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20 August 2019
Festus Doctor and His Company Plead Guilty to Health Care FraudRead the Press Release
St. Louis, MO – Antoine Adem, M.D., 49, of Festus, MO, and his company, Midwest Cardiovascular, Inc., plead guilty to their involvement in a healthcare fraud scheme. Adem appeared in federal court before U.S. District Judge Audrey G. Fleissig who accepted the guilty pleas and set sentencing for November 19, 2019.
According to court documents, from January 2014 to December 2018, Dr. Adem and Midwest Cardiovascular submitted or caused to be submitted numerous false and fraudulent claims to Medicare and Medicaid. The reimbursement claims falsely indicated that Dr. Adem performed two vein procedures on patients on two different days, when he actually performed the two procedures on the same day. As a result, Dr. Adem and Midwest Cardiovascular received about $2000 more per patient than he would have received if he had informed Medicare and other insurers that the two vein procedures were performed on the same day. As a result of these fraudulent claims, Medicare paid Dr. Adem and Midwest Cardiovascular $149,199, more than they were entitled to receive.
Adem faces a penalty up to 10 years’ imprisonment and a fine of $250,000. Midwest Cardiovascular faces a fine of $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General and the U.S. Secret Service. Assistant U.S. Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
Fayetteville Doctor Arrested on Charges of Wire Fraud, Mail Fraud, Making False Statements, and Involuntary ManslaughterRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Michael Missal, Inspector General of the Department of Veterans Affairs, announced today that Robert Morris Levy was arrested on federal charges stemming from a year-long investigation. A federal grand jury in the Western District of Arkansas indicted Levy on twelve counts of wire fraud, twelve counts of mail fraud, four counts of making false statements in certain matters, and three counts of involuntary manslaughter.
According to the Indictment, Levy held a medical license issued by the Mississippi State Board of Medical Licensure issued in 1997. In 2005, the Veterans Health Care System of the Ozarks (“Fayetteville VA”) hired Levy to serve as the Chief of Pathology and Laboratory Medical Services, a position he held until his termination in 2018.
In 2015, Levy was interviewed by an administrative fact-finding panel regarding reports that Levy was under the influence of alcohol while on duty. Levy denied the allegations. In 2016, Levy appeared to be intoxicated while on duty, and a subsequent drug and alcohol test revealed Levy’s blood alcohol content was .396.0 mg/dL. As a result, the Fayetteville VA summarily suspended Levy’s privileges to practice medicine and issued Levy a written notice of removal and revocation of clinical privileges. Levy acknowledged that the pending proposed removal and revocation of clinical privileges was “due to unprofessional conduct related to high blood alcohol content while on duty” and in July 2016, Levy voluntarily entered a three-month in-patient treatment program, which he completed in October 2016.
Toward the end of the treatment program, Levy executed a contract with the Mississippi Physician Health Program and the Mississippi State Board of Medical Licensure in anticipation of returning to practice medicine at the Fayetteville VA. In the contract, Levy agreed to maintain sobriety to ensure his ability to practice medicine with reasonable skill and safety to patients. Levy agreed to “abstain completely from the use of . . . alcohol and other mood-altering substances” and to submit to random urine and/or blood drug screens. Non-compliance would potentially subject Levy to loss of his medical license and, in turn, his employment by the Fayetteville VA. Levy returned to work at the Fayetteville VA in October 2016.
As part of the contract, Levy randomly provided urine specimens and blood samples for drug testing from November 2016 through June 2018. Each blood sample and urine specimen tested was reported negative for the presence of drugs and alcohol. On twelve occasions beginning in June 2017 and continuing through 2018, while Levy was contractually obligated to submit to random drug and alcohol screens, Levy purchased for personal consumption 2-methyl-2-butanol (2M-2B), a chemical substance that enables a person to achieve a state of intoxication but is not detectable in routine drug and alcohol testing methodology.
The Indictment charges that Levy devised a scheme to defraud the Department of Veterans Affairs (VA) and to obtain money and property from the VA in the form of salary, benefits, and performance awards he would not have received had the VA known Levy was intentionally concealing his non-compliance with the drug and alcohol testing program. In furtherance of this scheme, Levy concealed a material fact and made material false and fraudulent representations.
The Indictment also alleges that Levy twice made false statements to a special agent of the Office of the Inspector General of the Department of Veterans Affairs. The Indictment further alleges that Levy made false statements in health care matters by entering information in a patient’s medical records that Levy knew to be false and by making a false statement during a grievance hearing related to his employment.
Finally, the Indictment charges Levy with three counts of involuntary manslaughter for causing the death of three patients through entering incorrect and misleading diagnoses and, on two occasions, by falsifying entries in the patients’ medical records to state that a second pathologist concurred with the diagnosis Levy had made. The Indictment alleges that the incorrect and misleading diagnoses rendered by Levy caused the deaths of three veterans.
Duane (DAK) Kees, the United States Attorney for the Western District of Arkansas stated, “This indictment should remind us all that this country has a responsibility to care for those who have served us honorably. When that trust is violated through criminal conduct, those responsible must be held accountable. Our veterans deserve nothing less.”
“The arrest of Dr. Levy was accomplished as a result of the strong leadership of the US Attorney’s Office and the extensive work of special agents of the VA Office of Inspector General, supported by the medical expertise of the OIG’s healthcare inspection professionals,” stated Michael Missal, Inspector General of the Department of Veterans Affairs. “These charges send a clear signal that anyone entrusted with the care of veterans will be held accountable for placing them at risk by working while impaired or through other misconduct. Our thoughts are with the veterans and their families affected by Dr. Levy’s actions.”
United States Magistrate Judge Erin L. Wiedemann presided over Levy’s arraignment today.
The Department of Veterans Affairs Office of Inspector General is conducting the investigation and Assistant United States Attorneys Kyra Jenner and Bryan Achorn are prosecuting the case for the United States.
An Indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
Egg Harbor Township Man Sentenced to Eight Years in Prison for Receiving Child PornographyRead the Press Release
TRENTON, N.J. – An Atlantic County, New Jersey, man was sentenced today to 96 months in prison for receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Matthew Wolny, 41, of Egg Harbor Township, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of receipt of child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:In September 2013, Wolny, who was then living in Jackson, New Jersey, used a peer-to-peer file sharing software, which he had installed on his computer, to download video files containing images of child sexual abuse from the internet to his computer hard drive.
In addition to the prison term, Judge Martinotti sentenced Wolny to 10 years of supervised release.
U.S. Attorney Carpenito credited special agents of Homeland Security Investigations (HSI), under the direction of Brian Michael, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office’s Camden Office.
Defense counsel: Jack Wenik Esq., Newark
Edmond Township Man Sentenced to 1½ Years for Distribution of Furanyl Fentanyl and Counterfeit Prescription DrugsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that James Cox, 55, of Edmond Township, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 1½ years in prison and three years of supervised release for distributing furanyl fentanyl and counterfeit drugs. Cox pleaded guilty on February 26, 2019.
According to court records, on October 12, 2017, Cox offered to sell Percocet to a person working with law enforcement, but instead sold the person pills containing furanyl fentanyl, but not Percocet. On February 3, 2018, Cox offered to sell oxycodone to the person, but instead sold the person counterfeit pills that contained carfentanil, but not oxycodone.
The case was investigated by the U.S. Food and Drug Administration’s Office of Criminal Investigations, the Maine Drug Enforcement Agency, the Maine State Police, the Hancock County Sheriff’s Office, and Ellsworth Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Drug Enforcement Administration (DEA) Targets Methamphetamine in Three States with Operation Crystal MountainRead the Press Release
Memphis, TN – The United States Drug Enforcement Administration this week announced the conclusion of Operation Crystal Mountain, a sweeping enforcement action spanning three states. DEA special agents, working closely with their state and local counterparts throughout Kentucky, Tennessee, and West Virginia targeted Mexican drug cartels, drug trafficking organizations and other individuals involved in the manufacturing and distribution of methamphetamine. More than 800 pounds of methamphetamine were interdicted or seized during the operation.
"Everyone has a right to live in safety. The amount of drugs and weapons we’ve taken off the street with this operation, along with the number of drug dealers that we’ve locked up, represents a small victory in our on-going fight for safer communities for us all," D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Division Office said. "While America’s opioid crisis may dominate headlines, Operation Crystal Mountain should serve as a reminder that methamphetamine is a problem that has never gone away. The dedicated men and women of DEA, working closely with state and local law enforcement, are relentless in their efforts to rid our neighborhoods of dangerous drugs and bring to justice those who distribute them, wherever they may be."
U.S. Attorney D. Michael Dunavant said: "Unfortunately, Methamphetamine that is trafficked into and through West Tennessee is increasing in dangerous purity, and has resurged to destroy individuals, families, and communities. Drug trafficking organizations that profit from the pain, addiction, violence and death caused by these dangerous substances will be disrupted and dismantled by this operation, and we are proud to stand with DEA in this critical regional enforcement action that will save lives."
Operation Crystal Mountain is the culmination of several investigations that began earlier this year. Since January, DEA special agents from the Louisville Field Division, with support from state and local law enforcement agencies across the region, have arrested 235 individuals on federal drug-related charges and seized more than $800,000.00 in cash and 52 firearms, as well as significant quantities of heroin, fentanyl, and other drugs. During this same timeframe, DEA assisted its state and local counterparts with the arrest of 140 additional offenders on state-level drug charges.
While the opioid epidemic has ravaged the nation, several large swaths of the U.S. see meth as their primary drug threat. The majority of the methamphetamine in the U.S. is produced in Mexico and trafficked by Mexican drug trafficking organizations. However, DEA continues to work to disrupt and dismantle all components of both foreign and domestic organizations which produce and traffic methamphetamine.
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Dominican National Who Illegally Reentered U.S. is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OLIVER JOAN UBIERA MALENO, 36, a citizen of the Dominican Republic last residing in Danbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to approximately 16 months of imprisonment, time already served, for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in July 2002, Ubiera Maleno, who at the time was a lawful permanent resident of the U.S., was sentenced in federal court in Alaska to 37 months of imprisonment for possessing with intent to distribute a controlled substance. In December 2003, he was sentenced in state court in Harris County, Texas, to 15 years of imprisonment for possessing with intent to deliver 400 grams or more cocaine. Ubiera Maleno was removed to the Dominican Republic in August 2009 after he had served the federal sentence and a portion of the Texas sentence.
On April 19, 2018, the Danbury Police Department arrested Ubiera Maleno for drug distribution offenses.
Ubiera Maleno has been detained since his arrest. On May 1, 2019, he pleaded guilty to one count of illegal reentry by a removed alien.
The state charges against Ubiera Maleno are pending.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
District Man Sentenced to Six Years in Prison for Metro Transit RobberiesRead the Press Release
WASHINGTON – Jordan Lassiter, 21, of Washington, D.C., was sentenced today to six years in prison for robbing commuters on the Metro Transit system in two separate incidents in February and March 2019, U.S. Attorney Jessie K. Liu announced today.
Lassiter was sentenced by the Honorable J. Michael Ryan, in the Superior Court of the District of Columbia. Once Lassiter is released from prison, he will be placed on supervised release for three years. Judge Ryan denied the defendant’s request to be sentenced under the District’s Youth Rehabilitation Act. Lassiter also received an additional 30-day sentence for committing a domestic violence assault.
Lassiter pleaded guilty in May 2019 to one count of attempted robbery. He subsequently pleaded guilty on his sentencing date to one count of assault with intent to rob. According to the government’s evidence, on February 19, 2019, at approximately 10:37 pm, Lassiter and an accomplice boarded a Metro Bus heading northbound on Georgia Avenue, NW. Lassiter and his accomplice sat near the victim, a commuter returning home from work in downtown Washington, D.C., near the front of the bus. A few minutes later, the victim got off the bus at the intersection of Georgia Avenue, NW, and Webster Street, NW, and Lassiter and his accomplice followed. After following the victim on foot to the back of his residence, Lassiter and his accomplice ran up behind the victim, punched him in the right eye, and delivered at least four knee strikes to the victim’s head. The victim stumbled into the rear of his residence, but Lassiter and his accomplice pursued, continuing to punch and kick the victim as he fell to the ground. Lassiter and his accomplice stole the victim’s wallet, cell phone, ear buds, and jacket, then fled the scene.
A month later, on March 16, 2019, at approximately 3:42 p.m., the second commuter victim was standing alone on the outdoor platform of the Fort Totten Metro station, at 550 Galloway Street, NW, waiting for a northbound Red Line Metro train. Lassiter and two accomplices approached and confronted the victim, with Lassiter standing so close to the victim that their bodies were nearly touching. Lassiter asked the victim if he was scared, and then demanded the victim’s cell phone. After obtaining the cell phone, Lassiter forced the victim to tell Lassiter the phone’s passcode. Lassiter then told the victim to get on the next train and not to call the police. Lassiter pointed at the next Red Line train arriving at the station, which was going in the opposite direction as the victim intended to travel, and ordered the victim to board. One of Lassiter’s accomplices held the train’s door open while Lassiter escorted the victim onto the train. Lassiter and his accomplices remained at Fort Totten while the train with the victim on it left the station.
In announcing the sentencing, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD) and the Metro Transit Police Department (MTPD). She also acknowledged the efforts of those who investigated and prosecuted the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Mark Hobel of the Major Crimes Section, and Assistant U.S. Attorney Emma McArthur of the Sex Offense and Domestic Violence Section, who prosecuted Lassiter’s domestic violence case.
Denver Men Sentenced to more than 20 Years in Federal Prison for Robberies and CarjackingsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that two Denver men were sentenced to more than 20 years, each, for violent robberies and two carjackings that occurred in November 2017. Thierry Shaqur Roberson was sentenced to serve 252 months (21 years) in federal prison for two liquor store robberies and a bank robbery. The other defendant, Blake Aaron Newton was sentenced to serve 238 months (24 years) in federal prison for two carjackings and a convenience store robbery. Both defendants appeared at their sentencing hearings in custody last week, and were remanded at its conclusion.
According to court documents and evidence presented during sentencing of the first case, Thierry Roberson robbed John’s Liquor Store in Denver on November 17, 2017, Pat’s Liquor Store on November 19, 2017, and then, ten days later, robbed the Sunflower Bank. Roberson used a gun in each robbery with other co-defendants. During the Sunflower Bank robbery, Roberson wore a blonde wig, a long purple dress with black pants, and a black stocking cap. Tellers gave the bank robbers thousands of dollars in cash, along with a G.P.S. tracking device. Denver police responded, tracking the G.P.S. device to an alley. SWAT and K-9 officers conducted a yard-to-yard search and found Defendant Roberson and a co-defendant hiding in some shrubbery on South Ogden Street.
In the second matter, Blake Newton carjacked a food delivery driver on November 5, 2017, in Cherry Creek. Newton pointed a silver handgun at the driver, demanded money, and took the driver’s car. Two days later, Newton got into a car accident with his girlfriend and newborn child. He got out of the crashed car and pointed a gun at a couple driving a tan Lexus sedan, ordering them out of the car and onto the ground. Newton’s girlfriend put a car seat into the Lexus sedan. Newton, his girlfriend, and their baby then sped away in the Lexus sedan. The next day, on November 8, 2017, Newton robbed a Circle K convenience store in Greenwood Village. He pointed a silver and black handgun at the cashier who handed him $69.00. Newton fled in a Lexus sedan. Law enforcement caught up with Newton ten days later in Council Bluffs, Iowa, where they were able to detain him after a struggle.
“The defendants in these cases became more brazen and more dangerous with each passing crime,” said United States Attorney Jason Dunn. “I’m thankful to our federal and local law enforcement partners who were able to get these men off the streets and make our communities safer.”
“The recent sentencings of Blake Aaron Newton and Thierry Roberson illustrate the FBI’s commitment to working with its law enforcement partners to address violent crime in our community, including bank robberies,” said FBI Special Agent in Charge Dean Phillips. “These investigations, which spanned several months, were a collaborative effort between local and federal law enforcement. The community is safer with these suspects behind bars. These sentencings should send a message to those contemplating bank robbery that they will be aggressively investigated and prosecuted to the full extent of the law.”
These cases were investigated by the Denver Division of the FBI. The defendants were prosecuted by Assistant U.S. Attorney Kurt Bohn.
Sentencing in the Thierry matter was conducted by U.S. District Court Judge R. Brooke Jackson. Sentencing in the Newton matter was conducted by U.S. District Court Judge Christine M. Arguello.
CASE NUMBERS: 17-cr-483 and 17-cr-486
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DEA Target Methamphetamine in Three States with Operation Crystal MountainRead the Press Release
LOUISVILLE, KY – The United States Drug Enforcement Administration this week announced the conclusion of Operation Crystal Mountain, a sweeping enforcement action spanning three states. DEA special agents, working closely with their state and local counterparts throughout Kentucky, Tennessee, and West Virginia targeted Mexican drug cartels, drug trafficking organizations and other individuals involved in the manufacturing and distribution of methamphetamine. More than 800 pounds of methamphetamine were interdicted or seized during the operation.
“Everyone has a right to live in safety. The amount of drugs and weapons we’ve taken off the street with this operation, along with the number of drug dealers that we’ve locked up, represents a small victory in our on-going fight for safer communities for us all,” D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Division Office said. “While America’s opioid crisis may dominate headlines, Operation Crystal Mountain should serve as a reminder that methamphetamine is a problem that has never gone away. The dedicated men and women of DEA, working closely with state and local law enforcement, are relentless in their efforts to rid our neighborhoods of dangerous drugs and bring to justice those who distribute them, wherever they may be.”
“The Eastern District of Tennessee continues to support and work with our law enforcement partners to combat the meth scourge in our region,” said U.S. Attorney J. Douglas Overbey. “It is only with our combined efforts that we can effectively fight this menace that continues to destroy the lives and families of our citizens.”
Operation Crystal Mountain is the culmination of several investigations that began earlier this year. Since January, DEA special agents from the Louisville Field Division, with support from state and local law enforcement agencies across the region, have arrested 235 individuals on federal drug-related charges and seized more than $800,000.00 in cash and 52 firearms, as well as significant quantities of heroin, fentanyl, and other drugs. During this same timeframe, DEA assisted its state and local counterparts with the arrest of 140 additional offenders on state-level drug charges.
While the opioid epidemic has ravaged the nation, several large swaths of the U.S. see meth as their primary drug threat. The majority of the methamphetamine in the U.S. is produced in Mexico and trafficked by Mexican DTOs. However, DEA continues to work to disrupt and dismantle all components of both foreign and domestic organizations which produce and traffic methamphetamine.
Convicted Sex Offender Sentenced on New Child Porn ChargeRead the Press Release
CORPUS CHRISTI, Texas - A 54-year-old Corpus Christi resident and registered sex offender has been ordered to federal prison for possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Robert Kirby Anderson aka Bobby Bonez pleaded guilty April 15, 2019.
Today, Senior U.S. District Judge John D. Rainey sentenced Anderson to 140 months in prison. At the hearing, the court heard Anderson possessed pornographic images of children on three different devices. Anderson had also altered children’s coloring books by adding captions above the cartoon children requesting to engage in sexual acts with him. Additionally, the court heard that Anderson, a registered sex offender since the late 1990s, had been staying in a residence with a minor child at the time of his arrest.
Anderson was further ordered to serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to continue registering as a sex offender.
In October 2018, an alert private citizen found a cell phone that had apparently been accidentally dropped in a parking lot. The citizen attempted to access the contacts on the phone to determine its owner, at which time she saw the pornographic images of children. The phone was turned over to local law enforcement and eventually linked directly to Anderson.
When law enforcement attempted to arrest him at the address he claimed as his residence on his sex offender registration documents, they found him not living there. Authorities located him within 24 hours where he was found to be alone in the home with a young child.
Within two weeks of the his discovered lost phone, Anderson was in custody. At the time of his arrest, he was in possession of a new phone. It was also forensically analyzed and found to contain more than 500 images of child pornography collected in just the previous two weeks.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation with the assistance of the National Center for Missing and Exploited Children.
Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Cohoes Mayor Pleads Guilty to Stealing Campaign ContributionsRead the Press Release
ALBANY, NEW YORK – Shawn Morse, age 52, the Mayor of Cohoes, New York, pled guilty today to a wire fraud scheme to defraud his supporters by stealing campaign contributions for his personal benefit.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
During the guilty plea, Morse admitted that he and his campaign treasurer, Ralph Signoracci, solicited and received contributions to his political committee the “Friends of Shawn Morse” and a political action committee. Signoracci then provided some of those funds to Morse for his personal use including an August 2015 contribution of $500 Morse used to pay a personal bill. In total, as part of the scheme, Morse personally obtained $12,250 in political contributions from at least 10 victims to pay personal expenses at hotels, restaurants, and retailers.
As part of the scheme, Signoracci concealed the nature of the fraudulent expenditures by falsely reporting their purpose or by not reporting or disclosing them on campaign disclosure reports, as was required of local candidates for public office. Signoracci pled guilty to conspiracy to commit wire fraud on March 7, 2019.
“Our democracy depends on honesty by public officials. Stealing campaign funds frustrates the freedom of speech so important to the integrity of elections, undermines public faith in the process and outcome, and betrays the trust of donors. No one is above the law, and we will continue to hold accountable politicians who put personal enrichment above public good,” said United States Attorney Jaquith.
"Public trust must be something that is cherished by all who serve in positions of public office," said James N. Hendricks, Special Agent in Charge of the Federal Bureau of Investigation's (FBI) Albany Division. "Sadly, Mr. Morse abused his position for personal gain. Today’s plea announcement should send a clear signal that the FBI will vigorously investigate any public official who attempts to use their position to enrich themselves.”
Morse pled guilty to one count of wire fraud, and faces up to 20 years in prison, a term of post-release supervision of up to 3 years, and fine of up to $250,000, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on December 10, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Megan Kinsella Kistler.
Chicago Man Sentenced to 154 Months in PrisonRead the Press Release
HAMMOND – Vincent E. Prunty, age 35, of Chicago, Illinois was sentenced before U.S. District Court Judge James T. Moody for wire fraud, mail fraud, and aggravated identity theft, announced U.S. Attorney Kirsch.
Prunty was sentenced to 154 months in prison, 2 years of supervised release, and ordered to pay over $180,000 in restitution to various financial institutions and retailers.
Prunty pled guilty to wire fraud, mail fraud, and aggravated identity theft. According to documents in this case, Prunty’s scheme involved the theft of the personal identifying information of victims in more than 10 states and Canada. Prunty and co-defendants stole some of the victims’ information from a hospital in Arizona. The stolen records included birth dates, social security numbers, addresses, telephone numbers, employment information, insurance carriers, treating physicians, and information about the people the victims listed as emergency contacts. Prunty and others opened fraudulent credit cards, bank accounts, and retail credit accounts on-line. In some instances, Prunty added himself as an authorized user on existing victim accounts.
The case was the result of an investigation by the U.S. Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Toi Denise Houston.
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Casa Blanca Man Sentenced to over 6 Years for Possessing Methamphetamine with Intent to DistributeRead the Press Release
PHOENIX, Ariz. – This week, Jaysen Reuben Lopez, 26, of Casa Blanca, Ariz., was sentenced by U.S. District Judge Dominic W. Lanza to six and a half years in prison followed by four years of supervised release. Lopez previously pleaded guilty to possessing methamphetamine with the intent to distribute.
On December 5, 2018, Gila River Police Officers found Lopez on the Gila River Indian Reservation, asleep in his vehicle with a bag containing 141 grams of methamphetamine. Lopez is a member of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
Carjacking Spree Sends Texas Man to Federal PrisonRead the Press Release
LAREDO, Texas – A 26-year-old Houston man been ordered to prison in Laredo federal court after admitting to a three-city carjacking spree, announced U.S. Attorney Ryan K. Patrick.
Daniel Farhan Nimri pleaded guilty March 18, 2019, admitting he committed a one-day, three-city carjacking spree that began in Houston and ended in Laredo.
Today, U.S. District Judge Diana Saldaña handed Nimri a 60-month sentence to be immediately followed by three years of supervised release. He was also ordered to pay $8,000 in restitution to one of the victims.
On the morning of April 6, 2015, a woman had just loaded groceries in her van in the parking lot of an HEB in Houston. At that time, Nimri climbed in and pushed the driver out of the van, dragging her for a short distance. He fled and drove to San Antonio.
There, he parked at an apartment complex and waited. Shortly thereafter, he saw another woman walking towards her car. He rushed to her, forced the car keys from her and stole her car. Nimri then drove that car to a truck stop in Laredo.
His next attack was on a man fueling his Ford Explorer. Nimri walked up behind the victim and hit him over the head with an aluminum baseball bat. After the man collapsed, Nimri drove away in his vehicle. Bystanders alerted a nearby policeman who attempted to stop Nimri. He then led several police vehicles on a high-speed chase in North Laredo, eventually crashing the stolen Explorer against concrete embankment. Officers pulled Nimri from the vehicle and arrested him.
Nimri has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of police departments in Laredo, San Antonio and Houston. Assistant U.S. Attorneys April Ayers-Perez, Homero Ramirez and Christopher dos Santos prosecuted the case.
Canadian National Sentenced for Conspiring to Traffic Drugs Through the St. Louis AreaRead the Press Release
St. Louis, MO – Harpreet Mann, 41, of Vancouver, Canada, was sentenced to 84 months in prison for his participation in a multi-defendant drug conspiracy. Mann appeared today before U.S. District Judge Henry A. Autrey and was ordered deportation to Canada after completing his sentence.
According to court documents, Mann’s drug trafficking organization was responsible for trafficking multi-kilogram amounts of marijuana, cocaine and methamphetamine through packages in the mail to St. Louis and other areas in the United States. After the completion of two wiretaps in January 2016, investigators executed six federal search warrants and seized 14 weapons, approximately $60,000, one kilogram of methamphetamine, one kilogram of cocaine and three kilograms of marijuana.
Because of this investigation, seven defendants were federally indicted through the Eastern District of Missouri. Mann was on the run for nearly a year after the Indictment. Mann also has an active warrant in Canada for possession of 3 kilograms of cocaine in March 2018.
Co-defendant James T. Bell is awaiting trial; co-defendant Daniel Gene Bigham is awaiting sentencing; the remaining co-defendants have been sentenced— Lamar White (20 months), Jeffrey Scott Cotton (20 months), Alex Smith (5 years’ probation), and Terra Cotton (SAIL Program).
The Drug Enforcement Administration, Crystal City Police Department and the United States Marshals Service investigated the case.
Bronx, NY Man Pleads Guilty in Bank Fraud SchemeRead the Press Release
JOHNSTOWN, Pa. – A resident of Bronx, NY, pleaded guilty in federal court to a charge of conspiracy, United States Attorney Scott W. Brady announced today.
Nathaniel C. Graham, 27, pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
According to information presented to the court, from March 21 to March 28, 2017, Graham, along with others, conspired to commit bank fraud. Specifically, Anthony Sass and Jacob Gunther used a fraudulent Pennsylvania Driver License to open a checking and savings account at S&T Bank in Gallitzin, PA. A fraudulent personal loan for $40,000 was obtained and deposited into the accounts. Sass and Gunther received $15,000 of the loan proceeds in cash. On March 28, 2017, Graham travelled from New York to the S&T Bank with Sass and Gunther to retrieve the balance of the loan proceeds.
Judge Gibson scheduled sentencing for Dec. 19, 2019, at 10:00 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Graham.
Brandon Man Sentenced to 12 Months and a Day in Prison Under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Ryan Storm Irwin, 26, of Brandon, was sentenced today by U.S. District Court Judge Carlton W. Reeves to 12 months and a day in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Kirk Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Irwin was also ordered to pay a $1,000.00 fine.
On February 18, 2018, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives encountered Irwin alone in a vehicle in Jackson. As a result of a consent search, a shotgun was found in the vehicle. Irwin has a prior felony conviction for grand larceny.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Bedford Man Charged for Failure to Pay Payroll TaxesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Boggs, age 39, of Bedford, Pennsylvania, was charged on August 16, 2019, in a criminal information for failure to pay employment taxes to the Internal Revenue Service.
According to United States Attorney David J. Freed, Boggs was the owner of Meadowview Manor Services, LLC, an assisted living center in Mifflin County, PA. The criminal information alleges that from 2014 through 2016, Boggs withheld payroll taxes from his employees but never remitted the monies collected to the IRS. Payroll taxes include both the employees’ portion of the income tax on their wages, and taxes owed by an employer directly to the IRS for Medicare and Social Security under the Federal Insurance Contributions Act (FICA).
The case was investigated by the Internal Revenue Service. Assistant United States Attorney Geoffrey W. MacArthur is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Boggs faces a maximum sentence of five years in prison and fine of $10,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Arms Trafficker Convicted in Anti-Aircraft Missiles Scheme and of Other Arms Offenses Sentenced to 30 Years in Federal PrisonRead the Press Release
LOS ANGELES – A black-market arms dealer with a long history of brokering machine guns, rocket-propelled grenades and anti-tank armaments – and who was found guilty last year in a scheme to sell and use surface-to-air missiles – has been sentenced to 30 years in federal prison.
Rami Najm Asad-Ghanem, 53, who was commonly known as Rami Ghanem, a naturalized United States citizen who was living in Egypt at the time of the offenses, was sentenced Monday by United States District Judge S. James Otero.
During Monday’s sentencing hearing, Judge Otero said, “The breadth, scope and gravity [of Ghanem’s offenses] is really breathtaking and, in many ways, frightening.”
Following a nine-day trial last November, a federal jury found Ghanem guilty of conspiring to use and to transfer missile systems designed to destroy aircraft. The day before his trial started, Ghanem pleaded guilty to six other federal crimes stemming from his arms-trafficking activities, including the unlicensed export of weapons and ammunition, smuggling, money laundering, and unlicensed arms brokering.
The evidence presented at last year’s trial showed that Ghanem conspired to transfer a wide array of surface-to-air missile systems to customers around the world, including clients in Libya, the United Arab Emirates, Iraq, and the leadership of Hezbollah, a designated foreign terrorist organization. During the trial, prosecutors showed that he conspired to use Russian-made Igla and Strela surface-to-air missile systems by brokering the services of mercenary missile operators to a militant faction in Libya in 2015. Among other actions, Ghanem negotiated the salaries and terms of service of the mercenary missile operators, coordinated their payment, facilitated their travel to Libya, confirmed their arrival and performance of duties, and offered them a $50,000 bonus if they were successful in their mission of shooting down airplanes flown by the internationally recognized government of Libya. In addition to numerous documents that demonstrated Ghanem’s role in the conspiracy, the jury viewed videos of sworn deposition testimony of two missile operators and Ghanem’s fellow arms broker who assisted in procuring their services for this transaction.
“This defendant brokered a wide array of military-grade weapons, which endangered civilians around the world and put at risk America’s national security interests, including members of our armed services,” said United States Attorney Nick Hanna. “Mr. Ghanem was literally a merchant of death who was ready, willing and able to sell weapons, including surface-to-air missiles, to any paying customer, with zero concern for the death and destruction these weapons might cause. As a result of his conduct, the sentence imposed in this case is appropriate and richly deserved.”
“This lengthy sentence is well deserved and, unfortunately, demonstrates the sheer breadth of criminal activity engaged in by those who oppose us,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Counter-proliferation investigations are the highest priority for HSI – and we remain steadfastly committed to working with our domestic and international law enforcement partners to pursue transnational criminal networks intent on committing acts of terrorism against the United States.”
HSI’s Los Angeles Counter-Proliferation Investigations Center began the investigation into Ghanem in mid-2014, when a Los Angeles-based company alerted HSI that it had been solicited to provide military equipment to Ghanem. During an undercover operation, an HSI agent developed a relationship with Ghanem, who was seeking to procure a number of armaments – including sniper rifles and night-vision optics. During discussions with the undercover agent, Ghanem affirmed that the transactions were being conducted “illegally” and had to be “under the table.” During subsequent meetings with the undercover operative in Greece, Ghanem expressed an interest in purchasing helicopters and fighter jets on behalf of Iranian clients, and Ghanem said he had relationships with Hezbollah in Iraq.
Over the course of several months in 2015, Ghanem discussed his interest in purchasing numerous weapons, and in August 2015 placed an order for $220,000 worth of sniper rifles, pistols, silencers, laser sights, ammunition, night-vision googles and other items that were to be shipped to Libya. After making two down payments, Ghanem was arrested on December 8, 2015, in Athens. He was extradited to the United States in April 2016 to face prosecution in this case and has remained in custody without bond since the time of his arrest.
After his arrest, authorities seized numerous digital devices that Ghanem had in his possession. Searches of those devices revealed evidence of other large-scale arms brokering activities, including millions of rounds of ammunition, anti-tank missiles, and the scheme to transfer and use anti-aircraft missiles.
In documents filed in relation to the sentencing hearing, prosecutors offered evidence of a contract documenting Ghanem’s agreement to sell $250 million worth of weapons and ammunition to a militant faction in Libya; a contract between Ghanem and the Egyptian Ministry of Defense dealing with hundreds of rocket-propelled grenade launchers; attempts to buy and sell combat jets and helicopter gunships; and his apparent role in the trafficking of counterfeit currency, looted antiquities and black-market diamonds.
“Protecting America’s warfighters and preserving our national security interests by ensuring that Department of Defense assets and technologies do not end up in the hands of those that seek to do harm to our country or our foreign allies is a critical component of the Defense Criminal Investigative Service's mission,” said Bryan D. Denny, the Special Agent in Charge of the DCIS Western Field Office. “Ghanem’s sentencing reflects the seriousness of the crimes he committed against the United States, and serves as a cautionary tale to others considering or engaging in similar illegal activities. Without question, the exceptional collaboration between the U.S. Attorney's Office, Homeland Security Investigations, the Office of Export Enforcement, and DCIS led to Ghanem’s successful prosecution and sentencing, despite the inherent complexities in detecting, investigating, and prosecuting illegal international arms-trafficking matters.”
“This sentence is the result of outstanding collaborative investigative work by the Office of Export Enforcement and its law enforcement partners to combat the illegal shipment of sophisticated technology. We will continue to aggressively pursue violators wherever they may be,” said Richard Weir, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
The investigation in this case was led by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which received substantial assistance from the Department of Defense’s Criminal Investigative Service; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Hellenic National Police; the Hellenic Financial and Economic Crimes Unit; and U.S. Customs and Border Protection. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant support in the investigation and securing the defendant’s extradition from Greece.
This case was prosecuted by Assistant United States Attorneys Melissa J. Mills and George E. Pence IV of the Terrorism and Export Crimes Section in the United States Attorney’s Office, and by Trial Attorney Christian E. Ford of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
Arms Trafficker Convicted in Anti-Aircraft Missiles Scheme and Other Arms Offenses Sentenced to 30 Years in Federal PrisonRead the Press Release
A black-market arms dealer with a long history of brokering machine guns, rocket-propelled grenades and anti-tank armaments – and who was found guilty last year in a scheme to sell and use surface-to-air missiles – was sentenced yesterday to 30 years in federal prison.
Rami Najm Asad-Ghanem, 53, who was commonly known as Rami Ghanem, a naturalized United States citizen who was living in Egypt at the time of the offenses, was sentenced by U.S. District Judge S. James Otero.
During this morning’s sentencing hearing, Judge Otero said, “The breadth, scope and gravity [of Ghanem’s offenses] is really breathtaking and, in many ways, frightening.”
Following a nine-day trial last November, a federal jury found Ghanem guilty of conspiring to use and to transfer missile systems designed to destroy aircraft. The day before his trial started, Ghanem pleaded guilty to six other federal crimes stemming from his arms-trafficking activities, including the unlicensed export of weapons and ammunition, smuggling, money laundering, and unlicensed arms brokering.
The evidence presented at last year’s trial showed that Ghanem conspired to transfer a wide array of surface-to-air missile systems to customers around the world, including clients in Libya, the United Arab Emirates, Iraq, and the leadership of Hezbollah, a designated foreign terrorist organization. During the trial, prosecutors showed that he conspired to use Russian-made Igla and Strela surface-to-air missile systems by brokering the services of mercenary missile operators to a militant faction in Libya in 2015. Among other actions, Ghanem negotiated the salaries and terms of service of the mercenary missile operators, coordinated their payment, facilitated their travel to Libya, confirmed their arrival and performance of duties, and offered them a $50,000 bonus if they were successful in their mission of shooting down airplanes flown by the internationally recognized government of Libya. In addition to numerous documents that demonstrated Ghanem’s role in the conspiracy, the jury viewed videos of sworn deposition testimony of two missile operators and Ghanem’s fellow arms broker who assisted in procuring their services for this transaction.
“This defendant brokered a wide array of military-grade weapons, which endangered civilians around the world and put at risk America’s national security interests, including members of our armed services,” said U.S. Attorney Nick Hanna for the Central District of California. “Mr. Ghanem was literally a merchant of death who was ready, willing and able to sell weapons, including surface-to-air missiles, to any paying customer, with zero concern for the death and destruction these weapons might cause. As a result of his conduct, the sentence imposed in this case is appropriate and richly deserved.”
“Yesterday’s sentencing is well deserved and, unfortunately, demonstrates the shear breadth of criminal activity engaged in by those who oppose us,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Counter-proliferation investigations are the highest priority for HSI – and we remain steadfastly committed to working with our domestic and international law enforcement partners to pursue transnational criminal networks intent on committing acts of terrorism against the United States.”
“Protecting America’s warfighters and preserving our national security interests by ensuring that Department of Defense assets and technologies do not end up in the hands of those that seek to do harm to our country or our foreign allies is a critical component of the Defense Criminal Investigative Service's mission,” said Bryan D. Denny, the Special Agent in Charge of the DCIS Western Field Office. “Ghanem’s sentencing reflects the seriousness of the crimes he committed against the United States, and serves as a cautionary tale to others considering or engaging in similar illegal activities. Without question, the exceptional collaboration between the U.S. Attorney's Office, Homeland Security Investigations, the Office of Export Enforcement, and DCIS led to Ghanem’s successful prosecution and sentencing, despite the inherent complexities in detecting, investigating, and prosecuting illegal international arms-trafficking matters.”
“Yesterday’s sentence is the result of outstanding collaborative investigative work by the Office of Export Enforcement and its law enforcement partners to combat the illegal shipment of sophisticated technology. We will continue to aggressively pursue violators wherever they may be,” said Richard Weir, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
HSI’s Los Angeles Counter-Proliferation Investigations Center began the investigation into Ghanem in mid-2014, when a Los Angeles-based company alerted HSI that it had been solicited to provide military equipment to Ghanem. During an undercover operation, an HSI agent developed a relationship with Ghanem, who was seeking to procure a number of armaments – including sniper rifles and night-vision optics. During discussions with the undercover agent, Ghanem affirmed that the transactions were being conducted “illegally” and had to be “under the table.” During subsequent meetings with the undercover operative in Athens, Ghanem expressed an interest in purchasing helicopters and fighter jets on behalf of Iranian clients, and Ghanem said he had relationships with Hezbollah in Iraq.
Over the course of several months in 2015, Ghanem discussed his interest in purchasing numerous weapons, and in August 2015 placed an order for $220,000 worth of sniper rifles, pistols, silencers, laser sights, ammunition, night-vision googles and other items that were to be shipped to Libya. After making two down payments, Ghanem was arrested on Dec. 8, 2015, in Athens. He was extradited to the United States in April 2016 to face prosecution in this case and has remained in custody without bond since the time of his arrest.
After his arrest, authorities seized numerous digital devices that Ghanem had in his possession. Searches of those devices revealed evidence of other large-scale arms brokering activities, including millions of rounds of ammunition, anti-tank missiles, and the scheme to transfer and use anti-aircraft missiles.
In documents filed in relation to today’s sentencing, prosecutors offered evidence of a contract documenting Ghanem’s agreement to sell $250 million worth of weapons and ammunition to a militant faction in Libya; a contract between Ghanem and the Egyptian Ministry of Defendant dealing with hundreds of rocket-propelled grenade launchers; attempts to buy and sell combat jets and helicopter gunships; and his apparent role in the trafficking of counterfeit currency, looted antiquities and black-market diamonds.
The investigation in this case was led by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which received substantial assistance from the Department of Defense’s Criminal Investigative Service; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Hellenic National Police; the Hellenic Financial and Economic Crimes Unit; and U.S. Customs and Border Protection.
This case was prosecuted by Trial Attorney Christian E. Ford of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division and Assistant U.S. Attorneys Melissa Mills and George E. Pence IV of the Terrorism and Export Crimes Section in the U.S. Attorney’s Office. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant support in the investigation and securing the defendant’s extradition from Greece.
American Airlines Inc. Agrees to Pay $22 Million to Settle False Claims Act Allegations for Falsely Reporting Delivery Times of U.S. Mail Transported InternationallyRead the Press Release
The Justice Department announced today that American Airlines Inc. has agreed to pay approximately $22.1 million to resolve its alleged liability under the False Claims Act for falsely reporting the times it transferred possession of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS). American Airlines is an international airline headquartered in Fort Worth, Texas.
“We expect companies doing business with the government to comply with their contractual obligations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice vigorously pursues all manner of fraudulent conduct that undermines the benefits that the government has bargained for.”
USPS contracted with American Airlines to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, American Airlines was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the specified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. Today’s settlement resolves allegations that scans submitted by American Airlines falsely reported the time it transferred possession of the mail.
“The U.S. Postal Service contracts with commercial airlines for the safeguarding and timely delivery of U.S. Mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Scott Pierce, Special Agent in Charge, USPS Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice’s Civil Division to help ensure a reasonable resolution and we applaud the exceptional work by the investigative and legal team.”
This matter was handled by the Civil Division’s Commercial Litigation Branch, the USPS Office of the Inspector General, and the USPS Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
19 August 2019
Wanted Sex Offender Arrested on Federal Charge of Coercion and EnticementRead the Press Release
St. Croix, USVI – Roger Black, 48, of St. Croix, appeared before Magistrate Judge George W. Cannon for an Initial Appearance on August 16, 2019, after his arrest by Homeland Security Investigations (HSI) Special Agents on the charge of Coercion and Enticement.
According to court documents, on August 12, 2019, HSI initiated a law enforcement operation designed to target and identity adult individuals seeking to make contact with and engage in sexual activity with minors. Agents working online in an undercover capacity, created personas in online forums and applications designed to facilitate interactions between individuals. On August 15, 2019, Black initiated contact with an undercover agent on the application Grindr by sending a picture of his naked torso and another of his genitals. A dialogue ensured during which the undercover agent stated that he was 14. Later the defendant discussed the sexual activity that he wished to participate in with the undercover agent. A meet was set up for August 16, 2019, at which time Black was arrested.
Black is a wanted sex offender from Missouri and also has an outstanding parole violation warrant from Georgia.
Upon request of the Government, Black was ordered detained with a full Detention Hearing scheduled for August 21, 2019.
The case was investigated by the Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Daniel H. Huston.
United States Attorney Gretchen C.F. Shappert reminds the public that an arrest warrant is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
U.S. Attorney's Office Writes Article for Meals on Wheels Newsletter to Promote Elder Justice InitiativeRead the Press Release
The U.S. Attorney’s Office for the Eastern District of North Carolina partnered with Meals on Wheels in Wake County to promote the Department of Justice’s (DOJ) Elder Justice Initiative (EJI) by writing an article for The Meal Times, the official newsletter for Meals on Wheels of Wake County. The monthly newsletter is distributed to approximately 10,000 older adults. The article discussed the following scams and tips on how seniors can protect themselves from becoming a statistic.
ROMANCE SCAMS where scammers use dating websites, social networking sites, and chat rooms to meet people. They create fake profiles to build online relationships – some even fake wedding plans - and eventually convince people to send money in the name of love.
- Be cautious of individuals who claim the romance was destiny or fate, or that you are meant to be together.
- Be cautious if an individual tells you he or she is in love with you and cannot live without you but needs you to send money to fund a visit.
- Fraudsters typically claim to be originally from the United States (or your local region) but are currently overseas, or going overseas, for business or family matters.
IRS IMPERSONATION SCAMS where criminals generally accuse victims of owing back taxes and threatens to sue, arrest or deport you if immediate payment is not made by certified check, credit card, electronic wire transfer, prepaid debit card or gift card.
- The IRS WILL NEVER call a taxpayer to demand immediate payment, nor will the agency call about taxes owed without first having mailed a bill to the taxpayer.
- THE IRS WILL NEVER demand that a taxpayer pay taxes without giving him or her the opportunity to question or appeal the amount claimed to be owed.
- THE IRS WILL NEVER ask for a credit or debit card number over the phone.
- THE IRS WILL NEVER threaten to send local police or other law enforcement to have a taxpayer arrested.
- THE IRS WILL NEVER require a taxpayer to use a specific payment method for taxes, such as a prepaid debit card.
GRANDPARENT SCAMS where scammers pose as a grandchild calling or sending messages to urge you to wire money immediately for rent, bail, car repair, to leave a foreign country, etc. These scammers play on your emotions, swear you to secrecy, and insist you wire the money right away!
- Resist the urge to act immediately, no matter how dramatic the story is.
- Verify the person’s identity by asking questions that a stranger couldn’t possibly answer.
- Call a phone number for your family member or friend that you know to be genuine.
- Check the story out with someone else in your family or circle of friends, even if you’ve been told to keep it a secret.
- DON’T WIRE MONEY - or send a check or money order by overnight delivery or courier.
SWEEPSTAKES/JAMAICAN LOTTERY SCAMS where fraudsters generally contact victims by phone or through the mail to tell them they have won or have been entered to win a prize. Scammers then require the victims to pay a fee to either collect their supposed winnings or increase their odds of winning the prize.
- Legitimate sweepstakes don’t make you pay a fee or buy something to enter or improve your chances of winning – that includes paying “taxes,” “shipping and handling charges,” or “processing fees” to get your prize.
- There is no reason to give someone your check account or credit card number in response to a sweepstakes promotion.
- DO NOT WIRE MONEY to “insure” delivery of the prize. The same goes for sending a check or money order by overnight delivery or courier, or putting money on a prepaid debit card.
The mission of the Elder Justice Initiative is to support and coordinate DOJ’s enforcement and programmatic efforts to prevent and combat elder abuse, neglect, financial exploitation and scams that target our nation’s seniors by promoting justice for older adults; helping older victims and their families; enhancing state and local efforts through training and resources; and supporting research to improve elder abuse policy and practice.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
U.S. Attorney Statement on Law Enforcement Response to Portland DemonstrationRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, provided the below statement on the law enforcement response to the August 17, 2019 demonstration in Downtown Portland.
“As a prosecutor, I’ve had the honor of being involved in law enforcement in Oregon for nearly 30 years. Much of this time has been working with agencies in the Portland Metropolitan Area, and, as a federal prosecutor for the last 19 years, partners throughout the state.
This past Saturday, I had the privilege of watching more than 700 local, state and federal law enforcement, fire and medical professionals work tirelessly to protect the City of Portland. These dedicated, unselfish, and non-political public servants worked together to gather the resources needed to protect our community and, in the process, change the narrative of public safety in this city.
Law enforcement does not and cannot take sides in politically-charged public discourse. This weekend’s response effort was consistent with what I’ve observed throughout my career: public servants working together to ensure public safety and help others, irrespective of politics.
In an era where it’s become all too common for politicians and pundits to question the intentions of law enforcement, I hope this weekend’s police response will serve as a definitive counterpoint.
Please join me in thanking the men and women in uniform who gave up their time with family and friends to protect our community and allow people to exercise their rights here in Portland.
To our law enforcement partners throughout Oregon—the U.S. Attorney’s Office and the U.S. Department of Justice appreciate you and have your back.”
Two from Akron sentenced to prison for using more than $38,000 in counterfeit $100 bills to buy iPads, Apple watches and other items at stores such as Target, Best Buy and Dick’s Sporting GoodsRead the Press Release
Two men from Akron were sentenced to prison for using more than $38,000 in counterfeit $100 bills to buy iPads, Apple watches and other items at stores such as Target, Best Buy and Dick’s Sporting Goods.
Tori Smith, 35, was sentenced to nearly five years in prison last week. Allyn Bell, 32, was sentenced Monday to three years in prison. Robert Peters, 31, also of Akron, is scheduled to be sentenced later this year.
All three previously pleaded guilty to conspiracy to pass or utter counterfeit obligations or securities.
Smith, Bell and Peters conspired together between April 2917 and April 2018 to pass counterfeit $100 bills to purchase items that they sometimes returned to cash. They traveled together to stores Pennsylvania, Michigan and Ohio.
For example, on April 6, 2017, Bell passed four counterfeit $100 bills to an employee at Dick’s Sporting Goods in Butler, Pennsylvania to purchase items. Two days late, Bell traveled to the Dick’s Sporting Goods store in Mentor, Ohio, and returned the items he purchased for cash, according to court documents.
On April 27, 2017, Peters passed seven counterfeit $100 bills to employees at the Kohl’s in State College, Pennsylvania to purchase two Citizen watches. The next day, at the Kohl’s in Macedonia, Ohio, Peters returned one of the watches for approximately $409.96, according to the indictment.
The defendants together made more than 20 such purchases as part of the conspiracy, according to court documents.
“These defendants traveled across several states ripping off businesses,” U.S. Attorney Justin Herdman said.
“These defendants were part of a ring that passed over $38,000 in counterfeit currency in Northeast Ohio and multiple other states,” said Jonathan E. Schuck, Special Agent in Charge of U.S. Secret Service’s Cleveland office. “They used counterfeit money to purchase not only merchandise like electronics and clothes but also paid for gas, food and hotel rooms with counterfeit currency, taking advantage of local businesses. This was a complex case that could not have been solved without the assistance from many other local and state police departments.”
This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Ranya Elzein.
Two Essex County Men Sentenced to Federal Prison Terms on Drug and Weapons ChargesRead the Press Release
NEWARK N.J. – Two Essex County, New Jersey, men were sentenced today to federal prison terms following their convictions on multiple drug and weapons offenses, U.S. Attorney Craig Carpenito announced.
Jesse Tullies, 54, of Hillside, New Jersey, was sentenced to 235 months in prison and Eugene Williams, 34, of Newark, was sentenced to 190 months in prison. Both were convicted on one count each of conspiracy to distribute heroin, distribution of heroin, distribution of cocaine base, being a felon in possession of a weapon, and use and carrying of a firearm in furtherance of a drug trafficking crime. The defendants were convicted following a three-day trial in June 2018 before U.S. District Judge Kevin McNulty, who imposed the sentences today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On Oct. 4, 2017, Essex County Sheriff’s Officers witnessed Tullies and Williams involved in what they believed were a number of illegal drug sales in the area of Clinton Place and Weequahic Avenue in Newark. Tullies and Williams were subsequently arrested, and during a search, officers recovered $1,275 in cash from Tullies and $360 from Williams.
During a search of the area where officers had seen Tullies and Williams retrieve suspected narcotics from under the rear bumper of a car, officers also recovered the following items:
• One plastic bag containing 198 glassine envelopes containing suspected heroin, including four glassine envelopes stamped “Black Jack”;
• One plastic bag containing 22 smaller plastic bags and ten plastic jugs containing cocaine base and cocaine;
• A 9mm Beretta semiautomatic handgun loaded with two rounds of 9mm ammunition;
• A 9mm Taurus Millennium PT111 G2 semiautomatic handgun loaded with eight rounds of Sig Sauer 9mm ammunition and four rounds of Winchester 9mm ammunition; and
• A 9mm FEG PA-63 Makarov semiautomatic handgun loaded with two rounds of JSC Barnaul Machine Tool Plant 9mm hollow point ammunition.
In addition to the prison terms, Judge McNulty sentenced Tullies and Williams each to three years of years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office in Newark and Assistant U.S. Attorney Francisco Navarro of the U.S. Attorney’s Office, Eastern District of New York.
Defense counsel: Tullies: James R. Murphy Esq., Princeton, New Jersey
Williams: Pasquale F. Giannetta Esq., NewarkTrial Jury Finds New Orleans East Resident Guilty of Heroin and Cocaine Conspiracy, Firearm Possession, and Structuring; Defendant Must Forfeit $425,000 in Illegal Drug ProceedsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that, last Friday, a federal jury returned a guilty verdict against New Orleans East resident DWIGHT ALEXANDER, age 48, on five counts involving drug, firearm, and financial crimes. The jury also ordered the defendant to forfeit approximately $425,000 in proceeds from his illegal drug operation. United States District Judge Greg G. Guidry scheduled ALEXANDER’s sentencing for November 19, 2019.
According to the evidence at trial, between 2012 and 2016, ALEXANDER sold a premium “cutting agent” used by drug dealers to expand and strengthen their heroin and cocaine. ALEXANDER’s product was called “Bonita,” and evidence showed that ALEXANDER acquired hundreds of kilograms of various powders like mannitol, lidocaine, quinine, and acetaminophen, that he then mixed and sold as Bonita to the highest-level drug dealers in New Orleans. During the timeframe of the conspiracy, ALEXANDER made frequent cash deposits from the proceeds of his sale of Bonita into various bank accounts. In total, the government seized approximately $425,000, which will be forfeited as the proceeds of his unlawful drug operation. ALEXANDER, who was a convicted felon, was arrested shortly after leaving his New Orleans East residence in October 2016. Agents conducted a search warrant at his residence and recovered a loaded Taurus revolver, as well as over 100 kilograms of various cutting agents that ALEXANDER intended to mix, market, and distribute to drug dealers.
At the conclusion of a five-day trial, the jury found ALEXANDER guilty of the lead charge of conspiring to distribute 1 kilogram or more of heroin and 5 kilograms or more of cocaine; two counts of distributing heroin; one count of being a felon in possession of a firearm; and one count of structuring cash deposits to avoid financial reporting requirements. On these counts, the defendant faces a mandatory minimum sentence of 10 years in prison and a maximum life sentence. The defendant also faces a period of supervised release of at least 5 years.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, which led this investigation and was assisted by the Kenner Police Department, Customs and Border Protection Agency, New Orleans Police Department, Louisiana State Police, and Jefferson Parish Sheriff’s Office. Assistant United States Attorneys Brandon Long, Theodore Carter, and Michael Redmann are in charge of the prosecution.
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Topeka Man Pleads Guilty to Driving Getaway CarRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty Monday to driving a getaway car during a bank robbery, U.S. Attorney Stephen McAllister said.
Justin Alexander McClelland, 32, Topeka, Kan., pleaded guilty one count of aiding and abetting bank robbery. In his plea, McClelland admitted he drove a co-defendant to a Kentucky Fried Chicken restaurant where a co-defendant committed the robbery. Then McClelland drove the co-defendant away from the robbery.
Co-defendant Joshua Musgraves, 26, Topeka, Kan., pleaded guilty to robbery and is set for sentencing Oct. 7.
McClelland is set for sentencing Nov. 5. Both parties have agreed to recommend a sentence of three years in federal prison.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Teen Who Smuggled Individuals and Recruited Juveniles to Smuggle Drugs Sentenced to 46 Months in CustodyRead the Press Release
SAN DIEGO -- Phillip Junior Webb, 20, was sentenced by District Court Judge Michael M. Anello in federal court today to 46 months in custody for conspiring to distribute controlled substances and smuggle undocumented individuals, including a Mexican national and Chinese national, for financial gain.
According to the public record, at the time of the offense Webb was an 18-year-old high school senior who recruited other high school students to smuggle methamphetamine and/or fentanyl into the United States on multiple occasions. In each instance, the juveniles had drugs strapped on their bodies as they attempted to enter the United States at the San Ysidro or Otay Mesa Ports of Entry.
In May 2018 Defendant Webb was caught attempting to bring a Chinese national and a Mexican national into the United States in the trunk of his vehicle.
In July 2018, Webb pleaded guilty in federal court to charges that he recruited classmates to smuggle methamphetamine and fentanyl.
“We cannot allow drug cartels to cavalierly recruit our youth to smuggle potent methamphetamine and fentanyl drugs into our nation, thereby endangering our teens and contributing to our country’s addiction crisis,” said U.S. Attorney Robert S. Brewer, Jr. “We will stop this exploitation by bringing the full power of the justice system down on the recruiters who exploit these kids.”
“Violent Mexican cartels are making money by exploiting children in the United States and Mexico,” said DEA Special Agent in Charge Karen Flowers. “Our children, naive to the dangers, are promised money in exchange for allowing cartel members to strap drugs on their bodies in the back alleys of Tijuana, often surrounded by gun-baring cartel members, and smuggle the drugs to the US. What these children aren’t told is that these drugs are deadly and they are putting themselves at risk to be physically exploited or even killed. Phillip Webb coerced children with the lure of easy money and the Hollywood notion of a glamorized life of crime. His sentencing makes it clear that we will not stand by and let profiteers damage our children.”
“Today’s sentencing of Webb is an example of justice brought to an individual conspiring to exploit juveniles for their own financial gain,” said Timothy J. Tubbs, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego. “HSI continues to partner with CBP, other law enforcement agencies, and prosecutors to educate juveniles on the dangers, risks, and consequences of being involved in the vicious world of drug smuggling.”
“I commend the great work of CBP, HSI and DEA and recognize the unified coordination across government agencies to bring this person to justice,” said CBP Director of Field Operations for San Diego, Pete Flores. “We will continue to work diligently with our partners to stop transnational criminal organizations from exploiting and corrupting our youth.”
U.S. Attorney Brewer commended AUSA Sherri Hobson as a “force of nature,” who, inspired by the Webb investigation, helped spearhead an ambitious juvenile smuggling prevention program, in collaboration with the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Customs and Border Protection (CBP), the District Attorney, the San Diego Police Department, local schools, and South Bay Community Services. Over the past year, the multi-agency prevention team made scores of presentations, which have already reached 11,580 people, including 9,250 students, more than 680 parents, 610 school staff, health and counseling professionals, 145 members of law enforcement and 215 community members.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case No. 18MJ2229
Phillip Junior Webb Age: 20 Tijuana, Mexico
CHARGES
Count 1 – Conspiracy to Distribute Methamphetamine (21 U.S.C. 841 & 846)
Maximum Penalty: Ten years minimum to life in custody; $1 million fine
Count 2 - Bringing in Undocumented Aliens for Financial Gain (8 U.S.C. 1324)
Maximum Penatly: Three years mandatory minimum to 20 years in custody; $250,000 fine
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Customs & Border Protection
Homeland Security Investigations
San Diego County Sheriff’s Department
South L.A. Man Pleads Guilty to Federal Robbery Charge in Scheme that Stole Nearly $240,000 from United States Postal Service TrucksRead the Press Release
LOS ANGELES – A South Los Angeles man pleaded guilty today to a federal criminal charge and admitted to participating in two armed robberies of United States Postal Service trucks carrying tens of thousands of dollars in cash.
Myron Crosby, 28, of Athens, pleaded guilty to one felony count of robbery of United States property. United States District Judge S. James Otero has scheduled a November 25 sentencing hearing.
Crosby admitted in his plea agreement that, on February 1, 2018, he and his co-conspirators organized the armed robbery of a Postal Service truck departing the Wagner Post Office located in Los Angeles, near the city boundary with Inglewood. During the robbery, in which Crosby acted as a lookout, a white minivan blocked the USPS truck just outside the Wagner Post Office, the robber threatened the truck driver at gunpoint, and the robber stole $37,658 in cash.
On March 1, 2018, Crosby conspired to rob the Dockweiler Post Office in South Los Angeles, he admitted in his plea agreement. On the day of the robbery, Crosby rented a Mercedes-Benz SUV and used that vehicle to box in the USPS truck as it exited the southbound 110 Freeway at Slauson Avenue. At that time, another co-conspirator exited another vehicle, brandished a gun to control the USPS driver, and stole $72,563 in cash, the plea agreement states. Crosby admitted that he and his co-conspirators robbed the USPS of $110,221.
At the time of his sentencing hearing, Crosby will face a statutory maximum sentence of 25 years in federal prison.
On July 31, Crosby’s half-brother and co-defendant, William Crosby IV, 32, of Inglewood, pleaded guilty to two felonies: robbery of United States property and using a firearm in furtherance of a violent crime.
William Crosby is a former USPS supervisor who previously worked at both the Wagner and Dockweiler post offices and who knew when the USPS transported cash generated from the sale of money orders and USPS merchandise – information that is not known to all Postal Service employees, according to a July 2018 grand jury indictment charging the two men.
William Crosby admitted in his plea agreement that between August 2017 and March 2018, while a USPS employee, he conspired with others, including Myron Crosby, to plan a theft and two robberies of USPS trucks carrying cash. The burglary and armed robberies caused cash losses of $238,457, William Crosby admitted.
William Crosby’s sentencing hearing is scheduled for October 28, at which time he will face a statutory maximum sentence of life imprisonment.
The probe into Myron and William Crosby was conducted by the United States Postal Inspection Service and the United States Secret Service. The investigation remains ongoing with respect to additional co-conspirators and additional robberies.
The case is being prosecuted by Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section, and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
San Antonio Man Sentenced to 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
In San Antonio today, 38-year-old Armando Robledo Gonzales was sentenced to 25 years in federal prison for production of child pornography, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Bexar County Sheriff Javier Salazar.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Gonzales be placed under supervised release for a period of ten years after completing his prison term.
On December 11, 2018, Gonzales pleaded guilty to the production charge. By pleading guilty, Gonzales admitted that in May 2017, he used the Internet to persuade a 13 year old to produce and send him visual images and videos of the minor engaging in sexually explicit conduct.
“We have a crisis of child sex abuse in this country and we must use every tool available to both federal and state law enforcement to address it. The efforts of the San Antonio Child Exploitation Task Force and my office demonstrate how we can effectively combine resources to apprehend and prosecute predators like Armando Gonzales,” stated U.S. Attorney Bash.
“Everyday, across the world, and in our community children are suffering in silence as we go about our daily activities,” said FBI SAC Combs. “The San Antonio Child Exploitation Task Force will relentlessly pursue every lead to rescue children who are being victimized, and bring their perpetrators to justice. We would encourage members of the public to help us protect children, who are among the most vulnerable in our community.”
The FBI San Antonio’s Child Exploitation Human Trafficking Task Force investigated this case. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Portland Woman Indicted for Tax Fraud Scheme Targeting Somali Refugee CommunityRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, announced today that a local woman has been indicted for a tax fraud scheme targeting Somali refugees in the Portland Metropolitan Area.
Rukia Mohamed, 35, a resident of Portland, has been charged with thirteen counts of making false statements by willfully aiding and assisting individual taxpayers to submit false or fraudulent tax returns claiming tax credits for which the taxpayers were ineligible. Mohamed is also charged with three counts of filing false tax returns for her own taxes.
The indictment alleges that from 2014-2017, Mohamed claimed more than $1 million in false tax credits on behalf of ineligible taxpayers.
“We encourage members of the public to carefully evaluate those from whom they take tax or other financial advice from,” said U.S. Attorney Williams. “We are aware of fraudulent tax preparers targeting refugee communities in the Portland area and are working closely with the IRS to investigate these crimes and bring those responsible to justice.”
Mohamed was released pending a three-day jury trial before U.S. District Court Judge Michael H. Simon.
This case was investigated by IRS-Criminal Investigation and is being prosecuted by Michelle Kerin, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
If you or someone you know have information about tax preparers you believe are engaged in fraudulent activity, please complete IRS Form #3949-A, print it and mail it to: IRS-Criminal Investigation, 1220 SW Third Avenue, G044 M/S 0326, Portland, Oregon 97204.
Pittsburgh Man Charged with Drug Offenses, Including Distributing Heroin and Fentanyl Resulting in an Overdose DeathRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on July 23 and unsealed last week, named Davonte Dugger, age 20, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Indictment, on August 7, 2018, Dugger distributed heroin and fentanyl that caused serious bodily injury and death of a person who used the heroin and fentanyl. The Indictment also charges Dugger with possession with intent to distribute and distribution of heroin and fentanyl on October 10, 2018, and possession with intent to distribute 10 grams or more of heroin, fentanyl, and acetyl fentanyl on October 19, 2018.
The law provides for a maximum total sentence of not less than 20 years and up to life imprisonment, a fine of $7,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Moon Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Picayune Man Pleads Guilty under Project EJECT to Illegal Possession of FirearmRead the Press Release
Jackson, Miss. – Dewayne Yates, 28, of Picayune, pled guilty today before U.S. District Judge Henry T. Wingate to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation.
On March 31, 2017, Yates was found in possession of a firearm during an administrative checkpoint in Jackson. He was previously convicted of felonious aggravated assault with a gun in Hinds County. On March 5, 2019, Yates was charged in a federal criminal indictment with possession of a firearm by a convicted felon.
Yates will be sentenced by Judge Wingate on November 21, 2019 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Penitentiary Inmate Sentenced in Federal Case for Role in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that on August 15, 2019 Chief United States District Judge John M. Gerrard sentenced Dustin Pauly to a term of imprisonment of 262 months, to be served concurrently to an undischarged term of imprisonment in an unrelated state case. Pauly, 32, of Kearney, Nebraska, pleaded guilty earlier in federal court to conspiracy to distribute methamphetamine.
In January 2019, investigators received information from the Nebraska State Penitentiary regarding drug activity involving Pauly, who was then an inmate at the Penitentiary. Investigators determined that Pauly helped coordinate the delivery of a parcel containing several pounds of methamphetamine to Hannah Pauly’s residence in Kearney. Investigators obtained a warrant to search the residence and recovered five bundles of methamphetamine in varying quantities, totaling close to five pounds. Hannah Pauly and her roommate, Jose Santos-Zepeda, were arrested and charged in the case.
The case was investigated by the Nebraska State Patrol, the Kearney Police Department, and the Central Nebraska Drug and Safe Streets Task Force.
Owners of EMS Company Sentenced to 42 Months in Prison for $3.6M Health Care Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Owners of Tritan EMS were sentenced in U.S. District Court for crimes related to a $3.6 million health care fraud scheme.
Jeralyn R. Dougherty, 67, of Dublin, was sentenced Friday to 42 months in prison, ordered to pay more than $3.6 million in restitution, including $873,716 to the IRS, and ordered to forfeit numerous financial accounts.
Clint J. Green, 47, of Orient, Ohio, was sentenced in June 2019 to 42 months in prison, ordered to pay more than $3.3 million in restitution, including $649,671 to the IRS, and ordered to forfeit numerous financial accounts.
In February 2019, Dougherty and Green pleaded guilty to health care fraud and filing false tax returns.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, and Ohio Attorney General Dave Yost announced Dougherty’s sentence imposed Friday by Senior U.S. District Judge James L. Graham.
According to court documents, between January 2012 and June 2017 Dougherty and her son, Green, owned and operated Tritan EMS, LLC (Tritan), a medical transportation company and Medicare and Medicaid provider.
Dougherty and Green were aware that Medicare and Medicaid only reimbursed claims for non-emergency ambulance services provided to Medicare recipients who were transported to certain locations, such as a hospitals, skilled nursing facilities or renal dialysis facilities, and only where the patients were being transported to receive Medicare or Medicaid covered services or returning from receiving care for such services.
Dougherty and Green billed Medicare and Medicaid for ambulance services knowing that patients were transported by a vehicle other than an ambulance, and knowing that the patients did not meet the Medicare and Medicaid requirements for ambulance services.
The total amount of fraudulent claims submitted to Medicare and Medicaid at the direction of Dougherty and Green for ambulance services that were medically unnecessary and by a vehicle other than an ambulance was more than $2.7 million.
Dougherty filed false personal tax returns with the IRS for the 2013 through 2016 income tax years. Dougherty misrepresented on her personal tax returns the amount of income she received from Tritan each year. The total tax loss to the IRS was $873,716.
Green also filed false personal tax returns with the IRS for the 2014 through 2016 income tax years, and the total tax loss to the IRS was $649,671.
“Waste, fraud and abuse in the health care industry contributes to the rising cost of health care and degrades the integrity of our health care system,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation. “Fortunately, one of the government's most powerful weapons is the ability to seize assets through the asset forfeiture program and in this case the government has seized a significant portion of the health care fraud proceeds.”
“Those who try to game the health care system will end up losing,” Ohio Attorney General Dave Yost said. “I’m proud of my staff and our partners at the federal level for securing justice in this case.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, HHS OIG the Ohio Attorney General’s Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who prosecuted these cases.
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Orthodontist Indicted for Bribery and Fraud Scheme with Former Arkansas State SenatorRead the Press Release
An orthodontist who owned several businesses that operated orthodontic clinics in Arkansas was indicted for perpetrating a bribery and fraud scheme involving former Arkansas State Senator Jeremy Hutchinson, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Duane "DAK" Kees for the Western District of Arkansas.
Benjamin Gray Burris, 47, of Windermere, Florida, was charged today in the Western District of Arkansas with 14 counts of honest services wire fraud and one count of conspiracy to commit honest services wire fraud. Burris’s arraignment will be scheduled at a later date.
As alleged in the indictment, beginning in or about February 2014, Burris and Hutchinson devised a scheme in which Burris hired and retained Hutchinson as an attorney and paid Hutchinson retainer payments in exchange in part for Hutchinson to take official action as an Arkansas legislator to benefit Burris and his orthodontic companies. Between February 2014 and November 2016, Burris paid Hutchinson, through Hutchinson’s law firm, approximately $157,500 and provided Hutchinson with gifts including free orthodontic services for his family and the use of a private plane to travel to a college football game. Hutchinson, in return, used his official position as a state senator to draft and file legislation to amend a law restricting dental practices that Burris wanted to change. In addition, Hutchinson advised and influenced members of the Arkansas Department of Human Services to expedite the approval of Medicaid applications for physician employees of Burris’s clinics.
On June 25, 2019, Hutchinson, 45, of Little Rock, Arkansas, pleaded guilty to one count of conspiracy to commit federal program bribery in the Eastern District of Arkansas, before U.S. District Judge Kristine G. Baker, for his role in this scheme. Hutchinson’s sentencing has not yet been scheduled.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Little Rock Field Office investigated the case. The case is being prosecuted by Trial Attorneys Sean F. Mulryne and Marco A. Palmieri of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys Aaron Jennen and Ben Wulff of the Western District of Arkansas.
Orthodontist Indicted for Bribery and Fraud Scheme with Former Arkansas State SenatorRead the Press Release
Fayetteville, AR — Benjamin Gray Burris, an orthodontist who owned several businesses that operated orthodontic clinics in Arkansas, was indicted today for perpetrating a bribery and fraud scheme involving former Arkansas State Senator Jeremy Hutchinson, announced U.S. Attorney Duane (DAK) Kees for the Western District of Arkansas and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Burris, 47, of Windermere, Florida, was charged today in the Western District of Arkansas with 14 counts of honest services wire fraud and one count of conspiracy to commit honest services wire fraud. Burris’s arraignment is scheduled for September 11, 2019, in the Western District of Arkansas.
As alleged in the indictment, beginning in or about February 2014, Burris and Hutchinson devised a scheme in which Burris hired and retained Hutchinson as an attorney and paid Hutchinson retainer payments in exchange in part for Hutchinson to take official action as an Arkansas legislator to benefit Burris and his orthodontic companies. Between February 2014 and November 2016, Burris paid Hutchinson, through Hutchinson’s law firm, approximately $157,500 and provided Hutchinson with gifts including free orthodontic services for his family and the use of a private plane to travel to a college football game. Hutchinson, in return, used his official position as a state senator to draft and file legislation to amend a law restricting dental practices that Burris wanted to change. In addition, Hutchinson advised and influenced members of the Arkansas Department of Human Services to expedite the approval of Medicaid applications for physician employees of Burris’s clinics.
On June 25, 2019, Hutchinson, 45, of Little Rock, Arkansas, pleaded guilty to one count of conspiracy to commit federal program bribery in the Eastern District of Arkansas, before U.S. District Judge Kristine G. Baker, for his role in this scheme. Hutchinson’s sentencing has not yet been scheduled.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Aaron Jennen and Ben Wulff of the Western District of Arkansas and trial Attorneys Sean F. Mulryne and Marco A. Palmieri of the Criminal Division’s Public Integrity Section.
Nigerian Man Sentenced to Prison for Role in $8.3 Million Medicare Fraud Scheme and Related Money LaunderingRead the Press Release
A Nigerian man was sentenced to 46 months in prison today for his role in a durable medical equipment (DME) scheme in which more than $8 million was fraudulently billed to Medicare for DME that was not medically necessary.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division and Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
Ayodeji Temitayo Fatunmbi, 47, of Nigeria, was sentenced to 46 months in prison by U.S. District Judge Christina A. Snyder of the Central District of California, who also ordered Fatunmbi to pay $1,076,893.15 in restitution. Fatunmbi pleaded guilty on May 8, 2019 to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.
Fatunmbi was charged along with Olufunke Ibiyemi Fadojutimi, 47, of Carson, California, and Maritza Elizabeth Velasquez, 44, of Las Vegas, Nevada.
As part of his guilty plea, Fatunmbi admitted that he and others paid cash kickbacks to patient recruiters and physicians for fraudulent prescriptions for DME such as power wheelchairs, which the Medicare beneficiaries did not have a legitimate medical need. Fatunmbi and co-conspirators caused Lutemi Medical Supply (Lutemi), a DME supply company that he co-ran, to submit approximately $8.3 million in claims to Medicare, which resulted in the company being paid over $3.5 million. Fatunmbi further admitted that he was responsible for $2,090,434 in false and fraudulent claims for medically unnecessary DME and that as a result of his conduct, Medicare paid Lutemi a total of $1,076,893. In furtherance of this scheme, Fatunmbi and a co-conspirator wrote checks from Lutemi’s bank account to Lutemi employees and others, and Fatunmbi instructed that those monies be returned to him to pay the illegal cash kickbacks to the patient recruiters and doctors, he admitted. Fatummbi admittedly directed others at Lutemi to engage in these tranactions to conceal the nature and source of the proceeds of the health care fraud conspiracy.
Velasquez pleaded guilty on July 24, 2013, to one count of conspiracy to commit health care fraud, and was sentenced to 15 months in prison and restitution in the amount of $3,411,428. Fadojutimi was found guilty after a jury trial on July 31, 2014, of one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, and was sentenced to four years in prison and restitution in the amount of $4,372,466.
This case was investigated by the HHS-OIG, the FBI and IRS-CI. Trial Attorneys Claire Yan, Emily Z. Culbertson and Justin P. Givens of the Criminal Division’s Fraud Section are prosecuting the case. The Asset Forfeiture Section of the U.S. Attorney’s Office for the Central District of California is handling the asset forfeiture aspects of the case.
The Fraud Section leads the Medicare 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 HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Monroe resident sentenced to 6 years in prison for possessing two sawed-off shotgunsRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Nelson Bell Jr., 52, of Monroe, was sentenced today to 72 months in prison and three years of supervised release U.S. District Judge Terry Doughty for possessing two sawed-off shotguns. He previously pleaded guilty to the federal charges on April 9, 2019.
Monroe Police went to Bell’s home on October 23, 2017, in response to a complaint. The officers determined that Bell had fired a gun in the living room, hitting a couch across from where his wife was sitting, and then went outside and fired a shot into the air. Officers found an ejected shell from the firearm on the living room floor and two shotguns, an Ithaca shotgun, Model 37, 12 gauge and a Browning shotgun, Model Light Twelve 12 gauge. Law enforcement agents measured the barrels of both shotguns and found they measured less than 18 inches in length, the minimum length required by law. Bell admitted to possessing the firearms, and that he was aware they were below the legal barrel length and not registered as required by law. Under federal law, shotguns with barrels shorter than 18 inches must be registered.
The ATF and the Monroe Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Methamphetamine Dealer Sentenced to 160 Months in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Jason Michael Clark, age 46, of Spokane, Washington, was sentenced after having pleaded guilty on May 30, 2019, to possession with intent to distribute 50 grams or more of methamphetamine. Senior United States District Judge Robert H. Whaley sentenced Clark to a 160-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, members of the Spokane Police Department, Patrol Anti-Crime Team (“PACT”) encountered Clark leaving a residence as they were arresting another individual who had an outstanding warrant. Officers subsequently determined that Clark left a backpack in the residence’s driveway. A search of Clark’s abandoned backpack revealed that it contained over 50 grams of methamphetamine and drug-trafficking paraphernalia.
United States Attorney Hyslop said, “The federal, state and local law enforcement agencies who worked on this case should be commended for their ongoing commitment to investigate aggressively individuals trafficking in methamphetamine. The United States Attorney’s Office for the Eastern District of Washington will similarly continue its ongoing commitment to prosecute methamphetamine traffickers and to seek appropriate punishment for their criminal conduct.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Federal Bureau of Investigation, Spokane Regional Safe Streets Task Force, the Spokane Police Department PACT, the Spokane County Sheriff’s Office, and the Kootenai County Sheriff’s Office. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Manchester Felon Pleads Guilty to Illegal Firearm PossessionRead the Press Release
CONCORD - Christopher D. Mann, 35, of Manchester, pleaded guilty in federal court to unlawfully possessing a firearm, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 16, 2019, the United States Marshals Service executed an arrest warrant for Mann having violated supervised release from a prior offense. Mann was arrested in a vehicle that was owned by Mann's girlfriend. At the time of the arrest, the deputy Marshal seized a Glock .357 caliber handgun from the passenger seat where Mann had been sitting. In addition, the deputy Marshal seized from Mann's pocket two magazines of ammunition for the handgun that was found on seat.
Mann was prohibited from possessing any firearms or ammunition as a result of at least one prior felony conviction.
Mann is scheduled to be sentenced on November 22, 2019.
“In order to keep our communities safe, federal law prohibits convicted felons from possessing firearms,” said U.S. Attorney Murray. “Thanks to the excellent enforcement work of the U.S. Marshals Service, this convicted felon was disarmed.”
This matter was investigated by the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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Manager of Insurance Broker Pleads Guilty in Seven-Year Embezzlement SchemeRead the Press Release
NEWS RELEASE SUMMARY – August 19, 2019
SAN DIEGO – A Ramona woman, who for ten years worked as the operations manager for a San Diego-based insurance broker, admitted today to participating in a scheme to defraud her employer of over $700,000. The scheme lasted over seven years and involved hundreds of fraudulent checks written to herself and a family member.
During a hearing this morning before U.S. District Judge Thomas J. Whelan, the defendant, Antonia Barber, pleaded guilty to one felony count of Wire Fraud.
According to her plea agreement, Barber, 51, worked as the operations manager for a local insurance brokerage firm from 2005 until June 2015. In that job, she had significant discretion over the finances of the company, and was responsible for approving expense reimbursement requests. Abusing her position, she caused hundreds of checks to be written by the company to a family member, purportedly for “records management,” when in fact such services were not provided. Additionally, she caused hundreds of checks to be written by the company to herself personally, purportedly for expense reimbursements – expenses which in fact she had not incurred. The defendant admitted that the total loss in connection with these fraudulent checks was approximately $726,000 over the course of the seven-year scheme.
“The business owners in our community have a right to the honest services of their employees,” said United States Attorney Robert S. Brewer, Jr. “Stealing from your employer, whether done in a subtle manner over a period years or a brazen way, results in a negative hit to the bottom line that impacts competitiveness. It will not be tolerated.” “I also want to commend the Secret Service for their excellent investigation and AUSA Robert Huie for his leadership and tenacity during this investigation,” Brewer said.
“The U.S. Secret Service is committed to protecting our nation’s financial infrastructure, which includes stopping fraudulent activities like this wire and check fraud,” said Special Agent in Charge James E. Anderson Jr., of the U.S. Secret Service San Diego Field Office. “The Secret Service San Diego Field Office will continue to investigate individuals who utilize and take advantage of their position in an effort to defraud their employer.”
Barber is scheduled to be sentenced on December 9, 2019 at 9:00 a.m., before Judge Whelan.
DEFENDANT Case Number 18-CR-4028-W
Antonia Barber Ramona, CA Age: 51
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.
AGENCIES
U.S. Secret Service
Man Sentenced to More than 8 Years in Prison for Illegally Importing, Selling Male Sexual Enhancement Pills Branded as ‘Herbal’ MedicineRead the Press Release
LOS ANGELES – A Walnut man was sentenced today to 100 months in federal prison for illegally importing from China and selling $11 million worth of pharmaceutical-grade erectile dysfunction drugs that were falsely marketed as herbal remedies for men, some of whom suffered permanent injuries after consuming them.
John Seil Lee, 41, was sentenced by United States District Judge Percy Anderson, who ordered him remanded into federal custody. Judge Anderson – who also ordered Lee to pay more than $552,000 in restitution to his victims, including men who were injured by Lee’s misbranded pills – remarked in court on Lee’s “callousness” and how Lee’s “scheme has literally ruined lives.”
“It’s obvious to me,” Judge Anderson said, “that this defendant has little or no respect for the law or the harm he caused numerous victims.”
On February 27, Lee pleaded guilty to three felony counts of conspiracy, importing contraband into the United States, and filing a false tax return.
Lee’s companies – KHK International Trade Enterprise, Inc., and SHH World Trading Enterprises, Inc. – each were sentenced today to five years’ probation. KHK was fined $100,000 and SHH was ordered to pay its victims $115,484 in restitution. Lee’s companies each pleaded guilty in February to two felony counts of introducing misbranded drugs into interstate commerce.
From 2011 through early 2017, Lee illegally imported shipments of powder Tadalafil – a prescription drug used to treat erectile dysfunction and sold under the brand name Cialis – from suppliers in China. Lee then manufactured the powder Tadalafil into at least 5.5 million pills that he sold to distributors across the United States. In order to boost sales, Lee made the pills with up to 14 times the level of Tadalafil contained in Cialis.
Lee sold at least $11 million worth of pills across the United States – under names such as “X Again,” “X Monster” and “Royal Master” – with labels that did not disclose the presence of Tadalafil and falsely stated that no prescription was necessary, according to court documents. Lee also continued selling the pills despite FDA announcements that the pills were tainted because they contained undeclared Tadalafil. In order to evade federal regulators, Lee relabeled the tainted pills in response to FDA announcements about their safety, the information states. For example, in August 2016, after the FDA announced that SHH’s “One More Knight” pills contained undisclosed Tadalafil, Lee rebranded the same pills as “Own the Knight” and continued selling them.
After Lee closed SHH following the execution of federal search warrants in February 2017, he helped his friend Jin Su Park set up RNG Global Management and Trading Group to operate as a copycat business, according to Park’s plea agreement and statements made in court today. Park took 14,000 of Lee’s pills, rebranded them as “EEZZY UP PLATINUM,” and sold them to Lee’s former distributors across the country. EEZZY UP’s packaging also failed to disclose that the pills contained Tadalafil.
The FDA’s approval of Cialis is limited to the use under the supervision of a licensed professional. Due to toxicity and other potentially harmful effects – including life-threatening drops in blood pressure, loss of vision, loss of hearing and prolonged, painful erections that can result in permanent injury – drugs similar to Cialis are not safe for use except under the supervision of a medical practitioner.
In addition to the convictions of Lee, KHK, and SHH, federal prosecutors have obtained 13 guilty pleas from individuals and companies who conspired with Lee to distribute his misbranded erectile dysfunction drugs. These defendants are scheduled to be sentenced by Judge Anderson over the next several months.
The investigation into these cases was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Food and Drug Administration’s Office of Criminal Investigations and IRS Criminal Investigation.
The cases are being prosecuted by Assistant United States Attorney Matthew W. O’Brien of the Environmental and Community Safety Crimes Section.
Hidden active pharmaceutical ingredients have been identified in products promoted not only for sexual enhancement, but also for bodybuilding, pain relief and weight loss. The FDA has issued hundreds of public warnings and recall announcements related to these types of fraudulent products. The FDA’s Tainted Products database can help consumers identify some of these potentially harmful products. Even if a product is not included in the list, consumers should be cautious about using certain products, especially those promoted for sexual enhancement, weight loss, bodybuilding and pain relief.
Lincoln Man Sentenced for Stealing Funds from His Elderly FatherRead the Press Release
United States Attorney Joe Kelly announced that Chief United States District Court Judge John M. Gerrard sentenced Craig A. Barnett, 62, of Lincoln, Nebraska, Thursday to a jail term of 16 months, a term of supervised release of three years and restitution of $277,000 for his conviction for wire and mail fraud.
During the six-year period from February 2010 through September 2016, Barnett misappropriated monies from his father’s various income sources including his Social Security benefits, his pension plan payouts and various investment funds that were to be used for the care of his elderly father. Barnett used the money for his own personal use and enjoyment.
As part of his scheme, Barnett had his father execute a power of attorney granting Barnett control over his father’s financial affairs. Barnett then used this power of attorney to steal his father’s personal funds, which were to be used to pay for his father’s care at an assisted-living facility where he resided. Some of these stolen funds were used by Barnett to purchase a new home and an automobile unbeknownst to his elderly father.
It was not until the Office of the Public Guardian for the State of Nebraska intervened on behalf of his father that the fraudulent conduct on the part of the defendant was discovered. As part of his sentence, Barnett is required to make restitution in the total amount of $277,000 to his father, the State of Nebraska, and the assisted-living facility where his father still resides.
This case was investigated by the United State Department of Labor, the Office of Inspector General for the Social Security Administration, the Nebraska Department of Health and Human Services and the Office of the Public Guardian for the State of Nebraska.
Lawrence Woman Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD – Karina Reyes, 29, of Lawrence, Massachusetts, pleaded guilty in federal court to distributing fentanyl as part of a seven-defendant narcotics case, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Reyes resided with a drug trafficker in Lawrence, Massachusetts, and sometimes provided translation services for him during telephone conversations about trafficking in fentanyl, including making arrangements for specific drug transactions in New Hampshire.
Reyes is scheduled to be sentenced on November 22, 2019
Co-defendants Billy Damuel Maldonado Cancel, Jose Hiram Martinez Rolon, Samuel Ramos, and Abelino Morales-Padilla previously pleaded guilty to fentanyl trafficking charges in the same case. .
“Those who participate in the trafficking of fentanyl will be arrested and prosecuted,” said U.S. Attorney Murray. “It is vital to the health and safety of the public that we disrupt the distribution of this lethal substance. Law enforcement at all levels is united in the effort to stop traffickers.”
This matter was investigated by the U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, the New Hampshire State Police, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney John Davis.
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Lane County Man Pleads Guilty to Shooting at Endangered Gray WolfRead the Press Release
MEDFORD, Ore.—Colton Tony Dick, 22, of Oakridge, Oregon, pleaded guilty today to a single count of unlawfully taking an endangered species.
According to court documents, on October 5, 2016, using a rifle and scope, Dick shot at an endangered gray wolf without legal justification as the animal was walking away from him in the Fremont-Winema National Forest. Dick was unable to locate the wolf.
Although Dick did not admit to killing a gray wolf, an investigation began on October 6, 2016 when an adult female GPS-collared gray wolf known as “OR 28” was found dead in the Fremont-Winema National Forest near Summer Lake, Oregon. On November 9, 2016, the US Fish and Wildlife Service Forensic Lab determined OR 28 died as a result of injuries sustained from a single gunshot wound.
Gray wolves (Canis lupus), located in Western Oregon, are listed as endangered under the Endangered Species Act.
Unlawfully taking an endangered species carries a maximum sentence of one year in prison, a $100,000 fine and one year of supervised release.
Under a deferred sentencing agreement with the government, Dick has agreed to submit to one-year of supervised release, pay restitution of $2,500 to the Oregon Department of Fish and Wildlife, not hunt any wildlife for a period of one year and perform 100 hours of community service.
If Dick complies with these conditions, he will be allowed to withdraw his guilty plea and the government will move to dismiss his charge.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement and the Oregon State Police. It was prosecuted by Adam E. Delph, Assistant U.S. Attorney for the District of Oregon.
If you or someone you know has information about a wildlife crime, please contact the U.S. Fish and Wildlife Service Office of Law Enforcement by emailing [email protected] or calling 1-844-397-8477.
Kentucky Man Pleads Guilty to Traveling to Have Sex with a MinorRead the Press Release
HUNTINGTON, W.Va. – A South Shore, Kentucky man pled guilty to a sex offense involving a minor, announced United States Attorney Mike Stuart. Charles Wayne Logan, 39, pled guilty to traveling in interstate commerce with the intent to engage in illicit sexual activity with a minor.
“Parents please monitor the online activity of your children,” said United States Attorney Mike Stuart. “There are far too many people like Logan surfing the net and utilizing popular cell phone applications to entice and exploit our children. We must work together to keep our children safe from predators.”
Logan admitted that he began communicating via a cell phone application with a person he believed to be a 14-year-old female on January 10, 2019. The conversations were sexual in nature and involved Logan telling the minor he planned to engage in sexual intercourse with her when they met in person. Logan also sent the purported minor a video depicting himself masturbating. On January 14, 2019, Logan, a long-haul truck driver, arranged to meet with the purported minor at a location in Huntington after he drove back to Kentucky from Indiana. When Logan arrived at the meeting location, he was placed under arrest.
Pursuant to the terms of his plea agreement, Logan faces eight years in prison when sentenced on November 25, 2019. Upon release from prison, Logan will be required to serve a term of supervised release of fifteen years and will also be required to register as a sex offender.
The FBI Violent Crimes Against Children Task Force and the West Virginia States Police Internet Crimes Against Children Task Force conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Jury Returns Conviction in On-Line Dating Fraud ConspiracyRead the Press Release
OKLAHOMA CITY – NNAMDI FRANKLIN OJIMBA, 35, has been convicted by a jury of conspiring to commit wire fraud based on his involvement in an on-line romance scam, announced U.S. Attorney Timothy J. Downing.
According to an indictment filed on October 17, 2017, Ojimba and others defrauded individuals by fostering what appeared to be a genuine romantic relationship on-line and then convincing those individuals to send them money. Ojimba and others used the persona "Edward Peter Duffey" and claimed to be a successful financial advisor or affiliated with charitable causes. He purported to have inside financial information, such as knowledge that the investment firm used by the victim was under investigation or was financially unsound. As a result of these fraudulent claims, victims wired money to conspirators for what they believed would be investments. In reality, Ojimba and his conspirators kept the money for themselves.
Two of Ojimba’s conspirators, Ken Ejimofor Ezeah and Akunna Baiyina Ejiofor, have already been convicted and sentenced. Ezeah, who pleaded guilty to conspiracy, was sentenced to 11 years in prison on October 6, 2017, and ordered to pay $4,678,302.79 in restitution to ten victims. Ejiofor was convicted by a jury on March 30, 2017, and sentenced to seven years in prison on September 28, 2017.
In October 2018, a jury was unable to reach a verdict on the conspiracy count. The United States re-tried the conspiracy case against Ojimba beginning on August 12, 2019, before a different jury. On August 16, he was found guilty. Chief United States District Judge Timothy D. DeGiusti ordered that Ojimba be detained in the custody of the U.S. Marshals Service pending further proceedings.
At sentencing, Ojimba faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. Sentencing will take place in approximately 90 days.
This conviction is the result of an investigation by the FBI Oklahoma City Division. The case is being prosecuted by Assistant U.S. Attorney Timothy W. Ogilvie.
Reference is made to public filings for further information.
Johnstown Woman Sentenced to 5 Years in Prison for Heroin ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court in Johnstown to 60 months in prison and four years supervised release on her conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Alissa N. Mosley, 30.
According to information presented to the court, on July 27, 2017, Mosley and a co-defendant did possess with intent to distribute more than 100 grams of heroin.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Mosley.