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Wednesday 10 July 2019
Detroit Man Pleads Guilty to Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Detroit man pled guilty to a federal drug trafficking offense, announced United States Attorney Mike Stuart. Nekko Johnie Daniel, 31, pled guilty to possession with intent to distribute oxycodone before United States District Judge Irene C. Berger. Stuart commended the investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT), the Kanawha County Sheriff’s Department, the Charleston Police Department, and the West Virginia State Police.
“Another drug dealer nabbed off the Detroit Express,” said United States Attorney Mike Stuart. “Daniel will now be taking the bus to federal prison.”
Based on information presented in public court records and hearings, on December 12, 2016, Daniel traveled by bus from Detroit, Michigan, to the Greyhound station in Charleston, where he left in a car. Police investigators stopped Daniel’s car after it failed to maintain its lane while traveling south on Interstate 77. The investigators smelled a strong odor of marijuana coming from the vehicle and searched it, ultimately recovering a half-ounce of marijuana from Daniel’s person and 540 oxycodone pills in his bag.
Daniel faces up to 20 years in federal prison when he is sentenced on October 30, 2019. Assistant United States Attorney Drew O. Inman is handling the prosecution.
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Darknet Drug Dealer Sentenced to 86 Months in Federal PrisonRead the Press Release
PORTLAND, Ore.—Skylaar Daylan Ford, 24, of Portland, Oregon, was sentenced today to 86 months in federal prison and three years’ supervised release for using the darknet to sell ecstasy to customers across the U.S.
According to court documents, in June 2017, Ford was on post-prison supervision after a previous conviction for possession of a Schedule II controlled substance in Lane County Circuit Court. During a June 9, 2017 visit to and search of Ford’s Northeast Portland home, a Multnomah County Probation and Parole Officer found more than 100 grams of heroin. Upon discovery of the heroin, the probation and parole officer contacted the Portland Police Bureau for assistance. PPB officers and a Homeland Security Investigations (HSI) agent responded.
When the officers and agent arrived, they placed Ford under arrest and received consent to search his residence. During the search, the HSI agent located an unopened parcel addressed to Ford. The package was opened and found to contain nearly 500 grams of 3,4-methylenedioxymethamphetamine (MDMA) also known as “ecstasy” or “molly.” Ford admitted to purchasing the ecstasy from a vendor in the Netherlands and reselling on AlphaBay, a darknet marketplace. Investigators were later able to confirm that Ford had been an AlphaBay vendor since November 2016 and had completed more than 500 confirmed sales of ecstasy.
On January 9, 2019, Ford pleaded guilty to one count of possession with intent to distribute MDMA, a Schedule I controlled substance. As part of his plea agreement, Ford agreed to forfeit any property used to facilitate his crimes as identified by the government.
This case was investigated by HSI and the Portland Police Bureau. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
Chicago Woman Sentenced for Role as Leader of Sex Trafficking SchemeRead the Press Release
HAMMOND – Rita Law, 60, of Chicago, Illinois, was sentenced by U.S. District Court Judge Joseph S. Van Bokkelen today to serve 360 months in federal prison after being found guilty, following a 3-week jury trial in February 2017, of two counts of trafficking and servitude, one count of transporting a person across state lines with intent that they engage in prostitution, and one count of using an interstate facility to promote prostitution, announced U.S. Attorney Thomas L Kirsch, II.
The trial evidence established that Law provided and obtained the labor and services of two victims, HV and XC, by means of a scheme to cause them to believe that if they did not perform the labor and services she demanded, they would suffer serious harm or physical restraint. Law was convicted of causing both women to work at her “spas” in northwest Indiana, where they were expected to and did engage in sexual acts in exchange for money with Law’s predominantly male clientele. Law’s businesses were “Duneland Spa” in Lake Station and Gary, Indiana and “Fun Fun Feet” in Hobart, Indiana. In sentencing Law, the court took into consideration her attempt to flee from the United States to Hong Kong in October 2013 after learning she was under investigation.
In announcing Law’s sentence, U.S. Attorney Kirsch described her offense conduct as “nothing short of diabolical.” “She used the American dream to lure unsuspecting women to the United States so she could enslave them for her own financial benefit.” Kirsch also said “My office’s willingness to extradite Rita Law from Hong Kong and pursue additional charges against her thereafter should serve as a warning to all those committing crime in the Northern District of Indiana – attempting to flee the country will not prevent my office from bringing you to justice.” “Sex trafficking of foreign and domestic victims will not be tolerated in the Northern District of Indiana as long as I am United States Attorney” he concluded.
“Let this sentence serve as a reminder that modern day slavery will not be tolerated,” said Special Agent in Charge James M. Gibbons, Homeland Security Investigations Chicago. “HSI will continue to work relentlessly with its law enforcement partners to bring those to justice who attempt to circumvent the law for financial gain.”
"This sentence cannot begin to compare to the trauma these victims were subjected to, and the life altering consequences they now face because they put their trust and faith in the defendant,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI will continue working with our law enforcement partners to aggressively identify and pursue the perpetrators of the devastating crime of human trafficking.”
This case resulted from a joint investigation by Homeland Security Investigations and the Federal Bureau of Investigation along with assistance from the following additional law enforcement agencies: the Gary Indiana Police Department; the Oak Forest Illinois Police Department; the Hammond Indiana Police Department, the Hobart Indiana Police Department, the Lake Station Indiana Police Department, the Lake County Indiana Sheriff’s Office, the Indiana State Police, the United States Marshal’s Service, the Hong Kong Police and the HSI Hong Kong Attaché.
U.S. Attorney Thomas Kirsch, Homeland Security Investigations Special Agent in Charge James Gibbons, and Federal Bureau of Investigation Special Agent in Charge Grant Mendenhall also thanked the following community organizations for providing services to HV and XC during the investigation and prosecution: Asian Human Services of Chicago, IL; Haven House of Hammond, IN; Cornerstone Community Outreach of Chicago, IL; and Heartland Alliance in Chicago, IL.
This case was prosecuted by Assistant United States Attorneys Jill Koster and Abizer Zanzi.
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Cedar Rapids Man Pleads Guilty to Possessing Child PornographyRead the Press Release
A man who possessed child pornography pled guilty on July 8, 2019, in federal court in Cedar Rapids.
Troy French, age 29, from Cedar Rapids, was convicted of one count of possession of child pornography. At the plea hearing, French admitted that, between 2012 and 2017, he knowingly possessed child pornography, including one or more depictions of prepubescent children.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. French was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. French faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 19-5.
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Buffalo Business Owner Sentenced for Tax Fraud and Harboring an Illegal AlienRead 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 Todd Cameron, 47, of Buffalo, NY, who was convicted of filing a false tax return and transporting and harboring an illegal alien, was sentenced to serve 51 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution in the amount of $508,340 to the IRS.
Assistant U.S. Attorney Russell T. Ippolito, who handled the case, stated that between June 2012 and December 2015, Cameron operated the Buffalo Remodeling & Construction Co. of W.N.Y. and Buffalo Roofing Co. For the tax years 2013-2015, the defendant failed accurately to report income generated from his businesses to the Internal Revenue Service.
In addition, between July 2015 and December 2015, Cameron transported and harbored six illegal aliens for the purpose of commercial advantage and private financial gain. The defendant paid for the illegal aliens to be transported from the State of Maryland here to the Western District of New York to work for his roofing business. Cameron then paid to house the illegal aliens, first at a local hotel, and then at a house owned by a business of the defendant.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent- in-Charge, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Boston Gang Member Pleads Guilty to Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man affiliated with the Vine/Forest Street and Orchard Park gangs pleaded guilty today in federal court in Boston to illegally possessing a firearm and ammunition.
Quantae Elmore, 22, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 10, 2019. Elmore was arrested and charged federally in July 2018 and has been in custody since.
On May 4, 2018, police officers encountered Elmore with a loaded firearm in his waistband on Zeigler Street in the Orchard Gardens neighborhood, in the company of other Vine/Forest Street and Orchard Park gang members. Elmore had previously been convicted of a crime punishable by more than one year in prison and was therefore prohibited by federal law from possessing a firearm and ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Beaver Falls Drug Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
PITTSBURGH, PA - A resident of Beaver County has been sentenced in federal court to five years’ imprisonment and four years of supervised release on his conviction of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Donavan McFrazier, 31, of Beaver Falls, Pennsylvania.
According to information presented to the court, on or about July 9, 2018, McFrazier possessed with intent to distribute a quantity of cocaine and cocaine base and 40 grams or more of fentanyl, all Schedule II controlled substances.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictments in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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.
Bay City Vascular Surgeon Charged in Connection with $60 Million Health Care Fraud & Laundering More Than $49 Million Government Seeks Forfeiture of Approximately $39.9 Million Seized from DefendantRead the Press Release
An indictment unsealed today charges Dr. Vasso Godiali, age 56, vascular surgeon, with orchestrating a $60 million health care fraud scheme. Dr. Godiali is also charged with money laundering, for financial transactions involving approximately $49 million in proceeds he derived from the scheme. The indictment was announced by United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Michigan Attorney General Dana Nessel, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
According to the Indictment, Godiali submitted false and fraudulent claims for the placement of stents in dialysis patients and for the treatment of arterial blood clots. The indictment further alleges that Godiali exploited medical billing software to improperly maximize payments from Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. The indictment further alleges Godiali submitted false and fraudulent claims to Medicaid, Medicare, and Blue Cross for services not rendered and that he “unbundled” claims by exploiting modifier-59 to falsely claim he was performing many separate and distinct procedures, when in fact he was entitled to a single reimbursement for a single procedure.
The indictment further alleges that Godiali utilized six corporations through which he laundered approximately $49 million, which he ultimately used to fund investment accounts at multiple financial institutions. In addition, the Indictment alleges that he engaged in money laundering by using proceeds from his scheme to pay property taxes on a Houghton Lake, Michigan, residence.
"This is a large, significant and important prosecution. Health care fraud schemes, such as the one alleged to have been committed by Dr. Godiali, divert millions of dollars from public programs intended to help those in need for the sole purpose of lining the pockets of greedy doctors,” stated United States Attorney Matthew Schneider. “I salute Attorney General Dana Nessel and her staff, along with the entire law enforcement team that labored so tirelessly on this case. The work that culminated in to today’s indictment demonstrates cooperation and teamwork at its best.”
“Flagrant efforts to scam Medicare, Medicaid and Blue Cross Blue Shield of Michigan are despicable in any degree—but particularly so when tens of millions of dollars are involved. Thanks to United States Attorney Matthew Schneider and his team along with the efforts of our own Health Care Fraud Unit and the Michigan Department of Health and Human Services Office of Inspector General staff, which initiated the early investigation into this alleged health care fraud scheme, it has come to a halt,” said Michigan Attorney General Dana Nessel. “Once it became clear that the potential Medicare fraud exposure in this case was ten times what our own Medicaid fraud exposure was, we reached out to the U.S. Attorney’s Office to increase the depth and breadth of the investigation. I am proud of the efforts of everyone involved and look forward to making sure this doctor never sees another dime of taxpayer money.”
“Today’s indictment proves the collective resources of law enforcement and the private sector can successfully combat fraud in our health care system,” said Special Agent in Charge Slater. “Fraud schemes of this type cost tax payers billions of dollars each year and remain a top investigative priority of the FBI, HHS, and insurance companies across the country.”
“Healthcare fraud impacts everyone. The submission of false and fraudulent claims drives up the cost of healthcare and wastes vital taxpayer dollars”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General. “The OIG will continue to work with our federal, state, and private sector partners to identify fraud schemes and hold parties that execute these schemes accountable.”
The United States Attorney’s Office also filed a related civil lawsuit seeking the forfeiture of approximately $39.9 million seized from accounts controlled by the defendant or related to four separate real estate transactions.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
If convicted of a health care fraud charge, the defendant faces a maximum sentence of imprisonment of ten years, and a maximum fine of $250,000 on each count. If convicted of money laundering, the defendant faces a maximum sentence of twenty years of imprisonment, and a maximum fine of twice the amount laundered.
The case was investigated by Special Agents of the HHS and FBI, with cooperation and assistance from the Michigan Attorney General’s Office, Michigan Department of Health and Human Services - Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorneys Craig F. Wininger and Philip A. Ross.
Bay Area Man Sentenced to 10 Years in Prison for Methamphetamine Conspiracy and Possessing Firearms as A FelonRead the Press Release
SAN FRANCISCO –Michael Mauricio was sentenced to 120 months of imprisonment today for conspiring to distribute methamphetamine and being a felon in possession of a firearm announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree. The sentence was handed down today by the Hon. Charles R. Breyer, United States District Judge. Judge Breyer also sentenced Mauricio to a 5-year term of supervised release.
Mauricio pleaded guilty to the charges on April 24, 2019. According to his plea agreement, Mauricio admitted the he and a co-conspirator distributed methamphetamine and guns in the San Francisco Bay Area. Mauricio attempt to avoid detection from law enforcement by using a co-conspirator to enter into transactions for him. For example, on November 1, 2018, Mauricio gave his co-conspirator 98 grams of methamphetamine and a handgun to sell to a customer. Similarly, on November 8, 2018, Mauricio gave 170 grams of methamphetamine to his co-conspirator to sell to a customer and on December 6, 2018, Mauricio gave his co-conspirator 226 grams of methamphetamine and several guns to sell to a customer. Mauricio also admitted he was a convicted felon, which made his mere possession of the firearms illegal.
On April 23, 2019, Mauricio was charged by superseding information with one count of conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(b)(1)(B)(viii), and two counts of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Mauricio pleaded guilty to all three counts.
Assistant United States Attorney Neal C. Hong prosecuted the case with the assistance of Linda Love. The prosecution is the result of an investigation by the ATF and the San Mateo County Police Department.
Aptos Babysitter Sentenced to 30 Years in Prison for Production of Child Pornography, Conspiracy to Distribute Child PornographyRead the Press Release
SAN FRANCISCO - Ryan Michael Spencer was sentenced to 360 months in prison for production of child pornography, conspiracy to distribute and receive child pornography, and related charges, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down today by the Hon. Charles R. Breyer, United States District Judge.
Spencer, 21, of Aptos, pleaded guilty to the charges on October 10, 2018. According to papers filed publicly in the case, the FBI began investigating after a witness reported to law enforcement that Spencer’s co-defendant, Bryan Petersen of Tiburon, had child pornography on his computer and in a Dropbox account. After executing a search warrant at Petersen’s residence, the FBI learned that Petersen had received thousands of images and videos containing child pornography from Spencer. The FBI also learned that the two men worked with children—Petersen as a babysitter, chess coach, and tutor in Tiburon and Spencer as a babysitter, camp counselor, and teacher-in-training in Aptos—and that they had been taking and exchanging pornographic images children entrusted to their care.
Further investigation revealed that, on several occasions, Spencer had molested at least two of the children he had babysat, including by raping one boy who was less than 10 years old at the time.
When the FBI executed a search warrant at Spencer’s residence in April 2017, several of the seized devices were encrypted and/or password-protected. United States Magistrate Judge Jacqueline Scott Corley ordered Spencer to decrypt the devices and Judge Breyer affirmed the magistrate judge’s order in April 2018. After Spencer continued to refuse to enter his passwords, the Court held Spencer in civil contempt and fined him $1,000 per day until he decrypted the devices. Spencer agreed to decrypt his devices twenty-two days after being held in civil contempt.
Spencer’s external hard drive contained tens of thousands of images and videos of child pornography downloaded from the internet. Further, his iPhone contained thousands more images of child pornography, including at least some of the child pornography Spencer had created himself. These images included dozens, and sometimes hundreds, of images of children’s genitalia that appeared to have been taken surreptitiously as boys—some as young as four or five—were attempting to change their clothes in camp cabins, pool locker rooms, and other locations. The iPhone also contained images of Spencer molesting one minor.
On May 31, 2018, a federal grand jury returned a superseding indictment charging Spencer with conspiracy to distribute and receive child pornography in violation of 18 U.S.C. § 2252(a)(2) and (b)(1), two counts of production of child pornography in violation of 18 U.S.C. § 2251(a), two counts of distribution of child pornography in violation of 18 U.S.C. § 2252(a)(2), receipt of child pornography in violation of 18 U.S.C. § 2252(a)(2), and possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B). The superseding indictment also contained a criminal contempt charge based on Spencer’s refusal to comply with the Court’s decryption order.
In addition to the 30-year prison term, Judge Breyer imposed a 15-year term of supervised release and ordered Spencer to pay restitution to the victims in an amount to be determined at a later hearing.
On July 25, 2017, Petersen was charged by information with the same charges, except the contempt-of-court charge. On July 28, 2017, he pleaded guilty to all the charges pending against him. Judge Breyer has scheduled his sentencing for August 21, 2019.
Assistant U.S. Attorney Julie D. Garcia is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
74-Year-Old Lapwai Man Sentenced to 46 Months for AssaultRead the Press Release
COEUR D'ALENE – Otto Mark Homan, 74, of Lapwai, Idaho, was sentenced yesterday to 46 months in federal prison for assault with a dangerous weapon and assault resulting in serious bodily injury, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge David C. Nye also ordered Homan to serve three years supervised release after he is finished serving his prison term. Homan was indicted by a federal grand jury on October 16, 2018.
According to court records, Homan walked to his neighbor’s house. He attacked the victim with a hammer/axe by hitting him once in the head. Homan then left. Homan, who was intoxicated at the time, mistakenly believed the victim had stolen his television. The victim suffered life-threatening injuries and spent over three months in various medical care facilities.
This case was investigated by the Federal Bureau of Investigation and the Nez Perce Tribal Police.
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Tuesday 9 July 2019
Webster City Doctor Pleads Guilty to Making False Statements about Medicare ClaimsRead the Press Release
A Webster City doctor who made false statements to the United States Attorney’s Office about Medicare claims that the doctor had billed for his nursing home patients pled guilty today in federal court in Cedar Rapids.
Dr. Joseph X. Latella, age 76, from Webster City, Iowa, was convicted of one count of making false statements relating to health care matters. At the time of the offense, Dr. Latella operated a private practice in Webster City, and he also was the Hamilton County Coroner and the medical director for multiple nursing homes in the Webster City area.
Dr. Latella admitted in a plea agreement that, in June 2018, the United States Attorney for the Northern District of Iowa was conducting a civil investigation about concerns that Dr. Latella was “upcoding” claims submitted to Medicare and Medicaid and billing for more intensive visits with patients at Webster City area nursing homes than he had performed. The United States Attorney’s investigation indicated that Dr. Latella was billing over 93% of his nursing home visits to Medicare under the most intensive and expensive claim code. For these claims to be valid, a doctor typically must spend 35 minutes at the patient’s bedside and on the patient’s facility floor or unit. Medicare paid more than $94 for these claims, but would only have paid no more than $32 if the least expensive claim code, for routine ten minute visits, had been billed. In July 2016, a Medicare contractor sent Dr. Latella a letter warning him that his billing patterns were significantly more expensive than other doctors.
In July 2018, Dr. Latella submitted sworn written answers to the United States Attorney, in which Dr. Latella falsely declared that, with respect to certain Medicare claims in 2017 and 2018, he had spent approximately 35 minutes for each of 12 patients’ care at two nursing homes. With respect to one particular date in October 2017, Dr. Latella falsely swore he “started visiting the nursing home patients at 7:30 a.m. and completed my visits with each patient at approximately 5:30 p.m.” In truth, a federal agent had conducted in-person surveillance of Dr. Latella on that date, and Dr. Latella only was on site at the first nursing home for a total of 47 minutes and did not visit the second nursing home at all on that date. The administrator of the first nursing home estimated that Dr. Latella spent approximately five minutes with each nursing home patient during his visits to that nursing home.
Dr. Latella made further false statements about claims in January and February 2018, which the Medicaid Fraud Control Unit discovered through videotaped surveillance. For example, Dr. Latella billed nine claims for services allegedly provided to nine Medicare patients, on February 2, 2018, at a nursing home, but the surveillance showed that Dr. Latella was only on site at the nursing home for a total of 14 minutes.
In total, Dr. Latella admitted that, between January 1, 2014, and November 30, 2018, he submitted 1,140 false claims to Medicare, which were not justified, and he was paid $107,980.59 by Medicare for those claims. Dr. Latella also admitted that he caused Medicaid to make unjustified payments in the total amount of $9,218.73 for these claims. As a part of his plea agreement, Dr. Latella has agreed to pay no less than $107,980.59 to Medicare and $9,218.73 to Medicaid for economic losses caused by his commission of the offense.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Dr. Latella remains free on bond pending sentencing. Dr. Latella faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Department of Health and Human Services, Office of the Inspector General, and the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-3030.
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U.S. Attorney to Join Federal, State, and Local Law Enforcement for Press Conference Tomorrow at 3:00 p.m.Read the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that a press conference will be held tomorrow, Wednesday, July 10, 2019, at 3:00 p.m., at the North Charleston Police Department Headquarters/City Hall, 2500 City Hall Lane, North Charleston, South Carolina, 29406.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina, Federal Bureau of Investigation, South Carolina Law Enforcement Division, Charleston Police Department, North Charleston Police Department, Mount Pleasant Police Department, Charleston County Sheriff’s Office, and Berkeley County Sheriff’s Office.
WHEN: Wednesday, July 10, 2019, at 3:00 p.m.
WHERE: North Charleston Police Department Headquarters/City Hall
2500 City Hall Lane
North Charleston, SC 29406
NOTE: Press inquiries regarding logistics should be directed to Lance Crick, 864-282-2105. All media must present a government-issued photo ID (such as a driver’s license). Members of the media wishing to attend the remarks should gather in the atrium of the City Hall complex at 2:30 p.m., 30 minutes in advance.
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Two Tennessee Men Sentenced for Possession of Counterfeit ObligationsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Antwaun Anglin, age 39, of Nashville, Tennessee; and Christopher Marquis Rodgers, age 20, of Humboldt, Tennessee, were sentenced to 15 months’ imprisonment and 3 years’ supervised release, and 13 months’ imprisonment and 3 years’ supervised release, respectively. for Possession Of Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Sections 474(a) and 2. Rodgers was additionally sentenced for Uttering Counterfeiting Obligation of the United States, in violation of Title 18, United States Code, Sections 472 and 2. The charges arose from an investigation by the Atoka Police Department, the Caney Police Department, and the United States Secret Service.
The Indictment alleged that on September 13, 2018, the Defendants knowingly had in their possession and custody, with intent to sell or otherwise use, approximately 578 falsely made and counterfeited twenty-dollar Federal Reserve Notes, Series 2013, Serial No. MK12783752B, Quadrant # 4, Face Plate 28, Back Plate 22, Federal Reserve Bank K11, made after the similitude of obligations issued under the authority of the United States, in violation of Title 18, United States Code, Sections 474(a) and 2.
The Indictment also alleged that Christopher Marquis Rodgers, with intent to defraud, passed to Sonic Drive-In, located in Atoka, a falsely made, forged and counterfeited obligation of the United States, a Federal Reserve Note in the denomination of twenty dollars, Series of 2013, Serial No. MK12783752B, which he then knew to be falsely made, forged and counterfeited, in violation of Title 18, United States Code, Sections 472 and 2.
The investigation leading to the indictment and sentencing of Anglin and Rodgers began when an alert citizen noticed the money she received had an unusual appearance. She promptly called the Atoka Police Department to report the suspected counterfeit currency and describe the vehicle and the occupants involved. The Caney Police Department located the vehicle and occupants and Atoka Police conducted the investigation. Counterfeited twenty-dollar bill were located in the vehicle. The United States Secret Service assisted in the investigation.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.Two Individuals Sentenced for Roles in Distributing MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kevin Ruany Grijalva-Soto, age 29, and Leslie Azucena Rubio-Rodriguez, age 28, were sentenced to 135 months’ imprisonment and 3 years’ supervised release, and 58 months’ imprisonment and 3 years’ supervised release, respectively, for Possession With Intent To Distribute Methamphetamine. The charges arose from an investigation by the Oklahoma Highway Patrol (OHP) and the Drug Enforcement Administration.
The Indictment alleged that on or about September 18, 2018 the defendants knowingly and intentionally possessed with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. The investigation began when an Oklahoma Highway Patrol Trooper working in Sequoyah County stopped the vehicle occupied by the defendants. An OHP canine alerted, indicating the presence of controlled dangerous substances. The search that followed revealed approximately eleven pounds of methamphetamine.
United States Attorney Brian J. Kuester said, “Tens of thousands of dosage units of methamphetamine – intended destination cities, towns, communities and homes - were stopped due to the diligent work of the Oklahoma Highway Patrol. Those in the business of distributing poison for profit, as these defendants, will continue to be aggressively pursued and the consequences as dictated by our laws will be imposed.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Twin Cities Coin Dealer Sentenced to 30 Months in Prison for Counterfeit Coin Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of BARRY RON SKOG, 68, to 30 months in prison for perpetrating a counterfeit coin fraud scheme. SKOG, who pleaded guilty on February 21, 2019, was sentenced earlier today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
“The Minnesota Department of Commerce is proud of our role in uncovering this counterfeit coin fraud scheme,” said Matt Vatter, Minnesota Department of Commerce Assistant Commissioner of Enforcement. “Every day, our investigators in the Commerce Fraud Bureau are working to protect Minnesotans against these types of schemes and fraudulent activities and ensure a business climate where legitimate businesses can serve the needs of our citizens.”
According to the defendant’s guilty plea and documents filed in court, SKOG owned and operated a business which engaged in advertising and selling numismatic coins. Through his business, SKOG posted advertisements for coins in a publication called Numismatic News. When potential buyers responded to the ads, SKOG would mail them lists of available coins for purchase, many of which were counterfeit. In his communications with the victims, SKOG would often represent himself as an employee named “Ron Peterson,” when, in fact, there were no other owners or employees of the company other than SKOG. In total, SKOG stole more than $57,000 from his identified victims. SKOG also intended to create additional loss by advertising for sale 275 additional counterfeit coins at an advertised sale value of approximately $235,000.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the Burnsville Police Department.
Based on the evidence obtained in this case, authorities believe there may be additional victims who have not yet been identified. Anyone with information about this matter is encouraged to call the Minnesota Commerce Fraud Bureau at 651-539-1617. Callers may remain anonymous.
Assistant U.S. Attorney Manda M. Sertich prosecuted the case.
Defendant Information:
BARRY RON SKOG, 68
Burnsville, Minn.
Convicted:
- Sale of counterfeit coins, 1 count
- Mail fraud, 1 count
Sentenced:
- 30 months in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tulsa Software Developer Pleads Guilty to Payroll Tax FraudRead the Press Release
A computer software development company owner pleaded guilty Monday to failing to account for and pay over employment taxes withheld from his employees’ wages announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to documents and information provided to the Court, as the owner and operator of Tulsa-based Zealcon Corporation, Earenest J. Grayson Jr. was responsible for withholding, accounting for and paying over to the Internal Revenue Service (IRS) payroll taxes and withholdings due on the wages paid to Zealcon employees. For the period, January 2014 through June of 2016. Grayson intentionally caused a total tax loss of more than $1 million by intentionally not paying to the IRS income, Social Security and Medicare taxes withheld from Zealcon employees’ wages and Social Security and Medicare taxes due from Zealcon on those wages.
“Failing to account for or pay payroll taxes is not acceptable.” said Principal Deputy Attorney General Zuckerman of the Justice Department’s Tax Division. “The Department of Justice, working with the IRS, will ensure that our tax system is fairly enforced throughout the country.”
“Earenest Grayson is a dishonest employer who cheated both his employees and the United States government of more than $1 million in stolen payroll taxes. Some of those taxes were payments for the Social Security and Medicare coverage of the employees,” said U.S. Attorney Trent Shores. “I hope Mr. Grayson’s potential prison sentence will dissuade other business owners from trying to cheat the system. Millions of honest small businesses pay their fair share of taxes to finance government operations as well as Social Security and Medicare for the elderly. Unfortunately, Mr. Grayson’s choice not to do so has subjected him to criminal penalties.”
United States District Court Judge Claire V. Eagan scheduled Grayson’s sentencing for Oct. 3, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorneys Victor A.S. Régal and Charles M. McLoughlin are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tulsa Man Sentenced for Six Armed Robberies as Part of Project Safe Neighborhoods ProsecutionRead the Press Release
United States Attorney Trent Shores announced that Treveon Montrell Vaughn, 27, of Tulsa, was sentenced in U.S. District Court for obstructing commerce by robbery and to brandishing a firearm during six different robberies at local donut and Dollar General stores.
Chief U.S. District Judge John E. Dowdell sentenced Vaughn to 319 months in federal prison and further ordered him to pay restitution to the businesses in the amount of $60,000.
“Treveon Vaughn was a gun-toting serial armed robber whose crime spree was brought to an end by dedicated police work and diligent prosecution. Vaughn also admitted to influencing juveniles to participate in his criminal transgressions. Alpha Criminals like Vaughn are exactly who Project Safe Neighborhoods was designed to identify and hold accountable,” said U.S. Attorney Trent Shores “No longer will Vaughn be able to corrupt youths in our community nor violently rob our local businesses.”
Vaughn committed six armed robberies between June 24, 2018, and August 17, 2018, and at one point committed three robberies in one day. In each of the robberies, Vaughn wore a mask and brandished a firearm, threatening store employees and stealing cash from registers. Vaughn’s crime spree ended when Tulsa police officers were called to the scene of a robbery in progress at a Dollar General store on August 17, 2018, and Vaughn became trapped inside the store. At one point during the resulting stand-off with officers, the defendant started a small fire, trying to destroy evidence. He eventually surrendered and was taken into custody. He eventually admitted to influencing and leading a group of juveniles into his criminal activity, stating they would do anything for money.
The Tulsa Police Department and the FBI conducted the investigation. Assistant U.S. Attorney Ryan Roberts prosecuted the case.
This prosecution is a result of the Project Safe Neighborhoods (PSN) initiative. PSN was reinvigorated in 2017 as part of the Justice Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership the local community and with federal, state, local and tribal law enforcement to develop effective, locally-based strategies to reduce violent crime.
Toledo man sentenced to more than 14 years in prison for selling heroin that resulted in the fatal overdose of two womenRead the Press Release
A Toledo man was sentenced to more than 14 years in prison for selling heroin that resulted in the fatal overdose of two women.
Harold Sasse, 42, previously pleaded guilty to possession with intent to distribute a controlled substance resulting in death. He was sentenced to 174 months in federal prison and ordered to pay $13,600 in restitution.
Sasse sold heroin on March 29, 2017 to two people, identified in court documents as E.M. and T.W. Sometime between that day and March 30, 2017, the women ingested the heroin and died, according to court documents.
“Every death represents someone’s son or daughter, friend or neighbor,” said U.S. Attorney Justin Herdman. “This prison sentence of more than 14 years shows that those who profit from this drug epidemic will be held accountable for their actions.”
"Overdoses have killed far too many Americans,” said FBI Special Agent in Charge Eric B. Smith. “The FBI, in collaboration with the Toledo Police Department, is avidly committed to holding those like Harold Sasse accountable for selling the deadly drugs which are killing our fellow citizens."
This case was investigated by the Federal Bureau of Investigation and the Toledo Police Department. It is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
Three Members of a Pike County Family Sentenced for Cocaine Trafficking ConspiracyRead the Press Release
PIKEVILLE, Ky. — Three members of a Pike County family have been sentence to federal prison for their involvement in a conspiracy to distribute cocaine in Pike County. On Monday, United States District Judge Robert E. Wier sentenced Roy Blankenship to 85 months in prison. Today, Blankenship’s wife, Shirley Blankenship, and his brother, Larry Blankenship, were sentenced to 34 and 33 months, respectively.
Each of the Blankenships pled guilty to the cocaine trafficking charges in March of 2019. The FBI’s investigation revealed that between 2010 and 2018, the Blankenships regularly obtained cocaine from out of state and sold it in the Stopover community of Pike County. This conviction marks the fourth federal felony conviction for Roy Blankenship, including a prior felony conviction related to cocaine trafficking.
Under federal law, the Blankenships must serve 85 percent of their prison sentences. Upon their release, the Blankenships will be under the supervision of the United States Probation Office.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Federal Bureau of Investigation Special Agent in Charge for the Louisville Field Division; Richard Sanders, Kentucky State Police Commissioner; and Christopher Edmonds, Chief of the Pikeville Police Department jointly made the announcement. The United States was represented by Assistant United States Attorney Andrew H. Trimble.
Three Massachusetts Men Charged with Bank Fraud ConspiracyRead the Press Release
BOSTON – Three Massachusetts men were charged today in federal court in Boston in connection with schemes to use false identification documents to obtain funds from bank customers’ accounts.
Lindsley J. Georges, 26, and Dave Guillaume, 23, both of Everett, and Fesnel Lafortune, 30, of Milton, were each charged with one count of conspiracy to commit bank fraud. The defendants were arrested this morning and made an initial appearance in federal court in Boston.
According to the complaint charging Georges and Guillaume, in December 2017 and January 2018, two unindicted co-conspirators obtained four bank checks totaling nearly $800,000 from two Santander Bank customers’ accounts. Two other co-conspirators obtained two bank checks totaling more than $330,000 from a TD Bank customer’s account, by representing that they were the customers. It is alleged that Georges deposited two of the fraudulently-obtained Santander Bank checks into a business bank account he controlled, and thereafter withdrew about $200,000 in six cash withdrawals at six different bank branch offices. Guillaume deposited one of the fraudulently-obtained Santander Bank checks to a business bank account he had opened using a fake name. It is alleged that Guillaume thereafter withdrew about $46,000 in cash in five transactions at four different bank branches. Georges and Guillaume also each deposited one of the fraudulently-obtained TD Bank checks to a business bank account that Guillaume had opened using a fake name and driver’s license.
According to the complaint charging Lafortune, in April 2017, another unindicted co-conspirator obtained two bank checks totaling more than $340,000 from a Santander Bank customer’s account, using a fraudulent passport and credit card in the customer’s name. Lafortune deposited one of the checks in the amount of $175,500 to a business bank account he had opened using a false name, date of birth and Social Security number. Within days of depositing the check, Lafortune withdrew nearly $30,000 in cash in three transactions at three different bank branches.
The charge of conspiracy to commit bank fraud carries a sentence of no greater than 30 years in prison, up to five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys Leslie A. Wright and Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Convicted of Traveling to Engage in Sexual Activity with MinorsRead the Press Release
FRANKFORT, Ky. - A Texas man was convicted in federal court, on July 3, 2019, following a three day jury trial, for crossing a state line to engage in sexual acts with minors who had not attained the age of 12. Gregory Lee Hruby, of Brazoria, Texas, faces a mandatory minimum sentence of 360 months (30 years) on each of two counts of traveling across a state line to engage in a sexual act with a person under the age of 12. He also faces a potential twenty-year sentence for possession of visual depictions of minors engaging in sexually explicit conduct.
According to trial testimony, Hruby communicated with an undercover law enforcement agent, who responded to a post that Hruby had placed on the Whisper Application. In the communications, the undercover officer portrayed herself as the mother of 9 and 11 year-old daughters, who she was willing to permit Hruby to “teach how to be a woman.” Hruby engaged in text and telephone conversations with the undercover officer in which he indicated his interest in engaging in sexual intercourse with the fictitious minors. Hruby was arrested after law enforcement officers met him at the airport in Lexington, on October 19, 2018, following his arrival on a flight from Houston, Texas. Hruby also had child pornography images on his cell phone.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security – Homeland Security Investigations (DHS-HSI); and Kentucky Attorney General Andy Beshear jointly announced the verdict.
The investigation was conducted by DHS-HSI and the Cyber Crimes Branch of the Office of the Attorney General of Kentucky. Assistant U.S. Attorneys David A. Marye and Tashena A. Fannin represented the federal government in the case.
Substance Abuse Treatment Center Owner Pleads Guilty to $57 Million Money Laundering Conspiracy in Connection with Hospital Pass-Through Billing SchemeRead the Press Release
The owner of a Jacksonville, Florida-area substance abuse treatment center pleaded guilty today for his role in a $57 million money laundering conspiracy associated with a pass-through billing scheme involving laboratory testing services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office, Deputy Assistant Inspector General Thomas W. South of the U.S. Office of Personnel Management-Office of Inspector General (OPM-OIG), Special Agent in Charge Rafiq Ahmad of the U.S. Department of Labor-Office of Inspector General (DOL-OIG) and Special Agent in Charge Basil P. Demczak of the Amtrak Office of Inspector General (Amtrak-OIG) made the announcement.
Kyle Ryan Marcotte, 36, of Jacksonville Beach, Florida, pleaded guilty before U.S. Magistrate Judge Joel Toomey of the Middle District of Florida to a one-count information charging him with conspiracy to commit money laundering. As part of his guilty plea, Marcotte agreed to a forfeiture judgment of $10,220,281.42. Sentencing before U.S. District Judge Timothy Corrigan of the Middle District of Florida has not yet been scheduled.
According to admissions made as part of his guilty plea, Marcotte was the owner of a substance abuse treatment facility in Jacksonville Beach, Florida. In approximately 2015, Marcotte entered into an arrangement with a laboratory owner to send urine samples for the facility’s patients to the owner’s lab for urine drug testing (UDT), in exchange for receiving 40 percent of the insurance reimbursements. The lab owner, in turn, arranged with the managers of Campbellton–Graceville Hospital (CGH) and Regional General Hospital Williston (RGH), rural hospitals in Florida, to have the testing billed to private insurers through CGH and RGH and reimbursed at favorable rates under the hospitals’ in-network contracts with insurers. Marcotte also admitted that he brokered deals with other substance abuse treatment centers to have their UDTs billed through CGH and RGH in exchange for Marcotte receiving 10 percent of the insurance reimbursements, while the other substance abuse facilities would receive 30 percent of the insurance reimbursements.
The lab owner subsequently acquired Chestatee Hospital, in Dahlonega, Georgia, and other rural hospitals. Marcotte admitted that he continued to supply samples from his substance abuse treatment facility and continued to broker deals with other substance abuse treatment centers to have UDTs tested at the lab and billed to insurers through Chestatee and the other hospitals, all in exchange for a percentage of the insurance reimbursements. The reimbursements were transmitted from the hospitals to the lab, which then transmitted them to two companies Marcotte controlled, North Florida Labs and KTL Labs using financial transactions and bank accounts that Marcotte had established to facilitate the payments. Marcotte arranged to transfer a portion of the reimbursements from KTL Labs as kickbacks to the individuals and companies that controlled the substance abuse treatment centers in order to further the fraudulent scheme. Marcotte also transferred a portion of the reimbursements to himself and to purchase real estate and items of real property, he admitted.
Marcotte caused $50 million in payments to be made from KTL Labs’ bank accounts to at least 88 companies and individuals associated with substance abuse treatment centers that supplied urine samples for testing. The total amount of money that was part of the money laundering scheme was $57.3 million, Marcotte admitted.
The case was investigated by the FBI, OPM-OIG, DOL-OIG and Amtrak OIG. Trial Attorneys Gary A. Winters and James V. Hayes of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tysen Duva of the Middle District of Florida are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Substance Abuse Treatment Center Owner Pleads Guilty to $57 Million Money Laundering Conspiracy in Connection with Hospital Pass-Through Billing SchemeRead the Press Release
Jacksonville, FL – The owner of a Jacksonville, Florida-area substance abuse treatment center pleaded guilty today for his role in a $57 million money laundering conspiracy associated with a pass-through billing scheme involving laboratory testing services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office, Deputy Assistant Inspector General Thomas W. South of the U.S. Office of Personnel Management-Office of Inspector General (OPM-OIG), Special Agent in Charge Rafiq Ahmad of the U.S. Department of Labor-Office of Inspector General (DOL-OIG) and Special Agent in Charge Basil P. Demczak of the Amtrak Office of Inspector General (Amtrak-OIG) made the announcement.
Kyle Ryan Marcotte, 36, of Jacksonville Beach, Florida, pleaded guilty before U.S. Magistrate Judge Joel Toomey of the Middle District of Florida to a one-count information charging him with conspiracy to commit money laundering. As part of his guilty plea, Marcotte agreed to a forfeiture judgment of $10,220,281.42. Sentencing before U.S. District Judge Timothy Corrigan of the Middle District of Florida has not yet been scheduled.
According to admissions made as part of his guilty plea, Marcotte was the owner of a substance abuse treatment facility in Jacksonville Beach, Florida. In approximately 2015, Marcotte entered into an arrangement with a laboratory owner to send urine samples for the facility’s patients to the owner’s lab for urine drug testing (UDT), in exchange for receiving 40 percent of the insurance reimbursements. The lab owner, in turn, arranged with the managers of Campbellton–Graceville Hospital (CGH) and Regional General Hospital Williston (RGH), rural hospitals in Florida, to have the testing billed to private insurers through CGH and RGH and reimbursed at favorable rates under the hospitals’ in-network contracts with insurers. Marcotte also admitted that he brokered deals with other substance abuse treatment centers to have their UDTs billed through CGH and RGH in exchange for Marcotte receiving 10 percent of the insurance reimbursements, while the other substance abuse facilities would receive 30 percent of the insurance reimbursements.
The lab owner subsequently acquired Chestatee Hospital, in Dahlonega, Georgia, and other rural hospitals. Marcotte admitted that he continued to supply samples from his substance abuse treatment facility and continued to broker deals with other substance abuse treatment centers to have UDTs tested at the lab and billed to insurers through Chestatee and the other hospitals, all in exchange for a percentage of the insurance reimbursements. The reimbursements were transmitted from the hospitals to the lab, which then transmitted them to two companies Marcotte controlled, North Florida Labs and KTL Labs using financial transactions and bank accounts that Marcotte had established to facilitate the payments. Marcotte arranged to transfer a portion of the reimbursements from KTL Labs as kickbacks to the individuals and companies that controlled the substance abuse treatment centers in order to further the fraudulent scheme. Marcotte also transferred a portion of the reimbursements to himself and to purchase real estate and items of real property, he admitted.
Marcotte caused $50 million in payments to be made from KTL Labs’ bank accounts to at least 88 companies and individuals associated with substance abuse treatment centers that supplied urine samples for testing. The total amount of money that was part of the money laundering scheme was $57.3 million, Marcotte admitted.
The case was investigated by the FBI, OPM-OIG, DOL-OIG and Amtrak OIG. Trial Attorneys Gary A. Winters and James V. Hayes of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tysen Duva of the Middle District of Florida are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
St. Mary’s County Drug Dealer Sentenced to 10 Years in Federal Prison for Distributing Fentanyl Resulting in a Victim’s DeathRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Matthew Joseph Lusby, age 46, of Mechanicsville, Maryland, to 10 years in federal prison, followed by three years of supervised release, for distribution of fentanyl. As a result of Lusby’s drug distribution, a victim died.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron.
“Federal, state, and local law enforcement are working together to arrest and prosecute those who peddle deadly fentanyl,” said U.S. Attorney Robert K. Hur. “Fentanyl is killing thousands of people each year in Maryland. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to Lusby’s plea agreement, on May 18, 2018, Lusby distributed fentanyl to Victim 1. Victim 1 was found unresponsive in his home on May 19, 2018, next to hypodermic needles and a small bag of powder that tested positive for fentanyl. Shortly thereafter, the Victim 1 was pronounced dead. The medical examiner determined that the cause of death was fentanyl and morphine intoxication. Phone records showed that Victim 1 had a 10-minute phone conversation with Lusby the day before he died. Law enforcement then began investigating Lusby for distributing heroin and fentanyl in Southern Maryland.
As detailed in his plea agreement, on August 16, 2018, a confidential informant working at the direction of law enforcement, purchased heroin from Lusby in Lusby’s home. On September 6, 2018, a search warrant was executed at Lusby’s residence and law enforcement recovered 14 grams of heroin mixed with fentanyl, 30.9 grams of pure fentanyl, drug packaging materials, four digital scales, several needles, and a credit card in Lusby’s name with heroin and fentanyl residue.
United States Attorney Robert K. Hur praised the DEA and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Jessica Collins, who prosecuted the case.
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St. Francis Woman Sentenced for Meth and Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on July 1, 2019, by U.S. District Judge Roberto A. Lange.
Rainbow Stoneman, age 37, was sentenced to 100 months in federal prison, 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Stoneman was indicted by a federal grand jury on December 11, 2018. She pled guilty on April 16, 2019.
The conviction stemmed from a drug conspiracy that occurred beginning no later than October 15, 2018, and continuing to November 2, 2018, in which Stoneman knowingly and intentionally conspired with her co-defendants to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in the District of South Dakota. Further, Stoneman was an unlawful user of and addicted to a controlled substance, which prohibited her from possessing firearms, and she was in possession of a firearm at the time of her arrest. At the time of her arrest, law enforcement recovered 256 grams of methamphetamine, scales, baggies and other drug trafficking items.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Stoneman was immediately turned over to the custody of the U.S. Marshals Service.
South Florida Man Pled Guilty to Access Device Fraud and Aggravated Identity Theft SchemeRead the Press Release
South Florida man pled guilty to identity theft scheme.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Bryan Pegues, Chief, Aventura Police Department, made the announcement.
Wensley Edmond, 30, pled guilty to one count of unauthorized access device fraud and one count of aggravated identity theft. According to court documents, on February 27, 2015, Aventura Police Department officers arrested Edmond and found credit cards and debit cards in other individuals’ names on Edmond’s person. Additionally, Aventura Police Department officers found prepaid card envelopes with the handwritten names of other individuals, six different debit cards with card numbers that matched income tax return refunds issued in other individuals’ names, an ATM receipt utilizing one of the aforementioned cards at a different bank location earlier that same day, and approximately $6,000 in cash, in Edmond’s car. The victims did not give anyone permission to use their personal identification information, to use cards in their name, or to withdraw money using the cards in their names.
Edmond is scheduled to be sentenced on September 12, 2019 at 11:30 a.m., before U.S. District Judge Joan A. Lenard. Edmond faces up to 12 years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI and the Aventura Police Department. The case is being prosecuted by Assistant U.S. Attorney Frederic Shadley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
San Diego Man Sentenced to 20 Years in Federal Prison for Bringing 68 Pounds of Methamphetamine and Fentanyl to Torrance HotelRead the Press Release
LOS ANGELES – A San Diego man has been sentenced to 240 months in federal prison on narcotics trafficking charges after getting caught at a Torrance hotel carrying two suitcases filled with 59 pounds of methamphetamine and nearly nine pounds of fentanyl.
Salvador Delrio, 46, was sentenced at a Monday hearing by United States District Judge Percy Anderson. Delrio pleaded guilty on April 25 to three felonies: possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition.
On September 5, 2018, Delrio walked into a hotel in Torrance with two suitcases that contained 26.8 kilograms (59.1 pounds) of methamphetamine and four kilograms (8.9 pounds) of the synthetic opioid fentanyl. Delrio was subsequently arrested at the hotel as part of a law enforcement operation and also was found to be carrying a loaded .45-caliber Colt firearm in his waistband.
Delrio’s criminal history includes felony convictions in California state court for possession of methamphetamine in 1993, transportation and sale of a controlled substance in 1995, unlawful taking of a vehicle in 1996, and carjacking in 2003, according to court documents.
This matter was investigated by the Drug Enforcement Administration.
This case is being prosecuted by Assistant United States Attorneys Kevin B. Reidy and Matthew J. Rosenbaum of the General Crimes Section.
Rochester Man Who Recruited Minor to Work as Prostitute Going to Prison for over 15 YearsRead 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 Michael Williams, 52, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to serve 188 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Melissa M. Marangola and Tiffany H. Lee, who handled the case, stated that between January and February 2012, the defendant enticed a minor victim (Victim 1), to engage in a commercial sex act. Williams recruited and enticed Victim 1 to live with him and to earn money working as a prostitute. Advertisements for Victim 1 were posted on Backpage.com. The investigation began when a family member saw an ad for Victim 1 online.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert, and the Monroe County District Attorney's Office, under the direction of District Attorney Sandra Doorley.
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Rochester Man Sentenced for Hacking Online Accounts of WomenRead 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 Justin Potts, 37, of Rochester, NY, who was convicted of transfer of a means of identification, was sentenced to three years’ probation by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between March 2015 and December 2016, the defendant gained unauthorized access to various women’s digital accounts, all of which were password protected. During this time period, Potts used his technical knowledge and password breaking software to harvest the usernames and passwords of more than 100 women’s online accounts including Facebook accounts, iCloud accounts, Gmail accounts, Yahoo accounts and Hotmail accounts. The defendant entered these accounts without permission of the owners and used this access to obtain their personal information and personal photographs. Potts saved the personal information of the various women on his electronic devices.
Investigators believe 150 victims were targeted as a result of the computer intrusion scheme orchestrated by Potts.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
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Rochester Man Pleads Guilty to Selling CocaineRead 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 Harold A. Rodriguez, 44, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possessing with intent to distribute and distributing cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that in 2017, law enforcement officers were alerted to the drug trafficking activities of the defendant. On January 25, 2018, Rodriguez sold approximately 64 grams of cocaine to an individual working with the Bureau of Alcohol, Tobacco, Firearms and Explosives in exchange for $2,700 in cash. In addition, Rodriguez sold a total of 63 grams of cocaine to the individual on two separate occasions between February 8 and March 15, 2018.
On April 20, 2019, the defendant was pulled over by a New York State Police Trooper on Route 490 in Rochester and arrested for Unlicensed Operation of a Motor Vehicle. During a search of the vehicle, the trooper found a Glock pistol and ammunition.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, and the New York State Police, under the direction of Major Eric Laughton.
Sentencing is scheduled for October 21, 2019, at 11:00 a.m. before Judge Geraci.
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Rochester Man Going to Prison on Drug and Gun Charges for 8 YearsRead 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 Emmanuel Madera, 29, of Rochester, NY, who was convicted of possession with intent to distribute cocaine and heroin, and being a felon in possession of firearms and ammunition, was sentenced to serve 96 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that the defendant was arrested on May 30, 2018, after police executed a search warrant at his Grape Street residence in Rochester. During the search, officers recovered approximately three grams of cocaine, three grams of heroin, $2,315 in cash, three handguns, a shotgun, and over 200 rounds of various ammunition. One of the handguns had a defaced serial number.
Previously, in 2016, Madera was convicted of Criminal Possession of a Controlled Substance in the Third Degree in Monroe County, and as a result of that conviction, he was legally prohibited from possessing a firearm.The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Rio Grande, Texas Man Sentenced to Life Imprisonment for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN – Rolando Lopez, 58, has been sentenced to life imprisonment on federal charges of conspiracy to distribute 50 grams or more of actual methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
This is the latest sentencing in a case involving multiple defendants including Saul Vega Flores, Virginia Torres, Ronald Lynn Parham, Daniel Ranger, Kennett Garrett, Tammy Ranger, Marcus Jones, and Xavier Demetrius James on charges of conspiracy to distribute methamphetamine.
According to information presented in court, the Drug Enforcement Administration (DEA) began an investigation into Rolando Lopez and his drug trafficking organization in March of 2017. Agents discovered that Lopez and other co-conspirators were trafficking in methamphetamine, heroin, marijuana and other illegal substances from Mexico to Tennessee. Investigators used "wiretaps" along with other surveillance, confidential sources, traffic stops, and search warrants to investigate this organization.
In April 2017, agents received information from a confidential informant regarding a home in Davidson County, Tennessee, where Lopez and his brother were conducting drug related activity. A search warrant was executed at the residence where over $500,000 in cash, a money counter, and a vacuum sealer were recovered. In November 2017, investigators through wiretap interceptions learned that Lopez arranged for a shipment of 20 kilograms of methamphetamine ice to be picked up by a co-conspirator in Atlanta, Georgia to be driven back to Tennessee. Investigators eventually seized the 20 kilograms of methamphetamine from this co-conspirator. In December 2017, investigators through wiretap interceptions and information received from confidential informants learned that Lopez was arranging a shipment of methamphetamine from Mexico to Tennessee.
The shipment was being transported by other co-conspirators in a 2004 Lincoln Navigator to the residence of a co-conspirator in the Western District of Tennessee, where the shipment was to be converted to powder form for distribution. Lopez directed other co-conspirators transporting the liquid methamphetamine to Tennessee to meet at the Days Inn, in West Memphis, Arkansas. Once the defendants began to transport the liquid methamphetamine into the Western District of Tennessee, investigators arranged for the Tennessee Highway Patrol to stop the Lincoln Navigator on Highway 51, in Obion County, Tennessee. During the search of the vehicle, agents discovered a large quantity of methamphetamine located in a hidden compartment. A DEA forensic laboratory examination revealed that the defendant and other co-conspirators were transporting 44.85 kilograms of 98% pure ice.
Lopez used other co-conspirators’ property located in the Western District of Tennessee to convert the liquid methamphetamine into a powdery substance. Lopez was held responsible for distributing 2,660,000 kilograms (converted drug weight) of methamphetamine within Tennessee. Lopez was obtaining the methamphetamine from a source in Mexico, where it was smuggled into the Western District. The United States argued that this was the largest drug trafficking organization known to be handled within the Western District.
U.S. Attorney D. Michael Dunavant said: "Drug trafficking offenses are at the root of some of the gravest problems facing our country. The ‘fruit’ of the drug plague is everywhere; it fills our jails, our courts, our streets, and our nurseries. Accordingly, given that drug dealers themselves sentence many individuals to a lifetime of addiction and dependency, a life sentence for repeatedly dealing large quantities of drugs is a just and proper punishment in this case."
"The Drug Enforcement Administration and our law enforcement partners remain committed to targeting interstate methamphetamine traffickers contributing to the nation’s drug crisis," said Brett R. Pritts, Assistant Special Agent in Charge of DEA’s Nashville District Office. "I commend our law enforcement partners and the prosecutors for their extraordinary efforts in this case."
On July 9, 2019, U.S. District Court Chief Judge Thomas Anderson sentenced Lopez to life in federal prison followed by 5 years supervised release.
This case was investigated by the Nashville, Jackson, Atlanta DEA offices, Tennessee Bureau of Investigation, 23rd Judicial Drug Task Force, Metro Nashville Police Department, Perry County Sheriff’s Office, Tennessee Highway Patrol, Lawrenceburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Jackson Police Department, Carroll County Sheriff’s Office, Madison County Sheriff’s Office, and Obion County Sheriff’s Office.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Richland Center Man Sentenced to 90 Months for Methamphetamine CrimeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Joshua Clarke, 31, Richland Center, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 90 months in federal prison, followed by a three-year term of supervised release, for possessing methamphetamine with intent to distribute. Clarke pleaded guilty to this charge on April 26, 2019.
On November 11, 2018, an officer from the Richland Center Police Department stopped a car for a traffic violation. While talking with the passenger, who officers subsequently identified as Clarke, they observed behavior indicative of someone high on methamphetamine. Officers arrested Clarke on an outstanding warrant. During a subsequent search, officers found 35 grams of methamphetamine on Clarke. Testing by the Drug Enforcement Administration showed the methamphetamine was 100% pure.
During sentencing, Judge Conley highlighted Clarke’s extensive criminal history, as well as the methamphetamine’s purity level. Judge Conley noted that Clarke saw the tremendous effect of the drug as a methamphetamine user, but still decided to sell it to members of the community.
The charge against Clarke was the result of an investigation conducted by the Richland Center Police Department, Richland County Sheriff’s Department, Richland County District Attorney’s Office, Wisconsin Department of Justice Division of Criminal Investigation, and Drug Enforcement Administration. The prosecution of the case has been handled by Special Assistant U.S. Attorney Chadwick M. Elgersma.
Richardson, Texas Man Sentenced to 24 Months for Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Raudy Acosta Fernandez, age 32, of Richardson, Texas, was sentenced to 2 years’ imprisonment and 1 year supervised release for Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The charge arose from an investigation by the Chickasaw Nation Lighthorse Police Department and the United States Secret Service.
The Superseding Indictment alleges that on or about March 21, 2018, in the Eastern District of Oklahoma, the defendant knowingly possessed, and used, without lawful authority, a means of identification of another person during and in relation to Conspiracy to Commit Wire Fraud. The conspiracy involved the use of credit card “skimming devices” placed on gas pumps by members of the conspiracy to steal credit card information, create credit cards with the information and then use those cards to receive cash at ATM’s.
“The use of skimming devices to steal credit card information is not a new trend, but the devices used today are more difficult to detect. There are precautions we should all take to protect our credit and bank card information from thieves using skimming devices. For example, before using a gas pump, make sure the panel is closed and doesn’t show signs of tampering. Many pumps now have a security seal. If the seal is broken, don’t use that pump,” United States Attorney Brian J. Kuester said. “Awareness that thieves are using this technology and exercising caution before using your credit card at the pump or at ATM’s are important to help us avoid being victims of this type of criminal scheme.”
“This investigation is a prime example of the Secret Service’s investigative mission; to protect the U.S. financial infrastructure by pursuing counterfeit and financial crimes investigations,” said Glenn Dennis, Special Agent in Charge of the Secret Service Oklahoma Field Office. “The Secret Service in alliance with State and Local law enforcement is dedicated to effectively identifying those victimizing our communities and bringing them to justice.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.Rhode Island Man Charged in Connection with Business Email Compromise Fraud Targeting Massachusetts LawyerRead the Press Release
BOSTON - A Rhode Island man was charged today in federal court in Boston in connection with a conspiracy to launder funds derived from Business Email Compromise (BEC) fraud schemes, including one that targeted a Dorchester real estate attorney.
Sayon Balogun a/k/a “Oshine,” 32, a dual citizen of the United States and Nigeria, was indicted on one count of money laundering conspiracy. Balogun was initially charged by criminal complaint on May 31, 2019, and arrested in Florida on June 10, 2019. He has been detained pending trial.
According to court documents, in January 2018, Balogun’s co-conspirators gained access to email accounts belonging to a Massachusetts attorney engaged in real estate closings. The co-conspirators then mimicked (spoofed) the real estate attorney’s email account and sent emails to a Massachusetts resident who was the purchaser in a legitimate real estate transaction. The spoofed emails directed the Massachusetts real-estate purchaser to wire transfer $531,981 (which the purchaser believed was for a legitimate real estate transaction) to a bank account held by a California woman. The California women then sent $60,000 to an account in the name of “David Tecum,” a fraudulent identity used by Oghenetchouwe Adegor Ederaine Jr., one of Balogun’s co-conspirators, who received fraud proceeds at Balogun’s direction. Ederaine has pleaded guilty to aggravated identity theft and money laundering conspiracy charges.
Balogun faces a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the funds laundered in the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. The Massachusetts U.S. Attorney’s Office would also like to acknowledge the assistance of the United States Attorney’s Office and the FBI for the Southern District of Florida. Assistant U.S. Attorneys David D’Addio and Amy Harman Burkart of Lelling’s Cybercrime Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Woman Charged with Methamphetamine OffensesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine, Aiding and Abetting Possession with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Methamphetamine.
Terri Paulhamus, age 38, was indicted on August 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on June 6, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than on or about October 26, 2016, and continuing to August 14, 2018, Paulhamus, knowingly and intentionally, conspired and agreed with persons to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine. The Indictment further alleges that on or about October 26, 2016, and October 14, 2017, Paulhamus aided and abetted possession with intent to distribute methamphetamine and possessed with intent to distribute methamphetamine, respectively.
The charges are merely accusations and Paulhamus is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Paulhamus was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Prison for Man who Illegally Entered U.S. After 4 DeportationsRead the Press Release
DAYTON – Edgar Ezequiel Ramos-Serrano, 33, was sentenced in U.S. District Court to 12 months in prison, followed by three years of supervised release, for being found in the United States subsequent to a felony conviction. Ramos-Serrano has been deported on four prior occasions, has been convicted of this same offense twice before, and will likely be deported once again following his prison sentence.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, ICE agents found Ramos-Serrano at the Montgomery County Jail on February 19 following his arrest on local traffic-related charges including driving without a license.
Ramos-Serrano, a citizen of Honduras, had been removed from the United States to Honduras in June 2005, July 2009, July 2010, and November 2013. Following the July 2009 removal, Ramos-Serrano returned illegally, was found in the Western District of Pennsylvania, was convicted there of Reentry of a Removed Alien, and was sentenced to “time served” (approximately 2 months). Ramos-Serrano returned illegally once again, and in November 2013, he was found in the Southern District of Ohio, convicted of the same offense, sentenced to time served (approximately five months), and deported. He returned illegally and was found and arrested in the Southern District of Ohio in February 2019.
Ramos-Serrano pleaded guilty in April 2019 to one count of illegal reentry. Following service of the one-year prison sentence, Ramos-Serrano will likely be deported to Honduras. Returning illegally during the three-year period of supervised release imposed will constitute a violation of the terms and conditions of his release and may lead to additional sanctions beyond another criminal prosecution.
“He was sentenced to time served for each of his two prior convictions, then deported, and each time he returned illegally” Glassman said. “This time he’s going to prison for more than just time served, a fair and just sentence which promotes respect for the law.”
U.S. Attorney Glassman commended the investigation by ICE, as well as First Assistant United States Attorney Vipal Patel, who is representing the United States in this case.
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Platinum Partners’ Founder and CIO Mark Nordlicht and Co-CIO David Levy Convicted of Defrauding Bondholders in a Multi-Million Dollar SchemeRead the Press Release
Mark Nordlicht, the founder and Chief Investment Officer of Platinum Partners L.P. (Platinum), and David Levy, the co-Chief Investment Officer of Platinum, were convicted today by a federal jury in the Eastern District of New York of securities fraud, securities fraud conspiracy and wire fraud conspiracy for their roles in defrauding the bondholders of Black Elk Energy (Black Elk), an oil company that was one of Platinum’s largest assets, by rigging a consent solicitation vote. The verdict followed a two-month trial before United States District Judge Brian M. Cogan.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.
“With today’s verdict, Nordlicht and Levy have been held accountable for deceiving bondholders to gain control of the remaining assets of a failing oil company to line their own pockets and those of close family and friends,” stated United States Attorney Donoghue. “This Office and our law enforcement partners remain unwavering in our commitment to unraveling complex fraud schemes and bringing perpetrators, like the defendants, to justice.” Mr. Donoghue thanked the Securities and Exchange Commission, New York Regional Office (SEC), for their significant cooperation and assistance during the investigation.
“The victims of this scheme paid the price for the crimes committed by Nordlicht and Levy,” stated FBI Assistant Director-in-Charge Sweeney. “Today, the tables have turned. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist, and that investors can continue to place their faith in our financial markets.”
“In this case the defendants devised a scheme to defraud bondholders and cheat them out of millions of dollars. Today’s verdict should be a warning for all the fraudsters out there: No matter how slick you think you are, liars, frauds and cheats never win,” stated USPIS Inspector-in-Charge Bartlett.
Platinum was a New York City-based hedge fund founded in 2003. The evidence at trial established that between approximately November 2011 and December 2016, Nordlicht and Levy, together with their co-conspirators, orchestrated a fraudulent scheme to defraud third-party holders of Black Elk’s publicly traded bonds (the bondholders) by diverting to Platinum the proceeds from the sale of the vast majority of Black Elk’s most lucrative oil fields even though the bondholders had priority over Platinum’s equity interests. To execute this scheme, in early 2014, Nordlicht, Levy and others caused Platinum to secretly purchase Black Elk bonds on the open market and gain control of $98 million of the $150 million of outstanding bonds. The bonds were then transferred through a number of related entities to conceal their ownership and control by Platinum. Nordlicht, Levy and their co-conspirators then rigged a consent solicitation vote to amend the Black Elk indenture so that the proceeds from the sale of Black Elk’s best assets would be paid to the preferred equity – which was held by Platinum and Platinum insiders – ahead of the other bondholders. Notably, non-Platinum related bondholders overwhelmingly voted against changing the indenture; one bondholder explained that to do so would constitute “giv[ing] up my rights and not get[ting] anything back for it,” which he characterized as “kind of stupid.”
After the rigged vote was complete, Nordlicht, Levy and their co-conspirators took millions of dollars from the asset sale for themselves, family members and friends, including approximately $7 million to Nordlicht’s father, approximately $250,000 to Levy and approximately $2 million to the brother of a co-conspirator.
Nordlicht, Levy and Joseph SanFilippo were acquitted of counts related to a separately charged scheme involving investors in the Platinum funds.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alicyn Cooley, David Pitluck, Lauren Elbert and Patrick Hein are in charge of the prosecution.
The Defendants:
MARK NORDLICHT
Age: 51
New Rochelle, New YorkDAVID LEVY
Age: 34
New York, New YorkOmaha Man Sentenced for Jewelry Store RobberyRead the Press Release
United States Attorney Joe Kelly announced that Chief U.S. District Judge John M. Gerrard sentenced Anwar A. Hunt, 37, today to 13 ½ years in federal prison to be followed by 5 years of supervised release. Hunt previously entered pleas of guilty to interference with commerce by robbery and brandishing a firearm during that robbery.
On March 23, 2018, at approximately 1:14 p.m., two armed men with gloves and masks entered the Sartor Hamann Jewelry Store, located at 2900 Pine Lake Road, Lincoln, Nebraska, and demanded people in the store to not move and to be quiet. One of the men smashed a watch case and the robbers left the store with 25 Rolex watches. One of the watches was equipped with a GPS tracker. Officers were able to locate Hunt, Joshua Dortch, the watches and other evidence tying them to the robbery within a short time.
Dortch is pending trial.
The Lincoln Police Department and the FBI Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives, are responsible for the investigation of the robbery.
Ohio Man Sentenced to Prison for 30 Months for Hate CrimeRead the Press Release
WASHINGTON – Izmir Koch, 34, of Huber Heights, Ohio, was sentenced today to 30 months in prison for beating a man he believed to be Jewish outside of a Cincinnati restaurant.
Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division; Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio; and Todd A. Wickerham, Special Agent in Charge, FBI Cincinnati Division, announced the sentence.
Koch was convicted after a trial on Dec. 17, 2018, of one count of violating the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act and one count of making a false statement to the FBI.
On Feb. 4, 2017, the Defendant and his companions were heard yelling “I want to kill all of the Jews” and “I want to stab the Jews” outside a Cincinnati restaurant. The victim represented to Koch that he was Jewish, after which Koch began punching and kicking him. A number of other people joined in the assault. The victim was left with a broken facial bone and bruised ribs. The victim was not in fact Jewish, but was with friends and family members who were.
After the incident, Koch, accompanied by his attorney, spoke voluntarily with the FBI. Koch falsely told the FBI that he was not involved in the assault and that he made no derogatory comments about Jews.
“Individuals should be able to live without fear of attack or intimidation based on their religious beliefs,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting hate crimes is a top priority for the Department of Justice and as this sentence today demonstrates, we will not back down from obtaining justice for victims of violence based on hate.”
“Hate-fueled violent crimes ripple through communities, making entire groups feel unsafe and unwelcome, spawning fear and anger,” U.S. Attorney Glassman said. “That is why investigating and prosecuting hate crimes is such a high priority. Every community – every person – is entitled to the equal protection of the laws.”
“The FBI aggressively investigates hate crime incidents and works closely with impacted communities,” stated FBI Cincinnati Special Agent in Charge Todd A. Wickerham. “Each day we strive to protect civil rights and hold accountable those who violate the rights of others.”
This case was investigated by the Cincinnati Division of the FBI. It was prosecuted by Assistant United States Attorney Megan Gaffney and Special Assistant U.S. Attorney Kelly Rossi of the Southern District of Ohio, and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
For more information about Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
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Ohio Man Sentenced to Prison for 30 Months for Hate CrimeRead the Press Release
Izmir Koch, 34, of Huber Heights, Ohio, was sentenced today to 30 months in prison for beating a man he believed to be Jewish outside of a Cincinnati restaurant.
Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division; Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio; and Todd A. Wickerham, Special Agent in Charge, FBI Cincinnati Division, announced the sentence.
Koch was convicted after a trial on Dec. 17, 2018, of one count of violating the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act and one count of making a false statement to the FBI.
On Feb. 4, 2017, the Defendant and his companions were heard yelling “I want to kill all of the Jews” and “I want to stab the Jews” outside a Cincinnati restaurant. The victim represented to Koch that he was Jewish, after which Koch began punching and kicking him. A number of other people joined in the assault. The victim was left with a broken facial bone and bruised ribs. The victim was not in fact Jewish, but was with friends and family members who were.
After the incident, Koch, accompanied by his attorney, spoke voluntarily with the FBI. Koch falsely told the FBI that he was not involved in the assault and that he made no derogatory comments about Jews.
“Individuals should be able to live without fear of attack or intimidation based on their religious beliefs,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting hate crimes is a top priority for the Department of Justice and as this sentence today demonstrates, we will not back down from obtaining justice for victims of violence based on hate.”
“Hate-fueled violent crimes ripple through communities, making entire groups feel unsafe and unwelcome, spawning fear and anger,” U.S. Attorney Glassman said. “That is why investigating and prosecuting hate crimes is such a high priority. Every community -- every person -- is entitled to the equal protection of the laws.”
"The FBI aggressively investigates hate crime incidents and works closely with impacted communities," stated FBI Cincinnati Special Agent in Charge Todd A. Wickerham. "Each day we strive to protect civil rights and hold accountable those who violate the rights of others."
This case was investigated by the Cincinnati Division of the FBI. It was prosecuted by Assistant United States Attorney Megan Gaffney of the Southern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
For more information about Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
North Branford Man Sentenced to 14 Years for Enticing Girls to Engage in Sexual Activity Through Online AppsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DANIEL FLEISCHAUER, 33, of North Branford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 168 months of imprisonment, followed by 10 years of supervised release, for enticing minors to engage in sexual activity online.
According to court documents and statements made in court, between approximately 2013 and 2017, Fleischauer communicated with minor females on internet applications, including Kik and Cypher. He met and befriended the minors online, developed friendships with them over time, and then exploited those friendships. At times, his communications with the minor females turned to sexual topics. During these communications, Fleischauer requested, and received, images and videos of minor females engaged in sexually explicit conduct. Fleischauer also sent sexually explicit images of himself to minor females. Fleischauer believed that one of the minors with whom he engaged in this conduct was under the age of 12.
Fleischauer has been detained since his arrest on December 13, 2017. On November 15, 2018, he pleaded guilty to one count of enticing a minor to engage in sexual activity.
This matter was investigated by the Connecticut Human Trafficking Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with the assistance of the Naugatuck Police Department, North Branford Police Department and Kik Interactive. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
New York Anesthesiologist Indicted for Alleged Role in Telemedicine Health Care Fraud ConspiracyRead the Press Release
A New York anesthesiologist was arraigned today on an indictment charging her for her role in an alleged telemedicine conspiracy to submit fraudulent claims to Medicare, Medicare Part D plans and private insurance plans.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Anna Steiner, also known as “Hanna Wasielewska,” 63, of Valatie, New York, was charged in an indictment filed in the Eastern District of New York with one count of conspiracy to commit health care fraud. Steiner was previously arrested on a complaint in April 2019.
According to the indictment, starting in approximately January 2015, Steiner participated in a health care fraud scheme in which she and others ordered and prescribed durable medical equipment (DME) and prescription drugs in connection with purported telemedicine services. As alleged in the indictment, however, Steiner and other providers signed prescriptions and order forms for DME and drugs that were not medically necessary and that were induced by kickbacks, and provided for beneficiaries whom Steiner and others had not examined and evaluated. Steiner, together with others, allegedly submitted or caused the submission of more than $7 million in claims to Medicare for DME on behalf of more than 3,000 beneficiaries; Medicare paid more than $3 million on those claims.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and HHS-OIG. Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Nebraska Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Nebraska woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Marcitta Connors, age 24, was indicted on September 11, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on May 8, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that beginning no later than January 1, 2015, continuing to September 11, 2018, Connors knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine.
The charge is merely an accusation and Connors is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Connors was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Monongalia County woman indicted for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Teresa Miller, of Morgantown, West Virginia, was indicted by a federal grand jury today for a firearms violation, United States Attorney Bill Powell announced.
Miller, age 45, is charged with one count of “Unlawful Possession of a Firearm.” Miller, having previously been convicted of a drug crime, is prohibited from having a firearm. Miller is accused of having a .380 caliber pistol and a .45 caliber pistol in July 2018 in Monongalia County.
Miller faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Morgantown Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mission Woman Sentenced for Misprision of a FelonRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Misprision of a Felon was sentenced on May 13, 2019, by U.S. District Judge Roberto A. Lange.
Sharlie Colombe, a/k/a Sharli Colombe, age 35, was sentenced to 3 years’ probation, ordered to pay restitution in the amount of $10,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Colombe was indicted by a federal grand jury on February 14, 2018, which was followed by a Superseding Information on February 19, 2019. She pled guilty to the Superseding Information on February 19, 2019.
The conviction stemmed from an incident that occurred between February 4, 2011, through June 6, 2017, where Co-Defendant Mark O’Leary passed at least 544 checks drawn on a bank account belonging to the victim. The checks were used for personal items for O’Leary and the purchases were not authorized by the owner of the bank account. Colombe knew of O’Leary’s activities, helping him to cash some of the checks and did not report it to law enforcement.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Mission Man Acquitted on Ammunition ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man was acquitted of Possession of Ammunition by a Felon as a result of a federal jury trial in Pierre, South Dakota, on June 5 and June 6, 2019.
Aaron Santistevan, age 43, was indicted by a federal grand jury on February 13, 2019, and a Superseding Indictment was filed on May 14, 2019.
The charge relates to the allegation that on December 28, 2018, Santistevan, having been previously convicted of a crime punishable by imprisonment for more than one year, possessed 40 rounds of copper-jacketed, hollow point .50 Action Express caliber handgun ammunition.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services and the U.S. Attorney's Office prosecuted the case.
Midland Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Midland, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 8, 2019, by U.S. District Judge Roberto A. Lange.
Angelica Dolloff, age 31, was sentenced to 60 months in federal prison, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Dolloff was indicted by a federal grand jury on June 12, 2018. She pled guilty on February 20, 2019.
The conviction stemmed from a methamphetamine trafficking conspiracy that occurred between June 1, 2013, and continued through June 12, 2018, wherein Dolloff knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute between 500 grams and 1.5 kilograms of methamphetamine. When arrested, Dolloff was unlawfully in possession of .40 caliber pistol ammunition.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails
Drug Enforcement Task Force and the South Dakota Division of Criminal Investigation. Assistant U.S. Meghan N. Dilges prosecuted the case.
Dolloff was released on conditions pending placement at a Bureau of Prisons facility to begin serving her custody sentence.
Mexican Citizen Pleads Guilty to Firearms and Illegal Re-entry ChargesRead the Press Release
A Mexican citizen unlawfully living in Tulsa pleaded guilty Tuesday to being an alien unlawfully in the United States in possession of a firearm and ammunition and to reentry of a removed alien, announced U.S. Attorney Trent Shores.
Edgar Raul Sanchez-Miranda, 42, also known as Raul Sanchez-Sanchez, was convicted of being an alien unlawfully in the United States in possession of a Lorcin .380 caliber semi-automatic pistol and associated ammunition. Sanchez-Miranda returned to the United States unlawfully after being deported on May 7, 2016, at or near Laredo, Texas. The Tulsa Police Department- Special Investigations Division arrested Sanchez-Miranda on April 1, 2019, after an extensive investigation of methamphetamine trafficking that involved the use of court ordered tracking devices and a search warrant. He later pleaded guilty in Tulsa County District Court for possession of a controlled drug with intent to distribute and for maintaining a place for keeping/selling controlled drugs.
"Sanchez-Miranda wasn’t “just” an illegal alien living in our country, he was an illegal alien who had been previously deported and snuck back into the United States to deal drugs on our streets. He also armed himself with a semi-automatic gun to protect his house that he used for dealing drugs,” said U.S. Attorney Trent Shores. “Sanchez-Miranda is the poster boy for cooperation between the Tulsa County Sheriff’s Office and ICE. Specially trained Tulsa County detention officers at the David L. Moss Detention Center were able to promptly identify Sanchez-Miranda as an alien who had illegally re-entered the United States. That quick identification directly led to the Alien Unlawfully in the United States in Possession of a Firearm charge.”
Chief U.S. District Judge John E. Dowdell accepted the plea and set sentencing for Oct. 9, 2019.
The Tulsa Police Department, Tulsa County Sheriff’s Office, Department of Homeland Security’s Immigration and Customs Enforcement, and Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.