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Friday 14 June 2019
Law Enforcement Effort Will Coordinate Action Against Foreign Fraud Schemes that Target American SeniorsRead the Press Release
Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other organizations. The Strike Force will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.
The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.
“Fraud against the elderly is on the rise,” said Attorney General Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”
“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”
Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.
The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.
The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Lancaster Man Sentenced to Federal Prison on Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Quavis Jamar Rudisell, age 30, of Lancaster, was sentenced to a total of 41 months imprisonment today in federal court after earlier pleading to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that on the early morning hours of September 6, 2018, deputies with the Lancaster County Sheriff’s Department responded to a residence on Providence Road after receiving a 911 call in regard to a theft of money. The residence advised that Rudisell had been a guest in the home, stolen approximately $1,300, and fled on a silver moped. Officers with the Lancaster Police Department located Rudisell on the moped and attempted to conduct a traffic stop. Rudisell jumped off the moped and fled into nearby woods where he was later captured. Officers located the stolen money on Rudisell, along with a magazine loaded with rounds of 9mm ammunition. Rudisell admitted to throwing the firearm down. Officers did a search of the area and recovered a 9mm handgun with a large capacity magazine loaded with 19 rounds of ammunition.
Rudisell is prohibited under federal law from possessing firearms and ammunition based upon a prior state conviction for breach of trust with fraudulent intent more than $2,000 but less than $10,000 (2016) and a prior federal conviction for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and 50 grams or more of crack cocaine (2011). Rudisell had been released from federal prison and was on federal supervised release at the time of the instant offense.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Rudisell to a total of 41 months imprisonment. That sentence was comprised of 37 months imprisonment on the felon in possession of a firearm and ammunition charge and a consecutive 4 months imprisonment for violating the earlier term of federal supervised release. Following the term of imprisonment, Rudisell will be on supervision for 3 years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lancaster County Sheriff’s Office, and the Lancaster Police Department. This case was prosecuted as part of the joint federal, state, and local initiative, Project Safe Neighborhoods, which aggressively prosecutes firearm cases. 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 handled the case.
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Kyle Man Sentenced to 20 Years for Second Degree MurderRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of Second Degree Murder following a jury trial in June 2017 was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Marlin Iron Crow, age 46, was sentenced on June 13, 2019, to 20 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Iron Crow killing a man in November 2016 at Porcupine, by punching and kicking him in the head during an argument.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan J. Poppen prosecuted the case.
Iron Crow was immediately turned over to the custody of the U.S. Marshals Service.
Individual Indicted and Arrested for Conspiracy Against the United States to Provide KickbacksRead the Press Release
SAN JUAN, Puerto Rico– On June 11, 2019, Leonardo Lebrón-Torres, president of Dynamic Solar Solutions, Inc., a corporation organized under the laws of Puerto Rico, was indicted for conspiracy against the United States to provide kickbacks, and six substantive charges for providing kickbacks, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
The agencies in charge of the investigation of the case are: Naval Criminal Investigative Service; US Department of Agriculture – Office of Inspector General; General Services Administration – Office of Inspector General; U.S. Department of Veterans Affairs - Office of Inspector General; Coast Guard Criminal Investigative Service; and the Federal Bureau of Investigation.
According to the indictment, defendant Lebrón-Torres, and two individuals identified as B.P. and J.P., and others known and unknown to the grand jury, conspired to commit offenses against the United States, specifically, by the president of Dynamic Solar Solutions, Inc., a company holding subcontracts associated with a prime contract with the United States, knowingly and willfully provided kickbacks, that is, money and compensation of any kind to J.P. for B.P., which were provided for the purpose of improperly obtaining and rewarding favorable treatment in connection with four subcontracts associated with the United States of America.
B.P. was a Senior Project Manager for a private company known in the Indictment as “Prime Contractor.” This company subcontracted Dynamic Solar Solutions, Inc. It was B.P. who negotiated subcontract agreements between his company and the various subcontractors, including Dynamic Solar Solutions Inc., for the Energy Savings Performance Contracts that federal agencies awarded to B.P.’s company.
Defendant Lebrón-Torres knew that he was not permitted to offer gratuities or kickbacks in connection with Energy Savings Performance Contracts in order to obtain favorable treatment with respect to contracts awarded by various government agencies to B.P.. In furtherance of the conspiracy, the defendant paid B.P. and J.P. in several checks totaling approximately $422,080. The defendant is facing a maximum term of imprisonment of 10 years.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Illegal Alien Felon Previously Removed Three Times Sentenced for Again Unlawfully Reentering the United StatesRead the Press Release
Jackson, Miss. – Valentin Camacho-Alvarez, 27, an illegal alien from Mexico, was sentenced yesterday by United States District Judge Henry T. Wingate to 16 months in federal prison, followed by three years of supervised release, for illegally reentering the United States after being convicted of a felony and deported, announced U.S. Attorney Mike Hurst and Scott Sutterfield, Acting Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) in New Orleans. The defendant pled guilty before Judge Wingate on March 13, 2019. In sentencing to the defendant to serve 16 months, the Court accepted the recommendation of the United States that the defendant be sentenced to the maximum sentence under the applicable guidelines.
On July 24, 2018, an officer with the U.S. National Park Service conducted a traffic stop on the Natchez Trace Parkway in Ridgeland. The passenger, Camacho-Alvarez, provided the officer with a Mexican voter registration card for identification purposes. He was also in possession of a Mexican driver’s license, which he admitted belonged to him. He advised the officer that he was born in Mexico and his parents are citizens of Mexico. ICE agents were requested to the scene for further assistance. Camacho-Alvarez admitted he is a citizen of Mexico and that he was illegally present in the United States. He also admitted to having previously been deported from the United States. He claims he has been living in Fredericksburg, Texas, for the last three years.
Camacho-Alvarez was convicted of driving while intoxicated with a child passenger, in February 2012, and removed from the United States the following month. He was then convicted of illegally re-entering the United States in June 2013, in Texas federal court. He has been deported from the United States on three prior occasions, in May 2009, March 2012, and October 2013.
The case was investigated by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
IBM Agrees to Pay $14.8 Million to Settle False Claims Act Allegations Related to Maryland Health Benefit ExchangeRead the Press Release
International Business Machines Corporation (IBM) and Cúram Software have agreed to pay $14.8 million to settle alleged violations of the False Claims Act arising from material misrepresentations to the State of Maryland during the Maryland Health Benefit Exchange (MHBE) contract award process for the development of Maryland’s Health Insurance Exchange (HIX) website and IT platform, the Department of Justice announced today.
“Making misleading statements to win contract awards violates fundamental tenets of government contracting and harms the government and taxpayers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department is committed to protecting the American taxpayer from false claims and preserving the integrity of federal funding decisions.”
“When companies misrepresent their products and capabilities in order to win government contracts, they enrich themselves at taxpayers’ expense,” said U.S. Attorney Robert K. Hur. “Today’s resolution demonstrates our continuing commitment to hold companies accountable for their actions.”
“Companies are expected to be candid about products, skills and abilities during contract negotiations,” said Maureen R. Dixon, Special Agent in Charge, for the Department of Health and Human Services, Office of the Inspector General. “We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”
On Dec. 19, 2011, IBM completed its acquisition of Cúram Software Ltd (Cúram). That same day, a proposal was submitted to the State of Maryland to support the HIX, which was drafted in part by Cúram and included Cúram as a subcontractor for software and services. On Jan. 5, 2012, as part of the bid evaluation process and with IBM’s knowledge, Cúram participated in a presentation to the State of Maryland that illustrated Cúram software conducting eligibility determinations for health assistance coverage, calculating applicable tax credits, addressing changes in life events (e.g. changes in income), and illustrating the integration of Cúram’s software with another subcontractor’s health plan shopping software. On Feb. 22, 2012, the State, acting through MHBE, awarded the contract for development of Maryland’s HIX website and IT platform. Cúram-IBM served as a subcontractor on the project. Federal grants from the U.S. Department of Health and Human Services partially funded MHBE’s contract for the Maryland HIX.
The settlement covers the time period from Jan. 1, 2011, through May 31, 2014, and resolves allegations against Cúram-IBM regarding material misrepresentations made to the State of Maryland during the HIX contract procurement process, including misrepresentations regarding the development status of the Cúram for Health Care Reform software; the existing functionality of the Cúram software to meet the State’s technical requirements, such as addressing life events and calculating tax credits under the Patient Protection and Affordable Care Act; and the integration of Cúram software with other software needed to provide a properly functioning HIX website. After repeated problems following the launch of the HIX website in October 2013, Maryland, acting through MHBE, terminated the contract and replaced the HIX website and IT platform, including the Cúram software.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Maryland, the Department of Health and Human Services Office of Inspector General, and the Office of the Attorney General of Maryland. The claims resolved by this settlement are allegations only and there has been no determination of liability.
IBM Agrees to Pay $14.8 Million to Settle Federal False Claims Act Allegations Relating to Maryland Health Benefit ExchangeRead the Press Release
Baltimore, Maryland – International Business Machines Corporation (IBM) and Cúram Software have agreed to pay $14.8 million to settle allegations under the federal False Claims Act that they made material misrepresentations to the State of Maryland during the Maryland Health Benefit Exchange contract award process for the development of Maryland’s Health Insurance Exchange (HIX) website and IT platform.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division; and Special Agent in Charge Maureen R. Dixon of the Office of Inspector General for the Department of Health and Human Services.
“When companies misrepresent their products and capabilities in order to win government contracts, they enrich themselves at taxpayers’ expense,” said U.S. Attorney Robert K. Hur. “Today’s resolution demonstrates our continuing commitment to hold companies accountable for their actions.”
“Making misleading statements to win contract awards violates fundamental tenets of government contracting and harms the government and taxpayers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department is committed to protecting the American taxpayer from false claims and preserving the integrity of federal funding decisions.”
“Companies are expected to be candid about products, skills and abilities during contract negotiations,” said Special Agent in Charge Maureen R. Dixon of the Office of Inspector General for the Department of Health and Human Services. “We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”
According to the settlement agreement, on December 19, 2011, IBM completed its acquisition of Cúram Software Ltd (Cúram). That same day, a proposal was submitted to the State of Maryland to support the HIX, which was drafted in part by Cúram and included Cúram as a subcontractor for software and services. On January 5, 2012, as part of the bid evaluation process and with IBM’s knowledge, Cúram participated in a presentation to the State of Maryland that illustrated Cúram software conducting eligibility determinations for health assistance coverage, calculating applicable tax credits, addressing changes in life events (e.g., changes in income), and illustrating the integration of Cúram’s software with another subcontractor’s health plan shopping software. On February 22, 2012, the State, acting through MHBE, awarded the contract for development of Maryland’s HIX website and IT platform. Cúram-IBM served as a subcontractor on the project. Federal grants from the U.S. Department of Health and Human Services partially funded MHBE’s contract for the Maryland HIX.
After repeated problems following the launch of the HIX website in October 2013, Maryland, acting through MHBE, terminated the contract and replaced the HIX website and IT platform, including the Cúram software. The settlement covers the time period from January 1, 2011, through May 31, 2014, and resolves allegations against Cúram-IBM regarding material misrepresentations made to the State of Maryland during the HIX contract procurement process, including misrepresentations regarding the development status of the Cúram for Health Care Reform software; the existing functionality of the Cúram software to meet the State’s technical requirements, such as addressing life events and calculating tax credits under the Patient Protection and Affordable Care Act; and the integration of Cúram software with other software needed to provide a properly functioning HIX website.
The claims resolved by this settlement agreement are allegations. The settlement is not an admission of liability by IBM, nor a concession by the United States that its claims are not well founded.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Maryland, the Department of Health and Human Services Office of Inspector General, and the Office of the Attorney General of Maryland. U.S. Attorney Robert K. Hur thanked Assistant United States Attorneys Allen F. Loucks and Rebecca A. Koch, and Michael Hoffman with the Civil Division’s Commercial Litigation Branch, who handled the case.
Honduran National Sentenced for Making a False Statement on a Passport ApplicationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO, age 41, a citizen of Honduras, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information with making a false statement in a United States passport application, in violation of Title 18, United States Code, Section 1542.
According to the Bill of Information, WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO falsely stated in the application that his name was Omar Orlando Cuadrado when in fact he is Wilmer Adonys Osorto.
WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO was sentenced to time served, a $100.00 special assessment and remanded to Immigration and Customs Enforcement for deportation proceedings.
U.S. Attorney Strasser praised the work of the United States Department of State Diplomatic Security Service in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Harrisburg Man Sentenced to over Twenty-One Years’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Hendrix, Jr., age 39, of Harrisburg, Pennsylvania, was sentenced on June 13, 2019, by United States District Court Judge Sylvia H. Rambo to 262 months’ imprisonment to be followed by six years of supervised release for drug trafficking and firearms offenses.
According to United States Attorney David J. Freed, Hendrix previously admitted to possessing with the intent to distribute crack cocaine and possessing multiple firearms as a previously convicted felon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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 investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Harrisburg Man Charged with Drug Trafficking and Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donald Jackson, age 33, of Harrisburg, Pennsylvania, was indicted on June 12, 2019, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Jackson distributed cocaine base, also known as crack cocaine, possessed with intent to distribute marijuana and methamphetamine, and illegally possessed a Ruger 9mm pistol in furtherance of drug trafficking and as a previously convicted felon.
The case was investigated by the Harrisburg Bureau of Police and the Pennsylvania Office of Attorney General Mobile Street Crimes Unit with assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug trafficking offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum sentence for possessing a firearm in furtherance of drug trafficking is life in prison, a term of supervised release following imprisonment, and a fine. The maximum sentence for possessing a as a convicted felon is 10 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Fugitive Returned to U.S. to Face Federal & State ChargesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that William Guy, 51, formerly of Madison, Wisconsin, appeared in federal court this morning, following his extradition from Austria.
Guy was arrested in Austria in April 2018 on federal charges of fraudulently obtaining a passport, and on numerous state charges. At the time of his arrest, he had been a fugitive for more than seven years, and was on the U.S. State Department’s Diplomatic Security Service’s most wanted list. Guy fought extradition from Austria for almost a year, before finally being removed from the country this week. Magistrate Judge Stephen Crocker ordered Guy detained based on his flight risk, and set Guy’s federal trial date for October 28, 2019.
In addition to the federal charges, Guy faces charges of possessing child pornography, stalking resulting in bodily harm, false imprisonment, identity theft, victim intimidation, second degree sexual assault, kidnapping, bail jumping, and numerous other charges in Dane County Circuit Court.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
The charges against Guy are the result of an investigation conducted by the U.S. Department of State’s Diplomatic Security Service, the U.S. Marshals Service, and the Madison Police Department. The prosecution of the federal case has been assigned to Assistant U.S. Attorney Elizabeth Altman. The prosecution of the state charges has been assigned to Assistant District Attorney Matthew Moeser.
Fox Chapel Cardiologist Convicted at Trial of Health Care Fraud Involving more than $13 Million of Insurance BillingsRead the Press Release
PITTSBURGH – After deliberating for two hours, a federal jury found Samirkumar J. Shah guilty of two counts of health care fraud, United States Attorney Scott W. Brady announced today.
Shah, 56, of Fox Chapel, Pa., was tried before United States District Judge David S. Cercone in Pittsburgh, Pennsylvania.
U.S. Attorney Brady stated, "Health care fraud threatens the safety and integrity of our entire health care system. Doctors and medical professionals like Dr. Shah who issue false diagnoses, order unnecessary testing and fraudulently bill Medicare and Medicaid in effect steal from the most vulnerable in our community. Today’s jury verdict sends a clear message to those who would do the same: if you commit health care fraud, you will be prosecuted to the fullest extent of the law."
"Health care fraud is a serious problem that impacts every American," said FBI Pittsburgh Special Agent in Charge Robert Jones. "It takes critical resources from our health care system and increases health care costs for everyone. Dr. Shah's disregard for safe patient care goes against the medical ethics he was to uphold. The FBI, with its law enforcement partners, will continue to allocate a significant amount of expert resources to investigate these crimes and hold those defrauding the system accountable."
The evidence introduced during the eight-day trial established that between 2008 and 2013, Shah, a practicing cardiologist, submitted fraudulent claims to private insurance companies—Highmark Blue Cross Blue Shield (Highmark), UPMC Health Plan (UPMC), and Gateway Health Plan (Gateway)—as well as government insurance programs—Medicare and Medicaid—for an outpatient treatment known as External Counter Pulsation, or ECP. ECP involves the use of a specialized bed equipped with pressure cuffs, which exert pressure upon patients’ lower extremities as a means to increase blood flow to the heart. The evidence at trial further demonstrated that insurers only reimbursed for ECP treatments of patients who suffered from disabling angina—or chest pain caused by decreased blood flow to the heart—and only when a physician supervised the treatment.
In total, Shah purchased 25 beds and offered ECP to patients at more than 18 locations in Western Pennsylvania, Ohio, New York, and Florida. The evidence also showed that, in order to acquire new patients, Shah advertised ECP as "the Fountain of Youth," claimed that it made patients "younger and smarter," and offered the treatment for a range of ailments other than disabling angina, including obesity, migraines, high blood pressure, low blood pressure, diabetes, and erectile dysfunction. After signing up new patients, including many patients who never experienced chest pain, Shah instructed his employees to indicate that every patient had disabling angina on billing sheets that were used to support false insurance claims. In certain instances, Shah never met patients for whom he billed for ECP treatments.
The evidence also showed that patients were required to undergo certain diagnostic ultrasounds as a precautionary measure prior to starting ECP—in part to rule out blood clots that could cause a stroke or heart attack during the treatment. Nevertheless, witness testimony established that Shah did not review any of the ultrasound imagery before approving new patients to begin ECP.
Likewise, contrary to health insurance requirements, ECP treatments routinely occurred while neither Shah nor any other medical doctor was present at his various locations. On one such occasion, a patient experienced an adverse event during his ECP treatment and had to be transported via ambulance to the hospital.
In addition to billing for ECP treatments that were not medically necessary and were not provided under direct physician supervision, Shah also double-billed insurers by using a so-called "bundled" ECP code, which accounted for and included payment for various incidental procedures, and then separately submitted claims for the same included procedures. The evidence at trial further established that during reviews initiated by various insurers, Shah routinely submitted fabricated patient files and made false statements concerning his practice, his patient population, his record keeping, and his compliance with applicable coverage guidelines.
During the period of Shah’s scheme, the evidence showed that he submitted ECP-related claims for Medicare, Medicaid, UPMC, Highmark, and Gateway beneficiaries, totaling more than $13 million and that he received reimbursement payments in excess of $3.5 million.
Judge Cercone set sentencing for November 6, 2019, at 11 a.m. The law provides for a maximum sentence of 10 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.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt prosecuted this case on behalf of the government, with the assistance of Assistant United States Attorney Philip O’Connor.
The Federal Bureau of Investigation and Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit, conducted the investigation that led to the conviction of Shah.
Four Individuals Indicted and Arrested for Hobbs Act, Carjacking Murder, and Firearms OffensesRead the Press Release
SAN JUAN, P.R. – On June 11, 2019, a federal grand jury returned a six-count indictment against four individuals for interference with commerce by robbery (Hobbs Act), carjacking murder, carrying and discharging a firearm during a crime of violence that resulted in death, and theft of firearms, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI and the Puerto Rico Police Department are in charge of the investigation.
The indictment alleges that on April 1, 2019, in the District of Puerto Rico, Ángel David López-Zayas, a.k.a. “Pancho;” Ricardo Pérez, a.k.a. “Bam Bam;” Freddie Ramos-Ortiz, a.k.a. “Fredito;” and Jadier Joaquín Torres-Rijos, a.k.a. “Castier/Kastier”, aiding and abetting each other, conspired to interfere with commerce by robbery; that is, they agreed to take U.S. currency representing assets of victim A.R.M.’s commercial businesses and destined to further A.R.M.’s commercial activities, from his presence at his residence, against his will, by means of force, violence, and fear of injury.
During the robbery, the defendants stole two vehicles, a gray Honda Accord and a red Dodge Ram 2500 by force, violence, and intimidation. They discharged a firearm and killed A.R.M. The defendants also stole approximately six firearms from the residence of A.R.M., to wit, a .9mm caliber Ruger pistol, a .22 Smith and Wesson rifle, a .9mm Smith and Wesson pistol, a .45 caliber Glock pistol, a 12-gauge Mossberg shotgun, and a 12-gauge pistol. All six firearms were legally owned by A.R.M.
“This violent home invasion in the town of San Lorenzo, which resulted in the murder of business owner A.R.M., stunned the community,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend the PRPD and FBI agents, and the prosecutors for their excellent work in bringing these defendants to justice. We will continue to work diligently to prosecute violent criminals to the fullest extent of the law.”
“The FBI’s Humacao Office and our partners at the Puerto Rico Police Department worked quickly to solve this tragic and vicious murder of a hard working businessman,” said FBI SAC Douglas Leff. “We thank Homeland Security Investigations and the U.S. Attorney’s Office for their continued commitment to removing violent offenders from our streets and neighborhoods.”
The case is being prosecuted by Assistant United States Attorney Alexander Alum. The FBI and Puerto Rico Police Department are in charge of the investigation. If convicted, the defendants face up to life in prison and are eligible for the death penalty. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Former stockbroker sentenced for defrauding clientsRead the Press Release
ATLANTA - Sean Kelly has been sentenced to federal prison for wire fraud and securities fraud after pleading guilty to stealing over $1.4 million from his clients.
“Kelly never intended to fulfill his fiduciary responsibility to his clients, which included elderly citizens and veterans,” said U.S. Attorney Byung J. “BJay” Pak. “As thieves like Kelly continue to try avoiding detection and covering their fraudulent methods, we will continue to catch them and prosecute them. We encourage people to thoroughly check out anyone that promises to shepherd their investments.”
“While it is easy to dismiss financial fraud cases as being almost benign because of their lack of violence, there is, however, a very real victimization felt and lives are changed forever,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is hopeful that Kelly’s sentence will send a strong message to anyone who would try to take advantage of unsuspecting clients for their own personal greed.”
According to U.S. Attorney Pak, the charges and other information presented in court: For almost five years, from January 2014 through October 2018, defendant Sean Kelly defrauded his investor clients. Kelly was a stockbroker and investment adviser who purported to provide tax planning, insurance brokering, and other financial services to his clients. Kelly advised his victims to invest in various ways, including through private placements, annuities, investments funds, and real estate investment trusts.
Despite the claimed investments, Kelly instead took his victims’ money and used it for personal expenses, to include mortgage payments, Super Bowl tickets, vacations, and significant cash withdrawals. Ultimately, he stole over $1.4 million from more than 18 clients. In October 2018, closely following the filing of a lawsuit by the U.S. Securities and Exchange Commission, the FBI obtained a warrant based on Kelly’s fraud and arrested him. At his sentencing, the Court found that Kelly’s fraud injured vulnerable victims, including the elderly and veterans.
Sean Kelly, 50, of Marietta, Georgia, was sentenced to five in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,457,043.99. Kelly was convicted on these charges on January 4, 2019, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission contributed to this case.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Postal Employee Sentenced for Theft of MailRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that COURTNEY C. DUPLESSIS (“DUPLESSIS”), age 30, of New Orleans, Louisiana, was sentenced yesterday for Theft of Mail, in violation of Title 18, United States Code, Section 1709.
According to court records, DUPLESSIS was employed by the United States Postal Service as a Letter Carrier originally assigned to the Carrolton Station Post Office and then to the Elmwood Station Post Office. After an investigation by the U.S. Postal Service, Office of Inspector General (“USPS-OIG”), it was determined that on various dates from October 2017 to June 2018, DUPLESSIS stole several pieces of mail containing gift cards and cash. On June 19, 2018, special agents with the USPS-OIG determined DUPLESSIS opened an envelope and removed cash from the envelope. The USPS-OIG agents confronted DUPLESSIS and advised her of her Miranda rights. During an interview, DUPLESSIS admitted to opening several articles of mail and removing cash and gift cards. Agents discovered an additional 54 articles of mail during a subsequent search of DUPLESSIS’S personal vehicle.
U.S. District Judge Eldon E. Fallon sentenced DUPLESSIS to three (3) years of probation.
U.S. Attorney Peter G. Strasser praised the work of the USPS-OIG. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Former Miramar Police Department Employee Sentenced to Prison for Participating in Fraud SchemeRead the Press Release
A former Miramar Police Department employee was sentenced to prison today for participating in a fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Brian M. Chen, 39, of Weston, Florida, a former Information Technology Analyst with the police department for the city of Miramar, Florida, was sentenced today to 37 months in prison by U.S. District Judge William P. Dimitrouleas, after previously pleading guilty to a three-count Information charging him in each count with mail fraud, in violation of Title 18, United States Code, Section 1341. Chen was order to pay $343,797.02 in restitution to the City of Miramar. After sentencing, Chen was remanded to the custody of the Bureau of Prisons to begin serving his prison sentence.
According to the court record, including stipulated statements of fact, the State of Florida had a contract with Verizon Wireless for a cellular telephone service plan, which included the acquisition by state and local agencies of cellular telephones and devices. The contract allowed state and local agencies in Florida to obtain iPhones and Android cellular telephones for free or at a discounted rate, provided that the cellular telephones were obtained for official use and that Verizon Wireless was utilized as the service provider. In his position as Information Technology Analyst, Chen was the administrator of the plan and was in charge of overseeing the purchase and use of cellular telephones and service.
Beginning in or about 2013, Chen, through his position as Information Technology Analyst with the Miramar Police Department, ordered cellular telephones online through the Verizon “My Business” portal for free or at a substantial discount with the intent to unlawfully resell those cellular telephones. Upon ordering the cellular telephones, Chen caused Verizon to initiate a monthly service plan for each line of service. Chen attempted to suspend the monthly service plan for each cellular telephone in order to conceal his illegal acquisition of them.
Chen offered the illegally obtained telephones for sale individually through an online auction and resale provider and also sold the illegally obtained telephones in bulk to persons in the business of reselling cellular telephones. Due to the volume of telephones illegally purchased and the associated lines of service plans, some service plans could not be continuously suspended. Miramar Police Department incurred a loss of approximately $350,000 by paying for service plans for telephones purchased by Chen pursuant to the fraudulent scheme. From in or about 2013, through on or about November 29, 2018, Chen illegally profited, from the scheme, by receiving approximately $800,000 through the sale of over a thousand illegally obtained cellular telephones.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in connection with this matter. She thanked the Miramar Police Department for their assistance. The case was prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul F. Schwartz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Chicopee Police Officer Sentenced for Immigration FraudRead the Press Release
BOSTON – A former Chicopee police officer was sentenced yesterday in federal court in Springfield in connection with immigration fraud.
Nhac Duy Truong, 44, of East Longmeadow, was sentenced by U.S. District Court Judge Mark G. Mastroianni to a $5,000 fine. In February 2019, Truong pleaded guilty to one count of immigration fraud. According to the terms of the plea agreement, Truong agreed to resign from the Chicopee Police Department, where he has served as a police officer since 2004, and to never seek employment in law enforcement.
In 2008 and 2009, Truong submitted two petitions for a claimed alien fiancée, who was in fact the sister of his common law wife. On Feb. 15, 2011, in Ho Chi Minh City, Vietnam, Truong signed a sworn affidavit in support of his second petition for his common law wife’s sister that falsely stated he had never lived with his common law wife and never met her in person, when in fact he had lived with her, and she is the mother of his two children.
United States Attorney Andrew E. Lelling and William Gannon, Special Agent in Charge of the United States Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office prosecuted the case.
Former Bank Vice President Who Aided the Obstruction of an FDIC Investigation Sentenced to Federal PrisonRead the Press Release
A man who aided the obstruction of an FDIC examination was sentenced on June 13, 2019, to one year and one day in federal prison.
Martin Smith, age 39, from Center Point, Iowa, received the prison term after an August 27, 2018 guilty plea to aiding and abetting the obstruction of an FDIC investigation.
Smith worked as a bank vice president from 2009 to 2012. Information at sentencing showed that, during a December 2011 FDIC examination, Smith made it appear as though a borrower’s delinquent loans had been refinanced several months prior, which kept regulators from scrutinizing those loans as part of the exam. Information at sentencing also showed that Smith changed due dates and allowed unauthorized advances on other loans, ultimately causing the bank to incur more than $1 million in losses on loans that the bank never formally authorized and, in some circumstances, never even memorialized.
Smith was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Smith was sentenced to 12 months’ and one day imprisonment. He was ordered to make $1,270,132.97 in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Smith was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Federal Deposit Insurance Corporation Office of Inspector General and the United States Secret Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00076.
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Florida Man Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
BOSTON – A Florida man pleaded guilty today in federal court in Boston in connection with the fraudulent abuse of the U.S. Postal Service’s (USPS) Informed Delivery electronic notification system.
Peter Belony, 34, of Margate, Fla., pleaded guilty to one count of conspiracy to commit wire fraud. U.S. District Court Judge Douglas Woodlock scheduled sentencing for Sept. 19, 2019. Belony and his co-conspirators, Fred Alcius, Lucson Appolon, and Kevens Louis were charged on April 9, 2019. Co-conspirators Appolon and Louis were arrested on April 16, 2019; Belony was arrested on April 26, 2019; and Alcius remains a fugitive.
Informed Delivery is a free electronic notification service provided by the USPS that gives residential and P.O. Box customers the ability to digitally preview their incoming mail and manage their packages.
According to the indictment, the defendants accessed victims’ personal identifying information, including names, Social Security numbers, dates of birth, and addresses on the “dark web” and then used the information to open credit cards in the victims’ names. The defendants then subscribed to Informed Delivery using the victims’ personal identifying information and a fraudulent email address created to track the delivery of credit cards to the victims’ residential mailboxes. The defendants subsequently intercepted the credit cards at the victims’ mailboxes before the victims could receive them and used those credit cards at ATMs and to purchase gift cards and other items for resale at Apple and Walmart, among other retail establishments. The defendants traveled to states across the East Coast in furtherance of the fraud, including New Hampshire, Maine, and Massachusetts.
The charge of conspiracy to commit wire fraud carries a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation, Boston Field Office; Homeland Security Investigations in Boston; the Concord, Fort Lauderdale (Fla.), Harvard, Kittery (Maine), Norfolk, Plantation (Fla.), Sherborn, and Weston Police Departments. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrime Unit is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicted Former FAA Aviation Safety Inspector of Bribery and Fraud SchemeRead the Press Release
Yesterday, following a four-week trial before U.S. District Court Judge Marcia G. Cooke, a federal jury convicted a former Federal Aviation Administration (FAA) Safety Inspector Manuel R. Fernandez, 42, of Miami, of twenty-one criminal counts for his participation in a bribery and fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Todd Damiani, Regional Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to the evidence at trial, from 2010 through June 28, 2013, Fernandez served as a FAA Aviation Safety Inspector with the FAA South Florida Flight Standards District Office (“FSDO”). Patricia Suarez and Rolando Suarez were the co-owners, officers, and directors of AVCOM, a Miami aviation repair company, which was subject to the jurisdiction and official responsibility of the FAA South Florida FSDO. The evidence showed that, at the same he was working for the FAA, Fernandez held various positions at AVCOM, including Vice President of Operations.
In exchange for Patricia Suarez and Rolando Suarez corruptly providing over $150,000 in cash, as well as jewelry, a cruise, clothing, and approximately $15,000 funneled to Fernandez’s mother, Fernandez violated his lawful and official duties as an FAA Aviation Safety Inspector. Fernandez provided AVCOM with advanced notice and warnings as to pending FAA inspections of AVCOM, disclosed financial information about AVCOM’s competitors, and provided AVCOM with improperly obtained aviation repair manuals produced by original equipment manufacturers such as Honeywell and Delta, saving AVCOM from paying vast sums of money for this proprietary information. The evidence further showed that Fernandez provided materially false statements to the FAA and DOT in order to hide his participation in these AVCOM-related activities. Additionally, Fernandez submitted a fraudulent sick leave request to the FAA, utilizing a forged doctor’s note.
Fernandez was convicted of one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C) and (b)(2)(C); fifteen counts of bribery, in violation of Title 18, United States Code, Section 201(b)(2)(C); one count of providing false statements to a federal agency, in violation Title 18, United States Code, Section 1001(a)(2); two counts of wire fraud, in violation Title 18, United States Code, Section 1343; and two counts of aggravated identity theft, in violation Title 18, United States Code, Section 1028A. Fernandez faces a maximum statutory sentence of 5 years in prison for the conspiracy count of conviction, 15 years in prison for each for the bribery counts, five years in prison for the false statement count, 20 years in prison for each wire fraud count, and a 2-year consecutive mandatory minimum sentence for the aggravated identity theft counts. In addition, he faces a fine of up to $250,000 or triple the bribery proceeds.
Rolando Suarez previously pled guilty and was sentenced to 24 months in prison. Patricia Suarez previously pled guilty and was sentenced to 5 years’ probation with 240 days of electronic monitoring. Rolando and Patricia Suarez were ordered to jointly pay $711,940.46 in restitution.
Fernandez is scheduled to be sentenced by Judge Cooke on August 28, 2019, at 10:30 a.m. (Case No. 17-20780-Cr-Cooke).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOT-OIG and FBI in this matter. She also thanked the Hialeah Police Department, Miami Beach Police Department, and Miami-Dade Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Yeney Hernandez.
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.
Elementary Music Teacher Charged with Possession of Child PornographyRead the Press Release
A Federal Way, Washington, man was arrested this morning for possession of child pornography and made his initial appearance in U.S. District Court in Seattle this afternoon, announced U.S. Attorney Brian T. Moran. CHRISTOPHER SCOTT NEWCOMBE, 35, has worked as a music teacher in a variety of public and charter schools in the Puget Sound region. Currently, he is an elementary music teacher in the Renton School District.
According to records filed in the case, KIK screens for explicit images on its messaging system and forwards information on those images to law enforcement. In November 2018, Homeland Security Investigations was alerted to the transmitting of sexually explicit images of young boys involving an internet protocol address ultimately traced to NEWCOMBE. Law enforcement obtained a search warrant for NEWCOMBE’s digital devices. The warrant was executed this morning, and NEWCOMBE was charged with possession of images of child pornography.
Since NEWCOMBE has been employed as a music teacher, Homeland Security is asking that those who have concerns and wish to communicate with law enforcement call 206-442-1469. NEWCOMBE’s current teaching position is at Renton’s Cascade Elementary School, but his social media profiles indicate prior teaching positions at schools in Tacoma, Federal Way, and Bainbridge Island.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
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 United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources better to 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.justice.gov/psc.
The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Domestic Violence Offender Sentenced for Illegal Possession of Firearm with Homemade SuppressorRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks man has been sentenced to federal prison for possessing a handgun with a homemade suppressor, after being convicted of a crime of domestic violence.
Kyle Steven Moody, 33 of Fairbanks, was sentenced today by Sr. District Judge Ralph R. Beistline, to serve 37 months in federal prison, followed by 3 years of supervised release. In March 2019, Moody pleaded guilty to being a prohibited person in possession of a firearm.
According to court documents, on Dec. 15, 2017, Moody was convicted in the State of Alaska of a misdemeanor crime of domestic violence, for violently assaulting his girlfriend, K.H. On Dec. 6, 2018, the Alaska State Troopers received a report that Moody had again assaulted K.H. so badly that her eyes were swollen shut. At that time, Moody was in violation of his conditions of release, where the court had ordered that he have no contact with K.H., who also had a restraining order against Moody.
Troopers identified Moody near his residence in a car with K.H., and he was arrested. Troopers then observed a .22 caliber Ruger Mark IV handgun with a suppressor attached to the barrel under the passenger seat where Moody had been sitting. Moody admitted the firearm belonged to him and that he purchased a kit to make the suppressor.
Moody has a history of domestic violence charges in the State of Alaska involving the same victim, and as someone previously convicted of a misdemeanor crime of domestic violence, Moody was prohibited from possessing a firearm.
At Moody’s sentencing hearing, Judge Beistline noted that Moody’s relationship with K.H. was “very deadly” and that “people in a domestic relationship should be protecting each other, not abusing each other.” He also noted that Moody showed “no respect whatsoever for the law” when he repeatedly violated court orders not to contact K.H. As a condition of his sentence and supervised release, Judge Beistline ordered Moody to undergo batterer intervention training and prohibited him from contacting K.H.
The Alaska State Troopers (AST) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
Dallas Trafficker Ordered to Pay $330,000+ in Restitution to VictimRead the Press Release
A Dallas area sex trafficker was sentenced today to 11 years in federal prison and ordered to pay his victim nearly $333,000, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Gregory Bowden, aka “G,” pleaded guilty to a racketeering charge in January.
In plea papers, Mr. Bowden admitted he recruited his 19-year-old victim, identified in court documents by her initials “R.R.,” in 2014.
He advertised her services on Backpage.com and trafficked her across Texas, from Odessa to Euless to Corpus Christi, using violence to force her to engage in commercial sex acts while he kept the proceeds.
On Friday, U.S. District Judge Sidney A. Fitzwater sentenced Mr. Bowden to 11 years behind bars and ordered him to pay $332,990 in restitution to R.R.
Homeland Security Investigations and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Cara Foos Pierce prosecuted the case.
Anyone with information pertaining to possible human trafficking, please call the National Human Trafficking Hotline, live 24/7, at 1-888-373-7888.
Cuban Man Sentenced to 27 Months’ Imprisonment for Drug Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 11, 2019, David Alzugaray-Lugones, age 50, a Cuban refugee from Weatherly, Pennsylvania, was sentenced to 27 months’ imprisonment and three years of supervised release, by United States District Court Judge Malachy E. Mannion, for drug trafficking offenses.
According to United States Attorney David J. Freed, Alzugaray-Lugones was convicted following a 13-day jury trial of conspiring to distribute 15 grams of heroin from June 2, 2015 and June 8, 2015, and for distributing five grams of heroin on June 8, 2015. Alzugaray-Lugones also attempted to obstruct justice by authoring a letter sent to law enforcement, in which he claimed responsibility for C-4 explosives crimes committed by one of his co-conspirators.
Alzugaray-Lugones’s codefendants, Roberto Torner and Liza Robles, also were convicted at trial of various heroin trafficking, firearms, and explosives charges. Torner and Robles both are awaiting sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Weatherly Police Department, the Luzerne County Drug Task Force, the Pennsylvania State Police, and other federal, state, and local law enforcement agencies. Assistant United States Attorneys Phillip Caraballo and Todd Hinkley prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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 case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Convicted Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that KEVIN CRAWFORD (“CRAWFORD”), age 34, of New Orleans, pled guilty yesterday to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The Court set sentencing in this matter for August 21, 2019. CRAWFORD faces a maximum term of imprisonment of ten (10) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the New Orleans Police Department on investigating this matter. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Cleveland man with convictions for domestic violence, robbery and other crimes sentenced to more than three years in prison for having firearms and ammunitionRead the Press Release
A Cleveland man with a history of violent crimes was sentenced to more than three years in prison for having a firearm.
Miquel D. Jones, 49, was sentenced to 42 months in prison. He previously pleaded guilty to being a felon in possession of firearms.
“This defendant has no right to firearms because his history of violent crime, including convictions for domestic violence and robbery,” U.S. Attorney Justin Herdman said. “Domestic violence offenders pose an outsized threat to Ohio’s families, communities and law enforcement officers.”
“ATF’s mission is reducing violent gun crime in our country,” said Jonathan T. McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “We are committed to working with our federal, state, and local partners to follow the gun and remove the most violent criminals from our streets.”
Law enforcement officials searched Jones’ residence on Poe Avenue on May 23, 2018, in relation to a missing minor. A search of the residence revealed a Ruger 9 mm handgun, a Maverick 12-gauge shotgun and 16 rounds of 9 mm ammunition, according to court documents.
Jones has previous convictions for robbery, domestic violence, burglary and other crimes, which make it illegal for him to possess firearms or ammunition, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Robert J. Patton following an investigation by the ATF, Homeland Security Investigations, Cuyahoga County Regional Human Trafficking Task Force and Cleveland Division of Police.
Cheverly Man Sentenced to 14 Years in Federal Prison for Enticing and Coercing A Minor to Produce Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Wilmer Flores Mejia, age 44, a naturalized citizen of the United States residing in Cheverly, Maryland, to 14 years in federal prison, followed by 25 years of supervised release, for coercion and enticement of a minor to produce child pornography. Judge Grimm also ordered that, upon his release from prison, Flores Mejia must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). The sentence was imposed on June 13, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in December 2015, Flores Mejia used a messaging application to communicate with the victim, who was a 15-year-old boy living in El Salvador. During the course of a sexually explicit conversation, Flores Mejia agreed to pay the victim to send Flores Mejia a sexually explicit photograph of himself, which the victim did.
Flores Mejia’s messaging account showed that he had engaged in other sexually explicit conversation with minor boys on several occasions. Cellular phones seized from Flores Mejia contain conversations with minor boys, including regarding sexual topics. A federal search warrant executed at the residence of Flores Mejia in Maryland also recovered a notebook which contained the names and ages of boys from a village in El Salvador, including the name and age of the victim.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation and thanked the Prince George’s County Police Department, U.S. Customs and Border Protection, and the Policia Nacional Civil of El Salvador for their assistance. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.
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Chairman and Senior Executive of Venture Capital Funds Charged in Manhattan Federal Court with Securities Fraud and Wire FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DAVID WAGNER and MARC LAWRENCE were arrested this morning on securities fraud and wire fraud charges stemming from their operation of a number of corporate entities (collectively referred to as “Downing”) as a Ponzi-like scheme. WAGNER and LAWRENCE solicited over $8 million from investors through materially false and misleading statements regarding, among other things, Downing’s financial condition, use of investor proceeds, sources of funding, ability to pay salaries to employee-investors, and investment portfolio. Then, WAGNER and LAWRENCE misappropriated a significant portion of those funds and used them for, among other things, the payment of management fees, the repayment of prior investors, and personal expenses. WAGNER was arraigned earlier today in the United States District Court for the District of Rhode Island and LAWRENCE will be presented later today in the United States District Court for the Middle District of Florida. The case has been assigned to U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, David Wagner and Marc Lawrence were no more scrupulous than practitioners of three-card Monte or the shell game, but for much higher stakes. They allegedly offered employee-investors the opportunity to get in on the ground floor of a multimillion-dollar venture capital business, but what the employee-investors really got was fleeced. Now Wagner and Lawrence are in custody and facing serious criminal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “Wagner and Lawrence sought money up front from employee investors who believed their principals were acting in good faith. It turns out, as we allege, they were not. The ones who stood to lose the most in this scheme knew the least about the risks they were taking. Illegal investment schemes of any kind will ultimately be faced with intense scrutiny, especially those that aim to capitalize on the losses of others.”
According to the Indictment unsealed today in Manhattan federal court:[1]
From at least in or about December 2013 through at least in or about 2017, WAGNER, the chief executive officer of Downing, and LAWRENCE, the president of several Downing entities, solicited investments in Downing, a purported venture capital firm that would invest in healthcare start-ups referred to as “portfolio companies” and provide sales, operations, and management expertise to the portfolio companies in order to bring their products to market and generate returns for Downing investors, who also worked for Downing (the “employee-investors”). WAGNER and LAWRENCE, and others acting at their direction, solicited more than approximately $8 million in investments in Downing from employee-investors located across the United States, including in the Southern District of New York, as a requirement of employment with Downing.
After making the required investment of between $150,000 and $250,000 in Downing and starting their employment at Downing, employee-investors soon learned, among other things, that contrary to representations made by WAGNER and LAWRENCE, and others acting at their direction, Downing did not have access to millions of dollars in funding, often could not make payroll, had virtually no products to sell, and that employee-investors were the overwhelming source of funding. Employee-investors also learned that WAGNER and LAWRENCE had misrepresented the companies in Downing’s portfolio, their product readiness, and ability to generate revenue. While the particular formulation of these misrepresentations shifted over time, WAGNER and LAWRENCE systematically sought and obtained employee-investor money through materially false and misleading statements.
Beginning in or about May 2016, after several employee-investors had brought lawsuits against WAGNER, LAWRENCE, and several Downing entities, alleging claims based on, among other things, fraud, WAGNER and LAWRENCE continued the scheme by recruiting employee-investors into a new company called Cliniflow Technologies, LLC (“Cliniflow”), through materially false and misleading statements about Cliniflow’s cash reserves, portfolio companies, and exposure to litigation. In fact, Cliniflow purportedly held majority ownership in the same primary portfolio company as other Downing entities and was simply a new name used by WAGNER and LAWRENCE to solicit investments from new employee-investors that was not tainted by the lawsuits filed against Downing entities. A majority of the over $1.5 million raised by WAGNER and LAWRENCE through Cliniflow was transferred to other Downing entities and used to pay for, among other things, WAGNER’s personal expenses and the repayment of prior investors.
Finally, in or about January 2017, WAGNER obtained a $400,000 loan and $100,000 grant from the Connecticut Department of Economic and Community Development (“CTDECD”) for Cliniflow on the basis of materially false statements made by WAGNER to the CTDECD. WAGNER transferred a majority of the funds obtained from the State of Connecticut, which were required to be used for Cliniflow’s purported relocation from New York to Connecticut, to other Downing entities and also used a portion of the funds to purchase a luxury car for his daughter.
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WAGNER, 54, of East Greenwich, Rhode Island, and LAWRENCE, 54, of St. Petersburg, Florida, are each charged in five counts – namely, two counts of securities fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud. Conspiracy to commit securities fraud carries a maximum sentence of five years in prison. Each of other charges carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the work of the FBI, and thanked the United States Securities and Exchange Commission and the Enforcement Section of the Massachusetts Securities Division for their assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Sagar K. Ravi are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Brooklyn Man Sentenced to 20 Years’ Imprisonment for Attempting to Join ISIS in YemenRead the Press Release
Earlier today, in federal court in Brooklyn, Mohamed Rafik Naji was sentenced to 20 years’ imprisonment by United States District Judge Frederic Block for attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization. Naji pleaded guilty to the charge in February 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Naji has been held accountable for trying to enter a foreign war zone and join ISIS’ murderous cause,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force will take every step necessary to incapacitate terrorists like Naji and protect the American people. I commend the Task Force for its outstanding work in this case.”
“Time and again, the United States has brought to justice those who have traveled from here to try and fight for ISIS,” said Assistant Attorney General Demers. “This is just what Naji did. Today’s sentence holds him accountable for his crime and I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“Extremists like Mr. Naji believe murdering innocent people advances their political agendas,” said FBI Assistant Director-in-Charge Sweeney. “In the end, Mr. Naji, like many others before him, find the only thing their actions lead to is a different vantage point from which to watch the world pass by – through the steel bars of a federal prison. Mr. Naji will remember today as sentencing day, nothing more. Working day in and day out with our partners on the FBI Joint Terrorism Task Force, safeguards have been put in place to secure Times Square and other popular attractions so any would be terrorist will find it extremely difficult to carry out their plans. Our unified goal is to remain proactive and prevent acts before they occur, and once again I would like to thank all of those who ensure our safety.”
“This case is a reminder that New York City remains the top target for terrorism in the U.S.,” said NYPD Commissioner O’Neill. “The NYPD and its partners in law enforcement will never relent in the fight against terror. I want to thank the dedicated members of the JTTF who worked on this investigation to keep our City safe and the prosecutors from the Eastern District of New York.”
By late 2014, Naji had become a committed supporter of ISIS as he repeatedly promoted its mission and distributed the terrorist group’s propaganda with violent themes and messages on social media. In March 2015, Naji traveled from New York City to Yemen in an effort to join ISIS. Naji also used social media to advise another person he could travel to join ISIS, but unbeknownst to Naji, that individual was a confidential source of information for the government (the “CS”). In an online conversation with the CS, Naji proclaimed his allegiance to ISIS, stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express support for ISIS and violent jihad. In July 2016, following an ISIS-inspired terrorist truck attack in Nice, France that killed scores of civilians, Naji told the CS how easy it would be to carry out a similar attack in Times Square: “[ISIS] want an operation in Times Square” and “[an ISIS] reconnaissance group . . . put up scenes of Times Square.” Naji added: “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them . . . Times Square day.”
Naji has been incarcerated since his arrest in Brooklyn in November 2016.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ian C. Richardson is in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the National Security Division’s Counterterrorism Section.
The Defendant:
MOHAMED RAFIK NAJI
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-653 (FB)
Brooklyn Felon Convicted of Possession of a Firearm and Ammunition Used During a Shooting at the Louis H. Pink HousesRead the Press Release
Earlier today, a federal jury in Brooklyn returned a guilty verdict against Shakeem Boykins charging him with being a felon in possession of a firearm and ammunition. The verdict followed a five-day trial before United States District Judge Edward R. Korman. When sentenced, Boykins faces up to 10 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“The danger posed by a felon possessing a firearm was brought into sharp focus in this case, where the defendant shot a woman simply for being in a certain part of the Pink Houses against his wishes,” stated United States Attorney Donoghue. This Office and its law enforcement partners will do everything in our collective power to stop gun violence, including prosecuting those who illegally possess guns to the fullest extent of the law.” Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation (FBI), New York Field Office, Safe Streets Task Force, which is comprised of FBI special agents and New York City Police Department (NYPD) detectives.
The evidence at trial established that on the afternoon of October 5, 2017, outside the Louis H. Pink Houses on Linden Boulevard in East New York, Boykins approached a woman with whom he and his friends had been in a dispute, and told her to leave the area. When she refused, Boykins rode away on a bicycle and returned with a handgun. Boykins then shot the woman twice at close range, striking her in the left leg. A .40 caliber cartridge casing was recovered at the scene. Subsequently, the NYPD recovered from his associates the .40 Glock semiautomatic handgun that Boykins had used in the shooting.
As presented at trial, Boykins was convicted in 2013 of a felony offense in Queens County Supreme Court. In addition, he was convicted in federal court in 2015 of being a member of a heroin and crack cocaine drug-trafficking conspiracy based in the Pink Houses.
This case was brought as 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. Attorneys’ 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 government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys James P. McDonald and Margaret E. Gandy are in charge of the prosecution.
The Defendant:
SHAKEEM BOYKINS
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-338 (ERK)
Boston Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to being a felon in possession of a firearm and ammunition.
Mohamed Abdulaziz, 32, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 11, 2019. Abdulaziz was charged in December 2018 and is currently in state custody.
On Sept. 2, 2018, law enforcement officers stopped Abdulaziz on Route 24 South in West Bridgewater because he was driving erratically. After Abdulaziz failed several field sobriety tests, he was arrested for driving under the influence of alcohol. Troopers then conducted a routine inventory search of Abdulaziz’s vehicle before it was towed and found a loaded revolver beneath the driver’s seat. Federal law prohibits Abdulaziz from possessing a firearm or ammunition because of a prior felony conviction.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Attorney Sentenced to 18 Months’ Imprisonment for Obstructing Federal Grand Jury Investigation of His ClientRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, John Servider was sentenced by United States District Judge Eric N. Vitaliano to 18 months’ imprisonment and fined $1,000 for obstructing a grand jury investigation in the Eastern District of New York. Specifically, Servider conspired to alter, and did alter, records responsive to a grand jury subpoena by removing the name of his client, Vincent Vertuccio. From 1988 until his conviction at trial in May 2018, Servider had been licensed by the State of New York to practice law.
Richard P. Donoghue, United States Attorney for the Eastern District of New York and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), Michael C. Mikulka, Special Agent-in-Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL OIG), and Michael Nestor, Inspector General, Port Authority of New York and New Jersey, Office of Inspector General (PA-OIG), announced the sentence.
“With today’s sentence, Servider pays the price for violating the law and his oath as an attorney by impeding a federal grand jury investigation of his client,” stated United States Attorney Donoghue. “Crimes like those committed by the defendant undermine the integrity of our criminal justice system. Attorneys who commit such crimes are on notice that this Office will prosecute them to the fullest extent of the law.”
“It’s unconscionable that a licensed attorney would corruptly assist a client with evidence tampering in order to evade income taxes,” stated IRS-CI Special Agent-in-Charge Larsen. “When IRS special agents begin their career, they take an oath to uphold the constitution, a similar oath Mr. Servider swore to when he became a practicing attorney.”
“John Servider violated the law and his oath as an officer of the court when he obstructed a grand jury investigation by deliberately providing the grand jury with false documents,” said DOL OIG Special Agent-in-Charge Mikulka. “Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to hold those who obstruct criminal investigations accountable for their actions.”
“Servider’s conduct was egregious on many ethical and legal levels. His criminal conduct in altering documents to a federal grand jury subpoena was an effort to obstruct the Government’s investigation, and was also an effort to mislead the federal Grand Jury,” stated PA-OIG Inspector General Nestor. “These actions are particularly serious given that Servider had been an attorney. The PA-OIG thanks its law enforcement partners for the cooperative effort exhibited throughout this investigation and prosecution.”
In March 2013, Servider learned that federal law enforcement agencies were investigating Vertuccio for receiving unreported income – including Rolex watches and other expensive jewelry – from Crimson Corporation, a construction company that he controlled as a silent partner. After a grand jury subpoena was served on a jewelry store, Servider and Vertuccio agreed to alter the store’s receipts and invoices by removing any mention of Vertuccio. As part of the scheme, Servider also instructed Crimson Corporation principals to destroy other evidence relevant to the grand jury investigation.
Vertuccio pleaded guilty in April 2017 to filing a false tax return and conspiracy to obstruct justice. He was sentenced to 24 months’ imprisonment in October 2018.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Tanya Hajjar and Jonathan P. Lax are in charge of the prosecution.
The Defendant:
JOHN SERVIDER
Age: 56
Patterson, New YorkE.D.N.Y. Docket No. 15-CR-174 (ENV)
Armed Drug Dealer Sentenced in CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Frederick Edward Patterson, Jr., 45, of Theodore, Alabama, was sentenced in federal court today, on drug and gun charges. Patterson pled guilty to the two charges, possession with intent to distribute cocaine and using, carrying, or possessing a firearm during or in relation to a drug trafficking felony, on March 7, 2019.
United States District Court Judge Terry F. Moorer imposed a 75 month sentence of imprisonment in Patterson’s case this morning, consisting of 15 months on the drug charge to run consecutively to 60 months on the gun charge. The judge ordered that Patterson serve a total of five years on supervised release when he completes his prison term, during which time he will be required to undergo testing and treatment for drug and alcohol abuse. No fine was imposed, but the judge ordered that Patterson pay $200 in special mandatory assessments.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Arlington, Washington, Man Sentenced to Three Years in Prison for Sexual Abuse of a Minor and Possession of Child PornographyRead the Press Release
A 36-year-old Arlington, Washington, man was sentenced today in U.S. District Court in Tacoma to three years in prison and 15 years of supervised release for sexual abuse of a minor and possession of child pornography, announced U.S. Attorney Brian T. Moran. JAMES C. OVERTON pleaded guilty in January 2019, admitting he used internet messaging applications to have sexual communications with young girls. OVERTON met one 13-year-old girl online and, during the years that followed, convinced her to exchange sexually explicit photos. When she was 15, he took her to Olympic National Park for sexual conduct. At the sentencing hearing U.S. District Judge Ronald B. Leighton said OVERTON engaged in “a pattern of exploitation… this is a serious offense that affects real people.”
According to records filed in the case, OVERTON communicated using the internet with a number of young teens and preteens, attempting to have sexualized conversations with them. Over a period of time, he groomed the 13-year-old for sex and took advantage of her precarious emotional and psychological condition. In November 2016, OVERTON picked up the then-15-year-old from a location near her home and took her into Olympic National Park where he had her engage in sexual conduct. The teen’s family ultimately reported the conduct to law enforcement. When investigators got a court-authorized search warrant for OVERTON’s home and digital devices, they also recovered evidence of more than 100 images of child pornography. OVERTON had attempted to delete the images, but evidence remained on his devices.
OVERTON admitted he had communicated online with a number of young teens between the ages of 12 and 15 in addition to the victim of the sexual assault. Many of those conversations were sexual and involved his trying to obtain sexually explicit videos and images. OVERTON will be required to register as a sex offender.
The case was investigated by the National Park Service and Homeland Security Investigations.
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 United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources better to 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.justice.gov/psc
The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Allentown Man Charged with Mail Fraud and Money LaunderingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony W. Redd, age 63, of Allentown, Pennsylvania, was indicted on June 12, 2019, by a federal grand jury on mail fraud and money laundering charges.
According to United States Attorney David J. Freed, the indictment alleges that Redd was a “Money Mule” and participated in a scheme to defraud individuals out of money by making them believe they were eligible for cash and other prizes. As part of the scheme, Redd is alleged to have caused the mailing of legitimate postal money orders from Mechanicsburg to his address in Allentown, Pennsylvania, and to have converted the known proceeds of the scheme to cash or to have sent the proceeds through Western Union or MoneyGram to Costa Rica. The 12-count indictment charged Redd with five separate counts of mail fraud, engaging in a mail fraud and money laundering conspiracy, and both domestic and international money laundering. The indictment also includes a notice of the Government’s intent to seize and forfeit more than $280,000 involved in the scheme.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the conspiracy offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum sentence for each of the mail fraud and money laundering counts is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced JOSE DIAZ-CASTANEDA, 45, of Mexico on June 4, 2019 for illegal re-entry of a previously deported alien into the United States. Diaz-Castaneda was arrested in Casper, Wyoming. He received time served and ordered to pay a $100.00 special assessment, and is subject to deportation. Diaz-Castaneda previously was deported in 2011. The US Immigration and Customs Enforcement investigated this case.
Federal District Court Judge Alan B. Johnson sentenced HILDA GARCIA-RAMOS, 31, of Mexico on June 4, 2019 for illegal re-entry of a previously deported alien into the United States. Garcia-Ramos was arrested in Casper, Wyoming. She received time served and was ordered to pay a $100.00 special assessment, and is subject to deportation. Garcia-Ramos previously was deported in 2010. The US Immigration and Customs Enforcement investigated this case.
Federal District Court Judge Alan B. Johnson sentenced SAMMUEL DWAYNE COE, 32, of Casper, Wyoming on June 5, 2019 for transportation of child pornography. Coe was arrested in Cheyenne, Wyoming. He received seventy-five months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The US Homeland Security Investigations investigated this case.
Federal District Court Judge Alan B. Johnson sentenced KODY NATHANIEL HESS, 30, of Evansville, Wyoming on June 10, 2019 for carrying a firearm during and in relation to a drug trafficking crime and possession with intent to distribute methamphetamine. He was arrested in Casper, Wyoming. Hess received a total of one hundred eighty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Chief Federal District Court Judge Scott W. Skavdahl sentenced CHRISTOPHER LEE HARDY, 38, of Casper, Wyoming on June 13, 2019 for two counts of transportation of child pornography. Hardy was arrested in Casper, Wyoming. He received ninety months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay a $200.00 fine and restitution in the amount of $5000.00. The US Department of Homeland Security Investigations investigated this case.
Thursday 13 June 2019
Young Smuggler Caught with Illegal Chinese NationalsRead the Press Release
McALLEN, Texas – An 18-year-old Mexican citizen has been arrested on charges of human smuggling, announced U.S. Attorney Ryan K. Patrick.
The criminal complaint charging Israel Rubio-Rodriguez was filed today. He made his initial appearance before U.S. Magistrate Judge J. Scott Hacker this morning, at which time he was temporarily ordered into custody pending a detention hearing set for June 18, 2019, at 9:30 a.m. before Judge Hacker.
On June 11, 2019, law enforcement conducted a traffic stop on a vehicle Rubio-Rodriguez was driving near Los Ebanos, according to the charges. When authorities approached, they allegedly observed multiple people in the front and back seat of the vehicle. The criminal complaint alleges that an immigration inspection was performed on all passengers of the vehicle and all were determined to be Chinese nationals illegally present in the United States.
If convicted, Rubio-Rodriguez faces up to 10 years in federal prison.
Border Patrol conducted the investigation. Assistant U.S. Attorney Sarina S. DiPiazza is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Wholesaler Admits to Conspiracy to Manufacture and Sell Counterfeit Goods to the U.S. Military & GovernmentRead the Press Release
PROVIDENCE – A Brooklyn, N.Y., clothing and goods wholesaler pleaded guilty in U.S. District Court in Providence today to charges related to his participation in a conspiracy that sold more than twenty million dollars worth of Chinese-made counterfeit goods to the United States military, government purchasers, and companies that supply the U.S. Government.
Among the items that Ramin Kohanbash, 49, and others arranged to counterfeit were 200 military parkas of a type used by U.S. Air Force personnel stationed in Afghanistan. These parkas were falsely represented to be genuine Multicam®, a fabric which incorporates specialized near-infrared management technology designed to make the wearer more difficult to detect with equipment such as night-vision goggles.
Other items carried labels that made explicit, and false, representations about the product’s safety. In one case, labels on counterfeit hoods intended for military and law enforcement personnel stated that the items were “permanently flame resistant,” and that they met a specific industry standard for flame-resistant attire. In reality, the counterfeit hoods were not flame resistant.
“Our men and women in uniform confront danger every day to defend this nation and its values.” said U.S. Attorney Weisman. “The uniforms they wear and the gear they carry are meant to protect them as they carry out their mission, not to put them in harm’s way. This case should serve notice that suppliers who do business with the military must comply with the law, or they will be held to account.”
"Individuals and companies that sell counterfeit goods to the U.S. Department of Defense (DoD) endanger the safety and effectiveness of our military," stated Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service's (DCIS) Northeast Field Office. "Today’s guilty plea is the direct result of a joint investigative effort with the General Services Administration OIG, Army CID, Air Force OSI and Homeland Security Investigations, and demonstrate DCIS' ongoing commitment to work with its law enforcement partners and the U.S. Attorney's Office to protect the integrity of the DoD's procurement process."
Kohanbash admitted to the Court that he and others provided, reviewed, and approved photographs, descriptions, and samples of tags and labels to be attached to the knockoff products, so that the counterfeit versions appeared legitimate. Trademarks and brand names of actual U.S.-made products were added to the foreign counterfeit versions to make them appear legitimate.
The goods were shipped from China to Kohanbash and sold to other wholesalers who ultimately marketed and sold the knock-off products to military and government buyers as genuine, American-made products.
Under two U.S. laws known as The Berry Amendment and the Trade Agreements Act (“TAA”), goods sold to the military and certain other government buyers are required to be manufactured in the United States and certain other designated countries; China is not one of those countries. In order to sell the counterfeit goods, Kohanbash provided wholesalers who did business with the government with false certification letters claiming that the goods were made in the U.S., and therefore complied with the Berry Amendment. In other instances, Kohanbash falsely represented that the goods met TAA requirements.
Kohanbash further admitted that the Government is entitled to forfeit twenty million dollars representing proceeds of the offenses, along with actual counterfeit goods seized during the investigation.
Kohanbash’s guilty plea to conspiracy to commit wire fraud and trafficking in counterfeit goods is announced by United States Attorney Aaron L. Weisman; Leigh-Alistair Barzey, Special Agent-in-Charge of Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Luis A. Hernandez, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Boston Fraud Resident Agency, US Army Criminal Investigation Command; Jason T. Hein, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Investigation, Detachment; Homeland Security Investigations Newark, NJ, Special Agent in Charge Brian A. Michael, Troy Miller, Director of Custom and Border Protection, New York Field Office.
Kohanbash is scheduled to be sentenced by U.S. District Court on Chief Judge William E. Smith on January 17, 2020.
Conspiracy to commit wire fraud is punishable by statutory penalties of up to 5 years in federal prison, 3 years supervised release, and a fine of up to $250,000; Trafficking in counterfeit goods is punishable by statutory penalties of up to 10 years in federal prison, 3 years supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Zachary A. Cunha.
Woman from Isleta Pueblo Charged with Assaulting Federal Officer in Indian CountryRead the Press Release
ALBUQUERQUE – Marybeth Jiron, 56, of Isleta Pueblo, N.M., appeared in federal court yesterday on charges of assaulting a federal officer in Indian Country.
A grand jury returned an indictment on February 27, 2019, charging Jiron with two counts of assault upon a federal officer involving physical contact within the boundaries of the Pueblo of Isleta. According to documents filed in court, police responded to an emergency call on January 31, 2019, reporting that Jiron was walking in and out of traffic on a highway. When officers arrived, they found Jiron yelling and belligerent. Jiron threw a cigarette lighter at one of the officers, hitting the officer in the leg. Jiron also flicked a burning cigarette in the officer’s eye. When a second officer tried to intervene, Jiron hit the second officer in the face, bruising the officer’s cheek. Jiron is an enrolled member of the Pueblo of Isleta.
Jiron is currently in custody pending trial. She faces up to 8 years in prison if convicted. Indictments are only accusations. A defendant is presumed innocent until proven guilty.
The Pueblo of Isleta Police Department investigated this case. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
U.S. Attorney’s Office Promotes Elder Justice Initiative by Partnering with Meals on WheelsRead the Press Release
RALEIGH – The U.S. Attorney’s Office for the Eastern District of North Carolina is promoting the Department of Justice’s (DOJ) Elder Justice Initiative (EJI) throughout the Wake County area. On June 13, 2019, the Eastern District partnered with Meals on Wheels in Wake County to conduct outreach to approximately 1,300 seniors in the area to raise awareness about DOJ’s Elder Justice Initiative and provide facts about elder abuse. Elder abuse includes physical abuse, psychological abuse, sexual abuse, neglect and abandonment, and financial abuse.
Below are some facts shared with the community about the impact of elder abuse, neglect and exploitation:
•Elder abuse triples the risk of premature death and causes unnecessary illness, injury, and suffering.
•Victims of elder abused are four times more likely to be admitted to a nursing home and three times more likely to be admitted to a hospital.
•Financial exploitation causes large economic losses for businesses, families, elders, and government programs, and increases reliance on federal and state health care programs, such as Medicare and Medicaid.
•Older adults with cognitive incapacity suffer significantly greater economic losses than those without such incapacity.
•As a result of providing care for an older adult, some caregivers experience declines in their own physical and mental health.
The mission of the Elder Justice Initiative is to support and coordinate DOJ’s enforcement and programmatic efforts to prevent and combat elder abuse, neglect, financial exploitation and scams that target our nation’s seniors by promoting justice for older adults; helping older victims and their families; enhancing state and local efforts through training and resources; and supporting research to improve elder abuse policy and practice.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
U.S. Attorney’s Office Announces the Launch of a Drug Prevention Initiative Involving a Documentary Film and Public Service AnnouncementRead the Press Release
The U.S. Attorney’s Office has developed and launched a drug prevention initiative. Speaking today at Turning Point, located at 179 North Winooski Avenue, Burlington, Vermont, U.S. Attorney Christina E. Nolan described the initiative and played the accompanying Public Service Announcement (PSA) and documentary film, Face of Recovery. Both the PSA and documentary focus on the story of Justin Goulet, who has a history of addiction to drugs and was previously convicted of federal drug and gun crimes. Mr. Goulet made a remarkable recovery and has enjoyed an extended period of sobriety.
The U.S. Attorney’s Office worked with Film Production Director, Jeremy Leibovitch, and Graham Raubvogel, both of Prom Creative, to create the PSA and documentary. This drug prevention initiative is an outreach project that carries a message of hope in the midst of the drug crisis. The documentary and PSA are also meant to highlight the existence and importance of solidarity and collaboration amongst Vermont’s enforcement, prevention, treatment, and recovery communities. The U.S. Attorney’s Office plans to present Face of Recovery to audiences across the Vermont, including to young people and at community and recovery centers. The presentations will be interactive, with attendance by Mr. Goulet and U.S. Attorney Nolan, as well as time for conversation and questions and answers. The first public viewing and interactive presentation will occur on July 19 at Turning Point, 179 North Winooski Avenue, Burlington, Vermont.
This prevention initiative has been a collective effort. The U.S. Attorney’s Office thanks Mr. Goulet, Mr. Leibovitch, Mr. Raubvogel, and Turning Point for their essential contributions to the Project.
If you are interested in scheduling a presentation and showing, please contact Aimee Stearns, Victim Witness Coordinator, or Kraig LaPorte, Public Information Officer, at the U.S. Attorney’s Office at (802) 951-6725.
The Face of Recovery documentary film and PSA can be accessed by the following links:
PSA Face of Recovery - https://www.youtube.com/watch?v=l5Q3ojD1fic
Face of Recovery (Full Length) - https://www.youtube.com/watch?v=N-uPf-_sRGETwo indictments among 1,700 nationwide for child exploitation in 'Operation Broken Heart'Read the Press Release
SAVANNAH, GA: Two Georgia men are among nearly 1,700 arrested for child sex exploitation crimes as part of a nationwide Department of Justice initiative.
Steven Andrew Ross, 29, of Savannah, is charged with Attempted Sex Trafficking of a Minor and Attempted Coercion and Enticement of a Minor to Engage in Sexual Activity for incidents in Camden and Chatham counties, and Benjamin Ray, 38, of Honea Path, S.C., is charged with Attempted Coercion and Enticement of a Minor to Engage in Sexual Activity and Felony Offense Involving a Minor Committed by a Registered Sex Offender for incidents in Chatham County, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The federal charges for which Ray is indicted carry a penalty of 20 years to life in prison, while the charges against Ross carry a penalty of 10 years to life in prison. There is no parole in the federal system, and if released, each defendant would be subject to serve supervised release for five years to life.
“As the perception of sexual exploitation of children continues to move from windowless vans in back alleys to Dark Web sites on the Internet, the investigation and prosecution of these vile crimes must continue to evolve,” said U.S. Attorney Christine. “We are determined, with our law enforcement partners, to find these criminals wherever they try to hide and protect the innocent from victimization.”
Operation Broken Heart, a nationwide operation conducted during April and May by the Internet Crimes Against Children task forces, led to the arrest of nearly 1,700 suspected online child sex offenders. The task forces identified 308 offenders who either produced child pornography or committed child sexual abuse, and identified 357 children who suffered recent, ongoing or historical sexual abuse or were exploited in the production of child pornography.
During the course of the operation, the task forces investigated more than 18,500 complaints of technology-facilitated crimes targeting children and delivered more than 2,150 presentations on internet safety to over 201,000 youth and adults.
“The sexual abuse of children is repugnant, and it victimizes the most innocent and vulnerable of all," Attorney General William P. Barr said. “We must bring the full force of the law against sexual predators, and with the help of our Internet Crimes Against Children program, we will. Over the span of just two months, our ICAC task forces investigated more than 18,000 complaints of internet-related abuse and helped arrest 1,700 alleged abusers. I would like to thank our Office of Justice Programs, all of the task force members, and especially the state and local partners who helped us achieve these important results. We are committed to bringing the defendants in these cases to justice and protecting every American child.”
“Sexual exploitation steals the innocence of children, and the criminals who engage in these acts often inflict life-long trauma on their victims,” said Special Agent in Charge Nick S. Annan of the Atlanta field office of Homeland Security Investigations. “HSI is committed to investigating child exploitation cases as one of its highest priorities, and we deeply appreciate the efforts of our U.S. Attorney partners to protect children from these terrible crimes.”
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) within the Office of Justice Programs (OJP). For more information, visit the ICAC Task Force webpage at www.icactaskforce.org.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The cases in the Southern District of Georgia are being investigated by Homeland Security Investigations and the Savannah Police Department, in conjunction with the Internet Crimes Against Children Task Force. The cases are being prosecuted for the United States by Assistant U.S. Attorney Tania Groover.
Two Men Charged with Murder-For-HireRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a federal indictment charging VANCE COLLINS, a/k/a “Big AK,” 50, and RAMON RAMIREZ, a/k/a “Obendy,” 48, with hiring a hitman to murder an individual believed to be having an affair with RAMIREZ’s wife. COLLINS was arrested this morning in the Bronx and RAMIREZ was arrested this morning in Staten Island. The target of their murder-for-hire plan was not killed. Both defendants were presented this afternoon before United States Magistrate Judge Katharine H. Parker and detained. The case has been assigned to United States District Judge P. Kevin Castel.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, Vance Collins and Ramon Ramirez put a price on another human’s life when they hired someone to kill a person believed to be having an affair with Ramirez’s spouse. Thanks to the work of our remarkable law enforcement partners, Collins and Ramirez now stand charged in federal court for their alleged roles in this terrible crime.”
FBI Assistant Director William F. Sweeney Jr. said: “Murder-for-hire cases are more common than one might think, and the FBI has a number of investigative resources and federal laws we can tap into to help us prevent these potential crimes. But the fact that the plan allegedly concocted by Collins and Ramirez was ultimately unsuccessful shouldn’t overshadow the gravity of this situation – the intent was the same, regardless of the outcome.”
According to the allegations in the Indictment[1]:
In or about late 2017, COLLINS and RAMIREZ hired another person to murder a man believed to be having an affair with RAMIREZ’s wife, and conspired to carry out this murder-for-hire plot from 2017 through 2018, in violation of 18 U.S.C. §§ 1958 and 2. Each charge in the two-count indictment carries a maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
* * *
Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office.
This case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division. Assistant United States Attorneys Christopher Brumwell and Celia V. Cohen are in charge of the prosecution.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two La Crosse County Men Sentenced for Gun CrimesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jesse Turnmire, 30, Bangor, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson, to five years in federal prison, for possessing firearms as a convicted felon. Turnmire pleaded guilty to this charge on March 15, 2019. His prison term will be followed by a three-year period of supervised release.
On December 15, 2018, residents at an apartment complex in La Crosse reported shots-fired. Officers recovered four Remington 9mm shell casings at the scene. Through interviews, officers developed Turnmire as a suspect. Turnmire was subsequently arrested after fleeing from a vehicle, and two firearms were recovered from the vehicle. One had been reported stolen, and Turnmire had a photo of the firearm on his phone. The other firearm was examined by the State Crime Lab, and the lab confirmed it had been used in the shooting. Turnmire’s prior felony convictions are: 2013 Bail Jumping; 2014 Possession of Methamphetamine; 2014 Theft of Automobile; 2015 Possession of Methamphetamine; and 2016 Possession of Narcotic Drug.
In another case, Emmanuel Hunt, 24, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to four years in federal prison for also possessing firearms as a convicted felon. Hunt pleaded guilty to this charge on February 21, 2019. His prison term will also be followed by a three-year term of supervised release.
On November 22, 2018, Hunt was stopped for speeding and he was arrested on an outstanding warrant. A search of the vehicle incident to arrest led to the recovery of a loaded handgun under the driver's seat.
On December 5, 2018, Hunt was stopped by the La Crosse County Sheriff's Department after he was observed driving erratically. When deputies approached the car, they smelled marijuana and observed marijuana in the vehicle. A search incident to arrest led to the recovery of a loaded, stolen handgun in Hunt’s waistband. A search of the vehicle revealed a second loaded, stolen handgun under the passenger seat. Hunt’s prior felony convictions are: Manufacture/Deliver Cannabis (2014, Cook County, Illinois) and Aggravated Unlawful Use of a Weapon (2016, Cook County, Illinois).
These cases have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Turnmire and Hunt were the result of investigations conducted by the La Crosse Police Department, the La Crosse County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of these cases have been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Turtle Creek Man Sentenced for Passing Counterfeit CashRead the Press Release
PITTSBURGH, Pa. - A resident of Turtle Creek, PA, has been sentenced in federal court to three years of probation and ordered to pay $9,570.00 in restitution on his conviction of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Edward J. Botti, 34.
According to information presented to the court, Botti conspired and passed counterfeit $100, $50, and $20 FRNs throughout the Western District of Pennsylvania..
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service for the investigation leading to the successful prosecution of Botti.
Three from Toledo charged for identity-theft conspiracy in which they obtained stolen or unauthorized credit cards to buy electronics, clothing, appliances and other itemsRead the Press Release
A 16-count indictment was unsealed charging three people for their roles in a conspiracy to steal people’s identities and personal information to obtain stolen or unauthorized credit cards to buy electronics, clothing, appliances and other items.
Indicted are: Terrance Carter, 25; Carrie Gibson, 30, and Angelina Carter, 24. The charges include conspiracy, mail fraud and aggravated identity theft.
The defendants stole mail from mailboxes and vehicles to obtain personal identifying information, including social security numbers, driver’s license numbers and credit card information, according to the indictment.
They used this information to create lists that included the victims’ addresses, dates of birth, bank information and other information. They used this information to obtain things of value for themselves or to resell, according to the indictment.
For example, Terrance Carter purchased a gold bar with a credit account issued to a victim in January 2016. In March 2017, the defendants used an unauthorized Lowe’s credit card to purchase $1,225 in merchandise from the Lowe’s on Airport Highway in Toledo. A month later, Angelina Carter and Gibson used a stolen credit card to purchase $285 worth of goods from a Walmart on West Central Avenue, according to the indictment.
This conspiracy occurred between 2015 and 2017, according to the indictment.
The investigation is ongoing.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Toledo Police Department, Sylvania Police Department and the U.S. Secret Service. The case is being handled by Assistant U.S Attorneys Jody L. King and Robert N. Melching.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Physicians and Five Marketers Charged for Violations to Federal Anti-Kickback StatutesRead the Press Release
TULSA, Okla. – Three physicians and five marketers have been charged in U.S. District Court with violations of the federal anti-kickback statute and other criminal offenses, announced U.S. Attorney Trent Shores. The men allegedly caused federal health care insurance programs to pay reimbursement costs for fraudulent and 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.
“Sadly, the American taxpayer ends up paying the price when unscrupulous medical professionals fraudulently bill federal health insurance. In these cases, patients believed they were receiving a compounded cream that fit their specific medical need. In actuality, the charges allege that the drug mixtures prescribed and received by the patients were designed to line the pockets of criminally corrupt doctors with illegally begotten funds,” said U.S. Attorney Shores. “Every dollar we recover from those who defraud federal health insurance programs will be a dollar that goes back to providing healthcare for Americans served by these programs.”
Dr. Krishna Balarma Parchuri, 44, of Tulsa, is charged in a superseding Indictment along with Christopher R. Parks, 57, of Tulsa, Dr. Gary Robert Lee, 58, of Tulsa, and Dr. Jerry May Keepers, 65, of Kingwood, Texas, with conspiracy to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses.
The criminal indictment alleges that since November 2012, Parks and Lee, engaged in a conspiracy to unlawfully pay kickbacks and bribes to physicians in order to induce the physicians to write expensive compounding prescriptions to pharmacies they controlled, including OK Compounding LLC, in Skiatook, One Stop RX LLC in Tulsa and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The defendants then allegedly submitted large claims for payment to federal health care programs and divided the profits. The defendants are accused of causing Tricare to pay reimbursement for false claims in the total amount of $3,207, 514.97; Medicare in total of $285,776.87; FECA Program in total of $552,544.55; and CHAMPVA in total of $310,273.64.
Compounding prescriptions is a practice in which a pharmacist or physician combines ingredients of multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies. Compounded drugs are not to be mixed or marketed in bulk.
The charges allege that, in some cases, physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians allegedly checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Parchuri, an orthopedic surgeon practicing in Tulsa, Oklahoma, and a doctor of osteopathic medicine licensed in Arizona, Kansas, Oklahoma, Florida, and Texas, received kickbacks and bribes in varying amounts up to $50,000 per month from Parks and Lee in exchange for writing compounded drug prescriptions that were submitted to pharmacies controlled by the two men.
Keepers allegedly solicited and received more than $860,000 in illegal bribe and kickback payments from Parks and Lee.
According to the indictment, kickback payments were disguised through various sham business arrangements, including contracts where physicians purported to serve as “medical directors” or “consulting physicians” for the pharmacies. Doctors were also recruited as “medical directors” for a university study. In actuality, the sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. Additionally, limited liability companies (“LLCs”) were created, owned and operated by the corrupt pharmacies/marketers and physicians who submitted the compounding prescriptions. After the pharmacies received payments for the illegal prescriptions, the conspirators transferred the profits to the LLCs to be divided among the conspirators.
Jonathon Yates Boyd III, 47, of Sugarland, Texas, is charged in an Information for conspiring to pay health care kickbacks. In 2012, Boyd formed R&A Marketing LLC, in Houston, Texas, and began recruiting physicians to write prescriptions for compounded drugs. From November 2012 to September 2014, Boyd conspired to pay kickbacks and bribes to physicians to induce them to write prescriptions for expensive compounded drugs and to submit those prescriptions to pharmacies controlled and operated by Parks and Lee. The conspirators then submitted large claims for payment to various federal health care programs and divided the profits from the federally-paid claims. Boyd was paid a commission based upon the reimbursed prescriptions.
The kickback payments were allegedly disguised through fraudulent business arrangements. Contracts were created between the corrupt pharmacies and physicians for services as “medical directors” or “consulting physicians” to the pharmacies. In actuality, the doctors did not provide the services. The sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. R&A Marketing and the pharmacies were each responsible for their prearranged portion of the kickback payments.
Daniel Richard Ferguson, 47, of Broken Arrow; John Richard Frohrip, 52, of Tulsa; and Kevin Ellis Partin, 49, of Bixby are charged in three separate Informations with offering or paying health care kickbacks. On March 30, 2015, the men allegedly paid a physician 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.
Conspiracy to violate the anti-kickback statute carries a possible maximum sentence of five years in prison and a $250,000 fine, while violating the anti-kickback statute carries up to 10 years in prison and a $100,000 possible fine. A conviction of health care fraud without injury or death also carries a possible maximum of 10 years in prison, but if resulting in injury or death, the maximum penalty climbs to 20 years or life in prison, respectively.
Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the cases. The Department of Labor- Office of Inspector General (OIG), IRS - Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services-OIG, and Defense Criminal Investigative Service conducted the investigation.
Three Brockton Men Indicted for Selling Drugs via the Dark WebRead the Press Release
BOSTON – Three Brockton men were indicted yesterday in federal court in Boston on charges of conspiring to manufacture and distribute controlled substances.
Binh Thanh Le, 22, Steven McCall, 23, and Allante Pires, 22, were each charged with conspiring to manufacture and distribute MDMA, Ketamine and Xanax. All three men were previously charged by criminal complaint and were detained following an initial appearance in federal court in May 2019.
According to the charging documents, Le, McCall, and Pires received wholesale quantities of controlled substances in the mail. The three men then processed and manufactured those controlled substances at an office space they rented in Stoughton. To distribute the drugs, the men allegedly created a vendor site entitled “EastSideHigh” on Dark Net Market websites, where they advertised various drugs for sale, including cocaine, MDMA, Ketamine and Xanax.
More than 20 kilograms of MDMA, more than seven kilograms of Ketamine, more than 10,000 Xanax pills, more than $200,000 worth of Bitcoin, and more than $100,000 in cash were seized by authorities. During the execution of a search warrant at the office space in Stoughton, agents encountered and arrested McCall, who was wearing latex gloves and a respirator, and was believed to be in the process of filling drug orders. During the search of that office space, a computer with the “EastSideHigh” vendor page open, and numerous packages containing MDMA and Ketamine, various shipping and packaging materials, and a pill press were recovered.
During the investigation, an undercover federal agent ordered MDMA from one of the “EastSideHigh” vendor sites on a Dark Net Marketplace, and later observed Le allegedly deposit the envelope containing the agent’s order into a United States Postal Service collection box in Stoughton. Pursuant to federal search warrants, numerous other envelopes containing MDMA and Ketamine, which are connected to this drug distribution scheme, were intercepted
On March 27, 2019, Le allegedly met with undercover law enforcement officers at a hotel in Norwood for the purpose of exchanging $200,000 worth of Bitcoin for cash. Le was arrested after he transferred the bitcoin to the agents.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; and Norfolk County District Attorney Michael W. Morrissey made the announcement today. Agents from Homeland Security Investigations in Colorado, Postal Inspectors from around the country, and the Stoughton, Norwood, and Brockton Police Departments assisted in the investigation. Assistant U.S. Attorneys James E. Arnold of Lelling’s Narcotics & Money Laundering Unit and Rachel E. Goldstein of Lelling’s Asset Recovery Unit are 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.
Swiss Man Charged in Manhattan Federal Court for Insider Trading Scheme That Generated More Than $4.7 Million in ProfitsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the indictment of ROLAND MATHYS for his participation in a scheme to trade on material, nonpublic information (the “Inside Information”) regarding a tender offer by Sanofi, S.A (“Sanofi”) for Bioverativ, Inc. (“Bioverativ”). After the tender offer was announced, MATHYS’s trading yielded over $4.7 million in illegal profits.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Roland Mathys engaged in insider trading, and profited to the tune of nearly $5 million – until his scheme was exposed. He allegedly used confidential information about a pending acquisition of a company to purchase call options in that company, knowing that the value of these options would balloon after the acquisition was publicly announced. Working with the FBI and the SEC, we remain committed to policing the marketplace to take the profit out of cheating.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Every time someone engages in insider trading, they illegally stack investment odds in their favor. Mathys’s alleged behavior is not only dishonorable, but illegal. While this type of activity might initially prove profitable, in the long run there’s nothing to be gained.”
According to the allegations contained in the Indictment filed today in Manhattan federal court[1]:
Background of Sanofi’s Tender Offer for Bioverativ
On November 3, 2017, Sanofi, a multinational pharmaceutical company headquartered in Paris, France, delivered to Bioverativ, a multinational biotechnology company headquartered in Waltham, Massachusetts, a non-binding proposal offering to acquire all outstanding shares of Bioverativ at a price of $98.50 per share in cash. Bioverativ specialized in the development and commercialization of therapies for the treatment of hemophilia, and its stock was traded under the ticker symbol “BIVV” on the NASDAQ Stock Exchange. On December 5, 2017, Sanofi and Bioverativ entered into a confidentiality agreement regarding the acquisition negotiations. On December 18, 2017, representatives of Sanofi and Bioverativ met in New York, New York, for a management presentation, which included a review of Bioverativ’s business, products and pipeline, operations, and projections. On January 4, 2018, Sanofi indicated that it would be willing to pursue an acquisition of Bioverativ at a price of $105 per share, subject to Sanofi’s successful completion of due diligence and Bioverativ’s agreement to engage exclusively with Sanofi. On January 6, 2018, Sanofi and Bioverativ executed an exclusivity agreement, which provided Sanofi with the right, through January 26, 2018, to negotiate exclusively the potential acquisition of all the outstanding shares of Bioverativ at the price of $105 per share.
The Sanofi Executive Acquires Inside Information About the Acquisition of Bioverativ and Discloses it to his Family Member
By January 7, 2018, Individual-1, in connection with his employment as an executive vice president at Sanofi, learned that an acquisition of Bioverativ by Sanofi was being negotiated, that such an acquisition was likely to happen, and that such an acquisition would take place in the near future, which Inside Information he had a duty to keep confidential. On or about January 8, 2018, during a telephone conversation, Individual-1 disclosed to his family member, Individual-2, Inside Information regarding Sanofi’s planned acquisition of Bioverativ. Specifically, Individual-1 told Individual-2, in sum and substance, that Sanofi was acquiring a Boston-based biotech company involved in developing a hemophilia drug.
Individual-2 Discloses Inside Information about the Acquisition of Bioverativ to MATHYS
Between January 8, 2018, and January 12, 2018, Individual-2 disclosed to his friend MATHYS Inside Information regarding Sanofi’s planned acquisition and the fact that Individual-2 had learned the Inside Information from Individual-1. Based on MATHYS’s prior dealings with Individual-1, MATHYS knew that Individual-1 was an executive vice president at Sanofi.
From January 12, 2018, through on January 19, 2018, MATHYS purchased approximately 1,607 Bioverativ call option contracts, all with an expiration date of February 16, 2018, for a total purchase price of approximately $170,071. MATHYS’s purchases constituted a significant percentage of the trading in Bioverativ call options on each day, as shown in the table below.
Date of purchase
Number of call option contracts purchased
Strike price
Average premium paid
Percentage
of trading
by MATHYS
1/12/18
342
$65
$2.44
75%
1/12/18
370
$70
$0.79
82%
1/12/18
100
$75
$0.59
96%
1/16/18
100
$75
$0.80
97%
1/17/18
20
$65
$2.29
32.2%
1/17/18
100
$75
$0.50
95%
1/18/18
300
$75
$0.59
100%
1/19/18
275
$75
$0.56
50%
The Acquisition is Announced, and Bioverativ’s Share Price Increases by Approximately 62%
On the evening of Sunday, January 21, 2018, Sanofi and Bioverativ entered into a merger agreement (the “Merger Agreement”). Pursuant to the Merger Agreement, Sanofi would commence a tender offer no later than 15 business days after the date of the Merger Agreement, to acquire all of the outstanding shares of common stock of Bioverativ, at a purchase price of $105.00 per share (the “Tender Offer”), which represented a premium of approximately 64% over Bioverativ’s closing price the prior trading day.
On the morning of Monday, January 22, 2018, prior to the opening of the financial markets in Paris and New York, Sanofi and Bioverativ issued a joint press release announcing the signing of the Merger Agreement (the “Announcement”).
On January 22, 2018, following the Announcement, Bioverativ shares opened trading at $104.21 per share, reached an intra-day high of $104.30 per share, and closed at $103.79 per share, an increase of approximately 62% over the closing price on the prior trading day. Since Bioverativ shares had begun trading on the NASDAQ in January 2017, they had never closed at or above $64.12.
MATHYS’s Insider Trading Generates an Illicit Profit of Over $4.7 Million
On January 22, 2018, MATHYS sold all the Bioverativ call option contracts that had a strike price of $65 or $70, for a net profit of approximately $2,518,622.70. On January 23 and 26, 2018, he sold 325 Bioverativ call option contracts with a strike price of $75, for a net profit of approximately $711,000.81.
On January 26, 2018, at the request of his relationship manager at Credit Suisse, Ltd. (the “Relationship Manager”), MATHYS executed a declaration in which he represented that his transactions in Bioverativ call options were based only on publicly available information and/or personal market analysis, and that no Inside Information was used. MATHYS also stated to the Relationship Manager that MATHYS was extremely surprised by the developments relating to Bioverativ, that he had nothing to do with Bioverativ or Sanofi, and that he did not have any information relating to Bioverativ’s acquisition when he purchased Bioverativ options.
On February 8, 2018, the Securities and Exchange Commission (the “SEC”) obtained a preliminary injunction freezing the approximately $3,229,623.51 in proceeds that MATHYS had generated from selling a portion of the Bioverativ call options (the “Preliminary Injunction”). On February 16, 2018, pursuant to a court order, the SEC directed the liquidation of the remaining 550 Bioverativ call option contracts, which resulted in net profits of approximately $1,568,732.47, which were also frozen pursuant to the Preliminary Injunction.
Between February 8, 2018, and February 10, 2018, MATHYS acknowledged to Individual-2, in sum and substance, that MATHYS had traded in Bioverativ based on the Inside Information that MATHYS had obtained from Individual-2.
* * *
MATHYS, 32, is a citizen and resident of Switzerland.
MATHYS is charged with one count of fraud in connection with a tender offer, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court. The case has been assigned to U.S. District Judge Denise Cote.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
St. Louis City Man Sentenced for Fraudulently Cashing Another's Social Security Disability CheckRead the Press Release
St. Louis, MO – Christopher Lamar Smith, 34, of St. Louis, was sentenced to 26 months in prison for bank fraud, misuse of a social security number, and fraudulent use of identification documents. Smith appeared before U.S. District Court Judge Rodney W. Sippel who ordered him to pay $24,852 in restitution to the victim.
According to court records, Smith fraudulently obtained a Social Security Administration check properly payable to another individual related to disability insurance benefits. Smith then used the victim’s name and other personal information to create a fictitious Missouri non-driver’s license and open a bank account in the victim’s name. Smith then deposited the check into the fraudulent account and withdrew the funds over the course of the next month for his own personal use...
Smith pled guilty in February 2019.
The Social Security Administration, Office of Inspector General, investigated this case. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney's Office.