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26 September 2019
Thirty-One Defendants Charged in Takedown of Two Separate Burlington County Drug Trafficking OrganizationsRead the Press Release
Twenty-eight Arrests Made in Coordinated Takedown by Federal and State Law Enforcement
TRENTON, N.J. – Federal criminal charges have been filed against 31 individuals for their roles as members, associates, and suppliers of multiple drug-trafficking conspiracies that distributed cocaine, crack cocaine, and heroin in the Burlington County, New Jersey, area, U.S. Attorney Craig Carpenito announced today.
Twenty-eight defendants were arrested today, one was already in state custody, and two remain at large. Those arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court. (See chart below.)
The first complaint charges 20 defendants in two overlapping drug conspiracies involving the distribution of cocaine and crack cocaine in the Burlington County area. This organization is allegedly operated by Herbert Mays of Willingboro, New Jersey.
The second complaint charges 12 defendants with three interrelated drug conspiracies involving the distribution of cocaine, crack cocaine, and heroin. Talib Conway of Philadelphia is described in the complaint as a leading member of this organization. One defendant, Teron Huggins, is charged in both complaints.
“The defendants charged in this case were responsible for moving large quantities of dangerous drugs through the streets of Burlington County and elsewhere,” U.S. Attorney Carpenito said. “Taking this number of people off the street required a massive and coordinated effort by our office and other federal and state law enforcement organizations. These arrests should go a long way toward making our streets safer.”
“The success of today’s operation is largely attributed to the close working relationship between federal, state, and local law enforcement,” FBI Special Agent-in-Charge Gregory W. Ehrie, Newark, said. “This collaborative effort to address violent, drug traffickers within our local communities is just one example of how highly the FBI values its partners. To them, I would like to say ‘thank you’ for trusting us, lending their support, and playing a critical role making our community safer. To the criminal element that escaped arrest this time around – know that we aren't finished.”
“Today's arrests are a testament to ATF's commitment to stand with our local, state, and federal partners to expend every resource available to make our communities safer,” ATF Special Agent in Charge Charlie J. Patterson said. “Arresting criminals that contribute to the violence in our communities will continue to be ATF's top priority.”
According to the documents filed in this case and statements made in court:
Between July 2019 and September 2019, the defendants and others engaged in multiple and overlapping narcotics conspiracies that operated primarily throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, Edgewater Park, Pemberton and Mount Laurel – and which sought to profit from the distribution of cocaine, crack cocaine, and heroin. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, and other investigative techniques, law enforcement learned that defendants obtained regular supplies of cocaine from conspirators in the Philadelphia area, then redistributed that cocaine, portions of which defendants converted into crack cocaine, to distributors, sub-dealers, and end-users throughout Burlington County and elsewhere. During the wiretap portion of the investigation, law enforcement intercepted numerous communications among the conspirators discussing cocaine, crack cocaine, and heroin quality and availability, pricing, packaging, quantity, and customer satisfaction.
The counts of conspiracy to distribute at least five kilos of cocaine carry a maximum penalty of life in prison and a fine of $1 million. The counts of conspiracy to distribute 280 grams or more of crack cocaine carry a maximum potential penalty of life in prison, and a maximum fine of $10 million. The counts of conspiracy to distribute 100 grams or more of heroin carry a maximum penalty of 40 years in prison and a fine of $5 million. The counts of conspiracy to distribute 28 grams or more of crack cocaine carry a maximum potential penalty of 40 years in prison and a fine of $5 million.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson; detectives of the Burlington County Prosecutor’s Office, under the direction of Burlington County Prosecutor Scott Coffina; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Director of Public Safety Kinamo Lomon; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesche; officers of the Edgewater Park Police Department, under the direction of Chief of Police Robert Hess; officers of the Mount Laurel Police Department, under the direction of Chief of Police Stephen Reidener; officers of the Ewing Police Department, under the direction of Chief of Police John Stemler; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; officers of the Trenton Police Department, under the direction of Director Sheilah Coley, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Martha K. Nye and Ray Mateo of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
*denotes at large
NAME
AGE
RESIDENCE
CHARGE
Herbert Mays
62
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Andre Morton
37
Lower Makefield Township, PA
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Ronnie Dawson
34
Edgewater Park, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Teron Huggins
42
Mount Laurel, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Rufus Williams
44
Eastampton, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Gurnsey Flagg
61
Burlington, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Roniffe Gaines
36
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
John Petrovich
55
Burlington, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Linford Johnson
42
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Nathaniel McCoy
52
Darby, PA
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Anthony Pruitt
46
Edgewater Park, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Shameke Fowler
30
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Julius Thigpen
57
Philadelphia, PA
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Andre Perkins
(already in state custody)
37
Edgewater Park, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Brandon Watts
32
Burlington City, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
*Craig Moore
46
Wilmington, NC
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Tracy Williams
57
Mount Holly, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Samatha Bohlert
48
Mount Holly, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Mecca Grant
33
Burlington, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
April Branson
26
Willingboro, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Talib Conway
39
Philadelphia, PA
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Teron Huggins
42
Mount Laurel, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Jerrod Epps
35
Medford, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Michael Linares
35
Mansfield, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Allan Simeon
39
Browns Mills, NJ
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Joaquin Simeron
36
Westampton, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Jamarl Simeron
39
Delanco, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Jawan Paxton
23
Burlington City, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Andre Williams
20
Browns Mills, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
*Rasheed Pollard
33
Pemberton, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Cemal Wood
31
Pemberton, NJ
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Donte Snow
31
Pemberton, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Third Parent Sentenced to Prison in College Admissions CaseRead the Press Release
BOSTON – A California man became the third parent to be sentenced to prison today in connection with his involvement in the college admissions case.
Stephen Semprevivo, 53, of Los Angeles, Calif., was sentenced by U.S. District Court Judge Indira Talwani to four months in prison, two years of supervised release, 500 hours of community service, and ordered to pay a fine of $100,000. The Court may offset the fine with restitution to be determined at a later hearing. In May 2018, Semprevivo pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. The government recommended a sentence of 13 months in prison, one year of supervised release, a fine of $95,000, and restitution of $105,341.
Semprevivo conspired with William “Rick” Singer and others to have his son admitted to Georgetown University as a tennis recruit, even though his son did not play competitive tennis. As part of the scheme, Semprevivo involved his son as an active participant in the scheme by having him send emails to defendant Gordon Ernst, the Georgetown tennis coach, expressing interest in playing tennis at Georgetown. By April 2016, Semprevivo’s son had been formally admitted to Georgetown and Semprevivo made a purported contribution of $400,000 to Singer’s sham charity, Key Worldwide Foundation. From that account, Singer paid Ernst hundreds of thousands of dollars for facilitating the fraudulent recruitment of Semprevivo’s son to Georgetown as a tennis recruit.
On Tuesday, Sept. 24, 2019, co-defendant Devin Sloane was sentenced to four months in prison, and earlier this month co-defendant Felicity Huffman was sentenced to two weeks in prison.
Ernst is charged by indictment with racketeering conspiracy, and is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Tampa Man Sentenced to Nearly Four Years and Ordered to Pay over $1.2 Million to Victims of Dialing-For-Dollars Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Richard Buffington (49, Clearwater) to 46 months in federal prison for committing wire fraud. The court also ordered Buffington to forfeit more than $1.2 million, which is traceable to the proceeds of the offense, and to pay more than $1.2 million in restitution to the victims of his fraud scheme.
Buffington had pleaded guilty on April 30, 2019.
According to court documents, from at least January 2013 through August 29, 2018, Buffington defrauded approximately 28 investors, from Florida and across the United States, out of more than $1.2 million by selling unregistered, non-exempt securities in the form of preferred shares. He made false and fraudulent representations to victim-investors about the need for funding for Green Street Equities (“GSE”). Buffington, GSE’s listed Chairman and President, pitched GSE as a company focused on investing in “green companies” (i.e., environmentally friendly projects). Buffington’s misrepresentations to investors included that: (1) GSE would go public soon after the investors’ stock purchase, and (2) that GSE would use investor money to acquire ownership interests in various companies in the “green energy” sector. Based on Buffington’s misrepresentations, victim-investors sent funds believing that that Buffington would use such money to fund GSE and its investments or acquisitions. Investors accepted Buffington’s misrepresentations about GSE because prior to 2013, he had successfully raised funds for a company that had gone public and from which investors had profited.
Buffington also made fraudulent representations to “green sector” companies, which he included on GSE’s website and in its Private Placement Memoranda. Some of those companies appear to have been paper companies; others were legitimate companies towards which Buffington had promised any GSE-raised investor funding would be directed to fund their respective “green sector” projects.
In the end, although Buffington marketed GSE as a company making meaningful investments or acquisitions in “green companies,” neither GSE nor Buffington ever made any such investments or acquisitions. Instead, Buffington used any monies that he raised, including money wired by an undercover agent, for his personal benefit, which included drinking, gambling, and drug use.
This case was investigated by the Federal Bureau of Investigation and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
St. Louis City Man Pleads Guilty to Three Armed RobberiesRead the Press Release
St. Louis, MO –Lonzo Patrick, 54, of St. Louis City, MO, pleaded guilty to three counts of robbery and two counts of brandishing a firearm in furtherance of a crime of violence in connection with three separate armed store robberies committed in October 2017. Patrick appeared today before U.S. District Judge Henry Ronnie L. White, who accepted his plea and set a sentencing date of January 8, 2020.
According to the plea agreement, on October 21, 2017, at approximately 7:30 p.m., Patrick entered the O’Reilly Auto Parts located at 1140 North Kingshighway in St. Louis City. After inquiring about purchasing items, Patrick pointed a firearm at the clerk and instructed the clerk to open the cash register. Patrick took money from the register drawer.
On October 25, 2017, at approximately 6:10 p.m., Patrick entered the Phillips 66 store located at 4251 Lindell Boulevard in St. Louis City. He approached the cashier in order to purchase an item but, instead, reached over the counter to remove money from the cash register drawer. When the cashier attempted to close the register drawer, Patrick pulled a firearm and pointed it at the cashier. Patrick then took money from the register drawer.
On October 30, 2017, at approximately 3:30 p.m., Patrick entered the Walgreens store located at 2933 South Kingshighway in St. Louis City. He approached the counter to buy a sucker. During the transaction, Patrick pulled a firearm and pointed it at the clerk. The clerk ran from behind the counter, and Patrick took the money from the cash register.
Each robbery charge carries a penalty of not more than 20 years and/or a fine of $250,000. Each firearm charge carries a penalty of not less than seven years nor more than life and/or fine of $250,000 consecutive to any other sentence imposed. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bird is handling the case.
Southern District of Florida Charges 30 Individuals Responsible for $86 Million in Fraudulent Billing as Part of Healthcare Fraud TakedownRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Atlanta Regional Office, announced that a total of 30 defendants were charged with offenses relating to their alleged participation in various schemes to defraud Medicare, Medicaid and private insurance. The conduct allegedly resulted in more than $86 million in fraudulent billings. Those charged included physicians as well as other medical and business professionals.
The charges announced involve schemes alleged to have billed Medicare, Medicaid and private insurance companies for medically unnecessary services, such as home health, prescriptions drugs, durable medical equipment and addiction treatment services.
“Health care programs provide vital services to Americans,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “Those who perpetuate these pervasive health care fraud schemes steal taxpayer dollars from intended beneficiaries and threaten the viability of government programs. We commend the coordinated and continued efforts of our federal law enforcement partners to root out fraud and abuse in our healthcare system.”
“The defendants charged today allegedly bilked the American people to the tune of millions in fraudulent billings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “All Americans should stand with the Department as we fight the fight against these unscrupulous schemes in Florida, Georgia, and across the country.”
“Being a healthcare professional in the Medicare program is a privilege, not a right. When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office. “Today’s arrests puts corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
“The FBI and its federal, state and local partners are working tirelessly every day to detect and combat schemes like those announced today,” said Special Agent in Charge George L. Piro of the FBI’s Miami Field Office. “Despite our efforts, we still need the public's help in reporting suspicious activity. If anyone suspects they are a victim of health care fraud please call your local FBI office or the HHS Office of Inspector General.”
The following are some of the health care fraud cases have been charged recently in the Southern District of Florida:
Substance Abuse Treatment:
U.S. v. Peter Port, Brian Dublynn, & Jennifer Sanford, Case No. 19-20583-CR-Williams
Peter Port, 64, of Boca Raton, Brian Dublynn, 62, of Fort Lauderdale, and Jennifer Sanford, 57, of Hollywood, were charged for their alleged participation in a scheme to defraud private health insurance companies. Port, Dublynn and Sanford were each charged with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. In addition, Port and Dublynn were each charged with one count of conspiracy to commit money laundering and five counts of money laundering. The defendants caused Safe Haven Recovery Inc. (Safe Haven), a substance abuse treatment facility in Miami, and several clinical laboratories to submit false and fraudulent claims to health insurance plans for addiction treatment services that were not provided as billed and laboratory tests that were not medically necessary. DOJ Trial Attorney David A. Snider is prosecuting this case.
Home Health:
U.S. v. Dr. Richard S. Mallia, Case No. 19-20623-CR-Altonaga
Richard S. Mallia, D.P.M., 55, a podiatrist, was charged by indictment with one count of conspiracy to defraud the United States and to receive kickbacks, one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud, for his role in a health care fraud conspiracy that caused a loss of approximately $7.7 million to the Medicare program. The indictment alleges that Mallia accepted cash kickbacks in exchange for writing medically unnecessary home health prescriptions and also participated in a scheme to submit claims to Medicare for relatively expensive foot procedures that he never performed. DOJ Trial Attorney Alexander Thor Pogozelski is prosecuting this case.
U.S. v. Maribel Sera, Case No. 19-20625-CR-Williams
Maribel Sera, 51, of Hialeah, was charged by information with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the information, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Juan Jose Mesa, et al., Case No. 19-20574-CR-Gayles
Juan Jose Mesa, 58, and Madelaine Varona, 47, both of Miami, owners and/or operators of All Excellent OT-PT Service LLC of Miami and Cruz Healthcare Corp. of Miami, respectively; Sandra Cardona, 47, of Hialeah, an allegedly unlicensed therapist; and Silvia Salvatori, 67, of Pembroke Pines, Florida, a licensed massage therapist, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud. Mesa and Varona were also charged with five and six counts of health care fraud, respectively. The charges stem from Mesa’s and Varona’s alleged roles in a scheme to defraud Part A of the Medicare program of more than $4 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters in exchange for patient referrals. Cardona and Salvatori, who were allegedly not licensed to provide physical therapy, accepted payment from a licensed physical therapist, paid by their co-conspirators, in exchange for allegedly obtaining signed patient visitation forms from Medicare beneficiaries used to submit false and fraudulent claims. Assistant U.S. Attorney Kevin Larsen is prosecuting this case.
U.S. v. Sara Tania Ruiz and Maria Laura Prieto, Case No. 19-20588-CR-Moore
Sara Tania Ruiz, 55, of Hialeah, and Maria Laura Prieto, 60, of Miami, were charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Marisol Padilla, Case No. 19-20589-CR-Martinez
Marisol Padilla, 48, of Hialeah, was charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Ana Maria Fernandez and Berta Leon, Case No. 19-20573-CR-Ungaro
Ana Maria Fernandez, 62, and Berta Leon, 69, of Miami, Florida, were charged with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to use their company ABC Medical Solutions Corp. of Miami, to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah, Florida. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Jocelyn De La Caridad Perez and Joaquin Guevara, Case No. 19-20582-CR-Altonaga
Jocelyn De La Caridad Perez, 41, and Joaquin Guevara, 46, both of Miami, were charged by indictment with one count of conspiracy to receive health care kickbacks. Perez was also charged with one count of conspiracy to commit health care fraud and wire fraud, and Guevara was also charged with three counts of receipt of kickbacks in connection with a federal health care program. According to the indictment, Perez was an administrator of Joe Rehabilitation and Diagnostic, Inc. (Joe Rehab), an outpatient rehabilitation facility in Doral, Florida, that purportedly provided therapy services to Medicare beneficiaries. As part of the fraudulent scheme, Perez allegedly conspired with others to pay kickbacks and bribes for the referral of Medicare beneficiaries to Joe Rehab so their information could be used to submit fraudulent claims to Medicare for services purportedly provided, regardless of whether the Medicare beneficiaries needed or received the services. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
Private Insurance:
U.S. v. Ivan Bejerano, Case No. 19-20591-CR-King
Ivan Bejerano, 49, of Miami, was charged by indictment with seven counts of health care fraud and one count of conspiracy to commit health care and wire fraud. According to the indictment, Dynamic Physical Rehab Inc. (Dynamic) was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From June 2017 through July 2019, Bejerano allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $2.5 million that falsely and fraudulently represented that various health care benefits, primarily physical therapy, were medically necessary, prescribed by a doctor, and had been provided by Dynamic to insurance beneficiaries of Blue Cross Blue Shield (BCBS). Assistant U.S. Attorney Shannon Shaw is prosecuting this case.
U.S. v. Deivys Ernesto Alvarez, Case No. 19-20604-CR-Bloom
Deivys Ernesto Alvarez, 48, of Hialeah, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. According to the indictment, Alvarez was the owner of Diagnostic Center of Medley Inc., a Miami medical clinic. AP & JL Medical Center Inc. (AP & JL) was another Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. Alvarez and co-conspirators allegedly recruited and paid Comcast Corp. and Telemundo Corp. employees, through Diagnostic Center of Medley Inc., and referred those employees and/or the employees’ personal information to AP & JL to fraudulently bill BCBS. Alvarez and his co-conspirators allegedly submitted and caused the submission of false and fraudulent claims, via interstate wires, totaling approximately $800,500. Assistant U.S. Attorney Timothy J. Abraham is prosecuted this case.
U.S. v. Francisco Abreu Tartabull, Case No. 19-20605-CR-Altonaga
Francisco Abreu Tartabull, 53, of Miami, was charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with his role in a $2.1 million private insurance fraud scheme. According to the indictment, Tartabull was the owner and operator of South Dade Medical Center Inc. (South Dade), a Miami medical clinic that purportedly provided Blue Cross Blue Shield insurance beneficiaries with various medical treatments and services. As part of the fraudulent scheme, Tartabull and his co-conspirators submitted more than $2.1 million in fraudulent claims to Blue Cross Blue Shield. These claims falsely represented that the benefits Tartabull’s clinic had billed insurance for were medically necessary, prescribed by a doctor, and had been provided by South Dade to these beneficiaries. As a result of these false claims, Blue Cross Blue Shield paid Tartabull’s clinic more than $920,000. Tartabull then used this ill-gotten money for his own personal use and benefit, and to further the fraud. The FBI investigated this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
Pharmacy:
U.S. v. Elba Cobos Baile and Yolanda Castano, Case No. 19-20581-CR-Cooke
Elba Cobos Baile, 60, and Yolanda Castano, 55, both of Miami, were charged by indictment with four counts of health care fraud and one count of conspiracy to commit health care fraud and wire fraud. Cobos and Castano were the owners and operators of Pharmacy Solution, a retail pharmacy in Miami-Dade County. The indictment alleges that from on or about March 1, 2012 to September 17, 2014, Cobos and Castano submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by Pharmacy Solution to Medicare beneficiaries. As a result of these false and fraudulent claims, Medicare prescription drug plan sponsors allegedly made payments funded by the Medicare Part D Program to the corporate bank accounts of Pharmacy Solution in the approximate amount of at least $2.1 million. Assistant U.S. Attorney Christopher J. Clark is prosecuting this case.
U.S. v. Tania Rodriguez and Rafael Vidal, Case No. 19-20584-CR-King
Tania Rodriguez, 48, and Rafael Vidal, 61, both of Miami, were charged by indictment with one count of conspiracy to commit healthcare and wire fraud and seven counts of health care fraud. According to the indictment, the defendants participated in a conspiracy to use their company, American United Pharmacy Corp. of Miami, to offer and pay kickbacks for the referral of Medicare beneficiaries to their pharmacy, and to submit false and fraudulent claims to Medicare for prescription drugs that were not provided to Medicare beneficiaries. Assistant U.S. Attorney David Turken is prosecuting this case.
U.S. v. Ricardo Ignacio Perez and Ricardo Perez-Leon, Case No. 19-20594-CR-Williams
Ricardo Ignacio Perez, 54, and Ricardo Perez-Leon, 31, both of Miami, the owners and operators of three Miami pharmacies, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud; one count of conspiracy to defraud the United States and pay and receive health care kickbacks; and three counts of health care fraud. The indictment alleges that the defendants participated in a scheme to pay kickbacks and bribes to patient recruiters and to fraudulently bill Medicare drug plan sponsors for prescription medications. The indictment alleges that, during the course of the fraudulent scheme, the defendants received approximately $5.3 million from Medicare drug plan sponsors for prescription medications that were medically unnecessary, never provided and/or never purchased by the defendants’ pharmacies. DOJ Trial Attorneys Sara Clingan and Tim Loper are prosecuting the case.
Durable Medical Equipment:
U.S. v. Steven Kahn and Pamela Edwin, Case No. 19-80169-CR-Rosenberg
Steven Kahn, 61, of Boca Raton, and Pamela Edwin, 33, of Delray Beach, the owner and office manager, respectively, of a Broward county telemedicine company, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and three counts of wire fraud. Kahn was also charged with five counts of money laundering. The indictment alleges that the defendants paid kickbacks and bribes to physicians in exchange for signing doctors’ orders, and that the defendants then sold the doctors’ orders to Medicare providers who used the orders to submit approximately $39 million in fraudulent claims to Medicare. DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.
U.S. v. Jordan Karlick, Michael Moranz and Jordan Chibnick, Case No. 19-80168-CR-Rosenberg
Jordan Karlick, 33, of Boca Raton, Michael Moranz, 32, of Lake Worth, and Jordan Chibnick, 36, of Plantation, the owners of Palm Beach durable medical equipment (DME) companies, were charged by indictment with one count of conspiracy to commit healthcare fraud and wire fraud, one count of conspiracy to defraud the United States and pay kickbacks, four counts of health care fraud, and three counts of payment of kickbacks. The indictment alleges that the defendants paid kickbacks and bribes in exchange for signed doctors’ orders for DME, which the defendants used to fraudulently bill Medicare for over $23 million. The indictment alleges that defendants sought to impede Medicare beneficiary’s ability to return DME that they did not want or need to defendants’ companies, so that defendants could continue to bill Medicare for that DME. DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.
U.S. Attorney Fajardo Orshan commends the investigative efforts of HHS-OIG and FBI.
A criminal complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
South Florida Man Pleads Guilty in Connection with Torture and Kidnapping PlotRead the Press Release
Today, a South Florida man pled guilty to charges arising from his participation in kidnapping a victim at gunpoint and, along with his co-conspirators, facilitating his torture.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Justin Boccio, 33, of Deerfield Beach, pled guilty to conspiracy to commit kidnapping, in violation of Title 18, United States Code, 1201(c); and kidnapping, in violation of Title 18, United States Code, Section 1201(a) (Case No. 19-CR-20261). Boccio is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on December 5, 2019 at 9:00 a.m. He faces a maximum statutory sentence of life in prison.
According to court records, Boccio and co-defendant Serge Nkorina (“Nkorina”), along with others, plotted to kidnap and torture a victim in an attempt to obtain tens of thousands of dollars from him. To facilitate the kidnapping, on or about December 30, 2018, Nkorina and Boccio purchased supplies at a Home Depot in Broward County, Florida. On or about January 5, 2019, the two rented a van from Budget with Florida tag number GHPT19. Then, on January 14, 2019, Boccio entered the victim’s office and made false representations on paperwork inside of the victim’s office. Later that same day, January 14, 2019, Nkorina and Boccio intercepted the victim in a Walmart parking lot in Broward County, Florida. Nkorina and Boccio blindfolded the victim and forced the victim into the rental van. The kidnappers then transported their victim to a storage facility in Margate, Florida, in which they burned the victim’s hands with a blowtorch while threatening to kill him with a firearm and other weapons. The kidnappers demanded information about the victim’s home address, including access codes to the victim’s residence. On or about January 15, 2019, Nkorina visited the premises of the victim’s home while carrying a firearm. Ultimately, also on January 15, 2019, Nkorina and Boccio left the victim, with his hands and feet bound, in his vehicle, which they relocated to the parking lot of Cheetah Gentlemen’s Club in Broward County, Florida.
Boccio is detained in South Florida and Nkorina was arrested and detained in Spain. Nkorina has not yet made his appearance in the South Florida case and is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office in this matter. She thanked the Hallandale Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller in the Southern District of Florida.
The case is 19-20261-CR-CMA, pending before United States District Judge Cecilia M. Altonaga. 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.
Smith County Man Sentenced for East Texas Drug TraffickingRead the Press Release
TYLER, Texas - A 36-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Florencio Campos, Jr., pleaded guilty on March 19, 2019, to conspiracy to possess with intent to distribute and distribution of cocaine and was sentenced to 36 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Campos was also ordered to submit to the forfeiture of $27,810.
According to information presented in court, on May 22, 2018, law enforcement agents executed a search warrant at Campos’ residence where they discovered a number of firearms and ammunition and evidence of drug trafficking activities including several pages of ledgers for tracking illegal cocaine transactions and nearly $28,000 in cash. Agents also recovered cellular phones belonging to Campos that contained text messages from Campos and to Campos relating to illegal cocaine transactions. Campos was indicted by a federal grand jury on June 29, 2018.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety, Smith County Sheriff’s Office, and Tyler Police Department and prosecuted by Assistant U.S. Attorney Alan Jackson.
Sharon Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A Sharon woman was sentenced yesterday in federal court in Boston for stealing Social Security benefits intended for her children.
Stacey Orlando, 60, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (one day), two years of supervised release, and ordered to pay $33,795 in restitution to the Social Security Administration. Orlando was arrested and charged in May 2018.
Orlando’s two children, who received monthly Social Security benefits – which were paid to Orlando as their representative payee – were removed from her care by the Massachusetts Department of Children and Families in May 2011. Orlando failed to inform Social Security that her children were no longer in her custody, and instead, falsely told Social Security that her children lived with her and that she spent all of the benefits she received for their care and support. In reality, from May 2011 through October 2013, Orlando stole $33,795 intended for the benefit of her two children.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Seven Men from Waterloo Sentenced to Federal Prison for Trafficking Crack CocaineRead the Press Release
Seven men, all from Waterloo, Iowa, were sentenced over the last fifteen months in federal court in Cedar Rapids based on their involvement in a crack cocaine trafficking conspiracy. Evidence from various hearings showed the investigation, which was a cooperative effort of numerous law enforcement agencies, included use of wiretaps and confidential sources.
Gregory Porter Washington, age 40, was sentenced on June 13, 2018, to 180 months’ imprisonment and supervised release of ten years. The sentence came after he pled guilty to conspiracy to distribute crack cocaine. Washington had previously been convicted of possession of cocaine and marijuana with intent to deliver in state court.
Ronald Corey, age 62, was sentenced on August 13, 2018, to 57 months’ imprisonment and supervised release of five years. The sentence came after he pled guilty to conspiracy to distribute crack cocaine and distribution of crack cocaine.
Melvin Maurice Grubbs, age 37, was sentenced on October 11, 2018, to 179 months’ imprisonment and supervised release of three years. The sentence came after he pled guilty to two counts relating to the use of a phone to facilitate drug trafficking. Grubbs had previously been convicted possession of marijuana with intent to deliver on two occasions in state court.
Michel Earl Snow, age 42, was sentenced on November 20, 2018, to 197 months’ imprisonment and supervised release of eight years. The sentence came after he pled guilty to conspiracy to distribute crack cocaine. Snow had previously been convicted of delivery of cocaine, possession of crack cocaine with intent to deliver, and delivery of cocaine base.
Deon Marcell Goldsmith, age 38, was sentenced on December 17, 2018, to 46 months’ imprisonment and supervised release of one year. The sentence came after he pled guilty to two counts relating to the use of a phone to facilitate drug trafficking.
Keylynn Landon Goldsmith, age 34, was sentenced on January 3, 2019, to 60 months’ imprisonment and supervised release of one year. The sentence came after he pled guilty to two counts relating to the use of a phone to facilitate drug trafficking. Goldsmith had previously been convicted of ongoing criminal conduct in state court.
Corey Demarcus Jones, age 39, was sentenced on September 24, 2019, to 71 months’ imprisonment and supervised release of six years. The sentence came after he pled guilty to possession with intent to distribute crack cocaine. Jones had previously been convicted of possession of cocaine base with intent to deliver and a drug tax stamp violation in state court.
All seven defendants were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2051.
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Seven Defendants Charged in International Narcotics Conspiracy that Trafficked Pound Quantities of Drugs in Tricked-Up ‘Trap Cars’Read the Press Release
LOS ANGELES – Authorities this morning arrested five defendants charged in a federal grand jury indictment alleging they took part in a drug trafficking ring that imported pound quantities of cocaine and heroin from Mexico, then used modified BMW “trap cars” to distribute those drugs throughout the United States.
The four-count indictment charges a total of seven defendants with conspiracy to distribute controlled substances, and alleges a series of acts between December 2017 and July 2018.
In today’s takedown, law enforcement seized approximately 22 kilograms (48.5 pounds) of cocaine, 22 firearms, two luxury vehicles purchased with drug proceeds, 3 Rolex watches and equipment for making butane honey oil, which contains a much higher percentage of tetrahydrocannabinol (THC) than found in traditional marijuana products.
The five defendants arrested today are expected to make their initial court appearance this afternoon in United States District Court in downtown Los Angeles.
Joel Antonio Villegas, a.k.a. “Junior,” 31, of Downey, and William Ariel Moreno, 29, also of Downey, are accused of being the operation’s ringleaders who obtained kilogram quantities of heroin and cocaine from Mexico for U.S. customers. Villegas and Moreno were found in possession of cocaine and guns in their homes at the time of their arrests this morning. Villegas is an alleged drug distributer who obtains drugs from a Mexican supplier and distributes the narcotics from the Los Angeles area to customers throughout the United States, using both trap cars and commercial shipping companies.
According to the indictment, Villegas directed co-conspirators to buy two 2005 BMW X5 automobiles so they could be outfitted with secret compartments to carry narcotics. Villegas allegedly also arranged for the shipment of two crates containing 55 pounds of marijuana and honey oil to Orlando, Florida. He also advised other members of the conspiracy that commercially shipping, rather than mailing, marijuana and honey oil “better ensured that law enforcement would not intercept the packages and seize the drugs,” the indictment alleges.
The two BMWs belonging to the Villegas organization were stopped on the same day in April 2018 at the U.S.-Mexico border, where officers found hidden compartments inside their engine manifolds, containing multiple kilograms of cocaine and heroin, intended for distribution throughout the United States. Last year, law enforcement seized at least $71,000 in cash, along with pound quantities of cocaine and heroin in connection with this organization.
In addition to the conspiracy charge, Villegas and another co-conspirator also are charged with possessing with intent to distribute 13.3 pounds of cocaine. Two other co-defendants have been charged with possessing with intent to distribute 11 pounds of cocaine.
If convicted on all counts, the defendants would face a statutory maximum sentence of life in federal prison and mandatory minimum sentences of at least 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, U.S. Customs and Border Protection, the California Highway Patrol, the Pasadena Police Department, the South Gate Police Department, and the Jacksonville Sheriff’s Office with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
This case is being prosecuted by Assistant United States Attorneys A. Carley Palmer of the International Narcotics, Money Laundering, and Racketeering Section and Jonathan S. Galatzan of the Asset Forfeiture Section.
Second Hoover Criminal Gang Member Indicted for Racketeering After Murder of Portland ManRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, announced today that a second Hoover Criminal Gang member has been indicted for the 2015 murder of Portland resident Kyle Polk.
Ronald Clayton Rhodes, 34, is charged with murder in aid of racketeering, using and carrying a firearm during a crime of violence, and causing the death of Polk through the use of a firearm.
The indictment alleges that on December 16, 2015, Rhodes, along with co-defendant Javier Fernando Hernandez, 23, also of Portland, murdered Polk for the purpose of maintaining and increasing his position in the Hoover Criminal Gang, a criminal enterprise engaged in racketeering in California, Oregon, Washington and elsewhere.
Rhodes made his initial appearance in federal court today and was detained pending a four-week jury trial on November 12, 2019 before U.S. Chief District Court Judge Michael W. Mosman. Hernandez and Rhodes face the same charges and will stand trial together.
Murder in aid of racketeering carries a maximum sentence of death or life in prison.
According to the indictment, the Hoovers are a criminal street gang operating in Oregon, and are known to engage in acts of violence including murder, assault, robbery, sex trafficking and the distribution of narcotics. The Hoovers originated in Los Angeles in the late 1960s and established a presence in Portland in the early 1980s. The gang has a loose hierarchical structure in which members have different amounts of power and influence based on age and gang activity. To maintain status and increase one’s position in the gang, members were expected to carry out violence on behalf of the enterprise.
This case was investigated by the FBI, the Portland Police Bureau, Multnomah County Sheriff’s Office and Homeland Security Investigations and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is 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.
Sacramento Parolee Indicted for Possession of Multiple FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Dezmaighne McClain, 28, of Sacramento, charging him with two counts of being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, McClain, while on felony parole, sold a firearm to an individual on July 15, 2019, after leaving the parole office. McClain sold the same individual another firearm on July 30, 2019, and continued to discuss potential firearms sales after that date. McClain is prohibited from possessing firearms based on his prior felony convictions. During the search of McClain’s residence, agents recovered an AR-15 “ghost” gun with no serial number and two other firearms and ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.
If convicted, McClain faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Revere Man and Boston Man Charged with Cocaine TraffickingRead the Press Release
BOSTON – A Revere man and a Boston man were indicted yesterday in federal court in Boston with drug trafficking charges.
Edgar Castro, of Revere, and Julio Ortiz, of Boston, were indicted on one count each of conspiracy to distribute, and to possess with intent to distribute, five kilograms or more of cocaine, and one count of possession with intent to distribute five kilograms or more of cocaine. Castro and Ortiz were previously charged by complaint and have been detained since their arrest on Aug. 26, 2019.
According to court documents, an individual in Puerto Rico attempted to ship a box containing approximately 29 kilograms of cocaine to an automotive repair garage in Lawrence. After a routine inspection of the box, employees of the shipping company found packages appearing to be narcotics wrapped in plastic. The shipping company called Customs and Border Protection, who searched the package and found 29 kilograms of cocaine. Federal agents conducted a controlled delivery of the package to the address in Lawrence on Aug. 26, 2019. Upon delivery, Castro and Ortiz were observed unpacking the box and moving containers of cocaine into another vehicle. The defendants were subsequently arrested.
The charges of conspiracy to distribute and possession with intent to distribute more than five kilograms of cocaine carry a mandatory minimum sentence of 10 years and up to a lifetime in prison, at least five years of supervised release, and a fine of up to $10 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; Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigations, New England Field Division; and William Ferrara, Director of Field Operations of U.S. Customs and Border Protection, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Woburn Police Department. Assistant U.S. Attorney Stephen W. Hassink 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.
Raleigh County Woman Indicted on Multiple Counts of Wire Fraud, Bank Fraud, Bankruptcy Fraud and Money LaunderingRead the Press Release
BECKLEY, W.Va. – A federal grand jury returned an indictment yesterday charging a Beckley woman with multiple counts of fraud, announced United States Attorney Mike Stuart. Natalie P. Cochran, 38, owner of Technology Management Solutions (TMS) and Tactical Solutions Group (TSG), was charged in a 26-count indictment with wire fraud, bank fraud, money laundering, aggravated identity theft and bankruptcy fraud.
“A 26-count indictment alleging wire fraud, bank fraud, money laundering, aggravated identity theft and bankruptcy fraud,” said United States Attorney Mike Stuart. “All indictments are serious and this is a serious matter. Ms. Cochran pretended to be a government contractor, intentionally misled investors to raise money for her fraudulent schemes, intentionally stole personal identification information from multiple individuals, falsely marketed herself and her companies as experienced, leading suppliers of government services while never being awarded a single federal contract and having two potential state contracts cancelled, and then engaged in bankruptcy fraud. I want to thank the work of my team and the West Virginia State Police, Secret Service, FDIC and ATF for their tremendous work in this matter.”
“The results of this investigation demonstrate the Secret Service’s commitment to strong partnerships between local, state, and federal law enforcement agencies,” said Thomas Fleming, Resident Agent in Charge of the U.S. Secret Service Charleston Resident Office. “We are committed to protecting our nation’s financial institutions and the citizens of West Virginia. We would like to thank the West Virginia State Police, the ATF, and the FDIC OIG for their cooperation and partnership in this case.”
According to the indictment, Cochran has pretended to be an experienced government contractor since 2017. She advertised TMS and TSG as experienced government contracting businesses. TSG’s website even boasted that it was a leading supplier to the Department of Defense. Investigators learned however, that TSG was never awarded a single federal or state government contract. TMS was awarded two state government contracts, but the State of West Virginia ultimately cancelled these awards because of TMS’ repeated delays in performance.
It is further alleged in the indictment that Cochran received investments from at least 11 individuals in her government contracting businesses, TSG and TMS. Cochran received these investments as a result of her false misrepresentations regarding TSG’s and TMS’ experience and purported success as government contractors. Cochran also received funds from at least one financial institution as a result of her false and misleading statements regarding TSG and TMS. During the course of her fraudulent schemes, Cochran stole identification information from multiple individuals, who were either employed by the federal government or the banking industry. She would then send investors emails that were purportedly from these individuals in order to further her wire fraud and bank fraud schemes.
This past July, Cochran filed for bankruptcy. The indictment further alleges that she made several material misrepresentations within her bankruptcy filing and lied while testifying under oath at her meeting of creditors.
The indictment alleges that Cochran fraudulently obtained over $2.5 million during her scheme and is believed to have spent over $1 million of investor money. Cochran used investor money to fund her lifestyle for over a year and a half, as she was unemployed during that time outside of her work with TSG and TMS. She also used the investor money for extravagant purchases, including jewelry, a 1965 Shelby Cobra, and multiple properties.
If convicted, the defendant faces a maximum penalty of 30 years in prison.
The West Virginia State Police, the United States Secret Service, the Federal Deposit Insurance Corporation (FDIC) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
Please note: An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Qui Tam Lawsuit and Federal Investigation Results in Half a Million Dollar Settlement to Resolve False Claims Act LiabilitiesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph of the Western District of Louisiana announces that Biomedical Research Foundation of Northwest Louisiana and its related companies, and the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College have agreed to pay $531,241.74 in damages and/or civil penalties to resolve claims that they violated the False Claims Act and other laws while operating University Health Hospital in Shreveport.
“Providers who fail to submit accurate data affect beneficiaries who depend on Medicare funding for access to safe and effective healthcare services,” said Joseph. “The United States Attorney’s Office is committed to investigating allegations of fraud concerning Medicare services and we will continue to pursue those whose actions undermine the integrity of the Medicare program and the data it relies upon.”
The Biomedical Research Foundation of Northwest Louisiana and LSU were alleged to have sought and obtained payment from Medicare for procedures that required reporting to a qualified registry. The procedures that they failed to report involved implantable automatic defibrillators, which are electronic devices designed to detect and treat life-threatening tachyarrhythmias.
Medicare coverage for implanting the defibrillators was part of a coverage expansion in 2005, which required that the procedure be studied and analyzed through data submitted to qualified registries. This effort was part of a new Coverage with Evidence Development initiative, which expands access to important new treatments while facilitating the collection of evidence so that the Centers for Medicare and Medicaid Services can continue to monitor the effects of its coverage decisions. The data collected was to be used to ensure the safety and quality of care provided to Medicare patients.
This settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.
The government’s intervention in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The Department of Health and Human Services, Office of Inspector General, This investigated the matter. Assistant U.S. Attorney Melissa Theriot and Affirmative Civil Enforcement investigator Christopher Knighton prosecuted the case.
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Prime Contractor Employee at U.S. Military Bases Sentenced to 28 Months in Prison for $1.4 Million Fraud and Taking KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man employed as a regional manager for a contractor involved with construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix- Lakehurst (Ft. Dix) was sentenced today to 28 months in prison for his role in a fraud scheme that caused losses of $1.4 million, U.S. Attorney Craig Carpenito announced.
James Conway, 48, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud and one count of accepting unlawful kickbacks. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2009 to August 2015, Conway secretly owned a company called Walsh Construction Services, LLC (Walsh Construction), which purported to provide construction services. Using his position as regional manager for a construction contractor, Conway steered subcontracts to Walsh Construction for jobs at PICA and Ft. Dix. To conceal his ownership of Walsh Construction, Conway signed the subcontracts as Keith Walsh, the purported owner or vice president of Walsh Construction. There was, in fact, no person by that name who owned or was the vice president of Walsh Construction.
Conway used Walsh Construction to obtain payments from the construction contractor by submitting invoices and bills on behalf of Walsh Construction for work purportedly performed at PICA and Ft. Dix. Many of the invoices and bills included charges for work that Walsh Construction only partially did, or for work that was not performed at all by Walsh Construction, causing losses of $1.4 million.
Conway also accepted kickbacks totaling $180,345, from four subcontractors who served as subcontractors to the contractor on various construction projects at PICA and Ft. Dix knowing that the subcontractors expected, in return, to obtain favorable treatment from Conway.
In addition to the prison term, Judge Wigenton sentenced Conway to three years of supervised release and ordered him to pay $1.4 million in restitution.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty sentencing.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Pittsburgh Man with Multiple Felony Convictions Indicted on Serious Drug and Firearms CrimeRead the Press Release
PITTSBURGH, PA – A Superseding Indictment was returned against Deon Blair by a federal grand jury in Pittsburgh charging the distribution of heroin, butyryl fentanyl, and fentanyl resulting in serious bodily injury and death, and the commission of related firearms crimes, United States Attorney Scott W. Brady announced today. A federal jury trial has been scheduled to start on October 28, 2019, in Pittsburgh.
The Superseding Indictment charges Blair, age 27, who formerly resided in Pittsburgh, Pennsylvania, with committing the following crimes in February 2017: (1) distributing a mixture containing butyryl fentanyl and fentanyl resulting in serious bodily injury and death; (2) conspiring to distribute and distributing heroin, butyryl fentanyl, and fentanyl; (3) possessing a firearm in furtherance of a drug trafficking crime; and (4) possessing a firearm after 11 prior felony convictions for heroin and cocaine trafficking and firearms crimes in four prior prosecutions.
The law provides for a minimum sentence of 25 years and up to life in prison and a fine of up to $4,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Christy C. Wiegand and Craig W. Haller are prosecuting this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania Board of Probation and Parole, and the Allegheny County Medical Examiner’s Office conducted the investigation leading to the Superseding Indictment in this case.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pierz Business Owner Pleads Guilty to Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald announced the guilty plea of JEFFREY LAWRENCE KLOSS, 38, to one count of tax evasion. KLOSS, who was charged on August 2, 2019, entered his guilty plea on September 24, 2019, before Senior Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, KLOSS owned and operated a tree trimming business in Pierz, Minnesota. From January 2014 through at least December 2017, KLOSS cashed checks from customers payable to his tree trimming business and failed to include those funds as business income on his federal income tax returns. KLOSS failed to report a total of approximately $467,555 in income for calendar years 2014 through 2017. As a result, KLOSS evaded assessment of a total of approximately $152,923 in federal income taxes for calendar years 2014 through 2017.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
Defendant Information:
JEFFREY LAWRENCE KLOSS, 38
Pierz, Minn.
Convicted:
- Tax evasion, 1 count
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Physicians and pharmacy sales reps indicted for kickback conspiracy in which doctors allegedly received money in exchange for writing unnecessary prescriptions of NuedextaRead the Press Release
Two doctors from Northeast Ohio and two drug company salesmen were indicted in federal court for their roles in a kickback conspiracy in which the doctors allegedly received money and other things of value in exchange for writing prescriptions of Nuedexta for patients that did not have the condition.
Named in the 83-count indictment are: Deepak Raheja, 63, of Hudson; Gregory Hayslette, 43, of Aurora; Frank Mazzucco, 41, of Dublin, and Bhupinder Sawhny, 70, of Gates Mills. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks.
According to the indictment:
Raheja is a medical doctor who specialized in psychiatry and neurology whose primary practice location was 2307 West 14th Street in Cleveland. Sawhny is a medical doctor who specialized in neurosurgery whose primary practice location was 6731 Ridge Road in Parma.
Hayslette worked as a pharmaceutical sales representative for Avanir Pharmaceuticals, Inc. from June 2015 through September 2016. He was responsible for marketing Nuedexta, and his territory included Northern Ohio. Mazzucco was the regional business manager and supervised Hayslette.
Avanir manufactured Nuedexta, a drug approved by the FDA solely to treat pseudobulbar affect (PBA). PBA is a condition characterized by involuntary, sudden and frequent episodes of uncontrollable laughing and crying, according to the indictment.
Avanir promoted Nuedexta through a speaker’s bureau, in which Avanir representatives engaged doctors to speak about and promote Nuedexta to other medical professionals. Typical speaking engagements involved dinner at a high-end restaurant in which the doctor made a presentation with a slide deck provided by Avanir. A company sales representative was responsible for inviting attendees and attending the presentation.
Raheja joined Avanir’s speaker’s bureau in February 2011. He gave approximately 211 speaking presentations at various restaurants and doctor’s offices between October 2011 and April 2016. Raheja received approximately $1,500 for each of these purported presentations.
Raheja received approximately $331,550 from Avanir between October 2011 and April 2016. During this time, Raheja wrote approximately 10,088 Nuedexta prescriptions – the highest in the country, according to the indictment.
As part of the conspiracy, Hayslette and Mazzucco incentivized physicians to write Nuedexta prescriptions and thereby increase compensation to themselves. This included:
Hayslette and Mazzucco arranged speaker’s bureau programs, many with little to no educational value, for Raheja, Sawhny and other medical professionals relating to Nuedexta.
Hayslette and Mazzucco facilitated the payment of honoraria and other expenses to Raheja.
Hayslette facilitated the submission of false and fictitious sign-in sheets from speaking engagements to justify the event and maximize payments and other benefits to Raheja and Sawhny.
Hayslette facilitated the promotion of non-FDA-approved uses and dosages of Nuedexta through the speaker’s bureau program and the distribution of literature to physicians.
Hayslette offered free firearms training, office equipment and other things of value to Sawhny.
Hayslette provided coffee, breakfast, lunch and other food and beverage to Raheja, Sawhny and their office staff, usually with little to no substantive discussion about Nuedexta.
Hayslette accessed protected patient health information without authorization, and facilitated the submission of false diagnoses of PBA on prior authorizations to Medicaid Managed Care Organizations.
It was further part of the conspiracy that Raheja and Sawhny took steps in return for things of value, such as:
Raheja and Sawhny wrote more Nuedexta prescriptions and caused the submission of billings to Medicare and Medicaid for Nuedexta prescriptions for patients that did not have PBA.
Raheja and Sawhny also submitted and caused the submission of materially false and fictitious prior authorizations to Medicaid MCOs that reflected diagnoses of PBA for patients that did not actually have PBA.
Raheja falsely diagnosed patients with PBA, and recorded and caused the recording of false symptoms in patient records to support a diagnosis of PBA.
Sawhny also allegedly permitted unauthorized access to protected patient health information.
“We all trust our doctors to make decisions based on what is best for the patient, not based on which sales representative is paying them money on the side and springing for steak dinners,” U.S. Attorney Justin Herdman said. “Doctors and the pharmaceutical sales reps who don’t follow the rules will be held accountable for their actions.”
“These doctors will now answer to a court of law for financially benefitting from lucrative speaking engagements and writing questionable prescriptions for one medication,” FBI Special Agent in Charge Eric B. Smith said. “The FBI will continue collaborative efforts to root out healthcare fraud and hold those responsible accountable for their fraudulent, unethical behavior."
“Kickbacks are to ethics like a magnet to a compass — you lose your direction,” Ohio Attorney General Dave Yost said. “Imagine trusting your doctor to do what’s right for your health, and finding out he’s instead doing what’s right for his wallet. This is much more than a financial crime.”
If anyone believes they may have been a victim in this case, they are encouraged to call the FBI at 216-622-6963.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The FBI, Health and Human Services – Office of Inspector General and the Ohio Attorney General’s Medicaid Fraud Control Unit investigated this case. Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller are prosecuting the case.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Philadelphia Man Sentenced to over 10 Years’ Imprisonment for Distributing MethamphetamineRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gregory A. Jackson, age 54, of Philadelphia, Pennsylvania, was sentenced on September 23, 2019, to 121 months’ imprisonment to be followed by five years on supervised release, by Chief U.S. District Court Judge Christopher C. Conner, for distributing methamphetamine.
According to United States Attorney David J. Freed, Jackson was convicted in November 2018 after a two-day jury trial. The evidence presented at trial showed that in September 2017, Jackson traveled from Philadelphia to York and delivered over 100 grams of pure methamphetamine to another individual.
The case was investigated by the Federal Bureau of Investigation, the Springettsbury Township Police Department, the Pennsylvania State Police, and the York County Drug Task Force. Assistant United States Attorneys Carlo D. Marchioli and James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Pharmaceutical Company Targeting Elderly Victims Admits to Paying Kickbacks, Resolves Related False Claims Act ViolationsRead the Press Release
ATLANTA - The Department of Justice announced today that Avanir Pharmaceuticals (Avanir), a pharmaceutical manufacturer based in Aliso Viejo, California, has been charged for paying kickbacks to a physician to induce prescriptions of its drug Nuedexta.
“When a drug company pays kickbacks to physicians, it can affect their medical decision making and undermine the proper treatment of their patients,” said U.S. Attorney Byung J. “BJay” Pak. “This is particularly troublesome when it affects our vulnerable elderly population.”
“Kickbacks have the power to corrupt a provider’s medical judgment,” said Assistant Attorney Jody Hunt of the Department of Justice’s Civil Division. “And it is particularly concerning when a pharmaceutical company uses kickbacks to drive up sales in connection with a vulnerable population, such as elderly patients in nursing care facilities.”
“Paying kickbacks to medical providers in an effort to increase profits is illegal and diminishes the trust and credibility of drug companies who engage in these activities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services. My agency’s five-year compliance agreement with Avanir has been tailored to ensure such alleged behavior will not be repeated.”
As alleged in a one-count Information filed today in the U.S. District Court for the Northern District of Georgia, Avanir violated the Anti-Kickback Statute by paying a doctor to induce him to become a high prescriber of Nuedexta to beneficiaries of federal healthcare programs, offering him financial incentives to write additional Nuedexta prescriptions for beneficiaries of federal healthcare programs, and inducing him to recommend that other physicians prescribe Nuedexta to beneficiaries of federal healthcare programs. Nuedexta is approved by the Food and Drug Administration for the treatment of pseudobulbar affect (PBA), which is characterized by involuntary, sudden, and frequent episodes of laughing or crying, and occurs secondary to a neurologic disease or brain injury.
The Northern District of Georgia also announced a deferred prosecution agreement resolving the charge, under which Avanir admits that it paid the doctor to induce him to not only maintain, but increase his prescription volume. Under the agreement’s terms, Avanir will pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. The United States will defer prosecuting Avanir for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court.
The Northern District of Georgia entered into the deferred prosecution agreement with Avanir based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including capturing and producing text messages from employee cell phones, the extensive remedial measures taken by the company, including terminating, or permitting to resign in lieu of termination, multiple employees, at various levels of the organization, including senior executives, and its enhanced compliance program. Other facts and circumstances include: Avanir has agreed to resolve all civil claims relating to federal health care programs arising from its conduct; and a conviction (including a guilty plea) would likely result in the Office of the Inspector General of the Department of Health and Human Services imposing mandatory exclusion of Avanir from all federal health care programs under 42 U.S.C. § 1320a-7 for a period of at least five years, which would result in substantial consequences, including to American consumers. The agreement can ensure that integrity has been restored to Avanir’s operations and preserve its financial viability while preserving the United States’ ability to prosecute it should material breaches occur.
The Northern District of Ohio also announced indictments of four individuals, including former Avanir employees and one of the top prescribers of Nuedexta in the country, who were involved in the kickback scheme. Avanir has also agreed to pay over $95 million to resolve civil False Claims Act allegations of kickbacks as well as its false and misleading marketing of Nuedexta to providers in long term care facilities to induce them to prescribe it for behaviors commonly associated with dementia patients, which is not an approved use of the drug.
Named in the 83-count Northern District of Ohio indictment are: Deepak Raheja, 63, of Hudson; Gregory Hayslette, 43, of Aurora; Frank Mazzucco, 41, of Dublin, and Bhupinder Sawhny, 70, of Gates Mills. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks. Avanir has agreed to cooperate in the prosecution of these individuals.
“Doctors should prescribe medicine based on what is best for their patients, not on which drug company is paying for their travel and meals,” said U.S. Attorney for the Northern District of Ohio Justin Herdman.
In a separate civil resolution, Avanir has agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta. The government alleged that between October 29, 2010, and December 31, 2016, Avanir provided remuneration in the form of money, honoraria, travel, and food to certain physicians and other health care professionals to induce them to write prescriptions for Nuedexta. One form of remuneration included Avanir’s payment to certain health care professionals to give talks (commonly known as “speaker’s programs”) about Nuedexta based on their willingness to prescribe Nuedexta. These events were primarily social, with no educational value.
The government further alleged that Avanir implemented a strategy to market Nuedexta in long-term care (LTC) facilities for uses other than PBA that had not been approved by the FDA and were not medically accepted indications as defined by the statutes and regulations governing the Federal health care programs. In particular, Avanir sought to capitalize on efforts by the Centers for Medicare and Medicaid Services to reduce the use of anti-psychotics on dementia patients in LTC facilities, based in part on CMS’s concern that anti-psychotics can be and have been used as a form of chemical restraint for residents. Avanir did so by instructing its sales force to initiate discussions in LTCs regarding anti-psychotic use and how Nuedexta could be used to reduce a LTC facility’s reliance on anti-psychotics even though Avanir’s own studies demonstrated that the actual population of patients with PBA is limited. In order to counter the objection by certain physicians that they had few, if any, patients that exhibited signs of PBA in their facilities, Avanir instructed sales representatives to provide false and misleading information that PBA patients could be exhibiting a wide variety of “behaviors” such as crying without tears, moaning, or making other inarticulate sounds, when, in fact, those symptoms are commonly observed in patients who have dementia but do not have a diagnosis of PBA. This strategy worked, and Nuedexta utilization in LTC facilities increased.
In one example of the impact of these strategies, the government alleged that an Avanir employee reported that one doctor, who was also a paid speaker for Nuedexta, had “entire units” of patients on Nuedexta at the LTC facility where he worked, which contained a large number of dementia patients with behavioral issues. And while another doctor, a geriatrician, who also worked in the same LTC facility routinely discontinued Nuedexta for patients, the doctor paid by Avanir “constantly re-initiat[ed]” the treatment.
Contemporaneous with the civil settlement, Avanir entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Avanir implement additional controls around its interactions with physicians and conduct internal and external monitoring of promotional and other activities. It also increases individual accountability by requiring compliance-related certifications from its Board and key executives.
The civil settlement resolves lawsuits filed by Kevin Manieri, Duane Arnold, and Mark Shipman, all former employees of Avanir, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suits were filed in the Northern District of Ohio and the Northern District of Georgia and are captioned United States ex rel. Kevin Manieri v. Avanir Pharmaceuticals, Inc. and Deepak Raheja, Action No. 5:15-cv-611 (N.D. Ohio), and United States ex rel. Duane Arnold and Mark Shipman v. Avanir Pharmaceuticals, Inc., Action No. 1:15-cv-01250 (N.D. Ga.). Manieri will receive $12,389,823 of the civil settlement, and Arnold and Shipman will receive $5,365,000 of the civil settlement. In addition to the $95,972,017 being paid to resolve the United States’ civil claims, Avanir will pay an additional $7,027,983 to resolve state Medicaid claims.
The government is represented in the criminal case against Avanir by Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds Section, U.S. Attorney’s Office for the Northern District of Georgia, and against the individuals by Assistant U.S. Attorneys Michael Collyer and Megan Miller, U.S. Attorney’s Office for the Northern District of Ohio. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorneys Patricia Fitzgerald and Brendan Barker of the U.S. Attorney’s Office for the Northern District of Ohio, Assistant U.S. Attorney Neeli Ben-David of the U.S. Attorney’s Office for the Northern District of Georgia, and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by the FBI, HHS-OIG, the Department of Defense Criminal Investigative Services, the Office of Personnel Management Office of Inspector General, the Department of Veteran’s Affair Office of Inspector General, and the Ohio Medicaid Fraud Control Unit. Assistance was also provided by the Consumer Protection Branch of the Department of Justice, HHS Office of Counsel to the Inspector General and the National Association of Medicaid Fraud Control Units.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Except as to conduct admitted as part of the deferred prosecution agreement and its Statement of Facts, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
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.
Pharmaceutical Company Targeting Elderly Victims Admits to Paying Kickbacks, Resolves Related False Claims Act ViolationsRead the Press Release
Avanir Pharmaceuticals (Avanir), a pharmaceutical manufacturer based in Aliso Viejo, California, was charged for paying kickbacks to a physician to induce prescriptions of its drug Nuedexta, the Department of Justice announced today. The Northern District of Ohio also announced indictments of four individuals, including former Avanir employees and one of the top prescribers of Nuedexta in the country, who were involved in the kickback scheme. Avanir has also agreed to pay over $95 million to resolve civil False Claims Act allegations of kickbacks as well as its false and misleading marketing of Nuedexta to providers in long term care facilities to induce them to prescribe it for behaviors commonly associated with dementia patients, which is not an approved use of the drug.
“Kickbacks have the power to corrupt a provider’s medical judgment,” said Assistant Attorney Jody Hunt of the Department of Justice’s Civil Division. “And it is particularly concerning when a pharmaceutical company uses kickbacks to drive up sales in connection with a vulnerable population, such as elderly patients in nursing care facilities.”
As alleged in a one-count Information filed today in the United States District Court for the Northern District of Georgia, Avanir violated the Anti-Kickback Statute by paying a doctor to induce him to become a high prescriber of Nuedexta to beneficiaries of federal healthcare programs, offering him financial incentives to write additional Nuedexta prescriptions for beneficiaries of federal healthcare programs, and inducing him to recommend that other physicians prescribe Nuedexta to beneficiaries of federal healthcare programs. Nuedexta is approved by the Food and Drug Administration for the treatment of pseudobulbar affect (PBA), which is characterized by involuntary, sudden, and frequent episodes of laughing or crying, and occurs secondary to a neurologic disease or brain injury.
The Northern District of Georgia also announced a deferred prosecution agreement resolving the charge, under which Avanir admits that it paid the doctor to induce him to not only maintain, but increase his prescription volume. Under the agreement’s terms, Avanir will pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. The United States will defer prosecuting Avanir for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court.
“When a drug company pays kickbacks to physicians, it can affect their medical decision making and undermine the proper treatment of their patients,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “This is particularly troublesome when it affects our vulnerable elderly population.”
The Northern District of Georgia entered into the deferred prosecution agreement with Avanir based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including capturing and producing text messages from employee cell phones, the extensive remedial measures taken by the company, including terminating, or permitting to resign in lieu of termination, multiple employees, at various levels of the organization, including senior executives, and its enhanced compliance program. Other facts and circumstances include: Avanir has agreed to resolve all civil claims relating to federal health care programs arising from its conduct; and a conviction (including a guilty plea) would likely result in the Office of the Inspector General of the Department of Health and Human Services imposing mandatory exclusion of Avanir from all federal health care programs under 42 U.S.C. § 1320a-7 for a period of at least five years, which would result in substantial consequences, including to American consumers. The agreement can ensure that integrity has been restored to Avanir’s operations and preserve its financial viability while preserving the United States’ ability to prosecute it should material breaches occur.
The Northern District of Ohio also announced indictments of four individuals who paid or received kickbacks from Avanir. Named in the 83-count indictment are: Deepak Raheja, 63, of Hudson; Gregory Hayslette, 43, of Aurora; Frank Mazzucco, 41, of Dublin, and Bhupinder Sawhny, 70, of Gates Mills. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks. Avanir has agreed to cooperate in the prosecution of these individuals.
“Doctors should prescribe medicine based on what is best for their patients, not on which drug company is paying for their travel and meals,” said U.S. Attorney for the Northern District of Ohio Justin Herdman.
In a separate civil resolution, Avanir has agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta. The government alleged that between October 29, 2010, and December 31, 2016, Avanir provided remuneration in the form of money, honoraria, travel, and food to certain physicians and other health care professionals to induce them to write prescriptions for Nuedexta. One form of remuneration included Avanir’s payment to certain health care professionals to give talks (commonly known as “speaker’s programs”) about Nuedexta based on their willingness to prescribe Nuedexta. These events were primarily social, with no educational value.
The government further alleged that Avanir implemented a strategy to market Nuedexta in long-term care (LTC) facilities for uses other than PBA that had not been approved by the FDA and were not medically accepted indications as defined by the statutes and regulations governing the Federal health care programs. In particular, Avanir sought to capitalize on efforts by the Centers for Medicare and Medicaid Services to reduce the use of anti-psychotics on dementia patients in LTC facilities, based in part on CMS’s concern that anti-psychotics can be and have been used as a form of chemical restraint for residents. Avanir did so by instructing its sales force to initiate discussions in LTCs regarding anti-psychotic use and how Nuedexta could be used to reduce a LTC facility’s reliance on anti-psychotics even though Avanir’s own studies demonstrated that the actual population of patients with PBA is limited. In order to counter the objection by certain physicians that they had few, if any, patients that exhibited signs of PBA in their facilities, Avanir instructed sales representatives to provide false and misleading information that PBA patients could be exhibiting a wide variety of “behaviors” such as crying without tears, moaning, or making other inarticulate sounds, when, in fact, those symptoms are commonly observed in patients who have dementia but do not have a diagnosis of PBA. This strategy worked, and Nuedexta utilization in LTC facilities increased.
In one example of the impact of these strategies, the government alleged that an Avanir employee reported that one doctor, who was also a paid speaker for Nuedexta, had “entire units” of patients on Nuedexta at the LTC facility where he worked, which contained a large number of dementia patients with behavioral issues. And while another doctor, a geriatrician, who also worked in the same LTC facility routinely discontinued Nuedexta for patients, the doctor paid by Avanir “constantly re-initiat[ed]” the treatment.
Contemporaneous with the civil settlement, Avanir entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Avanir implement additional controls around its interactions with physicians and conduct internal and external monitoring of promotional and other activities. It also increases individual accountability by requiring compliance-related certifications from its Board and key executives.
“Paying kickbacks to medical providers in an effort to increase profits is illegal and diminishes the trust and credibility of drug companies who engage in these activities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services. My agency’s five-year compliance agreement with Avanir has been tailored to ensure such alleged behavior will not be repeated.”
The civil settlement resolves lawsuits filed by Kevin Manieri, Duane Arnold, and Mark Shipman, all former employees of Avanir, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suits were filed in the Northern District of Ohio and the Northern District of Georgia and are captioned United States ex rel. Kevin Manieri v. Avanir Pharmaceuticals, Inc. and Deepak Raheja, Action No. 5:15-cv-611 (N.D. Ohio), and United States ex rel. Duane Arnold and Mark Shipman v. Avanir Pharmaceuticals, Inc., Action No. 1:15-cv-01250 (N.D. Ga.). Manieri will receive $12,389,823 of the civil settlement, and Arnold and Shipman will receive $5,365,000 of the civil settlement. In addition to the $95,972,017 being paid to resolve the United States’ civil claims, Avanir will pay an additional $7,027,983 to resolve state Medicaid claims.
The government is represented in the criminal case against Avanir by Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds Section, U.S. Attorney’s Office for the Northern District of Georgia, and against the individuals by Assistant U.S. Attorneys Michael Collyer and Megan Miller, U.S. Attorney’s Office for the Northern District of Ohio. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorneys Patricia Fitzgerald and Brendan Barker of the U.S. Attorney’s Office for the Northern District of Ohio, Assistant U.S. Attorney Neeli Ben-David of the U.S. Attorney’s Office for the Northern District of Georgia, and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by the FBI, HHS-OIG, the Department of Defense Criminal Investigative Services, the Office of Personnel Management Office of Inspector General, the Department of Veteran’s Affair Office of Inspector General, and the Ohio Medicaid Fraud Control Unit. Assistance was also provided by the Consumer Protection Branch of the Department of Justice, HHS Office of Counsel to the Inspector General and the National Association of Medicaid Fraud Control Units.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Except as to conduct admitted as part of the deferred prosecution agreement and its Statement of Facts, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Perris Man Charged with Smuggling Unregistered PesticidesRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – September 26, 2019
SAN DIEGO – Luis Alberto Vargas of Perris was arraigned today on a felony complaint charging him with smuggling pesticides into the United States from Mexico. Vargas made his appearance before U.S. Magistrate Judge F.A. Gossett.
The complaint alleges that Vargas smuggled three containers with 2.25 liters of Mexican pesticides into the United States on September 9, 2019. According to the complaint, Vargas brought in pesticides containing the active ingredients chlorpyrifos and abamectin, chemicals which are considered to be restricted-use pesticides in the United States because they are lethal if ingested, harmful if absorbed through the skin or inhaled, and toxic to bees and other wildlife.
In the United States, federal regulations limit the commercial sale and distribution of restricted-use pesticides to those who have received training and certification approved by the U.S. Environmental Protection Agency in mitigating the dangers of such chemicals.
The complaint alleges that Vargas lacks the certification needed for purchase or commercial use of such pesticides. Only pesticides registered with the EPA may be imported, sold, or distributed in the United States, and all pesticides intended for commercial use in the United States must bear their EPA registration number on their labels. According to the complaint, the containers imported by Vargas were labeled only in Spanish and bore no EPA registration numbers.
“These types of chemicals, which are extremely dangerous to humans if ingested or inhaled, must be kept out of the hands of untrained individuals,” said U.S. Attorney Robert Brewer. “Misapplication of these chemicals could cause untold harm to our citizens and the environment.”
“We allege that the defendant knowingly smuggled unregistered pesticides into the country, violating environmental regulations established to protect human health and the environment,” said Jay Green, Special Agent-in Charge of EPA’s Criminal Investigation Division. “EPA and its partners worked together to apprehend the defendant and prevent this illegal product from threatening public safety.”
“The illegal importation and use of restricted pesticide products puts people's health and the environment at significant risk,” said Juan Munoz, deputy special agent in charge for HSI San Diego. “HSI agents will continue to investigate these individuals that are involved in the illicit distribution of these dangerous products that threaten our communities.”
California Department of Toxic Substances Control Chief Investigator, Hansen Pang said, “It is notable to see State and Federal Law Enforcement work together on a no-tolerance initiative to protect the environment.”
DEFENDANT
Luis Alberto Vargas Age: 28 Perris, California
SUMMARY OF CHARGES
Smuggling, 18 U.S.C. § 545
Maximum penalty: Twenty years in prison, fine of $250,000
AGENCIES
U.S. Environmental Protection Agency, Criminal Investigations Division
Department of Homeland Security, Homeland Security Investigations
California Department of Toxic Substances Control, Office of Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Ongoing Federal Crime Reduction Strategy Leads to Criminal Charges Against Five Statesville-Area Drug TraffickersRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that a federal grand jury sitting in Charlotte has returned criminal indictments against five defendants, for their alleged involvement in drug trafficking in the Statesville area.
The five defendants named in the indictments and the charges they face are:
- Charles Mills, 34, of Statesville, is charged with nine counts of distribution and possession with intent to distribute cocaine.
- Dorey Joyner, 34, of Statesville, is charged with five counts of distribution and possession with intent to distribute cocaine.
- Myles Foote, 25, of Statesville, is charged with four counts of distribution and possession with intent to distribute cocaine.
- Lashon Maurice, Gaither, 40, of Statesville, is charged with possession with intent to distribute cocaine, and possession of a firearm by a felon.
- Terry Barringer, 61, of Statesville, is charged with four counts of distribution and possession with intent to distribute cocaine.
Each charge of possession with intent to distribute cocaine and distribution of cocaine carries a maximum term of 20 years in prison and $1,000,000 fine per count.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Iredell County Sheriff’s Office for handling the investigation that led the federal charges. U.S. Attorney Murray also thanked Iredell County District Attorney Sarah M. Kirkman for her office’s continued coordination and support of the PSN initiative.
Assistant U.S. Attorney Lambert Guinn, of the U.S. Attorney’s Office in Charlotte, is prosecuting these cases.
These case have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. In May 2019, the U.S. Attorney’s Office, announced the revitalization of PSN in Statesville, as part of a law enforcement initiative to drive down criminal activity in the area. Including today’s indictments, the Statesville-area PSN initiative has led to the prosecution of 18 defendants on federal narcotics and/or firearms offenses, and the seizure of 25 firearms, six of which had been reported stolen.
Nye’s Pharmacy Settles Allegations of Controlled Substances Act ViolationsRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Nye’s Pharmacy, of Conway, has agreed to pay the United States $185,000 to resolve allegations that it failed to abide by recordkeeping requirements of the Controlled Substances Act and filled prescriptions without confirming that they served a legitimate medical purpose. The settlement also requires Nye’s to comply with heightened reporting requirements for a two year period.
“Pharmacies have a duty to ensure that they track and dispense controlled substances in compliance with the law,” said U.S. Attorney Lydon. “Doctors and pharmacists are uniquely positioned to assist in preventing the abuse and diversion of controlled substances. Adhering to the basic rules of recordkeeping and prescription review is essential to helping fight the opioid epidemic.”
This matter was investigated by Dawn Bauer and Adam Roberson of the Drug Enforcement Administration and Assistant United States Attorneys Tina Cundari and James Leventis of the Columbia office.
The claims resolved by this settlement are allegations only. Nye’s does not admit wrongdoing or liability.
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Newport Man Sentenced for Social Security FraudRead the Press Release
COVINGTON, Ky. – A Newport, Kentucky, man was sentenced in federal court on Thursday, by U.S. District Judge David L. Bunning, to five years of probation and 30 days of intermittent confinement for committing Social Security fraud.
According to his guilty plea, from July 2013 through April 2018, Robert Howard, 57, defrauded the Social Security Administration by continuing to fraudulently receive his father’s Title II Social Security benefits, after his father’s death, and knowingly concealing his father’s death from the SSA. Howard admitted to calling the Florence, Ky., SSA office and impersonating his deceased father, in an attempt to ensure wrongful continuation of monthly payments. The total amount that Howard fraudulently received from the SSA was $82,565.10. As part of the sentence, the district court ordered Howard to repay this amount in restitution.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Wayne R. Warren, Resident Agent-in-Charge, SSA Office of the Inspector General, Atlanta Field Division, jointly announced the sentence.
The investigation was directed by the SSA-OIG. The United States was represented by Special Assistant U.S. Attorney James T. Chapman.
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New Orleans Resident Pleads Guilty in Cocaine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that defendant TEKA LAFRANCE, age 48, of New Orleans, pleaded guilty on September 25, 2019 to multiple counts of conspiring to distribute and distributing large quantities of cocaine hydrochloride and cocaine base. LAFRANCE is facing a mandatory minimum sentence of 10 years in prison, a maximum life sentence, a possible fine up to $10,000,000, and a period of supervised release of at least five years.
U.S. District Judge Martin L.C. Feldman is scheduled to sentence LAFRANCE on December 18, 2019.
U.S. Attorney Strasser praised the work of the Plaquemines Parish Sheriff’s Office (PPSO), Drug Enforcement Administration (DEA), Alcohol, Tobacco and Firearms (ATF), New Orleans Police Department (NOPD), Kenner Police Department (KPD), Customs and Border Protection (CBP), and Houston Police Department (HPD) in their investigation of this case. Assistant United States Attorneys Brandon S. Long and Paige O’Hale are in charge of the prosecution.
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New Cumberland Man Sentenced to Five Years’ Imprisonment for Receipt of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Earl T. Cook, Jr., age 55, of New Cumberland, Pennsylvania, was sentenced on September 25, 2019, by United States District Court Judge John E. Jones III, to five years’ imprisonment followed by five years’ on supervised release, for receipt of child pornography. Judge Jones also ordered Cook to pay an assessment of $5,000 under the Justice for Victims of Trafficking Act.
According to United States Attorney David J. Freed, Cook admitted to receiving child pornography over the internet between October 2014 and March 2015, in New Cumberland.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Mobile County Sentenced to 37 Months for Possession of a Firearm After Conviction of Five FeloniesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Derick Thomas Cumbie, a 26 year old resident of Mobile, Alabama was sentenced to 37 months of incarceration for possession of a firearm after being convicted of five felonies, namely, Theft of Property in 2018, Theft of Property in 2012, Burglary Third Degree in 2018, Receiving Stolen Property First Degree in 2018 and Unlawful Possession of a Controlled Substance in 2012.
On June 26, 2019, Cumbie entered a guilty plea pursuant to a plea agreement and admitted in open court that on February 3, 2019, Mobile County, AL deputies responded to a call for someone trespassing on property. When they arrived at the address on Padgett Switch Road in Irvington, they saw Cumbie get out of a Gray Nissan truck and flee when he saw the deputies. The deputies chased him and caught him. Cumbie told the deputies he ran because he had outstanding warrants. Deputies returned to the Nissan and saw, in plain view, on the front passenger seat a small quantity of methamphetamine (a field test confirmed it to be methamphetamine). The methamphetamine was seized. Deputies also saw, in plain view, a Glock pistol protruding from a duffle bag on the front passenger seat. Deputies seized the Glock and found it to be loaded. It is described as a Glock, model 17, 9mm pistol. After waiving his Miranda rights, Cumbie told the deputies that the Glock was his and he described it for them. Cumbie knew he was a convicted felon at the time he possessed the firearm.
Deputies of the Mobile County Sheriff’s Office along with special agents of the FBI investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mission Man Sentenced for Assault with a Dangerous Weapon, Discharging a Firearm During a Crime of Violence, and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Assault With a Dangerous Weapon, Discharging a Firearm During and in Relation to a Crime of Violence, and Failure to Appear was sentenced on September 26, 2019, by U.S. District Judge Roberto A. Lange.
William J. Waukechon, age 20, was sentenced to a total of 135 months in federal prison. He was sentenced to 12 months in federal prison for of Assault With a Dangerous Weapon, 120 months in federal prison for Discharging a Firearm During and in Relation to a Crime of Violence, and 3 months in federal prison for Failure to Appear, with such sentences to be served consecutively, followed by 3 years of supervised release. Waukechon was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $300.
The convictions for Assault With a Dangerous Weapon and Discharging a Firearm During and in Relation to a Crime of Violence stemmed from an incident that occurred on June 3, 2018, in Mission, South Dakota. On that date, Waukechon and another individual were working on a vehicle at the Sunrise Apartment Complex. Following a verbal altercation with the victim, Waukechon got into a vehicle and proceeded to leave the scene. The victim threw a can of beer at Waukechon’s vehicle. The driver then stopped the vehicle. Waukechon produce a pistol, opened the vehicle door and fired two rounds in the direction of the victim, striking the victim in the thigh. Waukechon was indicted by a federal grand jury on June 12, 2018. He plead guilty on March 18, 2019.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The conviction for Failure to Appear stemmed from conduct that occurred in January 2019. On January 22, 2019, Waukechon failed to appear in United States District Court for a change of plea hearing based on the above-described assault. Waukechon was indicted by a federal grand jury on February 13, 2019. He plead guilty on March 18, 2019.
These cases were investigated by the Federal Bureau of Investigation, the Rosebud Sioux Tribe Law Enforcement Services, and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted these cases.
Waukechon was immediately turned over to the custody of the U.S. Marshals Service.
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Mason County Man Sentenced to 30 Years in Prison for Federal Carjacking and Firearms OffensesRead the Press Release
HUNTINGTON, W.Va. – A Mason County man who threatened two employees of the Putnam Public Service District (PSD) with a machinegun and stole their company truck last year in Teays Valley was sentenced in federal court, announced United States Attorney Mike Stuart. Justin Michael Wilson, 20, was sentenced to 30 years in federal prison after he was previously convicted of carjacking, using, carrying, and brandishing a machinegun during and in relation to a crime of violence, unlawful possession of a machinegun, and possession of an unregistered machinegun. Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and multiple agencies who responded to the crimes, including the Mason County Sheriff’s Department, the Jackson County Sheriff’s Department, the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the Hurricane Police Department, and the West Virginia State Police.
“30 years for a 20 year old - truly tragic,” said United States Attorney Mike Stuart. “Threatening government employees. Use of a machine gun. Risking the lives of law enforcement. These were incredibly dangerous actions that could have resulted in loss of many lives. We will never accept this type of violent and illegal behavior but we appreciate the human tragedy of a 20 year old serving 30 years in prison.”
On January 11, 2018, Wilson drove a vehicle he had stolen earlier in the day in Jackson County to the Liberty Square Shopping Plaza in Teays Valley. While in route to the shopping plaza, Wilson acquired a machinegun and engaged deputies in Kanawha County in a chase, eventually driving off-road and jumping his vehicle over railroad tracks to get away. When he arrived at the shopping plaza, Wilson approached two employees of the Putnam Public Service District eating lunch in their company truck. Wilson brandished the machinegun, demanded the men transfer items from the stolen vehicle to the PSD truck, and stole the truck.
A West Virginia State Police trooper and deputies with the Putnam County Sheriff’s Department responding to calls at the shopping plaza for assistance immediately saw Wilson fleeing in the truck. Wilson then entered Interstate 64 headed westbound and led the responding units on another high speed chase. During the pursuit, Wilson pointed the machinegun out of the truck at the trooper, ran vehicles off the road, crossed the median at a designated emergency vehicle crossing, traveled westbound in the eastbound lanes, exited the interstate by traveling the wrong way up the entrance ramp at Hurricane, and eventually crashed the truck which was destroyed by fire. Wilson was pulled from the burning truck by the trooper and placed under arrest.
Assistant United States Attorneys Joseph F. Adams and Stephanie S. Taylor handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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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MEDIA ADVISORY: United States Attorney Robert Duncan Jr. to have Media Availability in Lexington on FridayRead the Press Release
LEXINGTON, Ky. – United States Attorney Robert Duncan will have press availability in Lexington on Friday, Sept. 27, 2019 at 3 p.m., along with Robert Brown, Jr., Special Agent in Charge of the FBI to discuss a sentencing.
Where: U.S. Attorney's Office
Eastern District of Kentucky
260 W. Vine Street, Suite 300
Lexington, Kentucky 40507
When: Friday, Sept. 27, 2019 at 3 p.m.
Luzerne County Woman Sentenced to 37 Months’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Angela Haggerty, age 44, of Hazleton, Pennsylvania, was sentenced on September 25, 2019, by U.S. District Court Judge Robert D. Mariani to 37 months’ imprisonment followed by three years’ supervised release, for participating in a heroin trafficking conspiracy that operated in Hazleton and other areas of Luzerne County.
According to United States Attorney David J. Freed, Haggerty previously pleaded guilty to conspiracy to distribute more than 700 grams of heroin between February 2016 and January 2017 (700 grams is equivalent to approximately 28,000 individual doses of heroin).
The matter was investigated by the Drug Enforcement Administration – Scranton Office, and the Pennsylvania State Police. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Lowell Woman Indicted for Stealing Approximately $182,000 from EmployerRead the Press Release
BOSTON – A Lowell woman was indicted today by a federal grand jury in Boston in connection with embezzling approximately $182,000 from a veterinary hospital that employed her.
Sasha A. Saulnier, 32, was indicted on six counts of wire fraud. An arraignment date has not yet been scheduled. In August 2019, Saulnier was charged by criminal complaint.
According to the charging documents, Saulnier was employed by a full-service animal hospital as a client relations specialist from October 2011 until September 2018. During that time, she had various client responsibilities, including selling retail products to customers at the hospital. Saulnier also served in a temporary supervisory role, which gave her access to management software and the ability to manipulate account transactions and accounting data.
It is alleged that from March 2014 through August 2018, Saulnier entered false refund transactions into the company’s management software, and then credited her own personal debit cards, which linked directly to her personal checking account. Specifically, Saulnier occasionally entered a fictitious refund for merchandise that was legitimately purchased by a customer, but never returned, and then credit the bogus refund to her own debit card. Saulnier also fabricated refunds for wholly fictitious retail purchases that were never actually made, and then credited that amount to her own debit card. In an effort to conceal her fraud, Saulnier allegedly used dormant accounts of inactive hospital clients, such as those with deceased pets and so-called “test accounts,” set up solely for training purposes. In addition, Saulnier fabricated discounts which she applied to purchases of retail products.
Over the course of the scheme, Saulnier used her position to falsify approximately 482 transactions resulting in refunds and credits totaling more than $182,800 to her own bank account. Saulnier allegedly used this money for personal expenses and travel, including trips to Las Vegas, New York City and the Bahamas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or up to twice the loss involved, restitution and forfeiture. 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 Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Resident Indicted on Sexual Exploitation ChargesRead the Press Release
BOSTON – A Lawrence resident was indicted today in federal court in Boston with sexually exploiting two children under four years of age.
Jakob Nieves, who also goes by the name Dakota, 19, was indicted on two counts of sexual exploitation of children, one count of distribution of child pornography and one count of possession of child pornography. Nieves was charged by complaint and arrested on Aug. 14, 2019. Nieves has been detained since that time.
According to the charging document, as part of an investigation into the use of Kik messenger for the trade of child pornography, an undercover agent communicated with Nieves via Kik. During the course of those communications, Nieves allegedly sent the undercover agent images and videos that Neives produced, depicting her sexually abusing a child.
It is alleged that when law enforcement executed a search warrant at Nieves’ home on Aug. 14, 2019, Nieves admitted to distributing images and videos of child pornography to a user she “met” in a Kik group geared toward individuals interested in pedophilia.
The charge of sexual exploitation of children provides for a minimum mandatory sentence of 15 years and no greater than 30 years in prison. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Each charge provides for a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Coordinator and member of the Major Crimes Unit, 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/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Latonia Man Sentenced to 40 Months for Identification Document Fraud and Aggravated Identity TheftRead the Press Release
COVINGTON, Ky. – A Latonia, Kentucky, man who previously admitted to illegally possessing nine Social Security cards and aggravated identity theft, was sentenced today to 40 months in prison, by U.S. District Court Judge David L. Bunning
Jesse Bryant, 37, pleaded guilty to the charges in June 2019. According to his plea agreement, at the time the identification documents were discovered in the vehicle that Bryant was driving, law enforcement also discovered stolen credit cards and equipment used to make or alter stolen identification documents.
Under federal law, Bryant must serve 85 percent of his/her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, and the Yvonne DiCristoforo, Special Agent in Charge for the United States Secret Service, jointly announced the sentence.
The investigation was conducted by the United States Secret Service. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Laura K. Voorhees.
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Jury Finds Tulsa Man Guilty of Federal Firearms and Drug Trafficking CrimesRead the Press Release
United States Attorney Trent Shores announced that a jury found Evan Jamon Woodard, 34, of Tulsa, guilty on Wednesday of multiple crimes, including intent to distribute cocaine, marijuana, and heroin, while carrying a firearm.
"I thank the jury for their service. Justice was done today. A gun-toting drug dealer who had seven prior felony convictions is off the streets and headed to federal prison," stated U.S. Attorney Trent Shores. "Guns and drugs are a dangerous combination that often lead to violence. That is why our Project Safe Neighborhoods initiative focuses on these types of offenses. I commend Assistant U.S. Attorneys Victor Regal and Edward Snow for successfully prosecuting this case, and the ATF and TPD for their thorough investigation. This guilty verdict is a direct reflection of the excellent collaborative law enforcement partnerships we have in northern Oklahoma."
Ultimately, the jury found Woodard guilty of 7 total felony charges. U.S. District Judge Gregory K. Frizzell presided over the trial and will sentence Woodward on December 30, 2019. Woodard faces a maximum penalty of 10 years in prison and a $250,000 fine for the felon in possession of firearm and ammunition charge; a maximum penalty of 20 years in prison and a $1,000,000 fine for the possession with intent to distribute cocaine and heroin charges; a maximum penalty of 5 years in prison and a $250,000 fine for the possession with intent to distribute marijuana charges; and a maximum penalty of life in prison and a $250,000 fine for possessing a firearm in furtherance of drug trafficking crimes.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources at all levels. Each United States Attorney’s Office will create a specialized unit that tailors its approach to the unique needs of its own district, and targets the most significant gun crime problems within that district to maximize the impact of the initiative and help ensure the safety of the community.
Woodard’s arrest and conviction were the result of a coordinated effort involving the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa Police Department, and Assistant U.S. Attorneys Victor Regal and Edward Snow.
Joint US-EU Statement on Electronic Evidence Sharing NegotiationsRead the Press Release
U.S. Department of Justice and European Commission officials met yesterday to begin formal negotiations on an E.U.-U.S. agreement to facilitate access to electronic evidence in criminal investigations. After a productive first discussion, there was agreement to regular negotiating rounds with the view to concluding an agreement as quickly as possible. Progress will be reviewed at the next E.U.-U.S. Justice and Home Affairs Ministerial in December.
European Commissioner for Justice, Věra Jourová said, “I welcome the start of formal negotiations. Criminals use fast, modern technologies to organize their crimes and cover up their evidence. We need to work together with our American partners to speed up the access of our enforcement authorities to this evidence. This will strengthen our security, while protecting the data privacy and procedural safeguards of our citizens. The launch of negotiations marks an important step towards achieving this.”
U.S. Attorney General William Barr said, “We are pleased that the Council adopted a mandate to authorize the Commission to negotiate an agreement with the United States on facilitating access to certain e-evidence, and that we have obtained authorization to negotiate with the European Union. This type of agreement can enhance public safety and national security by providing an improved and more rapid ability to identify and respond to criminal threats on both sides of the Atlantic, in a manner that assures respect for the rule of law, privacy, and civil liberties. The U.S. is committed to working with the E.U. on this important issue.”
Jacksonville Career Criminal Sentenced to Ten Years for Drugs and GunsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced James Edward Phillips, III (45, Jacksonville) to 10 years in federal prison for selling cocaine and possessing a firearm as a convicted felon. Phillips had pleaded guilty on June 11, 2019.
According to court documents, on four occasions during the summer of 2018, Phillips sold cocaine to a confidential informant working at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. On two of those occasions, Phillips also sold a total of three firearms, one of which was a rifle equipped with a 50-round drum magazine. At the time, Phillips was a 15-time convicted felon and therefore prohibited from possessing firearms or ammunition under federal law. His previous convictions include kidnapping with a firearm, armed burglary with assault or battery, armed burglary, battery on a law enforcement officer, possession of a firearm by a convicted felon, burglary, and grand theft.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jackson Man Sentenced under Project EJECT to nearly Two Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Mackee Donell Jefferson, 38, of Jackson, was sentenced today by U.S. District Judge Tom S. Lee to 21 months in federal prison, followed by 3 years of supervised release, for possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the FBI in Mississippi.
On September 14, 2018, Jefferson was waiting in a drive-through line of a fast food restaurant in Jackson. After a long wait, Jefferson became irritated. In an apparent attempt to accelerate his order, Jefferson approached the drive-thru window and tapped on the window with a handgun. A restaurant employee called the Jackson Police Department and officers responded. The officers approached Jefferson’s vehicle and questioned Jefferson while he was in his car. Jefferson admitted to possessing a gun. Jefferson has prior felony convictions for auto burglary in Rankin County and auto theft in Hinds County.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Honduran National Sentenced to More Than 11 Years for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Oscar Orlando Navarro-Melendez, 31, a Honduran national residing in Asheville, N.C. to 135 months in prison and five years of supervised release, for possession with intent to distribute methamphetamine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Interim Chief Robert C. White of the Asheville Police Department; and Sheriff Quentin Miller of the Buncombe County Sheriff’s Office.
According to court documents and today’s sentencing hearing, in July 2017, law enforcement became aware that Oscar Orlando Navarro-Melendez and his co-defendant, Linda Liceth Prada-Ardilla, were trafficking methamphetamine in and around Buncombe County. Court records show that law enforcement recovered from an Asheville-area hotel a suitcase which belonged to Navarro-Melendez and his co-defendant. Inside the suitcase, law enforcement located methamphetamine, cocaine, drug paraphernalia, a firearm and 25 rounds of ammunition. Law enforcement also searched the hotel room shared by Navarro-Melendez and Prada-Ardilla, where they found additional quantities of methamphetamine and cocaine, a firearm and more ammunition.
Navarro-Melendez is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. Prada-Ardilla was previously sentenced to 135 months in prison.
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In a separate case, Judge Reidinger sentenced Terrell Thomas, 23, of Asheville, and Angelia Neris, 28, of Fort Myers, Florida, each to 210 months and five years of supervised release for conspiracy to distribute methamphetamine. According to documents filed in this case, from July 2017 to October 2017, Neris and Thomas trafficked large amounts of methamphetamine in and around Buncombe County. Court records show that, each week, the co-conspirators bought between half a kilogram to a kilogram of methamphetamine from a supplier located in Atlanta. As Neris previously admitted in court, in a span of three months, the pair trafficked approximately 12 to 15 kilograms of methamphetamine. Over the course of the investigation, law enforcement recovered more than 650 grams of methamphetamine, a pump shotgun, an assault rifle, and a 9mm handgun.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Buncombe County Anti-Crime Task Force (B-CAT) for leading these investigations.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the cases.
Holly Ridge Man Sentenced for Production of Child PornographyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced KENNETH WADE REINHOLD, 33, of Holly Ridge, North Carolina to 360 months imprisonment, followed by a lifetime of supervised release.
REINHOLD was named in an Indictment filed on January 19, 2019 charging him with multiple counts of manufacture of child pornography, distribution of child pornography and possession of child pornography. On June 12, 2019, REINHOLD pled guilty to manufacturing child pornography.
In June 2018 the Federal Bureau of Investigation in Kansas City, Missouri, was investigating the distribution of child pornography on social media sites. An agent working in an undercover capacity found REINHOLD and others exchanging child pornography via Kik Interactive social media site. The undercover agent, in an attempt to gain information about the criminal activities and identity of REINHOLD, said she had two daughters that she was interested in exposing to sexual activity. REINHOLD expressed an immediate interest and began having private conversations with the agent. During those conversations the agent became aware REINHOLD was molesting young children with whom he had contact. Agents identified REINHOLD based on photos and dteremined he lived in Holly Ridge, North Carolina. FBI in Kansas City referred the matter to FBI in Wilmington, North Carolina so immediate action could be taken to protect the children against whom REINHOLD was offending.
The FBI and Onslow County Sheriff’s Office executed a search warrant at REINHOLD’s residence in Holly Ridge and seized multiple digital devices. REINHOLD, after being warned of his Miranda rights, admitted to taking exploitative photos of multiple children. He also admitted to running the chat group on Kik where multiple people were exchanging child pornography.
Forensic analysis of REINHOLD’s digital devices uncovered 185 images and 206 videos of child pornography. Law enforcement also found multiple child pornographic images and videos that REINHOLD himself produced, depicting minor victims under the age of 12.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The investigation of this case was conducted by the Federal Bureau of Investigation and Onslow County Sherriff’s Office. The case was prosecuted by Assistant United States Attorneys Erin Blondel, Charity Wilson and Jake D. Pugh.
Health Care Fraud and Opioid Enforcement Action Brings Multiple Charges Across the Middle District of FloridaRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces a significant health care fraud and opioid enforcement operation across the Middle District of Florida, involving charges against seven individuals for their alleged involvement in various schemes to defraud Medicare, Medicaid, and other federal health care benefit programs, and in various conspiracies to illicitly obtain and distribute oxycodone and other controlled substances.
Among those charged in partnership with the Justice Department’s Medicare Fraud Strike Force are the following:
United States v. Teresa Johnson
Teresa Johnson (53, Lecanto) is charged in a one-count Information with conspiracy to commit health care fraud. She faces a maximum penalty of 10 years in federal prison. According to the Information, from November 2016 through October 2018, Johnson owned and operated Tri-County Medical Billing and submitted false and fraudulent claims to Medicare, Medicaid, Tricare, and ChampVA, on behalf of a medical doctor who owned clinics in Crystal River, Spring Hill, and Celebration, Florida. The case is being investigated by the Health and Human Services - Office of Inspector General (HHS-OIG), the FBI, the Department of Defense - Office of Inspector General (DoD-OIG), the Department of Veterans’ Affairs - Office of Inspector General (VA-OIG), and the Florida Office of Attorney General’s Medicaid Fraud Control Unit (MFCU). The case will be prosecuted by Assistant U.S. Attorney Kelley Howard-Allen.
United States v. Hong Truong
Hong Truong (54, Dunedin) is charged in a 16-count indictment with conspiracy to unlawfully distribute and dispense Schedule II controlled substances, unlawful distribution and dispensing of Schedule II controlled substances, and using a place for unlawful drug distribution of the Schedule II controlled substances oxycodone 30 mg and hydromorphone 8mg in return for cash. Truong faces a maximum penalty of 20 years in federal prison on each of the counts. According to the indictment, Truong is a licensed pharmacist who owned and operated HP Pharmacy in Pinellas Park. From May 2015 through August 2016, Truong used her pharmacy to distribute and dispense Schedule II controlled substance prescriptions outside the scope of usual professional practice and for no legitimate medical purpose. This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Jessica Evans
Jessica Evans (34, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. Evans, who worked as a pharmacy technician at HP Pharmacy, faces a maximum penalty of 20 years in federal prison. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Lucretia Mullan
Lucretia Mullan (34, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. She faces a maximum penalty of 20 years in federal prison. Mullan was employed as a medical assistant at a pain management clinic where she generated the fraudulent opiate prescriptions. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Robin Lloyd
Robin Lloyd (37, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. She faces a maximum penalty of 20 years in federal prison. Lloyd was employed as a medical assistant at a pain management clinic where she generated the fraudulent opiate prescriptions. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Patrice Jackson
Patrice Jackson (37, Bradenton) is charged by Information with conspiracy to unlawfully distribute the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. Shen faces a maximum penalty of 20 years in federal prison. Jackson obtained the fraudulent opiate prescriptions from Mullan and Lloyd and then obtained the Schedule II controlled substances from Truong and Evans at HP Pharmacy for distribution. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Marcus Anderson
Marcus Anderson (34, St. Petersburg) is charged in a 13-count indictment with health care fraud and aggravated identity theft for stealing rendering providers’ identities to submit more than $1.2 million in false and fraudulent claims to Medicaid. He faces a maximum penalty of 10 years in federal prison for each of the seven health care fraud counts and a consecutive two years in prison for the six aggravated identity counts. The case is being investigated by HHS-OIG, the Florida Office of Attorney General/MFCU, and the St. Petersburg Police Department. This case will be prosecuted by Assistant U.S. Attorney Kristen A. Fiore.
An indictment and information are merely formal charges that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Guatemalan Man Who Used a Fraudulent Social Security Card Sentenced to PrisonRead the Press Release
A man who used a false identification document and someone else’s social security number was sentenced today to almost three months in federal prison.
Daniel Riz-Morente, age 35, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a July 3, 2019, guilty plea to one count of unlawful use of an identification document and one count of misuse of a social security number.
At the guilty plea, Riz-Morente admitted he used a fraudulent Social Security card when he completed employment and tax forms using an alias name in April 2019, at a business in West Union, Iowa. The Social Security account number on the card used by Riz-Morente belonged to another person. On June 4, 2019, Riz-Morente was arrested by immigration agents at the business in West Union where Riz-Morente was working under the alias name.
On March 4, 2019, Riz-Morente first came to the attention of Custom and Border Patrol agents in New Mexico after he illegally entered the United States with a minor child. Riz-Morente was released and instructed to report to the ICE office in Cedar Rapids, Iowa, pending further immigration proceedings. As part of his release conditions, Riz-Morente was told he could not work in the United States without government authorization and proper documentation.
Riz-Morente was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Riz-Morente was sentenced to 115 days’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Riz-Morente is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1016.
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Guatemalan Man Sentenced to Prison Following Deportation and Document FraudRead the Press Release
A man who had been deported, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced today to more than four months in federal prison.
Jose Mariano Choch-Quiej, age 32, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a July 1, 2019, guilty plea to one count of illegal reentry into the United States.
In a plea agreement, Choch-Quiej admitted he had previously been deported from the United States in August 2007 and that he illegally reentered the United States without the permission of the United States government. When he was found in 2007, Choch-Quiej initially claimed to be a Mexican citizen to avoid being returned to Guatemala. In May 2019, immigration agents found Choch-Quiej at the Winneshiek County Jail in Decorah, Iowa, following his arrest for driving with a suspended license.
Choch-Quiej also admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed employment forms in August 2018, at a business in Decorah, Iowa. The Social Security account number on the card used by Choch-Quiej belonged to another person. The Alien Registration number on the “green card” was issued to another person.
Choch-Quiej was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Choch-Quiej was sentenced to 133 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Choch-Quiej is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2034.
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Gibson County Man Receives 90 Month Sentence for Being a Convicted Felon in Possession of Multiple FirearmsRead the Press Release
Jackson, TN – Matthew J. Pate, 34, of Humboldt, Tennessee was sentenced to 90 months in federal prison for being a felon in possession of firearms. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on July 2, 2019, Gibson County Sheriff’s Department deputies responded to a domestic assault situation where Matthew Pate was waiving a BB gun at his wife, mother in law and children. Once on scene, officers determined that the suspected BB gun was actually a .380 caliber pistol.
Further investigation revealed Pate was a prohibited person for a prior aggravated assault felony conviction. Officers asked for consent to search the residence where they found 5 additional firearms (3 pistols and 2 rifles). One was stolen and another had the serial numbers partially obliterated. The pistols were scattered throughout the house and the rifles were in the closet. Officers also found numerous alprazolam pills. Pate admitted to purchasing the weapons from an individual.
On September 11, 2019, U.S. District Court Judge J. Daniel Breen sentenced Pate to 90 months imprisonment followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said: "Reducing violent crimes committed with firearms is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. I commend the work of our federal and local law enforcement partners in holding Pate responsible and removing him from our streets."
Gibson County Sheriff Paul Thomas said: "I'm thankful for the partnership the United States Attorney's office maintains with local law enforcement. General Dunavant and his dedicated staff of Assistant U.S. Attorneys are always eager to help us when we have repeat, felony offenders in our communities that we need to remove from society. Their prosecution in this particular case solidifies all our positions on keeping our streets safe."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gibson County Sheriff’s Department.
Assistant U.S. Attorney Hillary Parham prosecuted this case on behalf of the government.
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Gaithersburg Man Pleads Guilty to Federal Charges for Receipt of Child Pornography and Extortion by Threat to Ruin the Reputation of AnotherRead the Press Release
Greenbelt, Maryland – Zhi Tian Lang, age 23, of Gaithersburg, Maryland, pleaded guilty on September 25, 2019, to receipt of child pornography and to extortion by threat to ruin the reputation of another. Lang admitted that he threatened to post revealing photos of the victims on social media and other Internet platforms if they did not send him sexually explicit photographs and/or videos of themselves.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, between at least January and October 2014 Lang communicated with minor female victims ranging in age from 13 to 17 years old and located throughout the United States, including South Dakota, Wisconsin, and New Jersey. Lang used an Internet messaging application and used the name “Seth” when contacting his victims. Lang would obtain pictures of minor victims from their social media accounts or through direct flirtation. The picture often depicted the victims in their underwear. Lang would then demand that unless the victim provided him with nude pictures, he would post the initial pictures on a public Internet account or send them directly to one or more of the victim’s acquaintances.
As detailed in his plea agreement, at least eight minor victims provided Lang sexually explicit photos and/or videos of themselves in response to Lang’s threats. Lang admitted that he posted photographs of minor victims to coerce them and sent at least one photo to another individual.
As a result of his conviction, Lang will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Unless indigent, Lang will also be required to pay a special assessment of $5,000.
Lang faces a minimum mandatory sentence of five years and a maximum of 20 years in prison for receipt of child pornography and a maximum of two years in prison for extortion by threat to ruin the reputation of another. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 8, 2020 at 9:30 a.m.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who is prosecuting the federal case.
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Ft. Thompson Man Sentenced on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Ft. Thompson, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 25, 2019, by U.S. District Judge Roberto A. Lange.
Michael George Fallis, age 41, was sentenced to 72 months in federal prison, 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fallis was indicted by a federal grand jury on April 9, 2019. He pled guilty on May 30, 2019.
The conviction stemmed from an drug conspiracy that began at a time unknown, but no later than December 1, 2015, and continuing to November 14, 2018, where Fallis knowingly and intentionally conspired with others to distribute and possess with the intent to distribute over 500 grams of methamphetamine, a Schedule II controlled substance, on the Crow Creek and Lower Brule reservations in South Dakota. Fallis was a dealer for Frank “Tank” Adams, who was convicted of conspiracy to distribute a controlled substance at a federal jury trial in August. Fallis allowed Adams to deal methamphetamine out his home. A federal search warrant conducted at Fallis home recovered meth, baggies, scales and other drug paraphernalia items.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs, Crow Creek Agency, the Bureau of Indian Affairs, Lower Brule Agency, the South Dakota Highway Patrol, and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges.
Fallis was immediately turned over to the custody of the U.S. Marshals Service.
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Fresno Man Stopped for Speeding Found to Be in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Jerald Esther Williams, 22, of Fresno, charging him with being a felon in possession of ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 14, Fresno Police Department officers saw a vehicle driving at a high rate of speed. They determined the vehicle was going in excess of 97 miles per hour. Williams was the sole occupant of the vehicle. During a search of the car, the officers found a loaded gun on the driver’s side floorboard near Williams’ left heel. The gun had eight rounds of 9 mm Luger ammunition in it. As a previously convicted felon, Williams is prohibited from possessing ammunition.
This case is the product of an investigation by Homeland Security Investigations and the Fresno Police Department. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Williams faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Indicted for Fentanyl and Carfentanil ConspiracyRead the Press Release
BOSTON – Three men and one woman were indicted yesterday in federal court in Boston with fentanyl and carfentanil conspiracy.
Rickey Depina, 31, of Brockton; David Fernandes, 32, of Braintree; Keanu Fernandes, 23, of Brockton; and Viviana Fontes, 29, of Brockton, were charged in an indictment with conspiracy to distribute and possess with intent to distribute fentanyl and carfentanil.
According to the charging documents, from at least May 2017 through August 2019, in Brockton, Abington, Boston, Braintree, Easton, Fall River, Holbrook, Norton, Quincy, Raynham, South Easton, West Bridgewater, and Whitman the defendants conspired to distribute fentanyl and carfentanil. On multiple occasions, law enforcement made controlled purchases of both fentanyl and carfentanil. And on Oct. 1, 2018, law enforcement stopped a car in which Depina, David Fernandes, and Fontes were traveling and recovered over 17 grams of fentanyl, approximately $1,750 and four cell phones. While executing search warrants later that day, law enforcement recovered another $10,000.
Carfentanil is an analog of fentanyl and approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is used commercially in tranquilizer darts for large mammals such as elk or elephants, and can be lethal in a dose as small as 2 milligrams.
The charge of conspiracy to distribute and possess with intent to distribute fentanyl and carfentanil provides for a sentence of no greater than 20 years in prison, at least three years and up to life supervised release and a fine of $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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Massachusetts State Police Superintendent Colonel Kerry A. Gilpin; and Brockton Police Chief John Crowley made the announcement. Assistant U.S. Attorneys Timothy Moran and Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.