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26 September 2019
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.
* * *
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.
Colombians Sentenced for Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that JHON ALBEIRO PINEDA JIMENEZ, age 37, and PEDRO ANTONIO JIMENEZ, age 65, both Colombians, were sentenced on September 25, 2019 after previously pleading guilty to conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride while upon the high seas on board a vessel subject to the jurisdiction of the United States, under Title 46, United States Code, Sections 70503(a)(1) and 70506(a) and (b), and Title 21, United States Code, Section 960(b)(1)(B)(ii).
According to court documents, PINEDA JIMENEZ and JIMENEZ were arrested by the U.S. Coast Guard while the two were aboard a small fishing vessel southwest of the Panama/Costa Rica border. Hidden aboard the vessel was over 113 kilograms of powder cocaine.
United States District Judge Martin L.C. Feldman sentenced PINEDA JIMENEZ, the captain of the vessel, to 78 months in prison followed by two years of supervised release. Judge Feldman sentenced JIMENEZ to 60 months in prison followed by two years of supervised release.
U.S. Attorney Strasser praised the work of the United States Coast Guard, the United States Department of Homeland Security, and United States Customs and Border Protection in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney Brandon S. Long.
Chenango County Man Sentenced to 78 Months on Child Pornography ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Brock Likens, age 34, of Greene, New York, was sentenced today to 78 months in prison for distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea, Likens admitted that he knowingly received and distributed child pornography over the internet using peer-to-peer file sharing software. An undercover law enforcement officer downloaded 87 child pornography video files from Likens’ computer that he had made available to share with others. A subsequent search of Likens’ house revealed that he possessed, on electronic devices, 31 video files and 24 image files that depicted child pornography. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Likens is released from prison, and ordered him to pay $6,000 in restitution. As a result of his conviction, Likens will be required to register as a sex offender upon his release from prison.
This case was investigated by the New York State Police Computer Crimes Unit, Colonie Police Department, and the FBI. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Cedar Rapids Man Who Carjacked a Teenager and Robbed a Store While Carrying a Gun Sentenced to over 18 Years in PrisonRead the Press Release
A Cedar Rapids man who carjacked an 18-year old woman at gunpoint and carried a loaded handgun during and in relation to the robbery of a Cedar Rapids cell phone store was sentenced in United States District Court in Cedar Rapids on September 25, 2019, to 222 months’ in federal prison.
Cedric Antonio Wright (a/k/a “Tony” or “Mitch”), age 22, from Cedar Rapids, Iowa, was convicted by a federal jury in November 2018 of four charges: carjacking; carrying and brandishing a firearm during and in relation to the carjacking; unlawful possession of a firearm as a felon and unlawful drug user; and carrying a firearm during and in relation to the October 23, 2017 robbery of a phone store in southwest Cedar Rapids. Wright had earlier pleaded guilty in the same case, on October 29, 2018, to one count of robbery and conspiracy to rob the phone store.
The evidence at trial showed that on October 22, 2017, Wright carjacked an 18 year-old Kirkwood Community College student who was returning to her apartment near Kirkwood after spending an evening with her parents. As the student parked her car outside her apartment, Wright approached and pointed a handgun at her head while demanding she give Wright her car keys and cell phone. The student later identified a photo of Wright that appeared online and identified Wright from a group of photos at the Cedar Rapids Police Department.
Trial evidence showed that on October 23, 2017, Derrick Ford agreed to give Wright and Gage Rupp a ride in his minivan from southeast Cedar Rapids to an apartment complex on the west side of Cedar Rapids, where Wright claimed the group could transfer into the stolen car. After transferring into the stolen vehicle, the group drove to a parking lot adjacent to the strip mall where the phone store is located. Wright and Rupp then entered the store and demanded the clerk let them into the room where the store inventory was located. The clerk complied and testified at trial he did so because the robbers entered the store aggressively and “I felt in fear of my life.”
Wright and Rupp returned to the waiting car with more than $1,000 in cash and about $40,000 in cell phones and other electronic devices they had stolen from the store. One of the stolen devices was a tracker that alerted police of the robbery. Police responded to the tracking device within a few minutes and were able to quickly apprehend Wright, Rupp, and Ford.
Information at the sentencing hearing showed that Wright had an extensive criminal history, even at his relatively young age, including a prior aggravated robbery conviction and numerous other offenses. The government also presented evidence that in the months preceding the robbery, Wright had been engaged in a financial fraud scheme, whereby Wright agreed to pay bills for others, in exchange for them paying him half of the cost of the bill being paid. Wright then apparently paid the bills using a fraudulently obtained credit card.
Chief United States District Court Judge Leonard T. Strand noted that Wright’s crimes in this case were extremely violent and had been committed on back-to-back evenings, something that “stood out” from others. Further, the nature and circumstance of the offenses were “frankly, disgusting” according to the judge.
Wright was ordered to serve 222 months’ in prison, or 18 and a half years, to be followed by five years of supervision upon release from imprisonment. Wright was also ordered to pay $600 in special assessments. Wright remains in custody of the United States Marshal pending designation to a federal prison.
Rupp was sentenced on August 22, 2019, to serve twelve years’ imprisonment in connection with the same case. Ford was sentenced on January 18, 2019, to serve 20 months’ imprisonment following his plea of guilty to one count of aiding and abetting the phone store robbery.
The case was prosecuted by Assistant United States Attorneys Richard Murphy and Emily Nydle and was investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl .
The case file number is 18-CR-0015.
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Cedar Rapids Man Sentenced to 32 Years in Federal Prison for Sexually Exploiting a ChildRead the Press Release
A man who sexually exploited a 14-year-old girl, enticed her to engage in prostitution, and received child pornography was sentenced today to 32 years in federal prison.
Kevin Herring, age 30, of Cedar Rapids, Iowa, received the sentence after a September 28, 2018, guilty plea to one count of sexual exploitation of a child and one count of receipt of child pornography. Evidence at sentencing showed that, in January 2018, Herring was at a halfway house in Cedar Rapids following his federal prison sentence for being a felon and domestic abuser in possession of a firearm. While on a pass from the halfway house, he met the victim, a runaway 14‑year-old girl. Herring persuaded, induced, and enticed the victim to engage in prostitution and to send him sexually explicit images of herself. Herring asked the victim if she loved him and told her she could live with him after he left the halfway house.
Herring was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Herring was sentenced to 384 months’ imprisonment in this case and an additional 24 months’ imprisonment for a supervised release violation in a previous case, to be served consecutively. A special assessment of $200 was imposed, Herring was ordered to pay $111,654 in victim restitution, and he also must serve a seven-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
“Kevin Herring preyed upon the vulnerability of a 14-year-old runaway girl,” said United States Attorney Peter Deegan. “His repulsive conduct earned him every minute of the sentence he received. Our office has and will continue to hold accountable predators like Herring and prosecute them the full extent of the law.”
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the United States Marshals Service, the Waterloo Police Department, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 18-58.
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California Man Sentenced to 14 Months in Federal Prison for His Role in Staged Accident SchemeRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Alexander Arceo, age 32, of South El Monte, California, was sentenced today after having pleaded guilty on June 17, 2019, to one count of conspiracy to commit healthcare fraud, one count of conspiracy to commit mail and wire fraud, and one count of mail fraud. Chief United States District Judge Thomas O. Rice sentenced Arceo to a 14-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Chief Judge Rice also ordered Arceo to pay restitution in the amount of $40,000 and forfeiture of $40,000.
According to information disclosed during court proceedings, between February 2016, and September 2016, Arceo was involved in a staged automobile accident in Rescue, California, and a staged stair fall accident in Las Vegas, Nevada, that defrauded two insurance companies out of $412,015. In the phony automobile accident, Arceo falsely claimed that he suffered serious bodily injuries, including loss of consciousness, as a result of the accident and obtained medical treatment over an eighty-four day period after the accident. In the phony stair fall accident, a co-conspirator used Arceo’s name when he falsely claimed to an insurance company that he suffered head and other injuries and needed medical treatment over a five-month period. When the defrauded insurance company issued settlement checks for bodily injury in Arceo’s name, he endorsed the checks thereby enabling co-conspirators to get the fraudulent proceeds.
United States Attorney Hyslop said, “Staged accident automobile insurance fraud is not a victimless crime. It affects every driver, as fraud causes insurance rates to increase. It also distracts police and medical personnel from responding to legitimate distress calls. I commend the FBI, IRS Criminal Investigation and U.S. Marshals Service for their outstanding work investigating this case.”
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, U.S. Marshals Service, U.S. Attorney’s Office for the Eastern District of Washington Criminal Healthcare Fraud Investigator, with assistance from the National Insurance Crime Bureau. This case was prosecuted by George J.C. Jacobs, III, and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Brooklyn Center Man Sentenced to 15 Years in Prison for Distributing Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JUSTIN THOMAS CHAPMAN, 38, to 180 months in prison for distributing child pornography. CHAPMAN, who pleaded guilty on May 8, 2019, was sentenced today before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to his guilty plea and documents filed in court, from March 2017 through August 10, 2018, CHAPMAN moderated and participated in online chatrooms where participants distributed, traded, and received child pornography. CHAPMAN and other participants also used the chatrooms to express their preferences in child pornography as well as discuss means to avoid detection by law enforcement. As a chatroom moderator, CHAPMAN communicated and enforced the “rules” of the chatrooms, including limits on content, the way child pornography could be shared, and a code of conduct for the chatroom members.
According to his guilty plea and documents filed in court, after the execution of a search warrant at CHAPMAN’S residence, CHAPMAN obstructed the FBI’s investigation by warning others in the chatrooms that the FBI was aware of their activities.
This case was the result of an investigation conducted by the FBI.
This case was prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Alexander D. Chiquoine.
Defendant Information:
JUSTIN THOMAS CHAPMAN, 38
Brooklyn Center, Minn.
Convicted:
- Distribution of child pornography, 1 count
Sentenced:
- 180 months in prison
- Ten years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Brockton Man Sentenced to Prison for Drug TraffickingRead the Press Release
BOSTON – A Brockton man was sentenced in federal court in Boston on Tuesday, Sept. 24, 2019, for trafficking in cocaine while on supervised release from an earlier federal drug trafficking conviction.
Angelo Pina, 28, was sentenced by U.S. District Court Judge Denise J. Casper to 15 months in prison for violating the terms of his supervised release. Judge Casper ordered that the sentence be served consecutive to a 21-month prison sentence imposed on Sept. 4, 2019, by Judge Nathaniel Gorton for conspiracy to distribute cocaine.
During an investigation in September and October 2018, federal agents intercepted telephone calls between Pina and Djuna Goncalves, which revealed that Goncalves worked with others to distribute large quantities of heroin, fentanyl, cocaine, crack cocaine, and marijuana from a base of operations at 12 Addison Avenue in Brockton.
During the intercepted calls, Pina ordered cocaine from Goncalves, and agents later observed Pina pick up cocaine from Goncalves the Brockton location. At the time, Pina was on supervised release from a 2017 federal conviction for distribution of fentanyl, and, in fact, first contacted Goncalves by phone while he was incarcerated.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Kerry A. Gilpin, Superintended of the Massachusetts State Police; Brockton Police Chief John Crowley; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Brockton Man Charged as Felon in Possession of FirearmRead the Press Release
BOSTON – A Brockton man was indicted yesterday in federal court in Boston with being a felon in possession of a firearm.
Clive McFarlane, 36, was indicted on one count of being a felon in possession of a firearm.
According to the charging documents, on Aug. 27, 2019, McFarlane was found in possession of a Rohm Gesellschaft .25 caliber revolver, one round of Remington .25 caliber ammunition and seven rounds of Cascade Cartridges .25 caliber ammunition. McFarlane had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail and therefore was prohibited from possessing firearms.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bridgeport Man Sentenced to 3 Years in Prison for Distributing Cocaine While on Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAMON HERNANDEZ, 61, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for distributing cocaine and violating the conditions of his supervised release from a prior federal conviction.
According court documents and statements made in court, an investigation led by the Drug Enforcement Administration revealed that Hernandez, who was on federal supervised release, was selling cocaine near a drug rehabilitation facility where he worked. Investigators conducted multiple controlled purchases of cocaine from Hernandez near that facility. On February 13, 2019, Hernandez was arrested after he possessed and intended to distribute more than 250 grams of cocaine.
Hernandez has been detained since his arrest. On June 17, 2019, he pleaded guilty to one count of possession with intent to distribute cocaine.
In March 2006, Hernandez was sentenced in Bridgeport federal court to 84 months of imprisonment and 10 years of supervised release for his role in a cocaine trafficking ring. He was released from federal prison in August 2011.
This matter was investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force and Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
Boston Man Sentenced for Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for being a felon in possession of a firearm and ammunition.
Mohamed Abdulaziz, 31, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and three years of supervised release. In June 2019, Abdulaziz pleaded guilty to one count of being a felon in possession of a firearm and ammunition after being charged in December 2018.
On Sept. 2, 2018, law enforcement officers stopped Abdulaziz on Route 24 South in West Bridgewater because he was driving erratically. After Abdulaziz failed several field sobriety tests, he was arrested for driving under the influence of alcohol. A routine inventory search of Abdulaziz’s vehicle before it was towed resulted in the recovery of a loaded revolver beneath the driver’s seat. Federal law prohibits Abdulaziz from possessing a firearm or ammunition because of a prior felony conviction.
United States Attorney Andrew E. Lelling and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Boston Man Charged with Illegally Possessing a Loaded HandgunRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for being a felon in possession of a firearm and ammunition.
Kerry Charlotin, 30, was indicted on one count of being a felon in possession of a firearm and ammunition. Charlotin was charged by criminal complaint in August 2019.
According to the charging documents, on May 1, 2019, officers were in the area of Blue Hill Avenue in Mattapan due to resident complaints of drug dealing and public drinking. It is alleged that when Charlotin, who was seen by the officers wearing a black backpack, observed the police presence, he ran. The officers pursued him, and when they caught up to him, a black backpack was in the air and landed on the roof of a building. Charlotin, no longer wearing a black backpack, continued running from the officers; he was eventually found hiding in a fenced in area in a backyard. When officers recovered the black backpack, they found, among other things, a loaded Glock 26, 9mm caliber Lugar semi-automatic pistol containing nine rounds of ammunition, one of those rounds was in the chamber.
Based on prior felony convictions, Charlotin is prohibited from possessing a firearm and ammunition under federal law.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting 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. PSN is 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.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boise Man Pleads Guilty to Multi-Million Dollar Counterfeit Cellphone SchemeRead the Press Release
BOISE – Artur Pupko, 28, of Boise, pleaded guilty in U.S. District Court to trafficking in counterfeit goods, U.S. Attorney Bart M. Davis and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today. Sentencing for Pupko has been set for December 17, 2019 before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
According to court records, Pupko conspired with others to operate a multi-million dollar scheme wherein they sold counterfeit cellphones and cellphone accessories on Amazon.com and eBay.com that were misrepresented as new and genuine Apple and Samsung products. Using at least six different corporate entities, Pupko smuggled counterfeit cellphones and cellphone accessories in bulk from manufacturers in Hong Kong and China, repackaged the products in the Treasure Valley, and then individually resold to consumers online as genuine and new in order to deceive customers. Also as part of his plea, Pupko admitted that, on three different occasions in October through December 2017, his company sold counterfeit Apple and/or Samsung products to law enforcement.
The charge of trafficking in counterfeit goods is punishable by up to ten years in prison, a 5 million dollar fine, and a term of supervised release of up to 3 years.
This case is the result of a coordinated investigation by the Federal Bureau of Investigation, Immigration and Customs Enforcement Homeland Security Investigations, Internal Revenue Service – Criminal Investigations, and United States Postal Inspection Service. Senior Trial Attorney Timothy Flowers with the Department of Justice’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Christian Nafzger and Katherine Horwitz prosecuted the case.
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Berks County Man Sentenced to 57 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Castro, age 29, of Reading, Pennsylvania, was sentenced on September 25, 2019, by U.S. District Court Judge Robert D. Mariani, to 57 months’ imprisonment for participating in a methamphetamine trafficking conspiracy that operated in Schuylkill and Berks Counties.
According to United States Attorney David J. Freed, Castro previously pleaded guilty to conspiracy to distribute more than 500 grams of methamphetamine between July 2016 and May 2017.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Berkeley County man admits to child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Alan Himelright, of Inwood, West Virginia, has admitted to distributing child pornography, U.S. Attorney Bill Powell announced.
Himelright, age 35, pled guilty to one count of “Distribution of Child Pornography.” Himelright admitted to distributing child pornography in October 2018 in Berkeley County.
Himelright faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The West Virginia State Police and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Australian Man Sentenced to Prison for Illegally Possessing Firearm in HawaiiRead the Press Release
AUSTRALIAN MAN SENTENCED TO PRISON
FOR ILLEGALLY POSSESSING FIREARM IN HAWAII
HONOLULU – Melvyn Gear, 59, a citizen of both Great Britain and Australia, was sentenced in federal court by Senior United States District Judge Susan Oki Mollway yesterday to 15 months of imprisonment for the illegal possession of a firearm. He was convicted of being an alien illegally in possession of a firearm after a jury trial on May 7-10, 2019.
Federal law prohibits a foreign national living in the United States pursuant to a non-immigrant visa from possessing any firearms. The evidence presented at trial demonstrated that Gear was in the United States on a non-immigrant visa in July 2017 when he possessed a rifle that had been shipped into the United States, which he had owned in Australia. He then lied about it when questioned by federal law enforcement officers.
U.S. Attorney Kenji M. Price said, "We will continue our efforts to prosecute anyone in Hawaii possessing a firearm in violation of federal law." At the sentencing hearing yesterday, Senior U.S. District Judge Mollway rejected a defense request for a probationary sentence and instead sentenced Gear to 15 months of imprisonment and noted that the conviction will likely result in deportation after Gear serves the term of imprisonment.
The case was investigated by the Department of Homeland Security (Homeland Security Investigations), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hawaii County Police Department. It was prosecuted by Assistant U.S. Attorney Marshall H. Silverberg and Special Assistant U.S. Attorney Kauanoe Jackson.
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Armed Meth Dealer Sentenced to Seven Years in Federal PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Ronald Clark Roddenberry, 52, of Little River, Alabama, was sentenced today in federal court on charges of conspiracy to distribute methamphetamine and felon in possession of a firearm. Roddenberry pled guilty to the charges in December of 2018.
United States District Court Judge Terry F. Moorer imposed a sentence of 84 months imprisonment on each count, to be served concurrently. The judge ordered that Roddenberry will undergo treatment for drug and alcohol abuse while incarcerated. The judge also ordered that Roddenberry will serve a five-year term of supervised release beginning upon his discharge from prison. During his supervision, Roddenberry will be subject to drug testing and further drug treatment. No fine was imposed, but Roddenberry was ordered to pay $200 in special assessments.
The case was investigated by the Bay Minette Police Department, the Baldwin County Sheriff’s Office, the Daphne Police Department, and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Armed Career Criminal Sentenced to 188 Months in Federal PrisonRead the Press Release
Jackson, TN –Marshawn Keith Burrus, 56, has been sentenced to 188 months in federal prison for being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on June 8, 2018, officers with the Jackson Police Department made contact with a suspicious vehicle in the parking lot of the Old Hickory Inn, Jackson, Tennessee. Officers observed in plain view a .40 caliber pistol in the empty back seat. An investigation of the firearm in the vehicle led officers with the Jackson-Madison County Metro Narcotics Unit to apply for and execute a search warrant of a motel room where they found Burrus along with other individuals, as well as, a 9mm pistol, cocaine, liquid codeine, methamphetamine and marijuana.
The defendant provided a statement to law enforcement that he had purchased both pistols from two separate individuals. Burrus had previously been convicted in state court of multiple felony offenses including four counts of robbery with a deadly weapon, aggravated burglary, sale of drugs, possession of a firearm by a convicted felon, evading arrest by motor vehicle, two counts of carjacking and another possession of a firearm by a convicted felon.
Burrusmade an appearance bond on the state case. On August 20, 2018, he was arrested again by Jackson Police Department for possession of a firearm as a convicted felon and other drug offenses. On August 23, 2018, the District Court issued an arrest warrant on a complaint for the June 8, 2018, incident and the defendant has remained in custody.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, the defendant was an armed career criminal who continued to possess firearms despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more armed career criminal removed from our streets. Gun Crime is Max Time."
On September 24, 2019, U.S. Chief District Court Judge, S. Thomas Anderson sentenced Burrus to 188 months imprisonment followed by 5 years supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jackson Police Department and Jackson-Madison County Metro Narcotics.
Assistant U.S. Attorney Hillary Parham prosecuted this case on behalf of the government.
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Allentown Man Sentenced to over 11 Years’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Birch, age 46, of Allentown, was sentenced on September 25, 2019, to 140 months’ imprisonment by Senior U.S. District Court Judge A. Richard Caputo, for his role in a heroin trafficking conspiracy that operated in Carbon and Lehigh Counties from December 2014 through September 2016.
According to United States Attorney David J. Freed, Birch previously admitted to obtaining heroin from suppliers in New York and Allentown and distributing the drug in Carbon County, Pennsylvania, and elsewhere. Birch was responsible for distributing between 100 grams and 400 grams of heroin, which is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.
Judge Caputo also ordered Birch to serve four years on supervised release following his prison sentence.
The case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, and Allentown Police Department. Assistant United States Attorney Francis P. Sempa 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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