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4 September 2019
Federal Criminal Complaint Issued Against Saint Louis Corrections Officer for Drug Conspiracy and Illegal Firearm PossessionRead the Press Release
St. Louis, MO – A federal complaint was issued today charging Teneisha D. Moore, 26, with one count of conspiracy to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a) and 846, and one count of aiding and abetting the possession of one or more firearms in furtherance of that drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c) and 2.
According to court documents, a federal search warrant was executed at residence in the 4600 block of Farlin Avenue in the City of Saint Louis on September 4, 2019. The residence was occupied by Ms. Moore, a Corrections Officer with the Saint Louis City Department of Corrections currently assigned to the Medium Security Institution.
During the execution of the search warrant, law enforcement officials located and seized, among other things, approximately four ounces of a suspected fentanyl and heroin mixture; 57 grams of suspected marijuana; suspected ecstasy; a black, semi-automatic pistol; a rifle; a high-capacity, drum-style magazine; an additional approximately 15 grams of suspected heroin; and two balloons filled with a suspected mixture of heroin and fentanyl.
Charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This case is being investigated by the Federal Bureau of Investigation; the Saint Louis Metropolitan Police Department; and Drug Enforcement Administration.
Elyria man sentenced to 14 years in prison for drug trafficking as part of Operation Synthetic Opioid SurgeRead the Press Release
An Elyria man was sentenced to 14 years in prison for drug trafficking.
Pierre Alston, 39, was sentenced to 169 months in prison. He previously pleaded guilty to two counts of distribution of crack cocaine, one count of distribution of cocaine, heroin and fentanyl, one count of possession with intent to distribute heroin and fentanyl, and one count of distribution of heroin and fentanyl.
Alston sold various mixtures of drugs between July and October 2018, according to court documents.
This case is one of dozens prosecuted as part of Operation Synthetic Opioid Surge (SOS), in in which any cases involving heroin, fentanyl or any synthetic opioid are prosecuted in federal court. Lorain County is one of 10 communities around the nation selected as a pilot for Operation SOS. The program demonstrates the Justice Department’s continued to commitment to working with local partners to make our community safer.
This case was investigated by the Elyria Police Department and FBI, with assistance from the Lorain County Prosecutor's Office, and was prosecuted by Assistant U.S. Attorneys Robert Corts and Vasile Katsaros.
Drug Maker Mallinckrodt Agrees to Pay over $15 Million to Resolve Alleged False Claims Act Liability for “Wining and Dining” DoctorsRead the Press Release
Pharmaceutical company Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD Inc. and previously Questcor Pharmaceuticals Inc. "Questcor"), has agreed to pay $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors, in the form of lavish dinners and entertainment, to induce prescriptions of the company’s drug, H.P. Acthar Gel (Acthar) from 2009 through 2013.
The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — with the intent to induce a health care provider to prescribe a drug reimbursed by a federal health care program, including Medicare. This prohibition extends to such practices as “wining and dining” doctors to induce them to write Medicare prescriptions of a company’s products.
The government alleged that, from 2009 to 2013, twelve Questcor sales representatives marketing Acthar provided illegal remuneration to health care providers in the form of lavish meals and entertainment expenses. The company paid this remuneration, the government alleges, with the intent to induce Acthar Medicare referrals from those health care providers, resulting in a violation of the Anti-Kickback Statute and the submission of false claims to Medicare.
“The Department of Justice will hold companies accountable for the payment of illegal kickbacks in any form,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Improper inducements have no place in our federal healthcare system, which depends on physicians making decisions based on the healthcare needs of their patients and not on or influenced by personal financial considerations.”
“When companies buy off doctors, patients suffer. My Office is committed to rooting out this type of behavior and the Anti-Kickback Statute is a critical tool in that fight,” said U.S. Attorney McSwain. “We will continue to protect the integrity of our healthcare system by holding drug companies accountable for their conduct.”
“Paying kickbacks to win business, as contended in this case, cheats taxpayers and the patients who rely on government health care programs for essential care,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to hold accountable entities paying such kickbacks.”
The allegations that are the subject of yesterday’s settlement were originally alleged in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases. The whistleblowers will receive approximately $2.926 million of the settlement. The government is continuing to pursue claims in these two matters alleging that Mallinckrodt violated the False Claims Act by using a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar. These claims are not being resolved by the settlement.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the U.S. Department of Health and Human Services Office of Inspector General. The two lawsuits are captioned United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.) and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.).
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Drug Maker Mallinckrodt Agrees to Pay $15.4 Million to Resolve False Claims Act Allegations for "Wining and Dining" DoctorsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that pharmaceutical company Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD, Inc. and previously Questcor Pharmaceuticals, Inc. (“Questcor”)), has agreed to pay $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors from 2009 through 2013 in the form of lavish dinners and entertainment, to induce prescriptions of the company’s drug, H.P. Acthar Gel (“Acthar”) for the treatment of complications from multiple sclerosis.
The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—with the intent to induce a health care provider to prescribe a drug reimbursed by Medicare. This prohibition extends to such practices as “wining and dining” doctors to induce them to write Medicare prescriptions of a company’s products.
The government alleges that, from 2009 to 2013, twelve Questcor sales representatives marketing Acthar provided illegal remuneration to health care providers in the form of lavish meals and entertainment expenses. The company paid this remuneration, the government alleges, with the intent to induce Acthar Medicare referrals from those health care providers, resulting in a violation of the Anti-Kickback Statute and the submission of false claims to Medicare.
“Federal law protects patients from medical providers who write prescriptions so they can enrich themselves and from drug companies who do not play by the rules in their marketing and promotional efforts,” said U.S. Attorney McSwain. “Kickback schemes are a form of illegal pay-to-play business practices that have no place in our health care system; they interfere with physician-patient relationships and drive up the cost of health care.”
“The Department of Justice will hold companies accountable for the payment of illegal kickbacks in any form,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Improper inducements have no place in our federal healthcare system, which depends on physicians making decisions based on the healthcare needs of their patients and not on or influenced by personal financial considerations.”
“Paying kickbacks to win business, as contended in this case, cheats taxpayers and the patients who rely on government health care programs for essential care,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to hold accountable entities paying such kickbacks.”
The allegations relevant to this settlement were originally alleged in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases, which are captioned United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.), and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The government’s pursuit of these matters illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800 HHS TIPS (800-447-8477). The whistleblowers will receive approximately $2.926 million of the settlement.
This matter is being handled by the Civil Division of the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Department of Justice’s Commercial Litigation Branch, with assistance from the U.S. Department of Health and Human Services’ Office of Inspector General, the Defense Criminal Investigative Service, the Federal Bureau of Investigation and the Office of Personnel Management. For the United States Attorney’s Office, the matter is being handled by Assistant United States Attorney Colin Cherico and Auditor George Niedzwicki.
The claims resolved by settlement are allegations only and there has been no determination of liability.
Drug Dealer Pleads Guilty to Gun ChargesRead the Press Release
NORFOLK, Va. – A Franklin man pleaded guilty today to possessing a firearm in furtherance of a drug-trafficking crime and being a drug user in possession of a firearm.
According to information before the court, Edward Andre Leonard, Jr., 30, is an armed, drug-dealing Franklin gang member. His brother’s gang-related murder in December 2018 started a war between the local Bloods and Crips sets. Leonard participated in at least two retaliatory shootings of local Crips members, and law enforcement recovered his spent shell casings from one of the shooting scenes. While police were executing a warrant for his residence based on the shooting investigation, they recovered several baggies of cocaine and marijuana that were packaged for distribution, a handgun, thousands of rounds of rifle ammunition, spent shell casings tied to one of the retaliatory shootings, and a bullet-proof vest.
Leonard faces a mandatory minimum of five years and a maximum of life in prison when sentenced on December 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Robert Porti, Deputy Chief of the City of Franklin Police, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney William B. Jackson is 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. 2:19-cr-121.
Doddridge County man admits to sex offender registry violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tyler Patrick Pietschmann, of Greenwood, West Virginia, has admitted to failing to register as a sex offender, United States Attorney Bill Powell announced.
Pietschmann, age 21, pled guilty to one count of “Failure to Update Sex Offender Registration.” Pietschmann, a person required to register as a sex offender, admitted to traveling from Pennsylvania to West Virginia without updating his sex offender registration from December 2018 to February 2019.
Pietschamnn faces up to 10 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.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The United States Marshal Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Cumberland County Man Charged with Conspiracy to Defraud 30 Victims in Romance Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was arrested today on charges that he allegedly defrauded more than 30 victims into wiring money to him and his conspirators after he and his conspirators met and wooed the victims on online dating sites, U.S. Attorney Craig Carpenito announced.
Rubbin Sarpong, 35, of Millville, New Jersey, is charged by complaint with one count of conspiracy to commit wire fraud. He is scheduled to make his initial court appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case and statements made in court:
Between January 2016 and Sept. 3, 2019, Sarpong and his conspirators, several of whom reside in Ghana, allegedly participated in an online romance scheme, defrauding victims in New Jersey and elsewhere. Sarpong and the conspirators set up dating profiles on various dating websites, using fictitious or stolen identities and posing as United States military personnel who were stationed overseas. They contacted victims through the dating websites and then pretended to strike up a romantic relationship with them. After establishing virtual romantic relationships with victims on the online dating platforms and via email, the conspirators asked them for money, often for the purported purpose of paying to ship gold bars to the United States. Although the stories varied, most often Sarpong and the conspirators claimed to be military personnel stationed in Syria who received, recovered, or were awarded gold bars. The conspirators told many victims that their money would be returned once the gold bars were received in the United States.
Sarpong and the conspirators used myriad email accounts and Voice Over Internet Protocol phone numbers to communicate with victims and instruct them on where to wire money, including recipient names, addresses, financial institutions, and account numbers. Victims wired money to bank accounts held by Sarpong and others at financial institutions in the United States. Occasionally, victims also mailed personal checks and/or cashier’s checks to the conspirators and also transferred money to the conspirators via money transfer services, such as Western Union and MoneyGram. The funds were not used for the purposes claimed by the conspirators – that is, to transport non-existent gold bars to the United States – but were instead withdrawn in cash, wired to other domestic bank accounts, and wired to other conspirators in Ghana.
Federal law enforcement agents have identified more than 30 victims, with a total loss amount exceeding $2.1 million. Sarpong allegedly personally received $823,386 in victim funds into bank accounts that he owned or controlled. Sarpong posted photographs of himself on social media posing with large amounts of cash, high-end cars and expensive jewelry.The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Lori M. Koch Esq., Assistant Federal Public Defender, Camden
Collinwood Tax Preparer Charged with Preparing False Tax ReturnsRead the Press Release
NASHVILLE, Tenn. – September 4, 2019 – Steve Lewis Newell, 72, of Collinwood, Tennessee, was charged today with three counts of preparing false tax returns, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to a criminal information filed today, Newell owned and controlled Tax Masters and Accounting in Collinwood, Tennessee, and assisted in the preparation of individual tax returns on behalf of his clients. Between 2014 and 2018, Newell prepared and filed more than 7,700 federal income tax returns, several of which contained inflated or fictitious deductions in Schedule A, including state and local taxes, charitable contributions, and employee business expenses. Newell also falsified other items on his clients’ tax returns, such as the filing status of the taxpayer. Each of these fraudulent misrepresentations served to lower the tax liability for his clients.
The scheme resulted in clients obtaining refunds, which they were not entitled to and caused a tax loss to the IRS of at least $230,000.
If convicted, Newell faces up to three years in prison and a $250,000 fine on each count.
This case was investigated by the IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Kathryn Booth.
The charges are merely an accusation and are not evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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City of Atlanta Director of the Office of Contract Compliance pleads guilty to wire and tax fraudRead the Press Release
ATLANTA – Larry Scott has pleaded guilty to wire fraud for failing to disclose to the City of Atlanta that while he served as its Director of Contract Compliance, he also served as the business manager for a consulting firm seeking contracts in the Atlanta-metropolitan area. Scott also failed to report on his taxes the majority of the income earned from the consulting firm.
“Larry Scott betrayed the citizens of Atlanta by failing to disclose that when he served in an executive level position with the City of Atlanta, he was simultaneously working for a consulting firm for businesses who sought contracts in metro-Atlanta,” said U.S. Attorney Byung J. “BJay” Pak. “Scott’s divided loyalty undermined the integrity of the office he served at the City of Atlanta.”
“Deceitful and self-indulgent people have no place in public office at any level of government,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Today's plea doesn't mean our work is done, the FBI and our partners remain committed to ending public corruption in Atlanta and the Georgia community.”
“Public officials, whether elected or appointed, should expect to be held to a higher standard of trust in the eyes of the public. That trust is broken when these officials engage in malfeasance or commit crimes. Failure to disclose income and file a correct income tax return is a crime! No public official gets a free pass to ignore the tax laws, and IRS-CI works to ensure that everyone pays their fair share,” said Thomas J. Holloman, III, Atlanta Field Office Special Agent in Charge IRS-Criminal Investigations.
According to U.S. Attorney Pak, the charges and other information presented in court: the City of Atlanta - Mayor’s Office of Contract Compliance “serves as a liaison, linking Small, Minority, Female and Disadvantaged Businesses with City of Atlanta related business opportunities and encourages equal opportunity for all businesses and individuals in the Atlanta workplace,” and has a stated mission “to mitigate the effects of past and present discrimination against women and minority businesses … [and] to promote full and equal business opportunity for all persons doing business with the City of Atlanta.”
From 2002 to 2019, Scott held several positions with the City of Atlanta, including, serving as the: (a) Senior Contract Compliance Manager in the Office of Contract Compliance; (b) Director of Procurement in the Department of Watershed Management, and (c) the Director of the Office of Contract Compliance. In those positions, Scott earned between $57,000 and $98,000 per year. In total, from 2012 to 2017, Scott earned approximately $530,000 as an employee with the City of Atlanta.
On February 23, 2011, Scott incorporated Cornerstone U.S. Management Group, LLC (“Cornerstone”) with the Georgia Secretary of State as a for-profit corporation.
Cornerstone is a consulting firm for businesses seeking contracts in the Atlanta-metropolitan area and elsewhere. In its Articles of Organization, Cornerstone listed Scott as its organizer and registered agent. From 2012 until November 2017, Scott served as Cornerstone’s business manager. In that role and during that six-year period, Cornerstone paid Scott between approximately $1,000 and $5,000 per month. In total, from 2012 to 2017, Scott earned approximately $220,000 as Cornerstone’s business manager.
According to the City of Atlanta’s Code of Ethics, certain City of Atlanta officials and employees must disclose all “positions of employment held by the official or employee in any business . . . for all or any portion of the year, including a description of the type of business and the existence and nature of any business done by the employer entity with the city.” The City of Atlanta’s Code of Ethics further requires that these officials and employees disclose “[e]ach and every source of income from any business received by such official or employee in excess of $5,000 derived from any single source in the preceding calendar year.”
As the City of Atlanta’s Senior Contract Compliance Manager, Director of Procurement, and Director of Contract Compliance, the City of Atlanta required Scott to complete annually a Financial Disclosure Statement listing any outside employment and sources of income of more than $5,000 per year for calendar years 2012 to 2017.
From 2012 to 2017, Scott electronically filed six (6) false Financial Disclosure Statements, each executed under penalty of perjury. On each Financial Disclosure Statement, Scott knowingly failed to disclose that he had been employed by Cornerstone and that he had received more than $5,000 in annual income from Cornerstone.
From 2012 to 2017, Scott earned approximately $220,000 from Cornerstone while serving as a full-time management or executive level employee with the City of Atlanta. Scott never disclosed to the City of Atlanta his employment with and income from Cornerstone. Scott knew that if he had disclosed his income from Cornerstone on his annual Financial Disclosure Statements, the City of Atlanta could have terminated Scott.
From 2012 to 2017, Scott also filed six (6) false and fraudulent federal income tax returns – in that Scott failed to report the majority of the income that he earned from Cornerstone on his tax returns. For example, in 2015, Scott earned approximately $156,036 in income – (a) $99,136 as the City of Atlanta’s Director of Contract Compliance; and (b) $56,900 as Cornerstone’s business manager. Yet, on his 2015 federal income tax return, Scott falsely listed his “total income” as only $101,630.
Based on his conduct, Larry Scott, 54, of Atlanta, Georgia, was charged with, and pleaded guilty to, one count each of wire and tax fraud.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Stephen H. McClain, and Sekret Sneed are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cincinnati Man Sentenced to Prison for Hate CrimesRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in federal court this morning for violating the Fair Housing Act through force, by willfully intimidating two homeowners based on their race, color and familial status.
Samuel Whitt, 43, was sentenced in U.S. District Court to 54 months in prison for criminal interference with the right to fair housing.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Cincinnati Police Chief Eliot K. Isaac announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
Whitt was indicted in May 2017 and pleaded guilty in January 2019 to criminal interference with the right to fair housing, in part by the use or attempted use of fire or an explosive.
Whitt destroyed a rental home owned by an inter-racial couple in Price Hill in November 2016. According to court documents, Whitt broke into the rental home and spray-painted the walls with messages including “die n****r” and “white power,” as well as images of swastikas. Whitt also poured quick-drying concrete into the bathroom drains and toilet; stabbed a knife into the floor; removed plumbing traps from the sinks and left the water running; turned on the gas stove in the upstairs kitchen, poured paint into the burners, and attempted to remove the smoke detector above the stove.
“I want this conviction and sentence to send a message to racists in the Southern District of Ohio,” said U.S. Attorney Glassman. “It’s your right to wallow in noxious beliefs to your heart’s content, but act on those thoughts with violence and you will go to federal prison for a long time. Together with our law enforcement partners at all levels, this office will enforce the federal laws against hate crimes vigorously and to their fullest extent.”
As part of his sentence, the Court also ordered that Whitt pay more than $66,000 in restitution and serve three years of supervised release following his prison sentence, including one year of home confinement.
U.S. Attorney Glassman commended the cooperative investigation by the FBI and Cincinnati Police, as well as Assistant United States Attorneys Megan Gaffney and Kyle Healey, who are representing the United States in this case.
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Cheektowaga Surgeon Pleads Guilty to Drug Charge and Lying to the DEARead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Anthony Leone, 55, of Clarence, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to unlawful possession of a controlled substance and making material false statements. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on September 8, 2016, the defendant, who was a licensed spine and general orthopedic surgeon and Drug Enforcement Administration registrant, completed a controlled substance form for Henry Schein, a commercial distributor of controlled substances. One of the questions on the form asked Leone if he uses “any controlled substances ordered to treat family members,” to which he responded “no.” That statement was false. Leone in fact ordered zolpidem for treatment of an identified family member.
Further, the form asked the defendant whether he uses any of the controlled drug items he orders for his own personal use, to which he responded “no.” That statement was also false. Leone ordered Adderall XR, tramadol, and clonazepam to use himself.
Finally, the form asked the defendant whether his office performs surgery or any other in office procedures that require the use of controlled substances, to which he responded with the following: “Procedures performed on an outpatient basis: Epidural steroid injections and facet injections, outpatient procedure: lumbar and [illegible word] spine reconstructive surgery.” That statement was also false in that Leone did not administer or dispense controlled substances in his office, but instead, wrote patients prescriptions for fulfillment at a pharmacy.
Thereafter, the defendant ordered and received bulk quantities of Adderall XR, hydrocodone, both Schedule II controlled substances, and clonazepam, tramadol, and zolpidem, all Schedule IV controlled substances from Henry Schein.
On April 24, 2018, the Drug Enforcement Administration conducted an administrative search at Leone’s offices located at 934 Cleveland Drive in Cheektowaga, NY. During that search, the defendant told DEA agents that he ordered quantities of hydrocodone, which he dispensed to patients. In truth and fact, Leone was transporting the hydrocodone from his medical office to his residence on Cobblestone Drive in Clarence, where he stored them for his own personal use.
“As with many of those whose judgment is impaired as a result of their need to feed their addiction, the defendant lied to get what he wanted,” stated U.S. Attorney Kennedy. “Sadly, this case serves as another example of the debilitating and destructive power of addiction, whether its prescription pills or other dangerous, illegal opiates. Simply put – addiction knows no boundaries. That is why it is imperative that we in law enforcement continue vigorously to enforce the law while also continuing to work with our partners in treatment and prevention to battle this epidemic.”
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for December 16, 2019, before Judge Wolford.
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Champaign Man Indicted on Charge of Attempted Enticement of a MinorRead the Press Release
Springfield, Ill. – A federal grand jury in Springfield today returned an indictment that charges Thomas L. Bishop, 60, of the 1600 block of West Bradley Ave., in Champaign, Ill. with attempted enticement of a minor. Bishop is scheduled to appear for arraignment tomorrow, Sept. 5, 2019, in Urbana, before U.S. Magistrate Judge Eric I. Long.
Bishop was arrested on Aug. 23, 2019, and charged by criminal complaint. According to the affidavit filed in support of the complaint, on Aug. 20, Bishop allegedly initiated a text message conversation with an online covert profile of a law enforcement officer on a popular online dating / chatting application. Following the initial contact, the defendant and the undercover officer engaged in numerous sexually explicit text message conversations, including conversations in which the defendant allegedly requested that the minor send sexually explicit photos of himself to the defendant. The affidavit alleges that on Aug. 23, the defendant believed he was meeting a 15-year-old boy at a pre-determined location in Champaign to take the minor to his residence for a sexual encounter. Instead, law enforcement officers arrested Bishop.
The indictment returned today charges Bishop with the offense of attempted enticement of a minor, from Aug. 20 to Aug. 23, 2019, using the internet and a cellular telephone, both means of interstate commerce, to knowingly entice a minor under the age of 18 to engage in sexual activity for which any person can be charged with a criminal offense. If convicted, the statutory penalty for the offense is 10 years to life in prison plus a fine of up to $250,000.
Following his arrest, Bishop made his initial court appearance on Aug. 26, 2019, before U.S. Magistrate Judge Long, who ordered that Bishop be detained. Bishop has remained in the custody of the U.S. Marshals Service since his arrest.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson, The charge is the result of investigation by the Federal Bureau of Investigation with the assistance of the Champaign Police Department’s Street Crimes Unit.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse launched in May 2006 by the Department of Justice. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Man Guilty of Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Crispin Fernandez, age 26, a California resident, pleaded guilty on August 30, 2019, to participating in a conspiracy that transported more than a kilogram of heroin from California to Carbon County, Pennsylvania, before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, Fernandez admitted to conspiring with others to send more than one kilogram of heroin via couriers between July 2018 and the present. A kilogram of heroin is equivalent to approximately 40,000 retail bags of heroin.
Fernandez was charged in a superseding information with conspiracy to distribute and possess with intent to distribute in excess of one kilogram of heroin. Agents seized close to three kilograms during the investigation in Pennsylvania and Illinois.
Judge Mannion ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
The charge against Fernandez resulted from an investigation by the Drug Enforcement Administration (DEA), the Pennsylvania State Police, and the Illinois State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is also a part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is life imprisonment. The charge also carries a mandatory minimum penalty of 15 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Buffalo Woman Pleads Guilty to Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nina Rosario, 21, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that beginning in April of 2018 and continuing until April 28, 2018, Rosario conspired with others to sell heroin, a Schedule I controlled substance. On April 28, 2018, the defendant spoke with her co-conspirator via telephone regarding their drug distribution conspiracy. In particular, Rosario confirmed that she met with a source of supply and received approximately 20 grams of heroin, all of which the defendant and her co-conspirator intended to distribute in Western New York.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled before Judge Geraci for December 12, 2019, at 11:30 a.m.
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Bergen County Man Admits to Fraudulent Short Sale Scheme to Defraud Mortgage Lenders and Tax EvasionRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted his role in a scheme with his son to use straw buyers and short sales on properties to defraud mortgage lenders out of hundreds of thousands of dollars and to avoid paying taxes on the proceeds of the scheme, U.S. Attorney Craig Carpenito announced.
George Bussanich Sr., 60, of Park Ridge, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to a superseding information charging him with one count of bank fraud conspiracy and one count of tax evasion. His son, George Bussanich Jr., 39, of Upper Saddle River, New Jersey, pleaded guilty to tax evasion before Judge Cecchi in October 2017 and is scheduled to be sentenced Sept. 25, 2019.
According to documents filed in this case and statements made in court:
Between 2009 and 2012, Bussanich Sr. and Bussanich Jr. conspired to defraud mortgage lenders through the sham short sales of two properties located on Jefferson Avenue in Emerson, New Jersey, and Lillian Street in Park Ridge.
Bussanich Sr. controlled various purported medical clinics and surgical centers in New Jersey. He recruited his business partner and an employee from a sleep clinic in Cliffside Park, New Jersey, to pose as legitimate, unrelated buyers of the properties. In order to conceal his involvement, Bussanich Sr. used a business entity he controlled to fund each short sale transaction and the subsequent repurchase of those properties. Bussanich Jr., the owner of record of both properties, negotiated the short sales with the lenders using materially false information that misrepresented the circumstances of the short sales, the relationships of the parties, and the source of funding for the transactions.
Approximately two years after the fraudulent short sales, Bussanich Sr. bought the properties back from the straw purchasers using money that he owed his business partner from an earlier venture.
Bussanich Sr. also failed to disclose on his tax returns hundreds of thousands of dollars in income that he received from his purported medical clinics and surgical centers. He used those funds to purchase high-end luxury vehicles worth a total of over $300,000, including two Land Rover sport utility vehicles and a Ferrari Spyder. He also used those funds to purchase official bank checks to fund the fraudulent short sales.
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum potential fine of $1 million. The tax evasion charge carries a maximum potential penalty of five years in prison and a maximum potential $250,000 fine. Sentencing is scheduled for Jan. 23, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the Office’s Economic Crimes Unit, and Nicholas P. Grippo, Attorney in Charge of the Trenton Office.
Bangladeshi National Arrested in Texas to Face Charges for a Conspiracy to Bring Aliens into the United StatesRead the Press Release
A Bangladeshi national residing in Tapachula, Mexico, was arrested Aug. 31 on arrival at George Bush Intercontinental Airport in Houston, Texas, to face a superseding criminal indictment for his role in a scheme to smuggle aliens into the United States.
The unsealed superseding indictment alleges that from March 2017 to August 2018, Milon Miah conspired to bring and brought 15 Bangladeshi nationals to the United States at the Texas border in exchange for payment. Miah allegedly maintained a hotel in Tapachula, Mexico, where he housed and fed aliens and provided them with plane tickets to locations in northern Mexico where the aliens were met by other smugglers who transported them to the U.S. border. One of Miah’s co‑conspirators in the smuggling operation, Moktar Hossain, pleaded guilty last week to conspiracy to bring an alien to the United States as well as several related smuggling charges.
“Human smuggling rings endanger the security of the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This arrest sends a strong message that the Department is dedicated to holding accountable those who conspire to subvert our nation’s immigration laws for their own profit.”
“Securing our borders is a national security and law enforcement priority,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “Often, disparate organizations cooperate in an effort to exploit our border. The great investigative work by multiple agencies stopped this group and is able to bring foreign based defendants to justice.”
“The arrest of Milon Miah represents a significant joint effort in ensuring national security and public safety,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI remains steadfast in vigorously investigating and dismantling transnational criminal networks that pose a threat to our nation. We will continue to work with our law enforcement partners to maintain the integrity of our border and ensure the safety of our communities.”
Miah was presented yesterday before U.S. Magistrate Judge Dena H. Palmero in the Southern District of Texas for his initial appearance. At the hearing, Judge Palmero ordered that Miah be held pending transfer to Laredo for further criminal proceedings.
HSI Laredo is conducting the investigation with assistance from HSI Mexico City, HSI Monterrey, HSI Houston, HSI Calexico, Customs and Border Protection, Border Patrol and the U.S. Marshals Service. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
The charges contained in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bangladeshi National Arrested in Texas to Face Charges for Conspiracy to Bring Aliens into the U.S.Read the Press Release
HOUSTON - A Bangladeshi national residing in Tapachula, Mexico, was arrested Aug. 31 on arrival at George Bush Intercontinental Airport in Houston to face a superseding criminal indictment for his role in a scheme to smuggle aliens into the United States.
The unsealed superseding indictment alleges that from March 2017 to August 2018, Milon Miah, 39, conspired to bring and brought 15 Bangladeshi nationals to the United States at the Texas border in exchange for payment. Miah allegedly maintained a hotel in Tapachula, Mexico, where he housed and fed aliens and provided them with plane tickets to locations in northern Mexico where the aliens were met by other smugglers who transported them to the U.S. border. One of Miah’s co-conspirators in the smuggling operation, Moktar Hossain, pleaded guilty last week to conspiracy to bring an alien to the United States as well as several related smuggling charges.
“Human smuggling rings endanger the security of the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This arrest sends a strong message that the Department is dedicated to holding accountable those who conspire to subvert our nation’s immigration laws for their own profit.”
“Securing our borders is a national security and law enforcement priority,” said U.S. Attorney Ryan K. Patrick. “Often, disparate organizations cooperate in an effort to exploit our border. The great investigative work by multiple agencies stopped this group and is able bring foreign based defendants to justice.”
“The arrest of Milon Miah represents a significant joint effort in ensuring national security and public safety,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI remains steadfast in vigorously investigating and dismantling transnational criminal networks that pose a threat to our nation. We will continue to work with our law enforcement partners to maintain the integrity of our border and ensure the safety of our communities.”
Miah was presented yesterday before U.S. Magistrate Judge Dena H. Palmero in the Southern District of Texas for his initial appearance. At the hearing, Judge Palmero ordered Miah be held pending transfer to Laredo for further criminal proceedings.
HSI Laredo is conducting the investigation with assistance from HSI Mexico City, HSI Monterrey, HSI Houston, HSI Calexico, Customs and Border Protection, Border Patrol and the U.S. Marshals Service. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Austin Man Sentenced to Federal Prison for Sexual Exploitation of a MinorRead the Press Release
In Austin today, U.S. District Judge Robert Pitman sentenced 25–year–old Olin Dee Cubit, Jr., to 15 years in federal prison followed by ten years of supervised release for sexually exploiting a minor, announced U.S. Attorney John F. Bash and Austin Police Chief Brian Manley.
On April 2, 2019, Cubit pleaded guilty to one count of sex trafficking of a minor and one count of sexual exploitation of a minor for producing videos of a minor engaged in sexually explicit conduct. By pleading guilty, Cubit admitted that between January 15, 2018, and February 15, 2018, he and his co-defendant , 23-year-old Kaylan Nichole Hill of Austin, caused a minor to engage in repeated sexually explicit activity for Cubit’s own financial gain.
On July 26, 2019, Judge Pitman sentenced Hill to five years in federal prison followed by five years of supervised release for sex trafficking a minor and possession of child pornography.
“There is far too much child sexual abuse in our country. I am proud of the many successful prosecutions that our office has handled, such as this one. But I fear that as a society we are not taking this problem seriously enough,” stated U.S. Attorney Bash.
The Austin Police Department’s Human Trafficking Unit investigated this case. Assistant U.S. Attorney Grant Sparks prosecuted this case on behalf of the Government.
“I am proud of all the work done by the Austin Police Department’s Human Trafficking Unit,” said Chief Manley. The unit is grateful to the U.S. Attorney’s office for their efforts in this matter. A dangerous criminal has been removed from the community of Austin, and justice has been sought for the survivor of this heinous crime.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Atlantic County Man Admits Personal Income Tax EvasionRead the Press Release
CAMDEN, N.J. - An Atlantic County, New Jersey, man today admitted evading payment of income taxes on money he embezzled from his business, U.S. Attorney Craig Carpentino announced.
Barry Markman, 62, of Margate, New Jersey, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of evasion of income tax.
According to documents filed in this case and statements made in court:
Markman was one of the owners of a company that sold and installed shutters, shades and blinds to retail customers. The company also sold shutters, shades and blinds to wholesale customers using various other trade names. Markman admitted that between 2012 and 2016, he took checks written by the company’s customers and deposited those funds into his personal bank account. He later used those funds to gamble.
For 2012 through 2016, Markman substantially underreported his income by initially failing to include on his income tax returns $618,002 he received directly from the company’s customers. Markman admitted that he owed to the United States on this income he embezzled from the company an additional tax of $170,704.
The charge to which Markman pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 6, 2019.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Robert Williams Esq., Haddonfield, New Jersey
Ansonia Man Involved in Marijuana Trafficking Ring Sentenced to 55 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SCOTT BODNAR, also known as “Pep,” 40, of Ansonia, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 55 months of imprisonment, followed by three years of supervised release, for his involvement in a large-scale marijuana trafficking conspiracy.
According to court documents and statements made in court, in 2016, the Federal Aviation Administration began investigating a Piper single-engine aircraft, owned by Donald Burns of Milford, that was making regular flights between Stratford, Connecticut, and northern California via the southwest United States. On June 28, 2017, Burns flew the aircraft from northern California to Lubbock, Texas. The next day, Burns flew the aircraft from Texas to Arkansas, and then to West Virginia and Connecticut, where he landed in the evening at Sikorsky Airport in Stratford. After it landed, a law enforcement search of the plane revealed approximately 400 pounds of marijuana in vacuum-sealed packages, and Burns was arrested. Investigators determined that the marijuana was intended for Robert Capelli, Scott Bodnar, Terrell Givens and others to distribute in Connecticut. Capelli and Bodnar were arrested later that day.
The investigation revealed that, for more than two years, Capelli and his associates earned millions of dollars by trafficking nearly two tons of marijuana from California to Connecticut. Members of the conspiracy also laundered more than $6 million to purchase marijuana in California, maintain properties for distribution in Connecticut, pay Burns to transport the marijuana, and for other expenses related to the conspiracy.
On May 2, 2019, Bodnar pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana, and one count of conspiracy to launder monetary instruments.
Judge Arterton also ordered Bodnar to forfeit his 2012 Toyota Camry, which was seized during the investigation.
Bodnar, who is released on a $250,000 bond, is required to report to prison on October 16, 2019.
On July 26, 2019, a jury found Capelli, of Milford, guilty of one count of conspiracy to distribute, and to possess with intent to distribute, 100 kilograms or more of marijuana, and one count of possession with intent to distribute 100 kilograms or more of marijuana. He was found not guilty of one count of conspiracy to launder monetary instruments, and one count of money laundering. Capelli has forfeited approximately $90,000 to date, and additional forfeiture proceedings are pending.
On May 3, 2019, Givens, of Beacon Falls, pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana, and one count of conspiracy to launder monetary instruments. He also agreed to forfeit his 2009 Jaguar XF and approximately $8,000 in jewelry.
On May 6, 2019, Burns, of Milford, pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana. He also has agreed to forfeit the Piper aircraft.
Capelli, Givens and Burns await sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Federal Aviation Administration’s Law Enforcement Assistance Program (LEAP), the Customs and Border Protection’s Air and Marine Operations Center, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Stratford, Derby and West Haven Police Departments, and the Second Judicial Drug Task Force in Jonesboro, Arkansas.
The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Marc Silverman.
American Citizen, an Alleged ISIS Sniper and Weapons Instructor, Indicted for Providing Material Support to ISISRead the Press Release
A five-count indictment was filed yesterday in federal court in Brooklyn charging Ruslan Maratovich Asainov, 43, also known as “Suleiman Al-Amriki” and “Suleiman Al-Kazakhi,” with conspiracy to provide material support to ISIS; providing material support to ISIS in the form of personnel, training, expert advice and assistance and weapons; receipt of military-type training from ISIS; and obstruction of justice. If convicted, Asainov faces a maximum sentence of life in prison. Asainov will be arraigned at a later date.
John C. Demers, Assistant Attorney General for National Security; Richard P. Donoghue, United States Attorney for the Eastern District of New York; Michael McGarrity, Assistant Director of the Counterterrorism Division, FBI; William F. Sweeney Jr., Assistant Director-in-Charge, FBI, New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
As detailed in court filings, Asainov is a naturalized U.S. citizen born in Kazakhstan, who resided in Brooklyn. As alleged, in December 2013, Asainov traveled on a one-way ticket to Istanbul, Turkey, a common transit point to obtain entry into Syria. He subsequently entered Syria, joined ISIS and became a sniper for the terrorist organization. Over time, Asainov rose through the ranks to become an ISIS “emir” in charge of training other ISIS members in the use of weapons. He also attempted to recruit another individual to travel from the United States to Syria to fight for ISIS.
As further alleged, in March 2015, Asainov asked a confidential informant to send him approximately $2,800 so that he could purchase a scope for his rifle. Asainov subsequently sent the confidential informant two photographs of himself holding an assault rifle fitted with a scope. Asainov messaged one individual, exclaiming in reference to ISIS, “we are the worst terrorist organization in the world that has ever existed,” and added that he wished to die on the battlefield.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, Saritha Komatireddy and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Jacqueline L. Barkett of the Counterterrorism Section of the National Security Division of the Department of Justice.
Albany Meth Dealer Sentenced to 16 Years in PrisonRead the Press Release
ALBANY – A known methamphetamine dealer was sentenced to 16 years in prison for his crimes, said U.S. Attorney Charles “Charlie” Peeler. Terrence Lamont Brooks, 36, of Albany, Georgia previously entered a guilty plea in May 2019 to Distribution of Methamphetamine. U.S. District Judge Leslie Gardner sentenced Mr. Brooks to 192 months in prison and five years supervised release. There is no parole in the federal system.
Mr. Brooks admitted in his signed plea agreement that he arranged to meet a Confidential Informant (CI) on August 22, 2018 in a high-traffic area of Northwest Albany for the purpose of selling methamphetamine. Mr. Brooks met the CI in the 2700 block of Dawson Road, and under audio and visual surveillance, sold the CI 55.6 grams of 97% pure d-methamphetamine hydrochloride. During the course of two months, from August 2018 until September 2018, the CI made a total of four undercover buys from Mr. Brooks in various locations across Albany, totaling 226.3 grams of methamphetamine.
“I am proud of the excellent coordination by the investigating agencies that resulted in removing a well-known methamphetamine dealer from the streets of Albany,” said Charlie Peeler, the U.S. Attorney. “Our office will remain focused on supporting our law enforcement partners as they battle to keep our communities safe and free of deadly, illegal drugs.”
The case was investigated by the Lee County Sheriff’s Office, the Albany-Dougherty Drug Unit, the Georgia Bureau of Investigation, the Federal Bureau of Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Leah McEwen prosecuted 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.
Albany Man Indicted for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Thomas Rosario, age 35, of Albany, was arraigned on August 26 on an indictment charging him with distributing child pornography through the Kik phone messaging application.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The indictment alleges that in May 2017, Rosario – using the Kik name “tommynewtothis” – shared child pornography by providing others with links to Dropbox.com remote storage accounts that contained child pornography. On August 26, 2019, Rosario appeared before United States Magistrate Judge Christian F. Hummel and was released under pretrial supervision conditions.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Rosario faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Rosario would also have to register as a sex offender upon his release from prison.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
4 Indicted in Series of Robberies Committed in Pittsburgh and Monroeville in Late 2018 and Early 2019Read the Press Release
PITTSBURGH, PA - Four residents of Allegheny County have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit Hobbs Act robbery and aiding and abetting, United States Attorney Scott W. Brady announced today.
Rudolph McBride, 21, of Penn Hills, Jaron Davis, 23, of Penn Hills, True Kinnon, 20, of Pittsburgh, and Wayne Edwards, 20, of Monroeville, were charged in a single indictment returned on August 28, 2019. According to the Indictment presented to the court, the four individuals conspired to commit robberies from October 2018 through February 2019, and the following members of the conspiracy committed the following robberies:
• On December 17, 2018, Jaron Davis and True Kinnon robbed a customer at the Home Goods store located at 200 Mall Boulevard in Monroeville while attempting to rob the store.
• On December 18, 2018, True Kinnon and Jaron Davis robbed the CoGo’s located at 925 East Carson Street in Pittsburgh.
• On January 30, 2019, Rudolph McBride, True Kinnon, and Wayne Edward robbed the CoGo’s located at 2800 Brownsville Road in Pittsburgh.
Additionally, Jaron Davis and True Kinnon are each charged with aiding and abetting the brandishing of a firearm in furtherance of a crime of violence on December 17, 2018, and Jaron Davis is charged with unlawfully possession a firearm from December 17 through December 19, 2018, after being convicted of an offense punishable by more than one year of imprisonment.
The law provides for a mandatory minimum sentence of seven years of incarceration for Davis and Kinnon and a maximum possible sentence of life in prison, and a maximum possible fine of $250,000 for each count of conviction. The law provides for a maximum sentence of 20 years of incarceration and a maximum possible fine of $250,000 for each count of conviction for McBride and Edwards. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rebecca Silinski, Timothy Lanni, Mark Gurzo and Doug Maloney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pittsburgh Bureau of Police, the Penn Hills Police Department and the Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
3 September 2019
Wetzel County woman sentenced for connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Cynthia Henries, of New Martinsville, West Virginia, was sentenced today to 12 months and one day incarceration for her involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Henries, age 47, pled guilty to “Aiding and Abetting the Distribution of Methamphetamine” in August 2018. Henries admitted to selling methamphetamine in March 2017 in Wetzel County.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
West Virginia physician sentenced for illegal opioid distribution to patientsRead the Press Release
CLARKSBURG, WEST VIRGINIA— Dr. Felix Brizuela, Jr., of Harrison City, Pennsylvania, was sentenced today to 48 months incarceration for illegally distributing opioids, United States Attorney Bill Powell announced.
Following a six-day trial in January 2019, the jury found Brizuela, age 58, guilty of 15 counts of “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” The jury acquitted Brizuela of anti-kickback counts and six other distribution counts in the indictment.
The controlled substances illegally distributed by Brizuela included Oxycodone, Fentanyl, and Oxymorphone. They were distributed without legitimate medical purpose and outside the scope of professional practice in Monongalia County, West Virginia between 2013 and 2015.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of Inspector General at the U.S. Department of Health and Human Services, WV Offices of the Insurance Commissioner Fraud Division, WV Medicaid Fraud Control Unit, Office of Ohio Attorney General Health Care Fraud, Ohio Bureau of Workers’ Compensation, the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative, the Greater Harrison County Drug Task Force, a HIDTA-funded initiative, West Virginia State Police, the Hancock County Sheriff’s Office, and the Weirton Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Virginia man admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Todd Jason Erwin, of White Post, Virginia, has admitted to his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Erwin, age 42, pled guilty to one count of “Conspiracy to Distribute Cocaine Base and Heroin.” Erwin admitted to working with others to distribute cocaine base and heroin in October and November 2018 in Berkeley County.
Erwin faces up to 20 years incarceration and a fine of up to $1,000,000. 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 Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Virginia man admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Lee Gray, II, of Marshall, Virginia, has admitted to his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Gray, age 29, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Gray admitted to working with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties and elsewhere.
Gray faces up to 20 years incarceration and a fine of up to $1,000,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
United States District Court Enters Permanent Injunction Against Hendersonville Companies and Its OwnerRead the Press Release
NASHVILLE, Tenn. – September 3, 2019 – A federal court in Nashville today entered a consent decree of permanent injunction against Hendersonville, Tennessee-based companies Basic Reset and Biogenyx, and its owner Fred R. Kaufman III, and Kimberly Kaufman, the Department of Justice announced today. The permanent injunction enjoins the defendants from distributing unapproved new drugs and misbranded and adulterated dietary supplements and a misbranded and adulterated device in violation of the federal Food, Drug, and Cosmetic Act (FDCA).
A complaint was filed on August 26, 2019, in the Middle District of Tennessee, at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, that defendants unlawfully distributed unapproved new drugs and an adulterated and misbranded device. Defendants market their drugs and device with claims that their products can be used to diagnose, cure, mitigate, treat, or prevent conditions, such as inflammation, chronic diarrhea, bacterial infections, head lice, allergies, and pain. The FDA has not approved Basic Reset’s or Biogenyx’s drugs or device for any use.
“The public has the right to expect that products perform according to claims included in their labeling and that the products are safe for use,” said U.S. Attorney Don Cochran. “FDA regulations exists to safeguard consumers and when those regulations are circumvented we will take whatever action is necessary to protect the public.”
“Drug and dietary supplement distributors who do not comply with the law risk endangering consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We work closely with the FDA in our efforts to enforce the laws that are designed to keep consumers safe.”
“Americans expect and deserve products that meet appropriate standards for quality. To ensure safe use by consumers, it’s important that companies who sell products adhere to standards set forth by the FD&C Act, including product labeling and quality,” said Acting FDA Commissioner Ned Sharpless, M.D. “Despite previous warnings, Basic Reset and Biogenyx placed consumers at risk by distributing certain products in violation of current good manufacturing practice (CGMP) requirements and products which failed to adequately meet labeling standards. The U.S. Food and Drug Administration remains fully committed to taking enforcement action against companies and owners who place unsuspecting American consumers at risk.”
The complaint also alleges that Basic Reset and Biogenyx misbranded and adulterated their dietary supplements, several of which are missing information on their labels required by law. FDA inspections also uncovered numerous violations of the agency’s current Good Manufacturing Practice (cGMP) regulations for dietary supplements, including failing to establish and follow written procedures to review and investigate product complaints and failing to establish specifications to assure that the products they receive for labeling are adequately identified and consistent with the purchase order. Because Defendants failed to follow cGMP regulations, their dietary supplements are adulterated under the FDCA.
Basic Reset/Biogenyx is an own label distributor of various types of drugs, dietary supplements, and a device, and include, but are not limited to, AquaLyte, Bee Gold, Beta Factor, Body Mass Reset, CBD Reset, Dino-Min, Earth Wash, GH-C, Ionyte, Mello-Tonin, Miracle Facelift Masque, Nuovi Firming Masque, Nuovi Skin Toner, pH-FX, Q-min, SlimUp, TrimUp, Vibrant Energy Drink and Energy FX, a device intended for use in the cure, mitigation, treatment or prevention of disease, including but not limited to leukemia.
As part of the court-ordered permanent injunction, Basic Reset, Biogenyx, and their owners are prohibited from directly or indirectly receiving, labeling, holding, or distributing dietary supplements, drugs, or devices at or from their facility until they, among other things, recall their drugs, dietary supplements, and device, hire qualified experts to examine packaging and labeling, and receive written permission from the FDA to resume operations.
The United States is represented by Assistant U.S. Attorney Christopher Sabis of the U.S. Attorney’s Office for the Middle District of Tennessee, Trial Attorney Charles Biro of the Civil Division’s Consumer Protection Branch with the assistance of Associate Chief Counsel Laura Akowuah of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
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Two Cotulla Drug Traffickers Head to PrisonRead the Press Release
LAREDO, Texas - Two local residents have been ordered to federal prison after having being caught for selling methamphetamine out of a Cotulla residence, announced U.S. Attorney Ryan K. Patrick.
Francisco Flores, 44, and Fabian Cordova, 35, pleaded guilty in October 2018.
On Sept. 3, 2019, U.S. District Judge Diana Saldana ordered Flores to serve 151 months in prison for his four counts of trafficking methamphetamine. Flores was sentenced to 60 months for his one count of conspiracy to commit drug trafficking. The sentences will be immediately followed by five years of supervised release.
The investigation revealed Flores and Cordova had conducted several drug trafficking transactions. Authorities executed a search warrant March 8, 2018, at the residence of Flores in Cotulla. At that time, Flores and Cordova had attempted to flee but were ultimately arrested.
During the search, authorities also found 10 weapons and narcotics packaged for sale which included nearly 70 grams each of cocaine and methamphetamine.
Flores admitted he kept the weapons to protect himself and to selling narcotics for more than 25 years.
Both 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 Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and the Cotulla County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Force operation dubbed Eagle Ford Shales. Assistant U.S. Attorney Graciella Lindberg prosecuted the case.
Turkish Businessman Sentenced to 27 Months Imprisonment for Conspiracy to Violate U.S. Sanctions by Exporting Marine Equipment from the United States to IranRead the Press Release
Resit Tavan, a Turkish Businessman and owner of the Istanbul-based Turkish business Ramor Dis Ticaret Ltd. (also known as the “Ramor Group”) was sentenced on Thursday, Aug. 29, 2019, in Federal District Court in Milwaukee, Wisconsin, to 27 months imprisonment in connection with his conviction for conspiracy to violate U.S. sanctions by exporting specialized marine equipment from the United States to Iran between 2013 to 2015.
On April 2, 2019, Tavan, a Turkish citizen, had pleaded guilty to a conspiracy to violate U.S. sanctions on Iran under the International Emergency Economic Powers Act by using his Turkish based company, the Ramor Group, to acquire a range of marine related equipment that had been manufactured in Wisconsin by U.S. companies, including high powered outboard engines, marine power generators and power boat propulsion equipment known as surface drives, on behalf of the Iran-based Qeshm Madkandalou Shipbuilding Cooperative (Madkanadalou). Evidence introduced in Court showed that Tavan had worked in cooperation with Iranian officers associated with Madkandalou to use some of this U.S. origin marine equipment to support the construction and development of a prototype high-speed missile attack boat for the Iranian military or naval forces. From early 2013 through 2015, Tavan and the Ramor Group had worked in concert with Iranian officials to procure U.S. origin marine equipment and illegally export it to Iran by using the Ramor Group in Turkey to receive the goods and thereafter re-export it to Madkandalou in Iran, in violation of U.S. sanctions.
At the sentencing hearing, the District Court Judge indicated that this conspiracy to violate U.S. sanctions by procuring marine equipment for military purposes represented a serious threat to U.S. national security. The Judge also found that Tavan’s role in the offense should be considered in connection with the overall direction and control of the project by higher ranking Iranian officials.
At no time did anyone involved in these transactions obtain permission from the U.S. Department of Treasury, Office of Foreign Assets Control or the U.S. Department of Commerce to export any U.S.-origin marine equipment from the United States to Iran.
A co-defendant charged in the same Indictment, Fulya Kalafatoglu Oguzturk, a Turkish citizen, remains at large as a fugitive.
Assistant Attorney General Demers and U.S. Attorney Matthew Krueger praised the outstanding investigative work of the FBI and the U.S. Department of Commerce, and thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Marshals Service, for their contributions to this case. The Office of International Affairs of the Justice Department’s Criminal Division provided significant support with the defendant’s extradition from Romania in 2017.
This case was prosecuted by Assistant U.S. Attorneys Paul Kanter and Keith Alexander, and by Trial Attorney Will Mackie from the Counterintelligence and Export Control Section of the National Security Division.
Tour Bus Driver Pleads Guilty to Killing Alaska Mayor and Mother in Downtown Washington Traffic FatalityRead the Press Release
WASHINGTON – Gerard D. James, 46, of Baltimore, MD, pled guilty today to two counts of negligent homicide stemming from a traffic collision last December where he struck and killed two pedestrians, including the Mayor of Skagway, Alaska, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
James pled guilty in the Superior Court of the District of Columbia this morning. The plea calls for a sentence of up to two years in prison for causing each of the two deaths, for a total of up to four years. He will be sentenced on November 15, 2019, by the Honorable Danya Dayson.
The fatal traffic collision occurred on Thursday, December 19, 2018, at approximately 9:40 p.m. The victims, Skagway, Alaska mayor Monica Carlson, 61, and her 85-year-old mother, Cora Adams, had come to Washington to tour the White House Christmas decorations. Video from a DC Department of Transportation camera showed Mayor Carlson and Ms. Adams waiting to cross Pennsylvania Avenue NW at the corner of 7th Street near the National Archives. As the pedestrian signal changed, allowing the victims to cross, they walked north across Pennsylvania Avenue in the marked crosswalk. As the two were crossing, an Eyre Bus Company tour bus being driven north on 7th Street by the defendant, turned left onto Pennsylvania Avenue. The bus struck both pedestrians as they crossed. Both Mayor Carlson and Ms. Adams were taken to area hospitals where they died from their injuries.
The Eyre tour bus that the defendant was driving was equipped with cameras that captured video from two angles of the bus, a forward facing camera on the bus’s windshield and another mounted over the operator’s compartment. The forward position camera showed that as the bus traveled north towards the Pennsylvania Avenue intersection, southbound 7th Street traffic traveled through the intersection, indicating that when James executed the left turn onto Pennsylvania Avenue, the signal controlling his progress showed a left red arrow. The other camera, mounted over the operator’s compartment, showed that as James was turning left from 7th Street onto Pennsylvania Avenue, his cell phone rang and lit up. Simultaneously as James was turning left, he picked up the ringing cell phone with his left hand and transferred it to his right hand. As the video showed this, the impact of the striking of the two pedestrians could be heard on the video.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of the officers and detectives who investigated the case from the Major Crash Investigations Unit of the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigative Analyst Zachary McMenamin, Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Jennifer Clark.
Finally, they commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the case.
Suburban Man Sentenced to 15 Years in Prison for Sharing Child Pornography and Sexually Assaulting a MinorRead the Press Release
CHICAGO — A suburban man has been sentenced to 15 years in federal prison for sharing sexually explicit images of children and sexually assaulting a 13-year-old girl he met online.
Using the screen name “darkangle25,” MATTHEW SMITH, 51, of Burbank, shared sexually explicit images and videos of children on the Kik online messaging application. Some of the images depicted underage girls being sexually abused. Smith also sexually assaulted a 13-year-old girl in 2015 after chatting online and luring her to his home.
Smith pleaded guilty earlier this year to federal child pornography charges. U.S. District Judge Charles R. Norgle on Aug. 30, 2019, sentenced Smith to 15 years in prison, to be followed by ten years of supervised release.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Burbank Police Department provided valuable assistance.
“This sentence underscores HSI’s commitment to protecting the most vulnerable members of our society — our children,” said SAC Gibbons. “We will continue to work in partnership with fellow law enforcement agencies and the U.S. Attorney’s Office to bring those engaged in child exploitation to justice.”
Although many of the children depicted in the images and videos have not been identified, 17 of the victims submitted impact statements to the Court prior to sentencing. In the statements, the victims detailed the lasting nature of the conduct by Smith and others who shared the images and videos online.
“By downloading [child pornography], storing, and trading it with others, he continued the victimization of children who had been filmed or photographed engaging in acts no child should be part of,” Assistant U.S. Attorney Matthew Hernandez argued in the government’s sentencing memorandum. “The 17 victim impact statements submitted to the Court speak to the incalculable damage caused to those young victims of child pornography.”
Smith met the 13-year-old victim online and spent two years grooming her via Kik, text message, and phone calls, before enticing her to his apartment. As detailed in victim impact statements submitted by the victim’s family to the Court, the girl’s disappearance caused her family immense suffering and prompted them to file a missing person report on her behalf.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com/home or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Suburban Houston Man Gets 34 Years for Sexually Exploiting a ChildRead the Press Release
HOUSTON – A 41-year-old resident of New Caney has received a massive sentence following his conviction of producing and possessing child pornography, announced U.S. Attorney Ryan K. Patrick. Joshua James Holmstedt pleaded guilty April 16, 2019.
Today, U.S. District Judge Andrew A. Hanen handed Holmstedt a sentence of 360 months for the sexual exploitation of a child, otherwise known as production of child pornography. He also received 120 months for the possession of child pornography - 48 months of which was ordered to run consecutively for a total of 34 years in federal prison. He was also ordered to serve 30 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Holmstedt will also be ordered to register as a sex offender.
Holmstedt came to the attention of law enforcement July 17, 2017, when authorities in the District of Columbia posted an online message as part of an undercover investigation. They then received a message via an application known as Kik from Holmstedt. He communicated with the undercover officer and indicated he had access to two minor children which he proved by sending a picture of himself holding up a specific number of fingers in front of the minor female victim’s face. Over the course of a few days, Holmstedt sent several images of the minor female as well as other images and videos of child pornography. One of the worst videos Holmstedt provided showed him digitally penetrating the minor female. At the time, the victim was only three years of age.
Based on information gathered during the investigation, local authorities were able to locate and identify the victim and the other child mentioned. Holmstedt was located July 21, 2019, at which time he indicated he had destroyed the phone he used to create the images and to communicate with the undercover officer
The District of Columbia Metropolitan Police Department – FBI Child Exploitation Task Force and FBI Houston conducted the investigation with the assistance of the Montgomery County Constables’ Office – Precinct Four.
Holmstedt has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, 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."
St. Louis Man Pleads Guilty to Four Armed RobberiesRead the Press Release
St. Louis, MO –Carlos Robinson, 28, of St. Louis, MO, pleaded guilty to four counts of robbery and two counts of brandishing a firearm in furtherance of a crime of violence arising out of four separate armed store robberies committed in early 2017. Robinson appeared today before U.S. District Judge Henry E. Autrey, who accepted his plea and set a sentencing date of December 3, 2019.
According to the plea agreement, on February 6, 2017, at approximately 5:00 p.m., Robinson entered the Conoco Gas Station located at 3600 Big Bend Boulevard in St. Louis County. He pulled a bandana over his mouth and pointed a silver firearm at the clerk. Robinson instructed the clerk to open the cash register and demanded money before exiting the service station.
On February 10, 2017, at approximately 10:00 a.m., Robinson entered the Mobil on the Run gas station located at 9371 Olive Boulevard, also in St. Louis County. He pointed a small silver firearm at the clerk, told her to open the cash register drawer and give him the money.
On February 13, 2017, at approximately 1:39 p.m., Robinson entered the BP gas station located at 7003 Manchester Avenue, St. Louis City. He entered the store wearing sunglasses and asked to use the bathroom key, which the cashier provided. Robinson returned the key, walked inside the Plexiglas partition and revealed a firearm to the cashier, demanding money. The cashier was able to physically push Robison out of the secure cashier area, close the door, and push the alarm.
On February 15, 2017, at approximately 7:01 p.m., Robinson entered the Family Dollar located at 4344 Dr. Martin Luther King, Jr. Drive, also in St. Louis City. He approached the register and asked for a pack of Newport cigarettes. Robinson displayed a firearm, demanded money, and threatened to hurt the cashier if she did not comply.
The robbery charges carry a penalty of not more than 20 years and/or a fine of $250,000 on each count. The firearm charges carry a penalty of not less than seven years nor more than life and/or fine of $250,000 on each count consecutive to any other sentence imposed. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the Maplewood Police Department, the Olivette Police Department, and the St. Louis Metropolitan Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Riverside County Tax Preparer Pleads Guilty to Charges of Cheating IRS Out of $2.1 Million through Filing of Hundreds of Bogus ReturnsRead the Press Release
LOS ANGELES – An Inland Empire income tax return preparer pleaded guilty today to federal criminal charges for defrauding the Internal Revenue Service out of more than $2.1 million by submitting false tax returns on his clients’ behalf, including obtaining child tax credits for childless clients.
Dennis L. Reed II, 31, of Hemet, pleaded guilty to two counts of aiding and assisting in the preparation of false income tax returns. United States District Judge Otis D. Wright II scheduled a December 2 sentencing hearing, at which time Reed will face a statutory maximum sentence of six years in federal prison.
Reed admitted in his plea agreement that, from 2014 through 2019, he prepared hundreds of federal and state income tax returns containing false claims designed to generate or increase fraudulent tax refunds. The fraudulent tax returns falsely claimed, for example, that the taxpayers had dependents, operated a sole proprietorship, or were entitled to receive credits for certain educational expenses.
For example, Reed admitted he prepared at least 384 returns that falsely stated that the client had earned income from Schedule C sole proprietorships, which are tax forms used by the self-employed to report business profits or losses. In reality, Reed knew his clients did not work at all during the year, had not earned income, and were not required to file an income tax return, the plea agreement states. On at least 79 tax returns, Reed admitted he created phantom business income or losses and claimed false dependents on clients’ tax returns in order to generate tax refunds to which the clients weren’t entitled. On at least 114 tax returns, Reed falsely claimed that the clients had educational expenses that resulted in refunds to which they weren’t entitled.
Though Reed prepared federal income tax returns for clients, he did not sign their returns to identify himself to the IRS as the returns’ preparer, but rather stated on the tax returns that they were “self-prepared,” the plea agreement states. Reed admitted that he charged clients between $350 and $1,350 to prepare and file income tax returns.
The false tax returns Reed prepared resulted in a loss of $2,158,337 to the IRS, according to the plea agreement.
This matter was investigated by IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.
Richland County man formerly affiliated with the Boy Scouts of America pleaded guilty to sexual exploitation of children after he surreptitiously recorded children changing before and after swimmingRead the Press Release
A Richland County man formerly affiliated with the Boy Scouts of America pleaded guilty in federal court to sexual exploitation of children after he surreptitiously recorded children changing before and after swimming.
Thomas Close, 39, of Shelby, pleaded guilty to two counts of sexual exploitation of children and one count of receiving and distributing child pornography. He is scheduled to be sentenced January 15.
Under the terms of his plea agreement, Close is expected to be sentenced to between 27 and 33 years in prison.
According to an affidavit filed in the case:
Homeland Security Investigations agents received information from the Cyber Crimes Center regarding videos taken of minor boys changing before or after swimming at the YMCA in Sandusky.
A review of several videos revealed they were recorded at the YMCA facility in Sandusky, which sometimes rented its pool to the Boy Scouts, inside teepees used at the Firelands Scout Reservation in Wakeman, as well as inside the bathroom of a home that appeared to have a swimming pool.
Investigators met with Boy Scouts of America officials in Cleveland, whose area includes seven counties. Due to the fact that all of the photos appear to revolve around changing before or after swimming, Boy Scout officials alerted investigators to an incident report from June 2017 documenting an occurrence at the Firelands Scout Reservation they felt could be related. The report was made by a den leader regarding a Boy Scouts of America staff member named Thomas Close, also known as “Aqua Joe,” according to the affidavit.
Close was associated with Boy Scout Troop 406 and had a pool in his back yard.
HSI investigators went to Close’s home on November 1, 2018. Upon viewing his bathroom, they realized it is the same bathroom depicted in one of the videos. Close admitted to making the videos and said he created videos between 2011 and the summer of 2018, according to the affidavit.
He also admitted to downloading child pornography and said he had approximately five terabytes of child pornography on his computer, according to the affidavit.
“This defendant used his position of trust to exploit several children and cause harm that will likely linger for years for his victims and their families,” U.S. Attorney Justin Herdman said. “This defendant needs to be locked up for decades and today’s plea is another important step in making sure that happens.”
"Mr. Close's admission today will hopefully begin the healing process for all of those who have been impacted by his heinous crimes," said Vance Callender, HSI special agent in charge for Michigan and Ohio. "I commend the community who supported this sensitive investigation and the pursuit of justice throughout this difficult period. Among its many types of investigations, HSI looks to bring swift justice to perpetrators of child exploitation through a victim centered approach."
Cuyahoga County Prosecutor Michael O’Malley said: “Hard work by law enforcement has taken another child predator off the street. We will continue to work with our federal partners to put an end to these crimes.”
This case was investigated by Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force and the Shelby Police Department. It is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
Reno Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
RENO, Nev. – A Reno resident who was on parole when he downloaded over two thousand images and videos of child pornography was sentenced today to 6 ½ years in federal prison, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
David Guilmette, 37, pleaded guilty in March 2018, to one count of receipt of child pornography. Guilmette has a felony conviction for attempted sexual assault of a child. In addition to the prison term, United States District Chief Judge Miranda Du sentenced Guilmette to lifetime supervised release. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
According to court documents, in October 2017, Reno Police Department officers responded to a complaint from a witness that reported seeing Guilmette looking at child pornography on a laptop computer. During an interview with law enforcement, Guilmette admitted to searching for and downloading child pornography. Officers obtained a search warrant to seize the laptop, thumb drive, and a mobile phone. A forensic examination of Guilmette’s laptop and thumb drive revealed approximately 850 images and 115 videos depicting children engaging in sexually explicit conduct, some masochistic and sadistic in nature. An additional 1,240 images and seven videos were located from deleted files.
The case was investigated by the FBI and the ICAC Task Force consisting of Washoe County Sherriff’s Office, Nevada Attorney General’s Office, Department of Homeland Security Investigations, Reno Police Department and Sparks Police Department. Assistant United States Attorneys Sue Fahami and Andolyn Johnson prosecuted the case.
If you have information regarding possible child sexual exploitation, you are urged to make a report to the National Center for Missing and Exploited Children at www.cybertipline.org or to contact local authorities.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Professional Skateboarder Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
Assistant U. S. Attorney Matthew Brehm (619) 546-8983
SAN DIEGO – Robert Lorifice, a North County professional skateboarder, and his then-girlfriend Elizabeth Alexandra Landis, pleaded guilty in federal court today to possessing methamphetamine and heroin with the intent to distribute.
Lorifice and Landis admitted to possessing the methamphetamine, heroin and other controlled substances with the intent to distribute them and that Lorifice, with Landis’ assistance, coordinated deals utilizing phone calls, text messages and communication through other apps; and they admitted to selling methamphetamine, heroin and other controlled substances for money.
For example, on September 7, 2018, Landis sent a text message that read: “I have bomb dark [heroin] you should try and I got [narcotics] and even some really bomb blue [methamphetamine] - the real deal. And bomb kush [marijuana] too. If u want to stop by here on ur way up let me know. I am gonna be heading down to sports arena a minute so if u aren’t leaving just yet I can swing by there.”
Lorifice and Landis admitted in their plea agreements that, when a search warrant was executed at Lorifice’s house in Encintitas on September 26, 2018, he did not answer the door and instead disposed of an unknown quantity of blue methamphetamine and other drugs down the toilet and sink in his master bedroom’s bathroom.
During the search of Lorifice’s residence, investigators found Lorifice and Landis in the master bedroom along with approximately 193 grams of methamphetamine, 231.6 grams of heroin, Roxicodone pills, more than 800 Xanax pills, a yellow powdery substance, marijuana, psilocybin mushrooms, a digital scale, packaging materials, three cell phones and approximately $16,824.
Lorifice and Landis further admitted that, on December 14, 2018, while Lorifice was out on bail on a state case, investigators executed a second search warrant at his same residence in Encinitas and Lorifice attempted to flush a tennis ball-sized chunk of methamphetamine down the toilet in the master bedroom’s bathroom. Again, Landis was also found in the master bedroom with Lorifice along with approximately 31 grams of black tar heroin, 18 grams of methamphetamine, $10,926 in currency, a digital scale and various pills.
Lorifice and Landis also admitted the $16,824 and the $10,926 seized during the search warrants were proceeds from drug trafficking and was also currency they intended to use to facilitate their drug trafficking activities.
Lorifice and Landis are schedule to be sentenced on November 22, 2019 at 9 a.m. by U.S. District Judge Dana M. Sabraw.
“It’s unfortunate that a public figure who is admired by kids chose to travel down this road,” said U.S. Attorney Robert Brewer. “We have a very big methamphetamine problem in our county right now, plus a nationwide opioid epidemic is raging, and we are going after anyone who sells the poison that is destroying lives and families and communities.”
"The successful conclusion of this case serves as a strong warning to drug dealers who operate on the streets of San Diego," said FBI Special Agent In Charge Scott Brunner. "Day in and day out, the FBI and our law enforcement partners work together in order to keep deadly narcotics off the streets and hold drug dealers accountable. This is an example of the important work we do with our partners at the San Diego Sheriff’s Department. "
“The San Diego Sheriff's Department embraces the collaborative efforts between local law enforcement; specifically the Sheriff's North Coastal Street Narcotic and Gang Team, and our federal partners, in ensuring that San Diego County continues to be the safest urban county in the nation,” said Sheriff’s Lieutenant James Cady.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert Brewer, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
DEFENDANTS Case Number 19cr1211-DMS
Robert Lorifice Age: 31 Encinitas, CA
Elizabeth Alexandra Landis Age: 27 Encinitas, CA
SUMMARY OF CHARGES AGAINST LORIFICE
Possession of methamphetamine with intent to distribute – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Forty years in prison and $5 million fine
Possession of heroin with intent to distribute - Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Forty years in prison and $5 million fine
AGENCY
San Diego Sheriff’s Department
Federal Bureau of Investigation
North County Gang Task Force
North Coastal Street Narcotic and Gang Team
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Pennsylvania physician admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dr. Parth Bharill, a Pittsburgh and Morgantown physician, has admitted to a drug charge, United States Attorney Bill Powell announced.
Bharill, age 61, of Pittsburgh, Pennsylvania, pled guilty to one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice.” Bharill admitted to working with the Redirections Treatment Advocates, LLC, of Morgantown, West Virginia, to write illegitimate prescriptions for suboxone. The crime occurred from November 2014 to January 2018 in Monongalia County, West Virginia.
Bharill faces up to 10 years incarceration and a fine of up to $500,000. 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 Sarah E. Wagner is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, and the Inspector General at the U.S Department of Health and Human Services investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Ohio County man admits to escapeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Garrett Michael Carrigan, of Wheeling, West Virginia, has admitted to escaping federal custody, United States Attorney Bill Powell announced.
Carrigan, age 33, pled guilty to one count of “Escape from Constructive Custody.” Carrigan, who was incarcerated for a previous child pornography case in the Northern District of West Virginia, escaped when traveling from a federal institution in California to a residential reentry center in Clarksburg in February 2019.
Carrigan faces up to five 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Nurse Who Stole Pain Medication from Her Elderly Patients at Two Area Nursing Homes Sentenced to Federal PrisonRead the Press Release
An Iowa licensed practical nurse (LPN) who stole pain medications from her elderly and vulnerable patients at two Waterloo-area nursing homes was sentenced August 29, 2019, to more than a year in federal prison.
Lacey Staveley, age 36, from Evansdale, Iowa, received the prison term after an October 15, 2018, guilty plea to one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge and one count of false statements relating to health care matters. On May 2, 2019, Staveley also pled guilty to one count of contempt of court.
In a plea agreement, Staveley admitted that, in November 2016, while employed at a nursing home in Cedar Falls, Iowa, she used her patients’ identities to get drugs. Staveley got pills containing hydrocodone by accessing her patients’ prescribed medications and diverting pain pills to herself. Staveley’s victims were long-term residents of the nursing home who had chronic pain and were on Medicare at the time. To cover up her scheme, Staveley destroyed an original medication log, placed it in a trash can, and replaced it with a fake medication log. When the nursing home discovered her thefts and asked her to provide a urine sample for testing, Staveley provided the nursing home with a fake urine sample consisting of toilet water. Because the sample obviously had flecks of toilet paper in it and no urine color, the nursing home obtained an actual urine sample from Staveley. This urine tested positive for the use of opiates, marijuana, and hydrocodone. The nursing home terminated Staveley’s employment.
In January 2018, Staveley was again working as a LPN for a different nursing home in Waterloo, Iowa. This nursing home was unaware of Staveley’s prior employment in Cedar Falls. Staveley took two oxycodone pills from a patient’s medication stocks. She also replaced the pills in the original blister pack with an anti-psychotic drug that did not provide pain relief. This patient complained of pain constantly. Staveley also admitted that she took four narcotic pills, containing Vimpat, from another nursing home patient and replaced those pills with an anti-seizure drug that had a similar shape and color. This second patient was non-verbal and could not even complain of pain. After discovering her actions, the second nursing home also terminated Staveley’s employment.
After being charged in federal court, Staveley violated the terms of her release more than 30 times. A federal judge revoked Staveley’s release after Staveley traveled to Tama County, burglarized her sister’s home, and stole her sister’s prescription drugs. Staveley’s sister suffered from serious medical conditions that required the prescriptions.
Staveley was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Staveley was sentenced to 15 months’ imprisonment. She was ordered to make more than $500 in restitution. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
This prosecution is part of the Medicare Fraud Strike Force operations, which are part of a joint initiative between the Department of Justice and Health and Human Services to focus efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
Staveley is being held in the United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2031.
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Nurse Pleads Guilty to Drug Theft and TamperingRead the Press Release
Katie Louise Boll, age 31, from Manchester, Iowa, a nurse who took hydrocodone and morphine from patients, pled guilty today in federal court in Cedar Rapids.
Boll was convicted of one count of acquiring controlled substances by misrepresentation, fraud, deception and subterfuge, and one count of tampering with a consumer product.
In a plea agreement, Boll admitted that between September 2018 and January 2019, she acquired hydrocodone prescribed for two of her patients for her own use on at least 50 occasions. Boll took the pills by swapping the hydrocodone pills for over-the-counter pills containing acetaminophen. Boll admitted that on December 24, 2018, she stole a morphine oral solution that was prescribed for a hospice patient for pain management and used mouthwash to dilute the solution to hide her theft. Boll also admitted that on December 29, 2018, she acquired controlled substances from ten additional patients by swapping their prescribed pain management medications for other substances. Boll further admitted she had been acquiring pain medications through fraud from hospitals and other facilities where she worked since October of 2016. Finally, Boll admitted her nursing license allowed her the ability to commit her crimes.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Boll remains in custody of the United States Marshal pending sentencing. Boll faces a possible maximum sentence of 14 years’ imprisonment, a $500,000 fine, and 3 years of supervised release following any imprisonment. Court file information at https://ecf.iand.uscourts.gov. The case file number is 19-CR-2044.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and investigated by Medicaid Fraud Control Unit of the Iowa Department of Inspections and Appeals and the United States Food and Drug Administration.
Northampton County Man Indicted for Illegally Possessing Guns, Homemade Bombs, and Unlawfully Operating DronesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jason Muzzicato, 43, of Bangor, Pennsylvania was charged by Superseding Indictment with possession of firearms by an unlawful user of a controlled substance, and knowingly operating an aircraft when not registered. Muzzicato was also previously charged in June with possession of firearms by a person subject to a court order restraining him from harassing, stalking and threatening an intimate partner (known as a domestic violence protective order, Protection From Abuse order or PFA), and possession of an unregistered destructive device (an improvised explosive device). These charges are pending before United States District Judge Joseph F. Leeson in Allentown, Pennsylvania.
The charges against the defendant stem from his possession of firearms and homemade bombs, while subject to the terms of a PFA order issued by the Northampton County Court of Common Pleas, and while being an unlawful user of methamphetamine. Under federal law, an individual who is subject to a PFA order is prohibited from possessing firearms. The defendant is also charged with unlawful operation of an unmanned aerial vehicle (drone). As alleged in the Superseding Indictment, the defendant possessed a DJI, Model Phantom 3, unmanned aerial vehicle (drone), seven improvised explosive devices and ten firearms, including multiple AR-15 rifles and semi-automatic pistols.
“It does not take much imagination to conjure up the enormous harm that can result from the combination of illegal firearms, explosives, and drone aircrafts,” said U.S. Attorney McSwain. “Adding methamphetamine and a disregard of court orders to the mix only serves to heighten the risk. Here the defendant’s alleged behavior violated the law and threatened public safety.”
If convicted, the defendant faces a maximum possible sentence of 33 years’ imprisonment, three years’ supervised release, a $760,000 fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Reading Field Office; the Department of Transportation, Office of Inspector General, Fort Washington Field Office; the Washington Township Police Department; the Pennsylvania State Police; and the Bethlehem Fire Department, and is being prosecuted by Assistant United States Attorney John Gallagher.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Norfolk Man Sentenced in Federal Court for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced today that on September 3, 2019, Christopher S. Harmeier, 42, of Norfolk, was sentenced in federal court in Omaha, Nebraska, for conspiracy to distribute methamphetamine. United States District Court Judge Robert F. Rossiter, Jr. sentenced Harmeier to 63 months’ imprisonment. After completing his term of imprisonment, Harmeier will begin a two-year term of supervised release.
At the beginning of 2017, law enforcement began investigating a drug trafficking organization that was transporting large amounts of methamphetamine into Lincoln, Nebraska. The methamphetamine was then redistributed to local distributors, which included Harmeier in Norfolk. When the drug trafficking organization was taken down, Harmeier was in possession of two pounds of methamphetamine and $10,000.
This case was investigated by the Drug Enforcement Administration, assisted by the Lincoln Police Department and Nebraska State Patrol.
New York Man Sentenced on Federal Drug ChargeRead the Press Release
BLUEFIELD, W.Va. -- United States Attorney Mike Stuart announced today that a Brooklyn, New York man was sentenced on a drug charge in federal court in Bluefield. Tarik Williams, 35, was sentenced to 21 months in prison for distribution of heroin.
“Another out-of-state drug dealer caught peddling heroin in our southern counties,” said United States Attorney Mike Stuart. “It means another out-of-state drug dealer is going to federal prison. I’ve sent a record number of out-of-staters to federal prison for dealing drugs in my district and my foot is full throttle on the peddle to shut down these evildoers.”
Williams pled guilty in April, admitting that on October 16, 2017, he distributed a quantity of heroin to a confidential informant in Bluefield.
The Southern Regional Drug and Violent Crimes Task Force conducted the investigation. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by Senior United States District Judge David A. Faber.
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Missouri Man Pleads Guilty to Interstate Marijuana Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Halen Steven Patrick Frazier, 33, of Lone Jack, Missouri, entered a guilty plea to conspiring to distribute and possess with intent to distribute marijuana, which was shipped from California to Kansas City, U.S. Attorney McGregor W. Scott announced.
According to court documents, in November 2018, Frazier’s co-defendants Patrick Maldonado, of Madera; Elias Zambrano Jr., of Fresno; Tan Minh Vo, of San Jose; and David Agustus McGowan, of Kansas City; and Tien Van Phan, coordinated the shipment of about 476 pounds of marijuana to Frazier in Kansas City. The first shipment was seized from Frazier during a traffic stop after Vo’s courier, Phan, made delivery to him. Another load was intercepted by Arizona troopers after stopping McGowan for a broken tail light on his truck. During a search of the trailer, troopers found a hidden compartment with 384 pounds of marijuana, 78 pounds of THC-laced edibles, and $1,629 in cash.
Frazier is scheduled to be sentenced on Dec. 9 by U.S. District Judge Dale A. Drozd. Frazier faces a maximum statutory penalty of 40 years in prison, a minimum statutory penalty of five years in prison, and a $5 million fine. The actual sentence, however, will 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 other defendants are scheduled for a status conference in federal court in Fresno on Nov. 12. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force consisting of agents from the Drug Enforcement Administration; Homeland Security Investigations; Federal Bureau of Investigation; the Sheriff’s Offices of Tulare, Kings, and Fresno Counties; Fresno Police Department; Arizona Department of Health; and Kansas City Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Mint Hill, N.C. Man Is Charged with Wire Fraud and Aggravated Identity Theft for Stealing More Than $800,000 from an Elderly VictimRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte indicted Michael Filipidis, 24, of Mint Hill, N.C., on wire fraud and aggravated identity theft charges, for stealing more than $800,000 from an elderly victim, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The criminal indictment was unsealed in federal court today, following Filipidis’s initial appearance.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office joined U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, beginning in or about December 2018, Filipidis engaged in a scheme to defraud an elderly individual, by falsely representing to the victim that Filipidis was a financial advisor with a financial institution, and that he could manage and invest the victim’s monies. Filipidis was employed by the financial institution, but worked at a call center. The indictment alleges that, based on Filipidis’s fraudulent claims, the victim provided Filipidis with access to the victim’s financial accounts, and authorized Filipidis to transfer funds to new brokerage accounts. Filipidis then fraudulently diverted funds from the victim’s new brokerage accounts, as well as from the victim’s life insurance annuities and the victim’s other bank accounts, to bank accounts under Filipdis’s control. Filipidis then used and attempted to use the victim’s funds for Filipidis’s personal benefit.
According to allegations in the indictment, in order to carry out the scheme, when Filipidis opened the new brokerage accounts he used his own phone number and email address for the contact information. He also named himself the beneficiary of one of the new brokerage accounts without the knowledge and consent of the victim. Further, Filipidis fraudulently changed the mailing address, email address, and phone number associated with the victim’s bank accounts at the financial institution to Filipidis’s personal information, so the victim stopped receiving phone calls, correspondence, and statements for his bank accounts.
The indictment alleges that between December 2018 and February 2019, Filipidis diverted more than $800,000 of the victim’s funds, intended for Filipdis’s own benefit.
“This is a case of financial exploitation perpetrated by someone who posed as a trusted financial expert. Criminals who target seniors are shameful opportunists who prey upon the vulnerable. My office will help investigate, punish and deter crimes against our seniors, and teach financial predators the hard lessons they deserve,” said U.S. Attorney Murray.
“These types of cases often result in a devastating financial loss to victims,” said Special Agent in Charge DeMatteis. “This is particularly true for seniors who are at risk of losing the financial security that they have worked a lifetime to build. The U.S. Secret Service will work tirelessly to protect our seniors from those who wish to exploit them.”
Filipidis made his initial appearance in federal court this morning, before U.S. Magistrate Judge David S. Cayer. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. The aggravated identity theft charge carries a mandatory minimum term of two years in prison, to be served consecutively to any other term of imprisonment imposed.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service’s Charlotte Field Office for leading the investigation.
Assistant United States Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative.
Milton Man Sentenced for VA Disability Benefit FraudRead the Press Release
PENSACOLA, FLORIDA – Bryan S. Gaines, 46, of Milton, Florida, was sentenced today to 3 years’ probation and ordered to repay the government more than a quarter-million dollars after pleading guilty to theft of government money and making false statements. The sentence, handed down in the U.S. District Court in Pensacola, was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Gaines received disability benefits from the Department of Veterans Affairs (VA). Between at least 2011 and 2018, he falsely reported to the VA that he was not working and was unable to work, so he could receive benefits to which he was not entitled. In fact, Gaines had been working at an automotive repair business during that time. For this fraud, Gaines was sentenced to 3 years’ probation and ordered to pay $243,243.05 in restitution to the VA.
"Stealing from the VA is tantamount to stealing from each of the brave men and women who have served our nation in times of war and times of peace. Today’s sentence should serve as a strong reminder that this kind of contemptible behavior will not be tolerated, and will in fact be prosecuted to the full extent of the law," Keefe said.
David Spilker, Special Agent in Charge, VA OIG, stated, "Gaines stole VA’s resources from eligible veterans deserving of the financial assistance earned through their military service. VA OIG is committed to safeguarding the integrity of VA’s disability benefits programs."
Assistant United States Attorney Alicia H. Forbes prosecuted the case following an investigation by the Department of Veterans Affairs-Office of the Inspector General.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Michigan man admits to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony Foy, of Detroit Michigan, has admitted to selling heroin, United States Attorney Bill Powell announced.
Foy, also known as “Duke,” age 41, pled guilty to one count of “Aiding and Abetting Distribution of Heroin.” Foy admitted to selling heroin in October 2017 in Monongalia County.
Foy faces up to 20 years incarceration and a fine of up to $1,000,000. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.