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Thursday 27 June 2019
Eastside Hollygrove Resident Charged in Heroin and Fentanyl Conspiracy Sentenced to Ten YearsRead the Press Release
U.S. Attorney Peter G. Strasser announced that DONALD MARCELIN, a/k/a “Golfer,” a/k/a “Black,” a/k/a “Snook,” age 41, of New Orleans, was sentenced yesterday after pleading guilty to one count of conspiring to distribute one kilogram or more of heroin and a quantity of fentanyl.
United States District Judge Sarah S. Vance sentenced MARCELIN to ten years of imprisonment followed by (5) five years of supervised release.
According to court records, during the timeframe of the charged drug conspiracy, MARCELIN conspired with codefendants Jonathan LAWRENCE, Brandon HALL, Aloysius KORIEOCHA, Brian MAXSON, Dwayne LABRANCH, Lance STOVALL, Vonzo MAGEE, and others, to distribute heroin and fentanyl throughout the New Orleans area. These individuals were members of a drug-trafficking organization that operated primarily in the Eastside Hollygrove neighborhood of New Orleans. Collectively, the group referred to their neighborhood as “The Zoo,” a name derived from a popular rap song and video filmed in the neighborhood. Each of the eight defendants has been linked to drug activity in Eastside Hollygrove through law enforcement controlled purchases, Title III wire and electronic interceptions, witness statements, drug seizures, and other evidence. Each of the eight defendants in this case has pleaded guilty. Thus far, only MARCELIN and KORIEOCHA have been sentenced.
U.S. Attorney Strasser praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
East Bay Man Sentenced to Seven Years in Prison for His Role in Robbery of Undercover Federal AgentRead the Press Release
OAKLAND – James Medeiros was sentenced to 84 months in prison for using, carrying and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
In November of 2018, Medeiros, 25, of San Leandro, agreed with Anthony Reed, 23, of San Leandro; Jesus Angel Sanchez, 20, of Oakland; and Marcos Antonio Martenez, 25, of Oakland, to rob a person who they lured to a location purportedly to purchase firearms. Specifically, Medeiros understood that his co-conspirators had persuaded the customer, unbeknownst to them an undercover ATF agent, to travel to a building in Oakland to purchase firearms for $8,000. Medeiros brought a firearm to the robbery as instructed by one of his co-conspirators. One of the co-conspirators met the undercover agent in front of a building and instructed the agent to follow him to the back of the building. Medeiros was waiting at the back of the building with another co-conspirator. When the agent arrived, the co-conspirators robbed him. Medeiros and a co-conspirator brandished firearms and pointed them at the agent while another co-conspirator demanded the agent’s money. Reed, Sanchez, and Medeiros were apprehended leaving the scene of the robbery. Martenez was arrested days later.
On November 29, 2018, a federal grand jury returned a superseding indictment, charging Medeiros, Reed, Sanchez, Martenez, and others with multiple crimes related to the conspiracy in which Medeiros participated. Medeiros was charged with conspiracy, in violation of 18 U.S.C. § 371; robbery of mail, money, or other property of the United States, in violation of 18 U.S.C. § 2114(a) and 2; assault on a federal officer with a deadly or dangerous weapon, in violation of 18 U.S.C. §§ 111(b) and 2; and using, carrying and brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(ii). He pleaded guilty to the § 924(c)(1)(A)(ii) charge and the remaining charges were dismissed at sentencing.
In addition to the prison term, Judge Gilliam also sentenced Medeiros to a three-year term of supervised release to begin at the conclusion of his prison term.
Reed, Sanchez and Martenez also pleaded guilty to using, carrying and brandishing a firearm during and in relation to a crime of violence. All three defendants face a mandatory minimum term of seven years’ imprisonment and a maximum term of life imprisonment, as well as a $250,000 fine. The sentencing hearings for Reed, Sanchez, and Martinez are scheduled for August 26, 2019; September 16, 2019; and July 29, 2019, respectively.
Special Assistant U.S. Attorney Samantha Schott is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation by the ATF, with the assistance of the Alameda County Sheriff’s Office, California Highway Patrol, and the Oakland Police Department.
E-Commerce Company Pleads Guilty to Antitrust ChargeRead the Press Release
Gennex Media LLC (aka Brandnex.com and PMGOA) pleaded guilty and was sentenced today for conspiring to fix prices for customized promotional products sold online to customers in the United States. Gennex Media’s president, Akil Kurji, was also sentenced today for his role in the conspiracy.
According to the felony charges filed on Nov. 1, 2018, and the plea agreement filed today in the U.S. District Court for the Southern District of Texas in Houston, Gennex Media, its president, Akil Kurji, and their co-conspirators agreed to fix the prices of customized promotional products sold online from May 2014 until at least June 2016. The customized promotional products subject to the conspiracy included wristbands, lanyards, temporary tattoos, and buttons. The defendants and their co-conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype, and Whatsapp, to reach and implement their illegal agreement. In addition to pleading guilty, Gennex was sentenced to pay a $752,717 criminal fine. Kurji was sentenced to eight months in custody, a $20,000 criminal fine, and three years of supervised release.
“Today’s guilty plea and sentencings demonstrate the Division’s commitment to uncovering and prosecuting collusion that affects the online marketplace,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will continue to hold companies and their top executives accountable, seeking significant criminal fines and prison terms for those who violate the antitrust laws at the expense of everyday Americans.”
“The Department of Justice’s simple message is don’t collude to fix prices,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “If you are caught doing this, not only will you likely face large fines, but you could end up in federal prison. Fixing prices hurts consumers and market competitors, whether the conspiracy involves small, logo branded items or million dollar pieces of equipment.”
“The guilty plea and sentencing handed down today should serve as a warning to those who would corrupt America’s business markets that the FBI and its partners will pursue justice for our consumers,” said Perrye K. Turner, Special Agent in Charge of FBI’s Houston Field Office. “Such conduct will not be tolerated and there are harsh consequences for companies and their executives who violate competition law.”
To date, 11 defendants have been charged in the investigation into the online customized promotional products industry. Of those defendants, five individuals and four companies have pleaded guilty. The corporate guilty pleas in the investigation have resulted in criminal fines totaling almost $10 million.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Texas and the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct related to other products in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Department of Corrections Nurse Pleads Guilty to Drug ChargesRead the Press Release
BOSTON – A nurse at the Department of Correction’s Massachusetts Alcohol and Substance Abuse Center (MASAC) in Plymouth pleaded guilty today in federal court in Boston to distributing Suboxone pills to inmates in that facility.
Julie Inglis-Somers, 39, of Kingston, Mass., pleaded guilty to distribution of a controlled substance. U.S. District Court Judge Indira Talwani scheduled sentencing for Oct. 24, 2019. In December 2018, Inglis-Somers was charged by criminal complaint and arrested in Jacksonville, Fla. after fleeing the District of Massachusetts. She was indicted in January 2019.
On or about Nov. 18, 2018, and Dec. 4, 2018, Inglis-Somers provided Suboxone strips and pills to two inmates at MASAC. Suboxone, a Class III controlled substance used to treat heroin addiction, is sometimes misused to get high. Suboxone is a coveted contraband in prisons across the nation and is particularly popular in New England.
MASAC is one of five facilities in Massachusetts where, under Massachusetts General Laws, a state court judge can send a person who the judge has determined to be a danger to themselves or to others due to substance abuse. MASAC is the only such facility overseen by the Massachusetts Department of Corrections.
The charge of distribution of a controlled substance provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. The FBI Jacksonville (FL) Field Division and the Suwannee County (FL) Sheriff’s Office provided assistance with the arrest. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
Davie Resident Sentenced to 87 Months in Prison for Being a Felon in PossessionRead the Press Release
A Davie resident who possessed a firearm and ammunition was sentenced for being a felon in possession of a firearm and ammunition and required to forfeit his interest in the firearm and ammunition.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Dale Engle, Chief, Davie Police Department, made the announcement.
Roberto Alexander Gonzalez, 28, was sentenced by Senior U.S. District Judge William J. Zloch to 87 months in prison, to be followed by three years of supervised release for being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Case No. 19CR60053). Judge Zloch ordered that during the term of Gonzalez’s supervised release he be subject to a permissible search and be required to obtain anger control/domestic violence treatment; mental health treatment; and substance abuse treatment. Judge Zloch also ordered the forfeiture of Gonzalez’s interest in the firearm and ammunition.
According to the court record, including the agreed upon factual proffer, on August 19, 2018, Gonzalez and another man attacked and beat a man in a convenience store in Davie. Gonzalez used a handgun to beat the victim and then pointed the handgun at the victim before fleeing to a local bar. Davie Police Officers arrived at the scene and interviewed the victim, who had blood streaming from lacerations above his left eye and on the back of his head. The officers located Gonzalez at the bar and recovered the loaded handgun from where it had been hidden inside the bar’s closet. The beating was recorded by the convenience store’s security cameras. DNA from both Gonzalez and the victim was recovered from the handgun.
At the time he possessed the handgun, Gonzalez was a felon who had previously been convicted of felonies in two cases in Broward County – possession of cocaine with intent to sell or deliver, and burglary of a dwelling.
Gonzalez has also been charged by the State of Florida, which charges are based upon the beating of the victim during the same incident. The defendant is presumed innocent of the state charges unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and the Davie Police Department. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Convicted Felon Sentenced to Prison for Firearm and Cocaine PossessionRead the Press Release
RICHMOND, Va. – A Petersburg man was sentenced today to more than seven years in prison for possessing two firearms as a convicted felon and cocaine during a high-speed pursuit with the U.S. Marshal’s Fugitive Task Force.
According to court documents, Kevin Godette, 39, was wanted by the Colonial Heights Police Department and the Petersburg Bureau of Police for outstanding probation violations. In December 2017, in an effort to arrest Godette on these warrants, the U.S. Marshal’s Fugitive Task Force conducted surveillance on an apartment suspected of harboring Godette. Upon seeing Godette leave the apartment and get into a vehicle with a backpack, members of the U.S. Marshal’s Task Force attempted a traffic stop on his vehicle. Godette engaged law enforcement in a high-speed chase through both Colonial Heights and Petersburg, where he bailed out of the vehicle and fled on foot.
U.S. Marshal Task Force members arrested Godette a short time later in a wooded area. While Godette was arrested, authorities revealed more than $160 in U.S. currency and multiple plastic baggies containing distribution amounts of cocaine. A search of Godette’s vehicle revealed the backpack previously possessed by Godette contained two loaded semi-automatic pistols. At the time of Godette’s possession of the two firearms, he was a convicted felon, and thus prohibited from possessing any firearm.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Nick Proffitt, U.S. Marshal for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-133.
Chicago Felon Sentenced to 42 Months for Gun CrimeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Aaron T. Washington, 25, of Chicago, Illinois, was sentenced today by U.S. District Judge James D. Peterson to 42 months in federal prison for possessing a firearm as a convicted felon. Washington pleaded guilty to the charge on April 15, 2019.
On December 31, 2018, at 6:00 pm, on December 31, 2018, Washington attempted to rob a customer outside of a Kwik Trip on Madison’s east side. The intended victim refused to give Washington money, and the victim went back into the Kwik Trip. The Madison Police Department was called and they had Kwik Trip play their interior videos for them. Close-up photographs of the robber showed the distinct tattoos on Washington’s face.
Madison police officers traced footprints in the snow to a nearby first-floor apartment, where they located Washington. A subsequent search of the apartment led to the recovery of a loaded Taurus handgun in the toilet tank. The Taurus matched the description given by the attempted robbery victim. Washington was transported to the North District Police Station, where he temporarily escaped from the holding cell.
Washington’s prior felony conviction was for aggravated unlawful use of a weapon/occupied vehicle, in Cook County, Illinois in 2013.
Under the federal sentencing guidelines, Washington’s range was 27 to 33 months. The United States asked for a higher sentence, considering the aggravating facts of the offense conduct. Judge Peterson agreed, and decided that 42 months was an appropriate sentence.
This case was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The charge against Washington was the result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. This prosecution was handled by Assistant U.S. Attorney Rita M. Rumbelow.
California Man Charged with Illegally Exporting Cesium Atomic Clocks to Hong KongRead the Press Release
BOSTON – A California man was arrested and charged in an indictment unsealed today in federal court in Boston with illegally exporting cesium atomic clocks to Hong Kong.
Alex Yun Cheong Yue, 67, of South El Monte, Calif., was indicted on one count of conspiracy to commit export violations, two counts of unlawful exports and attempted exports of U.S. goods to Hong Kong, and one count of smuggling. Yue will appear this afternoon in federal court in Los Angeles. Wai Kay Victor Zee, 56, of Hong Kong, along with his company, Premium Tech Systems, Limited were also charged. The two defendants remain at large in Hong Kong Special Administrative Region of the People’s Republic of China.
According to the charging document, beginning in December 2015, Yue, Zee, and Premium Tech conspired to procure U.S.-origin cesium atomic clocks and export them to Hong Kong without obtaining the required export licenses. Cesium atomic clocks are used in global positioning system solutions, network timing protocols, encryption programs, and national defense and space applications. They are controlled for export by the U.S. Department of Commerce for national security and anti-terrorism reasons.
To obtain the atomic clocks, Yue allegedly used a fictitious company, “Ecycle Tech International Ltd.,” to purchase them by falsely representing to the U.S. seller that the atomic clocks would be used solely in the United States for cordless phone research and development. Based on Yue’s false representations, the U.S. seller sold the cesium atomic clocks to Ecycle. On Feb. 19, 2016, the atomic clocks shipped from the manufacturing facility in Beverly, Mass., to Yue in California. Three days later, on Feb. 22, 2016, Yue reshipped the controlled cesium atomic clocks to Zee at Premium Tech in Hong Kong. Neither Yue, Zee, nor Premium Tech ever applied for or obtained the required export licenses from the U.S. Department of Commerce. On Feb. 24, 2016, Zee confirmed receipt of the cesium atomic clocks in Hong Kong.
In December 2017, Yue allegedly attempted to purchase an additional cesium atomic clock. Prior to the sale, however, the U.S. seller required Yue to provide an end-user statement detailing where and for what the clocks would be used. In April 2018, Yue sent an end-user certificate on Ecycle letterhead stating that the atomic clocks would be used in a calibration lab in California. It is alleged that in response to further inquiries from the U.S. seller, Yue falsely declared that he was not intending to export the cesium atomic clocks. When the U.S. seller insisted on a site visit to the California location where the atomic clocks would be utilized, Yue abruptly canceled the order. On July 13, 2018, Yue received a refund payment from the U.S. seller. Three days later, on July 16, 2018, Yue sent a wire transfer to Premium Tech’s bank account in Hong Kong with the refunded money.
The charge of conspiring to commit export violations and unlawfully exporting and attempting to export U.S. goods provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. The charge of smuggling goods from the United States provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; William Higgins, Acting Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; and Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Burnsville Man Sentenced to 20 Years in Prison for Producing Child Pornography via Instagram and X-BoxRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MARCUS ALEXANDER HINKLE, 22, to 240 months in prison for producing child pornography using Instagram and X-Box. HINKLE, who pleaded guilty on September 19, 2018, to two counts of was sentenced before Judge Susan Richard Nelson in U.S. District Court in Saint Paul, Minnesota.
U.S. Attorney MacDonald said, “Sextortion crimes such as this are prevalent and often victimize the most vulnerable in our society, children. This office will continue to use all available resources to prosecute and prevent these devastating crimes.”
According to the defendant’s guilty plea and documents filed in court, from May 2017 through July 2017, HINKLE used several Instagram accounts he created under various names, including “Nation_Of_Nerve,” “Nation_Of_Nerve_VIP,” and “Globalspamnation,” to contact and communicate with minor males. HINKLE also used an X-box to communicate with the minors and to obtain sexually explicit images. HINKLE falsely represented to the minors that he was fifteen years old.
According to the defendant’s guilty plea and documents filed in court, in May of 2017, HINKLE contacted Minor #1 via Instagram and, through the course of their on-line conversations, HINKLE pressured Minor #1 to send sexually explicit images and videos. Between late June and early July of 2017, HINKLE used Minor #1 to be “introduced” to Minor #2 and, after approximately one week of communicating on-line, HINKLE asked Minor #2 to send to him sexually explicit images and videos via Instagram. HINKLE continued to pressure Minor #2 for more sexually explicit images and videos and threatened to post sexually explicit pictures of Minor #2 in a group chat if he did not comply. HINKLE did in fact send out a group chat message that contained sexually explicit pictures of Minor #2. Hinkle admitted to engaging in the same conduct with other minors. More than a dozen minors were victimized by HINKLE.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing 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.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case was prosecuted by Assistant United States Attorney Carol M. Kayser.
This case is the result of an investigation conducted by the FBI, the Eagan Police Department, and the Warren (Michigan) Police Department.
Defendant Information:
MARCUS ALEXANDER HINKLE, 22
Burnsville, Minn.
Convicted:
- Production of child pornography, 2 counts
Sentenced:
- 240 months in prison
- Lifetime of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Brooklyn Man Pleads Guilty for His Role in Identity Theft ScamRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Jeriel Slay, 29, of Brooklyn, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to commit wire fraud and aggravated identity theft. The charges carry a maximum penalty of 22 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that on December 14, 2016, the defendant devised a sophisticated scheme to fraudulently obtain the personal identifying information (PII) of multiple victims from the internet. Slay then opened Limited Liability Companies (LLCs) that were named in such a way as to indicate ownership by the victim.
For example, the defendant fraudulently obtained Victim 1’s PII, including name, address, birthdate, social security number, and other information, and then opened an LLC named “Victim 1 Remodeling LLC.” Slay then, unbeknownst to Victim 1, placed a mail hold on Victim 1’s actual address which prevented Victim 1 from obtaining mail that indicated an LLC was opened in his name. The defendant then posed as Victim 1 to open a bank account in the name of the fraudulent LLC. Slay then contacted Victim 1’s legitimate financial institution and transferred money, via a wire transfer, from Victim 1’s legitimate account to the fraudulent LLC bank account. Slay, using device-making equipment, then created fraudulent driver’s licenses, fraudulent utility bills, and other identification documents in the name of Victim 1. Using these fraudulent documents, Slay then ordered a co-conspirator to go to the bank that serviced the fraudulent LLC bank account to withdraw and deplete the funds from the fraudulent account.
The defendant executed this scheme against more than 10 victims, one of whom resides in the Western District of New York. The total loss was $978,793.87.
Slay was charged along with his sister Angela Slay, Michael Wright and Sirr Wright. Michael Wright was also convicted of conspiracy to commit wire fraud and aggravated identity theft, and is awaiting sentencing. Charges remain pending against Angela Slay and Sirr Wright. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for October 18, 2019, at 12:30 p.m. before Judge Arcara.
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Brockton Man Indicted for Federal Drug OffensesRead the Press Release
BOSTON – A Brockton man was charged in federal court in Boston yesterday with distributing fentanyl and cocaine.
Rayshawn DaCruz, 23, was indicted on four counts of distribution of a controlled substance. DaCruz was arrested and charged in May 2019 in Brockton.
According to charging documents, on April 4, April 16, May 2, and May 6, 2019, DaCruz distributed various amounts of fentanyl and cocaine to an undercover police officer.
Each charge of distribution of a controlled substance provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bossier Parish Community College comptroller, 2 others indicted for stealing more than $250,000Read the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a federal grand jury indicted Carol Bates, 48, Faith Alexander, 27, and Marquise Perry, 34, all of Shreveport, Wednesday for stealing more than a quarter of a million dollars from Bossier Parish Community College (BPCC).
All three were charged with one count of conspiracy to commit wire fraud. In addition to the conspiracy to commit wire fraud, Bates was charged with 12 counts of wire fraud and Perry was charged with three counts of wire fraud.
According to the indictment, as the BPCC comptroller, Bates used her position to access an internal BPCC computer system and issue approximately $259,591.87 in refunds to Alexander, Perry and five others from 2013 to 2016. They were not qualified to receive the funds, and, in most cases, they were not even attending BPCC during the semesters they received the monies. In total, Bates caused 45 fraudulent refunds to be issued. Perry received seven refunds totaling $49,524.65 from 2015 through 2016 and Alexander received eight refunds totaling $45,482.65 from 2014 through 2016. The remaining 30 refunds were issued to five unnamed co-conspirators who, after receiving the money, transferred two-thirds or a half of it to Bates.
If convicted, the defendants face 20 years in prison, three years of supervised release, restitution and a $250,000 fine for each count.
The U.S. Department of Education, Office of Inspector General, and the Louisiana Office of State Inspector General conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Attorney General’s Advisory Subcommittee on Native American Issues Meets to Discuss Violent Crime in Indian CountryRead the Press Release
The Native American Issues Subcommittee convenes on June 25 at the Eisenhower Executive Office Building to discuss violent crime in Indian Country during the U.S. Attorney's National Conference in Washington, D.C.WASHINGTON – Attorney General William P. Barr’s Advisory Subcommittee on Native American Issues (NAIS) convened this week during the U.S. Attorney’s National Conference in Washington, D.C., to discuss a wide range of justice issues affecting Indian Country, announced U.S. Attorney Trent Shores, Chair, and U.S. Attorney Kurt Alme, Vice Chair.
“The Native American Issues Subcommittee is focused on reducing violent crime against women and children in Indian Country, including missing and murdered indigenous persons,” said U.S. Attorney Trent Shores. “I am thankful for Attorney General Barr’s leadership on these issues. He understands the law enforcement and jurisdictional challenges faced by Native Americans and Alaska Natives. We look forward to working with him and with our federal, tribal, state and local partners to find viable solutions that will improve public safety in Indian country.”
On Tuesday, the NAIS met with Tara Katuk Mac Lean Sweeney, Assistant Secretary of Indian Affairs, Department of the Interior, and discussed cross-agency collaboration in order to provide more responsive and effective justice services to Indian Country. They further discussed Indian Country case investigations, case intake and tracking databases, and tribal law enforcement resource allocation. The NAIS also reviewed President Trump’s priorities for Indian Country justice. Those priorities include protecting Native American children in the Indian Health Services system, collaboration among Department of Justice, the Department of the Interior, and tribal law enforcement agencies, reducing violent crime, and providing services to help victims to overcome trauma.
On Wednesday, Trent Shores, NAIS Chair and U.S. Attorney for the Northern District of Oklahoma, moderated a panel titled Murdered and Missing Indigenous Women: A Crisis in Urban America & Indian Country. Panelists included Charles Addington, Director of the Office of Justice Services, Bureau of Indian Affairs; Kurt Alme, U.S. Attorney for the District of Montana; Tracy Toulou, Director of the Office of Tribal Justice; Laura Rogers, Acting Director of the Office on Violence Against Women; and Bryan Vorndran, Deputy Assistant Director of the FBI. The panel discussed the development and implementation of protocols to investigate murdered and missing indigenous persons and how to more accurately measure the scope of the problem in both urban America and Indian Country in order to develop strategies to address it.
In August, the subcommittee is scheduled to reconvene in Indian Country in New Mexico.
The NAIS consists of the approximately 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and makes policy recommendations to the Attorney General regarding public safety and legal issues that impact tribal communities.
The NAIS is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime.
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Attorney General's Advisory Subcommittee on Native American Issues Meets to Discuss Violent Crime in Indian CountryRead the Press Release
WASHINGTON— Attorney General William P. Barr’s Advisory Subcommittee on Native American Issues (NAIS) convened this week during the U.S. Attorney’s National Conference in Washington, D.C., to discuss a wide range of justice issues affecting Indian Country, announced U.S. Attorney Trent Shores, Subcommittee Chair, U.S. Attorney Kurt Alme, Subcommittee Vice Chair and U.S. Attorney Billy J. Williams, Subcommittee Member.
“The Native American Issues Subcommittee is focused on reducing violent crime against women and children in Indian Country, including missing and murdered indigenous persons,” said U.S. Attorney Trent Shores. “I am thankful for Attorney General Barr’s leadership on these issues. He understands the law enforcement and jurisdictional challenges faced by Native Americans and Alaska Natives. We look forward to working with him and with our federal, tribal, state and local partners to find viable solutions that will improve public safety in Indian country.”
“Pursuing justice on behalf of native women is a priority for our office and has been for many years. We are deeply committed to the advancing rights of native women, increasing their access to justice, and combatting invisibility and erasure” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Reducing violence in tribal communities, especially against native women, is a sacred duty. I look forward to continuing to work with my colleagues from the Native American Issues Subcommittee on this issue and many others affecting public safety in Indian Country.”
On Tuesday, the NAIS met with Tara Katuk Mac Lean Sweeney, Assistant Secretary of Indian Affairs, Department of the Interior, and discussed cross-agency collaboration in order to provide more responsive and effective justice services to Indian Country. They further discussed Indian Country case investigations, case intake and tracking databases, and tribal law enforcement resource allocation. The NAIS also reviewed President Trump’s priorities for Indian Country justice. Those priorities include protecting Native American children in the Indian Health Services system, collaboration among Department of Justice, the Department of the Interior, and tribal law enforcement agencies, reducing violent crime, and providing services to help victims to overcome trauma.
On Wednesday, Trent Shores, NAIS Chair and U.S. Attorney for the Northern District of Oklahoma, moderated a panel titled Murdered and Missing Indigenous Women: A Crisis in Urban America & Indian Country. Panelists included Charles Addington, Director of the Office of Justice Services, Bureau of Indian Affairs; Kurt Alme, U.S. Attorney for the District of Montana; Tracy Toulou, Director of the Office of Tribal Justice; Laura Rogers, Acting Director of the Office on Violence Against Women; and Bryan Vorndran, Deputy Assistant Director of the FBI. The panel discussed the development and implementation of protocols to investigate murdered and missing indigenous persons and how to more accurately measure the scope of the problem in both urban America and Indian Country in order to develop strategies to address it.
In August, the subcommittee is scheduled to reconvene in Indian Country in New Mexico.
The NAIS consists of the approximately 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and makes policy recommendations to the Attorney General regarding public safety and legal issues that impact tribal communities.
The NAIS is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime.
Anne Arundel Medical Center to Pay More Than $3 Million to Settle Federal False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Anne Arundel Medical Center (“AAMC”), located in Annapolis, Maryland, has agreed to pay the United States $3,154,000 to settle allegations under the False Claims Act that it submitted false claims to Medicare for services that were not medically necessary.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Maureen Dixon; Norbert E. Vint, Acting Inspector General of the U.S. Office of Personnel Management; and Robert E. Craig, Jr., Special Agent in Charge for the Defense Criminal Investigative Services, Mid-Atlantic Division.
“Companies that submit false bills to the government must be held accountable. The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare and other federal healthcare programs from fraud and abuse and recover taxpayers’ money,” said U.S. Attorney Robert K. Hur.
In or about June 2007, AAMC opened its Anticoagulation Clinic (“the Clinic”) to monitor outpatient’s anticoagulation therapy. Patients who take Coumadin or the generic equivalent have their blood routinely tested to monitor their clotting times. These tests are known as prothrombin time international normalized ration (PT-INR) tests. These tests measure how much time it takes for a patient's blood to clot and can be billed by a clinic using Current Procedural Terminology (CPT) code 85610. If test results indicate the need to adjust a patient’s Coumadin dose, or the patient presented with a change in medical condition, the provider may perform, and submit a claim for, an Evaluation and Management (E/M) service. According to the settlement agreement, between January 1, 2010 and December 31, 2013, AAMC submitted false claims to Medicare, TRICARE, and the Federal Employees Health Benefits Program for E/M services that were not medically reasonable and necessary at the same time it submitted and was paid for claims for the blood tests.
Effective January 1, 2014, CMS updated the hospital outpatient prospective payment system by bundling PT-INR tests with E/M services, when E/M services were provided during the same visit. The new CPT code that the clinic would use is G0463. According to the settlement agreement, between January 1, 2014 and December 31, 2017, AAMC submitted false claims to Medicare for both the bundled code G0463 and CPT 85610, notwithstanding that the PT-INR tests were included in G0463 claims.
The United States alleged that for the time period before January 1, 2014, a substantial percentage of the claims for CPT 99211 submitted by AAMC were not medically reasonable and necessary when submitted with CPT 85610. Further, the United States alleged that after January 1, 2014, all claims submitted by AAMC for CPT 85610 represented false claims when submitted with G0463.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by AAMC, nor a concession by the United States that its claims are not well founded.
Contemporaneous with the civil settlement, AAMC entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG which requires, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks on an ongoing basis. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.
The settlement resolves a lawsuit brought by Barbara McHenry, a former AAMC employee, under the qui tam, or whistleblower, provisions of the False Claims Act, captioned United States, et al. ex rel. McHenry v. Anne Arundel Medical Center, Case No. ELH-15-1256. As part of the settlement, the whistleblower will receive $473,100.
The Maryland United States Attorney’s Office’s action in this matter illustrates its commitment to combat health care fraud using the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
United States Attorney Robert K. Hur commended the U.S. Department of Health and Human Services - Office of Inspector General; OPM-Office of Inspector General; and the Defense Criminal Investigative Services, Mid-Atlantic Division for its work in the investigation. Mr. Hur also thanked Assistant United States Attorney Roann Nichols, who handled the case.
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11 Defendants Charged in Credit Card “Bust Out” SchemeRead the Press Release
Five complaints were unsealed yesterday in federal court in Brooklyn charging 11 defendants in a scheme to defraud banks by using fake, or “synthetic,” identities to obtain credit cards, and making approximately $3 million in charges that were never repaid to the issuing financial institutions. Three of the defendants were also charged with money laundering conspiracy, designed to conceal the source of the proceeds of their scheme. Nine defendants were arrested yesterday. Eight defendants made their initial appearances before United States Magistrate Judge Lois Bloom and were released on bond. One defendant will appear today before Magistrate Judge Bloom. Two defendants are not in custody.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Linda A. Lacewell, Superintendent, New York State Department of Financial Services (DFS), announced the charges.
“As alleged, the defendants operated a ‘bust out’ scheme using fraudulently obtained credit cards to finance expenses, ranging from furniture to real estate and totaling $3 million. Now they will be held accountable,” stated United States Attorney Donoghue. “Together, with our law enforcement partners, we stand committed to protecting financial institutions from fraud.”
“Those arrested today allegedly engaged in fraudulent activities aided by shell companies and collusive merchants to carry out their ‘bust out’ schemes and the laundering of its proceeds, defrauding financial institutions of millions of dollars” stated HSI Special Agent-in-Charge Melendez. “As revealed in this investigation, synthetic identity fraud is ever evolving in sophistication and frequency, creating more challenges for law enforcement and anti-money laundering professionals. HSI New York’s El Dorado Task Force and its partners remain vigilant for emerging criminal trends in its efforts to secure our country’s financial system.”
“While this alleged scheme may seem like a victimless crime, fraud hurts the entire financial system, including banks and credit card companies, with the costs passed down to consumers. DFS is pleased to have partnered with the U.S. Attorney’s Office to bring these defendants to justice, and we will continue to use all of the resources at our disposal to combat fraud,” stated DFS Superintendent Lacewell.
As alleged in court filings, between January 2013 and December 2017, the defendants used synthetic identities created by using various types of personal identification information (names, dates of birth and Social Security numbers) from different individuals to create a fake identity and obtain credit cards from financial institutions. They then used those cards for expenditures that they had no intention to repay, including mortgages on three residential properties in Queens, New York. The defendants also used shell companies, that did little or no legitimate business, to record hundreds of thousands of dollars on the fraudulently obtained credit cards, and then received payment for the sham transactions from financial institutions and credit card processors.
Defendants Bahader Thiara, Hafeez Ali, Mohammad Akhtar, Nadezhda Epshteyn, Cyrus Shroff, Anis Khan, Daljeet Singh, Zainoelbaks Karimbux and Gursimardeep Singh Rai are charged with access device fraud. Bahader Thiara, Perminder Thiara and Shaila Khondkar are also charged with money laundering conspiracy.
If convicted, the defendants charged with access device fraud face up to 10 years’ imprisonment, and up to 20 years for money laundering conspiracy.
The charges are allegations, and the defendants are presumed innocent unless and until convicted.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Temidayo Aganga-Williams and David Lizmi are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Office’s Civil Division is handling forfeiture matters.
The Defendants:
E.D.N.Y. Docket No. 19-MJ-583
MOHAMMED AKHTAR
Age: 43
Flushing, New YorkHAFEEZ ALI
Age: 54
Fort Hamilton, BrooklynE.D.N.Y. Docket No. 19-MJ-566
SHAILA KHONDKAR
Age: 48
Jamaica, New YorkBAHADER THIARA
Age: 42
Queens Village, New YorkPERMINDER THIARA
Age: 40
Queens Village, New YorkE.D.N.Y. Docket No. 19-MJ-570
NADEZHDA EPSHTEYN
Age: 44
Rockaway Park, New YorkCYRUS SHROFF
Age: 45
Rockaway Park, New YorkE.D.N.Y. Docket No. 19-MJ-1029
ZAINOELBAKS KARIMBUX
Age: 50
Bellerose, New YorkGURSIMARDEEP SINGH
Age: 34
Bronx, New YorkE.D.N.Y. Docket No. 19-MJ-571
ANIS KHAN
Age: 32
Sheepshead Bay, New YorkDALJEET SINGH (also known as “Akhtar Iqbal”)
Age: 46
College Point, New York
Wednesday 26 June 2019
“Happy Holidays” Bank Robber Pleads Guilty in Armed Heist of Citizens Bank in CraftonRead the Press Release
PITTSBURGH, PA- A former resident of Crafton, PA, pleaded guilty yesterday in federal court to a charge of armed bank robbery, United States Attorney Scott W. Brady announced today.
Brent Richards, age 33, pleaded guilty before United States District Judge Peter J. Phipps to Count One of the three-count Indictment, which also charges his mother, Melissa Kane, at Count Three.
In connection with the guilty plea, the Court was advised that on January 8, 2018, at approximately 9:18 a.m., Richards, dressed in all black, entered the Citizens Bank located at 31 Foster Avenue, Pittsburgh, Pennsylvania 15205, carrying a black umbrella and, what appeared to be, a black and silver semi-automatic style handgun, which was later determined to be a bb-gun. The Court was further informed that Richards pointed the bb-gun at two of the tellers, placed a white bag on the counter and demanded that the tellers empty their drawers of cash. Richards took $10,003 from the bank and, when exiting the bank, stated: "Sorry, Happy Holidays."
Judge Phipps scheduled sentencing for October 16, 2019, at 10:30 a.m. The law provides for a maximum total sentence of 25 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Richards remains in custody pending sentencing.
Assistant United States Attorneys Rebecca L. Silinski and Timothy M. Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Crafton Borough Police Department, the Allegheny County Sherriff’s Office, and the West Mifflin Police Department conducted the investigation that led to the prosecution of this case.
Wheeling man and Columbus man admit to role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Two men have admitted to their roles in a cocaine and heroin distribution operation, United States Attorney Bill Powell announced.
Andre Hager, also known as Andyman, of Wheeling, pled guilty to one count of “Conspiracy to Distribute Cocaine Base and Heroin.” Hager, age 47, admitted to distributing cocaine and heroin, in Ohio County from April 2018 to September 2018.
Joshua Ford, also known as “Fatboy,” of Columbus, Ohio, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1,000 feet of a Protected Location.” Ford, age 29, admitted to selling cocaine near Jensen Playground on Wheeling Island in May 2018.
Hager and Ford are each facing no less than one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. Magistrate Judge James P. Mazzone presided.
Van Buren Man Sentenced to Life in Federal Prison for Sexually Abusing Two MinorsRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Diane Upchurch, Special Agent in Charge with the Little Rock FBI, announced that Stanley Rice, age 59, of Van Buren, Arkansas, was sentenced today to Life in federal prison without the possibility of parole on two (2) Counts of Transportation of a Minor with Intent to Engage in Criminal Sexual Activity. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, in February of 2017, a 16-year-old female reported to law enforcement that Rice had been sexually abusing her since she was approximately six years of age. In particular, the minor disclosed that Rice, on multiple occasions, transported her from Arkansas to the state of Texas, and sexually abused her while there. One specific instance verified by law enforcement involved the sexual abuse of the minor female by Rice when she was 9 years of age.
Additionally, while investigating the case, law enforcement located an adult male, who stated that when he was a minor, Rice likewise sexually abused him. Specifically, the adult male disclosed that when he was approximately 15 years of age, Rice transported him from Arkansas to Texas and performed oral sex on him while there.
“This case is a great reminder of the important work that we do in our office and the great mission that we undertake here to ensure that justice is achieved,” stated Kees. “This is especially true for these victims, who are among the most vulnerable members of our community.”
“Rice’s actions in sexually assaulting minors is incorrigible and it is unimaginable how these individuals felt,” stated Upchurch. “We appreciate the dedicated assistance from the Crawford County Sheriff’s Office and the United States Attorney’s Office for the Western District.”
Rice was indicted by a federal grand jury in August of 2018. In February of 2019, Rice pleaded guilty to transporting both minors from Arkansas to the state of Texas for purposes of sexually abusing them.
This case was investigated by the Crawford County Sheriff’s Office and the FBI. Assistant United States Attorney Carly Marshall prosecuted the case for the United States.
U.S. Attorney’s Office Holds Debt Collector Responsible for Collection Practices, Company Agrees to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA – United States Attorney William McSwain announced today that BARR Credit Services, Inc., a commercial debt collection company based in Tucson, Arizona, has agreed to pay $55,793 and start a compliance program to resolve the government’s claims against it under the False Claims Act. The agreement arises from BARR Credit’s attempts to collect debts from the Federal Bureau of Prisons on behalf of Scholars in Print, a telemarketing firm in Bucks County, Pennsylvania.
In 2018, the government filed a complaint against Scholars in Print alleging that it operated a telemarketing scheme. According to the federal court complaint, the telemarketing company submitted false claims to the Bureau of Prisons for textbooks that nobody ordered or wanted. Scholars in Print allegedly hired debt collectors to collect unpaid invoices. The parties resolved that case through a consent judgment. Today’s settlement agreement follows that consent judgment.
In the agreement announced today, the United States contends that BARR Credit, one of Scholars in Print’s debt collectors, knew or should have known that the textbook invoices were fraudulent. Teachers, librarians, non-profit organizations, and public officials told BARR Credit that Scholars in Print operated a fraud scheme and explained how it worked, according to the government’s allegations in the agreement. The United States contends that BARR Credit created records describing these fraud reports, and therefore BARR Credit acted recklessly when it tried to collect similar debts from the Bureau of Prisons.
As part of the resolution, BARR Credit admitted that its quality control procedures did not adequately identify the suspect nature of Scholars in Print’s invoices. To resolve the allegations, BARR Credit will pay $55,793 and will not resume collection efforts for Scholars in Print or its operators, John Paul Ryan and Mary Motz Ryan.
BARR Credit will also start a compliance program designed to protect the public from similar harm. As part of that program, BARR Credit will implement quality control procedures, adopt policies, and monitor customer accounts to identify patterns of fraud reports or suspicious debts. BARR Credit will supervise its debt collectors to prevent them from demanding payment from public or private schools, libraries, non-profit organizations, and federal, state, or local public agencies or officials without first possessing documentary proof that the entity incurred the debt legitimately.
In addition to taking these measures, BARR Credit will train its employees annually about state and federal procurement procedures and government purchasing in order to identify fraudulent debts. BARR Credit will certify its compliance annually during the agreement’s five-year term.
While not admitting liability, BARR Credit acknowledged that any attempt to demand payment from federal agencies for alleged debts can result in False Claims Act liability if the debts are not bona fide debts that comply with federal procurement procedures.
“Debt collectors should do their homework before trying to collect payment from federal agencies,” said U.S. Attorney McSwain when announcing the resolution. “The False Claims Act governs their conduct, so they should not try to collect taxpayer money unless they have a legitimate, documented debt to back it up. My Office stands ready with our federal partners to investigate these claims to protect consumers and taxpayers.”
“The OIG is committed to investigating companies whose reckless attempts at debt collection cause them to make false claims to the Bureau of Prisons. We will work tirelessly with our law enforcement partners to ensure those who do not conduct their due diligence under the law are held accountable,” stated Lewe F. Sessions, Special Agent-in-Charge of the U.S. Department of Justice Office of the Inspector General’s Fraud Detection Office.
Assistant United States Attorney Michael S. Macko handled the case with investigative assistance from the United States Department of Justice Office of Inspector General.
Two International Shipping Executives Indicted for Participating in Long-Running Antitrust ConspiracyRead the Press Release
An indictment of two Norwegian shipping executives was unsealed in the U.S. District Court in Baltimore, the Department of Justice announced today.
Ingar Skiaker and Øyvind Ervik have been charged with participating in a long-running conspiracy to allocate certain customers and routes, rig bids, and fix prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. A federal grand jury returned the indictment in February 2018.
Skiaker and Ervik, both Norwegian citizens, are former top executives at Höegh Autoliners AS, which has pleaded guilty and been sentenced to pay a $21 million fine. Including the charges announced today, 13 executives have been charged in the investigation to date. Four have pleaded guilty and been sentenced to serve prison terms. Others remain international fugitives. Including Höegh, five companies have also pleaded guilty for their roles in this conspiracy, resulting in total collective criminal fines over $255 million.
The indictment alleges that, from at least as early as 2006 and continuing at least until September 2012, Skiaker and Ervik conspired with their competitors to allocate certain customers and routes for the shipment of cars and trucks. The defendants accomplished their scheme by, among other things, attending meetings during which they agreed not to compete against each other, and by refraining from bidding or by agreeing on the prices they would bid for certain customers and routes. In addition, Skiaker and Ervik agreed with competitors to fix, stabilize, and maintain rates charged to customers of international ocean shipping services. The customers affected by the conspiracy included U.S. companies.
“The Division’s investigation revealed that collusion was endemic and rampant in the shipping industry going back years,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The indictment unsealed today advances the Division’s mission to restore and promote open competition. Höegh has already pleaded guilty, and now we must ensure that its executives will be held accountable.”
“The schemes that took place in perpetuating this long-running conspiracy show a clear indifference for the free market, and a willful disregard for the law,” said Special Agent in Charge Jennifer C. Boone for the FBI Baltimore Field Office. “The protection of international commerce and victims affected by such schemes remain a priority for the FBI and we will continue to dedicate resources to these types of investigations in order to protect the United States economy.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Today’s announcement is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Baltimore Field Office at 410-265-8080.
Two Head to Prison in Kidnapping ConspiracyRead the Press Release
HOUSTON – A Mexican national and a U.S. citizen have been ordered to federal prison following their convictions of conspiracy for attempting to commit the kidnapping of a Houston man, announced U.S. Attorney Ryan K. Patrick. Julio Cesar Garcia-Longoria, a 42-year-old Mexican National from Nuevo Laredo, and Iraida Griselda Hernandez, 42, of Houston, pleaded guilty Oct. 12, 2018.
Today, U.S. District Judge David Hittner imposed a 175-month sentence for Garcia-Longoria, while Hernandez was ordered to serve 135 months to be followed by five years of supervised release. Not a U.S. citizen, Garcia-Longoria is expected to face deportation proceedings following his sentence.
Hernandez was also charged in an unrelated federal drug trafficking conspiracy involving the delivery of 7.5 kilograms of cocaine. She was also sentenced in that case today to another 135 months which was ordered to run concurrently.
Between Jan. 10-18, 2018, Garcia-Longoria enlisted the assistance of Hernandez in Houston to have a Houston man kidnaped in an effort to recoup a drug trafficking debt of up to $1.7 million. Authorities were alerted to the plot which he had participating in via cell phone from Monterrey, Mexico.
Hernandez gathered biographical information on the Houston man and identified his residence. Law enforcement contacted him and enlisted his assistance to thwart the plot. The victim agreed to pose for photos, appearing bound, which were then sent to Hernandez and Garcia-Longoria.
The defendants made it clear the intended victim owed money to a drug cartel in Mexico and efforts should be made to extort money from the victim’s family. Garcia-Longoria stated that the victim should be killed if he tried to get away. He agreed to pay a total of between $8,000 and $10,000 for the job.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Edward Gallagher is prosecuting the case.
Troy Man Pleads Guilty to Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Michael Varian, age 52, of Troy, New York, pled guilty today to one count of attempted online enticement of a minor, announced 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).
As part of his guilty plea, Varian, a school bus driver, admitted that he attempted to entice an individual, whom he believed to be a 14-year-old boy, to have sex. After weeks of exchanging sexually explicit text messages with undercover law enforcement officers posing as the boy, Varian arranged to meet the boy at a fast food restaurant in Albany County, where Varian was arrested. As part of the plea, Varian also admitted that he had a prior sexual encounter with a minor boy in the public bathroom of an Albany County mall.
As a result of his conviction, Varian faces at least 10 years and up to life in prison, and a term of post-release supervision of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Sentencing is scheduled for October 16, 2019 before Senior United States District Judge Thomas J. McAvoy. Varian will also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of state and local law enforcement agencies, including the Town of Colonie Police Department, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Megan Kinsella Kistler.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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 https://www.justice.gov/psc
Three Marketers Plead Guilty to Violations of Federal Anti-Kickback StatutesRead the Press Release
Three marketers have pleaded guilty in U.S. District Court to offering or paying illegal kickbacks to physicians in relation to the government health care insurance programs Medicare, TRICARE, and the FECA Program, announced U.S. Attorney Trent Shores
Daniel Richard Ferguson, 47, of Broken Arrow; John Richard Frohrip, 52, of Tulsa; and Kevin Ellis Partin, 49, of Bixby, were charged this month in three separate Informations with offering or paying health care kickbacks. The men caused federal health care insurance programs to pay reimbursement costs for expensive compounding drug prescriptions written by recruited doctors in return for kickback payments. The defendants would then use the reimbursed funds for their own financial gain.
“Kickback schemes undermine the integrity of government healthcare programs and raise healthcare costs for Americans. These greed fueled schemes frustrate patient-oriented decision-making because doctors make prescription and pharmacy decisions based on their personal financial enrichment,” said U.S. Attorney Trent Shores. “Professionals in the healthcare market in northern Oklahoma should be on notice by now that kickback schemes will be exposed and those involved held accountable.”
In their plea agreements, the men acknowledged offering to pay kickbacks to physicians and that on March 30, 2015, they allegedly paid a physician, Dr. John Main, of Tulsa, a $15,000 check payment from an account controlled by Brookhaven Specialty Pharmacy, LLC, which constituted a kickback in return for the physician referring patients to Brookhaven for compounding prescriptions that would be reimbursed by the federal health care program Tricare.
Violating the anti-kickback statute carries up to five years in prison and a $250,000 possible fine.
Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the cases. The IRS- Criminal Investigation; U.S. Postal Service- Office of Inspector General (OIG); Department of Veterans Affairs- OIG; FBI; Department of Health and Human Services- OIG; Defense Criminal Investigative Service; and Department of Labor- OIG conducted the investigation.
Ten Year Prison Term Imposed for a Fentanyl DistributorRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Taylor Fertig, age 24, of Kennewick, Washington, was sentenced after having pleaded guilty to Conspiracy to Distribute 400 grams or more of Fentanyl. Senior United States District Judge Edward Shea imposed a 10-year term of imprisonment, to be followed by a 5-year term of court supervision after release from federal prison.
According to information disclosed during court proceedings, Fertig was identified as one of the first major distributors of Fentanyl-laced pills that are unlawfully made to appear to be prescription oxycodone medication. Fentanyl, an extremely potent opioid, is largely responsible for the marked increase in drug overdoses and deaths in this District. As Judge Shea noted during the sentencing hearing, Fentanyl is the most dangerous and insidious drug facing our community today and, based upon the quantity of pills being sold by Fertig and his negative impact on this community, in combination with his possession of multiple firearms, a ten year sentence was appropriate.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington will aggressively prosecute cases involving fentanyl distribution, and the sentence imposed in this case demonstrates that fentanyl dealers will be held accountable for their illegal conduct. I commend the outstanding investigative work of our federal, state, and local law enforcement partners.”
DEA Special Agent in Charge Keith Weis was pleased with the sentencing further adding that “Opioid abuse is spreading like wildfire devastating our communities and we will aggressively pursue those most responsible for fueling the flames.”
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the U.S. Drug Enforcement Administration.
This case was investigated by the Spokane Resident Office of the Drug Enforcement Administration in partnership with the Kennewick, Pasco and Richland Police Departments. This case was prosecuted by Stephanie Van Marter, an Assistant United States Attorney for the Eastern District of Washington.
Stamford Sex Offender Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, announced that BRIEN PENNELL, 31, of Stamford, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of receipt of child pornography.
According to court documents and statements made in court, in February 2008, Pennell was convicted in state court of sexual assault and possession of child pornography offenses. Pennell served 30 months in prison and was sentenced to 15 years of probation for those offenses.
On February 2, 2018, after an investigation revealed that an IP address registered to Pennell was being used to share images and videos of child pornography via the Kik application, Connecticut probation officers conducted a compliance search of Pennell’s residence and vehicle and seized various electronic media, including a smart phone and a tablet, both of which were located in a hidden compartment under the steering wheel of Pennell’s vehicle.
Subsequent analysis of the seized electronic devices, Pennell’s Kik account and a Dropbox account he maintained, revealed 148 videos and 40 images of child pornography, some of which depict children younger than 12 engaging in sexually explicit conduct.
Pennell is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on September 12, 2019, at which time Pennell faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years. The minimum and maximum penalties in this case are enhanced based on Pennell’s criminal history.
Pennell has been detained since his federal arrest on March 20, 2018.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with the assistance of Connecticut’s Office of Adult Probation and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
St. Louis County Dentist Pleads Guilty to Illegal Prescriptions for Opioid Narcotic Drugs and Medicare FraudRead the Press Release
St. Louis, MO – Bradley A. Seyer, D.D.S., 53, of Florissant, Missouri, pled guilty today to two felony charges for making false statements to Medicare and illegally distributing narcotic opioid drugs, specifically hydrocodone, without a legitimate medical purpose. Seyer appeared before U.S. District Judge Ronnie White who accepted his plea and set his sentencing for September 25, 2019.
According to the plea agreement, Dr. Seyer provided a hydrocodone prescription to a woman identified by her initials E.A. in the plea agreement. Dr. Seyer has a personal relationship with E.A. that lasted over ten years. Dr. Seyer gave E.A. money and jewelry, and took her on vacation trips. During their relationship, defendant prescribed E.A. with over 14,000 units of Alprazolam (sometimes marketed and sold as Xanax®), Diazepam (sometimes marketed as Vaium®), Carisoprodol (sometimes marketed and sold as Soma®), Hydrocodone, and Tramadol (sometimes marketed and sold as Ultram®). Dr. Seyer prepared and kept some dental treatment records for E.A., but they are incomplete. Dr. Seyer’s records fail to contain all of the prescriptions that he prescribed for E.A. Further, the records do not document office visits and examinations by Dr. Seyer of E.A. before he issued some of the prescriptions.
In his plea agreement, Dr. Seyer admitted that he and E.A. together consumed some "street" and prescription drugs for recreational purposes. E.A. often requested prescription drugs by text, leading Dr. Seyer to call in the prescriptions at her request. E.A. was depressed and had suicidal ideation, and had a history of mental illness. On several occasions during summer 2018, Dr. Seyer and E.A. discussed her desire to commit suicide. Ultimately, E.A. died at her home during July of 2018 of a fentanyl overdose. Dr. Seyer did not prescribe fentanyl to E.A.
Further, in the plea agreement, Dr. Seyer admitted that he prescribed Tramadol® to E.A.’s father, identified by his initials in the plea agreement as G.A. G.A. has Medicare coverage. Dr. Seyer had no records showing any dental treatment for G.A. However, Dr. Seyer issued five prescriptions to E.A. using G.A.'s name, and Medicare paid for these five prescriptions, including a Tramadol® prescription dated December 2, 2015.
“The diversion of licit opioids for illicit purposes is illegal no matter the circumstances and when carried out by a member of the medical community is nothing but irresponsible and dangerous. Medical professionals are trained to responsibly dispense opioids, and those who don’t violate every aspect of the oath to protect human life,” said Special Agent in Charge William Callahan of the DEA’s St. Louis Division. “This behavior is unlawful, which is why the DEA will continue our fight to expose violators, including those who operate behind the shield of a medical license.”
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Our office will continue to vigorously pursue healthcare providers who submit improper claims for reimbursement to publicly funded healthcare programs and, more specifically abuse their position by irresponsibly prescribing narcotics that endanger the well-being of their patients.”
The charges of false statements to Medicare carry a maximum penalty of 5 years in prison and a $250,000 fine. The drug distribution charge has a maximum penalty of either 10 years in prison and 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. Sentencing has been set for September 25, 2019.
This case was investigated by the Department of Public Safety for the City of Des Peres, Missouri and the U.S. Drug Enforcement Administration, with assistance from the Bureau of Narcotic and Dangerous Drugs of the Missouri Department of Health and Human Services, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.
Springfield Business Owner Sentenced to 25 Years for Leading Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for leading a conspiracy to distribute large quantities of methamphetamine.
Christopher A. Jefferson, 46, was sentenced by U.S. District Judge M. Douglas Harpool to 25 years in federal prison without parole. Jefferson, who has two prior state convictions for distribution/delivery of a controlled substance, was sentenced as a career offender due to his prior drug-trafficking convictions. Jefferson owned a car repair business in Springfield.
On Oct. 25, 2018, Jefferson pleaded guilty to his role in the drug-trafficking conspiracy that lasted from Dec. 2, 2016, to Jan. 23, 2018. During the course of the investigation, law enforcement officers seized a total of 5.342 kilograms of methamphetamine from various co-conspirators.
Jefferson frequently used women to transport illegal drugs, including large quantities of methamphetamine in vehicles and smaller quantities of cocaine and heroin hidden inside of their vaginas. They were paid to drive to Texas, Arizona, or California to pick up methamphetamine and other drugs and transport them back to Springfield. Several women admitted they made multiple trips to acquire illegal drugs, sometimes in multi-kilogram quantities.
Co-defendant Kathy J. Alexander, 62, of Springfield, was arrested while driving through Amarillo, Texas, on Jan. 11, 2016, with a half-pound of heroin and six pounds of methamphetamine that she was transporting from Arizona to Springfield. Alexander had also been stopped, but not arrested, on Dec. 2, 2014, by law enforcement officers in Oklahoma while she was transporting five ounces of heroin hidden in her underwear. Alexander admitted that she had made 14 drug-transporting excursions, averaging one trip each month, for which she was paid $500 per trip. Alexander pleaded guilty and was sentenced to seven years in federal prison without parole.
Co-defendants Davetta F. Hicks, 31, and Shawn B. Robinson, 48, both of Springfield, were arrested on Dec. 9, 2014, by Kingsville, Texas, police officers. This was their third trip to Texas for Jefferson. Officers found a half-pound of methamphetamine in Hicks’s purse. Hicks admitted that she made three trips to Texas to transport cocaine, heroin and methamphetamine to Springfield. Hicks pleaded guilty and was sentenced to five years and 10 months in federal prison without parole. Robinson pleaded guilty and was sentenced to six years in federal prison without parole.
Undercover law enforcement officers also purchased methamphetamine from Jefferson’s distributors. Undercover officers purchased a total of 115 grams of methamphetamine in six separate purchases, all of which was supplied by Jefferson.
On one occasion, according to court documents, conspirators traveled to California with a large amount of money to purchase methamphetamine. Once in California, they purchased 12 pounds of methamphetamine that was shipped to Springfield.
On another occasion, conspirators attached a four-pound package of methamphetamine to the front bumper of their vehicle and drove back to Springfield. During the return trip, however, Maricopa County, Arizona, law enforcement officers arrested them and seized the methamphetamine.
On two occasions, a co-conspirator carried two kilograms of methamphetamine to Springfield aboard a commercial bus.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, and COMET (the Combined Ozarks Multijurisdictional Enforcement Team).
Sells Man Sentenced to 31 Months' Federal Prison for Assault with a HammerRead the Press Release
TUCSON, Ariz. – On June 25, 2019, Eli Lawrence Manuel, 30, of Sells, Ariz., was sentenced by U.S. District Judge James A. Soto to 31 months of imprisonment to be followed by three years of supervised release. Manuel had previously pleaded guilty on March 6, 2019, to assault with a dangerous weapon.
On July 6, 2017, Manuel assaulted the victim, a pregnant woman, by striking her on her forehead and stomach with a hammer. The assault happened on the Tohono O’odham Nation Indian Reservation. Both Manuel and the victim are enrolled members of the Tohono O’odham Indian Tribe.
The investigation in this case was conducted by the Tohono O’odham Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raquel Arellano and Christopher J. Curran, Assistant U.S. Attorneys, District of Arizona, Tucson.
Republic Man Sentenced to 20 Years for Coercion and Enticement of a MinorRead the Press Release
SPRINGFIELD, Mo. – A Republic, Missouri, man was sentenced in federal court today for the coercion and enticement of a minor.
Clifford Benjamin Kinkade, 37, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. The court also sentenced Kinkade to 15 years of supervised release following incarceration, and ordered him to pay $29,417 in restitution to his victim.
On Oct. 9, 2018, Kinkade pleaded guilty to using the internet and a cell phone to attempt to entice a child victim to engage in illegal sexual activity.
According to court documents, Kinkade met the 14-year-old child victim, identified as “Jane Doe,” online through one of her friends. They communicated primarily through text messages and through Kik and Skype. Investigators seized Kinkade’s computer, cell phone, and tablet, which contained messages between Kinkade and the child victim. Many of the messages were sexual in nature, where Kinkade described sexual activities he would like to engage in with Jane Doe and asked her to engage in sexual activity.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, and the Kentucky State Police.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Project Parkersburg Update: Parkersburg Man Sentenced to Prison for Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Edward Marks, 33, of Parkersburg, was sentenced to 60 months in prison for conspiracy to distribute 50 grams or more of methamphetamine. Marks was prosecuted as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin. Stuart commended the investigative efforts of the FBI, the Parkersburg Police Department, the Dayton Ohio Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court, the seizure of 121 pounds of ICE methamphetamine, six kilograms of cocaine, 217 grams of heroin, and 290 grams of fentanyl.
“Marks is one of the 17 individuals charged in a federal indictment as a result of Project Parkersburg,” said United States Attorney Mike Stuart. “The law enforcement operation shut down a significant DTO responsible for trafficking massive amounts of drugs in Wood County and elsewhere.”
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Penn Medicine Agrees to Pay $275,000 to Settle False Claims Act AllegationsRead the Press Release
PHILADELPHIA, PA – United States Attorney William McSwain announced today that the Trustees of the University of Pennsylvania Health System (“Penn Medicine”) agreed to settle allegations under the False Claims Act that the Lancaster General Hospital’s division of Maternal Fetal Medicine (LGH-MFM), a component of Penn Medicine, submitted false claims to Medicaid for obstetric ultrasounds.
The government alleges that, from approximately May 1, 2017 through December 31, 2017, LGH-MFM had insufficient physician staff to properly handle its patient volume. As a consequence, the government alleges that during this period, LGH-MFM physicians failed to timely complete professional reports interpreting many of the ultrasound studies that they ordered for their obstetric patients. Such a timely report is required for Medicaid to reimburse a physician for professional interpretation of an ultrasound. Further, extreme delays in completing such a report can render the report and interpretation worthless.
Specifically, the government alleges that in many instances, LGH-MFM physicians did not finalize professional reports of ultrasound studies until more than thirty days after the ultrasound was performed. In over 10% of cases during this time period, the report was not completed until more than 90 days after the ultrasound was performed, and in some cases not until after the patient delivered. The government alleges that LGH-MFM violated the False Claims Act by nevertheless submitting claims for reimbursement to Medicaid for ultrasound interpretations when it knew or should have known the claims were not reimbursable due to the extreme delays in completing the physician’s reports.
“Maternal-fetal medicine physicians manage the most high risk and complex pregnancies,” said U.S. Attorney McSwain. “This alleged conduct not only demonstrated an abuse of the Medicaid program, but had troubling potential implications for patient care. Medicaid beneficiaries, especially expectant mothers carrying high risk pregnancies, deserve better. We thank the citizens who brought this concerning situation to our attention.”
“Timely report writing is important for patient care and the proper billing of Medicaid,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “HHS-OIG is committed to working with the U.S. Attorney’s Office, our law enforcement partners, and the public to ensure the integrity of federal health care dollars.”
The U.S. Attorney’s Office opened this investigation in response to a tip from citizens. This case was not brought pursuant to the qui tam provisions of the False Claims Act
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorney John T. Crutchlow and Auditor Dawn Wiggins.
Newberry Man Sentenced to Federal Prison for Federal Firearm Charge Stemming from Vista ShootingRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Maleik Houseal, age 23, of Newberry, was sentenced to almost 6 ½ years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed at approximately 2:12 am on September 16, 2017, a shooting between a group of rival gang members from Newberry occurred outside the Empire Supper Club in the Vista entertainment district of Columbia. It was a college football weekend and the Vista area was full of people. All total, seven individuals, including Houseal, were shot during the incident. The investigation revealed that Houseal had been shot in the hip two weeks earlier and was involved in an ongoing gang dispute in Newberry. The investigation showed that when the club closed at 2:00 am, as people spilled out onto the sidewalks, Houseal went to the parking lot and retrieved a firearm from the top of a car tire, where he had stored it. Houseal, armed with the firearm, returned to the sidewalk area outside of the club, where he encountered the other group of individuals from Newberry, who were headed to their cars in the parking lot. As the other group left the club parking lot, they fired weapons from their cars in Houseal’s direction, striking Houseal and others. Houseal ran after the cars while firing his 9mm handgun in their direction, discharging all 15 rounds. He then discarded the handgun in a pile of chairs outside the club, where it was later recovered.
Federal law prohibits Houseal from possessing firearms and ammunition based upon his prior state convictions for burglary 2nd degree, carrying a firearm in a public building/adjacent area, carrying an unlawful weapon (two separate convictions), burglary 3rd degree, obstruction of justice, and possession with intent to distribute marijuana. At the time of the September 2017 shooting, Houseal was both on state probation and on state bonds for incidents that occurred after his release from the South Carolina Department of Corrections in May 2017.
United States District Judge Mary Geiger Lewis of Columbia sentenced Houseal to 77 months in federal prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system. In denying Houseal’s motion for a reduced sentence based upon his assertion that the other group fired shots first and that he was merely defending himself, Judge Lewis stated, “to pop off 15 rounds in a crowded area is about the most irresponsible and careless and thoughtless thing you could do.” Noting Houseal’s extensive criminal record at the age of 23 and his propensity for firearms, the court stated “you’re exactly the reason we have [firearm] laws like that.”
The case was investigated by the Federal Bureau of Investigation (FBI), the Columbia Police Department, and the Richland County Sheriff’s Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
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New Kensington Man Charged with Heroin PossessionRead the Press Release
PITTSBURGH, Pa – A former resident of New Kensington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Kevin Watson, age 29, as the sole defendant.
According to the Indictment, on or about April 26, 2019, Watson possessed with intent distribute 100 grams or more of heroin.
The law provides for a maximum sentence of not less than five years and not more than life in prison, a fine of not more than $5,000,000.00, 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, of the defendant.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Drug Enforcement Administration 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.
New Haven Man Indicted for Crack Cocaine OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting New Haven returned an indictment today charging KEISHAN SULLIVAN, also known as “Stack Boy Kee,” 24, of New Haven, with one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”).
As alleged in court documents, in January 2019, members of the Connecticut State Police Statewide Narcotics Task Force conducted controlled purchases of crack cocaine and heroin from Sullivan. On May 2, 2019, a court-authorized search of Sullivan’s residence revealed approximately 94 grams of crack cocaine, 485 grams of marijuana, $14,000 in cash, digital scales and other items used to process and package drugs for street sale. Sullivan was arrested on state charges on that date and was subsequently released on bond.
It is further alleged that, on June 5, 2019, investigators conducted another controlled purchase of crack from Sullivan.
Sullivan has been detained since his arrest on a federal criminal complaint on June 13, 2019.
The charge of with one count of possession with intent to distribute 28 grams or more of cocaine base carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut State Police Statewide Narcotics Task Force, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Natchitoches man sentenced to 25 years in prison for methamphetamine, firearm offensesRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Reginald T. Warren, 37, of Natchitoches, Louisiana, was sentenced Tuesday to 300 months in prison by U.S. District Judge Dee D. Drell for possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug-trafficking crime. He was also sentenced to five years of supervised release.
According to the guilty plea, law enforcement agents with the Natchitoches Multi-Jurisdictional Drug Task Force executed a search warrant on March 7, 2018, for Reginald Warren’s residence in Natchitoches. Agents found a total of more than 4 pounds of methamphetamine in the residence. They also found a loaded Charter Arms .38-caliber revolver in close proximity to 1 pound of the methamphetamine. Warren admitted to possessing the illegal drugs and firearm at a March 21, 2019 guilty plea hearing.
Warren’s co-defendant Temisan Smith, 32, of Pasadena, Texas, pleaded guilty to conspiring to distribute ecstasy on December 13, 2018. According to her guilty plea, she was transporting illegal drugs at Warren’s direction that same day from the Houston area to Natchitoches Parish when law enforcement conducted a traffic stop on her vehicle. Agents found a shoebox in the trunk containing approximately 16,000 ecstasy pills and a pint of suspected promethazine syrup.
“Illegal drugs are wreaking havoc on our communities and prosecuting those responsible for selling this poison is a priority of our office,” Joseph stated. “This defendant will be spending 25 years in prison for his crimes. I want to thank the Natchitoches Multi-Jurisdictional Drug Task Force and the Natchitoches Parish District Attorney’s Office for their hard work and collaboration with federal law enforcement and my office in this case.”
“Methamphetamine brings turmoil into the lives of those who are addicted to or live around it,” DEA Special Agent in Charge Brad L. Byerley said. “DEA, together with our law enforcement partners, will continue to attack the scourge of methamphetamine distribution in the Western District of Louisiana and beyond. The lengthy sentencing of this individual should be a warning to those who want to sell drugs. We are going to catch you and put you in prison for a long time if you distribute this poison in our communities. ”
“I thank the U.S. Attorney’s Office for their diligent efforts in this case and for their ongoing partnership with us in investigating and prosecuting illegal narcotics cases in Natchitoches Parish,” said Natchitoches Parish District Attorney Billy Joe Harrington. “I also thank the Natchitoches Multi-Jurisdictional Drug Task Force for their continued relentless work in identifying and arresting narcotics traffickers and, in effect, curbing the flow illegal narcotics in our parish.”
Smith was sentenced to 27 months in prison and three years of supervised release on April 15, 2019.
The DEA, Natchitoches Multi-Jurisdictional Drug Task Force and Liberty County Sheriff’s Office in Texas conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
Middletown Rheumatologist Admits Defrauding Medicaid ProgramRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CRISPIN ABARIENTOS, M.D., 44, of Middletown, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of health care fraud.
According to court documents and statements made in court, Abarientos owns and operates Middlesex Rheumatology in Middletown. One of the medications that Abarientos prescribes to his Middlesex Rheumatology patients is Remicade, an injectable prescription medication used to treat rheumatoid arthritis. When treating Medicaid patients with Remicade, Abarientos was required to submit a claim to Connecticut Medicaid for Remicade on behalf of each member patient. Medicaid then sent payment to Caremark Massachusetts Specialty Pharmacy in Massachusetts, which delivered the quantity of Remicade contained in the claim directly to Middlesex Rheumatology for the Medicaid patient without any out-of-pocket cost to Abarientos.
Between September 2013 and January 2018, Abarientos and his medical practice submitted to Medicaid false claims for the delivery to Middlesex Rheumatology of Remicade that Abarientos represented was to be provided to his Medicaid patients, when he knew that those Medicaid patients were not being treated with Remicade. Through this scheme, Abarientos obtained approximately $894,789 of Remicade to which he was not entitled. Abarientos then proceeded to infuse the fraudulently obtained Remicade into Medicare patients or patients with commercial insurers, and submitted claims to those insurers for reimbursement, which he was able to keep as profit for himself.
Abarientos subsequently attempted to hide the scheme from investigators by submitting documents that had been falsified to make it appear as if the patients he utilized to obtain the Remicade from Medicaid were being treated with the medication when they were not.
Abarientos is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 30, 2019, at which time he faces a maximum term of imprisonment of 10 years.
This matter is being investigated by Office of the Inspector General of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, and the Connecticut Office of the Attorney General. The case is being prosecuted by Assistant U.S. Attorney Lauren Clark.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Michigan Patient Recruiter Sentenced to Prison for $1.5 Million Kickback SchemeRead the Press Release
A Michigan patient recruiter was sentenced to 60 months in prison today for her role in a scheme involving approximately $1.5 million in fraudulent Medicare claims for home health care that were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge Manny Muriel of the IRS Criminal Investigation (IRS-CI) Detroit Office made the announcement.
Sophia Eggleston, 57, of Detroit, Michigan, was sentenced by U.S. District Judge Bernard A. Friedman of the Eastern District of Michigan, who also ordered Eggleston to pay approximately $1.5 million in restitution. In November 2018, following a three-day trial, Eggleston was found guilty of one count of conspiracy to receive health care kickbacks and two counts of receipt of health care kickbacks.
According to evidence presented at trial and at the sentencing hearing, from 2009 to 2012, Eggleston and her co-conspirators engaged in an illegal kickback scheme to defraud Medicare of approximately $1.5 million through fraudulent home health claims. The evidence showed that Eggleston solicited and received kickbacks in exchange for referring Medicare beneficiaries to serve as patients at a home health agency owned by her co-conspirators. Eggleston’s co-conspirators then submitted fraudulent claims to Medicare for home health services that were purportedly provided to those beneficiaries.
The court ordered that Eggleston repay as restitution the total amount that the home health agencies received from the Medicare program from her referrals.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorney Howard Locker of the Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Metro Denver Man Heads to Federal Prison for Making Counterfeit Money and Digital Images of CurrencyRead the Press Release
DENVER – Robert Stephen Lux, age 39, and a resident of Las Vegas, was sentenced yesterday to serve 37 months in federal prison for making, passing or possessing nearly $14,000 in counterfeit money and possessing digital images of currency, announced U.S. Attorney Jason Dunn and U.S. Secret Service Denver Assistant Special Agent in Charge Matthew Cybert. Lux appeared at the sentencing hearing in custody and was remanded at its conclusion.
The defendant was indicted by a federal grand jury on October 24, 2018. He pled guilty to all 47 counts as charged by the grand jury on March 12, 2019. He was sentenced yesterday, June 25, 2019.
According to court documents, including the stipulated facts contained in the plea agreement, on September 21, 2018, the U.S. Secret Service was contacted by the Castle Rock Police Department about two people whom they had arrested for trying to use counterfeit money at a Kohl’s store. Arrested were Lux, who was charged in U.S. District Court in Denver, and Jessica Wright, who was charged in state court. During a search of Lux’s vehicle incident to arrest officers found counterfeit money that did not have the correct watermark; there were no embedded fibers in the paper; the money had no color shifting ink, and the coloring and feel of the paper were not correct.
In addition to the counterfeit money, authorities found two HP printers, multiple USB thumb drives with digital images of U.S. money on them, a computer, a cell phone, and various receipts from retail stores, including Kohls, Walmart and Best Buy.
“We must protect the integrity of our currency, to include prosecuting those who try to duplicate it,” said U.S. Attorney Jason Dunn.
“Counterfeit U.S. currency is a continued threat to the U.S. financial system, and the Secret Service will aggressively pursue those responsible for its production and possession,” said U.S. Secret Service Denver Assistant Special Agent in Charge Matthew Cybert. “Furthermore, the Secret Service commends the diligent actions of the Castle Rock Police Department for initiating and assisting with this investigation.”
This case was investigated by the U.S. Secret Service and the Castle Rock Police Department. The defendant was prosecuted by Assistant U.S. Attorney Greg Holloway.
Massage Parlor Owner Sentenced on Federal Conspiracy ChargeRead the Press Release
TOPEKA, KAN. – A woman who operated massage parlors in Lawrence and Topeka was sentenced today to three years on federal probation for operating a prostitution business, U.S. Attorney Stephen McAllister said. In addition, the defendant agreed to pay a $650,000 judgement, which represents the proceeds of the crime.
Weiling Nielsen, 54, pleaded guilty to one count of conspiracy. Nielsen owned and operated Naima Asian Massage and Serenity Health Spa in Lawrence, as well as Jasmine Massage in Topeka. In her plea, she admitted the massage parlors provided sexual services to customers for payment in cash. Nielsen and others advertised the services on the internet. Nielsen and her husband deposited cash into various bank accounts and purchased money orders for deposit in bank accounts in California.
McAllister commended the FBI, the Douglas County Sheriff’s Office, the Topeka Police Department, the Salina Police Department and Assistant U.S. Attorney Christine Kenney for their work on the case.
Mario Ambrosio Lewis Sentenced to Serve 20 Years in Prison for Distribution of Fentanyl Resulting in DeathRead the Press Release
Greeneville, Tenn. – Mario Ambrosio Lewis, 34, of Atlanta, Georgia, was sentenced on June 25, 2019, by the Honorable Leon Jordan, Senior U.S. District Court Judge, to serve 20 years in federal prison. There is no parole in the federal system.
Lewis pleaded guilty in March of 2019 to distributing fentanyl to Calvin Richard Campbell. Campbell admitted to a Bristol PD Detective and an agent of the Second Judicial District Drug Task Force that he had provided the substance, which contained fentanyl, to the victim. Campbell identified Lewis as his heroin supplier and the source of the fentanyl that resulted in the overdose death of a Bristol woman on April 23, 2017, due to acute fentanyl toxicity.
Agents of the Second Judicial District Drug Task Force, Bristol Tennessee Detectives and the Second Judicial District Attorney’s Office began an undercover and financial investigation into Lewis and his drug trafficking and were joined by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Drug Enforcement Administration (DEA) over the course of the investigation. Campbell pleaded guilty in Sullivan County Criminal Court to 2nd degree murder and was sentenced to 15 years in prison.
United States Attorney J. Douglas Overbey commended investigators on their dedication and tenacity. U.S. Attorney Overbey also noted that, unfortunately law enforcement agencies are facing more and more cases where drug dealers are mixing fentanyl with other illegal drugs to increase profits. This business decision by drug dealers sometimes has deadly consequences. Often users and lower level dealers are not aware that the drugs contain fentanyl.
Since this death occurred, the Drug Overdose Death Task Force has been formed in Sullivan County. The task force is headed by Tennessee Bureau of Investigation (TBI) and funded by grants from the High Intensity Drug Trafficking Areas (HIDTA) Initiative. HIDTA provides federal funds to state and local law enforcement to disrupt and dismantle drug organizations. The District Attorney’s Office and all other law enforcement in Sullivan County have partnered with TBI under this initiative to aggressively identify and target those who place profit above the value of human life. U.S. Attorney Overbey has pledged the continued support of his office and our federal partners in this effort.
Agencies involved in this investigation included the Second Judicial District Drug Task Force, Bristol Tennessee Police Department, the Second Judicial District Attorney Office, ATF and DEA. B. Todd Martin and Robert Reeves, Assistant U.S. Attorneys, represented the United States.
Manhattan Doctor Pleads Guilty to Accepting Bribes and Kickbacks from Pharmaceutical Company in Exchange for Prescribing Fentanyl DrugRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that TODD SCHLIFSTEIN, a doctor who practiced in Manhattan, pled guilty today to conspiracy to violate the Anti-Kickback Statute, in connection with a scheme to prescribe Subsys, a potent fentanyl-based spray, in exchange for bribes and kickbacks from Subsys’s manufacturer, Insys Therapeutics. SCHLIFSTEIN pled guilty before U.S. Magistrate Judge Sarah Netburn. The case is assigned to U.S. District Judge Kimba M. Wood.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Todd Schlifstein prescribed patients a powerful fentanyl drug in exchange for bribes and kickbacks from the drug’s manufacturer. This case shows that doctors who let illegal payments corrupt their medical judgment will be held accountable.”
According to the allegations contained in the Indictment against SCHLIFSTEIN and filings in related proceedings:
The Insys Speakers Bureau
Subsys, which is manufactured by Insys, is a powerful painkiller approximately 50 to 100 times more potent than morphine. The FDA approved Subsys only for the management of breakthrough pain in cancer patients. Prescriptions of Subsys typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by SCHLIFSTEIN.
In or about August 2012, Insys launched a “Speakers Bureau,” a roster of doctors who would conduct programs (“Speaker Programs”) purportedly aimed at educating other practitioners about Subsys. In reality, Insys used its Speakers Bureau to induce the doctors who served as speakers to prescribe large volumes of Subsys by paying them Speaker Program fees. Speakers were supposed to conduct an educational slide presentation for other health care practitioners at each Speaker Program. In reality, many of the Speaker Programs were predominantly social affairs where no educational presentation about Subsys occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of health care practitioners who had not actually been present.
SCHILFSTEIN’s Participation in the Scheme
SCHLIFSTEIN, a doctor certified in physical medicine and rehabilitation, worked at a medical office in Manhattan. From in or about March 2014 until in or about September 2015, SCHLIFSTEIN received approximately $127,100 in Speaker Program fees from Insys in exchange for prescribing large volumes of Subsys. SCHLIFSTEIN became approximately the 19th-highest prescriber of Subsys nationally in the second quarter of 2015, accounting for approximately $593,373 in total net sales of the drug during that quarter.
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SCHILFSTEIN, 50, of New York, New York, pled guilty to one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SCHLIFSTEIN is scheduled to be sentenced by Judge Wood on September 26, 2019.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Department of Health and Human Service’s Office of Inspector General for its participation in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk and David Abramowicz are in charge of the prosecution.
MS-13 Associate Sentenced to 30 Years in Federal Prison for Kidnapping Conspiracy, in Connection with the Murder of an Individual He Believed to Be A Rival Gang MemberRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Neris Moreno-Martinez, age 22, of West New York, New Jersey, to 30 years in federal prison, followed by five years of supervised release, for conspiracy to kidnap.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Acting Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to court documents, Moreno-Martinez was a paro in the L.A. clique of MS-13. His co-defendants also were in the gang; Jose Israel Melendez-Rivera, a/k/a “Liar,” was an observation, and Reynaldo Granados-Vasquez, a/k/a “Fuego,” was a paro. In the summer of 2016, Moreno-Martinez told Melendez-Rivera about the victim, Jordy Mejia, whom Moreno-Martinez alleged was a member of the rival 18th Street gang, although there is no evidence to suggest that was true. Prior to October 1, 2016, Moreno-Martinez created a social media account in the name “Shaila Smith.” Between October 2 and October 15, 2016, Moreno-Martinez posed as Shaila Smith and through social media expressed to Mejia that Shaila Smith was romantically interested in Mejia. Melendez-Rivera admitted that he and Granados-Vasquez were aware of the ruse and that the goal was to trick Mejia into coming to Maryland where the three intended to murder Mejia.
According to court documents, Moreno-Martinez traveled to Maryland to meet Melendez-Rivera on October 15, 2016. Later that day, at the direction of Moreno-Martinez posing as Shaila Smith, Mejia also traveled to Melendez-Rivera’s address in Gaithersburg, where he was told someone would pick him up. While Mejia waited to be picked-up, Melendez-Rivera drove his co-defendants to a residence near a wooded area where the two were to lay in wait for Mejia, then drove back to his apartment, picked up Mejia, and drove back to the wooded area where his co-defendants were waiting.
After Moreno-Martinez lured Mejia into the wooded area, the co-defendants murdered Mejia.
Melendez-Rivera, age 21, of Gaithersburg, Maryland, and Granados-Vasquez, age 23, of Gaithersburg, have also pleaded guilty to the kidnapping conspiracy. Melendez-Rivera has been sentenced to 20 years in federal prison; Granados-Vasquez is to be sentenced on July 9, 2019.
Background on MS-13
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. In Maryland and elsewhere MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region. Cliques of MS-13 often work together cooperatively with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement. MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.” One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Prospective members who sought to join MS-13 were required to complete an initiation process. Individuals who associated with and were friends of the gang were called “paisas.” Individuals who did favors and other acts for the gang were called “paros.” Persons being observed by the gang for potential membership were called “observations,” and individuals who had advanced to the final level before being “jumped in” were called “chequeos,” or “cheqs.” To become a full member of MS-13 or a “homeboy,” prospective members were required to complete an initiation process, often referred to as being “jumped in,” during which other MS-13 members would beat the new member, usually until a gang member finished counting aloud to the number 13.
United States Attorney Robert K. Hur commended HSI, the Montgomery County Police Department, and the Montgomery County State’s Attorney Office for their work in the investigation and thanked the Gaithersburg Police Department and the Guttenburg, New Jersey Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Thomas P. Windom and Timothy F. Hagan, Jr., who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Long Term Care Pharmacy Settles Improper Dispensing and Recordkeeping AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $75,000 civil settlement today with Preferred Pharmacy Solutions, LLC (PPS), a Haverhill long-term care pharmacy, in connection with the improper dispensing of controlled substances and flawed recordkeeping.
“Whether they are retail, mail order, or long-term care pharmacies like this one, we will strictly enforce regulatory requirements for storing and dispensing controlled substances because of the potential for abuse,” said United States Attorney Andrew E. Lelling. “Among other things, enforcement in this area limits opportunities for pharmacy employees to steal medication, which in turn prevents diversion, keeping both patients and the public safer.”
“DEA registrants are responsible to handle controlled substances and ensure that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substance Act,” said DEA Special Agent in Charge Brian D. Boyle. “Failure to do so increases the potential for diversion and jeopardizes the public health and safety. Today’s settlement demonstrates DEA’s pledge to work with our law enforcement and regulatory partners in Massachusetts to ensure that these rules and regulations are followed.”
According to the settlement, DEA conducted an audit of several drugs maintained by PPS at its Haverhill location. The government’s audit revealed discrepancies for six controlled substances, including fentanyl. In addition, PPS failed to disclose on its DEA registration renewal form that its part owner, Norman Mason, previously had his pharmacy license and DEA registration revoked. The government contends that PPS violated other recordkeeping requirements, such as failing to obtain a hard copy prescription after filling a phone order for controlled substances, filling prescriptions for controlled substances with an incorrect or inaccurate DEA registration number, and storing records off-site without the permission of DEA.
PPS cooperated with the DEA’s investigation and has agreed to implement a corrective action plan to come into compliance with the recordkeeping requirements of the Controlled Substance Act. PPS also agreed to permit the DEA to perform inspections of the pharmacy during the next three years without a warrant.
U.S. Attorney Lelling and DEA SAC Boyle made the announcement today. Assistant U.S. Attorney Jessica Driscoll of Lelling’s Civil Division handled the case.
Littleton Man Sentenced to 24 Months for Cocaine TraffickingRead the Press Release
CONCORD - Christian Taveras-Polanco, a/k/a Lemuel Cruz Cepeda, 40, of Littleton, was sentenced to 24 months in prison on Tuesday for possession of cocaine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on December 6, 2018, law enforcement officers surveilled Taveras-Polanco driving around the Littleton, New Hampshire, area in a gold Hummer registered to Lemuel Cruz Cepeda and stopping at two residences for a brief time. A traffic stop was conducted on the Hummer, and Taveras-Polanco initially identified himself as a citizen of the United States named Lemuel Cruz Cepeda. A consent search of the vehicle revealed 140 grams of cocaine. Taveras-Polanco was arrested and later admitted that he is a citizen of the Dominican Republic named Christian Taveras-Polanco, not a United States citizen named Lemuel Cruz Cepeda. Officers obtained a search warrant for Taveras-Polanco’s residence and located 302 additional grams of cocaine there.
Taveras-Polanco previously pleaded guilty on March 18, 2019. The defendant also forfeited over $7,000 in U.S. currency. After serving his sentence, he faces likely deportation to the Dominican Republic.
“Cocaine is an illegal drug that can have devastating consequences to a user’s health,” said U.S. Attorney Murray. “Dealers who trade in this substance also undermine public safety. In order to protect our citizens, we will aggressively prosecute dealers, seeking prison sentences in order to deter their trafficking activities.”
This matter was investigated by Homeland Security Investigations and the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Jarad Hodes.
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KC Man Pleads Guilty to $388,000 Scrap Metal SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to embezzling more than $388,000 from his employer in a scheme to redeem scrap metal.
Russell R. Fotovich, 47, pleaded guilty before U.S. District Judge Greg Kays to participating in the wire fraud conspiracy and to filing a false tax return.
By pleading guilty today, Fotovich admitted he conspired with others from April 2011 to June 2016 to redeem scrap metal belonging to his employer, DST Systems, Inc., and keep a major portion of the proceeds for themselves. Conspirators should have turned in all receipts and proceeds of the scrap redemption transactions to DST, which totaled $563,556. However, they turned in only 39 of 137 receipts, and only $174,910 of the proceeds, causing a $388,645 loss to DST.
Fotovich also pleaded guilty to filing a false tax return. Fotovich admitted he did not declare the embezzled income on federal income tax returns.
Fotovich worked at DST as a facilities engineer at the DST Winchester Data Center. (Fotovich owned two businesses apart from his DST employment – R&T Heating and Cooling and R&T Mechanical.) When the facility underwent major renovations from 2011 through 2016, copper wire and other metals were removed and redeemed at a local scrap dealer. Fotovich and a co-conspirator conducted all but one of the 138 scrap redemptions.
Conspirators requested that the scrap dealer make checks payable to them personally rather than to DST, and that redemption tickets be split, in order to conceal the total amount of scrap redeemed. Sometimes they received as many as four receipts and corresponding checks in one day.
Conspirators requested that DST buy an industrial wire-stripping machine to improve and expedite the scrap redemption. The machine cost approximately $5,000, and allowed conspirators to receive a higher redemption value for the DST-owned scrap they sold. (Non-stripped copper wire carried a lower redemption value.) After DST purchased the wire-stripping machine in early 2014, conspirators increased their fraudulent thefts more than ten-fold.
By pleading guilty today, Fotovich agreed to forfeit to the government $138,758 (representing his proceeds of the fraud conspiracy). The court will determine the amount of restitution Fotovich must pay to DST at the sentencing hearing. Under the terms of today’s plea agreement, Fotovich must pay restitution to the Internal Revenue Service in an amount to be determined, of not more than $79,949 (not including interest). Fotovich also must pay restitution to the Missouri Department of Revenue in an amount to be determined, of not more than $16,209.
Under federal statutes, Fotovich is subject to a sentence of up to eight years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Johnstown Man Indicted on Drug ChargeRead the Press Release
JOHNSTOWN, Pa. - One resident of Johnstown, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Calvin Berkins, Jr., 30, as the sole defendant.
According to the Indictment, on or about October 24, 2018, Berkins possessed with intent to distribute less than 28 grams of cocaine base, a schedule II controlled substance.
The law provides for a maximum total sentence of up to 30 years in prison, a fine of not more than $2,000,000, 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 Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives 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.
Indictment: Topeka Man Robbed Two Cash Loan StoresRead the Press Release
TOPEKA, KAN. – A Topeka man was indicted today on charges of robbing two cash loan stores, U.S. Attorney Stephen McAllister said.
Derick Renee Crawford, 29, Topeka, Kan., was charged with two counts of commercial robbery. The indictment alleges Crawford committed the following robberies:
Advance America, 2232 Louisiana Street, Lawrence, Kan., Feb. 21, 2019.
Advance America, 1947 Northwest Topeka Blvd., Topeka, Kan., March 29, 2019.
If convicted, Crawford faces a penalty of up to 20 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Tapoleon B. Hendricks, 24, Topeka, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon. The crime is alleged to have occurred June 14, 2019 in Topeka, Kan.
If convicted, Hendricks faces a penalty of up to 10 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Idaho Falls Man Sentenced to over 11 Years in Prison for Possessing Sexually Explicit Images of MinorsRead the Press Release
POCATELLO – Stanley G. Gallegos, 62, of Idaho Falls, was sentenced Monday in U.S. District Court to 135 months in prison followed by 5 years supervised release, for possessing sexually explicit images of minors, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge David C. Nye also ordered Gallegos to pay $150,600.80 in restitution and a $50,000 fine. Gallegos pleaded guilty on January 2, 2019.
According to court records, in March 2017, law enforcement agents executed a search warrant at Gallegos’s home in Idaho Falls. Agents discovered Gallegos had a laptop computer connected to a private home network and multiple hard drives. During a forensic search of Gallegos’s devices and hard drives, agents found over 62,000 images and videos of child pornography.
At sentencing, Judge Nye also ordered Gallegos to forfeit the computer, hard drives, and network equipment used in the commission of the offense. As a result of his conviction, Gallegos will be required to register as a sex offender.
This case was investigated by the Idaho Internet Crimes Against Children (ICAC) Task Force and the Bonneville County Sheriff’s Office, and 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.”
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Hudson County Man Charged in Multimillion-Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man has been indicted for his role in running a large-scale mortgage fraud scheme that involved properties in Jersey City, Union, and elsewhere in New Jersey and caused losses of millions of dollars, U.S. Attorney Craig Carpenito announced today.
Anthony Garvin, 49, of Jersey City, was charged in a superseding indictment returned June 25, 2019, with one count of bank fraud conspiracy and five counts of bank fraud. Garvin was originally indicted on one count of bank fraud conspiracy and one count of bank fraud on Jan. 11, 2019.
According to the documents filed in this case:
From January 2011 through November 2017, Garvin and others engineered fraudulent short sale “flips” of various New Jersey properties with mortgages that were in default, and also fraudulently obtained numerous home equity lines of credit, or “HELOC” loans, using fraudulent documents and information.
The conspirators allegedly arranged simultaneous fraudulent transactions on the same target property. In the first transaction, which involved the sale by the current owner, the conspirators convinced the financial institution holding the mortgage to accept the sale of the target property at a loss, usually to a buyer who was secretly a conspirator or an entity controlled by the conspiracy.
In the second transaction, the conspirators flipped the same target property from the first buyer to a second buyer, who typically obtained a mortgage from another financial institution using false loan applications, pay stubs, bank account statements and title reports provided by members of the conspiracy. The second transaction frequently closed for significantly more or even double the price of the first transaction.
Garvin and others allegedly rigged the short sale process at each step to maximize the difference in price between the two transactions and keep the victim financial institutions from detecting the fraud. The conspirators used various kinds of phony documents and misrepresentations, including generating false pre-approval letters from a New Jersey corporation controlled by a conspirator and generating phony deeds that backdated the closing date of the first transactions.
To obtain HELOC loans, the conspirators allegedly submitted loan applications in the name of straw borrowers, who did not in fact reside at the subject properties, and used false and fraudulent information – including false pay stubs and tax information – to make it appear as though the straw borrowers made more money than they actually did. The conspirators frequently applied for multiple HELOC loans on the same property nearly contemporaneously, withholding from each lender the existence of other applications.
The conspirators then disbursed the funds received from financial institutions – which totaled millions of dollars – into various accounts they controlled to conceal their illegal activities and split the profits.
The count of conspiracy to commit bank fraud and each substantive count of bank fraud are each punishable by a maximum potential penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark, with the investigation leading to the superseding indictment.
The government is represented by Assistant U.S. Attorneys David Feder and Zach Intrater of the U.S. Attorney’s Office in Newark.
The charges and allegations in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Murdoch Walker II Esq., Atlanta, Georgia; Charles D. Dawkins Jr. Esq., Elizabeth, New Jersey