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26 September 2019
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.
Former shipbuilding Project Manager pleads guilty to wire fraud in $1.5 million false invoice schemeRead the Press Release
SEATTLE - A former project manager for Portland, Oregon-based shipbuilder Vigor Marine LLC, pleaded guilty today to wire fraud related to his scheme to defraud his employer out of approximately $1.5 million, announced U.S. Attorney Brian T. Moran. SHELTON LAYNE SMITH, 50, of Portsmouth Virginia, is scheduled to be sentenced by U.S. District Judge Robert S. Lasnik on December 19, 2019.
According to records in the case, in 2016 and 2017, SMITH served as the project manager on the renovation of two U.S. Coast Guard cutters called the “Bertholf” and the “Waesche.” The renovations took place at Vigor’s Seattle facility. SMITH was responsible for selecting vendors and approving payments to them for equipment and services related to the renovations. In this role, SMITH fabricated invoices from a fictitious company called “Marine Service Solutions” (MSS). The fraudulent invoices caused Vigor to pay out approximately $1.5 million for work that was never done and equipment that was never provided.
SMITH’s scheme to defraud was an elaborate charade. SMITH persuaded a legitimate Vigor vendor to serve as a “pass-through” entity that received invoices from MSS, marked up the cost of the services, and passed on the fraudulent expenses to Vigor. The local vendor was not aware that Marine Service Solutions was not a real company. SMITH also misled a long-time acquaintance in Mississippi into setting up a bank account for MSS, cashing the checks, and funneling most of the proceeds to SMITH. In emails, SMITH posed as the Mississippi man, making it appear as if the Mississippi man was the owner of MSS. When questioned by the FBI, SMITH repeatedly lied about MSS and encouraged his acquaintance in Mississippi to stick to a false story about the company.
Vigor terminated SMITH in 2017 after discovering that SMITH had mishandled the Bertholf project. SMITH’s successor discovered the fraud, and Vigor reported the crime to the FBI.
SMITH has agreed to make restitution to Vigor of $1,483,802. As part of that restitution he will forfeit his right, title, and interest in any and all property, real or personal, that constitutes or is derived from proceeds traceable to the offense of Wire Fraud.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. The ultimate sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Former deputy constable to appear in court on drug and money laundering chargesRead the Press Release
HOUSTON – A former Harris County deputy constable and her husband have been charged with conspiring to possess heroin with the intent to distribute it as well as attempting to launder drug proceeds, announced U.S. Attorney Ryan K. Patrick.
A Houston grand jury returned the six-count indictment Sept. 18 against Betty Jean Molina, 56, and her husband Henry Molina, 59, both of Houston. They were taken into custody yesterday and are expected to make their initial appearances today before U.S. Magistrate Judge Christina A. Bryan at 10 a.m.
At the time of the offense, Jean Molina was a deputy constable with Harris County Precinct 5 Constable’s Office.
She and her husband are charged for their involvement in the laundering of what they believed was $500,000 in drug proceeds over a two-month-period.
The couple is charged with one count of conspiracy and another count of possession with the intent to distribute heroin for which they face a minimum of 10 years and up to life in prison as well as a possible $10 million fine. If convicted of any of the four counts of money laundering, they also face a potential sentence of 20 years of federal imprisonment. Those counts also carry up to a $500,000 fine or twice the value of the property involved in the transaction.
The FBI conducted the investigation with the assistance of Harris County Constable Precinct 5 and the FBI Houston Law Enforcement and Border Corruption Task Force, which includes the Houston Police Department’s Internal Affairs Proactive Unit and the Texas Department of Public Safety.
Assistant U.S. Attorneys Arthur R. Jones and Alamdar Hamdani are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former U.S. Army Range Director Pleads Guilty in Bribery SchemeRead the Press Release
HONOLULU – John Winslett, 65, of Bristol, Rhode Island, pleaded guilty today in federal court to one count of conspiracy to commit honest services wire fraud and one count of conspiracy to accept kickbacks in connection with a U.S. government contract. Winslett admitted that he bribed government contracting officials in order to steer federal contracts worth at least $19 million to his employer, a government contractor. Winslett further admitted that he accepted $723,333.33 in kickbacks from a local subcontractor, in exchange for Winslett assigning those contracts to that local subcontractor. Sentencing is scheduled for January 16, 2020 before Chief U.S. District Judge John M. Seabright.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Kenji M. Price for the District of Hawaii, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command (Army CID), Special Agent in Charge Bryan Denny of the U.S. Defense Criminal Investigative Service (DCIS) and acting Special Agent in Charge Eli S. Miranda of FBI’s Honolulu Field Office made the announcement.
According to court documents and information presented in court, from 2011 to 2018, Winslett paid over $100,000 worth of bribes to two U.S. Army contracting officials who worked at the Range at Schofield Barracks. The bribes included cash, automobiles, and firearms. In return, the contracting officials used their positions to benefit Winslett’s employer in securing U.S. Army contracts. Winslett also arranged for one of the contracting officials, Franklin Raby, to receive a job at his employer immediately following his retirement from the Department of Defense Civil Service. Raby has previously pled guilty to receiving bribes. Another contracting official, Victor Garo, has been charged with receiving bribes, and a change-of-plea is scheduled for later in October.
"Fair play in the competitive bidding process is critical to obtaining quality products and services for our uniformed personnel," stated U.S. Attorney Price. "Our law enforcement community will continue to hold those accountable who violate the law by failing to act with honesty and integrity in military contracting."
The case was investigated by Army CID, DCIS, FBI, and the Defense Contract Audit Agency. It was prosecuted by Trial Attorney Laura Connelly and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein for the District of Hawaii.
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Former Postal Employee Pleads Guilty to Theft of MailRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CAREEMA LEWIS, 33, of Waterbury, waived her right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to theft of mail by a postal employee.
According to court documents and statements made in court, between September 2018 and January 2019, while she was employed as a postal worker at the U.S. Post Office in Plymouth, Lewis stole numerous pieces of mail, specifically, greeting cards that contained gift cards or other items of value. When confronted by investigators in January 2019, Lewis admitted that she stole “between 20 and 50” gift cards from the mail. Lewis subsequently surrendered approximately 10 gift cards that she had stolen from greeting cards, and approximately 17 pieces of stolen mail that she had in her vehicle and her purse.
At sentencing, which is not yet scheduled, Lewis faces a maximum term of imprisonment of five years.
This matter is being investigated by the U.S. Postal Service Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
U.S. Attorney Durham encouraged individuals who believe they are a victim of theft related to this case to file a complaint by calling 888-USPS-OIG, or by visiting https://www.uspsoig.gov/form/file-online-complaint
Former Mexican State Attorney General Sentenced to 20 Years in Prison for Participation in International Narcotics Distribution ConspiracyRead the Press Release
A dual citizen of the United States and Mexico, and the former State Attorney General for the State of Nayarit, Mexico, was sentenced to 20 years’ imprisonment followed by five years of supervised release, following his guilty plea to an international heroin, cocaine, methamphetamine and marijuana manufacture and distribution conspiracy.
Edgar Veytia, 48, was sentenced today by U.S. District Judge Carol Bagley Amon, who also ordered Veytia to forfeit $1 million, following a conspiracy charge relating to a scheme to import illegal drugs from Mexico to the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Richard P. Donoghue of the Eastern District of New York; Special Agent in Charge Ray Donovan of the Drug Enforcement Administration (DEA) New York Division; Special Agent in Charge David J. Downing of DEA Los Angeles Division; Special Agent in Charge Matt DeSarno of the FBI’s Washington D.C. Field Office and Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York Field Office made the announcement.
As established at the defendant’s sentencing, U.S. law enforcement has been investigating a violent Mexican drug trafficking organization, known as the H-2 Cartel that was previously lead by Juan Francisco Patron Sanchez, also known as “H-2,” and was based in Nayarit and Sinaloa, Mexico. The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The government estimates that, during the relevant time period of the conspiracy, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana and earned millions of dollars in illegal proceeds. Additionally, the H-2 Cartel was involved in the possession and use of firearms, and substantial violence, including torture and dozens of homicides.
Between January 2013 and February 2017, the defendant conspired with the H-2 Cartel to distribute thousands of kilograms of heroin, cocaine, methamphetamine and marijuana, from Mexico into the United States, and distributed those narcotics in the New York area, including in the Eastern District of New York. Veytia used his position as the top law enforcement officer in his region to assist and abet drug trafficking organizations in Mexico. Veytia received bribes on a monthly basis and provided official sanction for the H-2 Cartel to engage in drug trafficking in Nayarit. Vetyia directed other corrupt Mexican law enforcement officers he oversaw to assist the H-2 Cartel, released members and associates of the H-2 Cartel from prison after they had been arrested for drug trafficking-related crimes, instructed corrupt Mexican law enforcement officers to target rival drug traffickers in Nayarit for wiretaps and arrests and assisted the H-2 Cartel with murders and other acts of violence, all of which helped the H-2 Cartel’s illegal drug enterprise flourish.
The DEA, FBI and HSI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) investigated the case. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The Office’s International Narcotics and Money Laundering Section of the United States Attorneys with the Narcotic and Dangerous Drug Section of the Department of Justice are handling the government’s case. Trial Attorneys Jason Ruiz and Anthony Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Michael P. Robotti, Craig R. Heeren and Ryan C. Harris of the Eastern District of New York are prosecuting the case.
Former Mexican State Attorney General Sentenced to 20 Years in Prison for Participation in International Narcotics Distribution ConspiracyRead the Press Release
Edgar Veytia, a dual citizen of the United States and Mexico, and the former State Attorney General for the State of Nayarit, Mexico, was sentenced today to 20 years’ imprisonment and ordered to pay $1 million in forfeiture following his guilty plea to participating in an international heroin, cocaine, methamphetamine and marijuana manufacturing and distribution conspiracy responsible for importing illegal drugs from Mexico to the United States. The sentencing was held before United States District Judge Carol Bagley Amon in federal court in Brooklyn
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; William D. Bodner, Special Agent-in-Charge, Drug Enforcement Administration, Los Angeles Division (DEA); Timothy M. Dunham, Special Agent-in-Charge, Federal Bureau of Investigation, Washington, D.C. Field Office (FBI); and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), announced the sentence.
“When Joaquin ‘El Chapo’ Guzmán was sentenced to life imprisonment, we warned that there were more days of reckoning to come. The sentence imposed on this corrupt Mexican government official makes this just such a day,” stated United States Attorney Donoghue. “Neither Mexican cartel leaders nor corrupt officials who assist them should sleep well tonight. We are coming for you.” Mr. Donoghue thanked the DEA New York Field Office for its assistance on the case.
“Today’s sentencing of Mr. Veytia shows DEA’s strong commitment to the rule of law and collaboration with other Government agencies,” said DEA Special Agent-in-Charge Bodner. “Our agents will continue to be relentless in the worldwide pursuit of drug traffickers and the corrupt government officials who protect them.”
“Veytia abused his position in the government and protected drug traffickers who brought dangerous drugs through his country to the U.S. on behalf of a violent Mexican drug cartel," stated FBI Special Agent-in-Charge Dunham. “The FBI stands for fair and honest law enforcement and will continue to investigate any individual who places greed over the rule of law and commits such crimes that bring harmful drugs and corruption to our communities.”
“Working with the cartel, Veytia used Mexican law enforcement to protect drug loads, intimidate and harm rival drug traffickers. He also used his role as Attorney General to obstruct justice when cartel members were arrested,” stated HSI Special Agent-in-Charge Fitzhugh. “Law enforcement partnerships in investigating this case is what brought this individual who used his position of power for criminal gains to now face justice for his actions.”
U.S. law enforcement has been investigating the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico, that was previously led by Juan Francisco Patron Sanchez. The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds. In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence, including torture and dozens of homicides.
Veytia used his position as the top law enforcement officer in the State of Nayarit to assist and sanction the cartel’s operations in Mexico, in exchange for bribes on a monthly basis. Vetyia also directed other corrupt Mexican law enforcement officers under his supervision to assist the H-2 Cartel, released members and associates of the cartel from prison after they had been arrested for drug trafficking-related crimes, instructed corrupt Mexican law enforcement officers to target rival drug traffickers for wiretaps and arrests and assisted the H-2 Cartel in carrying out murders and other acts of violence. In addition, Veytia assisted the H-2 Cartel in covering up the murder of a rival drug trafficker in October 2015.
The case was investigated by the DEA, FBI and HSI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and the Narcotics and Dangerous Drug Section of the Department of Justice. Assistant U.S. Attorneys Michael P. Robotti, Craig R. Heeren and Ryan C. Harris of the Eastern District of New York are prosecuting the case, together with Trial Attorneys Jason Ruiz and Anthony Aminoff of the Narcotics and Dangerous Drug Section.
The Defendant:
Edgar Veytia
Age: 48
EDNY Docket No. 17-CR-115 (CBA)Former Employee Indicted for Nearly $10 Million Fraud SchemeRead the Press Release
HOUSTON – A 65-year-old Lubrizol Corporation employee has been taken into custody following the return of a 10-count indictment for wire fraud, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the indictment under seal Sept. 17 against James Arthur Camp, of New Braunfels. Today, he is expected to make his initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m.
The indictment alleges Camp was employed at Lubrizol Corporation in Deer Park, a provider of specialty chemicals for the transportation, industrial and consumer markets. While employed there, he allegedly defrauded the company of $9,256,712.54 from approximately April 1998 through November 2017.
In order to execute the scheme, Camp submitted fraudulent invoices for laboratory services from two companies he owned, knowing they had not actually been performed. He then allegedly caused Lubrizol to issue payments to those companies. The indictment further alleges he used the fraudulently - obtained payments for his own personal use and benefit.
If convicted, Camp faces up to 20 years imprisonment on each count as well as a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Connecticut Physician Pays $300,000 to Settle False Claims Act AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office, today announced that DR. PHILIPPE R. CHAIN has entered into a civil settlement agreement with the federal government in which he will pay $300,000 to resolve allegations that he violated the False Claims Act.
Chain, who currently practices medicine in Florida, previously practiced medicine in Connecticut. While in Connecticut, Chain also worked for CallMD, a telemedicine company located Nevada, to perform telehealth services. The telehealth services Chain provided involved prescribing compounded medications to TRICARE beneficiaries.
TRICARE is the federal health care program for active duty military personnel, retirees, and their families. “Compounding” is a practice by which a pharmacist combines, mixes, or alters the ingredients of a drug to create a medication tailored to the needs of an individual patient. Compounded medications are not FDA-approved.
The government alleges that Chain caused pharmacies to submit false claims for compounded medications to TRICARE by issuing or approving prescriptions that were invalid, because Chain did not speak with or examine the patients in question and did not have an established physician-patient relationship with them. It is further alleged that many of the prescriptions were not medically necessary.
To resolve the government’s allegations under the False Claims Act, Chain agreed to pay $300,000, which covers claims submitted to the TRICARE program from January 28, 2015 through July 28, 2015.
“We will work to aggressively protect the health care benefits for our service members, veterans, and their families,” said U.S. Attorney Durham. “Health care providers who cause false claims to be submitted to federal health care programs will be held accountable.”
“One of the Defense Criminal Investigative Service’s (DCIS) investigative priorities is to ensure the integrity of TRICARE, the U.S. Department of Defense’s health care program for military members, retirees and their dependents,” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “This settlement is the result of a joint effort and demonstrates DCIS’ ongoing commitment to partner with the Connecticut U.S. Attorney’s Office to investigate and prosecute health care providers who submit false claims to TRICARE.”
This matter was investigated by the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Former CEO Pleads Guilty in Scheme to Defraud Elderly Victims in the Sale of Worthless StockRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KEITH ORLEAN, a/k/a “Jack Allen,” pled guilty to participating in a scheme to target elderly persons to solicit purchases of stock in a series of valueless companies through a variety of lies and misrepresentations. ORLEAN pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud before U.S. District Judge Vernon S. Broderick.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Keith Orlean purported to offer elderly victims time-sensitive investment opportunities. In actuality, he was selling victims a package of false promises that yielded profit only for him and his co-defendants. Orlean now awaits sentencing for his predatory practices.”
According to the allegations contained in the Complaint, the Indictment, and statements made in related court filings and proceedings:[1]
For several years, ORLEAN and his co-defendants operated a fraudulent scheme in which a salesman named “Mike Palmer” would call elderly persons on the phone and offer them what he claimed was a time-sensitive opportunity to buy stock in certain companies. In fact, there was no “Mike Palmer,” and the salesman was actually one or the other of ORLEAN’s two co-defendants, who were taking turns using the fake alias. The purported time-sensitive investment opportunity was also fabricated by the defendants, as the companies in which they solicited investments were actually companies under their control. In one intercepted phone conversation, Co-defendant-1 described to ORLEAN his strategy for a successful investor sales pitch as: “You ram it down their fucking throat.” In another intercepted call between Co-defendant-1 and ORLEAN, upon learning that a particular victim investor died, Co-defendant-1 remarked: “I knew I should have pulled the last $10,000 out of him.”
The most recent version of the defendants’ phony sales pitch included false representations about an impending initial public offering, or “IPO,” for their company, Digital Donations Technologies, Inc. For example, in April 2018, one of the defendants assured a victim investor that “our company is doing great,” that the company had an offer for an IPO valued at approximately $300 million, and that defendant KEITH ORLEAN was considering a private sale of the company for more than $1.5 billion. In truth, however, the defendants knew that the company had little or no actual commercial value and that no such IPO or sale was taking place.
The Federal Bureau of Investigation ("FBI") estimates that since April 2014, the defendants have convinced more than approximately 50 elderly persons to purchase stock in companies controlled by one or more of the defendants based on false representations. The defendants appear to have solicited more than $2 million in stock purchases from victims.
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ORLEAN, 61, of Dix Hills, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum penalty of five years in prison, and one count of securities fraud, which carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ORLEAN is scheduled to be sentenced before Judge Broderick on January 10, 2020, at 3:00 p.m.
Mr. Berman praised the outstanding work of the FBI.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Robert Boone and Andrew Thomas are in charge of the case.
[1] As for ORLEAN’s co-defendants, the description of the charges set forth herein constitute only allegations.
Former Allen County Sheriff sentenced to more than 11 years in prison for asking for and taking bribes from people arrested in prostitution stings, suspected gamblers and othersRead the Press Release
The former Allen County Sheriff was sentenced to more than 11 years in prison for asking for and taking bribes from people arrested in prostitution stings, suspected gamblers and others.
Samuel A. Crish, 56, previously pleaded guilty to multiple counts of extortion and soliciting bribes. He was sentenced to 136 months in federal prison and ordered to pay $606,221 in restitution.
“The former sheriff earned every day of this sentence,” U.S. Attorney Justin Herdman said. “His conduct is an affront to the men and women in law enforcement and the citizens he pledged to protect and serve. Using his office and badge to demand bribes from gamblers and people arrested in prostitution stings is beyond offensive.”
"Mr. Crish will now serve the well deserved punishment handed down by the judge for his abhorrent criminal behavior,” said FBI Special Agent in Charge Eric Smith. “Law enforcement officers take an oath to enforce the law, not break the law."
Court documents detail Crish extorting or soliciting tens of thousands of dollars from several people between 2012 and 2016.
According to court documents:
Crish joined the Allen County Sheriff’s Office in 1991, where he held numerous positions, including commander of the office’s Investigative Division and the West Central Ohio Crime Task Force (WCOCTF). He was elected sheriff in 2008, 2012 and 2016.
In June 2012, Crish approached a person identified in the charges as Person 1 and asked Person 1 for $8,000, falsely stating he needed the money to cover medical bills. Person 1 gave Crish the money in cash in an alley behind the sheriff’s office in July 2012.
Two months later, Person 1 applied for the position of nurse at the Allen County Jail, which Crish oversaw. Based on conversations with Crish, Person 1 understood the job was theirs. Crish stated in October 2012 he would try to hire Person 1 as nurse. In the same conversation, he stated he needed $42,000 to pay his debts and asked if Person 1 could help.
Person 1 took out a home equity line of credit and, on Oct. 12, 2012, gave Crish a check for $42,000 in the alley behind the sheriff’s office. Crish agreed to repay the money in monthly increments of $480. On Dec. 15, 2012, Person 1 was hired by the Allen County Sheriff’s Office to work as the nurse at the county jail.
Person 3 operated a used car business and was arrested by members of the sheriff’s office and WCOCTF on Aug. 19, 2015 during a prostitution sting. He was charged with solicitation in Lima Municipal Court.
Crish visited Person 3’s business several times in August and September 2015, at one point asking Person 3 for a $7,000 loan. Person 3 gave Crish a check for $7,000 on Sept. 25, 2015.
Crish met with prosecutors and law enforcement officials about Person 3’s case on Nov. 24, 2015, and demanded the Lima City Attorney’s Office drop the charges. The solicitation case was dismissed on Feb. 18, 2016. Eight days later, Crish texted Person 3 to meet, where they discussed the dismissal of Person 3’s case.
Person 4 operated a used car business in Elida, Ohio. Crish asked Person 4 in September 2015 to work as an informant. He also asked Person 4 to loan him $10,000.
Person 4 gave Crish $10,000 in cash on Nov. 3, 2015. The next day, Person 4 was arrested at a motel in Lima as part of a prostitution sting operation. Following his arrest, Person 4 asked to speak to Crish. All of the other men arrested were charged.
Crish visited Person 4’s business on Nov. 5, 2015, and told him not to worry about the arrest because he was working for Crish.
Crish visited Person 4’s business again on Nov. 17, 2015, and asked for $500. Person 4 insisted Crish would have to pay back the $500, unlike the previous $10,000. Crish called Person 4 in May 2016 and told him he was “fine” referring to the charges for the prostitution arrest.
Person 5 owned a grocery store in Allen County. Crish stopped by Person 5’s business in October 2015 to ask for a loan. Crish inferred during the visit that an agency was coming to investigate Person 5’s business for suspected illegal gambling operations, but that Crish could stop the investigation if Person 5 provided Crish with a loan.
Person 5 gave Crish a $2,000 loan in October 2015, which Crish repaid without interest.
The FBI and the Ohio Bureau of Criminal Investigation investigated the case, and it was prosecuted by Assistant U.S. Attorney Gene Crawford.
Five Defendants, Including Two Medical Doctors, Charged as Part of Northeast Regional Health Care Fraud TakedownRead the Press Release
Four individuals, including two doctors, a pharmacist who had previously lost his license and been excluded from participating in the Medicaid and Medicare programs and a pharmacy owner have been charged for their participation in schemes in which the Medicare and Medicaid programs were fraudulently billed more than $17 million. A fifth individual, a registered nurse, pleaded guilty to possession of fentanyl that he stole from his employer, a hospital on Long Island. The charges filed in federal court in Brooklyn and Central Islip are part of a coordinated health care fraud enforcement action across seven federal districts in the northeast United States, led by the Medicare Fraud Strike Force, that resulted in criminal charges against 48 defendants for their alleged participation in health care fraud schemes involving more than $800 million in false and fraudulent claims.
The charges were announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, New York Regional Office (HHS-OIG).
“As alleged, defendants charged in the Eastern District of New York used fraud and deceit to steal Medicaid and Medicare funds meant to protect our elderly and most vulnerable residents,” stated United States Attorney Donoghue. “As this initiative demonstrates, we will continue to bring to justice those that defraud our nation’s health care programs.”
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” stated Assistant Attorney General Benczkowski. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“As alleged today, the defendants took advantage of programs established for the benefit of those less fortunate, allowing themselves to profit by defrauding the government of public money. May today’s charges remind those who tear holes in the government safety net that they will face the error of their ways,” stated FBI Assistant Director-in-Charge Sweeney.
“There is no difference between the diversion of prescription medication to street drug trafficking,” stated DEA Special Agent-in-Charge Donovan. “Allegedly, Kevin McMahon abused his position as a registered nurse diverting fentanyl for his personal use. The DEA and our law enforcement partners’ goal is to keep our citizens safe by guarding against health care fraud and the illegal diversion of prescription medication.”
“Healthcare fraud is not a victimless crime—with unscrupulous providers preying on Medicare beneficiaries and taxpayers alike. Especially insidious is the fraud committed by healthcare professionals who are trusted to provide needed, quality services to patients,” stated HHS-OIG Special Agent-in-Charge Lampert. “With our law enforcement partners, our agency will continue to thoroughly investigate medical providers and others involved in healthcare fraud.”
The schemes charged in the Eastern District of New York, detailed in two indictments, one complaint and one criminal information, are as follows:
United States v. Anna Steiner: The superseding indictment charges Anna Steiner, a licensed anesthesiologist, was charged for her role in an alleged $17.4 million health care fraud scheme related to the payment of kickbacks in return for prescribing and ordering durable medical equipment, prescription drugs and diagnostic tests that were neither medically necessary nor resulted from an examination by or consultation with a physician. Steiner was charged with conspiracy to commit health care fraud and health care fraud in a superseding indictment filed on September 19, 2019. The case is being prosecuted by Department of Justice Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section.
United States v. Denny Martin: Denny Martin, a licensed neurologist who was the sole owner of AM PM Medical P.C., was charged with health care fraud for his role in a scheme to falsely bill Medicare for treatments that were never performed. Between 2015 and 2019, AM PM Medical P.C. submitted more than 3,000 in fraudulent claims for home health and podiatry visits to the Medicare program. Martin was arrested this morning and arraigned before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The case is being prosecuted by Assistant United States Attorney William P. Campos of the U.S. Attorney’s Office for the Eastern District of New York.
United States v. Andrew Barrett and Phyllis Pincus: Andrew Barrett, a pharmacist who had been previously convicted of healthcare fraud in 2016 and excluded from the Medicare and Medicaid programs, and Phyllis Pincus, the sole proprietor of two New York-based pharmacies, were indicted on September 24, 2019 for health care fraud, false claims and conspiracy to defraud the United States by submitting fraudulent claims to Medicare and Medicaid for medications that were not actually dispensed to patients. The case is being prosecuted by Assistant United States Attorney William P. Campos of the U.S. Attorney’s Office for the Eastern District of New York.
United States v. Kevin McMahon: Kevin McMahon, a registered nurse, was charged with possession of fentanyl, a Schedule II controlled substance. The charge stem from McMahon’s theft of a synthetic opioid fentanyl while employed at Nassau University Medical Center. McMahon was arraigned and pleaded guilty to a criminal information at the federal courthouse in Central Islip on September 25, 2019. The case is being prosecuted by Assistant United States Attorney Erin E. Argo of the U.S. Attorney’s Office for the Eastern District of New York.
The Eastern District of New York’s Healthcare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section, was created in 2009 and since its inception has charged well over 100 defendants, many of which were medical professionals.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty.
The Defendants:
DR. ANNA STEINER
Age: 63
Valatie, New York
E.D.N.Y. Docket No. 19-CR-295 (ILG)DR. DENNY MARTIN
Age: 46
New York, New York
E.D.N.Y. Docket No. 19-MJ-847ANDREW BARRETT
Age: 60
New City, New YorkE.D.N.Y. Docket No. 19-CR-436 (RJD)PHYLLIS PINCUS
Age: 58
New City, New York
E.D.N.Y. Docket No. 19-CR-0436 (RJD)KEVIN McMAHON
Age: 31
Seaford, New York
E.D.N.Y. Docket No. 19-CR-422 (ARL)Final defendant pleads guilty in Vegas-to-Columbus oxy ring, marking 22nd convictionRead the Press Release
COLUMBUS, Ohio – The 22nd and final defendant related to a Las Vegas-to-Columbus oxycodone distribution ring pleaded guilty in U.S. District Court today.
Edward Vaughns, 56, of Las Vegas, pleaded guilty to conspiring to possess with intent to distribute oxycodone and to launder money.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), Mona Passmore, acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, and Ohio Attorney General Dave Yost announced the plea entered into today before U.S. District Judge Edmund A. Sargus Jr.
According to court documents, defendants had been diverting oxycodone pills from the Las Vegas area to Columbus since at least 2012. Law enforcement officials seized numerous U.S. mail packages containing thousands of oxycodone pills and large amounts of cash being sent between Las Vegas and Columbus in connection with this drug trafficking organization.
The co-conspirators also engaged in financial transactions – making use of wire transfers, bank accounts, and prepaid debit cards – involving hundreds of thousands of dollars to conceal the nature and source of their profits and promote the drug trafficking organization’s activities. Money was used to purchase airline tickets, pay for hotel rooms and cover other costs associated with bringing the drugs to Columbus for distribution.
According to Vaughns’ plea, specifically, Vaughn was responsible for the distribution of at least 15,000 oxycodone pills.
Others charged in the related cases include: Marcus Pryor, Marquis Pryor, Maisha Caples, Michael Griffin, James Stone, David Pryor, Sukita Williams, Danny Williams, Russell Briggs, Richard Briggs, Tiana Castro, Dontonyo Courtney, Larissa Harris-Patterson, Joquline Harris, Alfred James, Rashod Todd, Raynard Miller, Arthur Pirtle, Thomas Lane, Gary Washington and Jerry Campbell.
U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS Criminal Investigation, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorneys Michael J. Hunter and Brian J. Martinez, who are prosecuting the cases.
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Federal, state & local law enforcement to announce significant law enforcement action involving 19 charged defendantsRead the Press Release
DAYTON – Today the government has unsealed charges against 19 individuals in an alleged narcotics conspiracy. Arrests were made this morning.
The briefing will be held:
TODAY: THURSDAY, SEPTEMBER 26, 2019
WHEN: 1:30 P.M.
WHERE: Walter H. Rice Federal Building & U.S. Courthouse
Front Steps
200 West 2nd Street
Dayton, Ohio 45402
WHO: U.S. Attorney Benjamin C. Glassman
Mauricio Jimenez, assistant special agent in charge, DEA
ID and media credentials will be required.
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Federal Officials Close Civil Rights Investigation into the Fatal Shooting of Stephon ClarkRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott and Special Agent-in-Charge Sean Ragan of the FBI’s Sacramento Division today announced that the independent federal review into the fatal shooting of Stephon Clark on March 18, 2018, found insufficient evidence to support federal criminal civil rights charges against the Sacramento Police Department officers involved. Officials from the U.S. Attorney’s Office and the FBI met today with Clark’s family to inform them of this decision.
After a careful and thorough review into the facts surrounding the shooting, federal investigators and prosecutors determined that there is insufficient evidence to prove beyond a reasonable doubt a violation of the federal statute. Accordingly, the investigation into this incident has been closed.
The U.S. Attorney’s Office, the FBI, and career prosecutors in the Civil Rights Division conducted a comprehensive, independent review of the events surrounding the shooting that resulted in Clark’s death. Federal authorities also reviewed all of the evidence generated by the Sacramento Police Department, the Sacramento County District Attorney’s Office, and the California Department of Justice in earlier investigations, including witness statements, audio and video recordings, dispatch records, police reports, and autopsy reports, and gathered additional evidence pertinent to the federal investigation.
The federal investigation sought to determine whether the evidence of the events that led to Clark’s death was sufficient to prove beyond a reasonable doubt that any officer’s actions violated federal criminal civil rights statutes. Under the applicable federal law, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer’s use of force was objectively unreasonable in light of the facts and circumstances at the time and that the officer acted willfully, with the purpose of using objectively unreasonable force.
The Department of Justice is committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Returns Guilty Verdict in Illegal Firearm, Methamphetamine TrialRead the Press Release
Columbus—A convicted felon with an extensive criminal history in both Alabama and Georgia was found guilty late Tuesday on illegal gun and drug charges, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. After deliberating approximately two hours, a citizen jury found Freddie Clark, 42, of Phenix City, AL guilty on all three charges, including possession of a firearm by a convicted felon, possession of methamphetamine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. U.S. District Judge Clay Land presided over the federal jury trial in Columbus beginning on Monday, September 23, 2019. Mr. Clark faces a combined maximum 512 months imprisonment for his crimes and will be sentenced on February 4, 2020. There is no parole in the federal system.
“The penalties for serial criminals in the Middle District of Georgia are severe. Repeat, dangerous offenders will not be tolerated by law-abiding citizens or law enforcement,” said Charlie Peeler, the U.S. Attorney. “It is a priority of this office to target and prosecute violent offenders who harm the safety of our communities. I want to thank the Columbus Police Department and the ATF for their work in this case.”
Mr. Clark was pulled over by a Columbus Police Department officer for extreme erratic driving March 14, 2018 at 3:30 a.m. on Buena Vista Road. Mr. Clark did not exit the car as directed, and upon approaching the vehicle, the arresting officer saw a pistol on Mr. Clark’s lap. The officer was able to remove the loaded Ruger .380 from Mr. Clark and the defendant was taken into custody. Officers found various drugs and 85 grams of methamphetamine on Mr. Clark and inside his vehicle. Mr. Clark has a total of eight prior felony convictions in Alabama and Georgia state courts.
This case was prosecuted 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.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Federal Jury Convicts Sex Trafficker of Using Crack Cocaine and Heroin to Coerce Victims into ProstitutionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Valentino Shine, Sr., 51, of Buffalo, NY, of five counts of sex trafficking, and one count each of sex trafficking conspiracy, narcotics conspiracy, using and maintaining a drug-involved premises, and possession with intent to distribute crack cocaine. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum penalty of life, and a $20,000,000 fine.
Assistant U.S. Attorneys Elizabeth R. Moellering and Meghan A. Tokash, who prosecuted the case, with support from the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit, stated that the defendant ran a sex trafficking operation out of his Humboldt Parkway residence in Buffalo. Shine preyed upon and exploited women who were vulnerable and addicted to drugs, coercing them to engage in commercial sex acts. The defendant provided or withheld drugs to coerce the victims to engage in commercial sex acts.
According to evidence presented by the government at trial, Shine was recovering from a cocaine addiction and knew the power that drug addiction could have over someone. The defendant used this as a weapon to target vulnerable women. Shine’s motto was “BABI PAE” – Break a (expletive) Incorporated; Pimping Ain’t Easy.
At the urging of the defendant, victims advertised on backpage.com. After performing sex acts for money, they would give that money to Shine. Money was important to Shine. When signing his name, the defendant wrote CREAM: “Cash Rules Everything Around Me.”
In addition to using drugs to control his victims, Shine also used physical beatings, manipulation, and brainwashing.
Three women who worked for the defendant died of drug overdoses as a result of their addictions.
“Let this verdict serve as a warning to predators like Valentino Shine who think that they can exploit women and girls for profit and sexual servitude,” stated U.S. Attorney Kennedy. “My Office simply will not permit human traffickers—the modern day equivalent of slave owners—to exist in our community. I find it particularly fitting that defendant’s reign of terror, which involved at least nine female victims, was officially ended by two outstanding AUSAs in our Office—both of whom happen to be female—Meghan Tokash and Elizabeth Moellering. Sometimes the results achieved at trial seem particularly just—this was one of those trials.”
“The guilty verdict in this case makes it clear that Mr. Shine preyed on the vulnerable as do most traffickers,” said Kevin Kelly, HSI Buffalo, Special Agent-in-Charge. “So many of our investigations begin with identifying victims, which is why a key component of our work involves HSI's victim-centered approach to these cases. It’s critical that we work closely with survivors, helping them obtain necessary support services so they are able to move on with their lives and potentially participate in the prosecution of their trafficker, which was key in the case against Mr. Shine.”
The verdict is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Human Trafficking Task Force of the Western District of New York.
Sentencing is scheduled for December 12, 2019, at 3:30 p.m. before Chief U.S. District Judge Frank P. Geraci, Jr., who presided over the trial of the case.
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Federal Jury Convicts Bullhead Man of Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that Daniel Brown, age 29, of Bullhead, South Dakota, was found guilty of involuntary manslaughter as a result of a federal jury trial in Aberdeen, South Dakota. United States District Judge Charles B. Kornmann presided over the trial proceedings.
The charges carry a maximum penalty of 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
According to the evidence presented at trial, on or about September 8, 2018, in Bullhead, South Dakota, Daniel Brown unlawfully killed Dionne Brown Otter by operating a motor vehicle recklessly while under the influence of alcohol and a controlled substance. Brown had a blood alcohol content of .22 percent and methamphetamine in his system. While driving up an unmaintained steep hill that had a walking path, Brown lost control of his crew cab truck, causing it to roll down the hill. As a result of the roll, two people were ejected, including Dionne Brown Otter. The second individual also sustained serious injuries.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Office of Justice Services, and the South Dakota Highway Patrol. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
A presentence investigation was ordered and a sentencing date was set for December 16, 2019. The defendant was remanded to the custody of the U.S. Marshals Service.
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Federal Health Care Fraud Takedown in Northeastern U.S. Results in Charges Against 48 IndividualsRead the Press Release
The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in loss and the distribution of over 3.25 million pills of opioids in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims, including charges against 15 doctors or medical professionals, and 24 who were charged for their roles in diverting opioids.
In addition to the new charges, today’s enforcement action also includes the guilty pleas of three corporate executives, including the Vice President of Marketing of numerous telemedicine companies and two owners of approximately 25 durable medical equipment companies, for their roles in causing the submission of over $600 million in fraudulent claims to Medicare. This is one of the largest health care fraud schemes ever investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice, which previously resulted in charges against 21 other defendants. The enforcement action also includes three additional recent guilty pleas by other defendants. In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI) announced today that all appropriate administrative actions would be taken based on these charges. As part of the announcement in April, CMS/CPI announced that it took administrative action against 130 DME companies that submitted over $1.7 billion in claims to the Medicare program.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigations (IRS-CI), Department of Defense-Defense Criminal Investigative (DoD-DCIS), Food and Drug Administration-Office of Inspector General (FDA-OIG), U.S. Postal Service-Office of Inspector General (USPS-OIG), the Medicaid Fraud Control Unit and other federal and state law enforcement agencies participated in the operation.
The charges and guilty pleas announced today continue to target corporate health care fraud involving fraudulent telemedicine companies and the solicitation of illegal kickbacks and bribes from health care suppliers in exchange for the referral of Medicare beneficiaries for medically unnecessary durable medical equipment and other testing. The charges also involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss to the public fisc, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement assistant U.S. attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and my Office, and our focus in this area continues to pay off.”
“Under the law, healthcare professionals are obligated to exercise appropriate care and judgment in the manner in which opiates are prescribed and distributed in order to ensure that such substances are, in fact, ‘controlled,’” said U.S. Attorney James P. Kennedy Jr. of the Western District of New York. “When such professionals abandon that obligation and instead engage in acts of fraud and deceit, they will be prosecuted.”
“As alleged, defendants charged in the Eastern District of New York used fraud and deceit to steal Medicaid and Medicare funds meant to protect our elderly and most vulnerable residents,” stated U.S. Attorney Donoghue of the Eastern District of New York. “As this initiative demonstrates, we will continue to bring to justice those that defraud our nation’s health care programs.”
“We continue to work closely with our law enforcement partners to identify, investigate and eliminate fraud, waste and abuse in the nation’s federal healthcare programs,” said Deputy Administrator and CPI Center Director Alec Alexander. “In this case, CMS will take swift administrative action against providers responsible for fraudulent billings to federal healthcare programs. CMS is committed to protecting vulnerable beneficiaries from exploitation and safeguarding taxpayer dollars.”
“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law," said Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”
“Healthcare fraud is not a victimless crime—with unscrupulous providers preying on Medicare beneficiaries and taxpayers alike. Especially insidious is the fraud committed by healthcare professionals who are trusted to provide needed, quality services to patients,” said Special Agent in Charge Scott J. Lampert of HHS-OIG. “With our law enforcement partners, our agency will continue to thoroughly investigate medical providers and others involved in healthcare fraud.”
“The physicians who chose to violate their oaths to “Do no harm” are nothing more than drug dealers wearing a white lab coat,” said Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s New Jersey Field Division. “They have turned their backs on those most vulnerable. We will continue to vigorously pursue these doctors who violate the faith and trust of those who need help.”
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Among those charged in the District of New Jersey are the following:
Elliot Loewenstern, 56, of Boca Raton, Florida, the vice president of marketing of purported call centers and telemedicine companies, pleaded guilty on Sept. 24, 2019, for his role in one of the largest health care fraud schemes ever investigated by the FBI and HHS-OIG and prosecuted by the Department of Justice, which resulted in charges in April 2019 against 24 defendants. Loewenstern pled guilty to one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of solicitation of health care kickbacks. Loewenstern was the Vice President of Marketing of PCS CC LLC and a marketer for Video Doctor USA (Video Doctor) and Telemed Health Group LLC (AffordADoc) (collectively, the Video Doctor Network). In connection with his plea agreement, Loewenstern admitted causing the submission of over $424 million in fraudulent claims that resulted from the solicitation of illegal kickbacks and bribes in exchange for the referral of brace orders to brace providers. In connection with his guilty plea, Loewenstern admitted that he and others agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, brace suppliers and others in exchange for the arranging for doctors to order medically unnecessary orthotic braces for beneficiaries of Medicare and other insurance carriers. The beneficiaries were contacted through an international telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America, Loewenstern stated. Loewenstern admitted that many of these orders were written after only a short telephone call between the health care provider and the beneficiary, with whom the health care provider had no prior doctor-patient relationship. In addition, Loewenstern admitted that he was aware that the owners and other executives of the Video Doctor Network schemed to defraud investors and others by making false and fraudulent representations that the Video Doctor Network was a legitimate telemedicine enterprise that made revenue of “$10 million per year” and “20 percent profit” from payments by beneficiaries who enrolled in a membership program and paid for the telemedicine consultations. These statements were false because revenue was obtained by the Video Doctor Network through the receipt of illegal kickbacks and bribes, Loewenstern admitted. In connection with his plea agreement, Loewenstern agreed to pay $200 million in restitution to the United States, as well as forfeit assets and property traceable to proceeds of the conspiracy to defraud the United States. Loewenstern’s sentencing is set for Jan. 9, 2020, before U.S. District Judge Madeline Cox Arleo of the District of New Jersey, who accepted his plea. Loewenstern was charged along with Creaghan Harry, 51, of Highland Beach, Florida, and Lester Stockett, 52, of Medellin, Colombia, in an indictment charging one count of conspiracy to defraud the United States and pay and receive health care kickbacks and four counts of health care kickbacks. Stockett and Harry were separately charged with one count of conspiracy to commit money laundering. Stockett, the Chief Executive Officer, previously entered a plea of guilty to one count of conspiracy to defraud the United States and one count of money laundering. The case against Harry is pending. Trial has not been set. The case was investigated by FBI, HHS-OIG, and IRS-CI. The case is being prosecuted by Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section.
Joseph DeCoroso, M.D., 62, of Toms River, New Jersey, pleaded guilty for his role in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for durable medical equipment (DME), in many instances without ever speaking to the patients, while working for two telemedicine companies. Sentencing is set for Jan. 8, 2020. The case was investigated by FBI Newark and HHS-OIG. The case is being prosecuted by Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
Nelly Petrosyan, 56, of New York, New York, the owner and operator of orthotic brace suppliers in New York, New York, was indicted on one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and three counts of payment of health care kickbacks. The charges result from a $5.6 million conspiracy in which Petrosyan offered and paid kickbacks and bribes to several purported telemedicine companies in exchange for completed doctors’ orders of medically unnecessary orthotic braces for Medicare beneficiaries. Petrosyan and her coconspirators concealed the fraud by entering into sham contracts and producing false invoices characterizing the kickbacks and bribes as payments for “marketing.” The investigation was conducted by FBI Newark and HHS-OIG. The case is being prosecuted by Trial Attorney Darren Halverson.
Alice Chu, M.D., 62, of Fort Lee, New Jersey, was indicted on one count of conspiracy to commit health care fraud and four counts of health care fraud. The charges stem from Chu’s alleged submission of false and fraudulent claims to Medicare and private insurance companies for services that were medically unnecessary, never provided, not provided as represented or not eligible for reimbursement. Chu was allegedly induced by a financial incentive to order expensive and medically unnecessary lab tests that were paid for by Medicare. The investigation was conducted by FBI Newark, HHS-OIG, DOD-DCIS and FDA-OIC. The case is being prosecuted by Trial Attorney Rebecca Yuan of the Fraud Section.
Aaron Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 40, of Englishtown, New Jersey, owners of approximately 25 durable medical equipment companies, pleaded guilty on Sept. 18 and Sept. 25, respectively, for their participation in a health care fraud scheme related to their payment of kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Levit’s conduct admittedly caused losses in excess of $120 million and Williamsky’s conduct admittedly caused losses in excess of $170 million. Williamsky also pleaded guilty to a money laundering conspiracy related to his attempt to conceal at least $1.65 million of the proceeds of the fraud. The case was investigated by FBI, HHS-OIG, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Sean Sherman and Stephen Ferketic of the District of New Jersey.
Bernard Ogon, M.D., 46, of Burlington, New Jersey, pleaded guilty on Sept. 25 to one count of health care fraud conspiracy for his participation in a vast compounded medication telemedicine conspiracy. As part of the conspiracy, Ogon admittedly signed prescriptions for compounded medications (that is, medications with ingredients of a drug tailored to the needs of a particular patient) without having established a doctor-patient relationship, spoken to the patient or conducting any medical evaluation. Ogon often signed preprinted prescription forms—with patient information and medication already filled out—where all that was required was his signature. Then, instead of providing the prescription to the patient, Ogon would return the prescriptions to specific compounding pharmacies involved in the conspiracy. Ogon was paid $20 to $30 for each prescription he signed, and his participation in the conspiracy caused losses to health care benefit programs of over $24 million, including losses to government health care programs of over $7 million. The case was investigated by FBI Newark and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney Jason Gould of the District of New Jersey.
Joseph Santiamo, 64, of Staten Island, New York, a physician specializing in internal medicine and geriatrics was charged for allegedly conspiring to distribute and dispense controlled substances, including oxycodone, in exchange for sexual favors, and outside the usual course of professional practice and not for a legitimate medical purpose. The case is being prosecuted by Assistant U.S. Attorney Brian Urbano of the District of New Jersey.
Yana Shtindler, 44, of Glen Head, New York; Samuel “Sam” Khaimov, 47, of Glen Head, New York; Alex Fleyshmakher, 33, of Morganville, New Jersey; and Ruben Sevumyants 36, of Marlboro, New Jersey were indicted in connection with a scheme at Prime Aid Pharmacies (located in Union City, New Jersey and Bronx, New York) that included: (a) paying illegal bribes and kickbacks to doctors and doctors’ employees in exchange for prescription referrals to Prime Aid; (b) billing health insurance providers for medications that were never actually provided to patients; and (c) opening new pharmacies and concealing the true ownership of those pharmacies to obtain lucrative contracts they otherwise would not have obtained. The scheme of billing for medications that were never dispensed to patients was so egregious that Prime Aid received reimbursement payments of over $65 million for prescription medications that it never even ordered from distributors or had in stock. In total, Prime Aid’s multiple schemes defrauded Medicare, Medicaid, and private insurers out of at least $99 million. The case is being prosecuted by Assistant U.S. Attorney Joshua Haber of the District of New Jersey.
Eduard “Eddy” Shtindler, 36, the owner and operator of Empire Pharmacy in West New York, New Jersey, was charged by criminal complaint for paying bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. On occasion, Shtindler secreted cash bribes in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy. In addition, starting in 2015, Empire – at Shtindler’s direction – perpetrated a fraudulent scheme to induce doctors to send expensive specialty medication prescriptions to Empire. Specialty medications often required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. To receive prior authorization approval more quickly and successfully than any other pharmacies, Empire employees, including two pharmacists, repeatedly falsified prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In total, Empire defrauded Medicare and Medicaid out of at least $2 million. The case is being prosecuted by Assistant U.S. Attorney Joshua Haber of the District of New Jersey.
Matthew S. Ellis, 53, of Gainesville, Florida; Edward B. Kostishion, 59, Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania, and Jeffrey Tamulski, 46, of Tampa, Florida were indicted in connection with a genetic testing health care fraud scheme. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 in bribes. The case is being prosecuted by Assistant U.S. Attorney Bernard Cooney of the District of New Jersey.
Among those charged in the Eastern District of Pennsylvania are the following:
Timothy F. Shawl, 60, of Garnet Valley, Pennsylvania, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. Shawl allegedly wrote prescriptions for controlled substances for patients without seeing, treating or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients amounting to over 29,000 oxycodone tablets. The FBI conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the Fraud Section.
Neil K. Anand, M.D., 42, of Bensalem, Pennsylavia, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, Pennsylvania, Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the U.S. Office of Personnel Management (OPM) and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” bags of medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances. Malik and Kundi allegedly wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova allegedly prescribed over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone totaling over 634,000 oxycodone tablets. The investigation was conducted by the FBI, HHS-OIG, USPS-OIG and OPM. The case is being prosecuted by Trial Attorney Debra Jaroslawicz.
Twelve indictments were unsealed involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, drove many miles to pharmacies in Mt. Laurel, New Jersey, Marcus Hook, Pennsylvania, Drexel Hill, Pennsylvania, and Kennett Square, Pennsylvania. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone. According to the indictments, the defendants would often travel together to the pharmacies to fill their forged prescriptions. Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock; Crystal Coleman, 31; Marques Russell, 35, and Joseph Michael Simmons, 31. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. The case was jointly investigated by the DEA’s Tactical Diversion Squad, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office and the Easttown Township Police Department. The cases are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes and Mary Kay Costello of the Eastern District of Pennsylvania.
Search and seizure warrants are being executed today at approximately six different locations. The search and seizures are being executed by law-enforcement officers from six federal agencies, including HHS-OIG, the FBI, USPS-OIG, DOL-OIG, DOD and OPM.
Among those charged in the Eastern District of New York are the following:
Anna Steiner, M.D., also known as “Hanna Wasielewska,” 63, of Valatie, New York, a licensed anesthesiologist, was charged in a superseding indictment for an alleged $17.4 million health care fraud scheme related to the payment of kickbacks in return for the ordering of DME, prescription drugs and diagnostic tests that were not medically necessary and not the result of an actual doctor-patient relationship. Steiner was originally indicted on July 9, 2019. The case was investigated by FBI and HHS-OIG. The case is being prosecuted by Fraud Section Trial Attorney Andrew Estes.
Dr. Denny Martin, 46, of New York, New York, a licensed Neurologist, was charged in a complaint for an alleged healthcare fraud scheme related to the billing of doctor home visits where none actually occurred. The case is being prosecuted by Assistant U. S. Attorney William P. Campos.
Andrew Barrett, 60, of New City, New York, and his former wife, pharmacy owner Phyllis Pincus, 58, of New City, New York, were charged by indictment with healthcare fraud and false claims in a scheme where they billed insurers for medications not actually dispensed to patients. In 2016, Barrett was sentenced to 43 months’ incarceration upon his guilty plea to tax fraud and healthcare fraud in which he billed insurers for medications not actually dispensed to patients. He was excluded from participation in the Medicare and Medicaid programs for over 20 years. The case is being prosecuted by Assistant U.S. Attorney William P. Campos.
Kevin McMahon, 31, of Seaford, New York, a registered professional nurse, was charged in a misdemeanor information with possession of fentanyl, which he obtained through the course of his employment at Nassau University Medical Center. McMahon will plead guilty to the information pursuant to a plea agreement and has agreed to surrender his nursing license at the time of his plea. The case is being prosecuted by Assistant U.S. Attorney Erin E. Argo.
Among those charged in the Western District of New York are the following:
Jillian Marks, 37, of Orchard Park, New York, a licensed nurse practitioner, was charged with obtaining controlled substances through fraud, wrongful use of government seal, and identity theft. With access to the Neighborhood Health Center in the City of Buffalo’s internal computer databases, the defendant allegedly abused her position and illegally accessed the Allscripts prescription prescribing portal. Marks allegedly prescribed approximately 2,000 dosage units of controlled substances such as Adderall and Oxycodone, in the names of health center patients, which she then had filled and picked up at local pharmacies. At one point, Marks allegedly forged a letter from the DEA in order to appear “good” to her employer and allegedly used the DEA seal illegally. The DEA conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Adler and Misha A. Coulson of the Western District of New York.
Karen Melton, 45, of Cuba, New York, was charged with obtaining controlled substances through fraud. Melton, a medical secretary working for a physician in Olean, New York, was not licensed to prescribe controlled substances. However, Melton allegedly used her access within the office to issue fraudulent prescriptions in her own name in both paper and electronic form. The prescriptions were allegedly issued without a legitimate medical purpose. Between September 2016 and May 2019, Melton allegedly issued 59 fraudulent prescriptions for controlled substances, including hydrocodone. The DEA conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Adler and Misha A. Coulson.
Among those charged in the District of Connecticut are the following:
Philippe R. Chain, M.D., has entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Connecticut, in which he will pay $300,000 to resolve allegations that he violated the False Claims Acts. Chain, who currently practices medicine in Florida, previously practiced medicine in Connecticut and performed telehealth services from Connecticut for a telemedicine company located in Las Vegas, Nevada. The telehealth services Chain provided involved prescribing compounded medications to TRICARE beneficiaries. TRICARE is the federal health care program for active duty military personnel, retirees, and their families. The government alleges that Chain caused pharmacies to submit false claims for compounded medications to TRICARE by issuing or approving prescriptions which were invalid, because Chain did not speak with or examine the patients in question and did not have an established physician-patient relationship with them, in exchange for compensation paid to Chain. This matter was investigated by the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot of the District of Connecticut.
Among those charged in the Western District of Pennsylvania are the following:
Emilio Ramon Navarro, M.D., 58, of Coal Center, Pennsylvania, was charged with unlawfully dispensing controlled substances and health care fraud. Counts 1 – 28 of the Indictment allege that from April 2018 until April 2019, Navarro unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to a person in return for sexual favors, either physically or by electronic communications, outside the usual course of professional practice and not for a legitimate medical purpose. Navarro is also charged in Count 29 with health care fraud for causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed controlled substances. This case was investigated by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit which includes: FBI, HHS-OIG, DEA, IRS-CI, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, USPS, Veterans Affairs-OIG, FDA-CI, OPM-OIG, and the Pennsylvania Bureau of Licensing. Assistant U.S. Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting the case.
Among those charged in the District of Columbia are the following:
Hope Falowo, a personal care aide, was charged by information with one count of healthcare fraud for her role in a $400,000 fraud scheme where she would bill Medicaid in the District of Columbia for services she never provided. The case is being prosecuted by Counsel to the Chief of the Health Care Fruad Unit Amy Markopoulos.
Nkiru Uduji, a personal care aide, pleaded guilty to one count of health care fraud conspiracy charged in an August 2019 Information. The charges stem from Uduji’s role in a $600,000 fraud scheme in which she billed for more than 24 hours in a day, for services that were not rendered, and for services that were procured by kickbacks. The case is being prosecuted by Counsel to the Chief of the Health Care Fruad Unit Amy Markopoulos.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Federal Health Care Fraud Takedown in Northeastern U.S. Results in 54 Defendants Charged and ConvictedRead the Press Release
NEWARK, N.J. – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in losses and the distribution of over 3.25 million pills of opioids in “pill mill” clinics and doctors’ offices. The takedown includes new charges and convictions by guilty plea against 54 defendants for their roles in submitting nearly $800 million in fraudulent claims made to federal payers, including 15 doctors or medical professionals, and 24 defendants are charged for their roles in diverting opioids.
The cases prosecuted by this Office in connection with the takedown reflect all of the different facets of our health care and opioids work. Doctors, marketing executives, pharmacists, and the owners and operators of a genetic testing laboratory have been charged with, or have plead guilty to a range of criminal conduct, including: the criminal prescription of highly-addictive opioid pills to patients with no medical need, the paying of kickbacks and other fraud related to unnecessary genetic testing, fraud and abuse in the compounded medicines business, and other crimes that victimize federal health care programs like Medicare and Medicaid, as well as patients across New Jersey who need medical care.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigation, DOD-DCIS, FDA-OIG, the Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the operation.
The charges involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional MFSF, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Rooting out and prosecuting abuses within our health care system is a top priority for my office,” Craig Carpenito, U.S. Attorney for the District of New Jersey, said. “In New Jersey, these illegal activities run the gamut from over-prescribing dangerous opioids, to running pharmacies improperly, to mis-prescribing unnecessary medications, to tricking patients – often the elderly or vulnerable – into seeking expensive genetic testing or compounded prescriptions they don’t need. Today’s message should be clear: We are dedicated to combatting all forms of illegal activity in the health care arena. If you put patients’ health at risk with criminal intent, you will be dealt with as a criminal.”
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law,” Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office said. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”
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Among those charged in the District of New Jersey are the following:
Two Doctors Mis-Prescribing Opioids
• Evangelos Megariotis, 66, of Clifton, New Jersey, an orthopedic surgeon who owns and operates Clifton Orthopedic Associates in Clifton, New Jersey. Megariotis was charged by complaint with prescribed large amounts of controlled substances, such as oxycodone, Percocet, Xanax, and promethazine with codeine outside the usual course of medical practice and without a legitimate purpose. He wrote these allegedly illegal prescriptions to patients he knew were abusing opioids. In two years, Megariotis allegedly prescribed more than 1.4 million tablets of oxycodone and over 450 gallons of promethazine with codeine cough syrup to his patients. The Government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division.
• Joseph Santiamo, 64, of Staten Island, New York, a doctor who specialized in geriatric care, was charged by complaint with prescribing powerful opioids to patients he knew were addicted. According to the complaint, Santiamo also solicited sexual favors from some patients in return for writing them an opioid prescription. In a recorded statement to agents, Santiamo admitted he knew his prescriptions were being abused, but kept writing them anyway. Just twenty of Santiamo’s patients allegedly received more than 100,000 oxycodone pills for no legitimate medical purpose. The Government is represented by Assistant U.S. Attorney Brian Urbano of the Criminal Division.
Ex-Sales Rep. Committing Compounding Fraud:
• Kent Courtheyn, of Kent, Ohio, a former medical device sales representative, indicted for his alleged role in marketing compounded (i.e. customized) medicines to patients who didn’t need them. Courtheyn allegedly steered prescriptions for these expensive compounded medications to his conspirators, and took a cut for his role. The indictment alleges that the scheme caused at least $10 million in losses to participating health care plans, at least $3.5 million of which was paid by TRICARE, the federal program that pays for health care services for veterans. The Government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division.
PrimeAid Pharmacy Indictment:• Yana Shtindler, 44, and Samuel “Sam” Khaimov, 47, both of Glen Head, New York; Alex Fleyshmakher, 33, of Morganville, New Jersey; and Ruben Sevumyants, 36, of Marlboro, New Jersey, charged by indictment. From 2009 through August 2017, Prime Aid Pharmacies (located in Union City, New Jersey and Bronx, New York) engaged in a slew of fraudulent activities including: (a) paying illegal bribes and kickbacks to doctors and doctors’ employees in exchange for prescription referrals to Prime Aid; (b) billing health insurance providers for medications that were never actually provided to patients; and (c) opening new pharmacies and concealing the true ownership of those pharmacies to obtain lucrative contracts they otherwise would not have obtained. The scheme of billing for medications that were never dispensed to patients was so egregious that Prime Aid received reimbursement payments of over $65 million for prescription medications that it never even ordered from distributors or had in stock. In total, Prime Aid’s multiple schemes defrauded Medicare, Medicaid, and private insurers out of at least $99 million. The Government is represented by Assistant U.S. Attorneys Joshua L. Haber and Jason Gould of the Criminal Division.
Empire Pharmacy Criminal Complaint:
• Eduard “Eddy” Shtindler, 36, of Paramus, New Jersey, charged by complaint with conspiracy to commit health care fraud and conspiracy to pay illegal kickbacks to a doctor. From 2012 through at least 2017, Shtindler owned and operated Empire Pharmacy in West New York, New Jersey. For most of that time, Shtindler allegedly paid bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. On occasion, Shtindler secreted cash bribes in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy. In addition, starting in 2015, Empire – at Shtindler’s direction – perpetrated a fraudulent scheme to induce doctors to send expensive specialty medication prescriptions to Empire. Specialty medications often required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. To receive prior authorization approval more quickly and successfully than any other pharmacies, Empire employees, including two pharmacists, repeatedly falsified prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In total, Empire defrauded Medicare and Medicaid out of at least $2 million. The Government is represented by Assistant U.S. Attorney Joshua L. Haber of the Criminal Division.
Ark Labs Genetic Testing Indictment:
• Dr. Matthew S. Ellis, 53, of Gainesville, Florida; Edward B. Kostishion, 59, of Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania; and Jeffrey Tamulski, 46, of Tampa, Florida. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health, Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey, and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 million in bribes. The Government is represented by Assistant U.S. Attorney Bernard Cooney of the Criminal Division.
Doctor Pleads Guilty in Compounding Case
• Bernard Ogon M.D., 46, of Burlington, New Jersey, pleaded guilty on September 25, 2019 to one count of health care fraud conspiracy for his participation in a vast compounded medication telemedicine conspiracy. As part of the conspiracy, Ogon admittedly signed prescriptions for compounded medications (that is, medications with ingredients of a drug tailored to the needs of a particular patient) without having established a doctor-patient relationship, spoken to the patient or conducting any medical evaluation. Ogon often signed preprinted prescription forms—with patient information and medication already filled out—where all that was required was his signature. Then, instead of providing the prescription to the patient, Ogon would return the prescriptions to specific compounding pharmacies involved in the conspiracy. Ogon was paid $20 to $30 for each prescription he signed, and his participation in the conspiracy caused losses to health care benefit programs of over $24 million, including losses to government health care programs of over $7 million. The Government is represented by Assistant U.S. Attorney Jason Gould of the Criminal Division.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
U.S. Attorney Carpenito also thanked special investigators from his office for their work on these cases.
A complaint, information or indictment is merely an accusation, and all defendants are presumed innocent until and until proven guilty.
Federal Government Employee at Camp Mabry in Austin Charged with Theft of over $1 Million in Military EquipmentRead the Press Release
In Austin today, a federal government employee at Camp Mabry surrendered himself to federal authorities on charges that he allegedly stole and unlawfully sold more than $1 million worth of items from the military installation in Austin, announced U.S. Attorney John F. Bash.
A federal criminal complaint filed today charges 35–year-old Joseph Mora with one count of theft of government property and one count of conspiracy to commit fraud against the U.S. The complaint states that Mora has served as a Program Analyst at the U.S. Property and Fiscal Office warehouse since 2013. The complaint alleges that Mora conspired to remove large quantities of sensitive military grade equipment, including rifle scopes, infrared laser aiming devices and thermal night vision goggles, from the facility without authorization. He later sold many of the stolen items on eBay and by other means.
On Tuesday, federal agents executed a search warrant at the defendant’s residence and recovered dozens of items believed to be stolen from Camp Mabry, to include pelican cases containing aiming lights, a pallet of night vision goggles and tripods.
Upon conviction, Mora faces up to ten years in federal prison on the theft charge and up to 20 years in federal prison on the fraud charge. He was released on a $10,000 bond following his initial appearance today in U.S. Magistrate Court in Austin.
Agents with the Defense Criminal Investigative Service (DCIS), Homeland Security Investigations (HSI), U.S. Army Criminal Investigative Command (Army CIC), U.S. Postal Inspection Service (USPIS) and the Texas Rangers are investigating this case. Assistant U.S. Attorneys Michael Galdo and Karthik Srinivasan are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
Federal Court Terminates Agreement After the City of Providence Transforms Services for Students with Disabilities at Providence Public High SchoolRead the Press Release
The Justice Department announced today that the U.S. District Court for the District of Rhode Island terminated the Interim Settlement Agreement (ISA), with the City of Providence (City), in U.S. v. Rhode Island and City of Providence. The independent Court Monitor has found that the City has substantially complied with the ISA’s requirements. Because of the City’s commitment to complying with the ISA, the City now provides transitional services and supports to students with intellectual and developmental disabilities (IDD) at Mount Pleasant High School, including community experiences, to enable those students to prepare for and obtain competitive jobs in businesses in the community.
“The Interim Settlement Agreement changed lives,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “Mount Pleasant students are now able to experience employment and other activities in integrated settings, thereby enabling them to prepare for and obtain competitive jobs in the community. We commend the City for its efforts in achieving compliance with the ISA.”
The ISA was the first in the nation to address the rights of individuals with disabilities to receive integrated employment services in the broader community instead of in segregated workshops exclusively for individuals with disabilities. Prior to the ISA, students with IDD at Mount Pleasant spent school days bagging, labeling, and collating jewelry and similar tasks in an in-school sheltered workshop, apart from their classmates without disabilities. Upon exiting school, most of these students did similar work for sub-minimum wage at a sheltered workshop near the school, despite their ability and willingness to work in integrated settings. Now, the students are integrated with their classmates without disabilities and receive services to prepare them for integrated work in careers that match their interests and abilities, in accordance with the ADA.
The papers related to the ISA, including the findings letter, agreement, Court Monitor’s reports, and papers related to the termination as to the City are available here. The ISA still remains in effect as to the State of Rhode Island. The papers related to the State, including the agreements signed by the State and Court Monitor’s reports, are available here. For more information about the ADA, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Fayetteville Man Sentenced for Coercion and Enticement of a Minor to Engage in Sexual ActivityRead 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 FRANKIE LEE JONES, 34, of Fayetteville, North Carolina to 180 months imprisonment, followed by 15 years of supervised release.
JONES was named in an Indictment filed on July 25, 2018 charging him with multiple counts of coercion and enticement of a minor to produce visual depictions of sexually explicit conduct and to engage in sexual activity. On July 29, 2019, JONES pled guilty to one count of coercing and enticing a minor to engage in sexual activity.
Beginning in late 2016 JONES began communicating with a 13 year child through Kik, a mobile messaging and social media application. The two began an online relationship that extended from internet messaging to texting and speaking on the phone. Law enforcement recovered nearly 7,000 text messages between the victim and JONES. The messages between the two revealed a plan to move in together, get married and continue their relationship. The messages were, at times, sexually explicit in nature. JONES indicated that he knew the child was 13 but said he loved the child and wanted to marry the child. JONES frequently asked for sexually explicit photos and videos of the child.
In March 2017, JONES picked up the child from the Raleigh area and took the child to a hotel in Fayetteville. During the weekend JONES engaged in sexual activity with the child multiple times and took sexually explicit photographs of the child.
After the child disclosed the relationship and sexual activity to family members, law enforcement spoke to JONES. He admitted to sexual activity with the child but denied knowing the child’s true age despite the text messages that showed the contrary.
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 Homeland Security and the Cumberland County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Erin Blondel, Charity Wilson and Jake D. Pugh.
Erie Man Sentenced to Prison in Project Safe Neighborhoods ProsecutionRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 14 months in jail and 18 months supervised release on his conviction of violating federal firearms laws and making a false statement in an application for a United States passport, United States Attorney Scott W. Brady announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Amaad Maliek Ali, 48.
According to information presented to the court, on April 7, 2018, Ali falsified his application for the purchase of a firearm and lied about his prior felony convictions. A National Instant Criminal Background Check was made and Ali was rejected for the firearm purchase because of his prior criminal record.
In addition, on April 18, 2017, Ali made a false statement on a United States passport application by stating that his Social Security number was 000-00-0000.
Project Safe Neighborhood (PSN) is the centerpiece of the Department of Justice’s violent crime reductions 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 prevent and reentry programs for lasting reductions in crime.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of State’s Diplomatic Security Service, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Ali.
Drug Dealer Who Sold Heroin That Killed 18-Year-Old Sentenced to 28+ YearsRead the Press Release
An Arlington drug dealer who sold the heroin that killed an 18-year-old Southlake girl was sentenced today to more than 28 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Michael Dasean Robinson, 33, pleaded guilty on April 12 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 340 months’ imprisonment by Senior U.S. District Judge John H. McBryde Thursday.
“This woman’s untimely death was tragic – and preventable,” said U.S. Attorney Nealy Cox. “Even as we mourn the many lives lost in the opioid epidemic, we are determined to hold those who peddle these deadly drugs accountable.”
“The sentence sends a message to drug dealers,” said Special Agent in Charge of the Drug Enforcement Administration’s Dallas Division Clyde E. Shelley, Jr. “Drug dealers will be will be held accountable for their customer’s overdose deaths”.
Evidence showed that Mr. Robinson – who went by the street name “Tight” – sold $40 worth of heroin to Reed Bartosh on Nov. 30, 2017.
Mr. Bartosh told police officers that he and his girlfriend, 18-year-old Brianna Flood, used the heroin together that same night and then fell asleep. The next morning, he told officers, he awoke to find her unresponsive.
An autopsy later revealed Ms. Flood had died of a heroin overdose. At today’s sentencing hearing, Judge McBryde found that the heroin sold by Mr. Robinson had caused her death – which ultimately led to Mr. Bartosh’s subsequent suicide.
According to a criminal complaint filed in January 2019, after the girl’s tragic death, undercover officers posing as Mr. Robinson’s clients bought heroin and cocaine from him and an associate:
“Can you do 140 b and 50 g?,” an undercover officer texted Mr. Robinson, at a number provided by Mr. Bartosh, referring to heroin and cocaine.
“Yeah,” Mr. Robinson responded. “Hit me up.”
At Mr. Robinson’s direction, his associate delivered plastic baggies containing heroin (commonly referred to as “boy,” or “b”) and cocaine (commonly referred to as “girl,” or “g”) to an undercover officer parked in the driveway of a Dallas residence in exchange for cash.
During a traffic stop a few days later, law enforcement found cocaine, heroin, and marijuana in Mr. Robinson’s vehicle. Multiple sources of information confirmed to law enforcement that Mr. Robinson was their regular drug dealer. A forensic analysis of his phone suggested he had more than 200 customers.
The Drug Enforcement Administration, the Fort Worth Police Department’s Narcotics Division, the Tarrant County Medical Examiner’s Office, and the Southlake Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Dominican National Sentenced for Social Security Fraud and Identity TheftRead the Press Release
Boston – A Dominican national was sentenced yesterday in federal court in Boston for Social Security fraud and aggravated identity theft.
Frank Alejandro Brea Sabala, 37, a Dominican national who resided in Methuen, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years and one day in prison and three years of supervised release. In June 2019, Brea Sabala pleaded guilty to one count of misuse of a Social Security number and one count of aggravated identity theft.
On the morning of Aug. 2, 2017, Brea Sabala submitted a handwritten application for a Massachusetts Motorcycle Permit at the Lawrence Registry of Motor Vehicles. On the application, Brea Sabala represented the name, date of birth and Social Security number of an individual from Puerto Rico as his own, and checked off that he was a United States citizen. Brea Sabala had previously obtained a Massachusetts license in the victim’s name.
On Oct. 3, 2018, a search of Brea Sabala’s residence resulted in the recovery of expired Massachusetts licenses that were in the victim’s name and date of birth but contained Brea Sabala’s photograph, as well as a Social Security card and birth certificate in the name of the victim.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigation in Boston; and Methuen Police Chief Joseph E. Solomon. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
District Court Issues Order Directing OneCoin-Related Parties to Show Cause Regarding Any Claimed Attorney-Client PrivilegeRead the Press Release
On March 7, 2019, a five-count Indictment, S4 17 Cr. 630 (ER), was unsealed charging Ruja Ignatova with wire fraud, securities fraud, and money laundering offenses in connection with an alleged international pyramid scheme that involved the marketing of a purported cryptocurrency called “OneCoin.” On May 28, 2019, co-defendant Konstantin Ignatov entered a not guilty plea to a one-count Information, S7 17 Cr. 630 (ER), charging him with conspiracy to commit wire fraud in connection with the OneCoin scheme. Co-defendant Mark S. Scott has been charged in a one-count Indictment, S6 17 Cr. 630 (ER), alleging that he conspired to launder proceeds of the OneCoin scheme; Scott’s case is presently scheduled for trial on November 4, 2019.
Yesterday, the District Court entered an Order in the case, directing a series of entities and individuals – namely, OneCoin Ltd., OnePayments Ltd., OneNetwork Services Ltd., OneAcademy, OneLife, RavenR, Ruja Ignatova, Frank Ricketts, Manon Hubenthal, Irina Dilkinska, International Marketing Services GmBH, International Marketing Services Pte, International Marketing Strategies Ltd., and B&N Consult EOOD (collectively, the “Affected Parties”) – to Show Cause why the Court should not enter an Order finding that any privilege the Affected Parties may have in communications with counsel falls within the crime-fraud exception to the attorney-client privilege, or has otherwise been waived for failure to assert or defend such privilege. The Order to Show Cause requires that the Affected Parties respond within 10 days of the entry of the Order, i.e., no later than October 7, 2019, due to intervening weekend days.
The District Court also unsealed a previously sealed Order dated July 23, 2019, regarding the application of the crime-fraud exception to certain materials in the case. Copies of yesterday’s Order to Show Cause and the July 23, 2019, Order are appended to this press release.
Department of Justice Announces Arrests in Pensacola-Based Dog Fighting Ring InvestigationRead the Press Release
Five individuals were arrested yesterday on a 44-count federal indictment charging violations of the dogfighting prohibitions of the federal Animal Welfare Act, and conspiracy to commit those violations.
Shane Patrick Sprague, 35, of Pensacola, Florida, Derek Jedidiah Golson, aka Derek Jedidiah Murray, 38, of Pensacola, Florida, Haley Cook Murph, 24, of Milton, Florida, David Lee Moser, 36, of Waynesboro, Tennessee, and James “Tommy” Peek, 67, of Milton, Florida were indicted a the case involving C Wood Kennels in Pensacola, Florida.
The indictment alleges that defendants Sprague and Golson operated C Wood Kennels, a dogfighting operation that arranged dogfights, allowed fighting dogs to attack “bait” animals, and trafficked in fighting dogs with defendant Moser and others outside of Florida, including through an underground dogfighting website. The indictment further alleges that defendant Peek acted as a source to supply fighting dogs to C Wood Kennels.
According to the indictment, defendant Murph’s role was that of a makeshift “veterinarian” for C Wood Kennels. Although Murph at no time possessed a veterinary license, she offered to and did perform veterinary and surgical procedures on fighting dogs so the kennel could avoid the scrutiny of a licensed veterinarian. The defendant also possessed veterinary equipment used to treat injured fighting dogs, including skin staplers, sutures, intravenous bags and lines, scalpels, and injectable animal steroids.
“As this case demonstrates, we are aggressively prosecuting dogfighters and those who support their inhumane criminal enterprises – including unscrupulous veterinarians or veterinary poseurs,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “We thank our federal and local law enforcement partners who made this operation possible.”
“Dogfighting is a blight on humanity, one that has no place in the Northern District of Florida or anywhere else,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida. “We will continue to work with federal and local law enforcement agencies to root out this barbaric blood sport, in Florida and beyond.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “Animal fighting is an investigative priority for USDA-OIG, and together with the Department of Justice we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
The federal Animal Welfare Act makes it a felony to sponsor or exhibit an animal in an animal fighting venture and to possess, train, sell, purchase, transport, deliver or receive an animal for purposes of having the animal participate in an animal fighting venture.
This matter continues to be investigated by the USDA-OIG. Department of Justice Trial Attorney Ethan Eddy and Assistant U.S. Attorney Ryan Love are prosecuting the case.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Announces Arrests in Pensacola-Based Dogfighting Ring InvestigationRead the Press Release
PENSACOLA, FLORIDA – Five individuals were arrested yesterday on a 44-count federal indictment charging violations of the dogfighting prohibitions of the federal Animal Welfare Act, and conspiracy to commit those violations. The arrests were announced by U.S. Attorney Lawrence Keefe of the Northern District of Florida and Assistant Attorney General Jeffrey Bossert Clark for the
U.S. Department of Justice Environment and Natural Resources Division.Shane Patrick Sprague, 35, of Pensacola, Florida, Derek Jedidiah Golson, aka Derek Jedidiah Murray, 38, of Pensacola, Florida, Haley Cook Murph, 24, of Milton, Florida, David Lee Moser, 36, of
Waynesboro, Tennessee, and James “Tommy” Peek, 67, of Milton, Florida were indicted in the case involving C Wood Kennels.The indictment alleges that defendants Sprague and Golson operated C Wood Kennels, a dogfighting operation that arranged dogfights, allowed fighting dogs to attack “bait” animals, and trafficked in fighting dogs with defendant Moser and others outside of Florida, including through an underground dogfighting website. The indictment further alleges that defendant Peek acted as a source to supply fighting dogs to C Wood Kennels.
According to the indictment, defendant Murph’s role was that of a makeshift “veterinarian” for C
Wood Kennels. Although Murph at no time possessed a veterinary license, she offered to and did perform veterinary and surgical procedures on fighting dogs so the kennel could avoid the scrutiny of a licensed veterinarian. The defendant also possessed veterinary equipment used to treat injured fighting dogs, including skin staplers, sutures, intravenous bags and lines, scalpels, and injectable animal steroids.“Dogfighting is a blight on humanity, one that has no place in the Northern District of Florida or anywhere else,” said U.S. Attorney Keefe. “We will continue to work with federal and local law enforcement agencies to root out this barbaric blood sport, in Florida and beyond.”
“As this case demonstrates, we are aggressively prosecuting dogfighters and those who support their inhumane criminal enterprises – including unscrupulous veterinarians or veterinary poseurs,” said
Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and
Natural Resources Division. “We thank our federal and local law enforcement partners who made this operation possible.”“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of
Agriculture-Office of Inspector General. “Animal fighting is an investigative priority for
USDA-OIG, and together with the Department of Justice, we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”The federal Animal Welfare Act makes it a felony to sponsor or exhibit an animal in an animal fighting venture and to possess, train, sell, purchase, transport, deliver, or receive an animal for purposes of having the animal participate in an animal fighting venture.
This matter continues to be investigated by the U.S. Department of Agriculture, Office of the
Inspector General. Assistant United States Attorney Ryan Love and Department of Justice Trial
Attorney Ethan Eddy are prosecuting the case. If convicted, each defendant faces up to five years in prison and a $250,000 fine per count.An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.Defendant sentenced for robbing eight businesses including seven Dollar Stores during a nine-day crime spreeRead the Press Release
ATLANTA - Wayne Patterson, who committed a string of eight armed robberies in the metro-Atlanta area, has been sentenced to federal prison.
“Patterson’s decision to rob these businesses at gunpoint placed employees’ and customers’ lives in danger,” said U.S. Attorney Byung J. “BJay” Pak. “Cooperation among federal and local law enforcement officers ended Patterson’s robbery spree and ensured the lengthy prison sentence he received.”
“Patterson terrorized employees and customers at seven different businesses he robbed in a nine day period in 2018 across three counties,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to our partnerships with six different local law enforcement agencies we were able to stop him before someone got hurt or killed. Hopefully the victims of those robberies can take some solace with this sentencing.”
“The Covington Police appreciates the diligence of the employee to stay calm, cooperate with the robber, get an accurate tag number, and give details of the crimes to the responding officers. This great effort allowed CPD to locate and arrest the suspect thus ending his criminal activity,” said Stacey L. Cotton, Chief of the Covington Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: Patterson robbed seven Family Dollar and Dollar General Stores in the metro-Atlanta area over nine days in July 2018. In each case, Patterson browsed in the store, selected an item to supposedly purchase, and then approached the cash register. Once at the register, Patterson brandished a handgun and demanded money, and then fled the store with whatever money the cashier gave him.
Approximately three weeks after committing the Family Dollar and Dollar General Store robberies, Patterson robbed a clothing store in Covington, Georgia, using the same tactic. On this occasion, however, an employee recorded the license plate of Patterson’s getaway car and provided that information to Covington Police who arrested Patterson shortly thereafter.
Wayne Patterson, 39, of Covington, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 20 years in prison to be followed by 5 years of supervised release. Patterson was convicted on June 19, 2019 after he pleaded guilty to eight counts of Hobbs Act robbery and two counts of brandishing a firearm during a crime of violence.
Assistant U.S. Attorney Bret R. Hobson prosecuted the case.
The Federal Bureau of Investigation, the Covington Police Department, the Clayton County Police Department, the Riverdale Police Department, the Cobb County Police Department, the Atlanta Police Department, and the Conyers Police Department investigated the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Crete Pet Food Industry Supplier Fined $100,000 for Clean Water Act ViolationRead the Press Release
United States Attorney Joe Kelly announced that United States District Court Judge Robert F. Rossiter, Jr. sentenced Crete Core Ingredients L.L.C. on September 26, 2019, to pay a fine in the amount of $100,000 following the company’s misdemeanor conviction for violating the federal Clean Water Act. Crete Core Ingredients., a Crete, Nebraska-based company, specializes in processing animal materials and byproducts for the pet food industry.
Investigation by the Environmental Protection Agency Criminal Investigation Division determined that on June 19, 2013, Crete Core Ingredients was issued a wastewater discharge permit by the Nebraska Department of Environmental Quality. The permit authorized the discharge of wastewater from the Crete Core Ingredients facility to the City of Crete’s publicly owned water treatment facility. The permit set forth limits on the amount of certain pollutants that were allowed to enter the water treatment facility. The permit further provided that in the event of a permit violation, Crete Core Ingredients was subject to penalties and sanctions as provided by the federal Clean Water Act.
On or about August 5, 2014, Crete Core Ingredients exceeded its wastewater discharge permit, thus violating the federal Clean Water Act. On August 5, 2014, wastewater flow data from Crete Core Ingredients to the City of Crete’s publicly owned water treatment facility showed a discharge of certain pollutants over twice the daily maximum that was permitted under the permit issued.
This case was investigated by the Environmental Protection Agency Criminal Investigation Division.
Cranston Man Sentenced to More Than 12 Years for Enticing Minors OnlineRead the Press Release
PROVIDENCE – Paul J. Stabile, 39, of Cranston, who used an online persona of “Cindi Mennillo,” a 16-year-old girl from Newport, to persuade numerous young boys between the ages of 13-15 to engage in explicit sexual activity in live stream videos over Facebook Messenger and Skype, was sentenced today to 151 months in federal prison.
The investigation that led to identifying Stabile as a person directing young teenage boys to participate in sexually explicit live-stream videos began in December 2017, when the mother of a 14 year-old boy in Nevada reported to the FBI that her son was the victim of an online enticement. The investigation uncovered chats between Stabile, pretending to be 16 year-old “Cindi Mennillo,” and the minor victim. During some of the conversations, Stabile directed the young teenager to send back live video streams of himself participating in sexually explicit acts. To deceive the minor victim, Stabile falsely claimed technical difficulties were preventing “Cindi” from reciprocating with live video. Instead Stabile sent the young teenager images, both pornographic and non-pornographic, of an athletic young female purported to be “Cindi.”
On November 20, 2018, a federal court-authorized search of Stabile’s residence resulted in the seizure of several computers and other digital media devices and the arrest of Stabile. Forensic audits of the devices resulted in the discovery of hundreds of images and videos of child pornography, including videos of dozens of young teenage boys performing a sex act in a similar manner to the Nevada-based minor victim. Also found were the images sent by “Cindi” to the minor victim in Nevada.
Stabile pleaded guilty on June 12, 2019, to inducement of a minor to engage in illicit sexual activity and possession of child pornography. At sentencing today, U.S. District Court Chief Judge William E. Smith sentenced Stabile to 151 months in federal prison to be followed by lifetime supervised release.
Stabile’s sentence is announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the FBI, with assistance from members of the Rhode Island State Police Internet Crimes Against Children Task Force, Warwick and Cranston Police, and the Washoe County, Nevada Sherriff’s Department.
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Columbus man sentenced to nearly 10 years in prison for robbing banks in Cleveland, Lakewood and EastlakeRead the Press Release
A Columbus man was sentenced to nearly 10 years in prison for robbing banks in Cleveland, Lakewood and Eastlake in February.
Andre Harris, 49, previously pleaded guilty to three counts of bank robbery. He was sentenced to 118 months in federal prison.
Harris robbed the Key Bank at 3601 Chester Ave. in Cleveland on February 8, the Fifth Third at 14800 Madison Ave. in Lakewood on February 11 and Chase Bank at 35400 Vine Street in Eastlake on February 15, according to court documents.
The FBI, Cleveland Division of Police, Lakewood Police Department and Eastlake Police Department investigated this case. Assistant U.S. Attorneys Margaret Kane and Ranya Elzein prosecuted the case.