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Tuesday 23 July 2019
Philadelphia-Based Pharmacy Owners Agree to Pay $400,000 to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA, PA – United States Attorney William McSwain announced that the owners of E-Z Pharmacy II in Philadelphia have agreed to pay $400,000 to resolve liability under the False Claims Act.
Darshan Bapa Inc., doing business as E-Z Pharmacy II, and Natverbhai Patel will together pay $400,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period November 9, 2013 to December 31, 2016. These medications include Apidra, SoloSTAR, Renvela, Lantus, Revatio, Xifaxan, and Enbrel.
“Medicare fraud is a priority for our Office,” said First Assistant U.S. Attorney Jennifer Arbittier Williams. “Taxpayer dollars should not be wasted on fraud and abuse, and our Office will continue to scrutinize and pursue pharmacies that engage in such conduct. We appreciate E-Z Pharmacy II's willingness to promptly negotiate a resolution in this matter.”
“I also want to thank the Office of Audit Services,” Williams said, referring to the Philadelphia component within the Department of Health and Human Services, Office of the Inspector General. “Its referral of this matter to law enforcement made this result possible.”
“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayers dollars are only spent on bona fide medical claims.”
The settled civil claims are allegations only. There has been no determination of civil liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, and Auditor George Niedzwicki.
Philadelphia Brothers Charged with Violating Federal Drug and Gun LawsRead the Press Release
JOHNSTOWN, Pa. – Two residents of Philadelphia, Pa., were indicted on July 9, 2019, by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The six-count first superseding indictment named brothers John T. Terry, 44, and Gerald Terry, 50, as defendants.
According to the first superseding indictment presented to the court, between March 30, 2018, and April 4, 2018, John Terry and Gerald Terry conspired to distribute and to possess with the intent to distribute more than 500 grams of a mixture and substance containing a detectable amount of methamphetamine and cocaine. Also, on April 4, 2018, they were found in possession of a loaded Smith & Wesson M&P Shield .40 caliber semi-automatic pistol. On June 2, 1998, John Terry was convicted in United States District Court for the Eastern District of PA, of interference with interstate commerce by robbery, which is a crime punishable by imprisonment for a term exceeding one year. On March 13, 2012, Gerald Terry was convicted in the Court of Common Pleas of Philadelphia County, PA, of aggravated assault, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms. John Terry and Gerald Terry are also charged with possessing that same firearm in furtherance of a drug trafficking crime.
The law provides for a maximum sentence of life in prison and a fine of up to $31,000,000 or both for each of the defendants. Under the Federal Sentencing Guidelines, the actual sentence imposed on each of the defendants would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Arnold Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police SHIELD Unit and Somerset Turnpike Barracks conducted the investigation that led to the prosecution of John Terry and Gerald Terry.
Patient Recruiter Pleads Guilty in Multi-Million Dollar Tricare FraudRead the Press Release
Assistant U. S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – July 23, 2019
SAN DIEGO – Former U.S. Marine Bradley White pleaded guilty in federal court today to fraud charges, admitting that he participated in a scheme that bilked the military health care program known as TRICARE out of more than $65 million.
White, the sixth of eight defendants to plead guilty in the case so far, admitted as part of his guilty plea that he fraudulently recruited patients in return for a percentage of the amount TRICARE reimbursed for compounded medications that his sham patients ordered.
White was charged on June 20, 2019, and entered his guilty plea to conspiracy to commit health care fraud before U.S. Magistrate Judge Bernard G. Skomal. Sentencing is set for October 18, 2019 before U.S. District Judge Janis L. Sammartino.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient requires a particular dosage or application or is allergic to a dye or other ingredient.
According to the guilty plea, a team of individuals, including White, worked to recruit and pay Marines, primarily from the San Diego area, and their dependents – all TRICARE beneficiaries – to obtain compounded medications that would be paid for by TRICARE. This information was sent to Choice MD, the Tennessee medical clinic that employed Drs. Carl Lindblad and Suzy Vergot. Drs. Lindblad and Vergot then wrote prescriptions for the TRICARE beneficiaries, despite never examining the patients in person. Once signed by the doctors, these prescriptions were not given to the beneficiaries, but sent directly to particular pharmacies controlled by co-conspirators, which filled the prescriptions and billed TRICARE at exorbitant prices. TRICARE then reimbursed the pharmacy, and which in turn paid kickbacks – as a percentage of the TRICARE reimbursement -- to the pyramid scheme of recruiters.
Both Dr. Lindblad and Dr. Vergot as well as Candace Craven, a nurse practitioner at Choice MD, have pleaded guilty for their roles in the conspiracy to commit health care fraud. CFK, Inc., the corporate owner of one of the pharmacies, has also pleaded guilty as part of this investigation.
Josh Morgan, another former Marine from San Diego, also pleaded guilty in March 2018 for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions.
According to court documents, between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – Drs. Lindblad and Vergot authorized 4,442 total prescriptions. Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions. For his part, White admitted that he recruited patients who billed TRICARE over $7.6 million, for which he was paid over $195,000.
White was the eighth defendant charged in relation to this fraud scheme and the sixth to plead guilty. The two remaining defendants are Jimmy and Ashley Collins, owners of Choice MD. That case, 18CR0432-JLS, is still pending.
DEFENDANT Case Number 19-CR-2318-JLS
Bradley White Age: 31 Oakley, CA
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C § 1349
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Owner of La Crémaillère Arrested on Multiple Fraud ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of BARBARA MEYZEN, a/k/a “Bobbie Meyzen,” the owner and operator of La Crémaillère Restaurant in Banksville, New York, on multiple fraud charges. MEYZEN was arrested earlier today in Connecticut and will be presented this afternoon before United States Magistrate Judge Lisa Margaret Smith.
U.S. Attorney Geoffrey S. Berman said: “When Barbara Meyzen’s upscale clientele of bankers, celebrities, and other notable figures frequented her restaurant, they saw a stately French manor in a serene Westchester suburb. What they did not see was the alleged rampant financial fraud that was happening. As a result of her alleged fraud, Barbara Meyzen has potentially earned herself a reservation for one in federal prison.”
According to the allegations in the Complaint filed yesterday and unsealed today[1]:
MEYZEN has owned and operated the La Crémaillère Restaurant in Banksville, New York, since 1993. From August 2015 to July 2016, MEYZEN submitted applications for credit on behalf of La Crémaillère to at least nine lenders, factors, and financiers. In support of those applications, MEYZEN gave the potential lenders La Crémaillère’s bank statements that she had modified to change negative balances to positive balances; to remove references to checks returned for insufficient funds; and to reduce service fees. For example, MEYZEN modified one month’s statement to change a negative beginning balance of $32,865.57 to a positive beginning balance of $27,766.29; to change from negative to positive the negative ending balance for that month of $5,268.13; and to change service charges of $2,385.60 to $8.00. When one lender discovered that MEYZEN had altered the bank statements, MEYZEN created an email account in the name of one of the bank’s officers and sent the lender an email in which she, in the guise of the bank officer, told the lender that the statements were genuine.
MEYZEN also falsely represented to the same lender that the second mortgage on the restaurant’s property in Banksville had been discharged. She created a false satisfaction of mortgage on which she forged the signature of a representative of the restaurant’s second mortgagee, who is MEYZEN’s relative by marriage. MEYZEN filed the false satisfaction of mortgage with the Westchester County Clerk, paid the clerk’s filing fee, and sent a copy of the filed satisfaction of mortgage to the lender. MEYZEN later denied filing the false satisfaction of mortgage or paying the filing fee when she was interviewed by Special Agents of the FBI. She told the FBI that she believed a loan broker with whom she had worked in the past, and whom she identified by name, had filed the false satisfaction of mortgage.
Throughout the summer of 2017, MEYZEN charged more than $80,000 in food and restaurant supplies to one of the restaurant’s customers who had left her credit card number on file at the restaurant. When the customer discovered the charges, MEYZEN claimed the charges were a mistake and repeatedly promised to resolve the problem. MEYZEN gave the customer two checks in a total amount of $32,000 but the checks bounced. When she was interviewed by the FBI, MEYZEN denied knowing anything about unauthorized charges to the customer’s credit card or ever speaking with the customer about the unauthorized charges. MEYZEN also denied giving the customer checks.
Meyzen Family Realty Associates, LLC, which owns the real property from which the restaurant operates, filed for bankruptcy in the U.S. Bankruptcy Court in White Plains in September 2018. La Crémaillère Restaurant Corp., which operates the restaurant, filed for bankruptcy in April 2019. MEYZEN is a part owner of both entities. In May 2019, MEYZEN misled the office of the United States Trustee, which oversees bankruptcy cases, about insurance coverage on the restaurant property. MEYZEN caused her bankruptcy counsel to give the United States Trustee and an attorney for Meyzen Family Realty’s largest creditor documents indicating that the property was insured when, in fact, the insurance coverage had been canceled months earlier for nonpayment. MEYZEN knew that the coverage had been canceled because her insurance broker had communicated with her several times about the cancellation of the policies. In June 2019, MEYZEN falsely testified under oath in a deposition conducted by the United States Trustee that she was not aware that the insurance had been canceled when she caused her attorney to turn the documents over to the United States Trustee.
Two days after La Crémaillère filed for bankruptcy in April 2019, MEYZEN opened a bank account in her name and diverted more than $40,000 of the restaurant’s credit card receipts to that account. MEYZEN used a portion of that money to make payments to a food distributor and to an in-home nursing service. This account was closed on May 1, 2019. On May 7, 2019, MEYZEN opened an account in the name of Honey Bee Farm, LLC, at another bank and diverted La Crémaillère’s credit card receipts, as well as $20,000 in advances on La Crémaillère’s future credit card revenue, to that account. MEYZEN used a portion of that money to make a payment on Meyzen Family Realty’s mortgage and to pay food distributors, two wine wholesalers, a commercial trash service, a tableware and china company, and an employee of La Crémaillère.
* * *
MEYZEN, 57, of Redding, Connecticut, has been charged with one count of aggravated identity theft, which carries a maximum sentence of 20 years in prison and a mandatory minimum sentence of two years in prison; one count of wire fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison; one count of credit card fraud, which carries a maximum sentence of 15 years in prison; two counts of making false statements, each of which carries a maximum sentence of five years in prison; and one count of concealing a debtor’s property, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
The charges in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the FBI and the United States Trustee’s Office for Region 2.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
North Carolina Felon Admits Role in Gun Trafficking SchemeRead the Press Release
CAMDEN, N.J. – A convicted felon from North Carolina today admitted his role in an illegal scheme to buy weapons in Georgia and transport them to New Jersey for resale, U.S. Attorney Craig Carpenito announced.
Anthony Doyle, 28, of Fayetteville, North Carolina, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging him with conspiring to illegally traffic firearms and with being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:On January 25, 2018, law enforcement officers conducted a traffic stop in Deptford, New Jersey, of a car that was registered to Doyle. At the time of the traffic stop, Doyle was riding as the front seat passenger in the car. A woman named Anastacia Thomas, 26, who is also from Fayetteville, was driving the car.
During the stop, law enforcement officers observed a Glock handgun in plain view on the front seat passenger floor. This gun was loaded with 14 hollow tip bullets. The officers also observed a firearm box in the backseat of the car, next to a backpack. A search of the car and backpack revealed four additional handguns and two additional firearm boxes.
Law enforcement officers subsequently learned that Thomas had purchased all four of the handguns in the backpack on January 22, 2018, from a pawnshop in Jonesboro, Georgia. In addition, Thomas had purchased several other firearms from that same pawnshop over the course of multiple visits. Doyle had accompanied Thomas to the pawnshop on at least two of those visits.
The investigation revealed that from November 30, 2017, to January 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Doyle, who was a convicted felon and therefore could not legally purchase firearms, was responsible for selecting the firearms, transporting the firearms up to New Jersey, finding buyers for the firearms, and selling the firearms at a profit. To accomplish these tasks, Doyle used his social media accounts to advertise the firearms for sale, negotiate pricing for the firearms, and arrange the firearm sales. Doyle’s online discussions regarding illegal firearm trafficking are documented in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement officers.
Meanwhile, Thomas, who was not a felon at the time of the traffic stop, was responsible for purchasing firearms from federally licensed firearms dealers. Thomas also helped Doyle transport the firearms to New Jersey for resale and handled the profits from the resales.
The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The charge of being a felon in possession of a firearm carries a maximum penalty of ten years in prison and a $250,000 fine. Doyle’s sentencing is scheduled for October 28, 2019.Thomas previously pleaded guilty to her role in the firearm-trafficking conspiracy and her sentencing is scheduled for October 7, 2019.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Doyle: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Thomas: Paul A. Sarmousakis Esq., Avalon, New JerseyNonprofit Owner Pleads Guilty in Public Corruption SchemeRead the Press Release
A local nonprofit owner has pleaded guilty to his role in a public corruption scandal, admitting he funneled bribes from real estate developer Ruel Hamilton to former Dallas City Council Member Carolyn Davis, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Jeremy Scroggins, 44, pleaded guilty to misprision of a felony, or concealing knowledge of the actual commission of a felony, before Chief U.S. District Judge Barbara M.G. Lynn on Tuesday.
“As I have said from the start of my tenure as U.S. Attorney, North Texas will not and cannot tolerate public corruption at any level,” said U.S. Attorney Nealy Cox. “Mr. Scroggins facilitated bribe payments, and must be held accountable. ”
“Public corruption is one of the FBI’s top criminal priorities. It is often a multilayered scheme that extends much further from our elected officials,” said Matthew J. DeSarno, Special Agent in Charge of the FBI Dallas Field Office. “We are committed to investigating all levels of these deceptive schemes, including individuals like Mr. Scroggins who facilitate bribes.”
In plea papers, Mr. Scroggins, the owner of nonprofit Hip Hop Government (HHG), admits that Mr. Hamilton repeatedly wrote checks payable to Mr. Scroggins or HH, but these payments were generally meant for Ms. Davis.
Mr. Scroggins – who knew the payments were intended to influence the councilwoman’s official actions on Mr. Hamilton’s housing projects – admits that he cashed Mr. Hamilton’s checks and transferred the funds to Ms. Davis in cash without alerting authorities.
The late Ms. Davis pleaded guilty to conspiracy to commit bribery in March and was set to be sentenced September 20. Mr. Hamilton was charged with bribery in February, and has entered a plea of not guilty. Like all defendants, Mr. Hamilton is presumed innocent until proven guilty in a court of law. His trial is slated for January 6, 2020.
“We were shocked to hear of Ms. Davis’ tragic passing, and our sympathies go out to her family, friends, and former constituents,” said U.S. Attorney Nealy Cox. “Ms. Davis took responsibility for her conduct and she never wavered in her desire to make things right. We are confident justice will be served in all our public corruption cases.”
The Federal Bureau of Investigation conducted the investigation with assistance from the Internal Revenue Service - Criminal Investigations. Assistant U.S. Attorneys Marcus Busch, Andrew Wirmani, and Chad Meacham are prosecuting the case.
Navajo Man Sentenced to Five Years of Supervised Release for Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Alton Jay Cowboy, 50, an enrolled member of the Navajo Nation who resides in Las Cruces, N.M., was sentenced today in federal court in Santa Fe, N.M., for his conviction for violating the Sex Offender Registration and Notification Act (SORNA). Cowboy was sentenced to six-days of time already served in custody followed by five years of supervised release with special conditions, which include that he reside in a halfway house for up to 90-days; register as a sex offender, and have no contact with minor children.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Cowboy was charged by indictment on Feb. 27, 2018, with violating SORNA by failing to update his sex offender registration from April 4, 2017 through Dec. 27, 2017, in Bernalillo County, N.M. On April 5, 2018, Cowboy pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Multiple Defendants Indicted on Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that four South Dakota men have been indicted by a federal grand jury for several Child Pornography charges.
Derek Robert Schroeder, age 28, of Sioux Falls, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 17, 2019, and pled not guilty to the Indictment charging him with Transportation of Child Pornography and Possession of Child Pornography.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and up $100 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The Indictment alleges that between August 30, 2017, and January 22, 2018, Schroeder knowingly transported child pornography via a computer. The Indictment also alleges that between February 4, 2018, and July 31, 2018, Schroeder knowingly accessed, with intent to view, and possessed on his phone materials which contained an image of child pornography, which had been shipped and transported in and affecting interstate and foreign commerce.
Eric Wallace Hedrick, age 45, of Sioux Falls, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 17, 2019, and pled not guilty to the Indictment charging him with Receipt of Child Pornography.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 28, 2018, and May 28, 2019, Hedrick knowingly received and attempted to receive child pornography that has been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
Joshua Robert Hein, age 47, of Yankton, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 17, 2019, and pled not guilty to the Indictment charging him with Transportation of Child Pornography.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 1, 2018, and February 21, 2019, Hein knowingly transported child pornography via a computer, and by use of the internet uploaded graphic images and video files depicting one or more minors engaged in sexually explicit conduct.
Richard Charles Tellinghuisen, age 29, of Huron, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 18, 2019, and pled not guilty to the Indictment charging him with Distribution and Receipt of Child Pornography and Possession of Child Pornography.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and up $100 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The Indictment alleges that between September 11, 2017, and September 12, 2018, Tellinghuisen knowingly received and distributed, and attempted to receive and distribute child pornography via a computer. The Indictment also alleges that between January 16, 2017, and February 21, 2018, Tellinghuisen knowingly possessed and attempted to possess material containing an image of child pornography, which had been shipped and transported in and affecting interstate and foreign commerce.
All Defendants were indicted on July 9, 2019.
The charges are merely accusations and all Defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper are prosecuting the cases.
Schroeder, Hedrick, and Tellinghuisen were released on bond pending trial. Hein was returned to State Custody pending trial.
Jury trials have been set for September 24, 2019.
Mexican Citizen in Federal Court for Illegal Re-Entry After Being Previously DeportedRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jose Cristobal Cardenas-Cabrera, 31, of Mexico, was sentenced in federal court this afternoon on the charge of illegal re-entry into the United States after having been previously deported. Cardenas-Cabrera, who was arrested on state charges of possession of cocaine under the alias of Eduardo Pecheco, was identified under his true identity by United States Customs and Border Patrol agents. He was indicted on the federal charge of illegal re-entry after deportation in February of 2019 and he pled guilty in April of 2019.
United States District Court Judge Terry F. Moorer imposed a sentence of 13 months imprisonment, and ordered that upon his release from custody, Cardenas-Cabrera will be surrendered to a duly authorized immigration official for consideration of deportation. The judge further ordered (if Cardenas-Cabrera is not deported) that he will undergo drug and alcohol testing and treatment as conditions of a three-year term of supervised release. No fine was imposed, but the judge ordered that Cardenas-Cabrera pay a $100 special mandatory assessment.
The case was investigated by the United States Customs and Border Patrol, Immigration and Customs Enforcement, the Department of Homeland Security, and the Mobile Police Department. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
McNairy County Man Re-arrested and Indicted for Distribution of Hydrocodone while on Pre-Trial Release for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN – Nickolas Atkins, 40, of Selmer, TN., was indicted for possession with the intent to distribute and distribution of hydrocodone pills after having been placed on pre-trial release. Atkins had previously been indicted along with nineteen co-defendants in two indictments for conspiracy to distribute methamphetamine, cocaine and marijuana in the Western District of Tennessee. U.S. Attorney D. Michael Dunavant announced the new indictment today.
On March 18, 2019, a federal grand jury returned indictments charging 4 defendants with conspiracy to distribute methamphetamine and one count of being a felon in possession of a firearm that had been shipped in interstate commerce. On April 15, 2019, in a case connected to the previous indictment, a federal grand jury returned indictments, charging 15 defendants with conspiracy to distribute methamphetamine, cocaine, and marijuana, which included Atkins.
Atkins received a bond on his March 18, 2019 indictment and was placed on pre-trial release. On July 15, 2019, a federal grand jury returned a second indictment against Atkins for the distribution of hydrocodone pills on multiple occasions. Atkins was detained and held without bond by United States Magistrate Judge Jon A. York, after a hearing.
This investigation was conducted in conjunction with prosecutors in Jackson as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
2
If convicted, the defendant faces a sentence of not more than 20 years imprisonment. Atkins also faces a sentence of not less than 10 years up to life for his prior conspiracy indictment on March 18, 2019.
The Federal Bureau of Investigation, Alcohol, Tobacco, Firearms and Explosives (ATF), 24th Judicial District Drug Task Force, Decatur County Sheriff’s Office, Lexington Police Department, Dyersburg Police Department, Jackson Police Department, Selmer Police Department, McNairy County Sheriff’s Office and the Hardeman County Sheriff’s Office investigated this case.
Assistant U.S. Attorney Jerry Kitchen and Hillary Parham are prosecuting this case on behalf of the government.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Maryland man indicted for bank robberyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven L. Silverman, of Thurmont, Maryland, was indicted by a federal grand jury today for bank robbery, United States Attorney Bill Powell announced.
Silverman, age 49, is charged with one count of “Bank Robbery.” Silverman is accused of robbing the City National Bank of Berkeley Springs of $1,730 on June 4, 2019.
Silverman faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Morgan County Sheriff’s Office and the Berkeley Springs Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Files Lawsuit Against Spinal Implant Company, Its CEO, and Another Executive for Illegally Paying Millions of Dollars in Kickbacks to Surgeons in Exchange for Using Its ProductsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced today that the United States has filed a civil healthcare fraud lawsuit against LIFE SPINE INC. (“LIFE SPINE”), MICHAEL BUTLER, the founder, president, and chief executive officer of LIFE SPINE, and RICHARD GREIBER, the vice president of business development of LIFE SPINE. The Government’s complaint seeks damages and civil penalties under the False Claims Act for paying kickbacks in the form of millions of dollars of consulting fees, royalties, and intellectual property acquisition fees to surgeons to induce them to use LIFE SPINE’s spinal implants, devices, and equipment. The lawsuit alleges that the surgeons who received these payments accounted for approximately half of LIFE SPINE’s total domestic sales of spinal products from 2012 through 2018. As set forth in the complaint, these payments violated the Anti-Kickback Statute and, as a result of this unlawful conduct, LIFE SPINE, BUTLER, and GREIBER caused hospitals and surgeons to submit false claims for payment to Medicare and Medicaid.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Life Spine and its senior management flagrantly ignored the law by paying surgeons millions of dollars in fees and royalties to get them to use Life Spine products during spinal surgeries. Kickbacks to doctors can alter or compromise their judgment about the medical care and services to provide to patients, and can increase healthcare costs. This office will continue to hold companies and the people who run them accountable when they make improper payments to doctors.”
FBI Assistant Director William F. Sweeney Jr. said: "Cases like this are why patients sometimes distrust the care they receive because they don’t know if it’s what the doctor actually thinks, or if there is a company pushing a new drug or new device. People seeking medical treatment are dependent on the advice they get, they don’t have the expertise to question the doctors. The FBI does all it can to stop those companies who overlook the patient who is just hoping to get better, and only sees the dollar signs.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Paying kickbacks to physicians as a means to boost company profits, as alleged in this case, compromises medical judgement and drives up healthcare costs. Our agency, working closely with our law enforcement partners, will continue to investigate such illegal activities.”
The following allegations are based on the Complaint that was filed in Manhattan federal court and unsealed today:
LIFE SPINE is a Delaware corporation with its principal place of business in Huntley, Illinois. LIFE SPINE designs, develops, manufactures, and markets medical devices and equipment primarily used in spinal surgeries performed by orthopedic surgeons and neurosurgeons, including implants and instruments (“Life Spine Products”). BUTLER is the founder, president, and chief executive officer of LIFE SPINE and is its majority shareholder. BUTLER was closely involved in overseeing the operations of LIFE SPINE. From 2012 to 2015, GREIBER was involved in selecting and approving surgeons who served as paid “consultants” for LIFE SPINE.
LIFE SPINE paid surgeons to induce them to use Life Spine Products during their surgeries. LIFE SPINE aggressively recruited surgeons who had the potential to use a high volume of Life Spine Products to enter into agreements to serve as paid consultants and/or to transfer their patents/patent applications to LIFE SPINE in exchange for payments and promised support to bring the surgeons’ new products to market. LIFE SPINE tied these agreements and the associated payments – as well as the company’s continued commitment to devote resources to the surgeons’ product development projects – to the surgeons’ usage of Life Spine Products. LIFE SPINE and BUTLER expected surgeons to commit to using Life Spine Products at a certain level in exchange for the consulting fees, royalties, and intellectual property acquisition fees paid to them.
LIFE SPINE, with the knowledge, involvement, and participation of BUTLER and GREIBER, entered into agreements with dozens of surgeons. These agreements included medical education agreements under which the surgeons were paid to provide training and/or educational services; product development agreements under which the surgeons were paid to purportedly provide input on new products and then would receive royalties on future sales of the product; and intellectual property agreements under which the surgeons were paid large up-front acquisition fees for their patents/patent applications and then would receive royalties on sales of any products developed based on the patents. Life Spine paid surgeons millions of dollars in consulting fees, royalties, and intellectual property acquisitions pursuant to these agreements.
BUTLER informed LIFE SPINE staff that he expected surgeons who were paid for their consulting services to commit to using Life Spine Products. LIFE SPINE’s senior management, including BUTLER, closely tracked surgeons’ usage of Life Spine Products to ensure that the payments to surgeons were generating sufficient sales revenues for the company and that the surgeons were fulfilling their “commitment” to use Life Spine Products. LIFE SPINE went so far as to generate a report that compared surgeon consulting, royalty, and intellectual property payments to surgeon product usage levels, and then calculated an “ROI” (return on investment) for each surgeon based on those figures. If a surgeon’s usage was too low, LIFE SPINE managers, including BUTLER, pressured the surgeon to use more Life Spine Products during his or her surgeries.
The kickback scheme was successful. Surgeons who received payments from LIFE SPINE accounted for approximately half of LIFE SPINE’s total domestic sales of spinal products between 2012 and 2018. Most of these surgeons substantially increased their usage of Life Spine Products after entering into agreements with LIFE SPINE. These surgeons used Life Spine Products during procedures performed on Medicare and Medicaid patients, which resulted in the submission of kickback-tainted false claims to Medicare and Medicaid.
The Government intervened in a private whistleblower lawsuit before Judge Jed S. Rakoff that had previously been filed under seal pursuant to the False Claims Act.
Mr. Berman thanked the FBI and HHS-OIG for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jennifer Jude, Jeffrey K. Powell, and Lara K. Eshkenazi are in charge of the case.
Leavenworth Man Sentenced for Armed Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Leavenworth man was sentenced today to 154 months in federal prison for armed bank robbery, U.S. Attorney Stephen McAllister said.
Damon Hammeke, 26, Leavenworth, Kan., pleaded guilty to one count of armed bank robbery and one count of brandishing a firearm during a robbery. In his plea, he admitted that on Nov. 21, 2017, he robbed the Country Club Bank at 2310 South 4th Street in Leavenworth. He entered the bank wearing a white jacket and black mask and carrying a handgun. He left the bank with money.
Two days later, an officer in Tonganoxie attempted to stop him for a traffic offense. Hammeke fled, leading police on a high-speed chase through Tonganoxie, Basehor, Lansing, Leavenworth, Platte County, Mo., and Kansas City, Kan., before they were able to stop him.
McAllister commended the FBI, the Tonganoxie Police Department, the Kansas Highway Patrol, the Platte County, Mo., Sheriff’s Department, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Las Vegas Resident Sentenced to Prison for His Role in A Complex Telemarketing Scheme That Defrauded over 1,000 Timeshare OwnersRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced Monday to 20 months in federal prison for his role in a telemarketing scheme that defrauded more than 1,000 timeshare owners out of approximately $780,000, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Michael Kroger, 60, pleaded guilty on the eve of his jury trial to conspiracy to commit mail fraud and wire fraud. In addition to the prison term, United States District Judge Jennifer A. Dorsey, who noted during the sentencing that Kroger showed no remorse for his crimes’ financial and emotional impact on his victims, ordered Kroger, to pay restitution in the amount of approximately $212,396.
According to court documents, from around 2000 until about March 2010, there was an agreement between two or more persons to carry out a fraudulent timeshare ownership scheme. In about 2004, Kroger joined the conspiracy to fraudulently obtain money from victim timeshare owners. In furtherance of the scheme, Kroger and co-conspirator Michele Paonessa created fictitious companies and false contracts to lure in victims seeking to sell their timeshare ownerships. The fictitious contracts obligated victim timeshare owners to pay a monetary fee to process fictitious documents relating to the sales and to cover the closing costs. In reality, Kroger and Paonessa used the victims’ money for personal benefits and to further the scheme. Before victims would contact law enforcement or the Better Business Bureau, Kroger and Paonessa would abandon that business and create a new business which they continued to use to perpetrate the fraud. In all, approximately 29 fictitious companies were used in the scheme. Not a single timeshare ownership was actually sold during the course of the 10 year scheme. In total, approximately $782,090 was stolen from approximately 1,000 victims residing in Nevada, other states, and outside of the United States in places such as Canada.
Paonessa pleaded guilty and is scheduled to be sentenced on August 20, 2019. Paonessa faces the maximum penalty of 20 years of imprisonment and a fine of $250,000.
The case was investigated by the United States Secret Service, the Henderson Police Department, and the Southwestern Identity Theft and Fraud Taskforce (SWIFT). Assistant United States Attorneys Kimberly Frayn and Jared Grimmer prosecuted the case.
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Lamar/Red River County Residents Indicted on Federal Drug and Weapons ChargesRead the Press Release
PARIS, Texas - Eight Lamar County residents and a Red River County man have been indicted by a federal grand jury in Sherman for weapons and narcotics violations announced United States Attorney Joseph D. Brown today.
The charges are a result of the efforts of the ATF Eastern District of Texas Violent Crime Task Force, a cooperation between the Paris Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and multiple other regional law enforcement agencies. The following individuals were indicted on July 10, 2019 and arrested this week:
U.S. Attorney Joe Brown Speaking at Paris, Texas Press ReleaseEarnest Napoleon Edwards, a.k.a. Jay Edwards, 36, of Paris, Texas, was indicted in a three-count indictment for distribution of and possession with intent to distribute methamphetamine, and knowing and unlawful possession of a firearm and ammunition by a convicted felon.
Kenya Devonta Bell, 26, of Clarksville, Texas, was indicted for possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence.
Latray Wright, 26, of Paris, Texas, was indicted in a two-count indictment for two charges of possession of a firearm by a convicted felon occurring on March 16, 2019, and May 11, 2019.
Chadwick Cardell Pratt, 36, of Paris, Texas, was indicted in a three-count indictment for possession with intent to distribute a controlled substance, possession or carrying of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
Parris Quintez Hughes, 24, of Paris, Texas, was indicted in a two-count indictment for possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
Justin Dewayne Thomas, 30, of Paris, Texas, was indicted in a four-count indictment for conspiracy to distribute or possess with intent to distribute a controlled substance, and for three distinct periods of possession of multiple firearms while aware that he is a convicted felon.
Kayla Kyle, 29, of Paris, Texas, was indicted for conspiracy to distribute or possess with intent to distribute a controlled substance.
Jeffrey Whitehead, 33, of Paris, Texas, was indicted in a three-count indictment for possession with intent to distribute or dispense methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
The ATF’s Eastern District Task Force was created earlier this year as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a program designed to reduce violent crime through collaboration of local, state, and federal law enforcement and prosecution. Task force partners include the ATF, the Paris Police Department, Plano Police Department, Sherman Police Department, Frisco Police Department, The Colony Police Department, the Cooke County Sheriff’s Office, and the Collin County Sheriff’s Office.
“These charges are the result of good teamwork between these agencies,” said United States Attorney Joseph Brown. “They will work together all over northeast Texas to share information and resources and target the offenders who really drive violent crime rates – those carrying guns while they deal drugs and engage in other criminal behavior. The Project Safe Neighborhoods model has been effective all over the country in reducing violent crime.”
As part of the program, federal officials announced this week that the Paris Police Department would receive $100,000 in grant proceeds to provide equipment, including vehicles, cameras, and other surveillance tools.
“We are pleased to be able to take these offenders off the street,” said Paris Police Chief Bob Hundley. “These are repeat offenders, who continue to carry weapons and break the law, and we want to do everything we can to stop the behavior now, before someone gets really hurt. The grant funds we are being awarded will help that effort. They will provide investigative tools that we could not afford otherwise.”
“Collaboration is vital to ensure those who should not have guns do not have guns,” stated ATF Special Agent in Charge Jeffrey C. Boshek III. “The Project Safe Neighborhoods initiative brings law enforcement, prosecutors and community organizations together to develop comprehensive solutions to address violent crime.”
In addition to bringing law enforcement agencies together and providing grant funds for local partners, the Project Safe Neighborhoods initiative also provides funding for statistical research to track crime rate data, identify areas for law enforcement focus, and provide other statistical support. The initiative also supports crime prevention and offender reentry programs and improved resources for offenders upon release from incarceration.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Justice Department to Host Webinars on up to $167 Million Available to Improve Crime Victims Services for Alaska Native Villages, American Indian TribesRead the Press Release
Anchorage, Alaska – The U.S. Attorney’s Office for the District of Alaska will host a Department of Justice webinar that will review application procedures and the benefits to Alaska Native villages and American Indian tribes of awards to be made under the Department’s Fiscal Year 2019 Tribal Victim Services Set-Aside Program.
Those benefits include funding to support the establishment of new—as well as coordination and expanding existing—victim service programs that address the needs of a wide variety of crime victims in tribal communities.
The webinar takes place tomorrow, July 24, 9:30-11:30 a.m. Alaska Daylight Time and will be facilitated by the Department’s Office for Victims of Crime and Office of Tribal Justice.
“Alaska Natives suffer disproportionate rates of domestic abuse, sexual assault and other violent crimes,” said U.S. Attorney Bryan Schroder. “We encourage all of our native communities to participate in these webinars to learn how they can take advantage of these funds to provide and improve services to crime victims.”
This year’s solicitation builds on last year’s Tribal Victim Services Set-Aside Program, which directly funded 153 tribal applicants totaling an estimated $87.3 million (and another $20 million awarded in FY 2018 to fund other tribal victim services programs). The FY 2019 Tribal Victim Services Set-Aside Program allows applicants to select objectives and activities that are relevant to their specific community’s victim service needs.
Alaska Native Villages and American Indian Tribes are encouraged to register and participate in any of the remaining online webinars:
Date: Wednesday, July 24, 2019
Time: 9:30 – 11:30 a.m. (ADT)
Register: https://ojp.webex.com/ojp/onstage/g.php?MTID=e4027f1520d68bee24d87bd78b0ba2c4d
Host: U.S. Attorney’s Office, Anchorage, AlaskaDate: Thursday, July 25, 2019
Time: 2:00 – 4:00 p.m. (ADT)
Register: https://ojp.webex.com/ojp/onstage/g.php?MTID=ee12e99e1026d078d2b8cd756f42722bc
Host: Yuut Elitnaurviat, Bethel, AlaskaDate: Monday, July 29, 2019
Time: 10:00 a.m. – 12:00 p.m. (EST)
Register: https://ojp.webex.com/ojp/onstage/g.php?MTID=e09a221db081025d0c73ead7745420c53
Host: United South and Eastern Tribes, Inc., Nashville, TennesseeAdditionally, the Department’s Bureau of Justice Assistance and Office of Community Oriented Policing Services will share information about ongoing law enforcement and public safety training and programs available to tribal communities during the webinars.
Justice Department Reviewing the Practices of Market-Leading Online PlatformsRead the Press Release
The Department of Justice announced today that the Department’s Antitrust Division is reviewing whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers.
The Department’s review will consider the widespread concerns that consumers, businesses, and entrepreneurs have expressed about search, social media, and some retail services online. The Department’s Antitrust Division is conferring with and seeking information from the public, including industry participants who have direct insight into competition in online platforms, as well as others.
“Without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The Department’s antitrust review will explore these important issues.”
The goal of the Department’s review is to assess the competitive conditions in the online marketplace in an objective and fair-minded manner and to ensure Americans have access to free markets in which companies compete on the merits to provide services that users want. If violations of law are identified, the Department will proceed appropriately to seek redress.
Justice Department Launches National Public Safety Partnership with Wichita Police DepartmentRead the Press Release
WICHITA, KS - Today, officials from the Department of Justice's Bureau of Justice Assistance, the United States Attorney's Office's, District of Kansas, the Wichita Police Department and other city, state and federal law enforcement agencies convened in Wichita to initiate the National Public Safety Partnership (PSP) program with the Wichita Police Department. This Justice Department program is a three-year engagement that seeks to leverage department assets in support of a local jurisdictions' commitment to drive down violent crime.
On June 3, 2019, Attorney General William Barr announced the selection of the Wichita Police Department as one of ten FY 2019 PSP sites where the Justice Department will work collaboratively to provide training and technical assistance in areas such as crime analytics, emerging technology and community engagement.
Since 2017, the Justice Department has directed nearly $14.9 million in customized training and technical assistance to help build crime fighting capacity in PSP sites, including $6.6 million to support the FY 2019 sites through FY 2022. PSP seeks to bring law enforcement stakeholders together to work collaboratively in reducing violent crime attributed to felonious firearm use, drug trafficking and human trafficking.
“Today our team is on-site in Wichita to collaborate with local law enforcement officials in their mission to improve public safety and drive down violent crime,” said Jon Adler, Director of the Bureau of Justice Assistance. "Through the Public Safety Partnership, we are committed to fulfilling the Attorney General's priority of supporting local law enforcement combat violent gangs, felonious firearms use and drug trafficking," added Adler.
“This program will be emphasizing new technology that will help analyze local crime trends, identify hotspots and rapidly process crime scene data,” U.S. Attorney McAllister said. “Just as important, we’re going to draw on new ideas and best practices from a national network of major cities that are members of the Public Safety Partnership.”
“The WPD is excited to embrace this opportunity to more effectively address violent crime,” WPD Chief Gordon Ramsay said. “This opportunity allows us to further partner with our federal law partners and improve our community.”
Since 2017, the Justice Department has worked with more than 30 local jurisdictions under the nationwide PSP program. Many participating cities have already seen dramatic reductions in violent crime. New Orleans ended 2018 with 146 murders, the lowest number of murders since the early 1970s. In Milwaukee, homicides declined in 2018 for a third straight year after hitting a deadly peak in 2015.
Agencies in attendance at this meeting will include the U.S. Attorney’s Office, District of Kansas; the Office of Justice Programs; the Federal Bureau of Investigation; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Wichita Police Department; the Sedgwick County District Attorney’s Office; Mayor Jeff Longwell’s Office; the Sedgwick County Sheriff’s Office, Wichita Municipal Court and the Kansas Bureau of Investigation,
For more information about PSP, visit https://www.nationalpublicsafetypartnership.org.
Jury Convicts Oklahoma City Man of Trafficking Children for SexRead the Press Release
OKLAHOMA CITY – A federal jury has convicted GERMAINE COULTER, SR., 46, of Oklahoma City, of child sex trafficking and conspiracy to commit child sex trafficking, announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
On November 13, 2018, a grand jury returned a three-count superseding indictment against Coulter, a/k/a "Slim." Count One charged him with a child-sex-trafficking conspiracy in which he offered high school girls for commercial sex. Counts Two and Three charged him with substantive offenses of trafficking girls identified as Jane Doe 1 and Jane Doe 3.
At a trial that began on July 15 before Chief U.S. District Judge Timothy D. DeGiusti, a federal jury heard testimony that in January and February 2018, Coulter recruited females under the age of 18 to perform commercial sex work. Coulter told one girl she needed to make $1,000 per day, all of which would go to him, and, if she was successful, he would buy her a car, get her an apartment, and get her business cards after she turned 18. He directed his victims to call him "Daddy." Working with co-conspirator ELIZABETH ANDRADE, 36, of Edmond, he sent photos of one underage girl to prospective customers. The jury heard that Andrade began taking one of the girls with her on commercial sex appointments, where the girl performed sex acts for money. Between January 27, 2018, and February 19, 2018, Coulter and Andrade trained and directed the girl how to interact and perform sex acts with customers and how to convince her mother to let her stay with them.
The jury convicted Coulter yesterday on Counts One and Two. It was unable to reach a unanimous verdict on Count Three.
Andrade, a/k/a "Beth," "Bobbi Monroe," "Tiffany," and "Porsche," already stands convicted of conspiracy to commit child sex trafficking. On July 19, 2018, she pleaded guilty to a one-count superseding information. Both Coulter and Andrade have been in the custody of the U.S. Marshals Service since June 2018.
At sentencing, Coulter faces up to life imprisonment on the conspiracy conviction. In addition to leading to potential life imprisonment, Count Two also triggers a mandatory minimum sentence of ten years. Coulter also faces supervised release after incarceration of at least five years and up to life, in addition to fines of up to $250,000 per count, mandatory restitution, and a $5,100 special assessment on each count. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the FBI Oklahoma City Division and the Oklahoma City Police Department, with assistance from the Oklahoma County District Attorney’s Office. Assistant U.S. Attorneys K. McKenzie Anderson and Jessica Perry are prosecuting the case.
Reference is made to court filings for further information.
Jury Convicts Flynn Intel Group Founder of Conspiring to Act as an Undisclosed Agent of TurkeyRead the Press Release
ALEXANDRIA, Va. – After three hours of deliberations a federal jury convicted a California man today on charges of conspiring to act as an agent of a foreign government, conspiring to make false statements and willful omissions in a FARA filing, and acting as an agent of a foreign government.
“Rafiekian was held accountable for his actions and found guilty by a jury of his peers,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I want to thank the investigators and prosecutors for their thorough investigation, extensive briefing, and commitment to this case.”
“Today’s verdict should stand as a deterrent to any malign foreign influence that undermines the integrity of our political processes,” Assistant Attorney General John Demers said. “Through misrepresentations in his FARA filing, Mr. Rafiekian attempted to deceive the public and influence key leaders on behalf of Turkey. The Department of Justice treats these crimes with the gravity that they deserve.”
According to court records and evidence presented at trial, Bijan Rafiekian, 67, of San Juan Capistrano, California, along with his co-conspirator, Kamil Ekim Alptekin, 42, of Istanbul, a Turkish national with close ties to the highest levels of the Government of Turkey, were involved in a conspiracy to covertly influence United States politicians and public opinion against a Turkish national, Fethullah Gulen, who is an imam, writer, and political figure living in the United States. The Government of Turkey had filed two extradition requests for Gulen, and has been trying to convince the Department of Justice to extradite Gulen back to Turkey since 2015. The plot included using the Flynn Intel Group (FIG), a company founded by Rafiekian and Michael T. Flynn, which provided services based upon Flynn’s national security expertise.
According to court documents, the purpose of the conspiracy was to use FIG to delegitimize the Turkish citizen in the eyes of the American public and United States politicians, with the goal of obtaining his extradition, which was meeting resistance at the U.S. Department of Justice. At the same time, the conspirators sought to conceal that the Government of Turkey was directing the work. However, not only was Rafiekian told by Alptekin that Turkish cabinet-level officials had approved the budget for the project, but Alptekin also told Rafiekian that he provided the Turkish officials updates on the work. Rafiekian understood that Alptekin was relaying the Turkish officials’ directions on the work to Rafiekian, Flynn, and others at FIG.
According to court documents, the scheme included using a Dutch shell company, Inovo, owned by Alptekin to act as FIG’s “client.” FIG was paid $600,000 in three installments from an account in Turkey in Alptekin’s name. After Alptekin made the payments to FIG, FIG kicked back 20 percent of the payments to Alptekin’s company in the Netherlands, with two such kickbacks being made.
Rafiekian faces a maximum penalty of 15 years in prison when sentenced on October 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorneys James P. Gillis, John T. Gibbs, Aidan T. Grano, Trial Attorney Evan N. Turgeon of the Department of Justice’s Counterintelligence and Export Control Section, and Special Assistant U.S. Attorney Stephanie K. Sweeten 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. 1:18-cr-457.
Jury Convicts Flynn Intel Group Founder of Conspiring to Act as an Undisclosed Agent of TurkeyRead the Press Release
After three hours of deliberations a federal jury convicted a California man today on charges of conspiring to act as an agent of a foreign government, conspiring to make false statements and willful omissions in a FARA filing, and acting as an agent of a foreign government.
John C. Demers, Assistant Attorney General for National Security, G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
“Today’s verdict should stand as a deterrent to any malign foreign influence that undermines the integrity of our political processes,” Assistant Attorney General John Demers said. “Through misrepresentations in his FARA filing, Mr. Rafiekian attempted to deceive the public and influence key leaders on behalf of Turkey. The Department of Justice treats these crimes with the gravity that they deserve.”
“Rafiekian was held accountable for his actions and found guilty by a jury of his peers,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I want to thank the investigators and prosecutors for their thorough investigation, extensive briefing, and commitment to this case.”
According to court records and evidence presented at trial, Bijan Rafiekian, 67, of San Juan Capistrano, California, along with his co-conspirator, Kamil Ekim Alptekin, 42, of Istanbul, a Turkish national with close ties to the highest levels of the Government of Turkey, were involved in a conspiracy to covertly influence United States politicians and public opinion against a Turkish national, Fethullah Gulen, who is living in the United States. The Government of Turkey had filed two extradition requests for Gulen, and has been trying to convince the Department of Justice to extradite Gulen back to Turkey since 2015. The conspiracy included using the Flynn Intel Group (FIG), a company founded by Rafiekian and Michael T. Flynn, which provided services based upon Flynn’s national security expertise.
According to court documents, the purpose of the conspiracy was to use FIG to delegitimize the Turkish citizen in the eyes of the American public and United States politicians, with the goal of obtaining his extradition, which was meeting resistance at the U.S. Department of Justice. At the same time, the conspirators sought to conceal that the Government of Turkey was directing the work. However, not only was Rafiekian told by Alptekin that Turkish cabinet-level officials had approved the budget for the project, but Alptekin also told Rafiekian that he provided the Turkish officials updates on the work. Rafiekian understood that Alptekin was relaying the Turkish officials’ directions on the work to Rafiekian, Flynn, and others at FIG.
According to court documents, the scheme included using a Dutch shell company, Inovo, owned by Alptekin to act as FIG’s “client.” FIG was paid $600,000 in three installments from an account in Turkey in Alptekin’s name. After Alptekin made the payments to FIG, FIG kicked back 20 percent of the payments to Alptekin’s company in the Netherlands, with two such kickbacks being made.
Rafiekian faces a maximum penalty of 15 years in prison when sentenced on October 18. 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.
Assistant U.S. Attorneys James P. Gillis, John T. Gibbs, Aidan T. Grano, Trial Attorney Evan N. Turgeon of the Department of Justice’s Counterintelligence and Export Control Section, and Special Assistant United States Attorney Stephanie K. Sweeten are prosecuting the case.
Judge Hands Down 128 Month Sentence in Columbus Welcome Center Multi-Kilo Cocaine CaseRead the Press Release
COLUMBUS - A Phenix City, Alabama man found guilty of attempting to sell 10 kilos of cocaine to an undercover agent was sentenced to 128 months imprisonment and five years supervised release, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. A federal jury found Kenneth James, 51, guilty of Possession of Cocaine with Intent to Distribute on March 13, 2019, following a three-day trial before U.S. District Judge Clay D. Land. There is no parole in the federal system.
Mr. James was arrested at the Columbus Welcome Center parking lot on Williams Road in October 2017, during an undercover surveillance operation conducted by the Columbus Police Department. The defendant was carrying 11,995 grams of cocaine in brick form with the intent to sell 10 kilos of cocaine at $27,500 per kilo. A co-defendant, Marcus Marshall, 35, of Columbus, Georgia was also arrested during the sting, pleaded guilty to his crime, and was previously sentenced. Mr. James has a criminal past, and was convicted in December 1999 on the charge of Possession of Cocaine with Intent to Distribute in the Middle District of Alabama.
“The penalty is severe for career criminals who traffic large quantities of illegal drugs in the Middle District of Georgia,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “The Columbus Police Department stopped a tremendous amount of cocaine from being distributed in their city by two known, high-quantity drug traffickers. I want to personally thank them for their efforts in this case.”
This case was investigated by the Columbus Police Department and the DEA. Assistant U.S. Attorneys Mel Hyde and Chris Williams are prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jacksonville Man Indicted on Child Pornography and Enticement ChargesRead the Press Release
RALEIGH — Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned a twelve-count indictment charging Morgan Jeffrey Shepard, age 32, of Jacksonville, North Carolina, with one count of producing child pornography, three counts of enticing a minor to engage in a sexual activity, seven counts of receipt of child pornography, and one count of possession of child pornography.
The indictment alleges that beginning in or around September 2016, and continuing through in or around November 2016, SHEPARD persuaded and enticed a minor victim to engage in sexually explicit conduct for the purpose of creating child pornography. During the same dates, SHEPARD is alleged to have enticed the same minor victim to engage in sexual activity that constituted sexual exploitation of a child under North Carolina state law. The indictment alleges that between April 23 and April 27, 2018, SHEPARD enticed two additional minor victims to engage in criminal sexual activity. It further alleges that beginning at a time unknown and ending on July 13, 2017, Shepard received at least seven images containing visual depictions of minors engaged in sexually explicit conduct. Lastly, the indictment alleges that on July 13, 2017, Shepard was found to be in possession of digital media containing images and videos involving minors engaged in sexually explicit conduct.
If convicted of these charges, SHEPARD would face a statutory minimum sentence of 15 years’ imprisonment and a maximum sentence of up to life imprisonment. He also would face up to a lifetime of supervised release following any term of imprisonment.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The case is being investigated by the Department of Homeland Security, the Onslow County Sheriff’s Office, the Craven County Sheriff’s Office, and the Wilmington Police Department. Assistant United States Attorney Jake D. Pugh is prosecuting the case for the government.
Iowa Man Charged with Making Threats to Manhattan-Based Jewish OrganizationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging GARRETT KELSEY with sending threats to a Manhattan-based Jewish organization (the “Victim Organization”) by email and phone. KELSEY was arrested in Cedar Rapids, Iowa, this morning and is expected to be presented before a Magistrate Judge in the Northern District of Iowa later today.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Garrett Kelsey repeatedly conveyed obscenity-laden and hate-filled threats to a Jewish organization by phone and email. The alleged conduct is not protected speech. As charged, the conduct – making interstate threats – is a federal crime punishable by years in prison.”
FBI Assistant Director William F. Sweeney Jr. said: “The FBI will always follow threats that cross the line of free speech and threaten the safety of individuals and groups, especially when those threats are based on a religion or race. The fact that Mr. Kelsey allegedly continued his threatening behavior even after being informed that his previous actions were not protected speech makes his actions more abhorrent.”
Police Commissioner James P. O’Neill said: “The investigative efforts of New York City law enforcement are relentless and far-reaching. Whenever individuals – wherever they are based – pose a threat, the NYPD and our partners will work tirelessly to keep people safe. I thank our colleagues at the FBI and the Southern District for their partnership.”
As alleged in the Complaint unsealed today in Manhattan federal court[1]:
In late May 2019, KELSEY made violent threats by phone and email to the Victim Organization. On May 23, KELSEY called the Victim Organization and spoke briefly with one of its employees. A short time later, KELSEY called that employee’s number back and left a voicemail for the Victim Organization stating, “My people have fucking slaughtered your fucking people before and we will do it again. And right now, you are giving us incentive to do that . . . . Filthy fucking Jews.”
Later that same day, KELSEY sent the Victim Organization an email demanding that the Victim Organization remove a video about Nordic Neo-Nazis that the Victim Organization had uploaded to the Internet. KELSEY wrote: “Everywhere Jews go in the world they cause trouble. You have 3 days to remove this video and offer an apology to the Asatru community or we will be taking action against your organization full of degenerates.” “Asatru” appears to have been a reference to a religious movement recently linked to anti-Semitic and other racist groups.
The next day, KELSEY participated in a voluntary interview with law enforcement, during which he admitted to sending the threatening email and voicemail to the Victim Organization.
Approximately one week after his voluntary law enforcement interview, KELSEY changed the cover photograph associated with his Facebook account. The new cover photograph depicted Jewish residents of a ghetto in Warsaw, Poland, lined up facing a wall with their hands up. Those residents were detained after an uprising during World War II and ultimately were transferred to Nazi concentration camps.
* * *
KELSEY, 31, of Cedar Rapids, Iowa, is charged with one count of interstate transmission of threats to injure a person, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Berman also thanked the U.S. Attorney’s Office for the Northern District of Iowa. Mr. Berman noted that the case is ongoing.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Stephanie Lake is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Indianapolis Woman Sentenced to 13 Months for Illegal Purchase of Handgun Used in Murder of Sheriff's DeputyRead the Press Release
INDIANAPOLIS -- United States Attorney Josh J. Minkler, announced today an Indianapolis woman was
sentenced for her illegal purchase of the handgun used to murder Boone County Sheriff’s Deputy
Jacob Pickett in March 2018. Dawn Love Rochon, 30, was sentenced to 13 months in federal prison by
U.S. District Judge James R. Sweeney at the federal courthouse in Indianapolis.“When firearms are illegally purchased, possessed, or sold, it’s never for a good reason and the
results are often tragic,” said Minkler. “Judge Sweeney sent a loud and clear message that gun
violence will not be tolerated in the Southern District of Indiana and those who illegally acquire
firearms will be held accountable.”On February 28, 2017, Rochon purchased a Taurus PT709 9mm handgun from Indy Gun Bunker, a gun store
in Indianapolis, Indiana. On the federal form that Rochon completed for the purchase, Rochon gave a
false statement under penalty of perjury regarding her residential address. Such a false statement
violates federal law, and therefore Rochon’s acquisition of the Taurus handgun was illegal.On March 2, 2018, Anthony Baumgardt shot and killed Boone County Sheriff’s Deputy Jacob Pickett
using the Taurus handgun that Rochon illegally purchased. Baumgardt has since pled guilty to
Pickett’s murder and was sentenced to life in prison.At the sentencing hearing, Assistant United States Attorney William L. McCoskey told the Court that
Rochon’s illegal purchase of the handgu was “the first link in a terrible and tragic
chain of events leading to the murder of Jake Pickett.”This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, Indiana State Police, and the Boone County Sheriff’s Department.“I am extremely proud of the collaborative investigative efforts which resulted in the arrest,
conviction and sentencing of those whose actions played a role in the murder of Deputy Jacob
Pickett,” said Indiana State Police Superintendent Douglas G. Carter.According to Assistant United States Attorney William L. McCoskey, who prosecuted this case for the
government, Rochon must serve three years of supervised release after her sentence of 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 partner with federal and local law
enforcement agencies to prosecute individuals committing violent crimes involving firearms. See
United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3Hudson County Man Charged with Assault on Postal WorkerRead the Press Release
NEWARK, N.J. – A North Bergen man was arrested today on charges that he attacked a postal worker, U.S. Attorney Craig Carpenito announced.
Eduardo Perez, 34, is charged by complaint with one count of assaulting a federal worker. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
On or about June 22, 2019, defendant Perez parked his white pickup truck in an employees-only space in the parking lot of the Woodcliff Station Post Office in North Bergen, New Jersey. When Perez returned to his vehicle after closing time, he found that a postal vehicle was blocking the entrance to the parking lot, per Woodcliff Station policy. Although the exit from the lot remained unobstructed, Perez became irate and aggressive toward postal employees in the lot, demanding that the postal vehicle be removed from the entrance so that he could exit that way. Perez eventually removed his truck from the lot through the exit, nearly striking a postal employee in the process, but returned to the lot only moments later and accosted a postal worker who was unloading parcels from his postal vehicle. Perez swung his fist repeatedly toward the victim, striking the victim’s face and causing him to fall backward into his postal vehicle and then to the ground, knocking him unconscious. Perez then fled the scene. The victim was subsequently hospitalized for severe injuries to his face and head.
The charge of assaulting a federal worker carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited postal inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge James Buthorn in Newark, with the investigation leading to the charges. He also thanked the North Bergen Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Houston Man Hammered for Firearms Offenses Related to CarjackingRead the Press Release
HOUSTON – A 23-year-old Houston man has been ordered to federal prison following his conviction of two counts of brandishing a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick.
David Steve Elias pleaded guilty July 16, 2018.
Today, U.S. District Judge David Hittner ordered him to serve 150 months for each offense to run consecutively for a total of 300 months, which will be immediately followed by three years of supervised release. The sentence was enhanced based on the violent nature of the crimes.
Co-defendant Lawrence Benjamin Gordon, 23 of Houston, pleaded guilty to one count of carjacking and one count of brandishing a firearm and received a total sentence of 180 months in federal prison Feb. 27, 2019.
On July 21, 2017, Elias and Gordon successfully carjacked a victim of his Toyota Rav4. The victim was not able to identify either of the suspects, but said that the Hispanic male, later identified as Elias pistol whipped him and told the other accomplice, Gordon, to “grab his [sic].”
On July 22, 2017, Elias and Gordon were both armed when they carjacked a another victim and her boyfriend, stealing a black Lincoln. During the altercation, both defendants pointed the pistols at the victim and ordered them out of the vehicle, at which time Elias struck the male victim in the head with his gun.
The defendants also stole the victim’s iphone. Based on its location, police were able to find Elias and Gordon, followed them for a short while and ultimately attempted to apprehend both men. Elias got out of the vehicle and shot several rounds at the police and attempted to run. Gordon was apprehended from the vehicle.
The victim was later able to identify both of the defendants from a photo lineup, indicating Elias was the one who pistol whipped him.
At the time of their arrest, Gordon admitted he and Elias were involved in the carjacking of Rav4 and the Lincoln. Elias attempted to flea on foot and shot at the police, one police officer was injured with shards of glass from his windshield.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
High School Teacher Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Narraganset School District high school math teacher pleaded guilty today in federal court in Boston to receipt and possession of child pornography.
Warren Anderson, 27, of Lowell and Harvard, pleaded guilty to one count each of receipt and possession of child pornography. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 16, 2019.
As part of an ongoing investigation into the online trade of child pornography through the use of Kik messenger, law enforcement interviewed Anderson in August 2018. Anderson admitted accessing sites on the dark web to obtain child pornography, and forensic analysis of his computers revealed that he had thousands of files of child pornography, and that he had used both Kik and a dark web-based messaging platform to discuss and trade child pornography.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 10 years in prison. Both charges also provide for a mandatory minimum sentence of five years and up to a lifetime of supervised release and a fine of up to $250,000 fine. 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 Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations, made the announcement today. Assistance was provided by the Harvard and Templeton Police Departments. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Harlingen Man Sentenced for Child Pornography ChargeRead the Press Release
BROWNSVILLE, Texas – A 63-year-old U.S. citizen from South Texas has been ordered to federal prison following his conviction of possessing of child pornography, announced U.S. Attorney Ryan K. Patrick.
Charles Elmer Fankhauser pleaded guilty Aug. 28, 2018.
Today, U.S. District Judge Fernando Rodriguez ordered he serve 97 months. Following the term of imprisonment, Fankhauser must also serve 10 years of supervised release during which time he during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
At the hearing, the court read excerpts from several impact statements as demonstrating that this is not a victimless crime.
On or about Dec. 26, 2017, authorities initiated an investigation of child pornography sharing which led them to Fankhauser’s address in Harlingen. A search warrant later yielded a laptop computer on which forensic analysis showed approximately 33,914 images and 1,776 videos of child pornography.
Fankhauser was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorneys Jason Corley and Ana C. Cano prosecuted the case.
Guilty Verdicts: Wichita Pharmacist Unlawfully Distributed Rx DrugsRead the Press Release
WICHITA, KAN. – A federal jury found a Wichita-area pharmacist guilty today on charges of unlawfully dispensing opioid prescription drugs, U.S. Attorney Stephen McAllister said.
Ebube Otuonye, 46, Bel Aire, Kan., was convicted on the following counts:
Conspiracy to unlawfully distribute prescription drugs (count one).
Unlawfully distributing prescription drugs (count two).
Health care fraud (counts three and four).
The crimes occurred while Otuonye owned and operated Neighborhood Pharmacy at 2810 E. 21st in Wichita, where he filled prescriptions for patients of Dr. Steven R. Henson. In October 2018, Henson was convicted of unlawfully distributing prescription drugs outside the usual course of professional medical practice and without a legitimate medical purpose. In March 2019, Henson was sentenced to life in federal prison.
During trial, prosecutors presented evidence that Henson’s patients had difficulty filling Henson’s prescriptions at pharmacies other than Neighborhood Pharmacy. Otuonye’s pharmacy charged more than other pharmacies and he set up a system requiring Henson’s patients to fill three non-narcotic prescriptions when filling a narcotic prescription.
A sign in the pharmacy said: “You may use another pharmacy if all you want to fill is (a) narcotic prescription.”
Evidence at trial showed Henson’s patients took their prescriptions to Otuonye himself because another pharmacist at Neighborhood Pharmacy refused to fill them. Prosecutors argued that Otuonye failed to perform his professional responsibilities by continuing to fill prescriptions for Henson’s patients despite warning signs including: Large numbers of prescriptions for highly addictive drugs, customers paying cash, multiple patients coming in at once with Henson’s prescriptions and patients from the same family presenting identical prescriptions.
Otuonye filled prescriptions for more than 21,600 tablets of oxycodone, more than 48,600 tablets of methadone, more than 18,000 tablets of hydromorphone and more than7,800 tablets of alprazolam.
Prosecutors also presented evidence that Otuonye submitted claims to Medicare and Medicaid for filling Henson’s prescriptions.
Sentencing is set for Oct. 23. Counts one and two carry a penalty of up to 20 years in federal prison and a fine up to $1 million. Counts three and four carry a penalty of up to 10 years and a fine up to $250,000.
McAllister commended the Drug Enforcement Administration, the Overland Park Police Department, the Newton Police Department, the Sedgwick County Sheriff's Office, the Lee's Summit Police Department, the Johnson County Sheriff's Office, the U.S. Department of Health and Human Services, Assistant U.S. Attorney Mona Furst, Assistant U.S. Attorney Jason Hart, Assistant U.S. Attorney Ryan McCarty, and Special Assistant U.S. Attorney Katherine Andrusdak for their work on the case.
Grant County Man Sentenced to 78 Months for Possessing Methamphetamine & FirearmsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Dustin Caya, 35, Mount Hope, Wisconsin, was sentenced July 19 by U.S. District Judge William Conley to 78 months in federal prison for possessing more than 50 grams of methamphetamine with the intent to distribute, and possessing a firearm as a felon. Caya was convicted of these charges after he entered a plea to them on July 19.
Officers from the Grant County Sheriff’s Office found more than 350 grams of methamphetamine, along with scales, packaging material, and large sums of money in Caya’s home on June 1, 2018. There were also numerous loaded firearms throughout the house, despite the fact that Caya, a convicted felon, was prohibited from possessing firearms. Caya was also under State of Wisconsin extended supervision for the prior felony conviction at the time he committed these offenses.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Caya were the result of an investigation conducted by the Grant County Sheriff’s Office, Prairie du Chien Police Department, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Robert A. Anderson.
Four Chinese Nationals and Chinese Company Indicted for Conspiracy to Defraud the United States and Evade SanctionsRead the Press Release
A federal grand jury has charged four Chinese nationals and a Chinese company with violating the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA and defraud the United States; conspiracy to violate, evade and avoid restrictions imposed under the Weapons of Mass Destruction Proliferators Sanctions Regulations (WMDPSR); and conspiracy to launder monetary instruments.
The announcement was made by Assistant Attorney General for National Security John C. Demers, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and U.S. Attorney Craig Carpenito for the District of New Jersey.
The indictment returned yesterday by a federal grand jury in Newark, New Jersey charges Ma Xiaohong (Ma); her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID); and three of DHID’s top executives – general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo) – with violating IEEPA, conspiracy to violate IEEPA and to defraud the United States and conspiracy to launder monetary instruments.
“Through the use of more than 20 front companies, the defendants are alleged to have sought to obscure illicit financial dealings on behalf of sanctioned North Korean entities that were involved in the proliferation of weapons of mass destruction,” said Assistant Attorney General John Demers. “But through the tireless efforts of federal law enforcement, we were able to shine a light on their lawless conduct and take the first step in bringing them to justice.”
“Any Chinese company conspiring to do business with sanctioned WMD proliferators through the U.S. banking system should think twice,” said Assistant Attorney General Benczkowski. “This indictment shows the Department’s resolve to use every tool of criminal prosecution to detect illicit financial transactions and enforce U.S. sanctions.”
“Ma, her company, and her employees tried to defraud the United States by evading sanctions restrictions and doing business with proliferators of weapons of mass destruction,” said U.S. Attorney Carpenito. “We will continue to work closely with our partners in the National Security and Criminal Divisions in order to identify and prosecute defendants like these, in order to preserve a safer and more fair environment for all.”
According to the indictment, DHID was a Chinese company whose core business was trade with North Korea. DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the Office of Foreign Assets Control (OFAC) designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin). President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009. Tanchon and Hyoksin were identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.
Beginning after the designation of KKBC as an SDN in August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions. The indictment alleges that from December 2009 to September 2015, the defendants established front companies in offshore jurisdictions such as the British Virgin Islands, the Seychelles, Hong Kong, Wales, England, and Anguilla, and opened Chinese bank accounts held in the names of the front companies at banks in China that maintained correspondent accounts in the United States. The defendants used these accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea. These sales transactions were allegedly financed or guaranteed by KKBC. These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, including a bank processing center in Newark, New Jersey, according to the allegations in the indictment. As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program.
Ma, Zhou, Hong and Luo face a statutory maximum sentence of 20 years in prison and a $1 million fine on the charge of violating IEEPA, a maximum of five years in prison and a $250,000 fine on conspiracy to violate IEEPA and to defraud the United States, and a maximum of 20 years in prison and a $500,000 fine on the charge of conspiracy to launder monetary instruments. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is handling the case. The Criminal Division’s Office of International Affairs provided significant assistance in the investigation. Trial Attorney Jennifer Wallis of the Criminal Division’s Money Laundering and Asset Recovery Section; Trial Attorney Christian E. Ford of the National Security Division’s Counterintelligence and Export Control Section; and Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit, Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit (ARMLU), and Assistant U.S. Attorney Barbara Ward of ARMLU in the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
Four Chinese Nationals and Chinese Company Indicted for Conspiracy to Defraud the United States and Evade SanctionsRead the Press Release
NEWARK, N.J. – A federal grand jury has charged four Chinese nationals and a Chinese company with violating the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA and to defraud the United States; conspiracy to violate, evade and avoid restrictions of the Weapons of Mass Destruction Proliferators Regulations (WMDPR); and conspiracy to launder monetary instruments, U.S. Attorney Craig Carpenito for the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Assistant Attorney General John C. Demers of the Justice Department’s National Security Division announced.
The indictment returned yesterday by a federal grand jury in Newark charges Ma Xiaohong (Ma); her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID); and three of DHID’s top executives – general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo) – with violating IEEPA, conspiracy to violate IEEPA and to defraud the United States; and conspiracy to launder monetary instruments.
“Ma, her company, and her employees tried to defraud the United States by evading sanctions restrictions and doing business with proliferators of weapons of mass destruction,” said U.S. Attorney Carpenito, “We will continue to work closely with our partners in the National Security and Criminal Divisions in order to identify and prosecute defendants like these, in order to preserve a safer and more fair environment for all.”
“Through the use of more than 20 front companies, the defendants are alleged to have sought to obscure illicit financial dealings on behalf of sanctioned North Korean entities that were involved in the proliferation of weapons of mass destruction,” said Assistant Attorney General John Demers. “But through the tireless efforts of federal law enforcement, we were able to shine a light on their lawless conduct and take the first step in bringing them to justice.”
“Any Chinese company conspiring to do business with sanctioned WMD proliferators through the U.S. banking system should think twice,” said Assistant Attorney General Benczkowski. “This indictment shows the Department’s resolve to use every tool of criminal prosecution to detect illicit financial transactions and enforce U.S. sanctions.”According to the indictment in this case, DHID is primarily owned by Ma and is located near the North Korean border. DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the Office of Foreign Assets Control (OFAC) designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin). President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009. Tanchon and Hyoksin were so identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.
Beginning after the designation of KKBC as an SDN in August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions. The indictment alleges that from December 2009 to September 2015, DHID used these front companies, established in offshore jurisdictions such as the British Virgin Islands, the Seychelles, Hong Kong, Wales, England, and Anguilla, and opened Chinese bank accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea. These sales transactions were allegedly financed or guaranteed by KKBC. These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, including a bank processing center in Newark, New Jersey, according to the allegations in the indictment. As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program.
Ma, Zhou, Hong and Luo face a maximum of 20 years’ imprisonment and a $1 million fine on the charge of violating IEEPA, a maximum of 5 years’ imprisonment and a $250,000 fine on conspiracy to violate IEEPA and to defraud the United States, and a maximum of 20 years’ imprisonment and a $500,000 fine on the charge of conspiracy to launder monetary instruments.
U.S. Attorney Carpenito, Assistant Attorney General Benczkowski, and Assistant Attorney General Demers credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark and Special Agent in Charge Sean Kaul in Phoenix, Arizona, for the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit, Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit (ARMLU), and Assistant U.S. Attorney Barbara Ward of ARMLU in the U.S. Attorney’s Office for the District of New Jersey; Trial Attorney Jennifer Wallis of the Criminal Division’s Money Laundering and Asset Recovery Section; and Trial Attorney Christian E. Ford of the National Security Division’s Counterintelligence and Export Control Section.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Former Synovus Employee Sentenced to Prison for Defrauding Bank and Tax EvasionRead the Press Release
MACON – A former commercial banker for Synovus was sentenced to 24 months in federal prison this morning after he admitted to defrauding the bank and evading taxes on his illegal earnings, said Charles E. Peeler, the United States Attorney for the Middle District of Georgia. John D. Evans, 48, of Columbus, Georgia was sentenced by United States District Court Judge Clay D. Land to 24 months imprisonment, three years supervised release plus $166,480.94 in restitution to Synovus and $221,357 in restitution to the Internal Revenue Service. Mr. Evans admitted guilt to four counts of Bank Fraud and four counts of Tax Evasion on November 28, 2018. There is no parole in the federal system.
Mr. Evans admitted in his signed plea agreement that the fraud occurred between July 2, 2013 and May 24, 2017 while he worked as a commercial banker for Synovus. Mr. Evans managed some of the largest clients for Synovus and diverted $1,046,602 in Synovus client funds into a personal account he opened at another bank. Financial records revealed that Evans used these funds to pay for a wide assortment of his personal expenses, including payments on vehicles, credit card bills, vacations, jewelry, and cash withdrawals. In addition, Mr. Evans failed to pay income taxes on the stolen money, amounting to $221,357.
“This defendant will pay a high price for breaching the trust of his clients and his employer. Fraud and tax evasion are serious crimes that carry serious punishment. Our office stands with corporate and citizen victims by prosecuting these crimes and holding fraudsters accountable for their conduct,” said Charlie Peeler, U.S. Attorney. “I want to thank the FBI and the IRS for their outstanding work on this matter. I also want to thank Synovus for partnering with law enforcement to ensure this defendant is brought to justice.”
“We are grateful to the FBI and the U.S. Attorney’s Office for the Middle District of Georgia for bringing this matter to a conclusion, and we are pleased that no customer incurred a loss as result of Mr. Evans’ actions,” said Lee Underwood, Communications Director for Synovus.
“Because of the cooperation between the FBI and our law enforcement partners, and the cooperation of Synovus, Evans is being held accountable for his greed-driven actions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Anyone who tries to take advantage of a trusted position by illegally profiting from it should see this sentencing as a warning that the FBI is determined to pursue justice for the companies who are victimized.”
This case was investigated by the Internal Revenue Service, the Federal Bureau of Investigation, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. Assistant United States Attorney Melvin Hyde prosecuted the case for the United States.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former South Carolina Resident Sentenced to Federal Prison for Charity Fraud Scheme Targeting Marine Corps FamiliesRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced today that John Shannon Simpson, age 44, of Lee County, Florida, was sentenced in federal court after pleading guilty to Wire Fraud. United States District Judge David C. Norton of Charleston sentenced Simpson to four years in federal prison and three years of supervised release to follow. This sentence will run consecutively with a nine-year state sentence that Simpson is serving in Florida. Simpson was also ordered to pay restitution of $141,709.44 to the victims of his fraud.
Evidence presented to the court established that in May 2014, Simpson founded a charitable organization entitled “Marines and Mickey” and served as the President. The purpose of the charity was to provide funds to selected United States Marines Corps (USMC) service members and their families to defray their costs of visiting the Walt Disney Resorts. The charity was also supposed to provide funds to the families of newly graduated Marines to defray the families’ costs of attending USMC boot camp graduations, including some held at Parris Island, South Carolina, and San Diego, California.
The charity claimed in its promotions and requests for money that 100% of the donations went directly to Marines and their families through the charity’s programs. The charity actively solicited donations on and near the USMC base in Parris Island, South Carolina, and elsewhere. The remainder of monies raised by the charity were a combination of private and corporate donations to the charity, including by USMC recruits and recent boot camp graduates.
While acting as the charity’s President and in support of fundraising for the charity, Simpson falsely represented himself as a retired career Marine with as much as 20 years of service, a retired Master Sergeant, a former Drill Instructor, and a Recon Marine.
In fact, Simpson spent less than five years in the Marine Corps. He entered active duty on June 28, 1993. He was absent without leave (AWOL) from June 10, 1996, to June 19, 1997. The highest rank he achieved prior to going AWOL was Lance Corporal/E-3, and his operational specialty was Basic Disbursing Clerk. Simpson was found guilty at a Special Court Martial for violation of Article 86 (Absence without leave) of the Uniform Code of Military Justice, was reduced in rank to Private/E-1, and was given a Bad-Conduct Discharge, which was effective on May 5, 1998.
By misleading donors and volunteers about his military background, Simpson was able to add credibility to his solicitations for money.
The charity was in operation from May 2014 through 2016, and it received approximately $481,000 in donations during that time-period. However, despite Simpson’s claims that 100% of the donations would go to Marines and their families through the charity’s programs, only about $90,000—or about 19% of the donations—were used for charitable purposes. Simpson diverted the remainder of the monies in the charitable accounts, approximately $391,000, for his personal use and enrichment.
The primary victim of Simpson’s scheme was the mother of a United States Marine killed in the active shooter attack at a military center in Chattanooga, Tennessee, in July 2015. Simpson fraudulently induced the Gold Star mother and others to give Simpson’s charity about $131,000, all in honor of the Gold Star mother’s son, including $75,000 of the Gold Star mother’s own money and $25,000 that the Community Foundation of Greater Chattanooga donated at the direction of the Gold Star mother.
The charity also held a fundraising benefit in New York to raise money for a Disney World trip for a Marine family whose minor daughter was terminally ill. The charity advertised all proceeds from the event would go to the minor daughter and her family for a Disney World trip, and to help pay for the family’s needs. Because the minor daughter died prior to the fundraiser, the trip intended for the minor daughter and her family, including her father who is an active duty U.S. Marine Corps Drill Sergeant, was donated to another family at the request of the minor daughter’s family. However, the charity, after paying all of the expenses of the fundraiser and sending the other Marine family to Disney World, still had about $3,200 of donations left over. Simpson kept that money for himself instead of giving it to the minor daughter’s family.
Additionally, during 2015 and 2016, Simpson made unauthorized withdrawals from the bank accounts of at least seven active-duty Marines who had recently graduated from boot camp. Simpson convinced them to allow him to make recurring withdrawals from their accounts in nominal amounts to support the charity. Instead, he used their debit card numbers to make unauthorized withdrawals from their accounts in a combined total amount of more than $5,000.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and Naval Criminal Investigative Service (NCIS). Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
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Former Bedford VA Nursing Assistant Charged with Making False StatementsRead the Press Release
BOSTON – A former nursing assistant at the Veterans Affairs (VA) Medical Center in Bedford was charged today in federal court in Boston for making false statements to federal agents in connection with an investigation of a patient’s death.
Patricia A. Waible, 52, of Nashua, N.H., was charged in an Information and agreed to plead guilty to two counts of making false statements. Waible will appear in federal court in Boston at a later date.
As alleged in court documents, on July 3, 2016, Waible, a nursing assistant, worked the overnight shift from midnight to 8:00 a.m. at the Bedford VA’s nursing home unit. During the shift, Waible’s responsibilities included conducting hourly bed checks to check on patients’ breathing. Early that morning, a patient who suffered from several serious medical ailments was found unresponsive and not breathing. The patient was transferred by ambulance to an emergency room, where he was later pronounced dead. During the ensuing investigation, on two separate occasions, Waible falsely stated to federal agents that she had conducted the hourly checks on the patient during her shift.
The charge of making false statements provides for a sentence of no greater than five years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, made the announcement today. Assistant U.S. Attorneys Amanda P.M. Strachan, Chief of Lelling’s Health Care Fraud Unit, and William B. Brady, also of Lelling’s Health Care Fraud Unit, are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Protective Service Commander and North Carolina Man Indicted for Conspiracy and Scheme to Defraud the Social Security AdministrationRead the Press Release
SACRAMENTO, Calif. — A 16-count superseding indictment by a federal grand jury was unsealed today against Darron Dimitri Ross, 33, of Charlotte, North Carolina, and Joshua Bilal George, 36, of San Diego, including charges of conspiracy to defraud and commit crimes against the United States, theft of government property, aggravated identity theft, wire fraud, and money laundering, U.S. Attorney McGregor W. Scott announced.
This recent indictment supersedes a December 20, 2018, indictment that charged Ross and alleged co-conspirator Eric Lemoyne Willis, 43, of West Sacramento. On June 17, 2019, Willis pleaded guilty to charges in the original indictment, including conspiracy to defraud the United States, theft of government property, and aggravated identity theft.
According to court documents, Willis, Ross, and George conspired to steal public money from the Social Security Administration (SSA). Willis worked as an SSA Operation Supervisor in Sacramento and Lodi from at least 2015 until his departure in January 2018. In this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis sought out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then transferred this PII to his co-conspirators, including Ross who resided in North Carolina, and George who worked as a Federal Protective Service Officer in San Diego.
According to court documents, Ross’s and George’s role in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. The conspirators opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. During these calls, Ross and George convinced some of the SSA representatives that they were the identity-theft victims, and they caused the representatives to change the direct deposit account numbers to the fraudulent account numbers. The SSA then deposited the benefit payments into the fraudulent accounts until the fraud was detected. The conspirators were then free to withdraw the funds at ATMs and spend the money using debit cards.
SSA has identified at least 160 beneficiaries who were victims these crimes, and the total fraud loss suffered by SSA has exceeded $480,000.
This case was the product of an investigation by the Social Security Administration – Office of the Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security – Office of the Inspector General. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Federal agents arrested George this morning in San Diego, and he made his initial appearance in the Southern District of California. Willis is released on bond pending his sentencing, and Ross is released on bond pending trial.
If convicted of wire fraud, Ross and George face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of aggravated identity theft, they each face a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for theft of government property is 10 years in prison and a $250,000 fine. The maximum sentence for conspiracy is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Prisoner Who Tried to Hire a Hitman to Kill Two People Sentenced to 20 More Years in PrisonRead the Press Release
A man who was serving a fifteen-year federal prison sentence when he tried to hire a “hitman” to murder two people in Northeast Iowa was sentenced today to 20 years in federal prison.
Jason Harriman, age 45, formerly of Traer and Independence, Iowa, received the prison term after a January 29, 2019, jury verdict finding him guilty of two counts of murder-for-hire.
The evidence at trial showed that in 2011, Harriman was sentenced to serve fifteen years in federal prison for unlawfully possessing a gun and ammunition. While in federal prison in Arkansas, Harriman made multiple phone calls and sent multiple emails to an individual he thought was a hired killer, but was actually an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. After meeting with the “hitman” in person in the prison, Harriman signed a contract calling for the murders of two people who were living in Northeast Iowa. Harriman agreed to pay the “hitman” $21,000 and had already given the “hitman” a 1969 Dodge Charger as a down payment. During a later phone conversation with the undercover agent, Harriman asked the agent to photograph and record the murders, so that Harriman could watch the recordings after he got out of prison.
Harriman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Harriman was sentenced to 240 months’ imprisonment, which was ordered to run consecutively to his prior federal sentence. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Harriman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Anthony Morfitt and Kyndra Lundquist and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bureau of Prisons Special Investigative Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR_2033.
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Federal Jury Convicts Member of Memphis’ Peda Roll Mafia Street GangRead the Press Release
Memphis, TN – After an hour and a half of deliberations, a federal jury convicted John Shields, 33, a/k/a/ "John John," a/k/a/ "John Juan," with conspiracy to distribute more than a kilogram of heroin; conspiracy to distribute more than 500 grams of a mixture and substance of methamphetamine; possession with intent to distribute more than one kilogram of heroin; and conspiracy to commit money laundering. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
In June 2017, twenty-two members and associates of the Grape Street Crips/The Peda Roll Mafia were charged by a federal grand jury with multiple drug and money laundering offenses.
According to information presented in court during a week-long jury trial, Shields is a member of the Peda Roll Mafia, which is a subset of the Grape Street Crips. The evidence at trial showed that Shields received multiple kilograms of heroin and multiple pounds of methamphetamine from his California-based suppliers, which were then distributed in the Western District of Tennessee. Shields laundered proceeds of his drug sales through national banks such as Bank of America and Wells Fargo.
U.S. Attorney D. Michael Dunavant said, "Criminal enterprises and street gangs that distribute harmful and addictive drugs into our communities for profit can no longer operate with impunity. Thanks to the outstanding work of our law enforcement partners, we are targeting gangs to dismantle their drug trafficking organizations and financial structures. The quick and decisive verdict by the jury also shows that law-abiding citizens will not tolerate this dangerous criminality."
The investigation was the result of a cooperative, multi-agency investigative effort, which included the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Postal Inspection Service (USPIS), Drug Enforcement Agency (DEA), U.S. Marshals
Service, Memphis Police Department’s Organized Crime Unit, and the Shelby County Sheriff’s Department.
Sentencing is set for October 18, 2019, before U.S. District Court Judge Thomas L. Parker. Shields faces a mandatory minimum sentence of 10 years in federal prison.
Assistant U.S. Attorneys Kevin Whitmore and Mark Erskine are prosecuting this case on behalf of the government.
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Federal Home Loan Bank Execs Plead Guilty Mid-TrialRead the Press Release
Several days into their trial, two former Federal Home Loan Bank executives pleaded guilty to conspiring to lie to the government-sponsored financial institution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Terence Carlyle Smith, former FHLB - Dallas President, and Nancy B. Parker, former Chief Information Officer, both pleaded guilty to conspiracy to make false statements to a Federal Home Loan Bank.
Mr. Smith, 62, entered his plea before U.S. District Judge Jane J. Boyle on Friday morning, midway through the prosecution’s case; Ms. Parker, 66, made her plea on Tuesday morning, before trial recommenced. The jury was dismissed on what would have been the sixth day of trial.
“These defendants attempted to trick a Federal Home Loan Bank into footing the bill for their exorbitant personal travel,” said U.S. Attorney Nealy Cox. “We believe they were right to plead guilty, even at this late date, and are confident justice will be served at sentencing.”
“The actions of these defendants placed at risk the public’s trust in the Federal Home Loan Bank of Dallas. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed against the Government Sponsored Enterprises, including the 11 Federal Home Loan Banks,” said Catherine Huber, Special Agent in Charge of the FHFA-OIG’s Central Region Office. “We are proud to have partnered with the U.S. Attorney’s Office for the Northern District of Texas in this case.”
In plea papers, the pair admitted that from 2009 to 2013, they submitted dozens of bogus expense reports to FHLB, claiming they’d attended professional conferences they never visited -- prompting FHLB to foot the bill for what was actually personal travel to Florida, California, and Nevada. They also admitted to repeatedly falsely reporting their number of unused vacation hours.
Their pleas come on the heels of a pre-trial plea by former FHLB-Dallas Chief Financial Officer Michael Sims, who pleaded guilty to misprision of a felony, or concealing knowledge of the actual commission of a felony, on June 27.
According to the Indictment filed in 2017, the scheme cost FHLB more than $1.2 million -- $780,000 in travel expenses, including airfare, limousine rides, concerts, vineyard tours, luxury hotel rooms, and lavish meals for Mr. Smith, Ms. Parker, Mr. Sims and several colleagues, and $450,000 in unused vacation time reimbursements.
Mr. Smith and Ms. Parker each face up to five years in federal prison, and will both be required to pay restitution. In addition, as part of their plea agreements, both agreed to repay FHLB - Dallas for attorneys’ fees incurred by the bank and its insurance carrier; Mr. Smith will pay $4.2 million and Ms. Parker will pay just over $227,900.
Mr. Sims, meanwhile, faces three years in federal prison, and will also be required to pay restitution.
The Federal Housing Finance Agency Office of Inspector General led the investigation. Assistant U.S. Attorneys Errin Martin, Lindsey Beran, Tiffany Eggers, and Douglas Brasher prosecuted the case.
Elyria man who stabbed woman during carjacking sentenced to 10 years in federal prisonRead the Press Release
An Elyria man who stabbed a woman during a carjacking was sentenced to 10 years in federal prison.
Johnny G. Mack III, 39, previously pleaded guilty to carjacking.
Mack forced a woman out of her 2016 Nissan Altima while she was at a gas station on December 12, 2018. He pulled a knife and threatened to stab the driver as he pushed her into her car. Mack stabbed the victim, causing small puncture wounds to her legs, stomach and hands, according to court documents.
He was arrested two days after the incident.
This case was investigated by the FBI and Elyria Police Department. It was prosecuted by Assistant U.S. Attorneys Scott Zarzycki and John Hanley.
This case was part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated 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.
District Man Pleads Guilty to Unlawful Distribution of Cocaine BaseRead the Press Release
Devierre Cheppell, 28, of Washington, D.C., pled guilty today to the unlawful distribution of cocaine base, announced U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Steven A. Sund, Chief of the United States Capitol Police.
Cheppell, who is designated a career offender due to his prior drug-related convictions, pled guilty before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia to one count of unlawful distribution of cocaine base. Cheppell faces 75 months in prison followed by five years of supervised release and a fine up to $1,000,000 if a plea agreement is reached with the Government and accepted by the Court. As part of his plea, Cheppell accepted responsibility for possessing with intent to distribute 31.3 grams of cocaine base. Cheppell’s conviction will represent his third cocaine-related conviction. Judge Walton scheduled Cheppell’s sentencing for October 17, 2019.
According to the Government’s evidence, on October 1, 2018, members of the Metropolitan Police Department (MPD) First District Crime Suppression Team observed what appeared to be a hand-to-hand transaction between Cheppell and another individual. Cheppell handed the object to the man who then walked into a nearby alley near 35 E Street, N.W. Officers located the man in the alley and observed him in the process of smoking crack cocaine. Meanwhile, after the hand-to-hand transaction, Cheppell was observed riding his bicycle northbound into the 500 block of New Jersey Avenue, N.W. When asked to stop, Cheppell abandoned his bicycle and fled, running alongside the area of the Washington Court Hotel located at 525 New Jersey Avenue, N.W. He was apprehended and admitted to possessing cocaine inside of his undergarments. A search revealed the cocaine and 148 plastic zips containing a white rock-like substance, later determined to be 23.96 grams of cocaine base.
Cheppell was released on his personal recognizance under the supervision of pretrial services at presentment in D.C. Superior Court. Less than one month later, he was arrested again. On November 13, 2018, Cheppell was observed by United States Capitol Police officers driving a blue Infiniti sports utility vehicle in the area of G Street N.W. A traffic stop by the officers resulted in the recovery of 101 baggies containing a total of 7.34 grams of cocaine base, and $1,117.00 in U.S. currency from Cheppell.
In announcing the plea, U.S. Attorney Liu commended the assistance provided by our joint law enforcement partners. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Nurudeen Elias and Mervin A. Bourne, Jr. of the Violent Crime and Narcotics Trafficking Section.
Delaware man indicted on drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Durrion Joshua Morrison, of Wilmington, Delaware, was indicted by a federal grand jury today on cocaine charges, United States Attorney Bill Powell announced.
Johnson, also known as “Nephew,” age 30, is charged with two counts of “Distribution of Cocaine Base” and one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Base.” Johnson is accused of selling cocaine base, also known as “crack,” and possessing more than 28 grams of cocaine base in July 2016 in Berkeley County.
Johnson faces up to 20 years incarceration and a fine of up to $1,000,000 for each distribution count. He faces not less than five years and up to 40 years incarceration and a fine of up to $5,000,000 for the aiding and abetting count. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
DeBordieu Bookkeeper Sentenced to 18 Months in Federal PrisonRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Shirley Watson, age 43, of Georgetown, was sentenced in federal court for her role in a multi-year scheme to embezzle funds from her employer, two family-owned real estate businesses. United States District Court Judge David C. Norton of Charleston sentenced Watson, who has no prior criminal record, to 18 months in federal prison.
In January 2019, Watson pleaded guilty to a three-count Information, admitting to two counts of Bank Fraud and one count of Tax Evasion. She admitted that beginning in 2011 and continuing up through 2016, she used her position as a bookkeeper to divert hundreds of thousands of dollars in company funds to herself. She exploited her access to company accounts, writing checks to herself and forging her employer’s signature. She also admitted that she neither reported the income to the Internal Revenue Service nor paid any related taxes.
Upon her release from prison, Watson must pay restitution in the amount of $345,337.43 to the victims and $82,825 to the IRS. Watson will also serve a three-year term of court-ordered supervision.
The case was investigated by special agents with the Internal Revenue Service and the Federal Bureau of Investigation. Assistant United States Attorney Matt Austin of the Charleston office prosecuted the case.
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Correctional Dietary Officer and Two Others Plead Guilty to Federal Charges Related to Maryland Correctional Institute JessupRead the Press Release
Baltimore, Maryland – Patricia McDaniel, Correctional Dietary Officer, age 26, of Baltimore; Tyirisha Johnson, age 23, of Baltimore, each pleaded guilty today to a federal racketeering charge related to the Maryland Correctional Institute Jessup (MCIJ), and India Parker, age 33, of Parkville, Maryland, pleaded guilty to a drug distribution conspiracy, for participating in a scheme to smuggle contraband, including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
“Federal, state, and local officials will continue to work together to root out corrupt employees and others who undermine the administration of justice at our prisons,” said U.S. Attorney Robert K. Hur.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
According to their plea agreements, McDaniel, Johnson and Parker conspired with inmates and others to smuggle contraband into MCIJ, including narcotics, cell phones, unauthorized flash drives, and tobacco. McDaniel admitted that she abused her position of trust as a sworn officer of DPSCS by soliciting and receiving bribes in exchange for bringing contraband into MCIJ. Johnson and Parker admitted that as outside facilitators they managed the proceeds of illegal contraband sales for specific inmates, obtained contraband including, but not limited to, Suboxone strips, Percocet, MDMA, K2, and tobacco from additional co-conspirators, and provided the contraband and bribe payments to MCIJ employees and contractors to smuggle into the prison. Payments for contraband were sent by inmates through PayPal, Green Dot, and Western Union to Johnson and Parker. Inmates and facilitators, such as Johnson and Parker, paid COs, employees, and contractors for smuggled contraband in cash, money orders, Green Dot cards, and using PayPal and other electronic forms of payment.
As detailed in her plea agreement, in order to smuggle contraband into the facility, McDaniel often entered on weekends and secreted the packages on her person in order to avoid detection. Once inside the facility, McDaniel would deliver the packages to an inmate with whom she had a personal relationship, or to other MCIJ inmates. McDaniel was compensated in cash and by PayPal MyCash.
McDaniel, Johnson, and Parker were all overheard by law enforcement on a series of recorded calls arranging for contraband to be smuggled into MCIJ and arranging payment for the contraband and for bribes.
McDaniel, Johnson, and Parker each face a maximum sentence of 20 years in prison. U.S. District Judge Paula Xinis has scheduled sentencing for Johnson on September 20, 2019, and for Parker and McDaniel on October 2, 2019.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 80 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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Convicted Sex Offender Sentenced to 23 Years on Drug ChargesRead the Press Release
CHARLOTTE, N.C. B U.S. District Judge Max O. Cogburn, Jr. sentenced late yesterday Keith Antonio Barnett, 47, of Gastonia, N.C., to 23 years in prison and six years of supervised release on drug conspiracy and related drug charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; John Eisert, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte; Chief Robert C. Helton of the Gastonia Police Department; and Chief Joseph D. Ramey of the Gaston County Police Department.
According to filed court documents, the sentencing hearing, and evidence presented at Barnett’s trial, beginning from at least 2016, Barnett was part of a drug conspiracy operating in Gaston County, and was responsible for trafficking more than 280 grams of crack cocaine. The evidence at trial also established that, in October 2017, while executing a search warrant at a Gaston County residence that was being used as a drug house, law enforcement arrested Barnett, and recovered more than 120 grams of crack cocaine, over 40 grams of cocaine, more than six grams of heroin, and approximately $3,000 in cash.
A federal jury convicted Barnett in November 2018 of conspiracy to distribute and possession with intent to distribute crack cocaine; distribution and possession with intent to distribute crack cocaine; and possession with intent to distribute cocaine, crack cocaine, and heroin.
Barnett received an enhanced sentence because the Court found the defendant made credible threats of violence against witnesses, committed obstruction by testifying falsely at trial, and maintained a premises for distribution of controlled substance.
Barnett has a prior criminal history that includes two convictions for Possession of Crack Cocaine in 1991; Indecent Liberties with a Child in 1997; Criminal Domestic Violence of a High and Aggravated Nature in 2006; Failure to Register as a Sex Offender in 2010; and Failure to Register as a Sex Offender in 2013.
Barnett is currently in federal custody. All federal sentences are served without the possibility of parole.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), which 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 credited the FBI and HSI in Charlotte for their investigation of this case, and thanked the Gastonia Police Department and Gaston County Police Department for their invaluable assistance.
Assistant U.S. Attorneys Steven R. Kaufman and Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Convicted Felon Sentenced to 130 Months in Federal Prison for Distributing Fentanyl while Possessing a FirearmRead the Press Release
Memphis, TN - Zacharia Mitchell, 31, has been sentenced to 130 months in federal prison for conspiracy to possess with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, and for a being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 11, 2018, while conducting a drug transaction for an ounce of heroin in the parking lot of a Memphis area Kroger, Mitchell and two other individuals were arrested. Officers with the Memphis Police Department Organized Crime Unit were on the scene and witnessed the drug transaction. The defendant Mitchell handed a white powdery substance out of his window in exchange for cash.
When the defendants were arrested, Mitchell ran and was apprehended in the parking lot of the Kroger by law enforcement. Another individual ran into the Kroger store, throwing his gun under a fruit stand as he fled. All three individuals were eventually apprehended. Mitchell was found to possess a 9 mm handgun at the time of the drug transaction. The gun was found in the driver's side floorboard, where he had been sitting prior to his arrest. As a result of Mitchell’s prior felony convictions for Facilitation of Aggravated Robbery and Possession of a Controlled Substance with Intent to Deliver, as well as prior misdemeanor convictions for Domestic Violence, he was prohibited from possessing a firearm under federal law.
A laboratory test confirmed that the recovered drugs were an ounce of fentanyl rather than the heroin that was originally requested. One dosage unit of heroin is approximately one tenth of a
gram. Fentanyl is a synthetic opioid that is 30 to 50 times stronger than heroin. One ounce of fentanyl is enough to kill or cause serious bodily injury to hundreds of people.
On Monday, July 22, 2019, Senior U.S. District Court Judge Jon P. McCalla sentenced Mitchell to 130 months in federal prison followed by 3 years of supervised release.
U.S. Attorney D. Michael Dunavant said, "This offender presented a triple threat of serious bodily injury and death: a prior convicted felon in possession of a loaded firearm while distributing the most deadly and addictive substance on the streets. This sentence protects the community by incapacitating a repeat dangerous offender, and achieves justice by providing proper punishment according to law."
This case was investigated by the Memphis Police Department Organized Crime Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
This case was part of the West Tennessee Heroin Initiative, a collaboration of local and federal law enforcement that prosecutes opioid cases in West Tennessee.
Special Assistant United States Attorney Joseph Griffith prosecuted this case on behalf of the government.
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Convicted Felon Sent Back to Prison for Possessing Stolen Mail and A Stolen FirearmRead the Press Release
Immanuel Bradley received consecutive sentences because of his long criminal record
GRAND RAPIDS, MICHIGAN — Immanuel Bradley, 33, of Kalamazoo, Michigan was sentenced to a total of 78 months’ imprisonment for possession of stolen mail and being a felon in possession of a firearm, U.S. Attorney Andrew Birge announced today. The Hon. Paul Maloney, U.S. District Court Judge, sentenced Bradley above the guideline range due to his long history of recidivism, and ran the sentences for his two offenses consecutively in the interest of public safety.
In October, 2018, Kalamazoo police were dispatched to the location of a reported stolen car. They found Bradley with a backpack full of stolen mail, including checkbooks and other financial instruments. Police obtained a search warrant for Bradley’s residence, and found a garbage bag full of similar items, including stolen checks, driver’s licenses, passports, social security cards and credit cards. They also recovered a loaded .223 caliber magazine for an AR-15 style semiautomatic assault rifle.
In February 2019, Kalamazoo police responded to a shoplifting complaint at a D&W grocery store in the city. When they apprehended Bradley, he hid a loaded Smith & Wesson, .40 caliber semiautomatic pistol in a display basket by the checkout aisles. He fought with officers when they attempted to handcuff him, and escaped from the store with police in hot pursuit. Bradley forced his way into the occupied home of a nearby woman, who fled and alerted police. After a standoff with the Kalamazoo Department of Public Safety’s SWAT team, he was arrested without further incident. Police retrieved the pistol from the store and determined it had been stolen from a Portage residence in January 2019.
At sentencing, Bradley denied the pistol was stolen, claiming he bought it from the registered owner. After the owner and her fiancé refuted his claim in sworn testimony, Judge Maloney denied Bradley credit for acceptance of responsibility. The Judge noted Bradley’s long history of serious criminal convictions, including other breaking and entering and home invasion offenses. He also noted Bradley had repeatedly violated parole in the past, and committed his most recent crimes only a few months after getting off state supervision for his last conviction.
This case was investigated by the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Kalamazoo Department of Public Safety.
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Captain Pleads Guilty to Obstructing Coast Guard InvestigationRead the Press Release
GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that in federal court, before United States District Judge James C. Dever III, WILLIAM JUEL, 51, of Little River, South Carolina entered a guilty plea to obstructing a Coast Guard investigation at sea in violation of Title 18, United States Code, Sections 2232 and 2.
According to information in the public record, JUEL was the Captain of the commercial fishing vessel Island Runner. On November 30, 2017, while on routine partrol, the United States Coast Guard Cutter Cormorant approached the Island Runner in federal waters to conduct a boarding. As the Cormorant approached the Island Runner, Coast Guard servicemembers observed and videotaped JUEL and his mate throwing fish overboard. Further investigation revealed that JUEL illegally harvested the fish and was discarding the fish in order to prevent the Coast Guard from seizing the catch. The illegally harvested fish, which had also been gutted, included primarly Snowy Grouper as well as small amounts of Yellow Edge Grouper, Wreckfish and Amberjack. Five months before the boarding, on June 22, 2017, NOAA Fisheries imposed a commercial closure on the harvest of Snowy Grouper because the quota had been reached for the year. JUEL was aware of the closure at the time of the offense.
“This prosecution make clear that efforts to obstruct investigations and to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations – will be enforced vigorously,” said U.S. Attorney Robert J. Higdon, Jr.
“The crew of Coast Guard Cutter Cormorant partnered closely with the Coast Guard Investigative Service (CGIS) and the National Oceanic and Atmospheric Administration’s Office of Law Enforcement (NOAA LE) on this case.” said Captain John Reed, Commander of U.S. Coast Guard Sector Charleston. “This case highlights the Coast Guard’s continued commitment to, and the value of, at-sea enforcement of fisheries regulations, in order to preserve our vital marine resources. Our cutters work to ensure a level playing field for all, as the majority of fishermen abide by the regulations and expect that their competitors will as well.”
A sentencing hearing has been scheduled for the Court’s October 21, 2019, term of court. JUEL faces a maximum sentence of five years in prison, a $250,000 fine, and three years supervised release.
Investigation of this case was conducted by Coast Guard Investigative Service and the National Oceanic and Atmospheric Adminstration – Office of Law Enforcement. Assistant United States Attorney Banumathi Rangarajan is representing the government.
Brooklyn Man Who Submitted over 1,800 Fraudulent Immigration Applications Indicted on Twelve Counts of Making False Statements in Immigration DocumentsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on July 18, 2019, a federal grand jury returned a 12-count indictment against Arleigh Louison, 53, of Brooklyn, New York, charging him with running an immigration fraud scheme that included the filing of false statements with United States Citizenship and Immigration Services, including over 1,800 fraudulent applications for over 1,000 petitioners within the last four years. Diplomatic Security Service (DSS) agents arrested Louison today in Brooklyn, New York, and executed a federal search warrant at his office. Louison will appear later today in the United States District Court for the Eastern District of New York. Louison’s arraignment in the District of Vermont has not yet been scheduled.
The indictment charges that the false statements were made in connection with Form I-360 petitions for status adjustments under the Violence Against Women Act (VAWA). In short, the indictment charges that Louison presented or caused the presentment of adjustment of status petitions containing false statements to the United States Citizenship and Immigration Services Service Center in St. Albans, Vermont claiming that the petitioners were victims of abuse. The indictment also charges that these petitioners, who paid Louison for his services, did not discuss abuse with Louison, were not abused as described in the petitions, and did not authorize the statements made in the petitions Louison submitted to USCIS. The indictment also charges that Louison fabricated fee waiver petitions on behalf of these individuals without their knowledge.
Under VAWA, a person may be eligible to become a lawful permanent resident if they are the victim of battery or extreme cruelty committed by a U.S. citizen spouse or former spouse, a U.S. citizen parent, a U.S. citizen son or daughter, a lawful permanent resident (LPR) spouse or former spouse, or an LPR parent. An initial VAWA petition utilizing Form I-360 is often filed in conjunction with separate forms for work authorization (I-765 Employment Authorization Document “EAD card”) and permission to travel outside the United States (I-131 Application for a Travel Document). It is alleged that Louison submitted false information in the VAWA petitions so that the petitioners could secure EAD cards.
The charges against Louison are merely accusations and he is presumed innocent unless and until he is proven guilty.
United States Attorney Christina E. Nolan commended the investigative efforts of agents of the State Department’s Diplomatic Security Service. She stated: “The U.S. Attorney’s Office and its law enforcement partners prioritize prosecution of large-scale, complex fraud in all its forms. Profit-motivated immigration fraud is a serious offense, and we will treat it accordingly. We thank our strong partners at DSS for consistently working so diligently with our prosecutors to hold white collar criminals accountable.”
Assistant U.S. Attorney Nikolas Kerest represents the United States. An attorney for Louison has not yet noticed an appearance in the District of Vermont.