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19 September 2019
Coushatta man sentenced to 10 years in federal prison for accessing a “Dark Web” site with intent to view child pornographyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Paul Andrew Talley, 51, of Coushatta, Louisiana, was sentenced Wednesday by Chief U.S. District Judge S. Maurice Hicks Jr. to 10 years in federal prison followed by five years of supervised release for accessing the internet with intent to view child pornography. Talley is also required to register as a sex offender.
According to documents presented at Talley’s guilty plea hearing on April 11, 2019, law enforcement agents identified Talley’s computer as accessing a “Dark Web” child porn site and being a regular user. Forensic analysis on the computer equipment seized from Talley’s home on August 20, 2015, revealed more than 2,300 images of child pornography. The images found on the computer matched the images from the “Dark Web” site.
The Dark Web, also called the DarkNet, is a collection of underground marketplaces where websites selling illegal content design their sites to hide identities of users and evade law enforcement detection. For more information, visit www.fbi.gov/news/stories/a-primer-on-darknet-marketplaces.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
The FBI conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Convicted Sex Offender Sentenced to 25 Years in Prison, Lifetime Supervised Release for Producing Child Pornography on SnapchatRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of BARTON GEORGE SCOTT, 36, a registered sex offender, to 25 years in prison for producing child pornography. SCOTT, who pleaded guilty on February 6, 2019, was sentenced today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
United States Attorney Erica MacDonald said, “Mr. Scott is a convicted sex offender and a sextortionist. He terrorized his victims by hacking into their Snapchat accounts to access highly sensitive and private pictures. He then taunted his victims and threatened to disseminate their private pictures if they didn’t comply with his demands. Today’s sentence sends a clear message that sextortion is a serious crime that will be met with serious consequences.”
“A case like this really underscores the FBI’s proactive approach to identifying people who exploit children with pornography,” said Jill Sanborn, Special Agent in Charge of the FBI’s Minneapolis Division. “Our agents are vigilant and continue their active role to ensure that children are protected and that sexual predators are removed from children’s lives.”
According to the defendant’s guilty plea and documents filed in court, between April 30 and August 8, 2017, SCOTT gained unauthorized access to the Snapchat accounts of dozens of victims, including minors between 14-16 years of age. In several cases, SCOTT used threats and extortionate tactics in an attempt to obtain sexually explicit images and videos from the victims.
Based on the evidence obtained in this case, authorities believe there may be additional victims of this alleged conduct. Anyone with information about this matter is encouraged to call the FBI at (763) 569-8000. Callers may remain anonymous.
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. Attorney’s Offices and 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.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, the New Richmond Police Department, the Anne Arundel County Police Department, the Carver County Sheriff’s Office, the St. Croix County Sheriff’s Office, the Stillwater Police Department, the Spring Green Police Department, and the Washington County Sheriff’s Office.
Assistant U.S. Attorney Katharine T. Buzicky prosecuted the case.
Defendant Information:
BARTON GEORGE SCOTT, 36
City of residence unknown
Convicted:
- Production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
Sentenced:
- 300 months in prison
- Lifetime of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Compounding Pharmacy, Two of Its Executives, and Private Equity Firm Agree to Pay $21.36 Million to Resolve False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that compounding pharmacy Diabetic Care Rx LLC, or Patient Care America (PCA), PCA’s Chief Executive Officer Patrick Smith, PCA’s former Vice President of Operations Matthew Smith, and private equity firm Riordan, Lewis & Haden Inc. (RLH) have agreed to resolve a lawsuit alleging that they violated the False Claims Act through their involvement in a kickback scheme to generate referrals of prescriptions for expensive pain creams, scar creams, and vitamins, regardless of patient need, which were reimbursed by TRICARE, the federal health care program for military members and their families. PCA and RLH have agreed to pay $21,050,000, Patrick Smith has agreed to pay at least $300,000, and Matthew Smith has agreed to pay at least $12,788. These settlement amounts were based on defendants’ ability to pay.
“Kickback schemes taint decision-making and cause taxpayer-funded health care programs to pay for items or services that patients may not need,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will hold accountable health care providers involved in such schemes designed to induce referrals of prescriptions that are reimbursed by federal health care programs.”
“The prosecution and resolution of this case demonstrates the U.S. Attorney’s Office continuing commitment to hold all responsible parties to account for the submission of claims to federal health care programs that are tainted by unlawful kickback arrangements,” said United States Attorney Ariana Fajardo Orshan. “Kickback schemes lead to unnecessary medical services and drive up the cost of health care for all.”
“This settlement sends a clear message about the Defense Criminal Investigation Service (DCIS) and its law enforcement partners’ unwavering commitment to protect the integrity of TRICARE, the Department of Defense’s health care program which serves to protect our U.S. military, their family members, and military retirees,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Health care providers who manipulate and abuse the TRICARE program in order to seek financial gain by submitting false claims and demonstrating a lack of regard for TRICARE patients and the health care plan which is charged to provide their medical care, will be diligently investigated and held accountable for their actions.”
This settlement resolves a lawsuit pursued by the United States against PCA for allegedly paying kickbacks to outside “marketers” to target military members and their families for prescriptions for compounded creams and vitamins, which were formulated to ensure the highest possible reimbursement from TRICARE. The United States alleged that the marketers paid telemedicine doctors who prescribed the creams and vitamins without seeing the patients, or in some cases, even speaking to them. The settlement also resolves the United States’ allegations that PCA and a marketer routinely jointly paid the copayments owed by patients referred by the marketer, without any verification of the patients’ financial needs, and then disguised the payments as coming from a sham charitable organization, which was affiliated with the marketer. Finally, the settlement resolves the United States’ allegations that PCA continued to claim reimbursement for prescriptions referred by the marketers despite regularly receiving complaints from patients that revealed the prescriptions were being generated without patient consent or a valid patient-prescriber relationship. RLH, the private equity firm that managed PCA on behalf of its investors, allegedly knew of and agreed to the plan to pay outside marketers to generate the prescriptions and financed the kickback payments to the marketers. Patrick Smith and Matthew Smith were executives of PCA who allegedly executed the scheme.
The lawsuit resolved by the settlement was originally filed under the whistleblower (or “qui tam”) provisions of the False Claims Act by Marisela Medrano and Ada Lopez, two former employees of PCA. The qui tam provisions permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The False Claims Act authorizes the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined yet.
This civil settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch (Fraud Section), the United States Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, and the U.S. Food & Drug Administration’s Office of Criminal Investigations.
The lawsuit is captioned United States ex rel. Medrano and Lopez v. Diabetic Care Rx LLC, d/b/a Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Collin County Couple Indicted in Sex Trafficking ConspiracyRead the Press Release
PLANO, Texas – Two Plano residents have been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown and Homeland Security Investigation Special Agent in Charge Ryan Spradlin today.
Quan Tu, 48, a Vietnamese national, and Li Xin, 44, a Chinese national, were arrested on Aug. 15, 2019, in Houston on Dallas County charges stemming from an ongoing sex trafficking investigation in Collin and Dallas counties. On Sep. 11, 2019, a federal grand jury in the Eastern District of Texas returned a three-count indictment charging Tu and Xin with conspiracy to commit sex trafficking by force, fraud, or coercion; conspiracy to use interstate facilities to manage and facilitate an unlawful prostitution enterprise; and money laundering.
Beginning in December 2018, residents in Richardson, Texas began complaining to the Richardson Police Department that men were traveling to a condominium at all hours of the day and night, some of whom were knocking on neighbors’ doors, seeking sexual services. Upon further investigation by a task force of state and federal law enforcement agencies, officers determined that Tu and Xin were allegedly operating a prostitution enterprise from that location. During the investigation, it was revealed that similar operations were being conducted by the same actors in a single-family residence in Plano and a commercial foot spa in Garland.
The investigation further revealed that advertisements for commercial sex were placed on various websites, listing phone numbers that connected back to Tu and Xin. In the meantime, Asian women traveled to the north Texas area from other states, cities, and countries, often with the promise of legitimate masseuse jobs. Once in Tu and Xin’s employ, the women were taken to one of the three locations (Richardson, Plano, or Garland) where they lived and serviced customers. Tu and Xin collected fees from the women, maintained financial control over them, and intimidated them, thereby compelling them into prostitution. The scheme resulted in the proceeds which allowed Tu and Xin to maintain their lifestyle and to purchase vehicles, including a 2017 Toyota Tundra.
“These defendants took advantage of women who were vulnerable,” said United States Attorney Joseph D. Brown. “The women relied on the defendants for what they needed to live in the United States and it was clear that the defendants were coercive in keeping these women in their employment. Human trafficking degrades its victims and keeps them trapped in unhealthy situations, and we are committed to doing everything we can to stop it.”
“In many cases, victims of human trafficking are immigrants who have been duped into deplorable circumstances by false promises of a better life. Regardless of the scenario, HSI takes a victim-centered approach in these investigations, and we have the unique ability to provide assistance/benefits to victims no matter their citizenship,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “As public awareness increases, our HSI special agents along with our tremendous partners are identifying, investigating and pursuing prosecution against more and more sex traffickers who criminally and without mercy exploit women against their will to generate profits.”
If convicted, Tu and Xin each face up to life in federal prison. Anyone with information regarding this case or any similar activities, can contact the U.S. Attorney’s Office at 1-800-804-3547. This is a confidential line. This case is being investigated by Homeland Security Investigations, Texas Department of Public Safety, and the Richardson Police Department, with assistance of the Plano Police Department, Garland Police Department, and Dallas County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Marisa Miller. It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Cleveland Man Pleads Guilty to 2017 Robbery and Burglary Spree in Western PennsylvaniaRead the Press Release
PITTSBURGH – A former resident of Cleveland, Ohio, has pleaded guilty to charges of violating federal robbery and firearms laws, United States Attorney Scott W. Brady announced today.
Rayshawn Patterson, 20, pleaded guilty today in front of Senior U.S. District Judge Arthur J. Schwab to charges of Conspiracy to Commit Hobbs Act Robbery, Hobbs Act Robbery, Conspiracy to Steal Firearms from a Licensed Firearm Dealer, Theft from a Licensed Firearms Dealer, Possession of Stolen Firearms, and Interstate Transport of Stolen Firearms. Additionally, Rayshawn Patterson accepted responsibility for a separate robbery that occurred in Cleveland, Ohio. Patterson has been detained since his initial appearance in federal court.
According to information presented to the court, in December of 2017, Rayshawn Patterson and other conspirators from the Cleveland, Ohio area conspired to travel to rural areas of Western Pennsylvania to burglarize Federal Firearms Licensees (FFLs) and transport the stolen firearms back to Cleveland, Ohio. On December 22, 2017, Rayshawn traveled to Clarion County, Pennsylvania to attempt to locate and burglarize a gun store. However, he and his co-conspirators were unsuccessful in doing so. Prior to returning to Cleveland, Rayshawn and his co-conspirators observed a gas station with only one employee working late at night. The individuals then devised a plan to rob that gas station. Rayshawn Patterson participated in a robbery of the gas station in which the employee was threatened with violence, physically restrained and brought to another area of the store. The conspirators netted only approximately $300 from the robbery before returning to Cleveland.
The next day, on December 23, 2017, Rayshawn Patterson and his co-conspirators returned to Western Pennsylvania and burglarized DSD Sports in Brookville, PA by smashing the front door and windows with a sledgehammer and other tools. Once inside the store, Rayshawn and his co-conspirators stole approximately 16 firearms including 14 handguns and two assault rifles. The co-conspirators then transported the firearms back to Cleveland, Ohio. On December 29, 2017, Cleveland Police recovered two of the stolen handguns from DSD outside the home of Rayshawn and his co-conspirators. Later on January 10, 2018, agents from the Pittsburgh and Cleveland divisions of Bureau of Alcohol, Tobacco, Firearms and Explosives executed search warrants in Cleveland, Ohio at residences connected to Rayshawn and his co-conspirators. Agents recovered the suspected sledgehammer and other tools believed to be used in the burglary.
Judge Schwab scheduled sentencing for February 18, 2020 at 11:00 a.m. Rayshawn Patterson faces a total maximum sentence of up to 20 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Brookville Police Department, the Pennsylvania State Police, the Cleveland Police Department, and the Cuyahoga Sheriff’s Department conducted the investigation leading to the guilty plea in this case.
The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
California Man Sentenced to 174 months for Engaging in Illicit Sexual Conduct in Foreign PlacesRead the Press Release
St. Louis, MO – Michael Bruce McDonald, 79, of Huntington Beach, CA, was sentenced to 174 months in federal prison for engaging in illicit sexual conduct in foreign places. McDonald appeared before United States District Judge Henry E. Autrey.
According to court proceedings and documents, McDonald is a former police officer from California. In 2001 he was found guilty of sexually abusing a child. He moved to the Philippines in 2009, and a short time later married. Three of his wife’s nieces moved in with them - all under ten years of age.
McDonald started producing child pornography pictures of the children and one of their friends. He sexually abused two of the children. He posted some of the images in an online account and sent images by email. McDonald sent child pornography images of the children to an undercover officer in St. Louis. The officer was able to identify McDonald and locate him in the Philippines. McDonald was indicted in the Eastern District of Missouri and was sent back to the United States to be prosecuted.
St. Louis County Police Department and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Rob Livergood is handling the case for the U.S. Attorney’s Office.
CEO of Limited Liability Company Pleads Guilty to Wire FraudRead the Press Release
CAMDEN, N.J. – The chief executive officer of a private equity investment firm today admitted he defrauded an investor of $1.35 million dollars, U.S. Attorney Craig Carpenito announced.
Karl James, 48, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information that charged him with one count of wire fraud.
According to documents filed in this case and statements made in court:
James was the CEO of Gore Capital LLC, which he told others was a private equity investment firm. In February 2016, James and the victim agreed to each invest approximately $1.5 million into a company that specialized in extracting and converting cannabinoids from marijuana. They further agreed to form an LCC as a conduit for their joint investment. In April 2016, James incorporated the LLC in Delaware.
On April 20, 2016, James instructed the victim to wire his investment funds into a bank account. James falsely told the victim that the victim also had access to the account. On April 22, 2016, the victim wired $500,000 into the account. On July 12, 2016, James instructed the victim to wire the remaining $1 million of his investment, which the victim did. To induce the victim’s payment, James told the victim that he would deposit his own money into the account. In reality, James never wired or deposited any of his own funds.
James later spent $1.35 million of the victim’s funds on personal and entertainment expenses for himself.
The wire fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Jan. 6, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic and Assistant U.S. Attorney Dara Govan, Chief of the Office’s Public Protection Unit, in Newark.
Bridgeport Man Who Sold Heroin to Overdose Victim, and Again While Awaiting Sentencing, is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARRYCK NORRIS, 25, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 21 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, at approximately 8:49 p.m. on October 27, 2016, Milford Police and emergency medical personnel responded to a residence in Milford and found an unresponsive 37-year-old male slumped over in the downstairs living area of the residence. Emergency personnel attempted lifesaving measures and administered two doses of the opiate antidote Narcan, which had no effect. The victim was pronounced deceased. Officers searched the immediate area and seized four empty baggies and one full baggy that contained suspected heroin. Each of the bags was stamped with the same brand stamp.
Officers also seized the victim’s iPhone. Analysis of text messages revealed that the victim had ordered heroin from Norris earlier that day. Witness interviews and further cellphone analysis revealed that the victim had purchased heroin from Norris for several months prior to the victim’s overdose.
On November 1, 2016, members of the DEA and Milford Police Department conducted a controlled purchase of heroin from Norris in Bridgeport. The heroin bags purchased were stamped with the same stamp that was found on the bags seized from the overdose victim’s residence.
Norris was arrested on a federal criminal complaint on November 3, 2016, and was released on a $50,000 bond. On May 17, 2017, he pleaded guilty to one count of distribution of heroin.
Judge Underhill allowed Norris to remain released on bond pending sentencing, and granted Norris’ request to attend the U.S. District Court’s Support Court program.
On February 16, 2018, Norris was arrested by the Bridgeport Police Department and charged with possession of narcotics with intent to sell, and other offenses. Subsequent investigation revealed that Norris had been distributing heroin between approximately December 2017 and his arrest on February 16, 2018.
On October 11, 2018, Norris pleaded guilty to a second count of distribution of heroin.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Task Force, and the Milford and Bridgeport Police Departments. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Box Elder Woman Sentenced in Death of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Box Elder, South Dakota, woman convicted of Accessory to Second Degree Murder was sentenced on September 17, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Sonya Dubray, age 50, was sentenced to 9 and 1/2 years in federal prison, followed by18 months of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Dubray’s involvement in covering up the death of a two-and-a-half-year-old child at Porcupine, South Dakota, in July 2016. Katrina Shangreaux, a/k/a Katrina Whirlwindhorse, was previously sentenced to 40 years in federal prison for killing the child.
The investigation was conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Sarah B. Collins and Megan J. Poppen prosecuted the case.
Dubray was immediately remanded to the custody of the U.S. Marshals Service.
Boston Man Charged with Possession of Illegal FirearmRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged in federal court in Boston with being a felon in possession of a firearm.
Naysaan Austin, 23, was charged with one count of being a felon in possession of a firearm. Austin was detained yesterday following an initial appearance before Magistrate Judge M. Page Kelley.
According to the charging document, on June 16, 2019, Austin was arrested in Dorchester for carrying a Sig Sauer .22 caliber Mosquito Pistol loaded with five rounds of ammunition. The serial number on the gun was obliterated. Austin is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Chief of Police William G. Gross made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Beaver County Man Admits Possessing Child PornographyRead the Press Release
PITTSBURGH - A resident of Freedom, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Adam Hosie, age 25, pleaded guilty to one count before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on July 12, 2018, Hosie possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Conti scheduled sentencing for January 9, 2020 at 2 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Indiana County District Attorney’s Office, and the Western Pennsylvania Violent Crimes Against Children Task Force conducted the investigation that led to the prosecution of Hosie.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Batavia Man Caught with Child Pornography at A Halfway House Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daryl Sumeriski, 51, of Batavia, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of child pornography. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that Sumeriski was residing in a halfway house in Bath, NY, when fellow residents expressed concern about certain images they observed on the defendant’s cell phone and alerted authorities. As a result, a search warrant was executed and investigators found more than 3,000 images of child pornography on Sumeriski’s phone. Some of the images depicted violent abuse of infants and toddlers.
The plea is the result of an investigation by the Department of Homeland Security, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for January 10, 2020, before Judge Wolford.
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Bakersfield Man Charged with Illegally Possessing a Firearm That Was Converted into Machine GunRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Liodam Gonzalez, 27, of Bakersfield, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 30, at 3:20 a.m., law enforcement officers received an alert indicating that gunshots had been fired on South Kern Street in Bakersfield. The spent shell casings were traced to Gonzalez’s residence where more bullet casings were found on the car that he drove. A search of the residence yielded a Glock handgun that was converted to fire as a fully automatic machine gun.
This case is the product of an investigation by Homeland Security Investigations (HSI) and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, Gonzalez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Armed Drug Trafficker Receives 14 Years in Federal PrisonRead the Press Release
WILMINGTON – United States Attorney Robert J. Higdon, Jr. announced that Chief United States District Judge Terrence W. Boyle sentenced ANTHONY WILLIAMS 36, of New Hanover County to 168 months’ imprisonment, followed by 5 years of supervised released. On January 15, 2018, WILLIAMS plead guilty to conspiracy to possess with the intent to distribute 5 kilograms or more of Cocaine, possession with intent to distribute 28 grams or more of Crack Cocaine and 5 kilograms or more of Cocaine and possession of a firearm in furtherance of a drug trafficking crime.
On June 6, 2017, the New Hanover County Sheriff’s Narcotics Division served a search warrant at WILLIAMS’s residence in Wilmington, North Carolina. Law enforcement found more than 12 kilogram of Cocaine, 388 grams of Crack Cocaine, a loaded semi-automatic handgun, items used to convert cocaine into crack cocaine and $205,000 in cash.
During the course of the investigation, law enforcement uncovered that WILLIAMS was responsible for distributing more than 60 kilograms of Cocaine and 4 kilograms of Crack Cocaine.
This case was part of a joint operation between the New Hanover and Brunswick County Sheriffs’ Offices and the Federal Bureau of Investigation’s Coastal Carolina Criminal Enterprise Task Force. This Task Force uses resources from federal, state and local law enforcement to efficiently and effectively target and combat criminal groups operating in coastal, southern North Carolina. A key component of this task force’s success involves the use of task force officers from local law enforcement who have direct knowledge of the criminal activity in their areas.
This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation’s Coastal Carolina Criminal Enterprise Task Force and the New Hanover and Brunswick County Sheriffs’ Offices, North Carolina State Bureau of Investigations and the Wilmington Police Department. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
18 September 2019
Webster Parish non-profit director pleads guilty to stealing more than $1 million from feeding programRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Myrna Thomas Quarles, 59, of Cotton Valley, Louisiana, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby for taking more than $1 million from a federal feeding program meant to provide meals to economically disadvantaged children during the summer months when they are not in school.
Quarles was the director of Greater Horizons Developmental Services, a non-profit headquartered in Webster Parish. Greater Horizons received reimbursements from the U.S. Department of Agriculture’s Summer Feeding Service Program (SFSP), which was administered through the State of Louisiana. From 2014 through 2015, Greater Horizons submitted reimbursement claims that greatly inflated the number of eligible meals provided. Once Greater Horizons received the money, Quarles wrote checks that were payable to vendors and other third parties, but instead of sending those checks to the vendors, Quarles deposited that money into her personal bank account, which resulted in her theft of $1,103,148.92 from federal feeding program. Additionally, Quarles used a Greater Horizons credit card for approximately $370,000 in personal spending. Purchases included real estate, farm equipment, a restaurant, air travel, cruises and designer luxury items.
Quarles faces 10 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of January 16, 2020, was set.
The FBI, U.S. Department of Agriculture, Office of Inspector General, and State of Louisiana, Office of State Inspector General, conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan and First Assistant U.S. Attorney Alexander C. Van Hook are prosecuting the case.
Waterbury Man Pleads Guilty to Illegal Possession of Handgun and AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY MORALES, 30, of Waterbury, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on January 19, 2019, Waterbury Police received a report that Morales had been involved in a domestic dispute and was in possession of a firearm. Investigators subsequently encountered Morales at a hotel Waterbury. A search of Morales’ room revealed a Taurus, Model 85, .38 caliber revolver loaded with five rounds of ammunition, and an additional 13 rounds of loose ammunition.
Morales’ criminal history includes state felony convictions for robbery, larceny, assault and narcotics offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Dooley scheduled sentencing for December 12, 2019, at which time Morales faces a maximum term of imprisonment of 10 years.
Morales has been detained since his federal arrest on May 13, 2019.
This matter has been investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
This prosecution has been brought through 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.
Undocumented Immigrant Sentenced for Stealing Citizen’s Identity and Public Housing BenefitsRead the Press Release
BOSTON – An undocumented immigrant who refuses to disclose his true identity was sentenced today in federal court in Boston in connection with using another person’s identity for over 40 years and stealing public funds under the victim’s identity.
“John Doe” was sentenced by U.S. District Court Judge Douglas P. Woodlock to three years in prison and three years of supervised release. One of the conditions of supervision is that Doe disclose his true identity to his Probation Officer. Doe also was ordered to pay the U.S. Department of Housing and Urban Development (HUD) $16,762 in restitution. In June 2019, Doe was convicted by a federal jury of aggravated identity theft, using a passport obtained through false statements, stealing public funds and misuse of a Social Security number.
Doe has admitted to being in the United States for 50 years. Evidence at trial indicated that he is Dominican, but he refused to disclose his identity or nationality.
At some point prior to 1975, Doe obtained the birth certificate of a U.S. citizen from Puerto Rico. Initially Doe did not have the victim’s Social Security number, but subsequently created or obtained a counterfeit Social Security card bearing the name of the victim with a non-matching Social Security number assigned to a different person from Puerto Rico.
From 1975 to 1994, Doe used the counterfeit Social Security card to find employment, first in New York and later in Boston.
In 1994, Doe received a letter from the IRS notifying him that the name on his Social Security card did not match the Social Security number he was using, and that he needed to go to a local Social Security Administration (SSA) office to resolve the discrepancy. Doe took the letter to an SSA office in Boston, where he deceived an SSA employee into believing that he was really the victim and that he had forgotten his true Social Security number. Doe gave the employee the name, date of birth, place of birth, and parents’ names on the victim’s birth certificate without disclosing that the birth certificate was not Doe’s. The employee entered this biographical information into the SSA computer, which returned a match for the victim’s true Social Security number. Through this deception, Doe was able to obtain a Social Security card bearing the victim’s true name and true Social Security Number.
Doe used this unlawfully obtained Social Security card for the next 18 years, until the victim’s death in Puerto Rico in 2012. At that point, SSA learned that someone in Massachusetts was using a deceased person’s Social Security number and began a fraud investigation.
Doe used the victim’s SSN to work in Boston, obtain and travel on a U.S. passport, apply for Social Security benefits, obtain unemployment benefits, and obtain Section 8 public housing benefits for himself and his family. The jury convicted Doe of using a passport that he had obtained by falsely representing that the victim’s Social Security number was his own; using the victim’s Social Security number in support of his claim for unemployment benefits and in a sworn statement he gave SSA; and aggravated identity theft. Doe was also convicted of stealing public funds by using the victim’s SSN to collect Section 8 benefits, which are paid by HUD.
United States Attorney Andrew E. Lelling; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement today. Assistant U.S. Attorneys Christine Wichers and David Tobin of Lelling’s Major Crimes Unit prosecuted the case.
U.S. Attorney, Law Enforcement Leaders Announce New Top 15 Most Wanted in Middle GeorgiaRead the Press Release
MACON – Macon Regional Crimestoppers released a new list of the Top 15 Most Wanted fugitives, announced United States Attorney Charles “Charlie” E. Peeler. U.S. Attorney Peeler joined law enforcement leadership from across the Middle District of Georgia to make the announcement at a location known as “The Field”, a former gathering place and launching pad for criminal activity in the Unionville neighborhood, a section of Macon with the highest violent crime rates. Macon Regional Crimestoppers, a community-run organization dedicated to increasing the safety of citizens, first announced on Tuesday, February 26, 2019 a new quarterly initiative offering a $1,000 reward for a tip leading to the arrest of a Top 15 Most Wanted. The third quarter Top 15 Most Wanted has defendants charged with the most violent crimes, including Child Molestation, Aggravated Assault and Voluntary Manslaughter. The defendants are wanted in counties associated with Macon Regional Crimestoppers. For a complete list, visit www.crimestop.us.
“Strong citizen support coupled with strong law enforcement collaboration has resulted in the apprehension of some of the most violent offenders in our region through this initiative,” said Charlie Peeler, U.S. Attorney. “I want to thank our law enforcement partners and Macon Regional Crimestoppers, a community-led effort to curb violent crime, for not backing down from our shared goal to make our neighborhoods safer and eliminate violent crime.”
“We’ve had great success since we launched this program in February. The results of our efforts have resulted in the capture of 27 violent offenders and this has made our community a much safer place,” said Warren Selby, Jr., Chairman of Macon Regional Crimestoppers. “Our success is due to the partnership of the different agencies working together for the good of the community.”
“The Fifteen Most Wanted initiative has been a huge success for all of Middle Georgia,” said John Cary Bittick, United States Marshal, Middle District of Georgia. “The information provided by the public to Macon Regional Crimestoppers is oftentimes the key to making high profile arrests and disrupting criminal activity. When the public and law enforcement work hand in hand with one another, we can make our communities a better place for everyone.”
“This year, as a result of the 15 Most Wanted initiative, many dangerous offenders have been removed from our neighborhoods,” said David Davis, Bibb County Sheriff. “This united effort from Crimestoppers, law enforcement, and, most importantly, the public has helped to make our region safer. We look forward to the continued success of this innovative program.”
“The Baldwin County Sheriff’s office has enjoyed a great relationship with Macon Regional Crimestoppers. This joint venture has given us a great media platform to publicize our wanted persons,” said Bill Massee, Baldwin County Sheriff. “It provides the opportunity to give the public notice of our crime situations and ask for their assistance. Crimestoppers additionally offers rewards to entice the public to provide their assistance. What a phenomenal partnership!”
“We won’t tolerate those who commit acts of domestic violence, child molestation or violent gang crime. With the tips that led to arrests from the past Top 15 lists, our community has shown that they won’t either,” said David Cooke, Macon Judicial Circuit District Attorney.
This quarter’s Top 15 Most Wanted can be viewed at the Macon Regional Crimestoppers website at www.crimestop.us. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. Macon Regional Crimestoppers is a local non-profit serving Bibb, Baldwin, Houston, Jones, Twiggs, Crawford, Monroe, and Peach counties. The organization partners with law enforcement agencies and community groups to provide anonymous rewards for tips that lead to criminal arrests. Citizens can safely and anonymously report tips at 1-877-68CRIME.
The U.S. Attorney’s Office partnership with Macon Regional Crimestoppers is a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Two Southern California Residents Charged with Credit Card FraudRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 20-count indictment on Aug. 22 against Akop Dongelyan, 44, of Glendale, and Artak Vardanyan, 37, of Burbank, charging them with credit card fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced. Vardanyan was arraigned today, with Dongelyan’s arraignment is scheduled for Sept.23.
According to court documents, Dongelyan and Vardanyan used counterfeit credit and debit cards to make fraudulent cash withdrawals of over $200,000 at ATMs in the Fresno area and in Southern California. The counterfeit cards were created using cardholder information stolen via skimming devices installed at various gas stations.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.
If convicted, Dongelyan and Vardanyan each face a maximum statutory penalty of 10 years in prison for access device fraud, a mandatory two years in prison for aggravated identity theft, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Letcher County Men Sentenced for Methamphetamine OffensesRead the Press Release
London, KY- Shiloh Adams, 34, of Jeremiah, Ky., and Mitchell Adams, 35, of Whitesburg, Ky., were sentenced Tuesday, to 150 months in prison and 94 months in prison respectively, by United States District Judge Claria Horn Boom, for drug trafficking and possession of a firearm in furtherance of drug trafficking.
According to their plea agreements, in November 2018, the Adams’ traveled from Letcher County, Ky., to Louisville, Ky., to purchase methamphetamine for purposes of distribution in the Eastern District of Kentucky. Law enforcement stopped the Adams’ vehicle on the return trip to Letcher County. During a search of the vehicle, officers found over 50 grams of methamphetamine a .540 caliber pistol, and $10,249 in cash.
Shiloh Adams pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking. Mitchell Adams pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.
Under federal law, the Defendants must serve 85 percent of their prison sentence. Shiloh Adams and Mitchell Adams will be under the supervision of the U.S. Probation Office for six years and five years respectively.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division, jointly announced the sentence.
The investigation was conducted by the Louisville Police Department and the ATF’s Ashland Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna Reed.
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Two Fayetteville Gang Members Sentenced for Gun CrimesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that Chief United States District Judge Terrence W. Boyle sentenced TEVON FAYSON 24, of Fayetteville, North Carolina, to 180 months’ imprisonment, followed by a term of supervised released, and HASAN THOMAS 24, of Fayetteville, North Carolina, to 130 months’ imprisonment, followed by a term of supervised released.
FAYSON and THOMAS were named in a five-count Indictment on October 18, 2018. Count One charged Possession of a Firearm by a Convicted Felon, Count Two charged Possession of a Firearm by a Convicted Felon and Aiding and Abetting, Count Three charged Forcibly Assaulting an Officer or Employee of the United States and Aiding and Abetting, Count Four charged Robbing Personal Property belonging to the United States and Aiding and Abetting, and Count Five charged Brandishing, Carrying, and Using a Firearm During and in Relation to a Crime of Violence and Aiding and Abetting.
On April 16, 2019, FAYSON pled guilty to Counts Two and Four, and on May 20, 2019, THOMAS pled guilty to Counts Two through Five.
On September 5, 2018, as part of an undercover operation, law enforcement arranged a meeting with FAYSON to purchase controlled substances and a firearm. At the time of the controlled purchase, FAYSON was a convicted felon and prohibited from possessing a firearm. On September 7, 2018, law enforcement arranged another meeting with FAYSON to conduct a controlled purchase for controlled substances and firearms. FAYSON and THOMAS then traveled to Murchison Road in Fayetteville, North Carolina where FAYSON and THOMAS went to a residential area to complete the controlled purchase. There, THOMAS, a convicted felon, provided FAYSON with a loaded firearm, which he brandished during the controlled purchase. Audio and video surveillance captured the entire transaction. According to law enforcement, both men are validated gang members.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fayetteville Police Department. Assistant United States Attorney Chad E. Rhoades prosecuted the case for the government.
Two Defendants Arrested in $10 Million Tech Support Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced charges against ROMANA LEYVA and ARIFUL HAQUE for participating in a conspiracy that for several years exploited elderly victims by remotely accessing their computers and convincing victims to pay for computer support services they did not need, and which were never actually provided. In total, the conspiracy generated more than $10 million in proceeds from at least approximately 7,500 victims. LEYVA was arrested today in Las Vegas, Nevada, and will be presented, in the District of Nevada, before Magistrate Judge Cam Ferenbach. HAQUE was arrested this morning in Bellerose, New York, and will be presented today before Magistrate Judge Ona T. Wang in the Southern District of New York. The case has been assigned to U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants participated in a sophisticated fraud scheme that preyed on the elderly. The conspirators allegedly caused pop-up windows to appear on victims’ computers – pop-up windows that claimed, falsely, that a virus had infected the victim’s computer. Through this and other misrepresentations, this fraud scheme deceived thousands of victims, including some of society’s most vulnerable members, into paying a total of more than $10 million.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “In a fraud scheme that targeted thousands of elderly victims who were swindled out of millions, the conspirators allegedly posed as tech support to fix computers supposedly infected by malware. It is our duty as citizens to protect our growing elderly population and it is our duty as law enforcement to investigate and arrest those, like Leyva and Haque, who seek to make a profit through fraud and deception.”
According to the Indictment unsealed in Manhattan federal court:[1]
From March 2015 through December 2018, LEYVA and HAQUE were members of a criminal fraud ring (the “Fraud Ring”) based in the United States and India that committed a technical support fraud scheme targeting elderly victims located across the United States and Canada, including in the Southern District of New York. The Fraud Ring’s primary objective was to trick victims into believing that their computers were infected with malware, in order to deceive them into paying hundreds or thousands of dollars for phony computer repair services. Over the course of the conspiracy, the Fraud Ring generated more than $10 million in proceeds from at least 7,500 victims.
The scheme generally worked as follows. First, the Fraud Ring caused pop-up windows to appear on victims’ computers. The pop-up windows claimed, falsely, that a virus had infected the victim’s computer. The pop-up window directed the victim to call a particular telephone number to obtain technical support. In at least some instances, the pop-up window threatened victims that, if they restarted or shut down their computer, it could “cause serious damage to the system,” including “complete data loss.” In an attempt to give the false appearance of legitimacy, in some instances the pop-up window included, without authorization, the corporate logo of a well-known, legitimate technology company. In fact, no virus had infected victims’ computers, and the technical support phone numbers were not associated with the legitimate technology company. Rather, these representations were false and were designed to trick victims into paying the Fraud Ring to “fix” a problem that did not exist. In exchange for victims’ payment of several hundred or thousand dollars (depending on the precise “service” victims purchased), the purported technician remotely accessed the victim’s computer and ran an anti-virus tool, which is free and available on the Internet. The Fraud Ring also re-victimized various victims again.
LEYVA’s roles in the scheme included (1) creating several fraudulent corporate entities that were used to receive fraud proceeds from victims, (2) recruiting others (including through misrepresentations) to register fraudulent corporate entities that became part of and facilitated the activities of the Fraud Ring, and (3) assisting others in setting up fraudulent corporate entities and bank accounts, including coaching them to make misrepresentations to bank employees where necessary. HAQUE registered a fraudulent corporate entity that was used to receive fraud proceeds from victims on behalf of the Fraud Ring. HAQUE also provided guidance to a co-conspirator who registered a different fraudulent corporate entity that was part of the Fraud Ring, and deposited fraud proceeds into accounts associated with that entity.
* * *
LEYVA, 35, of Las Vegas, Nevada, and HAQUE, 33, of Bellerose, New York, are each charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised HSI’s El Dorado Task Force, Cyber Intrusion/Cyber Fraud Group for its outstanding work on the investigation and the NYPD for their assistance on this case. He added that the investigation is continuing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Arrested for Extortion of Startup Cryptocurrency CompanyRead the Press Release
A complaint was unsealed earlier today in federal court in Brooklyn charging Steven Nerayoff and Michael Hlady with extortion. Nerayoff, an attorney, and Hlady threatened to destroy a startup cryptocurrency company if they were not paid millions of dollars in the cryptocurrency Ether (ETH). Nerayoff was arrested this morning, and will make his initial appearance this afternoon before United States Magistrate Judge Steven L. Tiscione. Hlady was arrested this morning in Rhode Island, and will make his initial appearance this afternoon in federal court in Providence.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, announced the charges.
“As alleged, Nerayoff and Hlady carried out an old-fashioned shakedown, to be paid off with 21st century cryptocurrency,” stated United States Attorney Donoghue. “This Office and our partners at the FBI are committed to protecting businesses from extortion, whether the demands are for U.S. dollars or cryptocurrency.”
“When you peel back the layers of this case, an age-old extortion scheme is revealed with a modern day twist,” stated FBI Assistant Director-in-Charge Sweeney. “Imposing forceful demands on a company for personal gain is risky business, whether one's preference is to be paid off with cryptocurrency or cold hard cash. The FBI will continue to seek justice for victims who businesses have been targeted by these types of scams.”
The victim company, headquartered in Seattle, Washington, is a startup mobile-based business that specializes in generating user traffic to clients’ products by issuing its own cryptocurrency tokens as loyalty rewards. In November 2017, the company planned an Initial Coin Offering (ICO) to raise capital, and signed an agreement with an entity operated by Nerayoff. Under the agreement, Nerayoff agreed to help the company complete a successful ICO in return for 22.5% of all funds raised, and 22.5% of the issued cryptocurrency tokens. Just days before the ICO was to occur, Nerayoff told executives of the company that his compensation would have to be increased by approximately 17,000 ETH to 30,000 ETH (worth approximately $8.75 million at the time), or he would sabotage the ICO and destroy the company. The company paid Nerayoff as demanded, despite not receiving any additional services.
Subsequently, Nerayoff introduced the executives to Hlady, who used the alias “Michael Peters” and who Nerayoff described as his “operations guy.” Hlady told the executives that he had been part of the Irish Republican Army, the National Security Agency, the Central Intelligence Agency and the FBI, and that he had “taken down” a head of state. In March 2018, Nerayoff and Hlady threatened one of the executives with destruction of the company if not paid additional funds and company tokens. Later that month, Nerayoff demanded a purported loan of 10,000 ETH (worth approximately $4.45 million at the time), and Hlady followed up with a text message to the executive stating, “I promise I will destroy your community” if Nerayoff’s demands are not met. The company then transferred 10,000 ETH to Nerayoff. The “loan” was never repaid.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Nerayoff and Hlady each face up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Andrey Spektor are in charge of the prosecution.
The Defendants:
Steven Nerayoff
Age: 48
Great Neck, New YorkMichael Hlady (also known as “Michael Peters”)
Age: 47
East Greenwich, Rhode IslandE.D.N.Y. Docket No. 19-MJ-830
Three men indicted for their alleged roles in a conspiracy to distribute anabolic steroids via the dark webRead the Press Release
Three men were indicted in federal court for their alleged roles in a conspiracy to distribute anabolic steroids via the dark web.
Named in the four-count indictment are: Ronald D. Roginsky, 52, of Brunswick; John M. Ambrose, 40, of Chicago, and Eric S. Angle, 52, of Wexford, Pennsylvania.
All three are charged with one count each of conspiracy to distribute controlled substances, conspiracy to import controlled substances, distributing controlled substances by means of the Internet, and conspiracy to launder money.
According to the indictment filed in U.S. District Court in Cleveland:
Roginsky, Ambrose and Angle were members of the “qu4ntum” drug trafficking organization. The organization maintained and controlled the qu4ntum dark net vendor account on AlphaBay, Dream Market, Wall Street and other dark net marketplaces.
The qu4ntum drug organization distributed anabolic steroids and other controlled substances over the dark web, websites and forums operating on the clear web and via person-to-person transactions, according to the indictment.
The organization used the qu4ntum account as an online storefront for the sale of anabolic steroids and other controlled substances. The group imported steroids from China and elsewhere and shipped the drugs to locations throughout the U.S.
They used the U.S. Postal Service, third-party shipping companies and hand-to-hand transactions as a means of distribution. They used various means to hide their identification as the shippers of drug parcels, including opening P.O. boxes under fictitious names, according to the indictment.
Sales of controlled substances were paid for using cryptocurrency, such as Bitcoin, and cash, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including each 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 case is being prosecuted by Assistant U.S. Attorneys Daniel Riedl and Segev Phillips following an investigation by the U.S. Postal Inspection Service, Federal Bureau of Investigation, Homeland Security Investigations, Internal Revenue Service – Criminal Investigations and the Medina County Drug Task Force.
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.
Texas Healthcare Fraud Takedown Results in Charges Against 58 IndividualsRead the Press Release
The Justice Department announced today a coordinated health care fraud enforcement operation across the state of Texas, involving charges against a total of 58 individuals across all four federal districts in Texas for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
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. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, Health and Human Services-Office of Inspector General (HHS-OIG) and the Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Veterans Affairs-OIG and the Department of Labor, various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), Department of Labor-Office of Worker’s Compensation Programs, and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.
Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills.
“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists, and others who may have long believed they could perpetrate their frauds behind closed doors.”
“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment, or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”
“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox, and Joe Brown,” said U.S. Attorney John Bash of the Western District of Texas. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”
“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”
“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said HHS - OIG Special Agent in Charge C.J. Porter. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”
“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”
Among those charged in the Northern District of Texas are the following:
- Michael Charles Braddick, Kyle Martin Hermesch, and Bioflex Medical were charged for their alleged participation in a scheme to defraud the Department of Labor- Office of Worker’s Compensation Programs. Bioflex Medical is located in Dallas, Texas. The case is being prosecuted by Special Assistant U.S. Attorney Jennifer Bray.
- Nehaj Rizvi was charged for his alleged participation in a scheme to defraud Medicare through Life Spring Housecall Physicians, Inc., a company located in Dallas, Texas. The case is being prosecuted by Assistant U.S. Attorney Douglas Brasher.
- Dr. Brian Carpenter and Jerry Hawrylak were charged for their alleged participation in a scheme to defraud TRICARE through a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
- Leah Hagen and Michael Hagen were charged for their alleged participation in conspiracies to pay and receive kickbacks and launder money through Metro DME Supply and Ortho Pain Solutions, both durable medical equipment companies in Arlington, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess.
- Nilesh Patel, Dr. Craig Henry, and Bruce Henry were charged for their alleged participation in a scheme to defraud TRICARE through marketing company RxConsultants and a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Carlos Lopez of the Fraud Section.
- Bruce Stroud and Bobbi Stroud were charged for their alleged participation in a scheme to defraud Medicare through New Horizons Durable Medical Equipment, Striffin Medical Supply, and 4B Ortho Supply, all durable medical equipment companies located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Trial Attorney Carlos Lopez.
- Jamshid Noryian, Dehshid Nourian, Christopher Rydberg, Leyla Nourian, Ashraf Mofid, Dr. Leslie Benson, Dr. Michael Taba, and Ali Khavarmanesh were charged for their alleged participation in a scheme to defraud the Department of Labor- Office of Worker’s Compensation and Blue Cross Blue Shield and conspiracies to launder money and evade the payment of taxes through Ability Pharmacy, Industrial & Family Pharmacy, and Park Row Pharmacy, all located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the 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. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF 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.
Texas Health Care Fraud and Opioid Takedown Results in Charges Against 58 IndividualsRead the Press Release
The Justice Department announced today a coordinated health care fraud enforcement operation across the state of Texas, involving charges against a total of 58 individuals across all four federal districts in Texas for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in losses and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.
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. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, Health and Human Services-Office of Inspector General (HHS-OIG) and the Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Veterans Affairs-OIG, the Department of Labor and various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), Department of Labor-Office of Worker’s Compensation Programs, and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.
According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills.
“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists, and others who may have long believed they could perpetrate their frauds behind closed doors.”
“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment, or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”
“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox, and Joe Brown,” said U.S. Attorney John Bash of the Western District of Texas. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”
“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”
“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of HHS-OIG. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”
“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”
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Among those charged in the Northern District of Texas are the following:
Dr. Brian Carpenter and Jerry Hawrylak were charged for their alleged participation in a scheme to defraud TRICARE through a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
Leah Hagen and Michael Hagen were charged for their alleged participation in conspiracies to pay and receive kickbacks and launder money through Metro DME Supply and Ortho Pain Solutions, both durable medical equipment (DME) companies in Arlington, Texas. The case is being prosecuted by Trial Attorney Brynn Schiess.
Nilesh Patel, Dr. Craig Henry and Bruce Henry were charged for their alleged participation in a scheme to defraud TRICARE through marketing company RxConsultants and a compounding pharmacy located in Fort Worth, Texas. The case is being prosecuted by Trial Attorney Carlos Lopez of the Fraud Section.
Bruce Stroud and Bobbi Stroud were charged for their alleged participation in a scheme to defraud Medicare through New Horizons Durable Medical Equipment, Striffin Medical Supply and 4B Ortho Supply, all DME companies located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Trial Attorney Carlos Lopez.
Jamshid Noryian, Dehshid Nourian, Christopher Rydberg, Leyla Nourian, Ashraf Mofid, Dr. Leslie Benson, Dr. Michael Taba and Ali Khavarmanesh were charged for their alleged participation in a scheme to defraud the Department of Labor-Office of Worker’s Compensation and Blue Cross Blue Shield and conspiracies to launder money and evade the payment of taxes through Ability Pharmacy, Industrial & Family Pharmacy and Park Row Pharmacy, all located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
Michael Charles Braddick, Kyle Martin Hermesch and Bioflex Medical were charged for their alleged participation in a scheme to defraud the Department of Labor-Office of Worker’s Compensation Programs. Bioflex Medical is located in Dallas, Texas. The case is being prosecuted by Special Assistant U.S. Attorney Jennifer Bray.
Nehaj Rizvi was charged for his alleged participation in a scheme to defraud Medicare through Life Spring Housecall Physicians Inc., a company located in Dallas, Texas. The case is being prosecuted by Assistant U.S. Attorney Douglas Brasher.
Among those charged in the Southern District of Texas are the following:
Diana Hernandez, Kathy Hernandez, Hieu Troung, R.P.H., Clint Randall, Prince White, Charles Walton and Cedric Milbrurn were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through S&S Pharmacy of Houston, Texas. The case is being prosecuted by Trial Attorney Devon Helfmeyer of the Fraud Section.
Franklin Nwabugwu, R.P.H. was charged for his alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through Golden Pharmacy of Houston, Texas. The case is being prosecuted by Trial Attorney Devon Helfmeyer.
Steven Inbody, M.D. and Hoai-Huong Truong were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose. The case is being prosecuted by Trial Attorney Catherine Wagner.
Ashley McCain, John Sims, Gregory Comer, Kesia Banks, Jacqueline Hill and Horace LeBlanc were charged for their alleged participation in a scheme to unlawfully distribute and dispense a controlled substance without a legitimate medical purpose through Continuous Medical Care and Rehabilitation. The case is being prosecuted by Assistant Deputy Chief Aleza Remis of the Fraud Section and Trial Attorney Devon Helfmeyer.
Among those charged in the Eastern District of Texas are the following:
Demetrius Cervantes, 44, of McKinney, Texas, Amanda Lowry, 39, of Sherman, Texas, and Lydia Henslee, 27, of Denison, Texas, were indicted for conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification. The case involves the breach of a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients of the provider. The information that was stolen from the provider was “repackaged” in the form of false and fraudulent physician orders and sold to DME providers and contractors. Within approximately eight months, the defendants obtained more the $1.4 million in proceeds from the sale of the stolen information. The proceeds of the offenses were traced and the following forfeitable assets were identified: a 2019 Land Rover Range Rover SC; a 2019 Dodge Durango; a 2018 Polaris RZR XP4 1000 EPS; a 2019 Can-Am Outlander 450; a 2019 Sea-Doo RXT-X 300 W; a 2019 Sea-Doo RXT-X 300 W; and a 2019 Karavan Sea-Doo Move. This case is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan.
Joseph Valdie Kimble, 62, of Longview, Texas, pleaded guilty to health care fraud. Kimble operated Tiger EMS, a business providing non-emergency ambulance transport, mostly between skilled nursing centers and hospitals and dialysis centers. Ambulance providers may bill for ambulance services only if there is a demonstrated medical need, which requires that (a) the beneficiary be bed-confined, and it is documented that other methods of transportation are contraindicated; or (b) the beneficiary's medical condition is such that transportation by ambulance is medically required. Kimble disregarded medical necessity requirements and billed Medicare and Medicaid for ambulance services provided to patients for whom ambulance transport was not medically necessary. The plea agreement provides for an agreed sentence of 30 months in prison and $751,986.80 in restitution. This case is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.
Among those charged in the Western District of Texas are the following:
Orlando Garcia-Moya, owner and president of Fleet Ambulance Co. in San Antonio (Fleet), and Melody Ann Villareal, emergency medical technician and Fleet supervisor, were charged for their roles in a scheme to defraud Medicaid by submitting over $2.5 million in fraudulent claims for non-emergency ambulance transportation that was never provided. As a result of the scheme, Fleet received over $1 million in Medicaid funds. The case is being prosecuted by Special Assistant U.S. Attorney Rex Beasley and Assistant U.S. Attorney John Kennedy.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the 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. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF 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.
Texas Health Care Fraud and Opioid Takedown Results in Charges Against 58Read the Press Release
HOUSTON - The Justice Department has announced a coordinated health care fraud enforcement operation across the state of Texas involving charges against a total of 58 individuals, several of which are charged in Houston. They were allegedly involved in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, while 20 were charged for their role in diverting opioids.
The Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners led the enforcement actions. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, FBI, Department of Health and Human Services – Office of Inspector General (HHS-OIG) and Drug Enforcement Administration. In addition, the operation includes the participation of the Veterans Affairs – OIG and the Department of Labor (DOL), various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), DOL - Office of Worker’s Compensation Programs and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.
According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills.
“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”
“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists and others who may have long believed they could perpetrate their frauds behind closed doors.”
“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”
“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of HHS-OIG. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”
“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”
Among those charged in the Southern District of Texas are:
Diana Hernandez, Kathy Hernandez, Hieu Troung R.P.H., Clint Randall, Prince White, Charles Walton and Cedric Milbrurn were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through S&S Pharmacy of Houston.
Franklin Nwabugwu R.P.H. was charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through Golden Pharmacy of Houston.
Steven Inbody M.D. and Hoai-Huong Truong were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose.
Ashley McCain, John Sims, Gregory Comer, Kesia Banks and Jacqueline Hill were charged for their alleged participation in a scheme to unlawfully distribute and dispense a controlled substance without a legitimate medical purpose through Continuous Medical Care and Rehabilitation.
Trial Attorneys Devon Helfmeyer and Catherine Wagner and Assistant Deputy Chief Aleza Remi, all of the Fraud Section, are prosecuting the respective cases.
Several others were also charged in the Northern District of Texas (NDTX), Eastern District of Texas (EDTX) and Eastern District of Texas (EDTX).
“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said NDTX U.S. Attorney Erin Nealy Cox. “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”
“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said EDTXU.S. Attorney Joseph D. Brown of the “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”
“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox and Joe Brown,” said WDTX U.S. Attorney John Bash. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”
The Fraud Section leads the 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. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF 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.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Suspected Columbus gang member sentenced to 42 months in prison for illegal possession of firearms, ammunitionRead the Press Release
COLUMBUS, Ohio – Corey D. Wilder, Jr., 27, of Columbus was sentenced in U.S. District Court to serve 42 months in prison for possessing a loaded AR-15 assault-style rifle during a standoff with members of a rival gang in south Columbus in 2017.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Acting Columbus Police Chief Thomas Quinlan announced the sentence handed down September 16 by U.S. District Judge Edmund A. Sargus Jr.
According to court documents, Columbus Police identified Wilder, a suspected gang member, alongside documented South Park/Fetti Nation gang members outside apartments where Wilder lived in July 2017 when a dispute erupted with a rival gang who threatened to shoot up Wilder’s girlfriend’s sister’s car. A Columbus Police officer knew Wilder by sight and knew he was a convicted felon who was not allowed to possess a gun. Wilder was carrying an AR-15 style rifle with a loaded magazine containing 31 live rounds of ammunition. A search of Wilder’s apartment recovered at least nine other firearms, several of which were loaded, along with illegal drugs. Wilder pleaded guilty on April 11, 2019 to one count of possession of a firearm by a convicted felon.
Wilder has been in custody since his arrest. Two others involved in the incident received substantial sentences as well. Michael Chester, 28, was sentenced to 51 months in prison. Davonta Flood, 22, was sentenced to 33 months in prison. Each pleaded guilty to illegally possessing firearms because they were convicted felons.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Glassman commended the cooperative investigation by the ATF and Columbus Police Department, as well as Assistant United States Attorney Jonathan J. C. Grey, who is representing the United States in this case.
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St. Croix Man Sentenced to Six and a Half Years in Federal Prison for Possession with Intent to Distribute Crack CocaineRead the Press Release
St. Croix, USVI – Roosevelt Dowling, 59, of St. Croix, was sentenced on September 18, 2019, in District Court on one count of Possession of Crack Cocaine with Intent to Distribute United States Attorney Gretchen C.F. Shappert announced.
Chief Judge Wilma A. Lewis sentenced Dowling to a prison term of 78 months (6.5 years), to be followed by 5 years of supervised release, a $1,000 fine, and a $100 special assessment.
According to court documents, on January 30, 2017, law enforcement officers executed a search warrant on Dowling’s Estate La Grande Princess residence and vehicle. These officers seized approximately 31 grams of crack cocaine, 759 grams of cocaine hydrochloride, 19 marijuana plants, 2 digital scales, and $6,690 in cash.
The case was investigated by the Drug Enforcement Administration and the Virgin Islands Police Department. Assistant U.S. Attorney Meredith J. Edwards prosecuted the case.
St. Croix Man Arrested on Drug and Firearm Charges Following Search of His Anna Hope ResidenceRead the Press Release
St. Croix, USVI – Troy Patterson, 51, of St. Croix, appeared before Magistrate Judge George W. Cannon for an Initial Appearance after his arrest by Drug Enforcement Administration (DEA) Special Agents on the charges of Possession of Marijuana with the Intent to Distribute; Possession of Cocaine with the Intent to Distribute; Maintaining Drug-Involved Premises; Possession of a Firearm in Furtherance of Drug Trafficking; and Fugitive in Possession of a Firearm.
According to court documents, in the early morning of September 18, 2019, law enforcement agents and officers executed a search warrant at Patterson’s Anna Hope residence. The search resulted in the seizure of 301 marijuana plants, approximately 117 grams of processed marijuana, approximately 168 grams of cocaine, and a loaded Taurus .38 caliber firearm. Additionally, Patterson had an active 2004 warrant from Oregon for failing to appear on Dangerous Drugs violations.
The case was investigated by the Drug Enforcement Administration and the Virgin Islands Police Department and is being prosecuted by Assistant U.S. Attorney Melissa Ortiz.
United States Attorney Gretchen C.F. Shappert reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
South Texan Lands in Prison After Trying to Smuggle Cocaine Through CheckpointRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Hidalgo drug smuggler has been ordered to federal prison following his conviction of possession with the intent to distribute nearly two kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick. Josue Rivera pleaded guilty May 30, 2019.
Today, U.S. Senior District Judge Nelva Gonzales Ramos ordered Rivera to serve 60 months in prison to be immediately followed by four years of supervised release.
On Feb. 18, 2019, Rivera drove his vehicle into the primary inspection area of the Border Patrol (BP) checkpoint in Falfurrias. Immediately thereafter, a service K-9 alerted to the vehicle by pulling hard towards its direction.
Upon questioning, Rivera claimed to be on his way to work in the oil field. However, authorities noticed he actually did not have any work equipment with him.
They searched the vehicle and discovered 1.95 kilograms of cocaine wrapped in two bundles hidden inside the door of the vehicle. They immediately arrested him.
The estimated street value of the drugs was $179,200.
Rivera has been on bond and was ordered to surrender himself to the U.S. Marshal Service on a date to be determined in the near future for transfer to a U.S. Bureau of Prisons facility.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney Joel Dunn is prosecuting the case.
Six Cuban Nationals Indicted for Gas Pump Skimming SchemeRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging six southern Florida men for their respective roles in a bank fraud and aggravated identity theft conspiracy.
According to the indictment, the defendants, all of whom are Cuban nationals, placed skimming devices on gas pumps located in the Eastern District of Virginia. The skimming devices were capable of recording the credit and debit card numbers, along with their PINs, of the customers that used their cards at the gas pumps. In April and May 2018, using the stolen card information, the defendants traveled between Harris Teeter store locations, among other destinations, to withdraw money from the victims’ bank accounts and purchase prepaid debit cards.
Below is a table which lists the name, age, hometown of each defendant. They have all been charged with bank fraud, conspiracy to commit bank fraud and aggravated identity theft.
Name, Age
Hometown
Pedro Emilio Duran, 40
Miami, Florida
Yariel Monsibaez Ruiz, 28
Hialeah, Florida
Ariel Mora Quijada, 25
Miami, Florida
Guillermo Bello Fuentes, 33
Miami, Florida
Jorge Bello Fuentes, 30
Homestead, Florida
Luis Miguel Fernandez Cardente, 28
Coral Gables, Florida
If convicted, each defendant faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
The Northampton County Sheriff’s Office has provided significant and ongoing assistance with the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-109.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Shaker Heights man indicted violations related to improperly operating an incineratorRead the Press Release
A Shaker Heights man was indicted in federal court for violations related to improperly operating an incinerator.
Anthony Gray, 63, was indicted on one count of conspiracy to defraud the United States.
According to the indictment:
Gray was the co-owner of Lomack Drum Company (LDC), also known as L. Gray Barrel & Drum and Gray Container LLC. The company was located in Cleveland and reconditioned metal drums.
Gray served as operations manager and sales manager, while another person, identified in court documents as Owner 2, served as environmental manager and maintenance manager.
Some drums were passed through an incinerator at the facility as part of the reconditioning process. The contents of the drums were burned out as they passed through the incinerator. The incinerator had to be operated above a certain temperature, otherwise incomplete combustion would occur, producing dioxins and furans.
A temporary restraining order was issued in 2009 ordering LDC to cease operations of the incinerator at its facility. Gray and Owner 2 agreed to several new conditions with the operation of the incinerator, including testing the incinerator in the presence of an inspector demonstrating it could operate about 1,600 degrees Fahrenheit, according to indictment.
Gray and Owner 2 scheduled compliance demonstrations with inspectors but the incinerator did not maintain the required operating temperature. To date, LDC has not demonstrated the incinerator can be operated according to its permit.
Gray and Owner 2 directed and were aware the incinerator operated at night, concealing violations of the facility’s permit. Gray and Owner 2 also lied to authorities about operating the incinerator, according to the indictment.
Gray and Owner 2, as well as LDC employees, operated the incinerator after dark and at night numerous times in 2013 and 2014. This included placing drums containing paints and solvents onto the conveyor belt going through the incinerator.
This resulted in the burning of several hundred drums to be burned every night the incinerator burned, causing flaming drums visible from several hundred feet away and at times emitted an offensive odor, according to the indictment, 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.
This case is being prosecuted by Assistant U.S. Attorney Brad J. Beeson following an investigation by U.S. EPA Criminal Investigation Division, Ohio Bureau of Criminal Investigation, and the Ohio EPA - Special Investigations Unit, with assistance from the Cleveland Division of Police, Cleveland Fire Department, and Cleveland Division of Air Pollution Control.
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.
Salem Man Charged with Transmitting Threatening Communications (Photo)Read the Press Release
PORTLAND, Ore.—A federal criminal complaint was unsealed today charging a Salem, Oregon man with threatening Social Security Administration (SSA) officials after being denied Supplemental Security Income (SSI) benefits.
Erick Carlsen, 45, is charged with transmitting threatening communications in violation of 18 U.S.C. § 875(c).
According to the complaint, on July 24, 2019, Carlsen allegedly engaged in threatening behavior at an SSA benefits review hearing in Salem. At the hearing, Carlsen yelled at the Administrative Law Judge and threatened future physical violence. Salem police officers responded and Carlsen left without further incident. Carlsen livestreamed his actions on Facebook and later posted additional threats.
On September 11, 2019, Carlsen left a voicemail for an SSA Office of Inspector General Agent in which he said, “I’m going to go to this hearing and people are going to [expletive] pay. Do you understand? You guys are going to [expletive] pay.” The same day, Carlsen posted another threat on Facebook entitled “Why do People Go on Shooting Sprees.” In the post, Carlsen claimed that he would “…make the front page and air on every TV station” and “…make sure the whole country stands up and takes notice…”
The next day, investigators from the Federal Protective Service (FPS) interviewed Carlsen at his home in Salem. During the conversation, Carlsen was visually agitated and appeared to be preparing for a fight. Carlsen told the investigators he suffered from mental health issues that cause anger and that he does not leave his property because he is never sure what he will do. When they discussed his upcoming SSA hearing, Carlsen said that he would not bring weapons, but that he could not promise he wouldn’t hurt anyone.
A concerned citizen notified law enforcement of Carlsen’s Facebook posts and later told investigators, “I really feel like he has the potential to follow through.” On September 17, 2019, Carlsen was arrested by the Marion County Sheriff’s Office without incident.
Carlsen made his first appearance in federal court today in Portland. He will be arraigned on October 16, 2019.
This case was investigated by the SSA Office of Inspector General, FPS, FBI, Marion County Sheriff’s Office and Salem Police Department and is being prosecuted by Rachel Sowray, Special Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov. For immediate threats to life and safety, please call 9-1-1.
Screenshot of a Facebook post threatening to attack the Social Security AdministrationRochester Man Sentenced for Heroin Possession and Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Delisio, 47, of Rochester, NY, who was convicted of possession of heroin with intent to distribute and possession of a firearm and ammunition by a convicted felon, was sentenced to serve 100 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Cassie Kocher, handled the case, stated that the defendant sold heroin between September 29, 2017, and April 11, 2018 to individuals working with the Drug Enforcement Administration. Delisio was arrested on April 11, 2018, following a vehicle stop. The defendant had approximately $34,650 in cash in his possession and officers found a bottle in the vehicle containing residue of suspected heroin, scales which are commonly used to process narcotics for distribution, and a .22 caliber Ruger handgun.
During a subsequent search of Delisio’s residence, officers recovered three more firearms and ammunition. The defendant was previously convicted in Wayne County Court in 2013 of Criminal Possession of a Controlled Substance in the Fourth Degree; in 2009 of Criminal Sale of a Controlled Substance in the Fifth Degree; and in 2002 of Burglary in the Third Degree. As a result, Delisio is legally prohibited from possessing firearms and ammunition.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Wayne County Sheriff’s Office, under the direction of Sheriff Barry Virts.# # # #
Registered Sex Offender in Kansas Convicted on Federal Child Porn ChargesRead the Press Release
WICHITA, KAN. – A registered sex offender living in western Kansas was convicted today on federal child pornography charges, U.S. Attorney Stephen McAllister said.
A federal jury convicted Wayne Benjamin Wasson, 59, Great Bend, Kan., on four counts of uploading child pornography to the internet and one count of possessing child pornography.
During trial, a prosecutor presented evidence that Yahoo and Google detected child pornography originating from Wasson’s residence. The digital trail led investigators to Wasson, who admitted he had received child pornography via Skype and had operated a number of other accounts. Investigators found child pornography within the accounts and on Wasson’s devices.
Wasson registered as a sex offender in 2007 following a conviction for possession of child pornography.
Sentencing is set for Dec. 13, 2019. He faces a penalty of not less than 15 years in federal prison and a fine up to $250,000.
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Registered Nurse Sent to Federal Prison for Stealing Opioids from HospitalRead the Press Release
DENVER – United States Attorney Jason R. Dunn announces that registered nurse Kacye Unruh was sentenced to 24 months in federal prison for stealing opioids by deceit and for tampering with a consumer product. The defendant was sentenced today in Denver by United States District Court Judge William J. Martinez. At the conclusion of her prison sentence, she will serve 3 years of supervised release.
According to the plea agreement and facts presented at sentencing, Unruh was addicted to fentanyl and/or hydromorphone while she worked as a registered nurse in the acute dialysis department at the University of Colorado Hospital from May to July, 2016. During her employment, Unruh used her position as a nurse to access secure machines – called Pyxis machines – to steal opioids intended to treat patients’ pain. She used a needle and syringe to inject herself with those stolen opioids in a bathroom. She then re-filled the partially used opioid vials with saline solution and placed the tampered vials back into the Pyxis machines. Tests of certain vials showed that they contained substantially less of the active ingredients than expected or were tainted with substances other than the active ingredients expected to be present in those vials.
The evidence presented at sentencing caused the Court to infer that patients at the hospital received tainted opioids to treat their pain as a result of Unruh’s conduct. The Court concluded that Unruh violated the trust placed in her by the hospital and its patients.
“This defendant took potent pain medicine that was intended for patients and used it to satisfy her addiction,” said United States Attorney Jason Dunn. “Whatever else may happen in addressing the opioid crisis, we must ensure that patients in hospitals receive the appropriate medication they need to recover.”
“FDA will continue to aggressively pursue those health care practitioners who prey on vulnerable patients by removing their needed medications,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations, Kansas City Field Office. “We remain committed to working with our law enforcement partners to protect the public health and bring to justice those who compromise patients’ health in this manner.”
Unruh was placed on investigative leave in July 2016, during an investigation of her conduct. Her license to be a professional nurse in Colorado was suspended that same month.
This matter was investigated by the Food and Drug Administration. Assistant United States Attorneys Jaime Pena and Peter McNeilly prosecuted this case.
CASE NO. 16-cr-0347
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Portland Man Sentenced to 100 Months in Federal Prison for Illegally Importing Fentanyl from ChinaRead the Press Release
PORTLAND, Ore.—John William Schantz, 28, of Portland, was sentenced today to 100 months in federal prison and four years’ supervised release for illegally importing fentanyl from China for the purpose of making and selling counterfeit prescription pills.
According to court documents, in November 2017, a U.S. Postal Inspection Service inspector discovered a suspicious package addressed to Schantz’s girlfriend at the U.S. Postal Service Portland Air Cargo Center. The inspector noted that the package was listed as containing a “pants zipper,” but felt like it contained a powdery substance. Agents from Homeland Security Investigations and officers from the Portland Police Bureau’s Drugs and Vice Division were called to investigate.
After finding that the package contained a white powdery substance, investigators transported it to the Oregon State Police Laboratory for further examination in a safe environment. The lab later determined the package contained approximately 102 grams of para-fluoroisobutryl fentanyl, a powerful opioid and Schedule I controlled substance. Investigators soon learned that between August and November 2017, there were 16 additional parcels shipped to Schantz’s residence. Of those, at least four were associated with known sources of controlled substances and pill manufacturing equipment.
On November 29, 2019, investigators conducted a controlled delivery of the package, now containing an inert substance, to Schantz’s residence. Investigators searched Schantz’s residence and seized two pill presses, a Ruger semi-automatic .22 caliber handgun, 245 rounds of .22 caliber ammunition, approximately 800 assorted counterfeit oxycodone and valium pills, various binding agents, die casts, digital scales and $1,142 in cash. When interviewed, Schantz admitted ordering fentanyl on the internet and having it shipped to his residence in his girlfriend’s name to avoid detection.
On July 16, 2019, Schantz pleaded guilty to one count of unlawfully importing a controlled substance.
This case was investigated by the High Intensity Drug Trafficking Area Interdiction Taskforce, Homeland Security Investigations, the U.S. Postal Inspection Service and the Portland Police Bureau Drugs and Vice Division. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
The Oregon HIDTA program was established by the White House Office of National Drug Control Policy (ONDCP) in June of 1999. In 2015 the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 14 counties and the Warm Springs Indian Reservation. Counties in the HIDTA include Oregon’s Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock and Canyon counties.
Opioid abuse affects communities across the nation. The CDC reports that in 2017, there were 70,237 drug overdose deaths in the U.S. Opioids and synthetic opioids were alone responsible for 47,600 overdose deaths or nearly 68% of all overdoses. Drug overdose is now the leading cause of injury or death in the United States.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Philadelphia Man Sentenced for Series of 2018 Hobbs Act Robberies in North and Northeast PhiladelphiaRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that John Karl Smith, 26, of Philadelphia, Pennsylvania was sentenced to 84 months’ incarceration and three years’ supervised release by United States District Judge Paul S. Diamond for the robbery of multiple businesses in Philadelphia during the summer of 2018.
This Hobbs Act robbery case charged the defendant with entering commercial businesses in North and Northeast Philadelphia during July and August of 2018. He entered each business, approached the clerk, produced a knife, and demanded money. The defendant robbed six businesses during his crime spree – including a corner store, multiple cell phone stores, and a pizza restaurant – and he pled guilty to six counts of Hobbs Act robbery in May 2019.
“The complete disregard that Smith demonstrated for the safety and well-being of others is appalling,” said First Assistant U.S. Attorney Williams. “The employees of these stores were simply doing their jobs, when Smith terrorized them just to make a few bucks. The streets are safer now that the defendant will be spending the next few years behind bars.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
Owner of Detroit-Area Health Care Clinics Pleads Guilty to Drug Diversion SchemeRead the Press Release
The owner of a Detroit-area pain clinic and physical therapy clinic pleaded guilty today for her role in a drug diversion scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Shirley Douglas, 70, of West Bloomfield, Michigan, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. District Judge David Lawson of the Eastern District of Michigan. Sentencing has been scheduled for Dec. 19, 2019, before Judge Lawson.
As part of her guilty plea, Douglas admitted that, as the owner and operator of Abyssinia Love Knot Physical Therapy L.L.C., which was purportedly a pain clinic and a physical therapy clinic, she conspired with her co-conspirators to employ physicians who would write medically unnecessary prescriptions for controlled substances, such as oxycodone, oxymorphone and other controlled substances. Douglas facilitated patient visits with doctors, and accepted payment from patients and patient recruiters/marketers in exchange for physician visits at which she knew that prescriptions for medically unnecessary controlled substances would be provided. Medicare beneficiaries were also required to sign physical therapy documents as a condition to receive prescriptions for controlled substances, regardless of medical necessity.
The total drug amount attributable to Douglas is in excess of 500,000 oxycodone pills, she admitted.
This case was investigated by the DEA and HHS-OIG. Trial Attorney Patrick Suter and Assistant Chief Malisa Dubal of the Criminal Division’s Fraud Section are prosecuting the case. The case was previously prosecuted by Assistant Chief Drew Bradylyons and Trial Attorney Thomas Tynan.
The Fraud Section leads the Medicare Fraud Strike Force, 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, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Oregon Man Sentenced to 14 Months in Federal Prison for Instagram Threats Against Portland Mayor Ted Wheeler (Photo)Read the Press Release
PORTLAND, Ore.—Kermit Tyler Poulson, 40, was sentenced today to 14 months in federal prison and one year of supervised release for transmitting threatening communications with the intent to extort Portland Mayor Ted Wheeler.
“Using social media to threaten violence against any person regardless of that person’s position in our community is wrong. The Portland JTTF actively investigates all threats of violence,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Federal law enforcement will continue working with our state and local partners to respond quickly to threats. These partnerships prevent many horrific acts of violence from occurring.”
“True threats victimize individuals and undermine the foundations that make our country a place where we can disagree, debate and find common ground,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “The FBI's Joint Terrorism Task Force and our partners remain committed to keeping our shared community free of violence and intimidation.”
According to court documents, on October 9, 2018, Poulson posted multiple threatening comments on Mayor Wheeler’s personal Instagram account. Poulson threatened to firebomb the mayor’s home and office if he did not immediately fire Portland police officers recently involved in an on-duty shooting. Investigators tracked the IP address associated with the comments to a Portland residence where Poulson was staying. Poulson was present when investigators searched the property and after initially making a number of misleading statements, admitted that he alone was responsible for the comments.
On July 3, 2019, Poulson pleaded guilty to one count of transmitting threatening communications with the intent to extort Mayor Wheeler.
This case was investigated by the Portland FBI Joint Terrorism Task Force (JTTF) and the Portland Police Bureau (PPB). The Portland JTTF includes FBI special agents and more than a dozen state and local law enforcement officers.
Screenshot from Instagram showing threats made.Operation Shutdown Corner: Law Enforcement Dismantles Multi-State Methamphetamine Pipeline from Southern California to West VirginiaRead the Press Release
17 Individuals Indicted as part of Drug Trafficking Organization
Over 200 Law Enforcement Officers from Multiple States Involved in Takedown
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced a major takedown today of drug traffickers resulting in the dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing pounds of methamphetamine from San Diego, California to West Virginia. The indictments and subsequent arrests are the result of a long-term investigation led by Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the United States Marshals Service, the Beckley/Raleigh County Drug and Violent Crimes Task Force, which is made up of law enforcement officers from the Raleigh County Sheriff’s Office, the Beckley Police Department and the West Virginia State Police, the Central West Virginia Drug Task Force and the Southern Regional Drug and Violent Crimes Task Force. The operation, dubbed “Operation Shutdown Corner,” resulted in two indictments charging 17 individuals in the DTO alleged to have distributed methamphetamine and heroin.
“Today’s coordinated takedown as part of Operation Shutdown Corner is a significant achievement in our continued effort to rid West Virginia of the drug traffickers, drug dealers and poison peddlers that have caused so much pain and despair among our people,” said United States Attorney Mike Stuart. “From San Diego to West Virginia, today’s operation shutdown a major drug trafficking organization. Over 200 law enforcement agents from more than five states were involved in this operation without incident and according to plan. I want to thank the tremendous investigative and law enforcement efforts of all our partners at the federal, state and local levels. Great work. As a result of these indictments and arrests, West Virginia communities and West Virginia families are safer today than they were yesterday. We continue with a sense of urgency to take down and remove those who cause only harm and despair in the interests of greed and making money.”
"Disrupting drug trafficking organizations like this one is a critical part of the FBI's mission. The heroin, meth and guns seized are dangerous and can lead to dangerous consequences," said FBI Pittsburgh Special Agent in Charge Robert Jones. "These arrests should send a message to other groups who think they can do business in West Virginia. The FBI and our law enforcement partners are pooling all our resources to stop you and the violence that comes with the drug trade you deem as profitable."
The long-term investigation revealed that a stream of packages containing pounds of methamphetamine were being shipped from the San Diego, California area and being received in the Southern District of West Virginia using common carriers, such as the United States Postal Service and the United Parcel Service (UPS). Several packages were intercepted by law enforcement, and using law enforcement tools, the full nature and scope of the DTO was revealed. The dismantling of the DTO resulted in the seizure of large quantities of controlled substances, illegally possessed firearms, and United States currency, which represents proceeds of the DTO’s illegal operations. It is believed that the shutting down of this DTO will significantly curtail the methamphetamine scourge in Raleigh County and the surrounding area.
The investigation was a collaborative effort between federal, state and local law enforcement partners. Today’s actions would not have been possible without the seamless collaboration of federal, state, and local law enforcement agencies. The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: SDWVNews and USAttyStuart
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Ohio Man Arrested for Orchestrating $10 Million Dollar Scheme to Defraud Health Care Benefit ProgramsRead the Press Release
NEWARK, N.J. – An Ohio man was arrested today for his role in a large-scale, multi-level marketing scheme to defraud private and federally funded health care benefit programs of at least $10 million through the submission of claims for medically unnecessary prescriptions for compounded medications, U.S. Attorney Craig Carpenito announced.
Kent Courtheyn, 35, of Kent, Ohio, owner and operator of two companies involved in the sales and marketing of compounded medications, IntegriMed Solutions LLC (IntegriMed) and KA Compounding LLC (KA Compounding), was charged by a federal grand jury in a two-count indictment with conspiring to commit health care fraud and conspiring to violate the Anti-Kickback Statute. He is scheduled to have his initial court appearance today in federal court in Ohio.
According to documents filed in this case and statements made in court:
From as early as July 2014 through July 2016, Courtheyn, a former medical device sales representative, ran a scheme to defraud federally funded health care benefit programs, such as TRICARE, as well as privately funded health care benefit programs. TRICARE is a health care entitlement program of the U.S. Department of Defense (DoD) Military Health System that provides coverage for DoD beneficiaries worldwide, including active duty service members, National Guard and Reserve members, retirees, their families, and survivors.
Courtheyn recruited individuals to submit false and fraudulent claims for medically unnecessary compounded medications, such as pain creams, scar creams, wound creams, and metabolic vitamins, without regard to medical necessity. Compounding is a practice in which a licensed pharmacist or physician combines, mixes or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. Pharmacies engaging in the practice are referred to as “compounding pharmacies.” Generally, compounded medications are not approved by the Food and Drug Administration (FDA), but can be prescribed by a physician when an FDA-approved drug does not meet the health needs of a particular patient. Compounded medications are supposed to be tailored to a patient’s particular medical need.
Courtheyn and others targeted individuals with health insurance plans that paid for compounded medications and had high reimbursements, and convinced these individuals to obtain compounded medications through their health insurance plan regardless of medical necessity.
Courtheyn was partners with Steven M. Butcher, a New York resident who was the owner and operator of another marketing company, MedMax LLC, involved in the marketing of medically unnecessary compounded medications. Courtheyn and Butcher had relationships with various compounding pharmacies, either directly or indirectly, through billing and distribution companies, which had their own network of compounding pharmacies. Courtheyn and Butcher sent prescriptions directly to a compounding pharmacy or to a billing and distribution company, which referred prescriptions to a particular compounding pharmacy and submitted claims to the appropriate health insurance plan on behalf of that pharmacy. In return for steering prescriptions to certain compounded pharmacies, Courtheyn and Butcher received a percentage of the reimbursement received by the pharmacy for each paid claim. Health insurance plans were reimbursing compounding pharmacies from $3,000 and $43,000 for each compounded prescription.
To maximize profit, Courtheyn operated IntegriMed and KA Compounding as a multi-level marketing company. He recruited several individuals as “sales representatives” who were paid a certain percentage of the reimbursement amount for each medically unnecessary compounded medication the sales rep caused to be filled and billed to a paying health insurance plan. If a sales representative was a beneficiary of a paying health insurance plan, Courtheyn also paid these individuals for obtaining their own or their family members’ medically unnecessary compounded medications.
The compounded medications Courtheyn and Butcher marketed and sold were not individualized to address the specific therapeutic needs of a specific patient. Instead, he chose drugs to be included in a compounded medication in order to maximize reimbursement and profit and not based on medical necessity. To get the medically unnecessary medications prescribed, Courtheyn and Butcher contracted and paid telemedicine companies with the expectation that their telemedicine physicians would prescribe compounded medications regardless of medical need. In total, Courtheyn defrauded health care benefit programs of at least $10 million, including TRICARE, which was defrauded at least $3.5 million.
The count of conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison; conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years. Both offenses are also punishable by a fine of $250,000, or twice the gross gain or loss from the offense.
Butcher pleaded guilty on Feb. 14, 2018, before U.S. District Judge John Michael Vazquez in Newark federal court to conspiracy to commit health care fraud and conspiracy to violate the Anti-Kickback Statute. He admitted to defrauding health care benefit programs of $45 million. Butcher is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division in Newark.
Defense counsel: Michael Elliot Esq. and Mindy Sauter Esq, Dallas, Texas
Myrtle Beach Man Sentenced to Nearly 5 Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that Jadarius Oshar McCray, 23, of Myrtle Beach, was sentenced to nearly 5 years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on April 22, 2018, an officer with the Myrtle Beach Police Department responded to a 911 call about a man with a gun. The caller described a subject who approached the caller and asked for money the subject thought the caller owed him. When the caller told the subject he didn’t know the subject and didn’t owe him any money, the subject pointed a firearm at him and threatened him. When a group of women walked through a nearby parking lot, the subject fled on foot. An officer located McCray, who matched the subject’s description, walking in a parking lot near the incident location and told McCray to stop. McCray turned around, looked at the officer, and then disappeared around a building corner for a few seconds before returning into the officer’s view. Officers detained McCray and located an unloaded .380 caliber handgun in the brush directly behind where McCray had disappeared.
Federal law prohibits McCray from possessing firearms and ammunition because of his prior felony convictions for pointing and presenting a firearm and unlawful carrying of a weapon.
United States District Judge Mary G. Lewis sentenced McCray to 57 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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Monroe County Man Charged with Cocaine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fausto Hernandez, age 41, of Tobyhanna, Pennsylvania, was indicted on September 17, 2019, by a federal grand jury for cocaine trafficking.
According to United States Attorney David J. Freed, the indictment charges Hernandez with four counts of distribution of cocaine, and one count of possession with intent to distribute cocaine between June 11 and August 6, 2019, in Monroe County.
This matter was investigated by the Drug Enforcement Agency (DEA) and the Pocono Mountain Regional Police Department. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum sentence under federal law is up to twenty in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Minneapolis Man Sentenced to Prison for Heroin Trafficking, Resulting in the Shooting Deaths of Two Individuals on the Red Lake ReservationRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of BRYAN BOARDMAN, a/k/a “Boon,” 25, to 78 months in prison for his role in a heroin distribution conspiracy that resulted in the shooting deaths of two individuals. BOARDMAN, who pleaded guilty on April 23, 2019, was sentenced before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota. BOARDMAN’s co-defendants FRANKLIN JACKSON, 23, was sentenced on September 11, 2019, to 21 months in prison, and KRISTOPHER SULLIVAN, 24, is scheduled to be sentenced on October 9, 2019.
“Today’s sentence underscores our message that drug trafficking and gun violence will not be tolerated,” said U.S. Attorney Erica MacDonald. “Combatting violent crime in our Native American communities remains a top priority for my office. We are committed to working with our tribal law enforcement partners to improve public safety in Indian Country.”
“This defendant and his co-conspirators are in prison thanks to the good work of the Headwaters Safe Trails Task Force,” said Jill Sanborn, Special Agent in Charge of the FBI’s Minneapolis field office. “This task force in northern Minnesota targets, disrupts and dismantles violent crime of all kinds including the sale and distribution of heroin. The FBI and its task force partners will continue to work these cases with urgency,” she said.
According to the defendant’s guilty plea and documents filed in court, between October 1, 2018, and October 21, 2018, BOARDMAN, JACKSON, and SULLIVAN conspired with each other to distribute heroin on the Red Lake Indian Reservation. In the early morning hours of October 21, 2018, BOARDMAN, JACKSON, and SULLIVAN met in a trailer home on the Red Lake Indian Reservation belonging to JACKSON’s girlfriend. The three defendants made preparations to sell heroin later that day, including contacting potential customers to let them know that heroin was available for sale at the trailer home. The defendants’ drug trafficking activities were interrupted at approximately 6:30 a.m. that morning when three armed, masked men broke into the trailer home in an apparent armed robbery. BOARDMAN drew a 9 millimeter pistol and fired eight shots, killing two of the intruders. The third intruder was wounded in the leg by the gunfire and fled from the scene.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Julie E. Allyn are prosecuting the case.
Defendant Information:
BRYAN BOARDMAN, a/k/a “Boon,” 25
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute heroin, 1 count
- Using and carrying a firearm during a drug trafficking crime, 1 count
Sentenced:
- 78 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Milton-Freewater Man Sentenced to 10 Years in Federal Prison for Trafficking Heroin in Eastern Oregon (Photo)Read the Press Release
Guns, drugs, and cash found in the residence. Gun found in vehicle.PORTLAND, Ore.—Adan Torres-Nieves, 45, of Milton-Freewater, Oregon, was sentenced today to 120 months in federal prison and five years’ supervised release for possessing with the intent to distribute nearly four pounds of heroin in Eastern Oregon.
According to court documents, in early 2017, investigators from the Blue Mountain Narcotics Enforcement Team (BENT) began investigating Torres-Nieves who appeared to be supplying a low-level drug dealer named Carlos Cisneros-Razo. Investigators established probable cause to arrest Torres-Nieves and execute search warrants on both of his and Cisneros-Razo’s residences.
During the search of Torres-Nieves’s residence in Milton-Freewater, investigators found approximately four pounds of heroin, a pound of methamphetamine, and five pounds of cocaine; $21,046 in cash; digital scales; a stolen revolver and a camouflage ballistic vest. A second revolver was found in Torres-Nieves’ bedroom.
On May 6, 2019, Torres-Nieves pleaded guilty to one count of possession with intent to distribute heroin. During sentencing, U.S. District Court Judge Michael H. Simon ordered Torres-Nieves to forfeit two firearms seized from his residence and the $26,166 seized from his person and residence.
On October 1, 2018, Cisneros-Razo was sentenced to 60 months in prison for possession with intent to distribute methamphetamine.
This case was investigated by BENT and the FBI and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Mercer County Man Convicted of Being Felon in Possession of FirearmRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was convicted today of being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Rasheed McNair, 40, of Ewing, New Jersey, was convicted following a two-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. The jury deliberated for less than one hour before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
On Feb. 18, 2018, two Trenton Police detectives in the Street Crimes Unit were driving through the area of Oakland Street and Hoffman Avenue in Trenton when one of them observed McNair standing in an open doorway in a public housing complex and holding what was later identified as a Smith & Wesson .40 caliber semiautomatic handgun.
McNair tucked the handgun into his jacket and ran up the stairwell of the building. After giving chase, one of the detectives observed McNair remove the handgun from inside his jacket and attempt to hide it under a doormat in front of an apartment. The other detective retrieved the firearm from under the doormat and rendered it safe. The weapon was later found to be loaded with 11 rounds of ammunition in the magazine and one round in the chamber, and its serial number had been obliterated.
The charge of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 9, 2020.
U.S. Attorney Carpenito credited the Trenton Police Department, under the direction of Police Director Sheilah A. Coley; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel: Mark A. Fury Esq., Mt. Holly, New Jersey
Marion man charged with child exploitation after he allegedly induced a 13-year-old to engage sexual activityRead the Press Release
A Marion man was charged in federal court for child exploitation after he induced a 13-year-old to engage sexual activity.
Tyler Foreman, 21, was charged via criminal information with one count of coercion and enticement of a minor and one count of receiving visual depictions of a minor engaged in sexually explicit conduct.
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 case is being prosecuted by Assistant U.S. Attorney Danielle K. Angeli following an investigation by the Federal Bureau of Investigation.
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.
Man Sentenced to Prison for Scheme to Defraud Elderly Man of $157,000Read the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to six years in prison for exploiting an elderly man’s diminished mental capacity to defraud him of nearly $157,000.
According to court documents, John Michael Gatchell, 55, facilitated a marriage between the elderly man and a woman with whom Gatchell had a long-term relationship in order to gain access to the elderly man’s money and property. Gatchell induced the elderly man to make a down payment on a Jaguar that Gatchell and a family member drove for about 10 months before it was repossessed by the lender when the loan went into default.
Gatchell also induced the elderly man to obtain two mortgage loans and then diverted most of the proceeds to the benefit of himself and others. He subsequently induced the elderly man to sell the property that secured the loans and again diverted most of the proceeds to himself and others. Gatchell used these monies that he fraudulently diverted to himself to purchase concert series tickets, pay delinquent bills, and make a security deposit for a house he leased, among other things.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-49.