney John Camp is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Bangor Ambulance Company Settles False Claims Act AllegationsRead the Press Release
PORTLAND, Maine: United States Attorney Halsey B. Frank today announced that a Bangor ambulance company has agreed to pay $138,285.30 to settle allegations that it violated the federal False Claims Act (“FCA”).
The civil settlement agreement resolves allegations that Meridian Mobile Health, L.L.C., doing business as Capital Ambulance (“Capital”), improperly billed Medicare for nonemergency ambulance transportation of patients discharged from Eastern Maine Medical Center (“EMMC”) from October 2016 through February 2018. The government contended that such patients were not “bed-confined,” and did not otherwise medically require transportation by ambulance. The government also contended that EMMC personnel provided Capital with certification statements containing incomplete or incorrect information about the medical necessity of transporting the patients via ambulance, information Capital later used to bill Medicare.
Prior to the government’s lawsuit, Capital identified instances where it had billed and received payment from Medicare for nonemergency ambulance transports originating at EMMC that were not medically necessary. Capital voluntarily disclosed these results to the U.S. Attorney’s Office for the District of Maine. Capital also cooperated throughout the investigation, and implemented enhanced internal compliance and remedial measures. Federal authorities encourage health care providers to cooperate with investigations involving the possible submission of false claims to federal programs. Entities or individuals that make proactive, timely and voluntary self-disclosures to the U.S. Attorney’s Office may receive credit during the resolution of a later FCA case.
The U.S. Department of Health and Human Services, Office of Inspector General investigated the case. The civil action is docketed United States v. Meridian Mobile Health, L.L.C. d/b/a Capital Ambulance, 19-cv-00440-JDL (D. Me.)
Baltimore Felon Sentenced to Eight Years in Federal Prison for Distributing Heroin, Cocaine and FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Floyd Montague, age 28, of Baltimore, to eight years in federal prison, followed by three years of supervised release, for possession with intent to distribute heroin, cocaine, and fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees; Chief Thomas J. Ledwell of the Westminster Police Department; and Baltimore City Sheriff John Anderson.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. Armed drug dealers, like Floyd Montague, are on notice that gun crime may lead to federal time, where there are no suspended sentences and no parole—ever.”
According to Montague’s plea agreement, on November 29, 2018 and January 29, 2019, Montague met with an individual working with law enforcement at a gas station in Baltimore County. On both occasions the individual got into the front passenger seat of Montague’s vehicle and Montague sold the individual drugs. Specifically, on November 28, 2018 Montague sold the individual 20 vials containing 3.69 grams of cocaine; 10 bags containing 1.2 grams of heroin, and a paper fold containing .503 grams of heroin. On January 29, 2019, Montague sold the individual 24 baggies containing 2.96 grams of a mixture of heroin and fentanyl and 40 vials containing 4.43 grams of cocaine.
Following the sale of drugs on January 29, 2019, police attempted to arrest Montague, but Montague drove his vehicle into oncoming traffic and fled. During his flight, Montague struck an undercover vehicle being driven by police officers, causing extensive damage to the police vehicle. Montague turned into a lumber yard, drove through a chain link fence at the rear of the property, and after the vehicle came to a stop, fled on foot.
Montague was subsequently apprehended and searched. Officers recovered 17 bags containing a mixture of heroin, fentanyl, and cocaine, with a net weight of 2.48 grams. A search of Montague’s vehicle recovered cash totaling $927.80 and a 9mm semi-automatic handgun containing a magazine loaded with ten cartridges. The gun had been reported stolen on May 8, 2016. The firearm had several wet drops of blood on it. Montague’s DNA matched the DNA found in the blood on the firearm. Montague had at least two previous felony convictions and was prohibited from possessing a firearm or ammunition.
United States Attorney Robert K. Hur praised HSI, the Maryland State Police, the Carroll County Sheriff’s Office, the Westminster Police Department, and the Baltimore City Sheriff’s Office, which are part of the Carroll County Drug Task Force, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Goldsticker, who prosecuted the case.
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Armed robber sentenced to 11+ years in prison for Mountlake Terrace cannabis store robberyRead the Press Release
SEATTLE – One of two men who robbed a marijuana store at gunpoint was sentenced today in U.S. District Court to 138 months in prison and five years of supervised release for three federal felonies. ERIC HENRY WOODBERRY, 23, was convicted in June 2019, of robbery, possession of marijuana with intent to distribute and aiding and abetting possession of a firearm in furtherance of a crime of violence and a drug trafficking crime. At the sentencing hearing U.S. District Judge Richard A. Jones said, the robbery was a “very aggressive, very violent action on your part… (the victims) were terrified.”
According to records in the case and testimony at trial, WOODBERRY and co-defendant Bradford M. Johnson robbed Rainier Cannabis in Mountlake Terrace, Washington on November 21, 2017. The men entered the store carrying a stolen short-barreled rifle and a handgun. Both wore masks. They forced the employees onto the floor, took their phones and then ordered two of the employees to fill large bags with marijuana products and cash. When they saw police arriving at the front of the store, they ran out the back and attempted to hide from police in the nearby neighborhood. With the assistance of a police tracking dog, officers located WOODBERRY hiding in a boat trailered next to a house a few blocks from the store. Johnson was located a short time later.
Court records detail two other robberies and a Seattle robbery/burglary linked in police reports and state charging documents to WOODBERRY.
Johnson is scheduled for sentencing on November 22, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Mountlake Terrace Police Department, with assistance from the Lynnwood Police Department, Edmonds Police Department, Everett Police Department, King County Sheriff’s Office, and Washington State Patrol.
The case is being prosecuted by Assistant United States Attorneys Erin H. Becker and Stephen P. Hobbs.
Airline Passenger Charged in Disturbance After Flight Diverted to KCIRead the Press Release
KANSAS CITY, Mo. – A passenger aboard an Alaska Airlines flight diverted to Kansas City International Airport was charged in federal court today with interfering with a flight attendant.
Jwan Curry, 40, of Hamburg, New Jersey, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Missouri. Curry remains in federal custody pending an initial court appearance.
According to an affidavit filed in support of today’s criminal complaint, Curry was a passenger on an Alaskan Airlines flight that was scheduled to fly nonstop from John F. Kennedy Airport in New York to Los Angeles International Airport. Approximately one and a half to two hours into the flight, the affidavit says, Curry became agitated after not being able to use the bathroom in the front of the aircraft. Curry engaged in a verbal altercation with the attendants because they told him he could not use the forward lavatory, which was being used by crew members at that time.
Curry began screaming, yelling and using foul language, the affidavit says. He was swinging his arms and walking up and down the aisle. While waiting in line for the bathroom at the rear of the aircraft, he began swearing loudly around other passengers in line. He entered one of the rear lavatories and stayed there for an extremely long time. When he returned to his seat, he continued to be unruly.
The flight captain announced that all passengers should return to their seats and stop interfering with the flight attendants. The attendants notified the captain that Curry became increasingly physically dangerous. Curry was punching the seat and punching himself, the affidavit says, and threatened to “blow up” the plane. Passengers reported that Curry stated he was going to “kill everyone.”
Based on this information, it was decided to divert the flight. Four passengers were given flex cuffs and helped restrain Curry, who remained restrained in his seat for the remainder of the flight. After the plane landed at Kansas City International Airport, police officers arrived and took Curry into custody.
Under federal law, it is illegal to interfere with the performance of the duties of a flight crew member or flight attendant by assaulting or intimidating the crew member or attendant.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew A. Blackwood. It was investigated by the FBI and the Kansas City, Mo., Police Department.
17 Charged in Federal Indictment Alleging Cocaine/Heroin/Meth Trafficking in AustinRead the Press Release
This week, federal, state and local authorities arrested 13 individuals residing in Austin, including ringleader Juan Aguirre, in connection with a cocaine/heroin/methamphetamine trafficking operation, announced U.S. Attorney John F. Bash, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Houston Division, Austin Police Chief Brian Manley, Cedar Park Police Chief Sean Mannix, Texas Department of Public Safety Director Steven McCraw, Hays County Sheriff Gary Cutler, and IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office.
A federal grand jury indictment, returned in Austin and unsealed this week, charges those 13 plus four others residing in Austin who were previously arrested, with conspiracy to distribute a controlled substance. The defendants, allegedly, conspired to distribute more than five kilograms of cocaine, more than one kilogram of heroin, methamphetamine and other narcotics in Austin since December 2016. During this investigation, authorities seized approximately 20 kilograms of methamphetamine, seven kilograms of cocaine, five kilograms of heroin and more than $594,000 in U.S. Currency and assets attributed to this organization.
Defendants who are charged in this indictment include: 32-year-old Juan Angel Aguirre (aka “Larry Aguirre”), 35-year-old Thomas Daniel Garcia, 40-year-old Daniel Orozco, 34-year-old Sergio Gonzalez-Martinez (aka “Flaco”), 35-year-old Eloy Jaimes-Jaramillo, 30-year-old Francisco Jaimes-Jaramillo (aka “Pancho”), 30-year-old Magaly Ortiz-Cabrera, 37-year-old Isaias Rodriguez-Ramirez, 26-year-old Gerardo Cruz-Jaramillo, 24-year-old Christian Maya-Garcia (aka “Kike”), 32-year-old Saul Lopez, Jr., 32-year-old Salatiel Martinez-Fierro, 20-year-old Jesus Garcia-Vargas (aka “Junior”), 26-year-old Leonardo Flores-Solis, 28-year-old Ociel Diaz-Torres, 42-year-old Abel Duarte-Castro, and 21-year-old Daniel Maya-Garcia (aka “Pelon,” “Bola”). Gonzalez-Martinez, Flores-Solis, Diaz-Torres, and Duarte-Castro were already in custody prior to this week.
“The arrests made this week conclude an 18-month comprehensive investigation by the DEA and its state and local law enforcement partners here in Austin into the criminal activities of a dangerous poly drug trafficking organization,” said DEA SAC Glaspy. “With these arrests, key command and control elements of this criminal organization’s leadership have been apprehended and removed from the communities they sought to prey upon.”
All of the defendants remain in federal custody. Each defendant faces between ten years and life in federal prison upon conviction. Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the DEA, Austin Police Department, Cedar Park Police Department, Texas Department of Public Safety, Hays County Sheriff’s Office, and IRS-CI. U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) assisted with the arrests. Assistant U.S. Attorney Douglas Gardner is prosecuting this case on behalf of the Government.
26 September 2019
Worcester Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday in federal court in Worcester to possession of child pornography.
Michael Chapman, 62, pleaded guilty to two counts of possession of child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 19, 2019. Chapman was charged by criminal complaint in March 2019.
On July 2 and 3, 2017, Chapman uploaded images depicting child pornography using his Skype account. He also possessed child pornography on Oct. 6, 2017, on his computer, which agents seized during the execution of a search warrant. Chapman is a registered Level 3 sex offender due to multiple prior convictions. In 2004, he was convicted of two counts of indecent assault and battery on a child under 14 and three counts of obscene material; in 1994, he was convicted of transporting in interstate commerce a visual depiction of a minor engaging in sexually explicit conduct; and, in 1984, he was convicted of rape of a child and four counts of lewd and lascivious acts.
The charge provides for a sentence of no greater than 20 years in prison, five years and up to a lifetime of supervised release, and a fine of $250,000. Due to prior convictions, Chapman faces a minimum mandatory sentence of 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations, Boston Field Division; Massachusetts State Police Superintendent Colonel Kerry A. Gilpin; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Woman admits to smuggling pure methRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Huntsville, Alabama, woman has entered a guilty plea to knowingly attempting to smuggle 20 pounds of pure meth, announced U.S. Attorney Ryan K. Patrick.
On June 21, 2019, Guadalupe Inostroza-Diaz drove a white Nissan Altima into the primary inspection area of the Border Patrol (BP) checkpoint near Falfurrias. An x-ray search of the vehicle revealed bundles of methamphetamine concealed within the walls of an ice chest located in the car’s trunk.
Laboratory analysis later confirmed the substance in the bundles was 100% pure meth totaling 12 kilograms with a value of more than $919,000.
U.S. District Judge David S. Morales will impose sentencing Jan. 15, 2020. At that time, Inostroza-Diaz faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine.
She has been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorneys Robert D. Thorpe Jr. and Julie K. Hampton prosecuted the case.
Westfield Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Westfield man pleaded guilty yesterday in federal court in Springfield to child pornography charges.
Stephen Cote, 48, pleaded guilty to three counts of receipt of child pornography, one count of distribution of child pornography and one count of offering to receive child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 18, 2019. Cote was indicted in January 2016, and he has been detained since his arrest on July 20, 2018.
On various occasions between April 30, 2013, and May 31, 2015, Cote sent and received child pornography by text and email, and also offered to receive child pornography. Cote exchanged child pornography with Bruce Singer, who was sentenced on July 19, 2019, to 96 months in prison for various child pornography offenses. During the course of Cote and Singer’s electronic communications, they discussed their shared interest in the sexual abuse of children.
The charges of receipt and distribution of child pornography each provide for a sentence of up to 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of seeking and offering to receive child pornography provides for a sentence of no greater than 30 years in prison, a lifetime of supervised release, and a $250,000 fine. According to the terms of the plea agreement, the Government will recommend a sentence of 15 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Northampton Police Chief Jody Kasper; and Easthampton Police Chief Robert Alberti made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Washington, D.C. Man Pleads Guilty to Federal Charge of Involuntary Manslaughter in Connection with a Fatal Crash on the Baltimore-Washington ParkwayRead the Press Release
Greenbelt, Maryland – Darnell E. Bassett, age 24, of Washington, D.C., pleaded guilty to involuntary manslaughter in connection with a fatal accident on the Baltimore-Washington Parkway. The guilty plea was entered on September 25, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Chief Gregory T. Monahan of the U.S. Park Police; and Chief Peter Newsham of the Metropolitan Police Department.
According to his plea agreement, on June 24, 2019, a vehicle driven by Bassett was involved in a collision with a District of Columbia Metropolitan Police cruiser in northeast Washington, D.C. The police vehicle was disabled, but Bassett continued driving at a high rate of speed, going the wrong way on a one-way street. Another marked Metropolitan Police vehicle pursued Bassett with its lights and siren activated. Bassett did not stop, making his way into Maryland on the Baltimore-Washington Parkway.
Bassett continued driving northbound on the Baltimore-Washington Parkway at a high rate of speed and passed other vehicles by driving on the right shoulder of the highway. Sometime during the incident, one of his tires blew out, but Bassett nevertheless continued driving on the shoulder of the highway and passing other traffic. While driving at least 70 miles per hour, Bassett began to take the right-side exit ramp to the inner loop of Interstate 495, then veered left across the on-ramp and into the triangular painted safety zone between the ramp and the travel lanes, striking a Honda CR-V that was stopped in the safety zone. The Honda spun around and then turned onto its side. The driver of the Honda died as a result of the crash.
Bassett faces a maximum sentence of eight years in prison. As part of his plea agreement, Bassett is also required to pay restitution in the full amount of the victim’s losses and injuries caused to the victim and the victim’s vehicle, which includes but is not limited to the costs of the victim’s funeral and burial costs. U.S. District Judge George J. Hazel has scheduled sentencing for November 27, 2019 at 2:00 p.m.
United States Attorney Robert K. Hur commended the U.S. Park Police and the Metropolitan Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Morgan and Hollis Raphael Weisman, who are prosecuting the case.
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Washington Parish Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – BILLY C. PORTER, age 43, a resident of Bogalusa, Louisiana, was charged September 6, 2019, in a two-count indictment by a Federal Grand Jury with distribution of methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to the indictment, on April 30, 2019, and again on August 6, 2019, PORTER distributed fifty grams or more of a mixture or substance containing a detectable amount of methamphetamine.
If convicted, PORTER faces a mandatory minimum term of imprisonment of five years and a maximum of forty years’ imprisonment, a fine of up to $5,000,000.00 and at least four years of supervised release following any term of imprisonment.
This prosecution is part of an extensive investigation by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and firearms in the Bogalusa area.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney André Jones.
WDNY Takes Part in Federal Health Care Fraud TakedownRead the Press Release
FEDERAL HEALTH CARE FRAUD TAKEDOWN IN NORTHEASTERN U.S. RESULTS IN CHARGES AGAINST 48 INDIVIDUALS
Three Plead Guilty to One of Largest Health Care Fraud Schemes Prosecuted Involving Fraudulent Telemedicine Networks Targeting Elderly Patients Nationwide
WASHINGTON – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in loss and the distribution of over 3.25 million pills of opioids in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims, including charges against 15 doctors or medical professionals, and 24 who were charged for their roles in diverting opioids.
In addition to the new charges, today’s enforcement action also includes the guilty pleas of three corporate executives, including the Vice President of Marketing of numerous telemedicine companies and two owners of approximately 25 durable medical equipment companies, for their roles in causing the submission of over $600 million in fraudulent claims to Medicare. This is one of the largest health care fraud schemes ever investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice, which previously resulted in charges against 21 other defendants. The enforcement action also includes three additional recent guilty pleas by other defendants. In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI) announced today that all appropriate administrative actions would be taken based on these charges. As part of the announcement in April, CMS/CPI announced that it took administrative action against 130 DME companies that submitted over $1.7 billion in claims to the Medicare program.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigations (IRS-CI), Department of Defense-Defense Criminal Investigative (DoD-DCIS), Food and Drug Administration-Office of Inspector General (FDA-OIG), U.S. Postal Service-Office of Inspector General (USPS-OIG), the Medicaid Fraud Control Unit and other federal and state law enforcement agencies participated in the operation.
The charges and guilty pleas announced today continue to target corporate health care fraud involving fraudulent telemedicine companies and the solicitation of illegal kickbacks and bribes from health care suppliers in exchange for the referral of Medicare beneficiaries for medically unnecessary durable medical equipment and other testing. The charges also involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss to the public fisc, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement assistant U.S. attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and my Office, and our focus in this area continues to pay off.”
“Under the law, healthcare professionals are obligated to exercise appropriate care and judgment in the manner in which opiates are prescribed and distributed in order to ensure that such substances are, in fact, ‘controlled,’” said U.S. Attorney James P. Kennedy Jr. of the Western District of New York. “When such professionals abandon that obligation and instead engage in acts of fraud and deceit, they will be prosecuted.”
“As alleged, defendants charged in the Eastern District of New York used fraud and deceit to steal Medicaid and Medicare funds meant to protect our elderly and most vulnerable residents,” stated U.S. Attorney Donoghue of the Eastern District of New York. “As this initiative demonstrates, we will continue to bring to justice those that defraud our nation’s health care programs.”
“We continue to work closely with our law enforcement partners to identify, investigate and eliminate fraud, waste and abuse in the nation’s federal healthcare programs,” said Deputy Administrator and CPI Center Director Alec Alexander. “In this case, CMS will take swift administrative action against providers responsible for fraudulent billings to federal healthcare programs. CMS is committed to protecting vulnerable beneficiaries from exploitation and safeguarding taxpayer dollars.”“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law," said Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”
“Healthcare fraud is not a victimless crime—with unscrupulous providers preying on Medicare beneficiaries and taxpayers alike. Especially insidious is the fraud committed by healthcare professionals who are trusted to provide needed, quality services to patients,” said Special Agent in Charge Scott J. Lampert of HHS-OIG. “With our law enforcement partners, our agency will continue to thoroughly investigate medical providers and others involved in healthcare fraud.”
“The physicians who chose to violate their oaths to “Do no harm” are nothing more than drug dealers wearing a white lab coat,” said Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s New Jersey Field Division. “They have turned their backs on those most vulnerable. We will continue to vigorously pursue these doctors who violate the faith and trust of those who need help.”
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Among those charged in the District of New Jersey are the following:
Elliot Loewenstern, 56, of Boca Raton, Florida, the vice president of marketing of purported call centers and telemedicine companies, pleaded guilty on Sept. 24, 2019, for his role in one of the largest health care fraud schemes ever investigated by the FBI and HHS-OIG and prosecuted by the Department of Justice, which resulted in charges in April 2019 against 24 defendants. Loewenstern pled guilty to one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of solicitation of health care kickbacks. Loewenstern was the Vice President of Marketing of PCS CC LLC and a marketer for Video Doctor USA (Video Doctor) and Telemed Health Group LLC (AffordADoc) (collectively, the Video Doctor Network). In connection with his plea agreement, Loewenstern admitted causing the submission of over $424 million in fraudulent claims that resulted from the solicitation of illegal kickbacks and bribes in exchange for the referral of brace orders to brace providers. In connection with his guilty plea, Loewenstern admitted that he and others agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, brace suppliers and others in exchange for the arranging for doctors to order medically unnecessary orthotic braces for beneficiaries of Medicare and other insurance carriers. The beneficiaries were contacted through an international telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America, Loewenstern stated. Loewenstern admitted that many of these orders were written after only a short telephone call between the health care provider and the beneficiary, with whom the health care provider had no prior doctor-patient relationship. In addition, Loewenstern admitted that he was aware that the owners and other executives of the Video Doctor Network schemed to defraud investors and others by making false and fraudulent representations that the Video Doctor Network was a legitimate telemedicine enterprise that made revenue of “$10 million per year” and “20 percent profit” from payments by beneficiaries who enrolled in a membership program and paid for the telemedicine consultations. These statements were false because revenue was obtained by the Video Doctor Network through the receipt of illegal kickbacks and bribes, Loewenstern admitted. In connection with his plea agreement, Loewenstern agreed to pay $200 million in restitution to the United States, as well as forfeit assets and property traceable to proceeds of the conspiracy to defraud the United States. Loewenstern’s sentencing is set for Jan. 9, 2020, before U.S. District Judge Madeline Cox Arleo of the District of New Jersey, who accepted his plea. Loewenstern was charged along with Creaghan Harry, 51, of Highland Beach, Florida, and Lester Stockett, 52, of Medellin, Colombia, in an indictment charging one count of conspiracy to defraud the United States and pay and receive health care kickbacks and four counts of health care kickbacks. Stockett and Harry were separately charged with one count of conspiracy to commit money laundering. Stockett, the Chief Executive Officer, previously entered a plea of guilty to one count of conspiracy to defraud the United States and one count of money laundering. The case against Harry is pending. Trial has not been set. The case was investigated by FBI, HHS-OIG, and IRS-CI. The case is being prosecuted by Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section.
Joseph DeCoroso, M.D., 62, of Toms River, New Jersey, pleaded guilty for his role in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for durable medical equipment (DME), in many instances without ever speaking to the patients, while working for two telemedicine companies. Sentencing is set for Jan. 8, 2020. The case was investigated by FBI Newark and HHS-OIG. The case is being prosecuted by Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
Nelly Petrosyan, 56, of New York, New York, the owner and operator of orthotic brace suppliers in New York, New York, was indicted on one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and three counts of payment of health care kickbacks. The charges result from a $5.6 million conspiracy in which Petrosyan offered and paid kickbacks and bribes to several purported telemedicine companies in exchange for completed doctors’ orders of medically unnecessary orthotic braces for Medicare beneficiaries. Petrosyan and her coconspirators concealed the fraud by entering into sham contracts and producing false invoices characterizing the kickbacks and bribes as payments for “marketing.” The investigation was conducted by FBI Newark and HHS-OIG. The case is being prosecuted by Trial Attorney Darren Halverson.
Alice Chu, M.D., 62, of Fort Lee, New Jersey, was indicted on one count of conspiracy to commit health care fraud and four counts of health care fraud. The charges stem from Chu’s alleged submission of false and fraudulent claims to Medicare and private insurance companies for services that were medically unnecessary, never provided, not provided as represented or not eligible for reimbursement. Chu was allegedly induced by a financial incentive to order expensive and medically unnecessary lab tests that were paid for by Medicare. The investigation was conducted by FBI Newark, HHS-OIG, DOD-DCIS and FDA-OIC. The case is being prosecuted by Trial Attorney Rebecca Yuan of the Fraud Section.
Aaron Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 40, of Englishtown, New Jersey, owners of approximately 25 durable medical equipment companies, pleaded guilty on Sept. 18 and Sept. 25, respectively, for their participation in a health care fraud scheme related to their payment of kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Levit’s conduct admittedly caused losses in excess of $120 million and Williamsky’s conduct admittedly caused losses in excess of $170 million. Williamsky also pleaded guilty to a money laundering conspiracy related to his attempt to conceal at least $1.65 million of the proceeds of the fraud. The case was investigated by FBI, HHS-OIG, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Sean Sherman and Stephen Ferketic of the District of New Jersey.
Bernard Ogon, M.D., 46, of Burlington, New Jersey, pleaded guilty on Sept. 25 to one count of health care fraud conspiracy for his participation in a vast compounded medication telemedicine conspiracy. As part of the conspiracy, Ogon admittedly signed prescriptions for compounded medications (that is, medications with ingredients of a drug tailored to the needs of a particular patient) without having established a doctor-patient relationship, spoken to the patient or conducting any medical evaluation. Ogon often signed preprinted prescription forms—with patient information and medication already filled out—where all that was required was his signature. Then, instead of providing the prescription to the patient, Ogon would return the prescriptions to specific compounding pharmacies involved in the conspiracy. Ogon was paid $20 to $30 for each prescription he signed, and his participation in the conspiracy caused losses to health care benefit programs of over $24 million, including losses to government health care programs of over $7 million. The case was investigated by FBI Newark and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney Jason Gould of the District of New Jersey.
Joseph Santiamo, 64, of Staten Island, New York, a physician specializing in internal medicine and geriatrics was charged for allegedly conspiring to distribute and dispense controlled substances, including oxycodone, in exchange for sexual favors, and outside the usual course of professional practice and not for a legitimate medical purpose. The case is being prosecuted by Assistant U.S. Attorney Brian Urbano of the District of New Jersey.
Yana Shtindler, 44, of Glen Head, New York; Samuel “Sam” Khaimov, 47, of Glen Head, New York; Alex Fleyshmakher, 33, of Morganville, New Jersey; and Ruben Sevumyants 36, of Marlboro, New Jersey were indicted in connection with a scheme at Prime Aid Pharmacies (located in Union City, New Jersey and Bronx, New York) that included: (a) paying illegal bribes and kickbacks to doctors and doctors’ employees in exchange for prescription referrals to Prime Aid; (b) billing health insurance providers for medications that were never actually provided to patients; and (c) opening new pharmacies and concealing the true ownership of those pharmacies to obtain lucrative contracts they otherwise would not have obtained. The scheme of billing for medications that were never dispensed to patients was so egregious that Prime Aid received reimbursement payments of over $65 million for prescription medications that it never even ordered from distributors or had in stock. In total, Prime Aid’s multiple schemes defrauded Medicare, Medicaid, and private insurers out of at least $99 million. The case is being prosecuted by Assistant U.S. Attorney Joshua Haber of the District of New Jersey.
Eduard “Eddy” Shtindler, 36, the owner and operator of Empire Pharmacy in West New York, New Jersey, was charged by criminal complaint for paying bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. On occasion, Shtindler secreted cash bribes in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy. In addition, starting in 2015, Empire – at Shtindler’s direction – perpetrated a fraudulent scheme to induce doctors to send expensive specialty medication prescriptions to Empire. Specialty medications often required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. To receive prior authorization approval more quickly and successfully than any other pharmacies, Empire employees, including two pharmacists, repeatedly falsified prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In total, Empire defrauded Medicare and Medicaid out of at least $2 million. The case is being prosecuted by Assistant U.S. Attorney Joshua Haber of the District of New Jersey.
Matthew S. Ellis, 53, of Gainesville, Florida; Edward B. Kostishion, 59, Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania, and Jeffrey Tamulski, 46, of Tampa, Florida were indicted in connection with a genetic testing health care fraud scheme. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 in bribes. The case is being prosecuted by Assistant U.S. Attorney Bernard Cooney of the District of New Jersey.
Among those charged in the Eastern District of Pennsylvania are the following:
Timothy F. Shawl, 60, of Garnet Valley, Pennsylvania, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. Shawl allegedly wrote prescriptions for controlled substances for patients without seeing, treating or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients amounting to over 29,000 oxycodone tablets. The FBI conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the Fraud Section.
Neil K. Anand, M.D., 42, of Bensalem, Pennsylvania, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, Pennsylvania, Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the U.S. Office of Personnel Management (OPM) and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” bags of medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances. Malik and Kundi allegedly wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova allegedly prescribed over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone totaling over 634,000 oxycodone tablets. The investigation was conducted by the FBI, HHS-OIG, USPS-OIG and OPM. The case is being prosecuted by Trial Attorney Debra Jaroslawicz.
Twelve indictments were unsealed involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, drove many miles to pharmacies in Mt. Laurel, New Jersey, Marcus Hook, Pennsylvania, Drexel Hill, Pennsylvania, and Kennett Square, Pennsylvania. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone. According to the indictments, the defendants would often travel together to the pharmacies to fill their forged prescriptions. Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock; Crystal Coleman, 31; Marques Russell, 35, and Joseph Michael Simmons, 31. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. The case was jointly investigated by the DEA’s Tactical Diversion Squad, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office and the Easttown Township Police Department. The cases are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes and Mary Kay Costello of the Eastern District of Pennsylvania.
Search and seizure warrants are being executed today at approximately six different locations. The search and seizures are being executed by law-enforcement officers from six federal agencies, including HHS-OIG, the FBI, USPS-OIG, DOL-OIG, DOD and OPM.
Among those charged in the Eastern District of New York are the following:
Anna Steiner, M.D., also known as “Hanna Wasielewska,” 63, of Valatie, New York, a licensed anesthesiologist, was charged in a superseding indictment for an alleged $17.4 million health care fraud scheme related to the payment of kickbacks in return for the ordering of DME, prescription drugs and diagnostic tests that were not medically necessary and not the result of an actual doctor-patient relationship. Steiner was originally indicted on July 9, 2019. The case was investigated by FBI and HHS-OIG. The case is being prosecuted by Fraud Section Trial Attorney Andrew Estes.
Dr. Denny Martin, 46, of New York, New York, a licensed Neurologist, was charged in a complaint for an alleged healthcare fraud scheme related to the billing of doctor home visits where none actually occurred. The case is being prosecuted by Assistant U. S. Attorney William P. Campos.
Andrew Barrett, 60, of New City, New York, and his former wife, pharmacy owner Phyllis Pincus, 58, of New City, New York, were charged by indictment with healthcare fraud and false claims in a scheme where they billed insurers for medications not actually dispensed to patients. In 2016, Barrett was sentenced to 43 months’ incarceration upon his guilty plea to tax fraud and healthcare fraud in which he billed insurers for medications not actually dispensed to patients. He was excluded from participation in the Medicare and Medicaid programs for over 20 years. The case is being prosecuted by Assistant U.S. Attorney William P. Campos.Kevin McMahon, 31, of Seaford, New York, a registered professional nurse, was charged in a misdemeanor information with possession of fentanyl, which he obtained through the course of his employment at Nassau University Medical Center. McMahon will plead guilty to the information pursuant to a plea agreement and has agreed to surrender his nursing license at the time of his plea. The case is being prosecuted by Assistant U.S. Attorney Erin E. Argo.
Among those charged in the Western District of New York are the following:Jillian Marks, 37, of Orchard Park, New York, a licensed nurse practitioner, was charged with obtaining controlled substances through fraud, wrongful use of government seal, and identity theft. With access to the Neighborhood Health Center in the City of Buffalo’s internal computer databases, the defendant allegedly abused her position and illegally accessed the Allscripts prescription prescribing portal. Marks allegedly prescribed approximately 2,000 dosage units of controlled substances such as Adderall and Oxycodone, in the names of health center patients, which she then had filled and picked up at local pharmacies. At one point, Marks allegedly forged a letter from the DEA in order to appear “good” to her employer and allegedly used the DEA seal illegally. The DEA conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Adler and Misha A. Coulson of the Western District of New York.
Karen Melton, 45, of Cuba, New York, was charged with obtaining controlled substances through fraud. Melton, a medical secretary working for a physician in Olean, New York, was not licensed to prescribe controlled substances. However, Melton allegedly used her access within the office to issue fraudulent prescriptions in her own name in both paper and electronic form. The prescriptions were allegedly issued without a legitimate medical purpose. Between September 2016 and May 2019, Melton allegedly issued 59 fraudulent prescriptions for controlled substances, including hydrocodone. The DEA conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Adler and Misha A. Coulson.
Among those charged in the District of Connecticut are the following:
Philippe R. Chain, M.D., has entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Connecticut, in which he will pay $300,000 to resolve allegations that he violated the False Claims Acts. Chain, who currently practices medicine in Florida, previously practiced medicine in Connecticut and performed telehealth services from Connecticut for a telemedicine company located in Las Vegas, Nevada. The telehealth services Chain provided involved prescribing compounded medications to TRICARE beneficiaries. TRICARE is the federal health care program for active duty military personnel, retirees, and their families. The government alleges that Chain caused pharmacies to submit false claims for compounded medications to TRICARE by issuing or approving prescriptions which were invalid, because Chain did not speak with or examine the patients in question and did not have an established physician-patient relationship with them, in exchange for compensation paid to Chain. This matter was investigated by the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot of the District of Connecticut.
Among those charged in the Western District of Pennsylvania are the following:
Emilio Ramon Navarro, M.D., 58, of Coal Center, Pennsylvania, was charged with unlawfully dispensing controlled substances and health care fraud. Counts 1 – 28 of the Indictment allege that from April 2018 until April 2019, Navarro unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to a person in return for sexual favors, either physically or by electronic communications, outside the usual course of professional practice and not for a legitimate medical purpose. Navarro is also charged in Count 29 with health care fraud for causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed controlled substances. This case was investigated by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit which includes: FBI, HHS-OIG, DEA, IRS-CI, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, USPS, Veterans Affairs-OIG, FDA-CI, OPM-OIG, and the Pennsylvania Bureau of Licensing. Assistant U.S. Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting the case.
Among those charged in the District of Columbia are the following:
Hope Falowo, a personal care aide, was charged by information with one count of healthcare fraud for her role in a $400,000 fraud scheme where she would bill Medicaid in the District of Columbia for services she never provided. The case is being prosecuted by Counsel to the Chief of the Health Care Fruad Unit Amy Markopoulos.
Nkiru Uduji, a personal care aide, pleaded guilty to one count of health care fraud conspiracy charged in an August 2019 Information. The charges stem from Uduji’s role in a $600,000 fraud scheme in which she billed for more than 24 hours in a day, for services that were not rendered, and for services that were procured by kickbacks. The case is being prosecuted by Counsel to the Chief of the Health Care Fruad Unit Amy Markopoulos.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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Virginia man admits to child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Alan Williams, of Hillsboro, West Virginia, has admitted to producing child pornography, U.S. Attorney Bill Powell announced.
Williams, age 54, pled guilty to one count of “Production of Child Pornography by Person Having Custody or Control.” Williams admitted to permitted a minor to engage in sexually explicit conduct to produce child pornography to be shared in February 2019 in Jefferson County.
Williams faces at least 15 years and up to 30 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 Kimberley D. Crockett is prosecuting the case on behalf of the government. The Department of Homeland Security Investigations investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Vermont Man Pleads Guilty to Narcotics OffenseRead the Press Release
BOSTON – A Vermont man pleaded guilty today in federal court in Boston for his role in a cocaine conspiracy.
Lorenzo Deconinck, 60, of Jamaica, Vt., pleaded guilty to one count of conspiracy to distribute cocaine. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Dec. 19, 2019. Deconinck was charged in an indictment unsealed in March 2018.
Deconinck pleaded guilty to conspiring with David Cruz and others to distribute cocaine in Massachusetts. Specifically, between 2015 and 2016, Cruz obtained cocaine from sources in Mexico and caused the cocaine to be transported to the Springfield area via concealed compartments in a Nissan Juke. Deconinck then purchased more than 50 grams of cocaine from Cruz with the intent to distribute it.
Cruz previously pleaded guilty to drug and firearms offenses and is scheduled to be sentenced on Jan. 23, 2020.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistance was provided by the Internal Revenue Service’s Criminal Investigations, the DEA’s Carlsbad (Calif.) Resident Office, and Westfield Police Department. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the case.
Unites States Attorney’s Office Announces Arrest of Two Tied to Recent Roanoke Violence, including Eastern Avenue ShootingsRead the Press Release
Roanoke, VIRGINIA – Aaron Lee Woods of Roanoke, whose Eastern Avenue home was alleged to have been something like a “fast food operation for marijuana,” was arrested on a federal criminal complaint last week and charged with crimes related to federal drug trafficking and firearms offenses. United States Attorney Thomas T. Cullen made the announcement today as part of the Western District of Virginia’s ongoing Project Safe Neighborhoods initiative to reduce drug and violent crime. In a separate criminal complaint, U.S. Attorney Cullen announced the arrest of Tyrik Dausha Merchant on one count of being a convicted felon illegally in possession of a firearm.
“These arrests underscore the commitment of federal law enforcement to address drug trafficking and rising levels of violence in Roanoke,” U.S. Attorney Cullen stated today. “We are working closely with our partners at the police department and expect additional federal arrests in the near future.”
As alleged in the criminal complaint, Woods and others not named in court documents were involved in a conspiracy since at least 2017 to distribute large quantities of marijuana in the Roanoke Valley. Woods operated at times from a residence on Eastern Avenue leased in his name. On a typical day, witnesses described a steady stream of marijuana purchases at the house during the afternoon and evening hours. A dozen or more individuals, on average, would stop in to purchase marijuana from large vacuum sealed bags Woods kept on the coffee table in the living room while others played video games and socialized. Witnesses told law enforcement that firearms were frequently in view in the residence, on tables or leaning against the wall during periods of peak distribution.
The complaint alleges that the distribution activity culminated in a shooting death on July 10, 2018 at the Eastern Avenue address. According to witnesses, three prospective marijuana purchasers who left the residence empty-handed earlier in the day returned to the residence around 9:45 p.m. According to witnesses, something like a brick came through the front glass window, at which point two-way gunfire ensued. Woods, and others, began shooting from inside and in front of the residence. During the course of the shootout, one individual was shot in the head and neck and killed during an apparent attempt to flee the scene. Woods and others fled his Eastern Avenue residence following the shooting.
According to a separate complaint, on or about September 14, 2019, Merchant was at the 7-11 convenience store located at 3602 Williamson Rd., N.W. in the City of Roanoke. Witnesses and surveillance cameras showed Merchant approach a vehicle in the 7-11 parking lot, draw a pistol, and fire at the driver of that vehicle from a distance of no greater than four feet away. The driver of the vehicle returned fire, hitting Merchant several times. A Roanoke City Police officer was able to recover Merchant’s pistol from the parking lot where Merchant dropped it. Merchant had previously been convicted of a felony, and so was prohibited from possessing a firearm when these events occurred.
The investigation of these cases was conducted by the Roanoke City Police Department, the Bureau of Alcohol, Tobacco, Firearm, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Marshals Service, the Roanoke County Police Department, the Virginia State Police, the Bedford County Sheriff’s Office, and members of the area’s High Intensity Drug Trafficking Area Task Force [HIDTA]. Assistant United States Attorneys Kari Munro and Andrew Bassford will prosecute the cases for the United States.
These cases were 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.
A criminal complaint is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
U.S. Attorney’s Office Hosts Roundtables on Sexual Harassment and Racial Discrimination in HousingRead the Press Release
Anchorage, Alaska -- U.S. Attorney Bryan Schroder announced that on Wednesday, Sept. 18 and Thursday, Sept. 19, the U.S. Attorney’s Office and Department of Justice’s Civil Rights Division hosted roundtable discussions on combating sexual harassment and racial discrimination in housing in Fairbanks and Anchorage.
The events included state, tribal, and federal agencies, non-profit organizations, and crisis and legal service providers that often work with Alaska’s most vulnerable populations, who could also become victims of sexual harassment or racial discrimination in housing.
“These roundtables compliment the mission of the Attorney General’s Rural Alaska Anti-Violence Enforcement Network (RAAVEN). Many women facing violence and abuse in rural Alaska come to Anchorage or Fairbanks looking for a fresh start and new opportunities. These roundtables will help ensure that women and other vulnerable populations from all over Alaska are treated respectfully and fairly as they seek housing,” said U.S. Attorney Bryan Schroder.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.
Because victims may not be aware that the conduct they have experienced violates the Fair Housing Act or may not know where to turn, the U.S. Attorney’s Office and Department of Justice hope to collaborate with community organizations to raise awareness and help victims report abuse.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. In 2017, the Justice Department recovered more than $1 million in damages for victims. The Justice Department’s investigations frequently uncover sexual harassment or racial discrimination that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities. Many instances of sexual harassment or racial discrimination in housing continue to go unreported.
The roundtables were coordinated by Lauren Marks of the Housing and Civil Enforcement Section of the Civil Rights Division of Department of Justice.
The Department encourages anyone who has experienced sexual harassment or discrimination in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected].
U.S. Attorney McSwain Announces Charges as Part of Federal Health Care Fraud Takedown in Northeastern United StatesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain joined fellow Justice Department officials today at a press conference to announce a coordinated health care fraud enforcement action across seven federal districts involving more than $800 million in loss and the distribution of over 3.25 million opioid pills in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims. Of those 48 defendants, 15 are doctors or medical professionals, and at least 24 defendants were charged for their roles in diverting opioids. In the Eastern District of Pennsylvania, 17 defendants (five of whom are doctors or medical professionals) were arrested, and the conduct involved submission of more than $4 million in fraudulent claims and distribution of approximately 738,000 oxycodone pills to the streets of this District.
Today’s announcement comes one year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the District of New Jersey. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney McSwain. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and of my Office, and our focus in this area continues to pay off.”
At the press conference, U.S. Attorney McSwain announced details about the following cases charged in the Eastern District of Pennsylvania:
Timothy F. Shawl, M.D., 60, of Garnet Valley, PA, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. As alleged in the indictment, Shawl wrote prescriptions for controlled substances for patients without seeing, treating, or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients, amounting to over 29,000 oxycodone tablets. The Federal Bureau of Investigation (FBI) conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the DOJ Fraud Section.
The second case involves defendants Neil K. Anand, M.D., 42, of Bensalem, PA, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, PA. Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were each indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the United States Office of Personnel Management (OPM), and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” which were stuffed with medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM, and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances.
According to the indictment, Malik and Kundi wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova provided over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone, for a staggering total of over 634,000 oxycodone tablets distributed from this scheme. The investigation was conducted by the following agencies: FBI, Department of Health and Human Services – Office of Inspector General (HHS-OIG), United States Postal Service – Office of Inspector General (USPS-OIG), the Office of Personnel Management, the Pennsylvania Office of Attorney General, and the Philadelphia Police Department. The case is being prosecuted by DOJ Trial Attorney Jaroslawicz.
Additionally, 12 indictments were unsealed yesterday involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, allegedly drove to Pennsylvania pharmacies in Marcus Hook, Drexel Hill, and Kennett Square, and a New Jersey pharmacy in Mount Laurel, to fill these forged prescriptions. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone, which is approximately 75,000 oxycodone pills.
Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock, 29; Crystal Coleman, 31; Marques Russell, 35; and Joseph Michael Simmons. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. These cases were investigated by the Drug Enforcement Administration, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office, and the Easttown Township Police Department. They are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes, and Mary Kay Costello, all of the Eastern District of Pennsylvania.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Medicare Fraud Strike Force, as well as the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, District of New Jersey, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“Today's indictments confirm the FBI's commitment to hunting down doctors and other healthcare professionals who act like drug dealers. The opioid crisis is devastating families here in Philadelphia and across the country. The FBI and its law enforcement partners will continue to focus on corrupt physicians and others driving the epidemic,” said Michael T. Harpster, Special Agent in Charge of the Philadelphia Division of the FBI.
“Today’s law enforcement actions show we are holding alleged bad actors accountable and working to prevent further harm to beneficiaries and taxpayers,” said Maureen R. Dixon, Special Agent in Charge, Philadelphia Regional Office of the Inspector General, U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our law enforcement and community partners to combat health care fraud and drug diversion in the Philadelphia Region.”
“The DEA’s Diversion Investigators and Tactical Diversion Squads are missioned with the identification, investigation, and arrest of rogue DEA Registrants and drug trafficking organizations involved in the illegal distribution of controlled substances such as oxycodone and other prescription painkillers,” said Jonathan A. Wilson, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Working with our partner agencies such as the U.S. Department of Health & Human Services, the U.S. Department of Labor, and the Federal Bureau of Investigation, the DEA will continue to pursue federal criminal cases and parallel civil proceedings against the registrants and organizations that seek to divert these powerful painkillers that have contributed to the opioid epidemic.”
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, stated: “The Postal Service spends billions of dollars per year on health care related costs for postal employees, the majority of which is for legitimate purposes. However, a few medical providers try to take advantage of the system. USPS – OIG special agents will vigorously investigate health care fraud allegations that touch the Postal Service and will work with our law enforcement partners to bring fraudsters to justice.”
“The opioid, heroin, and fentanyl epidemic is devastating Pennsylvania communities, and it is fueled in part by prescription drug abuse,” said Pennsylvania Attorney General Josh Shapiro. “The defendants had a responsibility to help their patients, but instead they are charged with giving them dangerous opioids that they did not need. They also allegedly committed millions of dollars in insurance fraud, which causes rates for all consumers to increase. I’m proud to work with our law enforcement partners to put a stop to this criminal enterprise and protect the people of Pennsylvania.”
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Herdman to continue serving on Attorney General's Advisory CommitteeRead the Press Release
Attorney General William P. Barr announced the appointment of the following nine U.S. Attorneys to serve on the Attorney General’s Advisory Committee (AGAC): David Anderson, Northern District of California; Scott Brady, Western District of Pennsylvania; Maria Chapa Lopez, Middle District of Florida; Halsey Frank, District of Maine; Erica MacDonald, District of Minnesota; Christina Nolan, District of Vermont; Zach Terwilliger, Eastern District of Virginia; Tom Kirsch, Northern District of Indiana; and Nicholas Trutanich, District of Nevada.
“I am pleased to appoint these nine outstanding U.S. Attorneys to this key advisory committee. I am confident that they will serve with distinction,” Attorney General William P. Barr said. “The U.S. Attorneys who comprise the Attorney General’s Advisory Committee play a critical role in carrying out the Department of Justice’s important work, including its efforts to reduce violent crime, combat the opioid crisis, protect the most vulnerable, and enforce the rule of law.”
U.S. Attorney Justin Herdman and five other U.S. Attorneys will continue serving on the committee.
“I am honored to continue to serve on the Attorney General’s Advisory Committee,” Herdman said. “My colleagues around the country are doing important work to reduce violent crime, combat the drug abuse epidemic and enforce our nation’s laws.”
Attorney General Barr also announced that U.S. Attorney for the Northern District of Texas Erin Nealy Cox, a current member, will replace U.S. Attorney John Huber as the Vice Chair of the AGAC.
Chaired by U.S Attorney for the District of Columbia, Jessie K. Liu, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management, and operational issues impacting U.S. Attorneys’ Offices.
The bios of all U.S. Attorneys are available here.
U.S. Attorney Announces the Indictment of 13 Individuals for Federal Firearms ChargesRead the Press Release
Memphis, TN – On September 26, 2019, a federal grand jury in Memphis indicted 13 individuals for federal firearms violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
As charged in the indictments, all 13 of the defendants are prohibited by federal firearms laws from possessing firearms as a result of either prior violent felony convictions, prior drug felony convictions, or prior misdemeanor domestic violence convictions.
U.S. Attorney D. Michael Dunavant said: "Violent crime reduction is the top priority of this office and the Department of Justice. Many violent crimes are committed by prohibited persons with firearms, including convicted felons, persons with a history of domestic violence, and persons possessing firearms in furtherance of crimes of violence and drug trafficking. Under our PSN initiative, we focus on removing firearms from the hands of prohibited persons, and removing dangerous offenders from our streets. This office will aggressively prosecute and seek mandatory federal sentencing guidelines to target and remove from our communities those armed career criminals and career drug offenders who illegally possess firearms in Memphis and across West Tennessee. We are Fed Up. Gun Crime is Max Time."
Several defendants charged in this series of indictments are alleged to be convicted felons. Under federal law, it is illegal for an individual convicted of a felony to possess a firearm. This is a violation of Title 18, United States Code (USC), § 922(g)(1). A violation of this section is punishable by a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years. The penalty for a violation of § 922(g)(1) is enhanced when a defendant has a prior criminal record that includes three convictions for a violent felony or serious drug offenses. Under this enhanced sentencing provision, the defendant is subject to a mandatory minimum statutory sentence of at least 15 years imprisonment, and up to a maximum sentence of life imprisonment.
Federal firearms laws also prohibit an individual convicted of a misdemeanor crime of domestic violence from possessing a firearm. This is a violation of Title 18, USC, § 922(g)(9). An individual convicted of violating this section is subject to a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years.
It is also against federal law to possess or use and carry a firearm during or in relation to a crime of violence or a drug trafficking crime. This is a violation of Title 18, USC, § 924(c). A violation of this section is punishable by a mandatory minimum consecutive sentence of at least five years imprisonment and up to a maximum of life imprisonment.
Those charged in this recent group of indictments include:
Tico Hopson, 25, of Memphis, was charged with possessing a SCCY 9 mm pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Special Assistant U.S. Attorney Sam Winnig is prosecuting this case on behalf of the government.
Robert Webb, 40, of Memphis, was charged with possessing a Smith & Wesson .40 caliber pistol after previously being convicted of a misdemeanor crime of domestic violence, in violation of Title 18, USC, § 922(g)(9). Assistant U.S. Attorney Raney Irwin is prosecuting this case on behalf of the government.
Courtney Peterson, 31, of Memphis, was charged with possessing a stolen Sig Sauer .40 caliber handgun after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Christopher Cotten is prosecuting this case on behalf of the government.
William Martin, 29, of Memphis, was charged with possessing a firearm in furtherance of drug trafficking crime in violation of Title 18, USC, § 924(c); possession of a Glock 9 mm caliber pistol, a Ruger .380 caliber pistol, and a Remington Arms, Inc. 7 mm Magnum caliber rifle after previously being convicted of a felony in violation of Title 18, USC, § 922(g)(1); and possession of methamphetamine with intent to distribute, in violation of Title 18, USC, § 841(a)(1). Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
Euriqueo Holloway, 42, of Memphis, was charged with possessing a firearm in furtherance of drug trafficking crime in violation of Title 18, USC, § 924(c); possession of an American Tactical Incorporated .300 Blackout caliber pistol, a Jimenez Arms 9 mm caliber pistol, and a Remington Arms 12 gauge shotgun after previously being convicted of a felony in violation of Title 18, USC, § 922(g)(1); and possession of marijuana with intent to distribute, in violation of Title 18, USC, § 841(a)(1). Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
Kaleb Green, 29, of Memphis, was charged with possessing a Smith & Wesson 9 mm Parabellum caliber pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
Michael Covington, 30, of Memphis, was charged with possessing PMC 9 mm Luger caliber ammunition after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
Demarcus Burks, 33, of Memphis, was charged with possessing a Kel-tec 9 mm pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Marques Young is prosecuting this case on behalf of the government.
Jeremiah Williams, 34, of Memphis, was charged with possessing a Taurus 9 mm pistol after previously being convicted of a misdemeanor crime of domestic violence, in violation of Title 18, USC, § 922(g)(9). Assistant U.S. Attorney Raney Irwin is prosecuting this case on behalf of the government.
Kenneth Taylor, 31, of Memphis, was charged with possessing a Sturm, Ruger & Company 9 mm caliber pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1). Assistant U.S. Attorney Raney Irwin is prosecuting this case on behalf of the government.
Omar Fair, 29, of Memphis, was charged with possessing a Rossi (Taurus International) .357 caliber revolver after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1); and after previously being convicted of a misdemeanor crime of domestic violence, in violation of Title 18, USC, § 922(g)(9). Special Assistant U.S. Attorney Sam Winnig is prosecuting this case on behalf of the government.
Montinez Wright, 30, of Memphis, was charged with possessing a Smith & Wesson .40 caliber pistol after previously being convicted of a felony, in violation of Title 18, USC, § 922(g)(1); and while on the grounds and premises of a school zone, the Sherwood Elementary School, in violation of Title 18, USC, § 922(q)(2)(A). Assistant U.S. Attorney Will Crow is prosecuting this case on behalf of the government.
Jason Smith, 36, of Memphis, was charged with possessing a Diamondback multi-caliber pistol in furtherance of drug trafficking crime in violation of Title 18, USC, § 924(c); possession of a firearm after previously being convicted of a felony in violation of Title 18, USC, § 922(g)(1); and possession of cocaine base with intent to distribute, in violation of Title 18, USC, § 841(a)(1). Assistant U.S. Attorney Neal Oldham is prosecuting this case on behalf of the government.
These federal firearms cases are part of Project Safe Neighborhoods (PSN) initiative, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, the PSN Task Force was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, and local law enforcement and the community to develop effective, locally based strategies to reduce violent crime. The PSN Task Force includes the U.S. Attorney’s Office; the Shelby County District Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through targeted investigations and aggressive prosecution.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Announces the Closing of an Investigation After Last Defendant Involved in Unemployment Insurance Benefits Scheme Is Sentenced TodayRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced late today Diane McKinny, 66, of Rutherfordton, N.C., to three years of probation, ten months of which she will spend in home confinement, for her role in an unemployment benefits scheme while working as a payroll clerk and corporate secretary for Diverse Corporate Technologies, Inc. (DCT), announced U.S. Attorney Andrew Murray.
In July 2017, the United States Attorney’s Office issued a statement acknowledging the opening of a federal criminal investigation into alleged criminal activities of certain members of the Word of Faith Fellowship (WoFF). As a result of the investigation, in addition to McKinny, her co-conspirator, Marion “Kent” Covington, was previously sentenced to 34 months in prison for orchestrating the fraudulent scheme. Two other WoFF members, Dr. Jerry Gross and Jason Lee Gross, received probationary sentences for executing a similar unemployment benefits scheme at the Foot & Ankle Center of the Carolinas, P.A., a podiatry clinic located in Forest City, N.C. At today’s sentencing hearing, Judge Reidinger ordered McKinny to pay $466,960.30 as restitution, jointly and severally with Covington, Dr. Jerry Gross and Jason Lee Gross.
In making today’s announcement, U.S. Attorney Murray said, “I want to thank Homeland Security Investigations, the Office of Inspector General of the Department of Labor, and the SBI for their outstanding investigation of this matter. I also want to thank Rutherford County District Attorney Ted Bell for his continued coordination and assistance throughout this investigation. Following an exhaustive review and evaluation of all of the available information, the United States Attorney’s Office has concluded its investigation into this matter.”
“Diane McKinny conspired with her co-defendant to defraud the State of North Carolina in an unemployment insurance (UI) fraud scheme by placing DCT’s employees on UI benefits while those employees continued to work at the business in excess of program eligibility requirements. We will continue to work with our law enforcement partners to protect the integrity of the UI system from those who exploit these benefit programs,” said Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“Unemployment insurance benefits are intended as a safety net for the state’s residents who truly find themselves out of work. Thanks to the investigative work of our law enforcement partners, we were able to expose the benefit fraud committed by this defendant,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte.
“While it takes coordination to pull off a fraud scheme like this one, it takes even greater coordination to investigate and prosecute individuals who think it’s okay to take advantage of North Carolina taxpayers. I am grateful for the work of our agents, Homeland Security Investigations Charlotte, the Department of Labor - Office of the Inspector General and U.S. Attorney Murray in working together to ensure justice is served,” said SBI Director Robert Schurmeier.
According to court documents filed in this and related cases and statements made in court, Covington was the president, owner, and registered agent of DCT, a plastics manufacturing company located in Rutherford County, N.C., where McKinny was employed. In late 2008, DCT was struggling financially. Covington, with the assistance of McKinny, orchestrated a scheme to defraud the State of North Carolina by placing DCT employees on Unemployment Insurance Benefits (UI Benefits) while those employees continued to work at DCT in excess of what was permitted by the program eligibility requirements. The scheme allowed DCT to reduce the cost-of-labor component of its cost-of-goods-sold, thereby increasing its net profitability.
According to court records, in November or December 2008, in order to accomplish the scheme, Covington “laid off” nearly all of the employees at DCT. Some employees were provided with separation notices and were instructed on how to file their own claims for UI Benefits. Those employees received UI Benefits based on their asserted “totally unemployed” status. Next, as court records show, Covington called a business meeting at DCT and informed the remaining DCT employees that the company could no longer afford to pay their wages, and that they therefore would be placed on UI Benefits, but that Covington expected the employees to continue to work at DCT, just as they had before they were laid off, in order to help the business survive. Around the same time, McKinny filed claims for UI Benefits on behalf of the employees whom Covington had required to continue working at DCT while they received UI Benefits. In filing the necessary information for UI Benefits, McKinny certified the claimants’ initial and continuing eligibility to receive those benefits.
At Covington’s direction, at least five of the employees for whom McKinny made claims for UI Benefits then continued to work at DCT on a full-time or near-full-time basis while collecting UI Benefits every week. Through the operation of the scheme outlined above, the co-defendants obtained more than six months of free labor for DCT, paid for by the government, instead of by the business itself.
By September 2009, other businesses run by members of the Word of Faith Fellowship, the church community with which Covington and McKinny were affiliated, were facing their own financial struggles related to the economic downturn. Court records show that Covington, McKinny, and others began to promote the scheme that they had devised at DCT to those businesses, and several additional businesses implemented versions of the scheme. In total, between November 2008 and March 2013, these various implementations of the scheme resulted in well over $250,000 in fraudulent claims for UI Benefits.
In making today’s announcement U.S. Attorney Murray commended the Department of Labor, Office of Inspector General, Homeland Security Investigations, and the SBI for their thorough investigation of this case.
Assistant U.S. Attorney Daniel Bradley, of the U.S. Attorney’s Office in Asheville, prosecuted the cases related to this investigation.
U.S. Air Force Master Sergeant Indicted with Federal Firearm and Drug ChargesRead the Press Release
LAS VEGAS, Nev. – An active-duty United States Air Force Master Sergeant currently assigned to Nellis Air Force Base in Las Vegas was indicted by a federal grand jury on September 24, 2019, with federal firearm and drug trafficking charges, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
The indictment charges Michael Reimers, 39, of Las Vegas, with two counts of distribution of a controlled substance, one count of engaging in the business of dealing in firearms without a license, and one count of sale of a firearm to a prohibited person.
According to allegations in the indictment, from July 2019 to September 2019, Reimers sold cocaine and more than 50 grams of methamphetamine. In addition, he sold an AK-47 7.62mm caliber rifle, a .25 caliber handgun, and a 12 gauge shotgun without a license. The shotgun was sold to an illegal alien.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the DEA, along with the Las Vegas Metropolitan Police Department and Henderson Police Department. Assistant U.S. Attorney Shaheen Torgley is prosecuting the case.
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Two Washington Parish Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DERRICK MARK, a/k/a “Dopeman,” age 40, and CHRISTOPHER HARRIS, age 29, both residents of Bogalusa, Louisiana, were charged September 6, 2019, in a five-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiring to distribute and possess with intent to distribute methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to the indictment, beginning at a time unknown, but prior to April 5, 2019, and continuing until the present, MARK and HARRIS conspired with each other to distribute and possess with intent to distribute fifty grams or more of a mixture or substance containing a detectable amount of methamphetamine. Both MARK and HARRIS are also charged with distribution of a mixture or substance containing a detectable amount of methamphetamine and MARK is charged with possessing a firearm in furtherance of a drug trafficking crime.
If convicted, both MARK and HARRIS face a mandatory minimum term of imprisonment of five years and a maximum of forty years’ imprisonment, a fine of up to $5,000,000.00 and at least four years of supervised release following any term of imprisonment. If convicted of the firearms offense, MARK faces an additional five years’ imprisonment to run consecutive to any other sentence imposed against him.
This prosecution is part of an extensive investigation by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and firearms in the Bogalusa area.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney André Jones.
Two Men Indicted for Fentanyl DistributionRead the Press Release
BOSTON – Two New York men were indicted yesterday by a federal grand jury in Boston with fentanyl distribution charges.
Yamel Cuevas Gonzalez, 33, and Carlos Nunez, 47, were indicted on one count each of conspiracy to distribute and possession with intent to distribute fentanyl and multiple counts of distribution and possession of fentanyl. Gonzalez and Nunez were charged by criminal complaint and arrested on Aug. 5, 2019. Gonzalez is currently in custody and Nunez was released on conditions.
According to the charging documents, Gonzalez and Nunez conspired to distribute more than 400 grams of fentanyl between May and August of 2019. It is also alleged that Gonzalez distributed more than 400 grams of fentanyl on three separate occasions in May, June and August of 2019. Nunez is also charged with distributing more than 400 grams of fentanyl on two occasions in July and August of 2019. The government is also seeking forfeiture of $97,000 as well as a 2010 Honda Accord.
Both men face mandatory minimum sentences of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason J. Molina, Acting Special Agent in Charge of Homeland Security Investigations, made the announcement today. Valuable assistance was provided by the Dedham Police Department. Assistant U.S. Attorney Nadine Pellegrini of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Are Sentenced to Prison for Bank Fraud ConspiracyRead the Press Release
CHARLOTTE, N.C. – Brady Raymond Frick, Jr., 39, and Timothy Ray Canon, Jr., 27, both of Charlotte, were sentenced to prison today by U.S. District Judge Robert J. Conrad, Jr. for executing a bank fraud scheme involving stolen mail, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Frick was sentenced to 61 months in prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Canon was sentenced to a year and a day in prison for conspiracy to commit bank fraud. Both Frick and Canon were also ordered to serve terms of supervised release and to pay $81,322.14 in restitution.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service, joins the U.S. Attorney’s Office in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from April 2017 to November 2017, Frick and Cannon carried out a bank fraud scheme using stolen mail to defraud financial institutions. Court records show that the co-conspirators obtained the stolen mail by targeting high-end neighborhoods in the Charlotte area. In order to avoid detection, Frick rented luxury vehicles to drive around the targeted neighborhoods, while Canon collected the mail. As part of the criminal scheme, Frick and Canon stole mail that contained the victims’ bank checks, credit card convenience checks, credit cards, and other bank account information, and used the information to steal money from the victims and to make unauthorized transactions at the expense of federally-insured financial institutions.
In addition to Frick’s 61-month sentence, Judge Conrad also imposed an additional two years in prison for Frick’s supervised release violation related to a 2009 conviction for theft of mail and possession of a firearm by a felon.
In making today’s announcement, U.S. Attorney Murray thanked the USPIS for leading the investigation, and commended the Charlotte Mecklenburg Police Department for their invaluable assistance. This case is the result of the Charlotte Financial Crimes Task Force (CFCTF), which was formed in 2016 by the U.S. Postal Inspection Service and comprises over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the task force is to focus on the identification and development of financial fraud investigations in the Charlotte area. Based on crime trends in the area, the task force began to focus its efforts on violent offenders with lengthy criminal histories who are committing fraud. Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Two Medical Doctors Charged with Acquiring Controlled Substances by Fraud and Identity TheftRead the Press Release
PENSACOLA, FLORIDA – Robert Patrick Jensen, 49, and Michael T. Harris, 44, both of Gulf Breeze, Florida, appeared in federal court this week for their initial appearances after they were indicted by a federal grand jury in Pensacola on charges of acquiring controlled substances by fraud and identity theft. The indictments against the two doctors were announced by Lawrence Keefe, United
States Attorney for the Northern District of Florida.“These indictments show how pervasive our nation’s drug abuse problem is and how it can ravage any part of our society,” Keefe said. “The U.S. Attorney’s Office will continue to vigorously pursue drug crimes, wherever they occur.”
The indictment charging Jensen alleges that between December 3, 2014, and July 7, 2016, he knowingly acquired and obtained controlled substances – namely tramadol and dextroamphetamine – by misrepresentation, fraud, forgery, deception, and subterfuge. The indictment also alleges that between those same dates, Jensen knowingly and unlawfully used another person’s identification to acquire the controlled substances by fraud.
The indictment charging Harris alleges that between November 4, 2015, and August 11, 2016, he knowingly acquired and obtained controlled substances – methadone, morphine sulfate, oxycodone, and alprazolam – by misrepresentation, fraud, forgery, deception, and subterfuge.
The indictment also alleges that between those same dates, Harris knowingly and unlawfully used another person’s identification to acquire the controlled substances by fraud.Jensen and Harris each face the following potential penalties: • Acquiring controlled substances by fraud: a maximum of 4 years in prison; • Identity theft: a maximum of 20 years in prison.
This case resulted from an investigation by the Drug Enforcement Administration, the Santa Rosa
County Sheriff’s Office, and the Gulf Breeze Police Department. Assistant United States Attorney J.
Ryan Love is prosecuting the case.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.Two Individuals Charged with Illegally Purchasing A Firearm Used in Three ShootingsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint against SEQUANA CIGOLO, 38, and JASON LYNNDROTTI WINSTON, 48, for their roles in illegally supplying a firearm that was used in multiple shootings in Minneapolis, Minnesota and Chicago, Illinois. CIGOLO and WINSTON were arrested on September 25, 2019. They will make their initial appearances today at 2:00 pm before Magistrate Judge Becky R. Thorson in U.S. District Court in Minneapolis, Minnesota.
According to allegations in the criminal complaint and law enforcement affidavit, on September 18, 2019, in Chicago, Illinois, while walking to lunch, “Individual A,” was shot in the back with a 9mm semi-automatic pistol by “Individual B,” leaving her paralyzed. Chicago Police Department (CPD) Officers responded, collected evidence, and subsequently identified Individual B as the suspect. On September 21, 2019, CPD Officers located Individual B and attempted to take him into custody. Individual B shot a CPD Officer three times using a 9mm semi-automatic pistol before fleeing. Hours later, CPD Officers again located Individual B and while attempting to take him into custody, Individual B fired several shots. CPD Officers exchanged gunfire with Individual B, wounding him and subsequently taking him into custody.
According to allegations in the criminal complaint and law enforcement affidavit, an urgent firearms trace by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) indicated that the 9mm semi-automatic pistol that was recovered during Individual B’s arrest, was purchased by CIGOLO on July 11, 2019, from Bill’s Gun Shop in Robbinsdale, Minnesota. Law enforcement agents learned that CIGOLO’s brother was the victim of a shooting on July 28, 2019. A forensic comparison of the ballistic evidence from all three crime scenes (two in Chicago and one in Minneapolis) revealed that the firearm used in the Minneapolis shooting was the same 9mm semi-automatic pistol used in the Chicago shootings, and was the same firearm CIGOLO purchased on July 11, 2019.
According to allegations in the criminal complaint and law enforcement affidavit, on September 24, 2019, during an interview with law enforcement, CIGOLO admitted to purchasing a firearm for her ex-boyfriend’s cousin, WINSTON, who had asked her to do so because he was a convicted felon and therefore could not legally purchase a firearm himself. CIGOLO admitted to lying on the ATF Form 4473, stating that she was purchasing the firearm for herself, when in fact she was not. After purchasing the 9mm semi-automatic pistol, CIGOLO gave the firearm to WINSTON, who paid her approximately $250.00. That same day, law enforcement interviewed WINSTON at his residence, where they found a pistol box and the original pistol safety lock for a 9mm semi-automatic pistol, and a magazine loaded with 9mm rounds of ammunition. WINSTON admitted to transferring the 9mm semi-automatic pistol to the individual who was charged in Hennepin County with the July 28, 2019, shooting of CIGOLO’s brother.
“The Chicago Police Department works tirelessly on a daily basis to stem the flow of illegal firearms into the city. Prohibited persons and those who supply firearms to those individuals will be held accountable and brought to justice,” said Superintendent Eddie Johnson of the Chicago Police Department. “I would like to extend my gratitude to the special agents of the ATF Chicago and St. Paul Field Divisions and the officers of the Minneapolis Police Department who worked hand in hand with our officers over the course of this investigation.”
This case is the result of an investigation conducted by the ATF Chicago Field Division, the Chicago Police Department, the ATF St. Paul Field Division, and the Minneapolis Police Department.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is being prosecuted by Assistant U.S. Attorney Nathan H. Nelson.
Defendant Information:
SEQUANA CIGOLO, 38
Minneapolis, Minn.
Charges:
- Making a false statement to acquire firearms (straw purchase of a firearm), 1 count
JASON LYNNDROTTI WINSTON, 48
Minneapolis, Minn.
Charges:
- Making a false statement to acquire firearms (straw purchase of a firearm), 1 count
- Aiding and abetting felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three-Time Felon Sentenced to Federal Prison for Possessing Loaded Firearm with Obliterated Serial NumberRead the Press Release
A convicted felon who was stopped with a loaded firearm while under the influence of drugs in Waterloo was sentenced today to more than six years in federal prison.
Jesus David Jimenez, age 33, from Waterloo, Iowa, received the prison term after a May 2, 2019 guilty plea to being a felon and drug user in possession of a firearm.
At the guilty plea, Jimenez admitted he possessed a pistol in Waterloo, Iowa, in September 2018. Court documents reflect that Waterloo officers saw Jimenez walking on a public street, apparently intoxicated. Jimenez had in his possession a loaded .45 caliber pistol with an obliterated serial number. Jimenez admitted that he assumed the gun had been stolen because its serial number had been removed. Jimenez’s backpack contained methamphetamine, cocaine, two syringes, marijuana, and two digital scales.
Before moving to Waterloo in 2017, Jimenez was convicted of two felonies in California involving firearms. He was convicted of committing a robbery involving a carjacking with a gun. Jimenez was later convicted of assault with a gun in relation to a drive-by shooting. He was as also convicted of another felony for evading a peace officer.
Jimenez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Jimenez was sentenced to 78 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Jimenez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-02016-LTS-MAR.
Follow us on Twitter @USAO_NDIA.
Three Washington Parish Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – TREVION HARRIS, a/k/a “TRIGGA,” age 22, JONZARRION HARRIS, a/k/a “GEE,” age 19, and DEMARQUIEZ HARRIS, age 24, all residents of Bogalusa, Louisiana, were charged September 6, 2019, in a twelve-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiring to distribute and possess with intent to distribute methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to the indictment, beginning at a time unknown, but prior to November 30, 2018, and continuing until the present, TREVION HARRIS, JONZARRION HARRIS, and DEMARQUIEZ HARRIS conspired with each other to distribute and possess with intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine. All three individuals are also charged with distribution of a mixture or substance containing a detectable amount of methamphetamine.
If convicted, all three individuals face a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00 and at least five years of supervised release following any term of imprisonment.
This prosecution is part of an extensive investigation by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and firearms in the Bogalusa area.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney André Jones.
Three Facing Federal Charges After Carthage Bank RobberyRead the Press Release
NASHVILLE, Tenn. – September 26, 2019 – Three mid-state individuals are facing federal bank robbery charges following the Tuesday afternoon robbery of the Citizen’s Bank of Carthage, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
David Reynolds, 28, Joe Betty, 22, and Tiffany Garcia, 27, all of Gallatin, Tennessee, were charged yesterday in a criminal complaint following their arrests Tuesday afternoon on Interstate 40, near Lebanon, Tennessee.
According to the complaint, on Tuesday afternoon, three individuals entered the Citizen’s Bank on Dixon Springs Highway in Carthage, Tennessee and one of the individuals handed a teller a note demanding $15,000. The robber motioned to his waist indicating a gun. When the teller told the robber that there was not enough cash in the drawer to fulfill the demand, the robber asked where additional cash was. The teller then motioned toward the vault behind the teller counter. The robber then went behind the counter, pushed the teller out of the way and began taking cash from the vault and instructed the other two suspects to help him.
The suspects then fled the bank in a red Chevrolet Impala and a bank teller notified police. Officers from the Smith County Sheriff’s Department and the Carthage Police Department observed the suspects fleeing the bank and attempted to stop them but the suspects continued to flee. Multiple law enforcement agencies became involved as the suspects fled. The vehicle was subsequently stopped on Interstate 40, near Lebanon and four individuals were apprehended including Reynolds, Betty and Garcia, along with $65,000 cash. The other individual was a juvenile and was taken into custody by the Smith County Sheriff’s Department.
After reviewing the bank surveillance video, FBI agents determined that approximately five minutes before the robbery, Tiffany Garcia entered the bank and spoke to a teller. The complaint alleges that Garcia was “casing” the premises immediately before the robbery.
If convicted, the defendants face up to 20 years in prison.
This case is being investigated by the FBI. Other agencies involved in the pursuit and apprehension include the Tennessee Highway Patrol; the Wilson County Sheriff’s Department; and the Lebanon Police Department. Assistant U.S. Attorney Rob McGuire is prosecuting the case.
The charge is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Three Bozeman area men sentenced in drug overdose investigationRead the Press Release
MISSOULA—An investigation into Bozeman area pill overdoses in 2017 resulted in the sentencing today of three men convicted of drug trafficking and other charges, U.S. Attorney Kurt Alme said.
Dylan Joseph Jardin, 21, of Bozeman, was sentenced to seven years in prison and three years of supervised release. He was ordered to pay $10,925 restitution and to forfeit $4,012. Jardin pleaded guilty in June to conspiracy to distribute and possession with intent to distribute cocaine, methamphetamine, oxycodone and carfentanil.
Rady Charles Waters, 22, was sentenced to one year and one day in prison and three years of supervised release. Waters pleaded guilty in June to possession with intent to distribute cocaine.
Artemus Lavelle Brock, also known as “Al Beezy”, 30, was sentenced to three years of probation. Brock pleaded guilty in June to possession of cocaine, a misdemeanor.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said in court documents that investigators uncovered a drug distribution ring that led to Jardin and the co-defendants after law enforcement in Gallatin County responded to a series of drug overdoses in September 2017.
Five persons who overdosed were revived after being given Narcan, which is an emergency treatment to restore breathing in cases of opiate and narcotic analgesic overdoses.
In interviews with law enforcement, Jardin admitted to distributing oxycodone pills and that he was aware of some of the overdoses. Jardin moved to Montana in 2015 and began selling cocaine, Xanax, meth, marijuana, oxycodone and other drugs. He obtained some of the pills through the dark web and had other sources who typically mailed drugs to him at various addresses in Bozeman. Jardin said he bought meth from sources in Las Vegas and sold drugs, including cocaine, to co-defendants Brent McCarthy, Waters and Brock.
Waters, prosecutors said, told law enforcement that he bought and received drugs from Jardin and acknowledged he had been selling cocaine.
McCarthy was convicted in the case and is pending sentencing.
Assistant U.S. Attorneys Jessica Betley and Tom Bartleson prosecuted the case, which was investigated by the Drug Enforcement Administration and the Missouri River Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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