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25 September 2019
Gulf Coast Health Care Fraud Law Enforcement Action Results in Charges Against 34 IndividualsRead the Press Release
WASHINGTON – Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud. The conduct allegedly resulted in more than $515 million in fraudulent billings. Those charged included physicians, licensed social workers, as well as other medical and business professionals. In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).
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) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.
The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.
“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”
“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry. “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”
“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community. As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems. Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud. I want to commend the hard work of all who have been instrumental in this nationwide effort.”
“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”
“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida. “This indictment is the next step in holding these two defendants accountable for their actions.”
“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed. These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office. “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”
“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region. “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”
“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office. “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI. The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”
“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office. “Our agency is stepping up our efforts to combat the opioid problem facing our nation. These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”
*********
Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Southern District of Mississippi, three defendants have been charged.
Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme. The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million. The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.
Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes. The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE. The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.
In the Middle District of Louisiana, four defendants have been charged.
J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship. According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted. The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.
Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid. Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not. According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million. The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana.
In the Eastern District of Louisiana, three defendants have been charged.
Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market. The case is being prosecuted by Trial Attorney Jared Hasten.
Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills. The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.
In the Northern District of Florida, two defendants have been charged.
Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided. According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid. The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.
*********
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.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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19-1029
Gulf Coast Health Care Fraud Law Enforcement Action Results in Charges Against 33 IndividualsRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud. The conduct allegedly resulted in more than $515 million in fraudulent billings. Those charged included physicians, licensed social workers, as well as other medical and business professionals. In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).
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) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.
The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.
“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”
“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community. As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems. Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud. I want to commend the hard work of all who have been instrumental in this nationwide effort.”
“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”
“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida. “This indictment is the next step in holding these two defendants accountable for their actions.”
“Healthcare fraud harms us all," said U.S. Attorney Mike Hurst of the Southern District of Mississippi. "When individuals put their greed above the interests and well-being of our men and women in uniform and our veterans, this office will be there to swiftly bring them to justice.”
“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry. “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”
“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed. These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office. “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”
“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region. “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”
“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office. “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI. The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”
“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office. “Our agency is stepping up our efforts to combat the opioid problem facing our nation. These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”
*********
Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Southern District of Mississippi, three defendants have been charged.
Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme. The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million. The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.
Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes. The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE. The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.
In the Middle District of Louisiana, four defendants have been charged.
J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship. According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted. The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.
Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid. Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not. According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million. The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana.
In the Eastern District of Louisiana, three defendants have been charged.
Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market. The case is being prosecuted by Trial Attorney Jared Hasten.
Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills. The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.
In the Northern District of Florida, two defendants have been charged.
Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided. According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid. The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.
*********
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.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Gulf Coast Health Care Fraud Law Enforcement Action Results in Charges Against 33 IndividualsRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud. The conduct allegedly resulted in more than $515 million in fraudulent billings. Those charged included physicians, licensed social workers, as well as other medical and business professionals. In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).
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) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.
The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.
“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”
“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community. As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems. Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud. I want to commend the hard work of all who have been instrumental in this nationwide effort.”
“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”
“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida. “This indictment is the next step in holding these two defendants accountable for their actions.”
“Healthcare fraud harms us all," said U.S. Attorney Mike Hurst of the Southern District of Mississippi. "When individuals put their greed above the interests and well-being of our men and women in uniform and our veterans, this office will be there to swiftly bring them to justice.”
“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry. “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”
“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed. These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office. “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”
“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region. “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”
“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office. “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI. The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”
“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office. “Our agency is stepping up our efforts to combat the opioid problem facing our nation. These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”
*********
Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Southern District of Mississippi, three defendants have been charged.
Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme. The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million. The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.
Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes. The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE. The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.
In the Middle District of Louisiana, four defendants have been charged.
J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship. According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted. The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.
Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid. Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not. According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million. The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana.
In the Eastern District of Louisiana, three defendants have been charged.
Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market. The case is being prosecuted by Trial Attorney Jared Hasten.
Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills. The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.
In the Northern District of Florida, two defendants have been charged.
Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided. According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid. The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.
*********
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.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Greenwich Man Sentenced to Prison for Operating Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEONID POLLAK, also known as “Lenny,” 59, of Greenwich, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for operating an investment fraud scheme.
According to court documents and statements made in court, Pollak owned a Norwalk-based company that organized trade shows and expositions throughout the U.S. In mid-2013, Pollak induced an acquaintance to invest money in a new business venture that was supposed to organize similar expositions in Ukraine. Instead of using the money to build the new business, Pollak spent at least $185,000 on unrelated business and personal expenses, including his home mortgage loan and private school tuition.
Judge Hall ordered Pollak to pay $236,049 in restitution to the victim.
Pollak was arrested on September 20, 2018. On March 18, 2019, he pleaded guilty to one count of wire fraud and one count of making illegal monetary transactions.
Pollak, who is released on a $200,000 bond, is required to report to prison on December 9.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, with the assistance of the U.S. Secret Service and Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and Pilar Gonzalez.
Gang Member Sentenced to Federal Prison for Illegal Possession of a FirearmRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Randy Coy James Holmes, age 22, of Moses Lake, Washington, was sentenced today after having pleaded guilty on May 9, 2019, to being a felon in possession of a firearm. United States District Judge Salvador Mendoza, Jr., sentenced Holmes to a 37-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, a Grant County Sheriff’s Office deputy initiated a traffic stop on a vehicle with four occupants in Moses Lake, Washington. During the encounter, the deputy seized a stolen firearm from the vehicle’s rear passenger compartment and in close proximity to Holmes, a member of the Little Valley Locos street gang. Holmes is a previously convicted felon and is prohibited from possessing firearms. The firearm was submitted to the Washington State Patrol Crime Laboratory, which determined it contained a latent print belonging to Holmes.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting individuals who unlawfully possess firearms. Such offenses are serious and just punishment will be pursued against those individuals who violate the firearms laws. I commend the ATF, Grant County Sheriff’s Office and Washington State Patrol Crime Laboratory for their commitment to this successful prosecution.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Spokane Regional Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Grant County Sheriff’s Office, and the Washington State Patrol Crime Laboratory. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Grand Jury Indicts Shooting Suspect on Firearm ChargeRead the Press Release
On September 24, 2019 a Federal Grand Jury returned and indictment against ANDREW WEAVER, age 25, of Cheyenne, Wyoming for being a felon in possession of a firearm stemming from a shooting that occurred in Cheyenne on September 16th. Weaver made his initial appearance in front of Chief United States Magistrate Judge Kelly H. Rankin on September 25th and was ordered to be held in the custody of the United States Marshals Service. Weaver will have his arraignment and detention hearing on September 30th.
The Cheyenne Police Department along with agents of the FBI, DEA, and ATF continue to investigate the shootings of four people in Cheyenne on September 16, 2019. The United States Attorney’s Office is in contact with all agencies involved.
Mark A. Klaassen, United States Attorney for Wyoming, stated, “This indictment is a first step in an ongoing process. My office will continue to do all we can to investigate and develop this case and see that it’s charged appropriately. I appreciate the cooperation that is occurring between our local Cheyenne Police and our federal law enforcement agency partners in this effort.”
An indictment is an allegation and Mr. Weaver is presumed innocent until if and when proven guilty in court.
Fort Wayne Woman Sentenced to 63 MonthsRead the Press Release
FORT WAYNE – Jermesha Davis, age 28, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly Brady for possession with intent to distribute methamphetamine and heroin, announced U.S. Attorney Kirsch.
Davis was sentenced to 63 months in prison followed by 5 years of supervised release.
According to documents in this case, on July 28, 2018, Jermesha Davis was followed by Fort Wayne Police Department officers from her apartment to a residence where a search warrant was being executed as part of an ongoing narcotics trafficking investigation. Davis arrived driving a vehicle belonging to one of the occupants of the location being searched. Davis was also found to be in possession of a cell phone that the Fort Wayne Police Department had been tracking in connection with the investigation. It was determined that Davis did not have a valid driver’s license. A subsequent search of Davis’ home produced quantities of heroin, methamphetamine, and cocaine as well as a cutting agent often used by drug traffickers. Law enforcement also located two firearms in the kitchen.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Fort Wayne Man Sentenced to 117 Months in PrisonRead the Press Release
FORT WAYNE – Brandon Buchanan, age 29, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly Brady upon his plea of guilty for maintaining a drug-involved premises and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Buchanan was sentenced to 117 months imprisonment followed by 2 years of supervised release.
According to documents in this case, in March 2018 a search warrant was served on Buchanan’s residence in Fort Wayne. During the search, investigators located a loaded .357 caliber revolver, fentanyl, crack cocaine, marijuana, hypodermic syringes, approximately $1000 in US currency, evidence of narcotics dealing, along with multiple calibers of ammunition and magazine for various firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and the Indiana State Police. This case was handled by Assistant United States Attorneys Stacey R. Speith and Anthony Geller.
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Former Vice President of Synergy Concepts Pleads Guilty to Stealing FundsRead the Press Release
St. Louis, MO – Steven Walters, 52, of St. Peters, Missouri, pleaded guilty to one felony count of theft or embezzlement from an employee benefit plan. Walters appeared in federal court today before U.S. District Judge Rodney Sippel who accepted his plea and set his sentencing date for December 19, 2019.
According to court documents, Walters began his employment with Synergy Concepts Inc. on or about August 2001. In 2014, Walters was the Vice-President and Secretary of Synergy Concepts Inc. Defendant Walters, on behalf of Synergy Concepts Inc., acted as the co-trustee for a company retirement plan that was funded from voluntary contributions by the employees. From May of 2015 through August 2016, Defendant Walters, as an officer of Synergy Concepts, Inc., failed to transfer withheld funds destined for the retirement plan and instead diverted the funds for other purposes, including his own personal use. Defendant Walters did knowingly embezzle, steal and unlawfully and willfully abstract and convert to his own use the money, funds, securities, premiums, properties and other assets of the employee pension plan that resulted in a total loss of $72,817.27.
“Steven Walters abused his former fiduciary position as Trustee of the Synergy Concepts Retirement Plan by diverting employee contributions and loan repayments for his personal use. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the integrity of employee benefit plans,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
This case is being investigated by the Department of Labor, Office of Inspector General. Assistant U.S. Attorney Gwendolyn Carroll is handling the case for the U.S. Attorney’s Office.
Former Owner and Operator of Jannah Healthcare Charged with Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District, announced that a federal grand jury in the district returned an indictment charging Latoya Joseph with three counts of tax evasion, in violation of 26 U.S.C. § 7201.
Ms. Joseph was the owner and operator of Jannah Home Health Care, LLC (“Jannah”), a home health business providing personal care services primarily to Medicaid recipients in the Milwaukee area. According to the indictment, Joseph received more than $1.8M from Jannah in 2013, 2014, and 2015, but failed to file federal income tax returns for herself or the business for these years. The indictment alleges that Joseph willfully attempted to evade and defeat the proper assessment and payment of income taxes totaling approximately $640,000.
In a separate indictment also returned today, the grand jury has charged Ms. Joseph with scheming to defraud the Social Security Administration in connection with disability benefits that were paid to a Jannah employee.
“These charges allege serious abuses of federal programs, including the failure to pay taxes on income earned by a federally funded home-health agency,” said U.S. Attorney Krueger. “We are committed to prosecuting program fraud and tax cheating aggressively to protect federal funds.” Added Chicago IRS Criminal Investigation Special Agent in Charge Kathy Enstrom: “Today’s indictment alleges the misuse of Joseph’s standing in the community as a person providing vital services to those in need. IRS-Criminal Investigation remains committed to the investigation of those who violate the tax laws for their own benefit.”
These matters were jointly investigated by agents of the U.S. Internal Revenue Service – Criminal Investigation, agents of the Social Security Administration – Office of Inspector General, and agents of the U.S. Department of Health and Human Services - Office of the Inspector General. They are being prosecuted by Assistant United States Attorney Jonathan H. Koenig.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
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Former CEO Agrees to Plead Guilty to Embezzlement and Tax CrimesRead the Press Release
BOSTON – The former CEO and co-founder of a Boston-based mobile phone music streaming service, has agreed to plead guilty in connection with a scheme to embezzle hundreds of thousands of dollars from his employer and to file false tax returns.
David John, 56, who recently changed his name from David John Fondots, was charged by information with one count of wire fraud and one count of filing false tax returns. A plea hearing has not yet been scheduled. In June 2019, the defendant was arrested and charged by criminal complaint under the name David Fondots. According to court records, in June 2018, the government learned that the defendant changed his name from David John Fondots to David John but did not inform Pretrial Services.
According to the court documents, Fondots misappropriated company funds which he used for his personal benefit. From 2014 to 2016, Fondots caused his company to pay significant sums of money directly to himself, to a family member, and to companies controlled by a family member. Fondots used the embezzled funds to pay personal expenses for himself and his family, including car payments, legal fees, and travel, among other things. Fondots is also charged with failing to report the illegal income to the IRS over the period of his embezzlement scheme.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, restitution, and forfeiture. The charge of filing false tax returns provides a sentence of no greater than three years in prison, one year 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities & Financial Fraud Unit is prosecuting the case.
Florida and Georgia Health Care Fraud Law Enforcement Action Results in Charges against 67 IndividualsRead the Press Release
The Justice Department announced today a significant health care fraud enforcement operation across Florida and Georgia, involving charges against a total of 67 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare and Medicaid. The conduct allegedly resulted in more than $160 million in fraudulent billings. Those charged included physicians as well as other medical and business professionals. In addition, in the state of Florida, 16 defendants, including one licensed mental health professionals, have been charged with defrauding the Medicaid program out of over $1.2 million. Florida’s Medicaid Fraud Control Unit (MFCU) investigated these cases.
The charges announced today aggressively target schemes alleged to have billed Medicare, Medicaid and private insurance companies for medically unnecessary services, such as home health, prescriptions drugs and durable medical equipment.
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) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of various other federal law enforcement agencies and state MFCUs. The Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI) also announced today that all appropriate administrative actions would be taken based on these charges.
“The defendants charged today allegedly bilked the American people to the tune of millions in fraudulent billings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “All Americans should stand with the Department as we fight the fight against these unscrupulous schemes in Florida, Georgia, and across the country.”
“Anyone who seeks to exploit our federal healthcare programs for personal gain and illicit profit should know that we will prosecute them to the fullest extent of the law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “The American people must have confidence in the healthcare services for which they pay and receive, and trust in those who administer them.”
“Health care programs provide vital services to Americans,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “Those who perpetuate these pervasive health care fraud schemes steal taxpayer dollars from intended beneficiaries and threaten the viability of government programs. We commend the coordinated and continued efforts of our federal law enforcement partners to root out fraud and abuse in our healthcare system.”
“The drug dealer stereotype involves violent gang members peddling poison in our streets, but often the illicit dealers wear white coats and work in medical offices,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “People who violate medical oaths and ethical codes to turn illegal profits by fueling the opioid crisis will find prosecutors and investigators working tirelessly to swap their lab coats for prison uniforms.”
“Being a healthcare professional in the Medicare program is a privilege, not a right. When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office. “Today’s arrests put corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
“FBI Atlanta and its Savannah Resident Agency are proud to have participated in this nationwide effort to help protect the much needed federal funds that Medicare provides,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “When providers are driven by greed and abuse the Medicare program, every tax paying citizen is a victim, especially those who use the federal funds for their health care needs. Improper billing inflates costs and the FBI and its law enforcement partners are determined to hold those who do it accountable.”
“The FBI and its federal, state and local partners are working tirelessly every day to detect and combat schemes like those announced today,” said Special Agent in Charge George L. Piro of the FBI’s Miami field office. “Despite our efforts, we still need the public's help in reporting suspicious activity. If anyone suspects they are a victim of health care fraud please call your local FBI office or the HHS Office of Inspector General.”
“We commend the law enforcement partnerships for this operation and pledge to continue our commitment to protecting the nation's federally funded healthcare system and the people who depend on it," said Special Agent in Charge Michael McPherson of the FBI’s Tampa Division.
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Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Northern District of Georgia, one defendant was charged.
Donald Graham, 49, of Smyrna, Georgia, a former employee of a metro Atlanta hospital, has been charged for allegedly stealing and selling individually identifiable health information that was used to submit fraudulent claims to Medicaid. Assistant U.S. Attorney Jeffrey A. Brown of the Northern District of Georgia and Assistant Attorney General Elizabeth Grofic of the Georgia Medicaid Fraud Control Unit are handling the case.
In the Southern District of Georgia, six defendants were charged and one civil complaint was filed.
Jenna Savage, 26 of Port Wentworth, Georgia; Norman Lee Burnsed, 27 of Port Wentworth, Georgia; Tucker Chambers, 21 of Ellabell, Georgia; Macaila Brown, 22 of Rincon, Georgia; and Cameron Hilliard, 26 of Savannah, Georgia, were indicted by a federal grand jury in Savannah with conspiracy charges under the Controlled Substances Act relating to the distribution of oxycodone, Adderall, alprazolam, and clonazepam. Assistant U.S. Attorneys Katelyn Semales and Marcela Mateo are prosecuting the case.
David L. Williford, 59, of Rincon, Georgia, a pharmacist, was charged by information with one count of acquiring a controlled substance (oxycodone) by misrepresentation, fraud, or forgery. Assistant U.S. Attorney Jonathan A. Porter is prosecuting the case.
Darien Pharmacy and Janice Ann Colter, 62, of Darien, Georgia, a pharmacist, were named in a civil complaint filed in federal court that accused Darien Pharmacy and Colter of filling prescriptions for controlled substances that the defendants knew or should have known were not issued for legitimate medical reasons, and by a provider not acting with the regular course of professional practice. Assistant U.S. Attorneys Bradford C. Patrick and Jonathan A. Porter are prosecuting the case.
In the Middle District of Florida, two defendants were charged.
Teresa Johnson, 53, of Lecanto, Florida, was charged by information with one count of conspiracy to commit health care fraud and submit fraudulent claims to Medicare, Medicaid, Tricare and ChampaVA. According to the indictment, Johnson owned and operated Tri-County Medical Billing and, from November 2016 through October 2018, knowingly submitted false and fraudulent claims on behalf of a medical doctor who owned clinics in Crystal River, Spring Hill and Celebration, Florida. HHS-OIG, FBI, DoD-OIG, VA-OIG and the Florida Office of Attorney General Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Kelley Howard-Allen is prosecuting the case.
Marcus Anderson, 34, of St. Petersburg, Florida, was charged in a thirteen-count indictment with health care fraud and aggravated identity theft for allegedly stealing rendering providers’ identities to submit more than $1.2 million in false and fraudulent claims to Medicaid. HHS-OIG and the Florida Office of Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Kristen A. Fiore will prosecute the case.
In the Southern District of Florida, 42 defendants were charged.
Ana Maria Fernandez, 62, and Berta Leon, 69, of Miami, Florida, were charged with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to use their company ABC Medical Solutions Corp. of Miami, to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah, Florida. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida is prosecuting this case.
Sara Tania Ruiz, 55, of Hialeah, and Maria Laura Prieto, 60, of Miami, were charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida is prosecuting this case.
Marisol Padilla, 48, of Hialeah, was charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
Juan Jose Mesa, 58, and Madelaine Varona, 47, both of Miami, owners and/or operators of All Excellent OT-PT Service LLC of Miami and Cruz Healthcare Corp. of Miami, respectively; Sandra Cardona, 47, of Hialeah, an allegedly unlicensed therapist; and Silvia Salvatori, 67, of Pembroke Pines, Florida, a licensed massage therapist, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud. Mesa and Varona were also charged with five and six counts of health care fraud, respectively. The charges stem from Mesa’s and Varona’s alleged roles in a scheme to defraud Part A of the Medicare program of more than $4 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters in exchange for patient referrals. Cardona and Salvatori, who were allegedly not licensed to provide physical therapy, accepted payment from a licensed physical therapist, paid by their co-conspirators, in exchange for allegedly obtaining signed patient visitation forms from Medicare beneficiaries used to submit false and fraudulent claims. This case was investigated by HHS-OIG and the FBI. The case is being handled by Assistant U.S. Attorney Kevin Larsen of the Southern District of Florida.
Ivan Bejerano, 49, of Miami, was charged by indictment with seven counts of health care fraud and one count of conspiracy to commit health care and wire fraud. According to the indictment, Dynamic Physical Rehab Inc. (Dynamic) was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From June 2017 through July 2019, Bejerano allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $2.5 million that falsely and fraudulently represented that various health care benefits, primarily physical therapy, were medically necessary, prescribed by a doctor, and had been provided by Dynamic to insurance beneficiaries of Blue Cross Blue Shield (BCBS). This case was investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorney Shannon Shaw of the Southern District of Florida.
Jocelyn De La Caridad Perez, 41, and Joaquin Guevara, 46, both of Miami, were charged by indictment with one count of conspiracy to receive health care kickbacks. Perez was also charged with one count of conspiracy to commit health care fraud and wire fraud, and Guevara was also charged with three counts of receipt of kickbacks in connection with a federal health care program. According to the indictment, Perez was an administrator of Joe Rehabilitation and Diagnostic, Inc. (Joe Rehab), an outpatient rehabilitation facility in Doral, Florida, that purportedly provided therapy services to Medicare beneficiaries. As part of the fraudulent scheme, Perez allegedly conspired with others to pay kickbacks and bribes for the referral of Medicare beneficiaries to Joe Rehab so their information could be used to submit fraudulent claims to Medicare for services purportedly provided, regardless of whether the Medicare beneficiaries needed or received the services. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Anne P. McNamara of the Southern District of Florida is prosecuting this case.
Deivys Ernesto Alvarez, 48, of Hialeah, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. According to the indictment, Alvarez was the owner of Diagnostic Center of Medley Inc., a Miami medical clinic. AP & JL Medical Center Inc. (AP & JL) was another Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. Alvarez and co-conspirators allegedly recruited and paid Comcast Corp. and Telemundo Corp. employees, through Diagnostic Center of Medley Inc., and referred those employees and/or the employees’ personal information to AP & JL to fraudulently bill BCBS. Alvarez and his co-conspirators allegedly submitted and caused the submission of false and fraudulent claims, via interstate wires, totaling approximately $800,500. This case was investigated by HHS-OIG and the FBI. This case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida.
Elba Cobos Baile, 60, and Yolanda Castano, 55, both of Miami, were charged by indictment with four counts of health care fraud and one count of conspiracy to commit health care fraud and wire fraud. Cobos and Castano were the owners and operators of Pharmacy Solution, a retail pharmacy in Miami-Dade County. The indictment alleges that from on or about March 1, 2012 to September 17, 2014, Cobos and Castano submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by Pharmacy Solution to Medicare beneficiaries. As a result of these false and fraudulent claims, Medicare prescription drug plan sponsors allegedly made payments funded by the Medicare Part D Program to the corporate bank accounts of Pharmacy Solution in the approximate amount of at least $2.1 million. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Christopher J. Clark of the Southern District of Florida is prosecuting this case.
Tania Rodriguez, 48, and Rafael Vidal, 61, both of Miami, were charged by indictment with one count of conspiracy to commit healthcare and wire fraud and seven counts of health care fraud. According to the indictment, the defendants participated in a conspiracy to use their company, American United Pharmacy Corp. of Miami, to offer and pay kickbacks for the referral of Medicare beneficiaries to their pharmacy, and to submit false and fraudulent claims to Medicare for prescription drugs that were not provided to Medicare beneficiaries. Assistant U.S. Attorney David Turken of the Southern District of Florida is prosecuting this case.
Ricardo Ignacio Perez, 54, and Ricardo Perez-Leon, 31, both of Miami, the owners and operators of three Miami pharmacies, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud; one count of conspiracy to defraud the United States and pay and receive health care kickbacks; and three counts of health care fraud. The indictment alleges that the defendants participated in a scheme to pay kickbacks and bribes to patient recruiters and to fraudulently bill Medicare drug plan sponsors for prescription medications. The indictment alleges that, during the course of the fraudulent scheme, the defendants received approximately $5.3 million from Medicare drug plan sponsors for prescription medications that were medically unnecessary, never provided and/or never purchased by the defendants’ pharmacies. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Tim Loper of the Fraud Section.
Steven Kahn, 61, of Boca Raton, and Pamela Edwin, 33, of Delray Beach, the owner and office manager, respectively, of a Broward county telemedicine company, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and three counts of wire fraud. Kahn was also charged with five counts of money laundering. The indictment alleges that the defendants paid kickbacks and bribes to physicians in exchange for signing doctors’ orders, and that the defendants then sold the doctors’ orders to Medicare providers who used the orders to submit approximately $39 million in fraudulent claims to Medicare. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Catherine Wagner of the Fraud Section.
Jordan Karlick, 33, of Boca Raton, Michael Moranz, 32, of Lake Worth, and Jordan Chibnick, 36, of Plantation, the owners of Palm Beach durable medical equipment (DME) companies, were charged by indictment with one count of conspiracy to commit healthcare fraud and wire fraud, one count of conspiracy to defraud the United States and pay kickbacks, four counts of health care fraud, and three counts of payment of kickbacks. The indictment alleges that the defendants paid kickbacks and bribes in exchange for signed doctors’ orders for DME, which the defendants used to fraudulently bill Medicare for over $23 million. The indictment alleges that defendants sought to impede Medicare beneficiary’s ability to return DME that they did not want or need to defendants’ companies, so that defendants could continue to bill Medicare for that DME. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Catherine Wagner of the Fraud Section.
Richard S. Mallia, D.P.M., 55, a podiatrist, was charged by indictment with one count of conspiracy to defraud the United States and to receive kickbacks, one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud, for his role in a health care fraud conspiracy that caused a loss of approximately $7.7 million to the Medicare program. The indictment alleges that Mallia accepted cash kickbacks in exchange for writing medically unnecessary home health prescriptions and also participated in a scheme to submit claims to Medicare for relatively expensive foot procedures that he never performed. This case was investigated by HHS-OIG, the FBI, and United States Secret Service. The case is being prosecuted by Trial Attorney Alexander Pogozelski of the Fraud Section.
Peter Port, 64, of Boca Raton, Brian Dublynn, 62, of Fort Lauderdale, and Jennifer Sanford, 57, of Hollywood, were charged for their alleged participation in a scheme to defraud private health insurance companies. Port, Dublynn and Sanford were each charged with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. In addition, Port and Dublynn were each charged with one count of conspiracy to commit money laundering and five counts of money laundering. The defendants caused Safe Haven Recovery Inc. (Safe Haven), a substance abuse treatment facility in Miami, and several clinical laboratories to submit false and fraudulent claims to health insurance plans for addiction treatment services that were not provided as billed and laboratory tests that were not medically necessary. This case was investigated by the FBI. This case is being handled by Trial Attorney David A. Snider of the Fraud Section.
Maribel Sera, 51, of Hialeah, was charged by information with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the information, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. HHS-OIG and the FBI investigated this case. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
Francisco Abreu Tartabull, 53, of Miami, was charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with his role in a $2.1 million private insurance fraud scheme. According to the indictment, Tartabull was the owner and operator of South Dade Medical Center Inc. (South Dade), a Miami medical clinic that purportedly provided Blue Cross Blue Shield insurance beneficiaries with various medical treatments and services. As part of the fraudulent scheme, Tartabull and his co-conspirators submitted more than $2.1 million in fraudulent claims to Blue Cross Blue Shield. These claims falsely represented that the benefits Tartabull’s clinic had billed insurance for were medically necessary, prescribed by a doctor, and had been provided by South Dade to these beneficiaries. As a result of these false claims, Blue Cross Blue Shield paid Tartabull’s clinic more than $920,000. Tartabull then used this ill-gotten money for his own personal use and benefit, and to further the fraud. The FBI investigated this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
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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.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Florida Man Pleads Guilty to Wire Fraud as Part of an Investment Fraud Scheme Involving Baton Rouge Area VictimsRead the Press Release
United States Attorney Brandon J. Fremin announced today that Wallace Byers, age 59, of Miami, Florida, pled guilty to three counts of wire fraud before U.S. District Judge Brian A. Jackson. As a result of his conviction, Byers faces a significant term of imprisonment, a fine, and a period of supervised release.
According to admissions made as part of his guilty plea, between October 2014 and November 2018, Byers solicited victims in the Baton Rouge area and elsewhere to invest with his company, WBI Associates, Inc., promising victims large returns in a short time frame. Byers focused his solicitations on older individuals and those who had been victims of prior schemes. He promised his victims that the money would be invested, variously, in gold production, a lottery company, foreign currency, or “dark pools” or “blind pools.” Whenever his victims pressed for returns or refunds of their money, Byers gave various excuses for delays – the money was invested overseas, other individuals had to “sign off,” or more money needed to be invested before any was paid out. In truth, instead of investing the money as promised, Byers spent the money on personal expenditures, including among others, approximately $10,000 per month in rent for his residence in a Miami hotel, the lease of luxury cars, and gambling in casinos. Byers admitted that he received between $3,500,001 and $9,500,000 as a result of his scheme, $3,000,000 of which he sent to a Swiss bank account he controlled. Byers also admitted that he had two prior federal felony convictions, one of which was for a similar wire fraud scheme.
U.S. Attorney Brandon J. Fremin stated, “This plea demonstrates our commitment to investigate and prosecute criminals who target our community with financial scams and abuse. Defendants who illegally line their pockets by deceiving and defrauding elderly victims have our attention and will be duly investigated and prosecuted. I am grateful for the outstanding efforts of our prosecutors and the dedicated professionals at the FBI whose collaboration and contributions were critical to the success of this important matter.”
Bryan Vorndran, FBI New Orleans Special Agent in Charge stated, “Wallace Byers’ greed and pursuit of a lavish lifestyle depleted a number of victims in seven states of their life savings. Through an in-depth investigation, the FBI uncovered Byers’ detailed scheme of defrauding elders and vulnerable citizens for his own personal gain. I commend the hard work and dedication put forth by the investigative team and prosecutor to bring this case to justice. We urge the public to perform extensive research before investing with any company or individuals who promise large returns on your investments. Elder abuse is a top investigative priority for the FBI, if you believe you are a victim please contact the FBI at 1-800-CALL FBI or online at https://tips.fbi.gov.”
This matter is being investigated by the Federal Bureau of Investigations - Baton Rouge Field Office, and is being prosecuted by Assistant United States Attorney Elizabeth E. White, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana, and AUSAs Peter J. Smyczek and Demetrius D. Sumner.
The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/elderjustice.
Five Walton County Residents Charged in Drug Trafficking ConspiracyRead the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment, charging five defendants with federal drug trafficking offenses. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The defendants are:
• Kadeem Ingram, 29, DeFuniak Springs, Florida;
• Kenneth Ingram, 59, DeFuniak Springs, Florida;
• Terrell Burdette, 63, DeFuniak Springs, Florida;
• Sidney McGhee, 30, DeFuniak Springs, Florida; and
• Francis Muldowney, 59, Santa Rosa Beach, Florida
The indictment and arrests resulted from an ongoing Organized Crime Drug Enforcement Task Force Operation which targeted a drug trafficking organization alleged to be responsible for the distribution of cocaine and cocaine base throughout the northcentral panhandle of Florida since the beginning of 2019.
The charged defendants face penalties ranging up to 40 years imprisonment and fines up to $10,000,000.
The case was investigated by the Drug Enforcement Administration, the Walton County Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Bay County Sheriff’s Office, the Washington County Sheriff’s Office, the Lynn Haven Police Department, the Panama City Police Department, and the Panama City Beach Police Department. The case is being prosecuted by Assistant United States Attorney Michelle Daffin.
The prosecution, part of an extensive investigation by the Organized Crime Drug Enforcement Trask Force (OCDETF) OCDETF, is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to take down criminal organizations and seize assets.
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.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
FCI Danbury Inmate Pleads Guilty to Possessing WeaponsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JULIAN DE JESUS CASTILLO, 35, pleaded guilty yesterday in Hartford federal court to possession of contraband in a federal prison.
According to court documents and statements made in court, on February 8, 2018, Castillo, an inmate at the Federal Correctional Institution in Danbury, Connecticut, possessed a razor blade and a 7.5 inch piece of flat metal that had sharpened edges and a point at one end. The razor blade was discovered taped to the underside of Castillo’s assigned bunk and the metal blade was concealed at the base of a pillar adjacent to Castillo’s bunk. The objects were designed or intended to be used as weapons.
Castillo is scheduled be sentenced by U.S. District Judge Michael P. Shea on December 19, 2019, at which time he faces a maximum term of imprisonment of five years.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Ex-‘Arsenio Hall Show’ Musical Director Pleads Guilty to Wire Fraud for Embezzling $750,000 from a Charity Concert for Homeless KidsRead the Press Release
LOS ANGELES – A professional drummer who has served as a musical director for the United Nations and “The Arsenio Hall Show” television program pleaded guilty today to one count of wire fraud for embezzling $750,000 from a charity concert for homeless children and using the stolen money to pay alimony to his ex-wife and buy cars for his mother and son.
Robin DiMaggio, 48, of Woodland Hills, entered his plea before United States District Judge Dolly M. Gee, who scheduled a March 4, 2020 sentencing hearing.
According to court documents, DiMaggio said he would assist the Peace for You Peace for Me Foundation, a Bulgaria-based non-profit organization, with organizing a charity concert in the Bulgarian capital of Sofia that was designed to raise money for and raise awareness of homeless and displaced children from conflict zones throughout the world. DiMaggio told the Foundation in a series of communications that he would be able to secure several celebrities to perform at the charity concert, court papers state.
On August 5, 2016, the foundation’s financial sponsor wired $750,000 to a DiMaggio-controlled account as a guarantee for future payments related to artists performing at the charity concert, according to DiMaggio’s plea agreement. Prior to the money transfer, DiMaggio falsely represented that he would not spend the money, which he would place in an escrow account and only later use to pay artists who would perform at the concert, the plea agreement states.
DiMaggio admitted he never set up the escrow account, and instead, several days later, he deposited the $750,000 into his personal bank account and used the money to make payments on cars, credit card debt and his living expenses. DiMaggio also admitted that within weeks of the wire transfer he used $251,370 of the funds to purchase a Calabasas home for his ex-wife. DiMaggio also bought his mother a $35,000 car and bought his son a $24,000 car, the plea agreement states. He also wired $150,000 of the funds to a bank account in the name of his company, DiMagic Entertainment, Inc. None of the transfers was sent to artists or their management in connection with the charity concert in Bulgaria.
The foundation’s financial sponsor later sued DiMaggio in Los Angeles Superior Court and DiMaggio ultimately filed for Chapter 7 bankruptcy protection. In his September 2017 bankruptcy filing, DiMaggio made false statements that he had not made alimony payments or given any gifts worth more than $600 to any person in the prior two years, the plea agreement states.
At his sentencing hearing, DiMaggio will face a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this case.
This matter is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Drug trafficking indictments bring multiple federal charges for narcotics, firearmsRead the Press Release
AUGUSTA, GA: Eight people have been charged in a 13-count federal indictment in a drug trafficking conspiracy that brought large amounts of narcotics from Atlanta for distribution in the Augusta area.
The indictments stem from a two-year joint investigation by the Drug Enforcement Administration and Richmond County Sheriff’s Office into cocaine deliveries from the Atlanta area into Augusta, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition to other charges, all eight defendants – including an Augusta man and his two sons – are charged with Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances.
“This investigation is a great example of interagency cooperation supported by the latest technology,” said U.S. Attorney Christine. “Our office will take the handoff from our law enforcement partners, and carry the ball that last hundred yards to score another victory against those who would peddle poison in our community.”
During the investigation, federal agents and sheriff’s office investigators seized more than $500,000 in cash, more than two kilos of cocaine, 32 grams of crack cocaine and more than 9 pounds of marijuana, along with eight firearms.
Facing federal charges from the indictment are:
- Terrance Quain Freeman, 48, of Augusta, charged with Conspiracy to Possess with Intent to Distribute and To Distribute Five Kilograms or More of Cocaine and an Amount of Marijuana; Possession with Intent to Distribute Marijuana; and Possession with Intent to Distribute Cocaine and Marijuana. If convicted, he faces a sentence of up to life in prison. His two sons also are charged in the conspiracy.
- Mario Hubbard, 43, of Atlanta, charged with one count of Conspiracy to Possess with Intent to Distribute and To Distribute Five Kilograms or More of Cocaine and an Amount of Marijuana. If convicted, he faces a sentence of up to life in prison.
- Timothy Jeremy Myers, 31, of Augusta, charged with one count of Conspiracy to Possess with Intent to Distribute and To Distribute Five Kilograms or More of Cocaine and an Amount of Marijuana, and Possession with Intent to Distribute 500 Grams or More of Cocaine. If convicted, he faces a sentence of up to life in prison.
- Timothy Dale Reid, 51, of Augusta, is charged with charged with Conspiracy to Possess with Intent to Distribute and To Distribute 500 Grams or More of Cocaine; Possession with Intent to Distribute 500 Grams or More of Cocaine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Firearm by a Convicted Felon; and Possession of a Stolen Firearm. If convicted, he faces a sentence of up to life in prison.
- Willie Antonio Bass, 35, of Augusta, is charged with Conspiracy to Possess with Intent to Distribute and To Distribute 500 Grams or More of Cocaine and Possession of a Firearm by a Convicted Felon. If convicted, he faces a sentence of up to 40 years in prison.
- Tyquain Freeman, 27, of Augusta, is charged with Conspiracy to Possess with Intent to Distribute and To Distribute 500 Grams or More of Cocaine, and Possession with Intent to Distribute Marijuana. He is a son of Terrance Freeman. If convicted, he faces a sentence of up to 40 years in prison.
- Christopher Chin, 34, of Augusta, is charged with Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine, Crack Cocaine and Marijuana, and Possession with Intent to Distribute Cocaine, Crack Cocaine and Marijuana. If convicted, he faces a sentence of up to 20 years in prison. And,
- Quieaton Freeman, 20, of Augusta, is charged with Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine, Crack Cocaine and Marijuana; Possession with Intent to Distribute Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of Firearms by an Illegal Drug User. He is a son of Terrance Freeman. If convicted, he faces a sentence of up to 25 years in prison.
If convicted, each of the defendants also would be subject to fines and to serve supervised release after completion of any prison terms.
Those facing charges from separate state indictments include:
- Marvin Hikeem Griffin, 30, of Augusta, charged with two counts of Illegal Use of Communications Facility (OCGA 16-13-32.3);
- Willie Lawrence Wimbley, 42, of Augusta, charged with Trafficking Heroin and Cocaine, Possession of Marijuana with Intent to Distribute, and one count of Illegal Use of Communications Facility;
- Terrell Maurice Myers, 31, of Augusta, charged with Possession of Cocaine with Intent to Distribute, Possession of a Firearm during a Crime, Use of an Article with an Altered Identification Mark, Possession of a Firearm by a Convicted Felon, and one count of Illegal Use of Communications Facility;
- Dana Dione Myers, 49, of Augusta, charged with Possession of Cocaine with Intent to Distribute, Possession of a Firearm during a Crime, Use of an Article with an Altered Identification Mark, and Possession of a Firearm by a Convicted Felon;
- Alonzo Walters, 51, of Augusta, charged with Possession of Cocaine with Intent to Distribute, Possession of a Firearm during a Crime, Use of an Article with an Altered Identification Mark, and Possession of a Firearm by a Convicted Felon;
- Bobby Lewis Jenkins, 31, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Jamie Anderson, 28, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Juan Holliman, 42, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Joshua McDaniel, 24, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Christian Walker, 50, of Augusta, charged with one count of Illegal Use of Communications Facility;
- Michael Daggett, 38, of Augusta, charged with three counts of Illegal Use of Communications Facility;
- Joseph L. Turner, 32, of Augusta, charged with one count of Illegal Use of Communications Facility; and,
- Cornice Roberts Lee, 53, of Augusta, charged with six counts of Computer Invasion of Privacy.
The investigation is ongoing, with additional defendants identified.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This case illustrates how success can be achieved through collaborative efforts between federal, state and local law enforcement and the subsequent prosecution by the U.S. Attorney’s Office.”
“The only way to seriously affect drug distribution in Augusta is by targeting, disrupting and dismantling major drug trafficking organizations,” said Richmond County Sheriff Richard Roundtree. “We will continue to target these organizations. Our message is quite simple: If you distribute drugs in Augusta or cause those drugs to come to Augusta, we will hunt you down.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The investigation was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, the Aiken County Sheriff’s Office, the Dekalb County HIDTA Task Force, the Greene County Sheriff’s Office, and the Georgia National Guard Counterdrug Task Force, and prosecuted for the United States by Assistant U.S. Attorneys Patricia G. Rhodes and Hank Syms. State defendants are being prosecuted by Falin Syms, Senior Assistant District Attorney for the Augusta Judicial Circuit.
District Man Sentenced to Five Years in Prison for Role in Large-Scale Narcotics Trafficking ConspiracyRead the Press Release
WASHINGTON – Artinis Winston, 43, of Northeast, D.C. was sentenced today to five years in prison for his role in a large-scale narcotics trafficking conspiracy. U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD) made the announcement.
Winston pled guilty in July 2019 before the Honorable Amit P. Mehta in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Judge Mehta sentenced Winston to five years in prison, to be followed by four years of supervised release. As part of his guilty plea to engaging in the conspiracy, Winston accepted responsibility for trafficking 360 grams of heroin and 40 grams of buprenorphine (commonly referred to as suboxone). Winston’s conviction in the case represents his fourth felony conviction.
According to the Government’s evidence, in June 2017, ATF began investigating the trafficking of narcotics from the Next Level Cuts barbershop located in the 2400 block of MLK, Jr., Avenue, SE and adjoining property above. Law enforcement discovered a coordinated drug trafficking operation that was centered at the barbershop and extended into Maryland through surveillance, controlled purchases from inside and outside the barbershop, residential search warrants, cellphone searches, arrests, jailhouse calls, pleas, and cooperating witnesses. The investigation established that drug traffickers used the barbershop and adjoining property as a stash location.
The investigation led to a series of arrests beginning in February 2018. These arrests led to the recovery of three firearms from the barbershop, one firearm in a residence, the seizure of more than $7,000 in cash, and without packaging, the seizure of more than 300 grams of PCP, more than 150 grams of heroin, more than 100 grams of fentanyl, boxes of suboxone strips, and more than 100 grams of a cutting agents.
While multiple conspirators had been arrested in 2018, Winston was a fugitive for approximately nine months. Coconspirators Lonnell Tucker, 42, of Temple Hills, Md., Anthony Fields, 45, of Washington, D.C., and Abdul Samuels, 45, of Washington, D.C., were found guilty on March 21, 2019, following a trial in the U.S. District Court for the District of Columbia before Judge Mehta.
During the trial, officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, and the Maryland Office of the State Prosecutor, testified regarding separate arrests of coconspirators during the course of ATF’s investigation, which resulted in the seizure of narcotics, drug paraphernalia, and U.S. currency.
On June 13, 2019, Fields was sentenced to 16 years in prison to be followed by eight years of supervised release. On June 14, 2019, Tucker was sentenced to five years in prison to be followed by three years of supervised release. Samuels is scheduled to be sentenced on October 2, 2019 and faces up to 20 years in prison. Three other defendants – Darryl Smith, 41, of Washington, D.C., James Venable, 47, of Fort Washington, Md., and Lacy Hamilton, 42, of Suitland, Md. – pled guilty earlier to federal charges. Smith managed the barbershop and was sentenced to 80 months in prison relating to his possession of narcotics in the barbershop on February 1, 2018, and for his possession of packaged fentanyl and a loaded firearm following an arrest by MPD in December 2017 outside of the barbershop. Venable, another conspirator, was sentenced to a 37-month prison term following his possession of narcotics and a firearm in both Washington, D.C. during a December 2017 arrest by MPD and at his residence in Maryland on February 1, 2018. Venable also acknowledged selling narcotics to an ATF confidential informant in July 2017. Hamilton was sentenced to a 15-month prison term for selling narcotics outside the barbershop and in Maryland as part of the charged narcotics conspiracy.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the assistance provided by officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, the Maryland Office of the State Prosecutor, and the United States Marshal Service who assisted in trying to apprehend Winston. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Christopher Macchiaroli and Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, and Paralegal Specialist Candace Battle.
Cranston Man Sentenced to Federal Prison on Illicit Sex ChargeRead the Press Release
PROVIDENCE – A Cranston man who befriended a 15-year-old girl from Maine on the Internet who he intended to bring to Rhode Island to engage with in illicit sexual activity was sentenced today to 24 months in federal prison.
Raymond Gliottone, 36, was arrested by Homeland Security Investigations (HSI) agents on November 16, 2018, days before he was scheduled to travel to Maine to pick-up the 15-year-old girl and drive her to his home in Rhode Island, where he intended to engage in prohibited sexual activity. Gliottone and the 15-year-old had been communicating online for several weeks prior to the date of Gliottone’s arrest.
According to court documents and information presented to the court, a family member of the 15-year-old discovered the online communications as well as sexually graphic images exchanged between Gliottone and the 15-year-old. The family member spoke with Gliottone, who claimed that he believed the girl to be 20-years-old. Nevertheless, Gliottone continued to communicate with the girl and made arrangements to travel to Maine to pick her up and drive her to Rhode Island to engage in sexual activity.
Gliottone pleaded guilty on March 13, 2019, to interstate travel with the intent to engage in illicit sexual conduct with a minor. He was sentenced today by U.S. District Court Judge John J. McConnell, Jr., to 24 months imprisonment to be followed by 10 years supervised release, announced United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Convicted Felon Charged with Federal Firearms OffensesRead the Press Release
BOSTON – A Templeton man was arrested yesterday and charged with federal firearms offenses.
John Shaw, 30, was charged by criminal complaint with one count of being a felon in possession of ammunition and one count of unlawful possession of a firearm not identified by serial number. Shaw was detained following an initial appearance in federal court in Worcester.
According to charging documents, on Sept. 24, 2019, during the execution of a search warrant at Shaw’s residence, a rifle that did not bear a serial number and three rounds of .223 caliber ammunition, as well as additional rounds of .22 and .45 caliber ammunition were recovered. Shaw was convicted in Winchendon District Court of breaking and entering in the night with intent to commit a felony and assault and battery with a dangerous weapon. As a previously convicted felon, Shaw was prohibited from possessing a firearm and ammunition.
The charge of being a felon in possession provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful possession of a firearm not identified by serial number provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Edward Lee made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office is prosecuting the case.
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.
Cleveland man was sentenced to eight years in prison for illegally having ammunitionRead the Press Release
A Cleveland man was sentenced to eight years in prison for illegally having ammunition.
A jury in June convicted Joshua Walker, 34, of one count being a felon in possession of ammunition.
Walker possessed 9 mm Luger shell casings on October 25, 2017, before and during an altercation at a Cleveland bar where Walker shot and killed someone, according to trial testimony.
Walker was prohibited from having the ammunition because of a previous conviction for conspiracy to possess with intent to distribute crack cocaine, according to the trial testimony.
This case was prosecuted by Assistant U.S. Attorney John C. Hanley following an investigation by the Cleveland Division of Police and the ATF, with assistance from the Cuyahoga County Prosecutor’s Office.
Choctaw Man Pleads Guilty to Sexual Abuse of a MinorRead the Press Release
Jackson, Miss. – Daniel S. Dixon Jr. Tubby, 39, a member of the Mississippi Band of Choctaw Indians, pled guilty Thursday before Chief United States District Judge Daniel P. Jordan III to sexual abuse of a minor. The crime occurred within the Pearl River Community of the Choctaw Indian reservation.
Judge Jordan will sentence Tubby on December 13, 2019, at 9:00 a.m. in Jackson. He faces a maximum penalty of 15 years imprisonment and a $250,000 fine.
This case was investigated by the Choctaw Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kimberly Purdie.
Brooklyn Park Tax Preparer Known as "Papa Eric" Sentenced to Two Years in Federal PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ERIC WILLOR, 70, to two years in federal prison. WILLOR pleaded guilty on May 21, 2019, to one count of aiding and assisting in the preparation of a false tax return. WILLOR was sentenced yesterday in U.S. District Court by Judge Eric C. Tostrud in St. Paul, Minnesota.
According to his guilty plea and documents filed with the court, WILLOR, also known as “Papa Eric,” ran a tax preparation business called WILLOR’s Tax Preparation and Planning out of his home in Brooklyn Park, Minnesota. WILLOR regularly prepared and filed tax returns using false and fraudulent itemized deductions in order to fraudulently obtain large tax refunds to which his clients were not entitled. Specifically, WILLOR regularly prepared and filed returns falsely claiming that his clients had significant tax-deductible charitable contributions, medical expenses, and educational expenses. In reality, WILLOR knew that these claimed deductions were fraudulent. Between 2012 and 2017, WILLOR prepared and filed approximately 100 fraudulent tax returns that fraudulently claimed a total of approximately $316,000 in tax refunds to which his clients were not entitled.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division.
This case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
Defendant Information:
ERIC WILLOR, 70
Brooklyn Park, Minn.
Convicted:
- Aiding and assisting in the preparation of a false tax return, 1 count
Sentenced:
- 24 months in prison
- 3 years supervised release
- $316,979 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Brooklyn Man Who Set Fire in Kings Plaza Parking Garage Sentenced to Five Years’ ImprisonmentRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Evon Stephens was sentenced by United States District Judge I. Leo Glasser to five years’ imprisonment following his guilty plea to setting fire to a vehicle in the parking garage attached to the Kings Plaza Shopping Center on September 17, 2018. The amount of restitution will be determined by the Court at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Daniel A. Nigro, Commissioner, New York City Fire Department (FDNY), announced the sentence.
In the early morning hours of September 17, 2018, Stephens was inside the parking garage before it was open to the public, attempting to get inside vehicles stored there by automobile dealerships. At approximately 8:15 a.m., Stephens entered a Mercedes Benz and set fire to its interior. The fire soon spread to vehicles throughout the parking garage, ultimately damaging 135 vehicles and injuring more than 25 individuals. Surveillance cameras captured Stephens setting fire to the Mercedes Benz, and later running from the parking garage, stopping to make an obscene gesture with his hand toward the camera.
“With the prison sentence he received today, the defendant will be punished for setting a fire that spread to engulf over 100 vehicles, injuring innocent people in its path and endangering the first responders who brought it under control at risk to their own lives,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to members of the New York City Police Department (NYPD) for their work on the case.
“The actions of the defendant caused massive amounts of damage to property and numerous injuries to first responders,” stated ATF Special Agent-in-Charge DeVito. “Thanks to the great work of the ATF, NYPD and FDNY Arson and Explosive Task Force, this individual was quickly apprehended and punished for his crime. I would also like to thank the United States Attorney’s Office for their work in prosecuting this case.”
“This crime senselessly endangered the lives of FDNY members and the public, and caused tremendous property damage,” stated FDNY Commissioner Nigro. “I commend our Fire Marshals, and their colleagues at the ATF, for their outstanding investigative work that led to the apprehension and sentencing of this dangerous arsonist.”
Assistant United States Attorney Temidayo Aganga-Williams is in charge of the prosecution.
The Defendant:
EVON STEPHENS
Age: 23
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-539 (ILG)
Bronx Man Charged in Manhattan Federal Court with 2014 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced the unsealing of an Indictment charging RASHAWN WHIDBEE, a/k/a “RaBoy,” with the September 27, 2014, attempted robbery and murder of Cody Dubose, 24, in New York, New York. WHIDBEE was arrested today and will be presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger. This case is assigned to United States District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Almost exactly five years ago, Cody Dubose was shot and killed during an attempted armed robbery in Manhattan. Now, thanks to the outstanding work of the NYPD, Rashawn Whidbee has been charged for his alleged participation in that heinous crime.”
NYPD Commissioner James P. O’Neill said: “The NYPD, along with our partners in the U.S. Attorney’s Office for the Southern District, is making New Yorkers safer by focusing our resources on the small percentage of criminals responsible for much of the city’s violent crime. We remain relentless in our efforts to identify, arrest, and prosecute anyone who involves himself in such behavior.”
According to the allegations in the Indictment unsealed in Manhattan federal court[1]:
On or about September 27, 2014, in the vicinity of East 112th Street and Madison Avenue in New York, New York, WHIDBEE and others participated in an attempted robbery of money belonging to a drug dealer, during which Cody Dubose was shot and killed.
* * *
WHIDBEE, 32, of the Bronx, New York, is charged with one count of attempted robbery, which carries a maximum sentence of 20 years in prison, one count of conspiracy to commit robbery, which carries a maximum sentence of 20 years in prison, and one count of using a firearm to commit murder, which carries a maximum sentence of death or life in prison, and a mandatory minimum term of five years in prison. The maximum and minimum 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.
Mr. Berman praised the outstanding investigative work of the NYPD.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacob Warren, Michael Longyear, and Christopher Clore are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Bridgeport Man Sentenced to More Than 7 Years in Federal Prison for Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TERRANCE CLARK, also known as “T-Time,” 24, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 90 months of imprisonment, followed by two years of supervised release, for firearm offenses.
According to court documents and statements made in court, on April 3, 2019, officers with the Bridgeport Police Department’s Tactical Narcotics Team arrested Clark after they found him in possession of crack cocaine, which was packaged for street level distribution, as well as a Glock 22 .40 caliber firearm loaded with a high capacity magazine.
Clark’s criminal history includes felony convictions in state court for possession of a firearm without a permit, stealing a firearm, and possession of narcotics.
Clark has been detained since his arrest on April 29, 2019. On June 11, he pleaded guilty to one count of possession of a firearm by a convicted felon, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. This case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
This prosecution 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 neighborhoods safer for everyone.
Bell County Man Sentenced for Methamphetamine TraffickingRead the Press Release
LONDON, Ky.- Charles R. Hubbard, 56, of Pineville, Kentucky, was sentenced to 94 months in federal prison Monday, for conspiring with others to distribute an aggravated amount of methamphetamine in Harlan County and Bell County, by U.S. District Judge Robert E. Wier.
According to Hubbard’s plea agreement, he participated in a methamphetamine distribution conspiracy from January 2018 through January 1, 2019. Hubbard’s plea agreement further states that he worked with Crystal Leach and others to procure methamphetamine in or around Tennessee for distribution throughout both Harlan County and Bell County. On January 24, 2018, Hubbard possessed over 50 grams of methamphetamine in Harlan County. On August 24, 2018, Hubbard possessed approximately 26 grams of methamphetamine in Bell County. As part of his plea, Hubbard forfeited $930.00 in drug proceeds.
Hubbard pleaded guilty to conspiracy to distribute 50 grams or more of a methamphetamine mixture on June 6.
Under federal law, Hubbard must serve 85 percent of his prison sentence. Hubbard will be under the supervision of the U.S. Probation Office for four years following his prison sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, James Robert Brown, Special Agent in Charge, FBI Louisville Field Division, and Commissioner Richard W. Sanders, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI London Office, KSP, Appalachian High Intensity Drug Trafficking Area (AHIDTA) Appalachian Narcotics Task Force, the Harlan County Sherriff’s Office, the Bell County Sherriff’s Office, and the Pineville Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.
— END —
Baton Rouge Man Pleads Guilty in Federal Court in Connection with Mexican-Based Drug Trafficking OrganizationRead the Press Release
United States Attorney Brandon J. Fremin announced that Jaime Gabriel Grimaldi Pena, a.k.a. “Eric” and “Gabriel,” age 44, of Baton Rouge, pled guilty before U.S. District Judge John W. deGravelles to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, and heroin. As a result of his guilty plea, Pena faces a significant term of imprisonment, fines, and forfeiture of the property involved or used in, or derived from, his illegal activity.
Pena was charged in connection with an extensive federal, state, and local investigation by the Middle District’s Organized Crime and Drug Enforcement Task Force (“OCDETF”) aimed at a Mexican-based Drug Trafficking Organization (“DTO”) responsible for the distribution of cocaine and heroin from Mexico to Baton Rouge, Louisiana and other locations throughout the United States.
According to admissions made as part of his guilty plea, Pena admitted that from at least July 2017 to March 2018, he was the Baton Rouge point of drug distribution for a DTO that was responsible for the distribution of cocaine and heroin from Mexico throughout the United States. Pena also worked as a mechanic for vehicles utilized by the DTO to transport illegal drugs by installing hidden compartments used to hide drugs and drug proceeds in transport vehicles and installing tracking devices on said vehicles.
U.S. Attorney Fremin stated, “This plea demonstrates our on-going commitment to bring justice to those who show blatant disregard for the health and safety of our people by peddling poison in our communities. I am grateful to our prosecutor and the FBI for their outstanding efforts in the investigation and prosecution of this defendant.”
“Opioid and heroin addiction does not discriminate because of race, religion, ethnicity, or socio economic status. Drug addiction is an epidemic that is plaguing the streets of Baton Rouge and across America,” stated Special Agent in Charge Bryan Vorndran. “Today justice was served to those who chose to traffic and distribute these illicit narcotics on our streets. The FBI will continue to enforce the laws and intervene when drug traffickers terrorize communities.”
This investigation is another effort by the OCDETF Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations, and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the FBI Baton Rouge Capitol Area Gang Task Force. This matter is being prosecuted by Assistant United States Attorney Jamie Flowers, Jr.
Ashburnham Man Charged with Federal Firearms OffensesRead the Press Release
BOSTON – An Ashburnham man was arrested yesterday in federal court in Worcester and charged with a federal firearms offense.
Terrick Bishoff, 38, was charged by criminal complaint with one count of unlawful possession or transfer of a machine gun. Bishoff was detained pending a probable cause and detention hearing scheduled for Sept. 27, 2019.
As alleged in charging documents, Bishoff sold a machine gun without a serial number to an individual in Fitchburg on May 15, 2019. In return, the individual paid Bishoff $2,500.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Edward Lee made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office is prosecuting the case.
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.
Armed Meth Dealer Sentenced to More Than 20 YearsRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday has sentenced Jonathan Budowski (48, Brooksville), a/k/a “Hard Times,” to 20 years and 8 months in federal prison for his role in selling multiple kilograms of methamphetamine as part of a drug trafficking conspiracy, while maintaining an arsenal of firearms and ammunition to protect his drug stash and proceeds. Budowski was also ordered to forfeit five firearms, including an assault rifle, and 196 rounds of ammunition.
Budowski had pleaded guilty on May 22, 2019.
According to court documents, Budowski sold methamphetamine in multi-ounce quantities to a wide range of lower-level drug suppliers for several years, usually while armed. In September 2017, Budowski faced multiple state charges unrelated to this case, including felony domestic battery. After he failed to appear in state court as required, law enforcement officers secured a warrant for his arrest and a tipster alerted law enforcement that Budowski was hiding out in a motel. Law enforcement observed Budowski using his vehicle and his motel room in a manner consistent with drug dealing and ultimately had to use tear gas to draw Budowski out of the motel room to arrest him. Upon searching the motel room, officers found three loaded firearms, more than 100 rounds of ammunition, a distribution quantity of methamphetamine, and narcotics packaging materials. Budowski later stated, in a recorded call, that he had strongly considered engaging the officers in a shootout rather than submit to arrest. When officers searched Budowski’s vehicle, they recovered three more loaded firearms, including an assault rifle, as well as ammunition and drug paraphernalia.
Budowski’s criminal record includes 41 prior convictions.
This case was jointly investigated by the Drug Enforcement Administration, the Pasco Sheriff’s Office, and the Sumter County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Michael M. Gordon.
Amsterdam Man Sentenced to 25 Months for Passport Fraud and Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK – Marvin Danilo Aquino a/k/a Marvin Padilla, age 23, of Amsterdam, New York, was sentenced today to serve 25 months in prison for making a false statement in a passport application and aggravated identity theft.
The announcement was made by United States Attorney Grant C. Jaquith and Timothy Dumas, Special Agent in Charge of the New York Field Office of the United States Department of State’s Diplomatic Security Service.
As part of his guilty plea on April 19, 2019, Aquino admitted that in October 2017, he visited a U.S. Post Office in Gloversville, New York, and filled out an application for a U.S. passport, which he then submitted with a picture of himself. On his application, however, Aquino listed the name, social security number, birthdate, and other identifying information of another person who had not authorized Aquino to file the application. In support of the application, Aquino also submitted numerous documents containing the same third party’s identifying information.
This case was investigated by the U.S. Department of State’s Diplomatic Security Service with assistance from the Social Security Administration Office of the Inspector General. It was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
Akron man previously convicted of domestic violence indicted for allegedly having methamphetamine and a gunRead the Press Release
An Akron man was indicted on firearms and methamphetamine charges.
Tionte L. Blanchard, 23, was indicted on one count of possession with intent to distribute methamphetamine, one count of possession of a firearm with a domestic violence conviction and one count of possession of a firearm in furtherance of drug trafficking.
Blanchard possessed at least 50 grams of methamphetamine on July 12, as well as a Glock pistol. Blanchard was prohibited from having the pistol because of a previous misdemeanor conviction for domestic violence in 2017, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The FBI and Akron Police Department investigated this case. Assistant U.S. Attorney Christopher Joyce is prosecuting the case.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
32-Year-Old North Carolina Resident Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
On September 24, 2019, Willie Dishon Matthew Obadiah, 32, of Charlotte, North Carolina, pled guilty to sex trafficking of a minor, before U.S. District Judge Beth Bloom in Miami.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
In February 2019, Obadiah met the minor victim through Facebook, and communicated with her via Facebook Messenger and text messages. At the time, both Obadiah and the minor victim lived in North Carolina, where he was already prostituting women. Through his communications with the victim, Obadiah learned that she was a minor. In fact, he asked her to send a photograph of her identification card to him. When he saw her age on the photograph, he sent her a message stating that he wished she had a “fake id” instead. Obadiah continued to communicate with the minor victim online, and learned that she was a runaway. While she was on the run, Obadiah agreed to pick up the minor victim. Shortly thereafter, he began prostituting the minor victim at various hotels, initially in North Carolina and then in Miami. Obadiah told the minor victim how much to charge for sex acts, how to deal with customers or “johns,” and what rules to abide by. Obadiah posted advertisements online for the minor victim, to which customers responded. Obadiah drove the minor victim to South Florida after a few days, where he prostituted her at hotels in Miami. The minor victim ran away from Obadiah, who returned to North Carolina, where he continued to prostitute women. He was arrested on April 19, 2019 by the Charlotte-Mecklenberg Police Department.
Obadiah is scheduled to be sentenced on December 5, 2019, at 9:00 a.m. in Miami, before Judge Bloom (Case No. 19-cr-20321). He faces a mandatory minimum term of imprisonment of ten years and a statutory sentence of up to life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. 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 www.projectsafechildhood.gov.
The FBI’s Child Exploitation and Human Trafficking Task Force investigated this case in partnership with the Federal South Florida Human Trafficking Task Force, which includes the Miami-Dade Police Department’s Human Trafficking Squad, International Rescue Committee, and Florida Department of Children and Families (DCF). FBI Charlotte, Charlotte-Mecklenberg Police Department, Polk County Sheriff’s Office, and the U.S. Attorney’s Office for the Western District of North Carolina assisted with the case.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation Task Force, MDPD, International Rescue Committee, DCF, and all those who assisted in this matter. Assistant U.S. Attorney Vanessa Johannes prosecuted this case.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
24 September 2019
“Golden Goose” of the Mexican Mafia Sentenced to 30 Years for Role in Drug Distribution Conspiracy and Attempted Robbery Ordered by the Mexican MafiaRead the Press Release
NEWS RELEASE SUMMARY – September 24, 2019
SAN DIEGO – Fady Esho, was sentenced yesterday in federal court to 30 years in prison for his aggravated role in a drug distribution conspiracy as well as his participation in an attempted armed robbery ordered by the Mexican Mafia.
The charges stem from an investigation by the FBI-led Violent Crimes Task Force, Gang Group (VCTF-GG) into drug trafficking, firearms and violent crimes being committed by certain gang members and their associates in San Diego.
“Taking this Mexican Mafia member off the street for three decades is a big win for public safety,” said U.S. Attorney Robert Brewer. “This significant sentence will prevent defendant, who was a violent firearms and drug trafficker in addition to being a Mexican mafia member, from further menacing our community.” The U.S. Attorney praised prosecutors Todd Robinson and Kareem Salem as well as the FBI and the Violent Crimes Task force-Gang Group for their diligence in prosecuting this important case.
"The 30-year sentence handed down today sends a clear message to anyone that is involved with the criminal activities of violent gangs and the Mexican Mafia: Expect to be investigated by the FBI Violent Crimes Task Force-Gang Group (VCTF-GG) and aggressively prosecuted,” said FBI SAC Scott Brunner. “Because of this long-term investigation, crimes of violence were prevented and a dangerous criminal enterprise trafficking in drugs and firearms throughout Southern California was decimated. Our community is safer with these gang members and associates behind bars.”
The defendant pleaded guilty on May 9, 2019 (18cr3424-LAB) to possessing methamphetamine with the intent to distribute; being a felon in possession of a firearm; attempting to commit a Hobbs Act Robbery; and possession of a firearm in furtherance of a crime of violence. That same day, he also pleaded guilty (18cr4217-LAB) to one count of conspiring with others to distribute over 50 grams of methamphetamine.
According to the prosecutor, Fady Esho was nicknamed the “Golden Goose” by several individuals associated with the Mexican Mafia based on his capability to distribute firearms and narcotics as well as collect money at their direction.
On June 13, 2018 agents intercepted communications of the defendant and two of his co-defendants who discussed their intention to commit an armed robbery and assault on behalf of the Mexican Mafia. In response, San Diego Police Department Gang Suppression Officers stopped the vehicle Fady Esho was driving as his drove to their intended victim. Ultimately, officers recovered four firearms, 56 rounds of ammunition and zip ties, which officers believe were for restraining the intended victim.
In addition to his role in the attempted robbery, the defendant was sentenced for his role, organization, and distribution of multiple pounds of methamphetamine.
Intercepted communications also revealed that the defendant was engaged in the distribution of methamphetamine to several customers, including an individual who on two occasions flew from Florida to purchase pounds of methamphetamine from the defendant. But for the quick response from members of the VCTF-GG, pounds of methamphetamine, which were packaged and shipped via the United States Postal Service, would have found its way to drug users in the Florida area.
SUMMARY OF CHARGES
Possession with the Intent to Distribute Methamphetamine, in violation of Title 21, U.S.C. Section 841 (a)(1)
Maximum Penalty: Forty years in prison; Five year mandatory minimumFelon in Possession of a Firearm, in violation of Title 18, U.S.C. Section 922(g)
Maximum Penalty: Ten years in prisonAttempted Hobbs Act Robbery, in violation of Title 18, U.S.C. Section 1951
Maximum Penalty: Twenty years in prisonPossession of firearm in furtherance of a crime of violence, in violation of Title 18, U.S.C. Section 924(c)
Maximum Penalty: Five years mandatory minimum in prisonConspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 841 (a)(1) and 846
Maximum Penalty: Up to life in prison; Ten year mandatory minimumDEFENDANT Case Numbers: 18CR3424-LAB & 18CR4217-LAB
Fady Esho Age: 37 San Diego
INVESTIGATING AGENCIES
Violent Crimes Gang Task Force
Task Force agencies include:
FBI, ATF, DEA, BOP, USPIS, California Department of Corrections and Rehabilitation, San Diego District Attorney's Office, San Diego Police Department, San Diego Sheriff's Department, National City Police Department, Chula Vista Police Department, La Mesa Police Department, El Cajon Police Department and Federal Bureau of Prisons- Joint Intelligence Sharing Initiative
Wood Man Sentenced on Meth Trafficking and Felony Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Wood, South Dakota, man convicted of Possession with Intent to Distribute Methamphetamine and Prohibited Person in Possession of a Firearm was sentenced on September 23, 2019, by U.S. District Judge Roberto A. Lange.
David Blue Bird, age 25, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Blue Bird was indicted by superseding indictment on March 12, 2019. He pled guilty on July 10, 2019.
The conviction stemmed from an incident that occurred on or about the 8th day of September 2018, through the 26th day of January 2019, Blue Bird did knowingly and intentionally possess with intent to distribute 50 grams or more methamphetamine and, being an unlawful user of methamphetamine, did knowingly receive and possess three firearms.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Blue Bird was immediately turned over to the custody of the U.S. Marshals Service.
Watertown Man Pleads Guilty to Distribution, Receipt, and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Joseph Williams, 30, of Watertown, New York, pled guilty today to distributing, receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith, James N. Hendricks, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI) and New York State Police Superintendent Keith Corlett.
In entering his guilty plea today in United States District Court, Williams, admitted that he used the Kik Messenger application to distribute and receive child pornography from other Kik users from January 2016 through June 2016. Williams used his iPhone to trade images of child pornography via the internet. Execution of search warrants on Williams’ desktop and laptop computers revealed that he possessed 4,875 images and 2,052 video files depicting minors engaged in sexually explicit conduct. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.
Senior United States District Judge Thomas J. McAvoy will sentence Williams on January 2, 2020. He faces at least 5 years and up to 20 years in prison for the distribution and receipt charges and up to 20 years in prison on the possession charge, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. Williams will also be required to register as a sex offender.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case is being 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), and is designed to marshal 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.
Veterans Affairs Official Pleads Guilty to Six Corruption-Related Counts Arising from Scheme to Take Bribes to Rig Federal ContractsRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announces that former U.S. Department of Veterans Affairs official Dwane Nevins, age 55, pleaded guilty last week to an indictment charging him with corruption related crimes, arising from a scheme to take payments from an undercover FBI agent. Earlier this week, on September 17, 2019, his co-conspirator Anthony Bueno pleaded guilty to one count of conspiring with Nevins to make those payments. Another businessman involved with the scheme, Robert Revis, pleaded guilty in April 2019.
As described in the indictment, Dwane Nevins — a small business specialist at the VA’s Network Contracting Office in Colorado — agreed to take bribes offered by Revis, Bueno, and an undercover FBI agent to help them manipulate the process for bidding on federal contracts with the VA. Revis and Bueno, working with Nevins, agreed to submit fraudulent bids from service-disabled-veteran-owned small businesses under contract with their consulting company so that federal contracts would be set aside for only those companies. As Bueno allegedly explained, they would then “own all the dogs on the track.” Nevins, Bueno and Revis worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to their consulting company, or by asking their consulting company’s clients to pay Nevins for sham training classes related to federal contracting.
The indictment also alleges that, after complaining about not being paid by Revis and Bueno for his participation in the scheme, Nevins used his official position at the VA to extort approximately $10,000 from an undercover FBI agent, telling the agent that “the train don’t go without me. You know what I mean? I’m the engine. I’m the caboose. I’m the engine room.” Nevins also allegedly told the undercover FBI agent “this is a business and businessmen need to get paid . . . . so I can have my Christmas, you know what I’m saying?”
The indictment alleges that the conspirators attempted to rig the process related to two contracts, both of which related to medical equipment and not to the construction of any VA facilities. The first contract related to the procurement of LC bead particle embolization products by a VA hospital in Salt Lake City and the second related to the procurement of durable medical equipment for VA facilities located throughout the region.
“Corruption in the government procurement process has consequences,” said U.S. Attorney Jason Dunn. “Here the defendant participated in manipulating the bid process so that a specific company could prevail. That is wrong, it is criminal, and there will be swift consequences for anyone that engages in such behavior.”
“Dwane Nevins’ scheme attempted to take advantage of the system serving our veterans and hurt small businesses,” said FBI Denver Division Special Agent in Charge Dean Phillips. “The FBI thanks the multi-agency investigative team and the USAO for holding Nevins and his cohorts accountable for their criminal activities.”
Gregg Hirstein, Special Agent in Charge, VA Office of Inspector General, said, “This case should serve as a deterrent to any government employees tempted to unlawfully profit from their position of public trust. The VA Office of Inspector General will always vigorously pursue allegations of corruption by VA officials because our nations veterans deserve to be served by a workforce of the highest integrity.”
“Taking bribes is an egregious form of corruption that violates the public’s trust and deprives eligible businesses opportunities to compete fairly for Federal contracting opportunities,” said SBA OIG’s Western Region Special Agent-in-Charge Weston King. “SBA OIG and its law enforcement partners will aggressively pursue individuals that seek personal gain in their service as public officials. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication throughout this investigation.”
Dwane Nevins is scheduled to be sentenced on December 20, 2019. He faces a maximum of 65 years’ imprisonment. Anthony Bueno is scheduled to be sentenced on January 7, 2020. Robert Revis is scheduled to be sentenced on January 24, 2020.
The case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of Inspector General, and the U.S. Small Business Administration Office of Inspector General.
The defendant is being prosecuted by Assistant United States Attorneys Bryan D. Fields and Hetal J. Doshi.
Utah Tax Return Preparers Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Alma Barlow and Denver Barlow, formerly of Hildale, Utah, were sentenced in federal court today to 24 months in prison each for conspiracy to file false claims, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to court documents, from 2009 to 2014, the defendants held themselves out to the public as legitimate tax return preparers, though they filed over 700 false tax returns for themselves and for hundreds of unknowing clients, ultimately claiming over $9.7 million in false refunds from the Internal Revenue Service (IRS).
In furtherance of their conspiracy, the defendants added false entries to tax returns to trigger the Earned Income Tax Credit or added false figures for federal income tax withholdings, Form 1099-OID income tax withholdings, or Schedule C business expenses in order to fraudulently increase the amount of the claimed refunds.
In addition to the term of imprisonment, U.S. District Court Judge Ted Stewart ordered the defendants to each serve three years of supervised release, and to pay over $5.3 million in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Tyler Murray and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.
United States Attorney’s Office Hosts Roundtable on Racial and National Origin Discrimination in HousingRead the Press Release
The United States Attorney’s Office for the Eastern District of Wisconsin and the Justice Department’s Civil Rights Division hosted a roundtable September 23rd, 2019 for community organizations to discuss the problem of racial and national origin discrimination in housing, U.S. Attorney Matthew D. Krueger announced.
The event included local legal aid offices, fair housing organizations, civil rights organizations, faith-based organizations, and other community groups. Those organizations were invited because they often work with populations likely to become victims of housing discrimination. United States Attorney Krueger stated: “Federal law provides individuals with the right to obtain access to housing and lending free from discrimination. Our office is dedicated to uncovering violations of those rights and vigorously enforcing the law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. The Department of Justice may bring lawsuits where there is reason to believe that a person or entity is engaged in a “pattern or practice” of discrimination or where a denial of rights to a group of persons raises an issue of general public importance. The Department of Justice also brings cases where a housing discrimination complaint has been investigated by the Department of Housing and Urban Development, HUD has issued a charge of discrimination, and one of the parties to the case has “elected” to go to federal court. In FHA cases, the Department can obtain injunctive relief, including affirmative requirements for training and policy changes, monetary damages and, in pattern or practice cases, civil penalties.
The U.S. Attorney’s Office and the Civil Rights Division held the roundtable to raise awareness in the Eastern District of Wisconsin about options to help victims experiencing discrimination in housing. Attendees were encouraged to be alert and encourage that victims to report housing discrimination to the Civil Rights Division and the United States Attorney’s Office.
The Justice Department encourages anyone who has experienced racial or national origin discrimination in housing, or knows someone who has, to contact the Division by calling 1-800-896-7743 or https://www.justice.gov/crt/housing-and-civil-enforcement-section-overview.
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at 414-297-1700 or visiting https://www.justice.gov/usao-edwi/contact.
Two Vernon Residents Charged with Firearm Offenses Related to Stafford Pawn Shop BurglaryRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DAMIEN GARCIA, 32, and LAWRENCE McEWEN, 37, both of Vernon, have been charged by federal criminal complaint with firearm offenses related to the theft of guns from a Stafford pawn shop on September 14.
Garcia and McEwen were originally arrested on state charges on September 17. Garcia, who was released on bond after his state arrest, was arrested on the federal charges yesterday. He is detained pending a detention hearing that is scheduled for September 26. McEwen has been detained since his state arrest.
As alleged in the criminal complaint, on September 15, 2019, the Connecticut State Police received a report that the Simon Says Pawn Shop, a Federal Firearms Licensee in Stafford, had been burglarized the previous evening and that several firearms had been stolen. Investigators subsequently determined that six handguns were missing from the store. On September 17, Vernon Police developed information that Garcia was involved in the burglary and was in possession of a firearm. That evening, after officers approached Garcia and McEwen on West Main Street in Vernon, Garcia and McEwen attempted to flee before. After both were apprehended, officers recovered a .40 caliber Smith and Wesson pistol that McEwen discarded as he ran away. The firearm was one of the six stolen from the Simon Says Pawn Shop on September 14.
The other five missing handguns have not been recovered.
It is alleged that both Garcia and McEwen have previously been convicted of multiple felony offenses.
The complaint charges Garcia and McEwen with possession of a firearm by a convicted felon, and possession of a stolen firearm. Both offenses carry a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut State Police, Vernon Police Department and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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 neighborhoods safer for everyone.
Two Men Sentenced on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Greeley, Colorado, man and a Box Elder, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance were sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jeffery William Travis, age 55, was sentenced on September 9, 2019, to 20 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Marvin Glen McIlravy, age 65, was also sentenced on September 9, 2019, to 12 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Travis and McIlravy were indicted by a federal grand jury in March 2018. The conviction stems from Travis, McIlravy, and several other people distributing multiple pounds of methamphetamine in western South Dakota between 2016 and 2018. Travis obtained the methamphetamine from Colorado and transported it to South Dakota, where multiple co-conspirators further distributed the methamphetamine. McIlravy obtained the methamphetamine in South Dakota and distributed it primarily in the Rapid City area. Other co-conspirators have been sentenced while additional co-conspirators’ cases are still pending.
This case was investigated by federal, state, and local agencies, including the Drug Enforcement Administration and the Unified Narcotics Enforcement Team, which is a local drug task force comprised of various agencies, including the South Dakota Division of Criminal Investigation, the Pennington County Sheriff’s Office, and the Rapid City Police Department. The case was prosecuted by Gina S. Nelson, Assistant U.S. Attorney.
Travis and McIlravy were immediately turned over to the custody of the U.S. Marshals Service.
Two Defendants Convicted in Major Drug ConspiracyRead the Press Release
Abingdon, VIRGINIA – Two members of a drug distribution organization that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia were recently found guilty following a five-day jury trial in federal court on drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Roy Lee Dykes, 51, of Watkinsville, Ga., formerly of Big Stone Gap, Va., was convicted of one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, in addition to cocaine, heroin, alprazolam, and oxycodone. Dykes was also convicted of 17 counts of distributing and possessing with intent to distribute controlled substances on a number of specific dates. At sentencing, Dykes faces a mandatory minimum sentence of imprisonment of 10 years and a maximum statutory penalty of up to life in prison and/or a fine of up to $10 million.
Leila Varetta “Rita” Hector-Dykes, 57, of Watkinsville, Ga., was also convicted of one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, in addition to cocaine, heroin, alprazolam, and oxycodone. Hector-Dykes was also convicted of one count of distributing and possessing with intent to distribute controlled substances. At sentencing, Hector-Dykes faces a mandatory minimum sentence of imprisonment of 10 years and a maximum statutory penalty of up to life in prison and/or a fine of up to $10 million.
“Methamphetamine trafficking is currently the greatest threat to public safety in far Southwest Virginia,” U.S. Attorney Cullen stated today. “We will continue to collaborate with our federal, state, and local partners to identify individuals responsible for distributing large quantities of this deadly substance and put them in federal prison.”
“This organization trafficked large amounts of crystal ice into Southwest Virginia. We appreciate the partnership with the U.S. Attorney’s Office and federal, state, and local law enforcement to crack down on those who transport dangerous drugs into the Commonwealth for distribution,” Virginia Attorney General Herring said today. “Reducing the availability of crystal methamphetamine and other drugs in Southwest Virginia is a high priority for my office. We appreciate the hard work and dedication of our law enforcement partners and will continue to aggressively prosecute those who endanger the lives of our citizens.”
In all, 11 individuals were charged as part of this drug trafficking conspiracy. All 11 defendants have now been convicted. Dykes and Hector-Dykes are scheduled for sentencing on December 19, 2019.
According to evidence presented at trial, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Georgia, into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 11 ounces of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone, with an estimated street value of $28,000. Currency totaling approximately $14,000 was also seized from the defendants on that day.
The investigation stemmed from another drug trafficking conspiracy arising out of Lee County, Virginia, involving seven defendants, all of whom have been convicted and sentenced. Another four defendants, including Dykes and Hector-Dykes’ sources of supply, were also identified and prosecuted during the course of these investigations. In total, these investigations have led to the successful prosecution of 22 defendants and removed a conservative estimate of 3.5 pounds of crystal ice methamphetamine from the supply chain in Southwest Virginia.
The investigation of this case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Numerous agencies assisted with search warrant executions and arrests on March 1, 2018, to include the Drug Enforcement Administration, Big Stone Gap Police Department, Lee, Wise, and Scott County Sheriff’s Departments, City of Norton Police Department, and the U.S. Marshals. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Kari Munro prosecuted this case at trial for the United States.
Two Defendants Charged in Scheme to Sell Fraudulently Misbranded Beef ProductsRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Howard Mora and Alan Buxbaum with conspiring to commit wire fraud in connection with a scheme to use counterfeit United States Department of Agriculture (USDA) stamps to misbrand USDA “Choice” beef products as higher quality USDA “Prime” and sell those products at inflated prices. The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Bethanne M. Dinkins, Special Agent-in-Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), announced the charge.
Between September 2011 and October 2014, Mora and Buxbaum were co-owners of A. Stein Meat Products, Inc., a wholesale meat processing and distribution business located in Brooklyn. As alleged in the indictment, the defendants purchased beef that had been graded “Choice” quality by graders employed by the USDA Agricultural Marketing Service and directed their employees to carve off the “Choice” markings and re-stamp them as “Prime,” using counterfeit stamps. The meat was then sold at inflated prices to customers in the New York City metropolitan area.
“Customers and consumers are entitled to get what they pay for, especially when the product is food on their tables,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will remain vigilant in enforcing laws that ensure the grade and quality of food products.”
“The integrity of USDA’s food processing systems and the security of the nation’s food supply is of the utmost importance to the Office of Inspector General, and we will continue to dedicate resources to the investigation of matters where it is called into question.” Stated USDA-OIG Special Agent-in-Charge Dinkins.
The charge in the indictment is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan Harris and Turner Buford are in charge of the prosecution.
The Defendants:
HOWARD MORA
Age: 67
Westbury, New YorkALAN BUXBAUM
Age: 65
Monroe, New JerseyE.D.N.Y. Docket No. 19-CR-425 (KAM)
Twice Deported Felon SentencedRead the Press Release
FORT WAYNE – Joel Sanchez-Lopez, age 33, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly Brady for illegal reentry of a removed alien, announced U.S. Attorney Kirsch.
Joel Sanchez-Lopez was sentenced to 15 months in prison and will be deported upon completion of his federal sentence
According to documents in this case, Mr. Sanchez-Lopez is a citizen of Mexico. In 2008, Sanchez-Lopez was charged and sentenced for felony domestic battery. In 2009, Sanchez-Lopez was found operating a vehicle while intoxicated at 3 times the legal limit (.24%) while on probation supervision for the felony domestic battery offense. He was deported back to Mexico in 2010. However, Sanchez-Lopez returned to the United States in 2014 without legal authorization, and in violation of the 2010 deportation order. In 2017, he was charged with another domestic battery offense which was later dismissed, and he was again deported to Mexico in November 2017. Sometime in July 2018, Sanchez-Lopez returned to the U.S. without legal authorization and in violation of the 2010 deportation order. He was found to be illegally present in the U.S. after he was charged in December of 2018 with operating a vehicle while intoxicated after he got into a verbal altercation with his wife, drove off at a high rate of speed and crashed into a ditch. His blood alcohol was almost 3 times the legal limit (.238%) for the State of Indiana.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement Agency. The case was handled by Assistant United States Attorney Sarah Nokes.
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Tulsa Man Pleads Guilty to Bankruptcy FraudRead the Press Release
A Tulsa resident pleaded guilty today to making a false statement in a bankruptcy proceeding, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores.
According to the information and written plea agreement filed in the case, Michael J. Fletcher, of Tulsa, filed a bankruptcy petition in August of 2011 in which he stated that he had no legal or equitable interest in any real property. In November 2011, the Department of Justice filed a complaint objecting to the discharge of Fletcher’s federal income tax debts on the grounds that Fletcher had concealed his interest in real property located on 110th Street in Tulsa, Oklahoma. During the trial in that matter in October 2014, Fletcher testified that his parents owned the house on 110th Street and that the down payment for the purchase was funded by a loan from his daughters to his father. In pleading guilty Fletcher admitted that he was the source of the funds used for the down payment, and that he lied during his bankruptcy court testimony when he denied this fact
“By effectively combating white collar crime and prosecuting individuals like Mr. Fletcher, we can protect the U.S. Bankruptcy Court and creditors from fraud,” said U.S. Attorney Trent Shores. “Moreover, I hope this prosecution signals a warning to others who would seek to commit fraud. I know that deterrence requires enforcement. That’s why we will continue to uphold our oath and enforce the laws of the United States. From white collar criminals to violent criminals, they can expect us to diligently pursue justice.”
United States District Court Judge John Dowdell scheduled Fletcher’s sentencing for December 23, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Victor Régal are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tulsa Man Pleads Guilty to Bankruptcy FraudRead the Press Release
A Tulsa resident pleaded guilty today to making a false statement in a bankruptcy proceeding, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to the information and written plea agreement filed in the case, Michael J. Fletcher, of Tulsa, Oklahoma, filed a bankruptcy petition in August of 2011 in which he stated that he had no legal or equitable interest in any real property. In November 2011, the Department of Justice filed a complaint objecting to the discharge of Fletcher’s federal income tax debts on the grounds that Fletcher had concealed his interest in real property located on 110th Street in Tulsa, Oklahoma. During the trial in that matter in October 2014, Fletcher testified that his parents owned the house on 110th Street and that the down payment for the purchase was funded by a loan from his daughters to his father. In pleading guilty Fletcher admitted that he was the source of the funds used for the down payment, and that he lied during his bankruptcy court testimony when he denied this fact.
United States District Court Judge John Dowdell scheduled Fletcher’s sentencing for Dec. 23, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Victor Regal are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Three People Indicted on Attempted Carjacking in which James Anthony Sapone was Shot and KilledRead the Press Release
St. Louis, MO – Demario Hunter, 33, of East St. Louis, IL; Keombra James, 25, of East St. Louis, IL; and Surrayah Hill, 21, of East St. Louis, IL were indicted last week by a federal grand jury for attempted carjacking in the 3400 block of Iowa Street in St. Louis, MO during which James Anthony Sapone was shot and killed. The three defendants were also indicted on weapon charges relating to the March 18, 2019, incident. The indictment was unsealed September 23, 2019, once all defendants were arrested.
If convicted, the charge of attempted carjacking resulting in death carries a maximum penalty of life imprisonment or the imposition of death. The charge of murder in the course of a crime of violence also carries a maximum penalty of life imprisonment or the imposition of death. The charge of possession and discharge of a firearm in furtherance of a crime of violence carries a minimum penalty of ten years imprisonment. All three defendants were charged with each of those crimes. Additionally, Hunter faces a charge of being a felon in possession of ammunition, a charge that carries a maximum penalty of ten years imprisonment. All charges carry a potential fine of $250,000 per count.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
“Gun violence and carjackings remain top priorities of this office. We continue to work with our federal, state, and local law enforcement partners to prevent these senseless acts of violence but, when they occur, we are committed to holding each and every perpetrator accountable to the fullest extent of the law,” said Jeffrey B. Jensen, United States Attorney following the indictment’s unsealing.
This case was investigated by the FBI and the St. Louis Metropolitan Police Department. Assistance was provided by St. Louis County Police and Illinois Department of Corrections Parole.
St. Thomas Student Charged for Hoax Bomb Threats Against the University's St. Paul CampusRead the Press Release
United States Attorney Erica H. MacDonald announced a federal criminal complaint against RAY GHANSHAM PERSAUD, 20, for calling in bomb threats to the University of St. Thomas in St. Paul, Minnesota.[1] PERSAUD was arrested this morning and will make his initial appearance today at 2:00 pm before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the criminal complaint and law enforcement affidavit, on April 17, 2019, PERSAUD called the University of St. Thomas in St. Paul, Minnesota and said there was a bomb on campus, specifically mentioning McNeely Hall. PERSAUD called the University of St. Thomas three times that morning making bomb threats. As a result, the University evacuated and closed its entire St. Paul campus, including a child care center located in one of the buildings. The FBI determined that the calls came from a Voice Over Internet Protocol, or “VOIP,” telephone number serviced by TextMe, an app that allows users to have multiple telephone numbers. On August 20, 2019, PERSAUD again called the University of St. Thomas via TextMe and said there was a bomb in the John Roach Center, a classroom building on the St. Paul campus, which was subsequently evacuated and closed for the day. On September 17, 2019, PERSAUD called the University of St. Thomas again, through a different VOIP app, and stated that there were bombs in the O’Shaughnessy Science Center, the John Roach Center, the Anderson Student Center, and the Facilities Design Center. All four buildings were subsequently evacuated. Investigators were able to trace the origin of the September 17, 2019, calls to PERSAUD’s home address in Blaine, Minnesota.
This case is the result of an investigation conducted by the FBI and the Saint Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorney John Docherty.
Defendant Information:
RAY GHANSHAM PERSAUD, 20
Blaine, Minn.
Charges:
- Using an instrumentality of interstate commerce to make a threat to kill, injure, or intimidate any individual, and to damage or destroy any building, by means of fire and explosive, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
South Bend, Indiana Man Sentenced to 10 Years in PrisonRead the Press Release
SOUTH BEND - Mark Peppers, age 35, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possession of child pornography, announced U.S. Attorney Kirsch.
Mr. Peppers was sentenced to 120 months in prison, 10 years of supervised release and ordered to pay restitution in the amount of $26,250.
According to documents in this case, in August of 2017, Mr. Peppers was in possession of a micro SD card that contained videos of a naked 4-year old female child which displayed close up images of the child’s private parts. In a plea agreement, Mr. Peppers admitted that the images were in fact child pornography.
This case was investigated by the Federal Bureau of Investigations with the assistance of the South Bend Police Department. The case was handled by Assistant U.S. Attorney John Maciejczyk.
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Sioux City Man Who Fled from Police with Stolen Gun, Sentenced to Federal PrisonRead the Press Release
A Sioux City man was sentenced September 20, 2019, to more than 9 years in federal prison.
On April 25, 2019, Brandon Esquibel, age 26, from Sioux City, Iowa, pled guilty to felon in possession of a firearm. Esquibel was previously convicted of a felony controlled substance violation in 2012 and possession of a controlled substance 3rd or subsequent offense in 2017, both in the Iowa District Court.
Evidence at the detention, change of plea, and sentencing hearings revealed that on October 30, 2018, defendant fled from law enforcement, grabbed a gun from his waistband and discarded it as he fled. During the foot pursuit, defendant ran into an officer, grabbing the handrails of the officer’s rifle. Esquibel continued to flee from officers and was subsequently tased, and taken into custody. Law enforcement later determined that the firearm defendant possessed – a loaded pistol -- had been reported as stolen.
Esquibel has a substantial criminal history, including an assault conviction and involvement in an assault committed while he was in custody. In addition, Esquibel has a history of fleeing from law enforcement, and violating previous grants of release from custody.
Esquibel was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Esquibel was sentenced to 110 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Esquibel is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4005.
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