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18 September 2019
Man Indicted for Possession of a Firearm by a Convicted FelonRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment today charging a Richmond man with possession of a firearm by a convicted felon.
According to the indictment, in May 2017, Travis Aaron Ball aka “Wiz,” 30, possessed a .25 caliber firearm after previously being convicted of a crime punishable by imprisonment for a term exceeding one year.
Ball is charged with possession of a firearm by a convicted felon. If convicted, he faces a maximum penalty of 10 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.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement. Assistant U.S. Attorneys Erik S. Siebert and Stephen E. Anthony are prosecuting 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. 3:19-cr-128.
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.
Man Indicted for Armed Robbery of Credit UnionRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging a Richmond man with the armed robbery of Call Federal Credit Union in Midlothian.
According to the indictment, Okello Chatrie, 24, entered the Call Federal Credit Union in Midlothian, in May, demanding money at gunpoint. Chatrie robbed the Credit Union of nearly $200,000.
Chatrie is charged with forced accompaniment and brandishing a firearm during the armed robbery. If convicted, he faces a mandatory minimum of 10 years in prison for the forced accompaniment and a mandatory minimum of seven years in prison for brandishing a firearm during the robbery. The maximum penalty is life imprisonment. 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.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorneys Kenneth Simon and Peter S. Duffey are prosecuting 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. 3:19-cr-130.
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.
Longview Ambulance Operator Guilty of Health Care FraudRead the Press Release
TYLER, Texas – A 62-year-old Longview, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown.
Joseph Valdie Kimble pleaded guilty to health care fraud on Sep. 11, 2019, before U.S. Magistrate Judge John D. Love.
Kimble’s plea was announced today during a press conference held in Dallas with Texas U.S. Attorneys and the Assistant Attorney General of the Justice Department’s Criminal Division. A total of 58 individuals across all four federal districts in Texas were charged 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.
According to information presented in court, 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 either a beneficiary be bed-confined and it is documented that other methods of transportation are contraindicated; or 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 federal prison and $751,986.80 in restitution.
“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.”
A sentencing hearing will be scheduled at a later date.
This case was investigated by U.S. Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Lehigh Valley Drug Trafficker Sentenced for Distributing Variety of Illegal Drugs Including Meth, Cocaine, “Crack Cocaine” and MarijuanaRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Jerome Lamont Duggan, 46, of Bethlehem, Pennsylvania was sentenced to 324 months’ imprisonment, five years’ of supervised release and a $2,500 fine by United States District Judge Joseph F. Leeson, Jr., for his crimes related to trafficking a multitude of drugs throughout the Lehigh Valley.
From about March through early-May 2016, Duggan and his co-conspirators possessed with intent to distribute and distributed illegal drugs including approximately 2.4 kilograms of methamphetamine in various locations throughout Northampton and Lehigh Counties, Pennsylvania. In March 2019, a jury found Duggan guilty of all counts of the Superseding Indictment, including one count of conspiracy to distribute 500 grams or more of methamphetamine, and counts charging possession with intent to distribute: (a) 50 grams or more of methamphetamine; (b) 500 grams or more of cocaine; (c) 28 grams or more of cocaine base (“crack”); and (d) approximately 772 grams of marijuana.
“Duggan and other members of this drug organization pumped huge quantities of dangerous drugs into our community,” said First Assistant U.S. Attorney Williams. “These traffickers essentially delivered destruction to our communities. Our office is determined to investigate and convict these criminals, and put them behind bars.”
“Duggan was convicted and sentenced for distributing a substantial amount of dangerous drugs such as methamphetamine, cocaine, crack cocaine, and marijuana across the Lehigh Valley,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA, working with our partner federal, state, and local law enforcement agencies will continue to identify and investigate drug-traffickers like Duggan that seek to poison our communities.”
The case was investigated by Drug Enforcement Administration-Allentown Resident Office, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania State Police, Lehigh County District Attorney’s Office Detectives, and Allentown and Bethlehem Police Departments, and is being prosecuted by Assistant United States Attorney Kishan Nair.
Leader of Nationwide Fraud Scheme Sentenced to 60 MonthsRead the Press Release
EVANSVILLE - United States Attorney Josh J. Minkler announced today that Derek D. Knight, 25, Canton, Michigan, was sentenced to 60 months in prison by United States District Judge Richard L. Young in Evansville, Indiana. Knight previously pleaded guilty to charges involving credit card fraud and aggravated identity theft. Codefendant Dylan C. Garrett, 26, Taylor, Michigan, also pleaded guilty to the same charges and was previously sentenced to four years imprisonment.
On October 21, 2017, Knight and Garrett were arrested by the Evansville Police Department following a traffic stop. During a search of the vehicle, officers found more than 83 different credit cards in six different names, fraudulent driver’s licenses, two computers, and a credit card Magstripe reader/writer. Knight purchased credit and debit card numbers from the Dark Web and used them to make fraudulent credit cards.
Knight was the leader of a group who used the fraudulent credit cards and driver’s licenses in at least 13 different states, including Indiana. The fraudulent credit cards were used to purchase Visa debit cards and gift cards for Lowes, iTunes, and other retail merchants. Knight, Garrett, and other members of the criminal conspiracy made more than 100 fraudulent purchases at over 60 stores totaling more than $107,000.
"Nothing good happens on the Dark Web," said Minkler. "Those who use the internet for criminal intent in violation of federal law will be identified and prosecuted. The U.S. Attorney’s Office seeks to protect individuals from becoming victims of identity theft and promotes businesses having safeguards in place to prevent fraud."
This case was investigated the Federal Bureau of Investigation, United States Secret Service and Evansville Police Department.
"Identity theft devastates people’s credit and can be time-consuming and costly for victims to restore their credit and clear their name after having their identity compromised," said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. "This sentence demonstrates that no matter how sophisticated and pervasive a scheme may be, the FBI and our partners are dedicated to identifying, investigating and stopping perpetrators who take advantage of citizens."
"Cyber enabled Credit Card Fraud investigations utilizing the ‘Dark Web’ remain a top priority for the Secret Service," said Andrew Campion, Assistant Special Agent in Charge of the U.S. Secret Service Indianapolis Field Office. "We are committed to protecting our nation’s financial institutions and the citizens of Indiana. I would like to thank the U.S. Attorney’s Office, the FBI and Evansville Police Department for their cooperation and partnership in this case."
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Knight and Garrett will each serve three years of supervised release following their imprisonment.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to prosecute those individuals engaged in fraudulent activity and identity fraud through the use of bogus access devices purchased on the dark web other advanced technology. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.5 and 4.6.
Leader of Interstate Drug Trafficking and Money Laundering Conspiracy Is Sentenced to 14 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Pierre Buissereth, 37, of Indian Land, South Carolina, to 14 years in prison, to be followed by four years of supervised release, for his leadership role in a cross-country drug trafficking and money laundering conspiracy, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Buissereth was also ordered to pay a money judgment of $1 million for the value of the marijuana involved in the conspiracy.
U.S. Attorney Murray is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents and today’s sentencing hearing, beginning as early as August 2014 to February 2015, Buissereth was the leader of a marijuana trafficking conspiracy. Court records show that, during the relevant time period, Buissereth utilized a network of couriers who transported tens of thousands of dollars in luggage via commercial aircraft to San Francisco, California, where they purchased approximately one ton of high-grade marijuana. The couriers then transported the marijuana to Charlotte on commercial flights.
Over the course of the investigation, law enforcement seized 10 pounds of marijuana from a local drug distributor in November 2014; 46 pounds of marijuana at the Charlotte airport in February 2015; and $96,950 in cash at the San Francisco airport in February 2015. Flight records also show that the couriers made more than 100 trips to San Francisco with quick turnaround flights. In addition, law enforcement determined that the conspiracy laundered more than $460,000 in drug proceeds.
Buissereth is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
This prosecution is part of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray commended HSI and CMPD for their investigation of this case, and thanked the Pineville Police Department, the Huntersville Police Department, and the York County, South Carolina, Sheriff’s Office.
Assistant U.S. Attorney Steven R. Kaufman coordinated the investigation and prosecution of this OCDETF operation.
Kansas Man Probably Shot Himself with Gun He Was Prohibited from HavingRead the Press Release
TOPEKA, KAN. – A Topeka man who appears to have accidentally shot himself was sentenced Tuesday to 30 months in federal prison for unlawful possession of a gun, U.S. Attorney Stephen McAllister said.
Keeno D. Collins, 26, Ozawkie, Kan., pleaded guilty to one count of unlawful possession of a firearm by a convicted felon. In his plea, he admitted Topeka police found him wounded on the grounds of the Topeka West High School. He had a gunshot wound to his upper left arm. Collins told police he didn’t know what had happened. After police found a gun nearby, they matched DNA on the weapon to Collins. He was prohibited from possessing a firearm because of a 2015 conviction in Shawnee County District Court on a felony drug charge.
McAllister commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Stephen Hunting for their work on the case.
Jury Convicts Cincinnati Man of 8 Drug and Firearms ChargesRead the Press Release
CINCINNATI – A U.S. District Court jury here today convicted Qian “Will” Williams, 38, of Cincinnati, of distributing heroin and cocaine from a house in northeast Cincinnati, and of possessing firearms in furtherance of drug crimes.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), Cincinnati Police Chief Eliot K. Isaac and Boone County Sheriff Michael A. Helmig announced the verdict reached today following a jury trial that began September 11 before U.S. District Judge Michael R. Barrett.
Testimony by witnesses and evidence presented during the trial showed that for approximately 15 months Williams distributed heroin and cocaine he obtained from sources in Indiana and elsewhere.
Task force officers executed search warrants at Williams’ property on Randomhill Drive in August 2017. They seized more than a kilogram of heroin, more than 100 grams of cocaine, drug paraphernalia including a kilogram press, six firearms including two handguns, large-capacity magazines, and ammunition. Agents also seized more than $80,000 in cash and jewelry while executing the search warrants.
The jury found Williams guilty of two counts of distribution of a controlled substance (up to 20 years), one count of possession of a kilogram or more of heroin with intent to distribute it (at least 10 years up to life), one count of possession of 100 or more grams of heroin with intent to distribute it (five to 40 years), one count of possession of cocaine with intent to distribute it (up to 20 years) and one count of maintaining a drug-involved premises (up to 20 years).
The jury also convicted Williams of being a felon in possession of a firearm, punishable by up to 10 years in prison, and one count of possession of a firearm in furtherance of a drug trafficking crime, punishable by at least five years and up to life in prison.
A federal grand jury indicted and agents arrested Williams in October 2017. He has been in custody since his arrest and was ordered to remain in custody until he is sentenced. Judge Barrett will schedule a date for sentencing.
U.S. Attorney Glassman commended the cooperative investigation by the DEA, Cincinnati Police Department and Boone County Sheriff’s Office, as well as assistant United States Attorneys Karl P. Kadon and Ebunoluwa Taiwo, who are representing the United States in this case.
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Indictments: Convicted Felons Had GunsRead the Press Release
TOPEKA, KAN. – Two Kansas men with prior felony convictions were charged in separate cases today with unlawfully possessing firearms, U.S. Attorney Stephen McAllister said.
Gwyndell B. Declerck, Jr., 32, Topeka, Kan., is charged with one count of unlawful possession of a firearm by a felon. The indictment alleges that on Aug.17, 2019, Declerck unlawfully possessed a .40 caliber handgun. He was prohibited from having a gun because of prior convictions, including a 2010 conviction in Shawnee County District Court for criminal possession of a firearm.
Declerck was arrested Aug. 17, 2019, after Topeka police reported responding to callers complaining their house was hit by bullets.
If convicted Declerck faces up to 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Jeffrey Lamont Armstrong, 38, Salina, Kan., is charged with one count of unlawful possession of a firearm by a felon, one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Feb. 22, 2019, in Saline County, Kan.
If convicted, Armstrong could face up to 10 years in federal prison and a fine up to $250,000 on the first firearm charge, up to 20 years and a fine up to $1 million on the drug charge and not less than five years and a fine up to $250,000 on the second firearm charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Lindsey Debenham is prosecuting.
Both cases are being prosecuted under the Project Safe Neighborhoods initiative, a Justice Department program aimed at reducing gun violence. Last year, the U.S. Attorney’s Office for the District of Kansas prosecuted 161 defendants who were found guilty of federal firearms violations.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Holmes County company fined more than $165,000 for refusing to allow FDA investigators to inspect its facilitiesRead the Press Release
A Holmes County company that advertised it manufactured tinctures, salves and herbal formulas was fined more than $165,000 for refusing to allow FDA investigators to inspect its facilities.
Precision Herbs LLC was ordered to pay a fine of $166,965 –- which represented the profits of their business after they refused FDA Inspection. Original Design Wellness was fined $2,000. Company officials Sharon Overman and Eric Pierce were both sentenced to six months of probation and ordered to pay a $2,000 fine.
All parties previously pleaded guilty to one count of refusal of inspection and one count of introduction of adulterated drugs and devices.
According to the criminal information filed in U.S. District Court:
Precision Herbs advertised it manufactured “alcohol-based tinctures, salves and vegetable-based encapsulations of unique herbal formulas” that “address(ed) individual wellness needs and improved daily living.”
Original Design Wellness Center was associated with Precision Herbs and distributed Precision Herbs’ products. Overman, 75, and Pierce, 50, owned both companies.
The FDA obtained a warrant on January 15, 2016 to inspect Precision Herbs’ facilities in Killbuck and Millersburg, Ohio. Original Design Wellness Center was operated out of the Millersburg facility.
FDA investigators, accompanied by U.S. Marshals, attempted to conduct an inspection of both locations on January 21, 2016. Overman and Pierce refused the inspection of the Millersburg facility. Pierce initially allowed the inspection of the Killbuck facility until a third party arrived and disrupted it. Pierce allowed the disruption and the inspection was terminated.
The companies, Overman and Pierce continued to sell products that were manufactured from a location that refused to permit inspection by the FDA. This took place between January 21, 2016 and May 24, 2017.
“Today’s announcement demonstrates that those who purposely subvert the regulatory functions of the FDA by obstructing inspections will be held accountable for their actions,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “We value the efforts of the Department of Justice for vigorously pursuing the prosecution of this matter.”
This case was investigated by the FDA and prosecuted by Assistant U.S. Attorney Alejandro Abreu.
Hartford Man Sentenced to Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARTIN NUNEZ, 41, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 21 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and ammunition.
According to court documents and statements made in court, on October 15, 2018, state parole officers, with the assistance of Hartford Police, conducted a compliance check of Nunez at his residence. A search of the residence revealed a .380 caliber handgun, a firearm magazine, and five rounds of ammunition in a dresser drawer in Nunez’s bedroom. Nunez was arrested at that time.
Nunez’s criminal history includes a state conviction for assault in the first degree, and multiple convictions for distributing narcotics.
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.
On June 27, 2019, Nunez pleaded guilty to one count of possession of a firearm by a convicted felon.
Nunez has been detained in state custody since his arrest. He will begin serving his 21-month federal sentenced today.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
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.
Harrisburg Man Sentenced to 77 Years’ Imprisonment for Firearms Offenses and Three Armed RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Maurice L. Ross, age 35, of Harrisburg, Pennsylvania, was sentenced on September 17, 2019, to 924 months’ imprisonment followed by five years on supervised release, by United States District Court Judge Yvette Kane for unlawful possession of a firearm as a convicted felon and three armed robberies.
Judge Kane also ordered Ross to pay restitution in the amount of $2,147 to Brookwood Mart and the convenience store clerk victims.
According to United States Attorney David J. Freed, Ross was convicted on November 6, 2018 after a two-day jury trial, of three counts of a felon in possession of a firearm (a Charter Arms .38 caliber revolver), three counts of interference with commerce by threats or violence, and three counts of carrying and brandishing a firearm in furtherance of a crime of violence.
Ross robbed the Brookwood Mart, located in Harrisburg, by gunpoint on three separate occasions on December 8, 17, and 22, 2016. Each time, he stole hundreds of dollars of cash from the store registers. Two of the three times, he also stole dozens of instant lottery tickets. The robberies occurred several months after Ross was released from federal prison after serving five years for possession with intent to distribute cocaine base and possessing a firearm in furtherance of drug trafficking.
There was surveillance footage from the robberies, but Ross was heavily hooded and masked, so identification was a significant issue, but Ross cashed some of the stolen lottery tickets the morning after one of the robberies at another convenience store, before the tickets could even be reported stolen. The PA Lottery provided the location, date and time of the cashings, and Harrisburg detectives were able to review in-store surveillance videos at the store where the tickets were cashed. That surveillance footage revealed a license plate that led detectives to Ross’ residence where a search warrant was executed. Detectives found the very distinctive gun Ross used in all three robberies, a shirt tied like a mask, a pair of black boots, a black knit hat and a flat-brimmed hat seen in surveillance footage.
The case was investigated by the Harrisburg Police Department. Assistant United States Attorneys James T. Clancy and Carl Marchioli prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Charged with Producing and Distributing Child Pornography
Jeremy Schenck, 24, Madison, Wisconsin, is charged with three counts of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, and one count of distributing such a visual depiction. The indictment alleges that between September 2017 and August 2018, he produced three images of child pornography, and that on November 6, 2018, he used Kik messenger to send an image to a person in North Dakota.
If convicted, Schenck faces a mandatory minimum of 15 years and a maximum of 30 years on each production count. He faces a mandatory minimum of five years and a maximum of 20 years on the distribution count. The charges against him are the result of an investigation by the Madison Police Department and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
Madison Man Charged with Producing Child Pornography
Diorian Smith, 29, Madison, Wisconsin, is charged with two counts of using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. The indictment alleges that between November 2017 and November 2018, he produced child pornography videos using a cell phone.
If convicted, Smith faces a mandatory minimum sentence of 15 years and a maximum of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Madison Police Department. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
DeForest Man Charged with Receiving Child Pornography
Michael Hinze, 43, DeForest, Wisconsin, is charged with five counts of receiving visual depictions of a minor engaged in sexually explicit conduct. The indictment alleges that Hinze received the child pornography from September 28 to 30, 2018.
If convicted, Hinze faces a mandatory minimum sentence of five years and a maximum of 20 years in federal prison on each count. The charges against him are the result of an investigation by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal Investigation, and DeForest Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
The indictments against Smith, Schenck, and Hinze have been 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. 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.
Wisconsin Rapids Man Charged with Distributing Methamphetamine
David Shamont Lindsey, 35, Wisconsin Rapids, Wisconsin, is charged with distributing 50 grams or more of methamphetamine. The indictment alleges that he distributed the methamphetamine on May 7, 2019.
If convicted, Lindsey faces a mandatory minimum of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Central Wisconsin Drug Task Force, Wisconsin Rapids and Plover Police Departments, Wisconsin Department of Justice Division of Criminal Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
New Lisbon Man Charged with Methamphetamine Crime
Shane C. Evans, 43, New Lisbon, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on May 5, 2019.
If convicted, Evans faces a mandatory minimum sentence of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Rice Lake Police Department. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Madison Man Charged with Illegally Possessing Firearms
Sean P. Okray, 48, Madison, Wisconsin, is charged with being a felon in possession of firearms. The indictment alleges that on August 23, 2019, he possessed a 9mm pistol and a .380 caliber pistol.
If convicted, Okray faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department, Dane County Sheriff’s Office, U.S. Marshals Service, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita Rumbelow is handling the prosecution.
Janesville Man Charged with Gun Crimes
Deshawn Foreman, 24, Janesville, Wisconsin, is charged with being a felon in possession of ammunition and with being a felon in possession of a firearm. The indictment alleges that on July 24, 2019, he possessed .45 caliber ammunition, and that on July 25, 2019, he possessed a .45 caliber handgun.
If convicted, Foreman faces a maximum penalty of 10 years in federal prison on each charge. The charges against him are the result of an investigation by the Janesville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
The indictments against Okray and Foreman have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Four Defendants Charged in $70 Million Wire Fraud Conspiracy Involving Black Market HIV MedicationsRead the Press Release
SAN FRANCISCO - A federal grand jury returned a superseding indictment charging Edvin Ovasapyan, Hakob Kojoyan, Lorik Papyan, and Stephen Silverman for their respective roles in an alleged scheme to defraud purchasers of prescription drugs, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
The multi-count superseding indictment was returned on September 5, 2019, and unsealed September 10, 2019. It alleges Ovasapyan, 41, of Los Angeles; Kojoyan, 27, of Los Angeles; Papyan, 36, of Los Angeles; and Silverman, 77, of Los Angeles, each played a role in a conspiracy to operate a large-scale clearing house to divert drugs, primarily those used in the treatment of the Human Immunodeficiency Virus (“HIV”). The superseding indictment describes how Ovasapyan, Kojoyan, and Papyan conspired to acquire large quantities of diverted prescription HIV medications on the black market, and then created false documentation claiming that the medications had been acquired from licensed suppliers. All four defendants allegedly then conspired to sell these diverted prescription drugs to retail pharmacies and wholesalers across the United States. The drugs were sold through a company called Mainspring Distribution, LLC (“Mainspring”), and the defendants provided their customers with false documentation regarding the origin of those drugs. The indictment alleges Silverman, an attorney, was aware of the illicit nature of the operation and assisted his co-defendants by, among other things, agreeing to launder the proceeds of the fraud. Mainspring’s customers were never informed that they were purchasing prescription drugs acquired on the black market. Over the course of the conspiracy, Mainspring earned more than $70,000,000 through sales to its customers. According to the indictment, the defendants also disguised the destination of these funds, routing a portion of Mainspring’s earnings through misleadingly named bank accounts designed to create the appearance of a lawful supply chain.
All four defendants have been charged with one count each of conspiracy to commit wire fraud, in violation of § 18 U.S.C. § 1349; conspiracy to commit money laundering, in violation of § 18 U.S.C. § 1956(h); and conspiracy to engage in the unlawful wholesale distribution of drugs, in violation of 18 U.S. C. § 371.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of conspiracy to commit wire fraud, the defendants face a maximum sentence of 20 years in prison, a fine of $250,000 (or twice the gross gain or loss), and restitution. If convicted of conspiracy to commit money laundering, the defendants face a maximum sentence of 20 years in prison, a fine of $500,000 (or twice the value of the property involved in the transaction), and restitution. If convicted of conspiracy to engage in the unlawful wholesale distribution of drugs, the defendants face a maximum sentence of 5 years in prison, a fine of $250,000 (or twice the gross gain or loss), and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Andrew F. Dawson and Briggs Matheson are prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation led by the Federal Bureau of Investigation, with the assistance of the Food and Drug Administration.
Former deputy indicted on federal charge for possession of child pornographyRead the Press Release
STATESBORO, GA: A former Bulloch County sheriff’s deputy has been indicted by a federal grand jury with possession of child pornography.
Travis Tuenge, 43, of Statesboro, is charged with one count of Possession of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to 20 years in federal prison, and there is no parole in the federal system.
“Exploitation of children through child pornography is a despicable crime that will not be tolerated in the Southern District of Georgia,” said U.S. Attorney Christine. “In cooperation with our law enforcement partners, we will find and prosecute these cases no matter the status of those engaging in this exploitation.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated by the Georgia Bureau of Investigation with assistance from the U.S. Marshals Service Southeast Regional Fugitive Task Force, and is being prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden and Marcela C. Mateo.
Former VA Hospice Nurse Charged with Diverting and Tampering with Morphine Meant for Dying VeteransRead the Press Release
BOSTON – A Tewksbury woman was charged today in federal court in Boston with diverting morphine while employed as a nurse in the hospice unit at the Veterans Affairs (VA) Medical Center campus in Bedford.
Kathleen Noftle, 55, was arrested this morning and charged by criminal complaint with one count of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge, and one count of tampering with a consumer product. Noftle will make an initial appearance in federal court in Boston at 12:00 p.m. today.
According to charging documents, on Jan. 13, 14, and 15, 2017, Noftle used her position as a nurse to obtain doses of morphine that were meant to be given to the veterans under her care in the hospice unit. Noftle admitted to federal agents that she mixed water from a sink with a portion of the liquid morphine doses, and then administered the diluted medication to patients orally. Noftle then allegedly ingested a diluted amount of the remaining drug. The investigation revealed that, due to diluted morphine administered by Noftle, one veteran experienced increased difficulty breathing (dyspnea) and increased suffering in his final days. The investigation also found that before working at the VA Medical Center in Bedford, Noftle had resigned from her position as a nurse at a different hospital following her failure to follow appropriate procedures when wasting narcotics on 60 occasions.
The charge of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge, provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of tampering with a consumer product provides for a sentence of no greater than four years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney William B. Brady of Lelling’s Health Care Fraud Unit is prosecuting the case.
Former Postal Carrier Offers Guilty Plea for Stealing Marijuana and Methamphetamine Mail PackagesRead the Press Release
COLUMBUS, Ohio – A former United States Postal Carrier pleaded guilty in U.S. District Court today to stealing mail parcels that contained narcotics and then selling those narcotics in his neighborhood.
Ricky Lee Harris Germany, 32, of Columbus, pleaded guilty to one count of conspiring to possess with intent to distribute more than 500 grams of methamphetamine and a detectable amount of marijuana.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Kenneth Cleevely, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG) Eastern Area Field Office, announced the plea offered before U.S. Magistrate Judge Norah McCann King.
According to court documents, Germany had been employed as a city postal carrier at the United States Postal Service’s Oakland Park Station in Columbus from 2013 until 2018.
In September 2018, investigators received information that Germany had stolen mail parcels containing marijuana while employed as a postal carrier. According to a complainant, Harris Germany stole more than 100 pounds of marijuana over the course of six months. The complainant stated Harris Germany would look for large parcels from California, Texas and Arizona and would check the packages on his lunch break to see if they contained drugs.
The investigation revealed Germany intercepted mail parcels on multiple occasions from delivery routes other than his assigned route. During a search of his residence, investigators discovered opened packages containing marijuana, THC oil and methamphetamine.
Germany admitted to stealing mail coming from out of state and selling stolen narcotics to people in his neighborhood.
Conspiracy to possess with intent to distribute more than 500 grams of methamphetamine is punishable by a range of 10 years up to life in prison.
U.S. Attorney Glassman commended the investigation of this case by the USPS-OIG and Assistant United States Attorney Jonathan J.C. Grey, who is representing the United States in this case.
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Former Alabama Correctional Lieutenant Indicted for Allowing Inmate AbuseRead the Press Release
Montgomery, AL – The Justice Department today announced that a Federal Grand Jury sitting in Montgomery, Alabama, returned a two-count indictment charging former Alabama Department of Corrections (ADOC) Lieutenant Willie Burks, 39, with failing to stop a sergeant under his command from kicking and striking with a baton a handcuffed and compliant inmate at ADOC’s Elmore Correctional Facility. Burks was also charged with making false statements to the federal grand jury in connection with the investigation.
Three former and current corrections officers have previously pleaded guilty in connection with this incident. Former Alabama Department of Corrections Sergeant Ulysses Oliver pleaded guilty to unlawfully assaulting two handcuffed inmates. Corrections Officers Briana Mosley and Leon Williams pleaded guilty for failing to intervene to prevent the abuse by former-Sergeant Oliver.
According to the prior guilty pleas, Oliver went to an observation room holding the two inmate victims, who were both handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately 19 times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately 10 times. During the assaults, the victims were handcuffed, and were not resisting or posing a threat. After, Oliver returned to the observation room where the victims were held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face. Oliver assaulted the victims as punishment because he believed that the victims had brought contraband into the facility. Oliver assaulted the victims in the presence of other ALDOC correctional officers, who did not intervene to prevent the assaults.
Burks faces a statutory maximum sentence of 15 years in prison.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty in court.
This case is being investigated by the FBI’s Mobile Division and ADOC’s Investigations and Intelligence Division. It is being prosecuted by Assistant U.S. Attorney Ben Baxley of the Middle District of Alabama, and Special Legal Counsel Mark Blumberg, Special Litigation Counsel Jared Fishman, and Trial Attorney David Reese of the Civil Rights Division.
Former Alabama Correctional Lieutenant Indicted for Allowing Inmate AbuseRead the Press Release
The Justice Department today announced that a Federal Grand Jury sitting in Montgomery, Alabama, returned a two-count indictment charging former Alabama Department of Corrections (ADOC) Lieutenant Willie Burks, 39, with failing to stop a sergeant under his command from kicking and striking with a baton a handcuffed and compliant inmate at ADOC’s Elmore Correctional Facility. Burks also was charged with making false statements to the federal grand jury in connection with the investigation.
Three former and current corrections officers have previously pleaded guilty in connection with this incident. Former Alabama Department of Corrections Sergeant Ulysses Oliver pleaded guilty to unlawfully assaulting two handcuffed inmates. Corrections Officers Briana Mosley and Leon Williams pleaded guilty for failing to intervene to prevent the abuse by former-Sergeant Oliver.
According to the prior guilty pleas, Oliver went to an observation room holding the two inmate victims, who were both handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately 19 times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately 10 times. During the assaults, the victims were handcuffed, and were not resisting or posing a threat. After, Oliver returned to the observation room where the victims were held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face. Oliver assaulted the victims as punishment because he believed that the victims had brought contraband into the facility. Oliver assaulted the victims in the presence of other ADOC correctional officers, who did not intervene to prevent the assaults.
Burks faces a statutory maximum sentence of 15 years in prison.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty in court.
This case is being investigated by the FBI’s Mobile Division and ADOC’s Investigations and Intelligence Division. It is being prosecuted by Assistant U.S. Attorney Ben Baxley of the Middle District of Alabama, and Special Legal Counsel Mark Blumberg, Special Litigation Counsel Jared Fishman, and Trial Attorney David Reese of the Civil Rights Division.
Florida Man Arrested for Making Racially-Motivated Threats in Interference with Election in Charlottesville and CyberstalkingRead the Press Release
Charlottesville, VIRGINIA – United States Attorney Thomas T. Cullen and Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Right Division announced today the arrest of a Florida man on federal charges that in January 2019 he made racially-motivated threats against a prospective candidate that interfered with a local election for City Council in Charlottesville, Virginia.
A federal grand jury in the Western District of Virginia returned a sealed
indictment.pdf on September 11, 2019 charging Daniel McMahon, 31, of Brandon, Fla., with four counts: willful interference with a candidate for elective office, bias-motivated interference with a candidate for elective office, threats to injure in interstate commerce, and cyberstalking. The indictment was unsealed today following McMahon’s arrest.“As alleged in the indictment, this defendant was motivated by racial animus and used his social-media accounts to threaten and intimidate a potential candidate for elective office,” U.S. Attorney Thomas T. Cullen stated today. “Although the First Amendment protects an individual’s right to broadcast hateful views online, it does not give license to threats of violence or bodily harm. We will continue to prioritize cyber-threat cases, including those giving rise to civil rights violations.”
“The alleged targeted and racially motivated actions by Daniel McMahon were an attempt to disrupt the American political process,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “The FBI remains committed to protecting the civil liberties of all Americans. We are grateful for the assistance of the FBI office in Tampa and the partnership with the United States Attorney’s Office, during this investigation.”
Specifically, the indictment alleges that McMahon threatened D.G. with physical harm because of D.G.’s race and because D.G. was campaigning for elected office. The indictment further alleges that threats were made with the intent to injure and intimidate D.G., and were part of a course of conduct that planed D.G. in fear of death and serious bodily injury. The charges of cyberstalking and transmitting threats in interstate commerce carry a maximum sentence of five years in prison. The two charges arising from the threats against D.G. because of his race and because he was campaigning for elected office each carry a maximum sentence of one year in prison.
This case is being investigated by the FBI and is being prosecuted by the United States Attorney for the Western District of Virginia Thomas T. Cullen, Assistant U.S. Attorney Christopher Kavanaugh, and Trial Attorney Risa Berkower of the Department of Justice’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Florida Man Arrested for Making Racially-Motivated Threats in Interference with Election in Charlottesville and CyberstalkingRead the Press Release
Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division and United States Attorney Thomas T. Cullen today announced the arrest of a Florida man on federal charges that in January 2019 he made racially-motivated threats against a prospective candidate that interfered with a local election for City Council in Charlottesville, Virginia.
A federal grand jury in the Western District of Virginia returned a sealed indictment on Sept. 11, charging Daniel McMahon, 31, of Brandon, Florida, with four counts: willful interference with a candidate for elective office, bias-motivated interference with a candidate for elective office, threats to injure in interstate commerce, and cyberstalking. The indictment was unsealed today following McMahon’s arrest.
“As alleged in the indictment, this defendant was motivated by racial animus and used his social-media accounts to threaten and intimidate a potential candidate for elective office,” U.S. Attorney Thomas T. Cullen stated today. “Although the First Amendment protects an individual’s right to broadcast hateful views online, it does not give license to threats of violence or bodily harm. We will continue to prioritize cyber-threat cases, including those giving rise to civil rights violations.”
“The alleged targeted and racially motivated actions by Daniel McMahon were an attempt to disrupt the American political process,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “The FBI remains committed to protecting the civil liberties of all Americans. We are grateful for the assistance of the FBI office in Tampa and the partnership with the United States Attorney’s Office during this investigation.”
Specifically, the indictment alleges that McMahon threatened D.G. with physical harm because of D.G.’s race and because D.G. was campaigning for elected office. The indictment further alleges that threats were made with the intent to injure and intimidate D.G., and were part of a course of conduct that caused D.G. to fear death and serious bodily injury. The charges of cyberstalking and transmitting threats in interstate commerce carry a maximum sentence of five years in prison. The two charges arising from the threats against D.G. because of his race and because he was campaigning for elected office each carry a maximum sentence of one year in prison.
This case is being investigated by the FBI and is being prosecuted by the United States Attorney for the Western District of Virginia Thomas T. Cullen, Assistant U.S. Attorney Christopher Kavanaugh, and Trial Attorney Risa Berkower of the Department of Justice’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Five Aliens Indicted on Illegal Reentry Charges, Illegal and Unlawful Alien in Possession of a Firearm, Passport Fraud, Aggravated Identity Theft, False Representation of Social Security Number, False Claim of US Citizenship in Order to Register to VoteRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ABONZA BONIFACIO-GARCIA, age 33, of Mexico, and JOSE DIAZ-BRITO, age 40, of Mexico, with illegal reentry of a deported alien.
Additionally, the grand jury returned indictments charging JOHNNY ROEL-ROBLEDO, age 42, of Mexico, with illegal reentry of an aggravated felon and illegal and unlawful alien in possession of a firearm, and JORGE ALBERTO CHAVEZ-MORENO, age 38, of Mexico, with passport fraud, aggravated identity theft, false representation of a social security number, false claim to US citizenship in order to register to vote, and fraud and misuse of visas, permits and other documents.
If convicted of illegal reentry of a deported alien, BONIFACIO-GARCIA, previously deported and found in Pitt County, and DIAZ-BRITO, previously deported and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ROEL-ROBLEDO, previously deported and found in Wake County, is alleged to have been previously removed subsequent to an aggravated felony conviction (possession with intent to sell and deliver cocaine). Therefore, if convicted, he would face a maximum imprisonment term of 30 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of passport fraud, aggravated identity theft, false representation of a social security number, false claim to US citizenship in order to register to vote, and fraud and misuse of visas, permits and other documents, CHAVEZ-MORENO, found in Sampson County, would face maximum penalties of 37 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Federal inmates charged with assaulting correctional officersRead the Press Release
BRUNSWICK, GA.: Three federal prison inmates have been charged in separate incidents in which correctional officers were injured.
Eduardo Bermudez, 21; Dominique Moultrie, 31; and Ulysses Hensen, 43, inmates at Federal Correctional Institution Jesup, in Jesup, Ga., each are charged with Assaulting, Resisting, or Impeding employees of the Federal Bureau of Prisons, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to 20 years in prison.
In each case, the defendant is alleged to have refused instructions from correctional officers before assaulting them, resulting in injuries to the officers.
“The protection of our correctional officers is of paramount concern,” said U.S. Attorney Christine. “Our office will not hesitate to prosecute inmates who harm the officers whose job it is to house those inmates safely and humanely.”
“Staff at our federal correctional institutions serve, at times, under difficult conditions, trying to keep prisons safe for incarcerated felons,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Any abuse of prison staff by inmates cannot and will not be tolerated, and will be pursued for prosecution by the FBI.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The cases were investigated by the Federal Bureau of Prisons and the FBI, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Federal Jury Convicts Coon Rapids Man for His Role in Methamphetamine Trafficking ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald announced the conviction of JAMES FLAHERTY HILL, a/k/a “Whitey,” 36, for his role in a methamphetamine trafficking conspiracy. HILL was found guilty following a seven-day trial before Senior Judge Donovan W. Frank in U.S. District Court in Saint Paul, Minnesota. HILL’s co-defendants JAMES LEE JOHNSON, JUSTIN MICHAEL DRECHSEL, JERE DG ERICKSON, ANTHONY JAMES LANSING, CHELSEY ELIZABETH NELSON, and NICHOLE ROSE WOODWORTH each pleaded guilty to count of conspiracy to distribute methamphetamine.
According to the defendants’ guilty pleas and as proven at trial, HILL’s co-defendant, JOHNSON, led a drug trafficking organization (DTO) that distributed methamphetamine throughout the state of Minnesota. From November 2016 through August 2018, investigators with the Anoka-Hennepin Narcotics and Violent Crimes Task Force conducted an extensive investigation of the DTO. On November 14, 2016, law enforcement observed a DTO co-conspirator travel to HILL’s Coon Rapids residence, then travel to a truck stop, and then return to HILL’s residence. When the co-conspirator again left HILL’s residence, Blaine police officers initiated a traffic stop and found, inside the vehicle, several packages wrapped in plastic containing approximately 35 pounds of methamphetamine. Later that day, agents observed HILL attempting to remove items of contraband from his from his home, some of which were later seized from a co-conspirator’s vehicle, including multiple pounds of marijuana, one pound of methamphetamine, one pound of cocaine, four handguns and a rifle. By that night, law enforcement executed a search warrant at HILL’s residence and recovered various items consistent with a drug distribution operation, including scales, multiple burner phones, and multiple additional firearms.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Anoka-Hennepin Narcotics and Violent Crimes Task Force, the Anoka County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, the Blaine Police Department, and the Midwest Regional Forensic Laboratory.
This case is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.
Defendant Information:
JAMES FLAHERTY HILL, a/k/a “Whitey,” 36
Coon Rapids, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Delegation of Law Enforcement Members from the State of Alabama Briefed in MexicoRead the Press Release
BIRMINGHAM – A delegation of law enforcement members from the State of Alabama, recently returned from a trip to Mexico and to the State of Sinaloa, home of the Sinaloa Cartel, announced U.S. Attorney Jay E. Town and DEA Assistant Special Agent in Charge Clay Morris.
“The efforts and actions of this Alabama delegation underscores the commitment and lengths to which law enforcement in the state will go to ensure the safety of its citizens and fully understand the breadth and sophistication of the enemy we face,” Town said. “That enemy is not just the cartels. It is not just the dealers. That enemy is also addiction and abuse. The entire delegation owes its thanks to the DEA for making arduous coordination look effortless.”
“It is the hope and prayer of this delegation of law enforcement executives that the citizens of Alabama understand that we are steadfast in our combined efforts to keep our communities safe,” Morris said. “Collectively, we will not tolerate the destruction drug trafficking brings to our great state. We witnessed firsthand the lengths Mexican drug cartels will go to fuel the disease of addiction. We are resolved to do everything in our power to stem the flow drugs into Alabama.”
On September 11, 2019, a delegation of twelve federal, state and local law enforcement officials traveled to Mexico to see, hear and smell the sophistication of the illegal narcotics trade there. The delegation was briefed in Mexico City at the highest levels. The delegation was in country for less than 72 hours, traveled nearly 5500 total miles and was constantly under the heavily armed protection of United States and Mexican law enforcement. The crime intelligence accumulated by the delegation was immeasurable, only countered by the amount of narcotics activity with but one primary destination…the United States.
The overall message was clear, narcotics trafficking and production in Mexico is dominating the drug trade in the United States. Heroin, methamphetamine, fentanyl, and even cocaine egressing from Columbia, are all being trafficked into the United States by the drug trade in Mexico. The precursor chemicals are being sourced primarily from China, but chemists working for the cartels are unfortunately making strides sourcing the precursor materials inside of Mexico. The profit margins for fentanyl and methamphetamine are driving the drug trade by the cartels.
The members of the delegation were:
Jay Town – U.S. Attorney, Alabama Northern District
Louis Franklin - U.S. Attorney, Alabama Middle District
Richard Moore - U.S. Attorney, Alabama Southern District
Clay Morris – Assistant Special Agent in Charge, Birmingham, New Orleans Division
Sean Stephen – Group Supervisor, Birmingham, New Orleans Division
Steven Marshall, Alabama Attorney General
John Harold Taylor – Alabama Law Enforcement Secretary
Kevin Turner - Sheriff, Madison County, Alabama
Barry Matson – Executive Director, Alabama District Attorney’s Association
Nicholas Derzis – Chief of Police, Hoover Police Department
Robert Broussard – District Attorney, Madison County, Alabama
Bryan Taylor – General Counsel, Governor of Alabama
Below is the link to the video shown at the press conference today.
Video fileDayton Man Sentenced to 7 Years for Possessing Gun as Convicted Felon, Violating Federal Supervised ReleaseRead the Press Release
DAYTON – Gabriel Newman, 36, of Dayton was sentenced in U.S. District Court to 84 months in prison for possessing an AR-15 assault-style rifle at a home where he was dealing illegal drugs.
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 Dayton Police Chief Richard Biehl announced the sentence handed down by U.S. District Judge Walter H. Rice.
Newman was also ordered to forfeit a handgun, ammunition and a high-capacity magazine for the AR-15 found during the search.
According to court documents, Newman was on federal supervised release in early 2018 for a prior federal conviction of drug trafficking when agents found the firearm as well as illegal drugs hidden inside a Christmas tree at a residence in east Dayton.
Agents arrested Newman and he pleaded guilty in February to one count of possessing a firearm as a convicted felon, and to violating his supervised release following his 2015 conviction for drug trafficking.
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 Dayton Police Department, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
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Court of Appeals Affirms 120-Year Sentence of Former Live Oak Police Sergeant Convicted of Producing and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – Maria Chapa Lopez announces that, on September 17, 2019, a three-judge panel of the United States Court of Appeals for the Eleventh Circuit affirmed the 120-year federal-prison sentence of Kyle Adam Kirby (39, Live Oak), who was convicted of producing, attempting to produce, possessing, and accessing images and videos depicting the sexual abuse of minors. Kirby was arrested on October 28, 2015, at the Live Oak Police Department (LOPD) and has remained in custody since that date. A federal jury found him guilty on December 7, 2017.
According to testimony and evidence at trial, on October 22, 2015, FBI agents and other law enforcement officers executed a search warrant at Kirby’s residence as a result of an online child exploitation investigation. At that time, Kirby was a sergeant with the Live Oak Police Department. That same morning, the LOPD chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of this computer revealed that it contained images depicting young children engaged in sexually explicit conduct. Kirby had used the patrol car’s computer to search for, download, access, and possess child pornography from as early as December 24, 2014.
A later search of an LOPD desktop computer used by Kirby revealed images depicting nude and partially undressed children in at least three different bathrooms. The evidence at trial revealed that Kirby had used one or more concealed cameras to surreptitiously film the unsuspecting minors. He had then transferred these images to the LOPD desktop computer and later had unsuccessfully attempted to delete them. Agents were able to locate folders on the computer named for several of Kirby’s victims.
In March 2018, United States District Judge Timothy J. Corrigan sentenced Kirby to serve 120 years in federal prison for these crimes. Kirby appealed his sentence to the United States Court of Appeals for the Eleventh Circuit, but that court affirmed, holding that the district court had not erred in calculating Kirby’s United States Sentence Guidelines advisory sentence of life imprisonment, which the court said, means a sentence that is “indefinite in duration.” The court said that Kirby’s 120-year sentence was “the closest available sentence to indefinite incarceration,” and concluded that, “when the Sentencing Guidelines recommend life imprisonment, they mean life imprisonment.”
The Court of Appeals also held that Kirby’s sentence was not unreasonably long, noting that, before imposing the longest sentence that it could, the District Court had “thoroughly discussed Kirby’s particularly heinous conduct and direct participation in the creation of child pornography, his breach of public trust as a police officer, and his total failure to take responsibility for his actions.”
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement, with the full cooperation of the Live Oak Police Department. Assistant United States Attorney D. Rodney Brown prosecuted the case in the District Court, and Linda Julin McNamara, Sara Sweeney, and Michelle Thresher Taylor represented the United States on appeal.
It is another case 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.
Correctional officer, inmate charged in federal prison bribery indictmentRead the Press Release
WAYCROSS, GA: A correctional officer at a privately-operated federal prison has been indicted on multiple counts of accepting bribes from an inmate and lying about it to investigators.
Micheal Eaddy, 23, of Blackshear, Ga., a correctional officer at D. Ray James Correctional Facility, a privately prison operated under federal contract in Folkston, Ga., was indicted by a federal grand jury on seven counts of Bribery, one count of Providing Contraband in Prison, and one count of False Statement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry possible punishment of up to 15 years in prison, and there is no parole in the federal system.
In the same indictment, Jean Civil, 24, of Port-au-Prince, Haiti, an inmate at D. Ray James, is charged with Possessing Contraband in Prison after being found in possession of a cell phone. The charge carries possible punishment of up to one year in prison. Civil is serving a 78-month sentence for Conspiracy to Distribute 500 Grams or More of Cocaine.
“Crimes inside our federally operated prison system can have a dangerous and damaging effect on community safety outside the prisons,” said U.S. Attorney Christine. “When guards violate their oaths and provide inmates with access to illegal materials, it reduces the ability to maintain order on the inside while facilitating criminal activity outside.”
According to the indictment, Eaddy is alleged to have accepted seven bribes totaling nearly $900 in return for smuggling cigarettes into the prison. He also is alleged to have denied accepting multiple bribes in return for smuggling contraband into the prison, instead claiming that he had conducted only one transaction. Investigators discovered the activity after seizing the contraband phone from Civil and examining its contents, which included electronic conversations between Civil and Eaddy.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“Contraband in prisons, specifically cell phones, poses a danger to correctional officers, prison staff, and the public,” said James F. Boyersmith, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General Miami Field Office. “Our agents will continue to investigate any Department of Justice employees, including correctional officers, who violate the law by smuggling contraband into federal prisons.”
The case was investigated by the U.S. Department of Justice Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
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.
Citizen of Mexico Sentenced to 10 Years in Prison on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that David Flores-Torres, 26, a citizen of Mexico living in Dunkirk, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve 120 months in prison and 30 years supervised release by U.S. District Judge Lawrence J. Vilardo.
Special Assistant U.S. Attorney Jeremy V. Murray, who handled the case, stated that on June 5, 2018, a search warrant was executed at the defendant’s residence in Dunkirk, NY. Law enforcement officers seized the defendant’s Samsung Galaxy S3 cellular telephone which contained 79 images and 14 videos of child pornography. Some of the images depicted prepubescent minors or minors less than 12 years-old, as well as depictions of violence. Torres also received and distributed images constituting child pornography from and to others with whom he communicated using a cellular telephone and the internet.
The defendant disclosed that, on three occasions during 2017 and 2018, he engaged sexual contact with two minor victims under the age of 18. The government advocated for a sentence of between 14 and 17.5 years in prison, which was the sentencing range recommended under the United States Sentencing Guidelines.
Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Chicago Woman Charged with Operating Prostitution Business on City’s West SideRead the Press Release
CHICAGO — A Chicago woman has been indicted on federal charges for allegedly operating a prostitution business in the city’s West Town neighborhood.
JESSICA NESBITT, also known as “Madame Priscilla Belle,” 31, is charged with seven counts of using interstate commerce to facilitate prostitution, three counts of illegally structuring cash withdrawals to evade financial reporting requirements, one count of conspiracy to use interstate commerce to facilitate prostitution and transport and entice an individual across state lines to engage in prostitution, one count of enticing an individual across state lines to engage in prostitution, and one count of transporting an individual across state lines to engage in prostitution.
The indictment was returned last month and ordered unsealed today. Nesbitt pleaded not guilty at her arraignment this afternoon before U.S. Magistrate Judge Maria Valdez. A status hearing was scheduled for Oct. 15, 2019, at 9:30 a.m., before U.S. District Judge Robert M. Dow, Jr.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Devlin N. Su and Erika Csicsila.
According to the indictment, Nesbitt owned and operated a company called Kink Extraordinaires, which employed several individuals who engaged in prostitution. Acts of prostitution were carried out in a residential building in the 2400 block of West Augusta Boulevard in Chicago, according to the indictment. Nesbitt advertised prostitution services on multiple websites, including backpage.com, eros.com and Gentlemen’s Pages, as well as a website that Nesbitt operated called kinkextraordinaires.com, the indictment states. Nesbitt also emailed her clients invitations to paid sex and fetish parties, including “Halloween Mischief” and “Black Tie Bizarre,” the indictment states.
In addition to activity in Chicago, Nesbitt arranged for herself and her employees to perform acts of prostitution in California, Washington, D.C., Florida, Indiana, Nevada, and Wisconsin, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The enticement charge is punishable by up to 20 years in prison, while the transportation and structuring charges carry a maximum sentence of ten years. The charges of conspiracy and using interstate commerce to facilitate prostitution are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Chester Man Sentenced for Gun CrimesRead the Press Release
CONCORD - Julion Adamski Parker, a/k/a Julian Iden Lima, 27, of Chester, was sentenced to time served (approximately 16 months) and fined $1,000 for violating federal firearms laws, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 11, 2017, Chester Police Department received a call that Parker was inside the Chester General Store with a gun in plain view. Knowing that Parker previously had been convicted of impersonating a federal officer, members of the Chester Police arrested Parker for being a felon in possession of a deadly weapon.
Further investigation showed that Parker had previously purchased guns on two occasions by completing documents that falsely claimed that he had never been convicted a felony in any court. On March 30, 2017, Parker purchased a Mosin-Nagant, Model M91/30, 7.62 X 39 mm caliber rifle from a federally licensed firearms dealer in Hooksett. On June 20, 2017, he purchased an Arsenal, Model SAM7R, 7.62 X 39 mm rifle from a federally licensed firearms dealer in Londonderry.
Parker previously pleaded guilty on May 2, 2019, to being a felon in possession of a firearm and two counts of making false statements in order to acquire a firearm. After being released from custody, Parker will be on supervised release for three years. During the first six months of his release he will be subject to home confinement with electronic monitoring.
“In order to protect public safety, it is essential to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “We will continue to work with our law enforcement partners to identify, prosecute, and incarcerate criminals who unlawfully obtain and possess firearms.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chester Police Department. The United States Marshal’s Service assisted in the apprehension of Parker. The case was prosecuted by Assistant U.S. Attorney Debra Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Charges Brought Against 34 Individuals for Alleged West Coast Medicare and Medicaid Fraud Schemes Totaling $258 MillionRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today a health care fraud enforcement action in the state of California, involving charges brought against a total of 26 individuals in the Central District of California for their alleged involvement in Medicare and Medicaid fraud schemes resulting in $257 million in billings. Of those charged, 14 were doctors or medical professionals. In addition, in the states of Arizona and Oregon, eight defendants, including three licensed medical professionals, have been charged with defrauding the Medicaid program out of over $1 million. These cases were investigated by each state’s respective Medicaid Fraud Control Units
Today’s enforcement action was led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). In addition, the operation includes the participation of various other federal law enforcement agencies and the California Department of Justice, including the U.S. Department of Labor, Office of Inspector General, the U.S. Department of Labor, Employee Benefits Security Administration, the U.S. Department of Defense, Defense Criminal Investigative Service, the Amtrak Office of Inspector General, the U.S. Office of Personnel Management, Office of Inspector General and the California Department of Insurance.
The charges announced today aggressively target schemes billing Medicare and Medicaid for services, testing and prescriptions that were not medically necessary or not actually provided to beneficiaries.
“Today’s action shows that our ability to detect and prosecute health care fraud grows more sophisticated with each passing day,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice is using every tool at our disposal to target the medical professionals and others who place their personal greed above the public good.”
“Corruption drains dollars from private insurers and public programs such as Medicare and Medicaid,” said U.S. Attorney Nick Hanna of the Central District of California. “This office will continue to hold accountable anyone – including medical professionals – who seek to bilk our nation’s health care system.”
“Sticking taxpayers with a bill for unnecessary healthcare services will never be tolerated,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, our agency will tirelessly pursue physicians and others who threaten the integrity of Federal healthcare programs.”
“Health care fraud schemes cheat American taxpayers and health care programs out of millions of dollars,” said Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office. “With the assistance of the public, the FBI and partner agencies will continue to combat this unscrupulous criminal activity that seeks to financially exploit our healthcare system.”
“Criminal activity that drives up medical costs for Californians at the expense of vulnerable communities will not be tolerated,” said California Attorney General Xavier Becerra. “The California Department of Justice will continue to seek opportunities to work with our federal partners to not only prevent wrongdoing, but also target fraudsters and hold them accountable.”
“Health plans are tempting targets for unscrupulous individuals,” said Los Angeles Regional Director for the U.S. Department of Labor’s Employee Benefits Security Administration Crisanta Johnson. When wrongdoers victimize health plans and their participants, EBSA and its fellow enforcement agencies will take prompt, aggressive, and coordinated action to hold them accountable.”
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Among those charged in Strike Force cases in the Central District of California are the following:
Ronald Weaver, M.D., 70, of Pacific Palisades, California, Sara Soulati, 49, of Santa Monica, California, John Weaver, M.D., 75, of Alhambra, California, Ronald Carlish, M.D., 78, of Pacific Palisades, California, Howard Elkin, M.D., 68, of Whittier, California, Wolfgang Scheele, M.D., 79, of Los Angeles, California, and Nagesh Shetty, M.D., 74 of Huntington Beach, California, were charged for their alleged participation in an approximately $135 million scheme to defraud Medicare through medically unnecessary cardiac treatments and testing through Global Cardio Care of Inglewood, California. The case is being prosecuted by Trial Attorneys Emily Z. Culbertson and Alexandra Michael of the Criminal Division’s Fraud Section.
Hilda Haroutunian, 59, of Sun Valley, California, Keyvan Amirikhorheh, M.D., 60, of Seal Beach, California, Lorraine Watson, 56, a physician’s assistant, of Valley Village, California, Noem Sarkisyan, 63, of North Hollywood, California, and Edmond Sarkisyan, 40, a medical assistant, of North Hollywood, California, were charged for their alleged participation in an approximately $10 million scheme to defraud the Family Planning, Access, Care and Treatment (Family PACT) program administered by Medi-Cal, the California Medicaid program, through fraudulent claims for family planning services, testing and prescriptions for non-existent patients submitted through Los Angeles Community Clinic, in Los Angeles, California, and associated diagnostic testing laboratories and pharmacies. The case is being prosecuted by Trial Attorney Alexis D. Gregorian of the Fraud Section.
Antonio Olivera, 78, of Downey, California, Emelita Cephass, 57, of Downey, California, and Martin Canter, 70, of Rancho Palos Verdes, California, were charged for their alleged participation in a hospice kickback scheme. Olivera was also charged for his alleged participation in a scheme to defraud Medicare, all involving Mhiramarc Management LLC, a hospice located in Downey, California. In a separate case, John O’Brien, hospice owner, was charged with health care fraud conspiracy for his alleged role in the fraud scheme. The cases are being handled by Trial Attorney Justin P. Givens of the Fraud Section.
Among those charged in cases being handled by the U.S. Attorney’s Office for the Central District of California are the following:
Navid Vahedi, 40, of Los Angeles, California, Vahedi’s pharmacy “Fusion Rx Compounding Pharmacy,” and Joseph S. Kieffer, 39, of Los Angeles, California, were charged for the alleged participation in a fraud and illegal kickback scheme. Fusion Rx produced compounded drugs, which are specially tailored medications that may be prescribed by a physician when the FDA-approved alternative does not meet the patient’s needs. Vahedi, the operator of Fusion Rx, and Kieffer, a marketer, allegedly paid commissions to marketers and some patients to obtain medically unnecessary compounded drugs to allow Fusion Rx to bill health care providers for those compounded drugs, many of which were reimbursed at rates much higher than average medications. To encourage patients to continue seeking the compounded drugs, Fusion Rx allegedly failed to charge copayments to patients. However, to avoid the scheme being uncovered in an audit, they also allegedly directed Fusion Rx staff to use gift cards to pay the patients’ copayments for them so that it would appear they made the required copayments. This conduct allegedly resulted in approximately $17 million in losses to health care providers while the defendants spent substantial sums of money on themselves, including Vahedi’s purchase of a 1963 Ford Mustang Cobra. Also charged in a related case was Joshua Pearson, 40, a marketer, of St. George, Utah, for his alleged receipt of illegal kickbacks from Fusion Rx, Vahedi, and Kieffer for patient referrals for compounded drugs. The cases are being prosecuted by Assistant United States Attorneys Ashwin Janakiram and Alexander Schwab of the Major Frauds Section and Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section.
Amir Friedman, 54, an anesthesiologist, of Calabasas, California, was charged for his alleged participation in a conspiracy to commit honest services mail and wire fraud and Travel Act violations involving approximately $800,000 in kickbacks for compounded pharmaceutical drugs involving New Age Pharmaceuticals, Inc., located in Beverly Hills, California. The case is being prosecuted by Assistant United States Attorney Ashwin Janakiram.
Susan H. Poon, D.C., 54, a Southern California chiropractor out of Dana Point, California, was charged for her alleged participation in an approximate $2 million scheme to defraud Anthem, Aetna, and other Blue Cross Blue Shield Association affiliates. Through this scheme, Poon allegedly submitted false and fraudulent claims for chiropractic services never provided, medical diagnoses never given, and office visits that never occurred. Poon also allegedly submitted false and fraudulent prescriptions to a provider of durable medical equipment—or in-home medical devices that can cost thousands of dollars each—that relied on those false prescriptions in its reimbursement claims. Employees and employee-dependents of the United Parcel Service and Costco Wholesale Corporation who allegedly never received the claimed services or sought the claimed medical equipment were named as patients in Poon’s false claims and prescriptions. The case is being prosecuted by Assistant United States Attorney Daniel S. Lim of the Santa Ana Branch Office.
Mahyar David Yadidi, D.C., a Southern California chiropractor, was charged with conspiracy to commit health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan. Yadidi allegedly defrauded the ILWU-PMA Plan through his chiropractic clinic, San Pedro Philips Chiropractic, by offering kickbacks to patients for attending the clinic and by billing the Plan for services that were not rendered to its patients, services that were not medically necessary, and services that were provided by unlicensed employees not qualified to perform them. Yadidi allegedly continued to operate his scheme after he was terminated as an authorized provider by the ILWU-PMA Plan. Ivan Semerdjiev, D.C., a chiropractor working for Yadidi, and Julian Williams, a personal trainer working for Yadidi, were also both charged in connection with this fraud conspiracy. In total, Yadidi, Semerdjiev, and Williams submitted almost $5 million to the ILWU-PMA Plan in allegedly fraudulent claims. The case is being prosecuted by Assistant United States Attorney Alex Wyman.
Darren Hines, D.C., a Southern California chiropractor, was charged with health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan. Hines allegedly defrauded the ILWU-PMA Plan through his chiropractic clinic, Advanced Alternative Health, by billing for services not rendered and services being provided by unlicensed employees who were not qualified to perform them, all after Hines was terminated as an authorized provider by the ILWU-PMA Plan. Hines submitted over half a million dollars in allegedly fraudulent claims over a short period of time. The case is being prosecuted by Assistant United States Attorney Alex Wyman.
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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 Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Broward County Resident Sentenced to 66 Months in Prison and Ordered to Pay over $200K for Defrauding Investors in Public Impact Projects Throughout AfricaRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and the Office of Inspector General (OIG) for the Export Import Bank of the United States (EXIM Bank) announced that Bernd Zalke Rind, 63, of Broward County, Florida was sentenced to prison and ordered to pay restitution for orchestrating a fraud scheme that preyed on individuals looking to make public impact investments in Africa.
Rind had previously pled guilty to wire fraud and aggravated identity theft (Case No. 18-cr-60323). He was sentenced to 66 months in prison by U.S. District Senior Judge William J. Zloch on June 25, 2019. Last week, on September 13, 2019, Rind was ordered to pay $217,315 in restitution by U.S. District Judge Robert N. Scola, Jr.
According to the court docket, including the criminal Indictment and a Stipulated Factual Basis that was filed in support of Rind’s guilty plea, between October 2017 and through May 2018, Rind utilized fraudulent EXIM Bank documents as part of an “advance fee” scheme. As part of this scheme, Rind would obtain legitimate EXIM Bank documents through his company, B&T Trust, LLC. Rind would then alter these documents to make it appear that he had obtained EXIM Bank financing for various public interest construction projects in Africa. This included fake loans totaling hundreds of millions of dollars that, according to Rind, provided financing for a school in Botswana, a low-income housing project in Zimbabwe, a Solar Power plant, and a medical clinic in Zambia. Using the lure of lucrative and socially impactful investments, along with the assurance of guaranteed EXIM Bank financing, Rind tricked investors into paying him hundreds of thousands of dollars in up front “retainer fees” in order to avoid losing the fake EXIM loans that he had supposedly obtained. Rind received at least $217,315 in illegal proceeds as a result of his fraudulent scheme. The victim investors are located throughout Africa and the United States. This was Rind’s second Federal felony conviction related to fraudulent business practices.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of EXIM Bank’s Office of Inspector General – Office of Investigations in this matter. This case was prosecuted by Assistant U.S. Attorney Frederic Shadley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Bossier City resident sentenced to 40 months for stealing more than $180,000 in price changing schemeRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Peter Stifner, 34, of Bossier City, Louisiana, was sentenced Tuesday by U.S. District Judge Elizabeth E. Foote to serve three years and four months in federal prison for using a merchandise price changing scheme to steal more than $180,000. Foote also ordered Stifner to pay $180,117 in restitution and to forfeit thousands of dollars in stolen merchandise that law enforcement seized. Stifner, who previously pleaded guilty on January 7, 2019, faces deportation back to Slovakia because of his legal status.
Stifner conducted a scheme to steal merchandise from Walmart, Sam’s Club and Target by obtaining barcode stickers of lower priced merchandise and placing them over the barcodes of higher priced merchandise in the stores. He would then purchase the merchandise at the lower price and resell it online for a profit. As a result of his fraudulent activity, the defendant stole more than $180,000 during the course of the scheme.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorneys Cadesby B. Cooper and Cytheria D. Jernigan prosecuted the case.
Bartlesville Woman Sentenced for Stealing Almost $400,000 from Family-Owned BusinessRead the Press Release
A Bartlesville woman was sentenced today in federal court for stealing $394,058.20 from her employer and submitting a false tax return, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Gina Lisa Preble, 59, of Bartlesville, to 26 months in federal prison followed by five years of supervised release for bank fraud and subscribing to a false tax return. The court further ordered Preble to pay $394,058.20 in restitution.
“With five fraud related convictions since 1981, Gina Preble has made a career out of white collar crime,” said U.S. Attorney Trent Shores. “It is not only armed robbers who cause economic harm to our community. Fraudsters like Gina Preble must be prosecuted and dealt serious consequences. Enough is enough. Not only will she be required to pay back the money she stole from the victim, but she will also spend some hard time in federal prison.”
Preble was employed as a clerk at TransWood Carriers Incorporated from 2011 until her termination in 2017. In an effort to disguise her thefts, Preble created fraudulent “draft checks” which she mixed in with legitimate business expense “draft checks” in order to trick her supervisor into signing them. Preble deposited fraudulent draft checks totaling $394,058.20 into her personal checking account, and used the funds for her own personal gain. Additionally in 2016, Preble signed and submitted a false tax return, omitting the stolen funds as income.
The Financial Litigation Unit at the U.S. Attorney’s Office for the Northern District of Oklahoma will pursue the restitution owed to the victim.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin prosecuted the case.
Baltimore Defense Attorney Facing Federal Indictment for Racketeering, Drug, and Money Laundering ConspiraciesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Kenneth Wendell Ravenell, age 60, of Monkton, Maryland, on federal charges of racketeering conspiracy, conspiracy to commit money laundering, and narcotics conspiracy. The indictment was returned late on September 18, 2019.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
Law enforcement will have no comment beyond this press release at this time.
According to the indictment, Ravenell violated the legitimate and lawful purpose of the law firm where he worked in order to enrich himself and Individual 1 by receiving payments from a drug trafficker client and his associates in exchange for instructing the client and his associates how to evade law enforcement and continue their drug trafficking, laundering drug proceeds, and obstructing justice to protect the client and his associates.
Further, the indictment alleges that Ravenell knowingly protected and assisted co-conspirators in their drug trafficking by coaching co-conspirators about law enforcement techniques so that they could evade these techniques when they trafficked in narcotics. Ravenell allegedly used the law firm’s bank accounts to launder hundreds of thousands of dollars and protect the drug trafficking organization. Ravenell allegedly used the law firm’s bank accounts to receive drug payments and make payments to attorneys retained to represent other members of the conspiracy, concealing and misrepresenting the source of the funds to those attorneys. Ravenell allegedly created and caused the creation of false records, including a client file in the name of a person that the law firm did not represent, in order to conceal the source of the funds used to pay other lawyers for their representations of members of the conspiracy. According to the indictment, Ravenell misrepresented to employees of the law firm the purpose of payments he directed them to make for or on behalf of members of the conspiracy. Ravenell also allegedly received substantial cash payments derived from drug sales as compensation for laundering money and for protection he provided to his co-conspirators.
In addition, the indictment alleges that Ravenell and a co-conspirator obtained information about arrested co-conspirators, including whether or not they were cooperating and the status of their cases, and provided such information to other members of the conspiracy so that they could protect ongoing drug operations. The indictment alleges that Ravenell obtained access to incarcerated co-conspirators, whom he did not represent, so that Ravenell could attempt to improperly influence their testimony, attempt to cause them to execute false affidavits and witness statements which he knew to be false, and attempt to cause witnesses to withhold testimony from official proceedings against his client.
Finally, the indictment alleges that Ravenell participated in a conspiracy to distribute 1,000 kilograms or more of marijuana.
If convicted, Ravenell faces a maximum sentence of 20 years in federal prison for the racketeering conspiracy; a maximum of 20 years in prison for the money laundering conspiracy; and a maximum of life in prison for the narcotics conspiracy. The case will be handled by U.S. District Judge Liam O’Grady, who has been assigned to preside over this case in the District of Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the IRS-CI, the DEA, the Maryland Transportation Authority Police Department, the Phoenix (Arizona) Police Department, and the Arizona Financial Crimes Task Force for their work in the investigation and thanked the prosecutors who are handling the case.
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Baltimore County Man Pleads Guilty to Possession with Intent to Distribute FentanylRead the Press Release
Baltimore, Maryland – Devon Denzel Thompson, age 26, of Woodlawn, Maryland, pleaded guilty today to possession with intent to distribute three kilograms of fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We will continue to do everything we can to reduce overdose deaths from this drug and from all opioids. Add a gun to that equation and you face an even longer sentence in federal prison, where there is no parole—ever. Please, put down the gun and save a life—maybe even your own.”
According to his plea agreement, on March 16, 2018, Thompson was pulled over for a traffic violation by Baltimore County Police Department officers. During the course of the traffic stop, law enforcement asked Thompson to get out of his vehicle, but he did not comply. Instead, Thompson drove away, followed by the Baltimore County officers, who observed Thompson throwing items out of the window. Ultimately, Thompson was stopped and placed under arrest. Law enforcement recovered a digital scale and other drug paraphernalia from the vehicle. Law enforcement recovered the items Thompson threw from his vehicle, including a baggie containing over 40 grams of fentanyl.
Based on those recoveries, a warrant was obtained to search Thompson’s residence. During the search, law enforcement recovered three kilograms of fentanyl and over $10,000 from Thompson’s bedroom and a .380-caliber handgun and rounds of live ammunition from other areas of the house. Thompson admitted that the drugs and gun were his and that he possessed the gun in connection with his drug distribution.
As part of his plea agreement, Thompson is required to forfeit any assets directly traceable to the offense, including $14,144 in cash and the .380-caliber firearm and ammunition recovered from his home.
Thompson and the government have agreed that, if the Court accepts the plea agreement, Thompson will be sentenced to between 10 and 12 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for December 20, 2019 at 11:00 a.m.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali and Lauren E. Perry, who are prosecuting the case.
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Alameda Resident Charged with Illegally Importing NarcoticsRead the Press Release
OAKLAND – The U.S. Attorney’s Office charged James Heyward Silcox III today with illegally importing controlled substances, announced United States Attorney David L. Anderson, Homeland Security Investigations Special Agent in Charge Tatum King, Coast Guard Investigative Service Special Agent in Charge Kelly Hoyle, and Customs and Border Protection Director of Field Operations Brian J. Humphrey.
According to the complaint, Silcox, 41, of Alameda, Calif., is alleged to have illegally imported Tramadol from Singapore and Germany. Tramadol is a Schedule IV controlled substance and narcotic.
The complaint describes three illegal shipments of Tramadol to Silcox from overseas. In July 2019, Customs and Border Protection (CBP) officers at the JFK International Air Mail Facility inspected a package from Singapore that contained approximately 865 grams of Tramadol. In August 2019, CBP officers at the San Francisco Air Mail Facility intercepted a package from Germany that contained 650 tablets containing Tramadol. On September 13, 2019, CBP officers in the San Francisco Air Mail Facility intercepted a package from Singapore that contained 458 grams of Tramadol. All three packages were addressed to post office boxes held by Silcox.
The complaint alleges that law enforcement officers removed the Tramadol from the August package and delivered it with substitute material to Silcox’s post office box on September 16, 2019. The same day, Silcox picked up the package.
Silcox, a U.S. Coast Guard Commander, was arrested September 17, 2019, at Coast Guard Island, in Alameda. He made his initial appearance in federal court in San Francisco this morning and was released on a personal recognizance bond. Silcox’s next scheduled appearance is at 10:30 a.m. on September 26, 2019, for identification of counsel and a preliminary hearing before the Honorable Kandis A. Westmore, U.S. Magistrate Judge.
A complaint merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 5 years in prison, and a fine of $250,000, for each violation of 21 U.S.C. § 952(a). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Homeland Security Investigations; the High Intensity Drug Trafficking Area-Transnational Narcotics Team (HIDTA-TNT); the U.S. Postal Inspection Service; the Department of Homeland Security Office of Inspector General; and the Coast Guard Investigation Service. The prosecution is part of the Organized Crime Drug Enforcement Task Force (OCDETF) National Heroin Initiative to combat the opioid crisis.
29 Defendants Indicted for Drug Conspiracy, International Money Laundering, Money Laundering Conspiracy, And/Or Related ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Enrique Pacheco, age 30, of McAlester; Liliana Alvarez Soto, age 22, of Oklahoma City; Leroy Carl Fox, age 40, of McAlester; Matthew Scott Scraper, age 37, of McAlester; Alyssa Mae Syvongsa, age 19, of Tulsa; Shiana Nicole Johnson, age 24, of Ada; Feather Cheyenne Pacheco, age 23, of Tahlequah; Marc Anthony Cox, age 43, of Fort Gibson; Krystal Sue-Ann Mayen, age 30, of Oklahoma City; Kendall Brent Smith, age 50, of Okmulgee; Michael Sean Gunn, age 30, of Alma, Arkansas; Magdalena B. Mallard, age 34, of Fort Smith, Arkansas; Wesley Michael Rollins, age 31, of Tulsa; Jamie Denise McDonald, age 30, of Tulsa; Kami Rai Gill, age 32, of Del City; Joel David Kazmierczak, age 46, of Broken Arrow; Alexandra Tristian Giemausaddle, age 31, of Anadarko; Trina Kay Rose, age 48, of Ada; Cheyenne Grace Alexus Tiger, age 22, of Oklahoma City; and Tina Marshall Stilwell, age 30, of Fort Gibson, were each indicted for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A), punishable by not less than 10 years imprisonment and up to a $10,000,000 fine.
Muskogee residents Jose Miguel Pacheco, age 30; Maricsa Pacheco (Brown), age 29; Lannie Jo Carter, age 18; Daniel Pacheco, age 25; Teodoro Renteria Pacheco, age 55; Randy Eugene Langton, age 61; Tabitha Ann Bryant (Ford), age 37; Ervin Hernandez, age 31; and Christian Jonathan Hernandez, age 30, were also indicted for Drug Conspiracy. All 29 defendants are charged with conspiracy to distribute controlled substances, with some of those defendants additionally charged with other crimes, including International Money Laundering, Money Laundering Conspiracy and Distribution or Possession with Intent to Distribute Methamphetamine, Heroin, and/or Cocaine.
The Indictment alleges that beginning on November 4, 2016 and continuing until on or about September 11, 2019, in the Eastern District of Oklahoma and elsewhere, the defendants willfully and knowingly combined, conspired, confederated, and agreed together, and with others known and unknown to the Grand Jury, to commit offenses against the United States.
The Indictment also alleges that on certain dates from July 16, 2019 through August 8, 2019, in the Eastern District of Oklahoma, the defendants Enrique Pacheco, Lannie Jo Carter, Shaina Nicole Johnson, Trina Kay Rose, Daniel Pacheco, Maricsa Pacheco and Tabitha Ann Bryant, transmitted, transferred and attempted to transmit and transfer funds, that is United States Currency, by wire transfer from a place in the United States to a place outside the United States, with the intent to promote the carrying on of a specified unlawful activity, that is, the felonious importation, receiving, concealment, buying, selling, or otherwise dealing in a controlled substance, in violation of Title 21, United States Code, Section 1956(a)(2)(A) and Title 18, United States Code, Section 2, punishable by not more than 20 years imprisonment and a fine of the greater of $500,000.00 or two-times the amount of the transaction.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
United States Attorney Brian J. Kuester said, “Each year hundreds of people in Oklahoma die as a result of drug overdoses. Among the drugs contributing to these tragic deaths are methamphetamine and heroin. This operation, known as operation “Pop Can,” targeted an organization dealing those deadly drugs in the Eastern District and throughout Oklahoma.” Kuester added, “This investigation has been a shining example of how the public benefits when law enforcement agencies collaborate. The scope, duration, and success of this takedown would not have been possible without the participation of the agencies involved.”
“Operation Pop Can has thus far resulted in 25 arrests, and the seizure of over 30 pounds of meth and approximately 5 pounds of heroin. This investigation is yet another, where a contraband phone is smuggled into a DOC facility, and then utilized by an inmate to orchestrate criminal activity spanning across all three Oklahoma Federal Judicial Districts,” said DEA Assistant Special Agent in Charge John Scott. “The success in this case was a direct result of the collaboration between federal, state, and local agencies. It was a combined effort of everyone involved bringing their respective resources together to go after this criminal organization. There is no doubt that the takedown of this group will have a positive effect on our community.”
“The FBI works closely with our federal, state, and local law enforcement partners to combat organized crime and illegal drug trafficking in Oklahoma. Today’s arrests are a reminder to those who prey on our communities - your criminal activity will not be tolerated and you will be brought to justice,” said Melissa Godbold, Special Agent in Charge of the FBI’s Oklahoma City Division.
“The selling of illicit drugs in our communities negatively impacts nearly all aspects of our lives,” said Tamera Cantu, IRS Special Agent In Charge of the Dallas Field Office. “This investigation involves drug traffickers laundering their profits through wire transfers to Mexico. The role of IRS-Criminal Investigation in narcotics cases is to track down these profits and dismantle the drug trafficking organizations. Today’s indictments emphasize our commitment to this role as we work alongside our law enforcement partners to protect people’s security, health and wellbeing by bringing these criminals to justice.”
John Scully, Commissioner of the Oklahoma Department of Public Safety said, “Partnering with the Eastern District of the United States Attorney’s Office and our other law enforcement partners on this case, has resulted in multiple arrests and indictments. Those arrests will certainly keep Oklahomans safer and will have a positive impact on the drug epidemic in our communities. These Drug Trafficking Organizations commit violent crimes in order to continue their criminal enterprise and the desire by those addicted, to obtain these illegal drugs drives them to commit related crimes as well. Oklahomans should be proud of the coordinated response by the U.S. Attorney’s Office and these law enforcement agencies, to keep them safe.”
Oklahoma Bureau of Narcotics and Dangerous Drugs Control Interim Director Bob Cook said, “It takes law enforcement in a cooperative effort with our federal, state and local partners to dismantle these groups that threaten the peace and safety of our communities. OBN is committed in our mission to eradicate criminal drug organizations and fight to protect law abiding citizens.”
Muskogee County Sheriff Rob Frazier said, “Today’s search warrants and arrests represent the continued efforts of the Muskogee County Sheriff’s Office to combat illegal drugs and make Muskogee County a safer place for all. This office will continue our strong alliances with local, state, and federal law enforcement agencies to maximize our efforts against drug distributors in Muskogee County.”
“The Tulsa County Sheriff’s Office is proud to be part of this collaboration”, said Tulsa County Sheriff Vic Regalado. “These arrests are a perfect example of how our communities and the citizens of the Eastern District are safer, when local, state and federal authorities work together to take drug dealers off the streets.”
A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. All defendants are presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
25 Southern California Defendants Face Federal Charges Alleging Fraud Schemes that Cost Health Care Programs Millions of DollarsRead the Press Release
LOS ANGELES – A local health care fraud enforcement action has resulted in federal charges against of 25 Southern California defendants for their alleged involvement in healthcare fraud schemes that fraudulently sought over $150 million from the Medicare and Medicaid programs, as well as private insurers and union health benefit plans. Fourteen of those charged in federal court in Los Angeles and Santa Ana are doctors or medical professionals.
The charges announced today target schemes billing Medicare, Medicaid and other health care plans for services, testing and prescriptions that were not medically necessary or not actually provided to beneficiaries.
The cases announced today are the result of investigations being conducted by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG); the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; the Defense Criminal Investigative Service; the Amtrak Office of Inspector General; the U.S. Office of Personnel Management, Office of Inspector General; the California Department of Insurance; and the California Department of Justice.
The criminal cases have been brought by the United States Attorney’s Office and prosecutors in the Health Care Fraud Unit of the Criminal Division’s Fraud Section at the Justice Department who work with law enforcement partners under the aegis of the Medicare Fraud Strike Force.
“Corruption drains dollars from private insurers and public programs such as Medicare and Medicaid,” said United States Attorney Nick Hanna. “This office will continue to hold accountable anyone – including medical professionals – who seeks to bilk our nation’s health care system.”
“Today’s action shows that our ability to detect and prosecute health care fraud grows more sophisticated with each passing day,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice is using every tool at our disposal to target the medical professionals and others who place their personal greed above the public good.”
“Sticking taxpayers with a bill for unnecessary healthcare services will never be tolerated,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, our agency will tirelessly pursue physicians and others who threaten the integrity of Federal healthcare programs.”
“Health care fraud schemes cheat American taxpayers and healthcare programs out of millions of dollars,” said Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division. “With the assistance of the public, the FBI and partner agencies will continue to combat this unscrupulous criminal activity that seeks to financially exploit our healthcare system.”
“Criminal activity that drives up medical costs for Californians at the expense of vulnerable communities will not be tolerated,” said California Attorney General Xavier Becerra. “The California Department of Justice will continue to seek opportunities to work with our federal partners to not only prevent wrongdoing, but also target fraudsters and hold them accountable.”
A total of 10 cases are being announced today. Those charged are:
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Dr. Ronald Weaver, 70, of Pacific Palisades; Sara Soulati, 49, of Santa Monica; Dr. John Weaver, 75, of Alhambra; Dr. Ronald Carlish, 78, of Pacific Palisades; Dr. Howard Elkin, 68, of Whittier; Dr. Wolfgang Scheele, 79, of Los Angeles; and Dr. Nagesh Shetty, 74 of Huntington Beach, who were charged for their alleged participation in an approximately $135 million scheme to defraud Medicare through medically unnecessary cardiac treatments and testing through Global Cardio Care of Inglewood. This case is being prosecuted by DOJ Trial Attorneys Emily Z. Culbertson and Alexandra Michael.
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Navid Vahedi, 40, of Los Angeles; Vahedi’s pharmacy, Fusion Rx Compounding Pharmacy; and Joseph S. Kieffer, 39, a marketer, of Los Angeles, who were charged in a fraud and kickback scheme. Vahedi and Kieffer, allegedly paid commissions to marketers and some patients to obtain medically unnecessary compounded drugs to allow Fusion Rx to bill health care providers for those compounded drugs, many of which were reimbursed at rates much higher than average medications. To encourage patients to continue seeking the compounded drugs, Fusion Rx allegedly failed to collect copayments from patients. However, to avoid the scheme being uncovered in an audit, they also allegedly directed Fusion Rx staff to use gift cards to pay the patients’ copayments for them so that it would appear they made the required copayments. This conduct allegedly resulted in approximately $17 million in losses to health care providers, while the defendants spent substantial sums of money on themselves, including Vahedi’s purchase of a 1963 Ford Mustang Cobra. Also charged in a related case was Joshua Pearson, 40, a marketer, of St. George, Utah, for his alleged receipt of illegal kickbacks from Fusion Rx, Vahedi and Kieffer for patient referrals for compounded drugs (Pearson is a 26th defendant in the cases being announced today). The cases are being prosecuted by Assistant United States Attorneys Ashwin Janakiram and Alexander Schwab of the Major Frauds Section and Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section.
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Hilda Haroutunian, 59, of Sun Valley; Dr. Keyvan Amirikhorheh, 60, of Seal Beach; Lorraine Watson, 56, a physician’s assistant, of Valley Village; Noem Sarkisyan, 63, of North Hollywood; and Edmond Sarkisyan, 40, a medical assistant, of North Hollywood, who were charged for their alleged participation in an approximately $10 million scheme to defraud the Family Planning, Access, Care and Treatment (Family PACT) program administered by Medi-Cal, the California Medicaid program, through fraudulent claims for family planning services, testing and prescriptions for non-existent patients submitted through Los Angeles Community Clinic and associated diagnostic testing laboratories and pharmacies. The case is being prosecuted by DOJ Trial Attorney Alexis D. Gregorian.
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Amir Friedman, 54, an anesthesiologist, of Calabasas, who is charged for his alleged participation in a conspiracy to commit honest services mail and wire fraud and Travel Act violations involving approximately $800,000 in kickbacks for compounded pharmaceutical drugs involving New Age Pharmaceuticals, Inc., in Beverly Hills. The case is being prosecuted by Assistant United States Attorney Ashwin Janakiram.
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Susan H. Poon, 54, a chiropractor who resides in Dana Point, who was arrested today after a federal grand jury charged her in an approximately $2 million scheme to defraud Anthem, Aetna, and other Blue Cross Blue Shield Association affiliates, including the Teamsters Western Region and Local 177 health care plans. Through this scheme, Poon allegedly submitted false and fraudulent claims for chiropractic services never provided, medical diagnoses never given, and office visits that never occurred. Poon also allegedly submitted false and fraudulent prescriptions to a provider of durable medical equipment that relied on those false prescriptions in its reimbursement claims. Employees and employee-dependents of the United Parcel Service and Costco Wholesale Corporation, who allegedly never received the claimed services or sought the claimed medical equipment, were named as patients in Poon’s false claims and prescriptions. The case is being prosecuted by Assistant United States Attorney Daniel S. Lim of the Santa Ana Branch Office.
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Antonio Olivera, 78, of Downey; Emelita Cephass, 57, of Downey; and Martin Canter, 70, of Rancho Palos Verdes, who were charged for their alleged participation in a hospice kickback scheme. Olivera was also charged for his alleged participation in a scheme to defraud Medicare. Both schemes involve Mhiramarc Management LLC, a hospice located in Downey. In a separate case, hospice owner John O’Brien was charged with health care fraud conspiracy for his alleged role in the fraud scheme. The cases are being handled by DOJ Trial Attorney Justin P. Givens.
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Mahyar David Yadidi, 37, a chiropractor who resides in Los Angeles, who was charged with conspiracy to commit health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan. Yadidi allegedly defrauded the ILWU-PMA Plan through his chiropractic clinic, San Pedro Philips Chiropractic, by offering kickbacks to patients for attending the clinic and by billing the benefit plan for services that were not rendered to its patients, services that were not medically necessary, and services that were provided by unlicensed employees not qualified to perform them. Yadidi allegedly continued to operate his scheme after he was terminated as an authorized provider by the ILWU-PMA plan. Ivan Semerdjiev, 40, of Irvine, a chiropractor working for Yadidi, and Julian Williams, 44, of San Pedro, a personal trainer working for Yadidi, were also charged in connection with this fraud conspiracy. In total, Yadidi, Semerdjiev and Williams submitted almost $5 million in claims to the ILWU-PMA plan. The case is being prosecuted by Assistant United States Attorney Alex Wyman.
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Darren Hines, 49, a chiropractor who lives in the Harbor City neighborhood of Los Angeles, who was charged with health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan. Hines allegedly defrauded the ILWU-PMA plan through his chiropractic clinic, Advanced Alternative Health, by billing for services not rendered and services being provided by unlicensed employees who were not qualified to perform them, all after Hines was terminated as an authorized provider by the ILWU-PMA plan. Hines allegedly submitted over $500,000 in fraudulent claims over a short period of time. The case is being prosecuted by Assistant United States Attorney Alex Wyman.
“Health plans are tempting targets for unscrupulous individuals,” said Crisanta Johnson, Los Angeles Regional Director for the U.S. Department of Labor’s Employee Benefits Security Administration. “When wrongdoers victimize health plans and their participants, EBSA and its fellow enforcement agencies will take prompt, aggressive, and coordinated action to hold them accountable.”
Thomas W. South, Deputy Assistant Inspector General for Investigations, the U.S. Office of Personnel Management, Office of Inspector General, said: “I am proud of the outstanding work of the OPM OIG investigative staff and our law enforcement partners. The OPM OIG has zero tolerance for unethical behavior and we will vigorously investigate cases of fraud and abuse by professionals in the health care industry.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud relating to labor unions and their affiliated employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Quentin Heiden, Acting Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor, Office of Inspector General.
“Our office, in partnership with our fellow investigative agencies, will continue to comprehensively investigate and bring to justice the people who perpetrate health care fraud,” said Kevin Winters, Amtrak’s Inspector General. “We will remain vigilant in protecting Amtrak employees, retirees, and their dependents, by ensuring our health care dollars are not wasted on fraudulent providers.”
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Justice Department’s 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. There are 15 strike forces operating in 24 federal districts, and, since its inception in March 2007, strike force prosecutors have 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.
The U.S. Department of Labor, Office of Inspector General is responsible for identifying and reducing labor racketeering and corruption in employee benefit plans, labor-management relations, and internal union affairs. Through its criminal investigations and collaboration with the Employee Benefits Security Administration and other federal law enforcement partners, the DOL-OIG works diligently to ensure prosecution of individuals involved in wrongdoing related to union affairs.
The U.S. Department of Labor’s Employee Benefits Security Administration is responsible for protecting the retirement, health and other workplace-related benefits of America’s workers and their families. As part of its overall enforcement program, EBSA investigates criminal acts committed against employer- and union-sponsored health and welfare plans in coordination with other law enforcement partners.
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17 September 2019
Waterbury Crack Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHARLES WILKERSON, 37, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statement made in court, in May and June 2018, law enforcement made four controlled purchases of crack cocaine from Wilkerson in Waterbury. One of the crack cocaine sales involved approximately 34 grams of crack.
Wilkerson was arrested on a federal criminal complaint on August 16, 2018. On May 2, 2019, he pleaded guilty to one count of distribution of 28 grams or more of cocaine base (“crack”).
Wilkerson, who is released on a $200,000 bond, is required to report to prison on October 7.
Wilkerson’s criminal history includes several state convictions, including five convictions for distributing narcotics. At the time of the drug sales in May and June 2018, he was released on bond after being arrested in Torrington for distributing crack and other offenses.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation and Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Virginia man indicted for falsely altering his military discharge papersRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jon Sterling Williams, of Richmond, Virginia, was indicted today on a charge of falsely altering his military discharge paperwork, United States Attorney Bill Powell announced.
Williams, age 56, was indicted one count of “Altered Army Discharge Certificate.” Williams is accused of having a falsely altered discharge certificate, claiming he was awarded a Silver Star, two Purple Hearts, and two Bronze Stars. He was allegedly in possession of the certificate in January 2019 in Berkeley County.
Williams faces up to one year incarceration and a fine of up to $100,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Veterans Affairs Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Files Civil Lawsuit against Edward Snowden for Publishing a Book in Violation of CIA and NSA Non-Disclosure AgreementsRead the Press Release
The United States today filed a lawsuit against Edward Snowden, a former employee of the Central Intelligence Agency (CIA) and contractor for the National Security Agency (NSA), who published a book entitled Permanent Record in violation of the non-disclosure agreements he signed with both CIA and NSA.
The lawsuit alleges that Snowden published his book without submitting it to the agencies for pre-publication review, in violation of his express obligations under the agreements he signed. Additionally, the lawsuit alleges that Snowden has given public speeches on intelligence-related matters, also in violation of his non-disclosure agreements.
The United States’ lawsuit does not seek to stop or restrict the publication or distribution of Permanent Record. Rather, under well-established Supreme Court precedent, Snepp v. United States, the government seeks to recover all proceeds earned by Snowden because of his failure to submit his publication for pre-publication review in violation of his alleged contractual and fiduciary obligations.
The lawsuit also names as nominal defendants the corporate entities involved in publishing Snowden’s book. The United States is suing the publisher solely to ensure that no funds are transferred to Snowden, or at his direction, while the court resolves the United States’ claims. Snowden is currently living outside of the United States.
“Edward Snowden has violated an obligation he undertook to the United States when he signed agreements as part of his employment by the CIA and as an NSA contractor,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The United States’ ability to protect sensitive national security information depends on employees’ and contractors’ compliance with their non-disclosure agreements, including their pre-publication review obligations. This lawsuit demonstrates that the Department of Justice does not tolerate these breaches of the public’s trust. We will not permit individuals to enrich themselves, at the expense of the United States, without complying with their pre-publication review obligations.”
“Intelligence information should protect our nation, not provide personal profit,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This lawsuit will ensure that Edward Snowden receives no monetary benefits from breaching the trust placed in him.”
This lawsuit is separate from the criminal charges brought against Snowden for his alleged disclosures of classified information. This lawsuit is a civil action, and based solely on Snowden’s failure to comply with the clear pre-publication review obligations included in his signed non-disclosure agreements.
This matter is being handled by the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Virginia.
The claims asserted by the United States are allegations only; there has been no determination of liability.
United States Files Civil Lawsuit Against Edward SnowdenRead the Press Release
ALEXANDRIA, Va. – The United States today filed a lawsuit against Edward Snowden, a former employee of the Central Intelligence Agency (CIA) and contractor for the National Security Agency (NSA), who published a book entitled Permanent Record in violation of the non-disclosure agreements he signed with both CIA and NSA.
The lawsuit alleges that Snowden published his book without submitting it to the agencies for pre-publication review, in violation of his express obligations under the agreements he signed. Additionally, the lawsuit alleges that Snowden has given public speeches on intelligence-related matters, also in violation of his non-disclosure agreements.
The United States’ lawsuit does not seek to stop or restrict the publication or distribution of Permanent Record. Rather, under well-established Supreme Court precedent, Snepp v. United States, the government seeks to recover all proceeds earned by Snowden because of his failure to submit his publication for pre-publication review in violation of his alleged contractual and fiduciary obligations.
The lawsuit also names as nominal defendants the corporate entities involved in publishing Snowden’s book. The United States is suing the publisher solely to ensure that no funds are transferred to Snowden, or at his direction, while the court resolves the United States’ claims. Snowden is currently living outside of the United States.
“Intelligence information should protect our nation, not provide personal profit,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This lawsuit will ensure that Edward Snowden receives no monetary benefits from breaching the trust placed in him.”
“Edward Snowden has violated an obligation he undertook to the United States when he signed agreements as part of his employment by the CIA and as an NSA contractor,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The United States’ ability to protect sensitive national security information depends on employees’ and contractors’ compliance with their non-disclosure agreements, including their pre-publication review obligations. This lawsuit demonstrates that the Department of Justice does not tolerate these breaches of the public’s trust. We will not permit individuals to enrich themselves, at the expense of the United States, without complying with their pre-publication review obligations.”
This lawsuit is separate from the criminal charges brought against Snowden for his alleged disclosures of classified information. This lawsuit is a civil action, and based solely on Snowden’s failure to comply with the clear pre-publication review obligations included in his signed non-disclosure agreements.
This matter is being handled by the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s Civil Division.
The claims asserted by the United States are allegations only; there has been no determination of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney’s Office Settles Disability Discrimination Allegations with Operator of Skilled Nursing FacilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office reached an agreement today with Athena Health Care Systems (Athena), operator of 16 skilled nursing facilities in Massachusetts, to resolve allegations that they violated the Americans with Disabilities Act (ADA) by turning away patients because they were being treated for Opioid Use Disorder (OUD).
According to two complaints filed with the United States Attorney’s Office, individuals seeking admission at Athena facilities were denied because they were being treated with buprenorphine, a medication used to treat OUD. The individuals were seeking admissions to the facilities for health issues unrelated to their addiction, but required that the facilities administer their buprenorphine as they would administer any other medication. Individuals receiving treatment for OUD are generally considered disabled under the ADA, which, among other things, prohibits private healthcare providers from discriminating on the basis of disability.
Under the terms of the agreement, Athena will, among other things, adopt a non-discrimination policy, provide training on the ADA and OUD to admissions personnel, and pay a civil penalty of $10,000 to the United States.
“The opioid epidemic is a battle in which victory is measured by the number of lives saved,” said United States Attorney Andrew E. Lelling. “Medically-assisted treatment is a powerful tool for helping people in recovery to avoid relapse. To that end, my office will continue to identify and eliminate illegal barriers to treatment. We commend Athena for cooperating with our investigation and working with us to modify its policies for compliance with the ADA. We encourage other entities to proactively do the same.”
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce the Title III of the ADA and to eliminate discriminatory barriers to treatment for Opioid Use Disorder (OUD). In May 2018, the U.S. Attorney’s Office reached the first settlement of this kind with Charlwell House, a rehabilitation center that provides skilled nursing services. Today’s settlement marks the second resolution in the District of Massachusetts.
This matter was handled by Assistant U.S. Attorney Gregory Dorchak of Lelling’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney launches high school drug-free PSA contestRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell is encouraging high school students from across his district to spread the message of the dangers of drugs by holding a public service announcement contest.
“We obviously feel that aggressive prosecutions are a really important part of the drug battle. However, prevention and treatment are equally important goals. When students recognize the dangers of drug abuse, are educated on prevention efforts and encouraged in the process, significant progress can be made. We encourage as many students as possible to get involved,” said Powell.
The contest, which is open to all high schools in the 32 counties in the Northern District of West Virginia, is a chance for the students to write, act, and produce in their own television PSA, promoting a drug-free high school. Students are encouraged to come up with a drug-free message to share with their peers, produce a 60-second video, and submit the video to the contest by December 15, 2019.
All videos will be watched and judged by a panel of law enforcement partners and television professionals. The winner will be announced at the Cancer Research Classic basketball tournament January 3 and 4, 2020 at WesBanco Arena in Wheeling. The winner will receive an award from the U.S. Attorney’s Office, and the PSA will be shared with media outlets across the district for airing. All videos submitted to the contest will be showcased at the tournament.
Students are encouraged to join the Drug Free Club of America at their school to gain free admission to the event. For contest rules, questions, and more details, call 304-234-7743.
Two RGV Residents Order to Pay More Than $860,00 in RestitutionRead the Press Release
McALLEN, Texas – A durable medical equipment (DME) company owner and his biller have been sentenced for conspiring to submit fraudulent claims to Texas Medicaid, announced U.S. Attorney Ryan K. Patrick.
Edinburg resident Everardo Villarreal, 46, of Edinburg, and his secretary and Medicaid biller, Delilah Rae Robles, 39, of Weslaco, pleaded guilty June 24, 2019, admitting they submitted false claims for DME that was never delivered to Medicaid beneficiaries.
Today, U.S. District Judge Micaela Alvarez imposed a 40-month sentence for Villarreal, while Robles was sentenced to time served plus six months home confinement. Both will also be ordered to serve three years of supervised release following their sentences and have been ordered to pay restitution in the amount of $869,693.92.
Villarreal was the owner and operator of now defunct Durable Medical Supply Depot of Elsa. From on or about April 2010 to on or about September 2014, he and Robles billed Texas Medicaid in excess of $1,500,000 for DME that was either never delivered or were only partially delivered to Medicaid beneficiaries. Both Villarreal and Robles purchased or arranged for the purchase of personal identification numbers of local Medicaid beneficiaries in order to submit the false and fraudulent claims.
Previously released on bond, both were permitted to remain on bond. Villarreal will voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services – Office of Inspector General and FBI conducted the investigation. Assistant U.S. Attorney (AUSA) Cynthia A. Villanueva and former Special AUSA Marian Swanberg prosecuted the case.
Two Plead Guilty in Decades Long Scheme to Defraud the U.S. GovernmentRead the Press Release
PROVIDENCE – A Rhode Island couple has pleaded guilty in federal court to charges they participated in a scheme that lasted more than twenty years to defraud the United States Government of hundreds of thousands of dollars in federally-funded benefits.
Lens Chappell, a/k/a Carter Jefferson, 71, and his wife, Mulin Alexandre, a/k/a Kesa Pittman and later Kesa Jefferson, 40, of Providence, admitted they jointly participated in schemes to fraudulently obtain government documents, state Medicaid, as well as federally-funded U.S. Department of Housing and Urban Development (HUD), U.S Health and Human Services (HHS) and Social Security benefits dating back to at least 1998.
Appearing today before U.S. District Court Judge John J. McConnell, Jr., Lens Chappell pleaded guilty to conspiracy to defraud the United States, theft of public money, false statement in a passport application or use, and aggravated identity theft. On Monday, Mulin Alexandre pleaded guilty before U.S. District Court Judge John J. McConnell, Jr. to conspiracy to defraud the United States and passport fraud. Both will be sentenced on December 4, 2019.
According to court documents, beginning in 1998, Lens Chappell took on a relative’s identity and used that identity and a stolen identity to identify his wife in order to obtain government documents, including passports. Chappell arranged for Alexandre to come from her native Haiti to the United States unlawfully, changing her identity to Kesa Pittman and later Kesa Jefferson.
The pair used the fraudulent identities to obtain state Medicaid benefits and federally-funded benefits from HUD, HHS, and Social Security. According to information presented to the Court, from 1998 to 2014, it is alleged that the Providence couple fraudulently received an estimated $450,000 in federally-funded benefits they were not entitled to receive.
Lens Chappell and Mulin Alexandre’s guilty pleas are announced by United States Attorney Aaron L. Weisman; Rhode Island Attorney General Peter F. Neronha; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; U.S. Department of Health and Human Services, Office of Inspector General Special Agent in Charge Phillip M. Coyne, Special Agent in Charge of the Boston Field Office of the U.S. Department of State, Diplomatic Security Service William B. Gannon; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; and Superintendent of the Rhode Island State Police Colonel James M. Manni.
United States Attorney Aaron L. Weisman thanks the Rhode Island Department of the Attorney General and the Rhode Island Department of Human Services for their continued assistance in the investigation of this matter and support in the preparation of this case for prosecution in federal court.
The case is being jointly prosecuted in U.S. District Court by Assistant United States Attorney Terrence P. Donnelly and Rhode Island Special Assistant Attorney General David T. Bonzagni.
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Topeka Men Plead Guilty to Federal Carjacking ChargeRead the Press Release
TOPEKA, KAN. – Two Topeka men pleaded guilty today to a federal carjacking charge, U.S. Attorney Stephen McAllister said.
Chauncey Elliott Lyles, 20, Topeka, Kan., and Mathdaniel Squirrel, 23, Topeka, Kan., both pleaded guilty to one count of carjacking.
In their pleas, they admitted that on Jan. 30, 2019, in Topeka, they threatened the driver of a 2007 Cadillac SUV and stole the vehicle.
Sentencing is set for Nov. 26. The parties have agreed to recommend a sentence of not less than 60 months and not more than 87 months.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Skip Jacobs for their work on the case.