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Thursday 6 June 2019
Former Advanced BioHealing CEO to Pay $2.5 Million to Settle False Claims Act AllegationsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces today that Kevin Rakin, the former Chairman and CEO of Advanced BioHealing (ABH), has agreed to pay the government $2.5 million to settle False Claims Act allegations that he knowingly allowed ABH sales representatives to use kickbacks and other unlawful methods to induce clinics and physicians to use or overuse its product, “Dermagraft.” Dermagraft is a bioengineered human skin substitute approved by the FDA for the treatment of diabetic foot ulcers. The Anti-Kickback Statute prohibits, among other things, the payment of remuneration to induce the use of medical devices covered by Medicare, Medicaid and other federally funded health care programs.
“Kickbacks that incentivize the sale of medical devices undermine the integrity of our health care system,” said U.S. Attorney Maria Chapa Lopez. “We will take action against individuals who break the law to inflate the value of their companies at the expense of our federal healthcare programs.”
“We will continue to hold accountable individuals who knowingly allow sales practices that result in false claims, as the government contended in this case,” said Shimon R. Richmond, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “The millions of people depending on government healthcare programs and the taxpayers who fund those programs should expect nothing less.”
The settlement resolves allegations that Rakin allowed Dermagraft salespersons to unlawfully induce clinics and physicians with lavish dinners, entertainment, and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits, and rebates, to induce the use of Dermagraft. Claims filed in violation of the Anti-Kickback Statute are considered false or fraudulent under the False Claims Act. In addition, the Anti-Bribery statute and the Federal Acquisition Regulations prohibit bribes to government officials or employees, including Department of Veterans Affairs (VA) physicians, to obtain a contract or favorable treatment under a supply contract. The United States alleged that as a result of his conduct, Rakin caused millions of dollars in false claims to be submitted to federally funded health care programs for Dermagraft.
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case against Rakin was filed by Heather Webb, a former ABH sales representative, and is captioned: United States ex rel. Webb v. Advanced BioHealing, Inc., Case No. 8:14-cv-1055-T-30EAJ. Ms. Webb will receive at least $550,000 of the settlement.
In 2011, Shire plc (Shire) acquired ABH and named Rakin president of its newly-formed subsidiary, Shire Regenerative Medicine. In January 2017, Shire paid the United States $350 million to settle similar federal and state False Claims Act allegations related to the promotion of Dermagraft.
This matter was investigated by the U.S. Department of Health and Human Services, the FBI, the VA–Office of Inspector General, and the Department of Defense Criminal Investigative Service. It was prosecuted by Assistant United States Attorney Sean Keefe.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Florida Doctor Agrees to Pay $911,136.75 to Settle Alleged False Claims Act Violations Arising from Improper Financial Relationship with Drug Testing LaboratoryRead the Press Release
PITTSBURGH – Dr. Nathan Hanflink of Mt. Dora, Florida, agreed to pay $911,136.75 to settle allegations that he received improper payments for making referrals to Greensburg, Pennsylvania drug testing lab Universal Oral Fluid Laboratories, and caused false claims to be submitted to Medicare for drug testing services, United States Attorney Scott W. Brady announced today.
The settlement announced today resolves allegations that Dr. Hanflink referred Medicare patients to Universal Oral Fluid Laboratories (UOFL) for lab tests while engaged in a financial relationship with UOFL. Specifically, UOFL paid Dr. Hanflink to refer patients to the lab for drug tests; UOFL then submitted claims to Medicare for the drug testing services. The United States alleged that the financial arrangement between Dr. Hanflink and UOFL violated the physician self-referral law, commonly known as the Stark Law, and the Anti-Kickback Statute, giving rise to liability under the False Claims Act.
The Stark Law forbids physicians from making referrals for certain designated health services payable by Medicare to an entity with which the physician (or his or her immediate family member) has a financial relationship, unless an exception applies. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of services covered by federal health care programs, such as Medicare. Violations of the Stark Law or Anti-Kickback Statute may give rise to civil liability for treble damages and penalties under the False Claims Act.
Along with the settlement, Dr. Hanflink also signed an Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General that will require, among other things, regular monitoring of his billing practices for a period of three years.
This matter was investigated by the Federal Bureau of Investigation, the Office of Inspector General of the United States Department of Health and Human Services, and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorneys Rachael L. Mamula and Paul E. Skirtich handled the investigation that led to this settlement on behalf of the United States.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Final Defendant Pleads Guilty to $550 Million Ponzi Scheme—One of the Largest Ever Charged in MarylandRead the Press Release
Baltimore, Maryland – Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada pleaded guilty today to conspiracy to commit wire fraud, aggravated identity theft, and a money-laundering transaction in excess of $10,000, arising from a $550 million investment fraud scheme that operated from 2013 through September 2018. Co-defendants Kevin B. Merrill, age 53, of Towson, Maryland, and Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to their roles in the scheme. The U.S. Securities and Exchange Commission (SEC) has filed a parallel civil complaint in this matter.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.
“Jay Ledford created false documents to help lure investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur. “The effects of this kind of fraud can be devastating. As a result of this scheme, a number of victims have lost their life savings. I am proud of the work of federal prosecutors, FBI agents, and our SEC partners whose efforts interrupted this ongoing fraud scheme before the defendants could victimize even more people.”
According to his plea agreement, Ledford was a certified public accountant in Texas, starting his own practice in Amarillo in 1996 and later expanding to Dallas, Texas. In 1999, Ledford met Kevin Merrill in Dallas, when Merrill was a salesman for a Baltimore company that sold supplies for X-ray machines for hospitals and doctors’ practices. Ledford and Merrill became friends, attending sporting events and visiting casinos together. Ledford prepared Merrill’s taxes for several years.
As stated in his plea agreement, in 2001, Ledford began purchasing consumer debt portfolios, forming a company which did business as Platinum Capital Investments, to hold the debt portfolios. “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties that attempt to collect on the debts. Ledford also solicited investors to supply capital to buy a portfolio or invest in his company. After learning of Ledford’s financial success with Platinum Capital, Merrill expressed interest in getting started in the business. Ledford sold Merrill a few credit portfolios and introduced Merrill to his contacts with the debt reporting services. Merrill formed his own debt collection business, had capital investors, and purchased debt portfolios.
Beginning in January 2013, Ledford and his co-conspirators perpetrated a Ponzi scheme to defraud investors of more than $394 million. Specifically, Ledford and Kevin Merrill invited investors to join them in purchasing consumer debt portfolios. Ledford provided fictitious sales agreements and other documents, including false tax returns, to Merrill, knowing that Merrill was using them to induce individuals to invest in his companies, Delmarva Capital and Global Credit Recovery. For 2013, Merrill deposited approximately $4.3 million from investors, while Ledford raised just over $186,000 from investors. Thereafter, Merrill’s superior sales ability caused Ledford to assume a background role supplying Merrill with fictitious documents, while Merrill was the “front man,” promoting the fraudulent investments to potential investors.
Specifically, the conspirators falsely represented to investors that they would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to other third-party debt buyers, in a practice called “flipping.” According to the related complaint in the civil action filed by the SEC, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Northern Virginia, Denver, Texas, Chicago, New York, and elsewhere.
At today’s hearing, Ledford admitted that to induce investors to participate, he and his co-conspirators falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios, whether they were investing their own funds, and their track record of success. According to the plea agreement, sometimes there was no underlying debt portfolio purchased with the investors’ money. To conceal the truth, Ledford, Merrill, and Jezierski, created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies. In addition, to lend credibility to the transactions, Ledford created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank statements and merchant account reports. In late 2014, Ledford transferred Cameron Jezierski to manage debt collections for Riverwalk/DeVille. DeVille had a collections center in Euless, Texas, and the conspirators began to invite prospective investors to tour Riverwalk’s office and the collections center, which added substance to their claims regarding the success of their portfolio purchasing strategy and collections efforts. In December 2017, Ledford recruited Jezierski to the criminal conspiracy because his analytical skills enabled him to contribute significantly to creating false documentation to induce investors to invest, and to conceal the mark-up Ledford and Merrill added to the purchase price charged to investors for debt portfolios.
Further, Ledford admitted that he and Merrill falsely represented that the monies the conspirators paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors. Merrill and Ledford provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which Ledford and Merrill created. From 2013 - 2018, the scheme to defraud took in over $394 million, and at the time of their arrests, the co-conspirators were attempting to obtain an additional $260 million from investors. Ledford assisted Merrill to divert investors’ funds to purchase a home in Naples, Florida, and also helped Merrill falsisfy records to the bank lender. Ledford diverted fraud proceeds to purchase and renovate a home in Las Vegas, Nevada, to refinance a home in Texas, to gamble at casinos, purchase luxury automobiles, jewelry, and to support a lavish lifestyle.
As part of his plea agreement, Ledford is required to pay restitution in the full amount of the victims’ losses and to forfeit property acquired with the proceeds of the offenses. The U.S. District Court has appointed a receiver to marshal the assets for the benefit of the victims.
Anyone who thinks they may be a victim is urged to contact the FBI at www.FBI.Gov/MerrillLedford or e-mail [email protected].
Ledford faces a maximum of 20 years in prison for the wire fraud conspiracy; a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft; and a maximum of 10 years in prison for money laundering, as well as a possible fine of $250,000, or twice the gross gain, for each of the three counts. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 29, 2019, at 10 a.m.
Kevin B. Merrill, age 53, of Towson, Maryland, and Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to their roles in the scheme. Judge Bennett has scheduled sentencing for Merrill on October 10, 2019, at 9:30 a.m., and for Jezierski on August 12, 2019 at 3:00 p.m. Kevin Merrill’s wife, Amanda Merrill, age 30 of Towson, Maryland, is charged with conspiracy to obstruct justice. No court appearance is currently scheduled for Amanda Merrill. Kevin Merrill and Ledford have been detained since their arrests on September 18, 2018, and Amanda Merrill and Cameron Jezierski are released under the supervision of U.S. Pretrial Services.
United States Attorney Robert K. Hur commended the FBI in Baltimore, Dallas, Las Vegas and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.
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Felon on Federal Supervision Hit with 16 Year Sentence for Drug Trafficking and Death ThreatsRead the Press Release
Anthony Dobbins, 51, of East St. Louis, Illinois, will serve 201 months in federal prison for possession with intent to distribute heroin and cocaine, influencing a federal official by threat, and mailing threatening communications, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Dobbins committed his offenses while on federal supervised release for a 2001 armed bank robbery.
Evidence presented in court showed that on August 10, 2018, when officers arrived at an apartment to arrest Dobbins for violations of his federal supervised release, Dobbins threw two large bags of pressed heroin and one large bag of crack cocaine out the window. In total, the bags contained over 200 grams of heroin and 90 grams of crack cocaine. During a subsequent search of the apartment, officers found two digital scales, packaging materials, drug ledgers, and a full box of .40 caliber ammunition, as well as a small bag of heroin on Dobbins’ bed.
Dobbins pleaded guilty to the drug offenses in December 2018. Then, while he was still in custody at the Alton jail waiting to be sentenced, Dobbins mailed threatening letters to the Director of the Bureau of Prisons in Washington D.C. and the Director of the North Central Regional Office of the Bureau of Prisons in Kansas City, Kansas. In the letters, Dobbins made overt and explicit threats that, upon his return to prison, he would kill the first Bureau of Prisons employee he could get his "uncuffed hands on." When interviewed, Dobbins admitted he sent the letters and doubled down on his intent to kill someone on staff at the prison.
A new indictment was returned on April 2, 2019, and Dobbins pleaded guilty to the threat charges on April 20, without a plea agreement.
At sentencing, the court heard evidence that Dobbins is a ten-time convicted felon and a high-ranking member of the Gangster Disciplines, a notoriously violent street gang. During his 2001 armed bank robbery, Dobbins held the bank employees at gunpoint, taped their mouths, hands and feet, and threatened to kill them if they didn’t comply with his demands. His 201-month sentence includes 51 months for violating the terms of his supervised release on that conviction.
Dobbins was also ordered to serve a five-year term of supervised release at the expiration of his prison sentence.
The investigation was conducted by the Illinois State Police Metro East Police Assistance Team (MEPAT), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol Tobacco and Firearms, the United States Marshal Service (USMS), and the Alton Police Department.
Federal Prison Inmate Charged with Possessing ContrabandRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment against NATHAN DANIEL BROOKS, 37, charging him with three counts of possessing contraband in prison. BROOKS made his initial appearance today before Magistrate Judge Leo I. Brisbois in U.S. District Court in Duluth, Minnesota.
According to the indictment, BROOKS was an inmate of the Duluth Federal Prison Camp on March 24, 2019, when he possessed, obtained, and attempted to obtain several items of illegal contraband, including cannabis and cannabis-infused items, cell phones, tobacco, cigarettes, rolling papers, mp3 players, and other electronic devices.
If convicted, BROOKS faces a potential maximum penalty of 10 years in prison.
This case is the result of an investigation conducted by the Federal Bureau of Prisons and the FBI.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Defendant Information:
NATHAN DANIEL BROOKS, 37
Duluth Federal Prison Camp
Charges:
- Possessing contraband in prison, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts North Suburban Businessman on Bank Fraud and Identity Theft ChargesRead the Press Release
CHICAGO — A north suburban businessman has been indicted on bank fraud and identity theft charges for allegedly fraudulently obtaining millions of dollars in mortgage and vehicle loans and using stolen identities to secure credit from financial institutions.
YALE SCHIFF made false statements in loan applications to obtain mortgage loans secured by a variety of properties, according to an indictment returned in U.S. District Court in Chicago. The charges allege that Schiff filed with the Cook County Recorder of Deeds fraudulent letters from financial institutions claiming that loans on the properties were paid in full and that the mortgages were released, when, in fact, the loans were not paid in full and the mortgages had not been released. Schiff then kept the financing paid by the banks, as well as proceeds from the eventual sales of the properties, without paying the mortgages, the indictment states.
The indictment was returned Wednesday. It charges Schiff, 44, of Riverwoods, with eleven counts of bank fraud and two counts of aggravated identity theft. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
The identity theft charges pertain to Schiff’s alleged use of multiple fake and stolen identities to fraudulently obtain loans for vehicles, including a Jeep Grand Cherokee and a Lexus RX350. The indictment accuses Schiff of submitting to the Recorder’s office fake letters from financial institutions and false releases of the vehicle liens, claiming that the loans were paid in full. In reality, Schiff knew the letters were bogus and that the loans were not paid in full, the indictment states. Schiff then allegedly sold the vehicles, keeping the proceeds without paying the loans.
Schiff also used stolen identities to obtain lines of credit and credit cards, including a charge card at Nordstrom department store that he used for personal use, the indictment states. He then allegedly left large unpaid balances on the cards and the credit lines.
The charges allege that three of Schiff’s relatives and a business associate aided him in the schemes. The indictment seeks forfeiture of a personal money judgment of approximately $4.7 million, as well as a property in Riverwoods.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each bank fraud count is punishable by a maximum sentence of 30 years in prison, while each count of aggravated identity theft carries a mandatory minimum sentence of two years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal & Cincinnati Law Enforcement to Announce Arrest of Cincinnati Police CaptainRead the Press Release
*********** MEDIA ADVISORY ***********
FEDERAL & CINCINNATI LAW ENFORCEMENT TO ANNOUNCE ARREST OF CINCINNATI POLICE CAPTAIN
CINCINNATI – Tomorrow the government in conjunction with the Cincinnati Police Department will announce the arrest of a Cincinnati Police Captain, who is being charged federally.
The briefing will be held:
TOMORROW: FRIDAY, JUNE 7, 2019
WHEN: 2:30 P.M.
WHERE: U.S. Attorney’s Office
Library
221 E. Fourth Street, 4th floor
Cincinnati, Ohio 45202
WHO: U.S. Attorney Benjamin C. Glassman
William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation
Cincinnati Police Chief Eliot K. Isaac
Room available beginning at 2:15 P.M. No TV lighting will be available. ID will be required for entrance at Security on the fourth floor.
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Dominican National Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – A Dominican national residing in Dorchester pleaded guilty yesterday in federal court in Boston to Social Security fraud.
Saddan Bautista Diaz, 28, pleaded guilty to one count of false representation of a Social Security number. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 4, 2019. Bautista Diaz was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
On June 27, 2014, Bautista Diaz, a citizen of the Dominican Republic, applied for a Massachusetts Identification Card using the name and Social Security number of a Puerto Rican citizen. He presented a Puerto Rican birth certificate and a Social Security card in the other person’s name to the Massachusetts Registry of Motor Vehicles as proof of his identity. Based on the application and supporting identity documents, Bautista Diaz was issued an identification card in the name of the Puerto Rican citizen.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Indicted on 29 Counts for Sexually Assaulting Three Women in Separate Attacks in Columbia Heights in 2003 and 2007Read the Press Release
WASHINGTON – Levi Ruffin, 41, of Washington, D.C., was indicted yesterday by a Superior Court grand jury for sexually assaulting three women in separate attacks that occurred in 2003 and 2007, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Ruffin was indicted on 15 counts for the first attack, which occurred on July 2, 2003, including burglary while armed, kidnapping while armed, and first-degree sexual abuse while armed with aggravating circumstances. He was indicted on nine counts for the second attack, which occurred on June 3, 2007, including burglary, kidnapping, and first-degree sexual abuse with aggravating circumstances. He was indicted on five counts for the third attack, which occurred on September 8, 2007, including burglary while armed, kidnapping while armed, and first-degree sexual abuse while armed with aggravating circumstances. Cold case detectives linked the defendant to two of the three attacks by DNA evidence.
The charges carry a maximum sentence of life without the possibility of release and, if convicted, Ruffin will be required to register for the rest of his life as a sex offender. The charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
According to the government’s evidence, on July 2, 2003, the defendant displayed a knife, violently attacked and sexually assaulted the victim in her home, and demanded money before fleeing. On June 3, 2007, the defendant violently attacked and sexually assaulted the victim in a stairwell of her apartment building. On September 8, 2007, the defendant displayed a knife, violently attacked and sexually assaulted the victim in her apartment building. The defendant was a stranger to all three victims.
Ruffin was identified as a suspect in these offenses by MPD’s Cold Case Sexual Assault Unit in June, 2018. On June 27, 2018, a D.C. Superior Court judge signed a complaint and warrant authorizing Ruffin’s arrest, five days before the statute of limitations would have run on the first case. Ruffin is currently in custody serving a sentence on a 2013 violent armed sexual assault and robbery of a woman in the 6900 block of Georgia Avenue, NW.
In announcing the indictment, U.S. Attorney Liu and Chief Newsham commended the work of the detectives of the Metropolitan Police Department’s Cold Case Sexual Assault Unit, Deputy Marshals from the U.S. Marshals Service, and forensic examiners from the Federal Bureau of Investigations. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Veronica Vaughan and Juanita Harris, and Paralegal Specialists Tiffany Fogle and TJ McPhail.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Amy Zubrensky and Marisa S. West, who are investigating and prosecuting the case.
District Man Indicted on 29 Counts for Sexually Assaulting Three Women in Separate Attacks in Columbia Heights in 2003 and 2007Read the Press Release
WASHINGTON – Levi Ruffin, 41, of Washington, D.C., was indicted yesterday by a Superior Court grand jury for sexually assaulting three women in separate attacks that occurred in 2003 and 2007, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Ruffin was indicted on 15 counts for the first attack, which occurred on July 2, 2003, including burglary while armed, kidnapping while armed, and first-degree sexual abuse while armed with aggravating circumstances. He was indicted on nine counts for the second attack, which occurred on June 3, 2007, including burglary, kidnapping, and first-degree sexual abuse with aggravating circumstances. He was indicted on five counts for the third attack, which occurred on September 8, 2007, including burglary while armed, kidnapping while armed, and first-degree sexual abuse while armed with aggravating circumstances. Cold case detectives linked the defendant to two of the three attacks by DNA evidence.
The charges carry a maximum sentence of life without the possibility of release and, if convicted, Ruffin will be required to register for the rest of his life as a sex offender. The charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
According to the government’s evidence, on July 2, 2003, the defendant displayed a knife, violently attacked and sexually assaulted the victim in her home, and demanded money before fleeing. On June 3, 2007, the defendant violently attacked and sexually assaulted the victim in a stairwell of her apartment building. On September 8, 2007, the defendant displayed a knife, violently attacked and sexually assaulted the victim in her apartment building. The defendant was a stranger to all three victims.
Ruffin was identified as a suspect in these offenses by MPD’s Cold Case Sexual Assault Unit in June, 2018. On June 27, 2018, a D.C. Superior Court judge signed a complaint and warrant authorizing Ruffin’s arrest, five days before the statute of limitations would have run on the first case. Ruffin is currently in custody serving a sentence on a 2013 violent armed sexual assault and robbery of a woman in the 6900 block of Georgia Avenue, NW.
In announcing the indictment, U.S. Attorney Liu and Chief Newsham commended the work of the detectives of the Metropolitan Police Department’s Cold Case Sexual Assault Unit, Deputy Marshals from the U.S. Marshals Service, and forensic examiners from the Federal Bureau of Investigations. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Veronica Vaughan and Juanita Harris, and Paralegal Specialists Tiffany Fogle and TJ McPhail.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Amy Zubrensky and Marisa S. West, who are investigating and prosecuting the case.
Con Artist at the Heart of Columbus Grand Reserve Scam Sentenced to 96 Months Imprisonment on 22 CountsRead the Press Release
COLUMBUS – An Alabama woman found guilty by a citizen jury on 22 counts of fraud and conspiracy for her role in stealing large amounts of money from a Columbus business was sentenced to eight years in prison by a U.S. District Judge today, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. The Honorable Clay D. Land sentenced Dorita Clay AKA Dorita Browning/Dorita West/Dorita Mial/Dorita Moultrie/Dorita Mobley/Dorita Brooks, 51, of Selma, AL to 96 months in prison on each of the 22 counts for which she was found guilty on January 9, 2019, all to run concurrently. The defendant will also serve three years supervised release. There is no parole in the federal system. In sentencing the defendant, the Court noted the defendant’s total lack of remorse and sentenced her above the calculated guideline range.
Evidence and testimony introduced at trial established that Ms. Clay conspired with her co-defendant, Darlene Corbett, to steal almost $1 million from Corbett’s employer, the Grand Reserve Columbus. Darlene Corbett took the stand at the January 2019 trial and testified that the money she embezzled all went to Ms. Clay and was in the service of various schemes that Ms. Clay had convinced her were legitimate, to include a pending multi-million dollar estate settlement and a multi-million lawsuit settlement that Ms. Clay claimed she was about to receive. Ms. Corbett further admitted at trial that she had conspired with Ms. Clay to steal the money from the Grand Reserve, to then conceal the theft, and then deceive the FBI with a false story about business loans. Ms. Corbett also testified that both she and her elderly mother had liquidated their life’s savings and taken out personal loans to “invest” in the schemes.
“This skilled con artist, who had no problem concocting lies in order to steal money to support a lavish lifestyle and gambling habit will finally face the consequences for her criminal actions,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “Protecting businesses and the elderly from fraud remains a high priority for the Office. I want to thank the FBI for their work unraveling this scheme, and bringing an end to Ms. Clay’s ruinous lies and criminal actions.”
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Columbus man sentenced for cocaine distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jason R. Smoot, of Columbus, Ohio, was sentenced today to 89 months incarceration for selling cocaine near a playground, United States Attorney Bill Powell announced.
Smoot, age 31, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location” in November 2018. Smoot admitted to selling cocaine near the Jensen Playground in Wheeling in June 2017.
Assistant U.S. Attorney Steven L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.Clifton Park Woman Sentenced to 21 Months for Bank EmbezzlementRead the Press Release
ALBANY, NEW YORK – Caitlin Kenney, age 33, of Clifton Park, New York, was sentenced today to 21 months in prison for embezzlement by a bank employee.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
In pleading guilty, Kenney admitted to embezzling a total of $483,784.83 from KeyBank, N.A., branches in Queensbury and Malta, New York, between September 2013 and February 2017. Kenney, who worked as a head teller for KeyBank, transferred cash from KeyBank’s vaults to unused cashboxes and then stole the money. In an effort conceal her theft, Kenney made false entries in KeyBank’s electronic accounting system. Kenney spent the stolen money on clothes, cocaine and vacations, among other things.
Senior United States District Judge Thomas J. McAvoy also sentenced Kenney to 2 years of supervised release, to begin following her term of imprisonment. She is required to pay $483,784.83 in restitution to KeyBank.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Chelsea Gang Member Pleads Guilty to Drug TraffickingRead the Press Release
BOSTON – A Chelsea man pleaded guilty today in federal court in Boston to possession of cocaine base with intent to distribute.
Adres Perez, 26, pleaded guilty to possession of cocaine base with intent to distribute and is scheduled to be sentenced on Sept. 10, 2019 before U.S. District Court Judge Richard G. Stearns. In December 2017, Perez was indicted along with Cesar Alicea, who was charged with being a felon in possession of a firearm. The charging documents allege that both men were members of the East Side Money Gang.
On Oct. 31, 2017, police in Revere observed what they believed was a drug deal happening from a car. The officers stopped the car, which was driven by Perez – with Alicea in the passenger seat –removed Perez from the car, and pat-frisked him. At the same time, Alicea ran from the car and threw an item, which was recovered and determined to be a .25 caliber Raven Arms pistol. Police later recovered crack cocaine from the car and heroin on Perez.
Alicea previously pleaded guilty and was sentenced in January 2019 to 48 months in prison.
The charge of possession with intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Revere Police Chief James Guido; and Chelsea Police Chief Brian Kyes made the announcement today. Assistant U.S. Attorneys Timothy E. Moran and Michael Crowley of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
Chelsea Gang Leader Sentenced to over 15 Years in PrisonRead the Press Release
BOSTON – A leader of the East Side Money Gang (ESMG) was sentenced yesterday in federal court in Boston on racketeering, drug trafficking and firearms trafficking charges.
Angel “Stackz” Mejia Zelaya, 24, of Chelsea, was sentenced yesterday by U.S. District Court Judge Richard G. Stearns to 188 months in prison and five years of supervised release. In January 2019, Mejia pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly known as RICO, one count of conspiracy to distribute cocaine and cocaine base, and one count of engaging in the business of dealing in firearms without a license.
Mejia was a leader in the ESMG, a violent, Chelsea-based street gang, which was responsible for various violent crimes, including multiple shootings, and drug distribution in Chelsea and surrounding communities. Mejia, as well as other members and associates of the gang, were also actively involved in illegally selling firearms, including handguns and shotguns, in and around Chelsea.
Mejia participated in multiple, gang-related shootings. On July 5, 2015, Mejia was involved in a shooting targeting a rival gang member on a public street in Chelsea, which did not result in the rival gang member being injured. On March 29, 2016, Mejia and his lieutenant, Josue “Superbad” Rodriguez, agreed to provide a .22 caliber revolver to a third ESMG member, Brandon “Big Baby” Baez, so that Baez could “spank” with it – meaning that he could use it against rivals of ESMG. On April 3, 2016, in Revere, Baez used the revolver to attempt to murder two men believed to be members/associates of a rival gang as they sat in a vehicle. Both men were wounded, but not killed. Baez called Mejia immediately after the shooting to inform Mejia that Baez had just shot two men. Mejia further admitted to supplying other ESMG gang members with firearms, including a juvenile who then accidently shot another person.
While Mejia was the leader of the ESMG, the gang dealt substantial quantities of drugs, including cocaine and cocaine base (crack), in Chelsea and surrounding communities. Mejia was responsible for the distribution of at least a kilogram of cocaine base. Mejia and his gang subordinates stored drugs at and distributed drugs from a residence on Tudor Street in Chelsea and another residence in the Chelsea area. The gang kept handguns at both locations to protect their drug operations, as well as for other gang activities.
The prosecution of Mejia arose out of an investigation of various street gangs, including the 18th Street Gang, ESMG and the Boylston Street Gang, which were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley, made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments. Lelling’s Organized Crime and Gang Unit is prosecuting the case.
California Man Admits Transporting 14 Kilograms Heroin and FentanylRead the Press Release
NEWARK, N.J. – A Riverside, California, man today admitted transporting large amounts of heroin and fentanyl from California to New Jersey for distribution in New Jersey, U.S. Attorney Craig Carpenito; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration, New York Division; New York City Police Commissioner James P. O’Neill; Keith M. Corlett, Acting Superintendent of the New York State Police; and Angel M. Melendez, Special Agent in Charge, Homeland Security Investigations, New York Field Office, announced.
Joselito Colindres, 42, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and over 400 grams of fentanyl.
According to documents filed in this case and statements made in court:
On Oct. 21, 2018, law enforcement officers learned that Colindres and Nester Estuardo Ruano Gutierrez were driving a tractor-trailer containing narcotics from California to New Jersey and elsewhere. After a lawful search of the tractor trailer, law enforcement officers found boxes of narcotics, including approximately 10 kilograms of heroin and four kilograms of fentanyl. Colindres admitted in court that these narcotics were intended for sale in and around New Jersey.
The count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and 400 grams of fentanyl carries a maximum penalty of life imprisonment, a mandatory minimum term of 10 years in prison and a $10 million fine. Sentencing is scheduled for Oct. 10, 2019. Gutierrez has pleaded guilty and is awaiting sentencing.
U.S. Attorney Carpenito credited the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), with the investigation leading to today’s guilty plea.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; IRS-Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF), Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Bloods Gang Member Sentenced to Prison for Possessing FirearmRead the Press Release
NEWPORT NEWS, Va. – A James City County man was sentenced today to 10 years in prison for being a felon in possession of a firearm.
According to court documents, William Kasey, 43, was arrested in February 2017, following the execution of a search warrant at his home in James City County. The search revealed that Kasey was in possession of multiple firearms despite his prior convictions for armed robbery and assault and battery with a deadly weapon. The investigation identified Kasey as a long-time member of the Bloods street gang and his residence also contained gang related documents and materials.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-62.
Avondale Man Sentenced for Theft of Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that JERRY CAMPBELL (“CAMPBELL”), age 60, of Avondale, Louisiana, was sentenced yesterday for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in federal court, CAMPBELL’s sister was authorized to receive Social Security Administration (“SSA”) Title XVI Supplemental Security Income (“SSI”) disability benefits up until her death, which occurred on November 8, 2013. An investigation by special agents with the SSA Office of Inspector General and the Louisiana State Police revealed CAMPBELL was in possession of his late sister’s Chase Bank ATM card and began withdrawing money from her account after her death. CAMPBELL admitted to federal authorities on January 22, 2018, that he used his late sister’s ATM card to pay for his own personal expenses knowing he was not entitled to her Social Security benefits. CAMPBELL failed to notify the SSA of his sister’s death and took approximately $32,836.00 in SSI benefits from her account.
U.S. District Judge Sarah S. Vance sentenced CAMPBELL to three (3) years of probation and restitution to Social Security Administration for $32,836.00.
U.S. Attorney Peter G. Strasser praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. 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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Aryan Brotherhood Members and Associates Charged with Racketeering for Directing Murders and Other Violent Crimes from Inside California PrisonsRead the Press Release
SACRAMENTO, Calif. — Sixteen members and associates of a prison-based gang have been charged after a long-running investigation into drug trafficking and murders inside and outside of California’s prisons.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott, and Special Agent in Charge Chris Nielsen of the U.S. Drug Enforcement Administration (DEA) made the announcement.
According to a criminal complaint unsealed today, nine defendants have been arrested on federal racketeering and other charges for extensive, organized criminal activity from within California’s most secure prisons. The allegations include murders, drug trafficking and other violent crimes. The complaint charges California State Prison inmates Ronald Yandell, 56; Daniel “Danny” Troxell, 66; William Sylvester, 51; Travis Burhop, 46; Brant Daniel, 44; Donald Mazza, 48, Pat Brady, 48; Michael Torres, 55; and Jason Corbett, 47. At the outset of this investigation, Yandell, Troxell, Sylvester, Burhop, Torres and Corbett were all serving life sentences for murder.
Five other individuals were also arrested as part of the investigation: Samuel Keeton, 40, of Menifee; Jeanna Quesenberry, 52, of Sacramento; Kevin MacNamara, 39, of La Palma; Kristen Demar, 44, of Citrus Heights; and Justin Petty, 37, of Los Angeles. Warrants have been issued for the arrests of Kathleen Nolan 64, of Calimesa, and Matthew Hall, 50, of Manhattan Beach.
U.S. Attorney Scott stated: “Today we are announcing a significant blow to the leadership of a violent criminal enterprise run from inside California prisons. Despite the incarceration of its leaders in the state’s most secure prisons, the Aryan Brotherhood has maintained its deadly influence over members, associates and others both inside and outside prison walls. The charges allege multiple murders of those who run afoul of the gang, as well as an active drug trafficking operation that spans multiple counties and states. The prosecution of these individuals, if convicted, will help to dismantle and weaken this dangerous organization.”
“This extensive investigation revealed the violent underbelly of a race-based prison gang and organized crime enterprise operating behind bars. Agents exposed Aryan Brotherhood operations providing law enforcement opportunities to successfully intervene and save lives,” stated DEA Special Agent in Charge Chris Nielsen. “This case demonstrates our unwavering commitment to combat drug related gang violence not only on the streets, but also behind prison walls.”
“Neutralizing prison gangs is a top priority for the department, and we are committed to stopping illegal activities conducted by them to further their criminal organizations and instill fear in people,” said Secretary Ralph Diaz, California Department of Corrections and Rehabilitation. “Actions like this operation demonstrate how effective our partnerships are with local, state, and federal agencies so that together we can target dangerous individuals in and out of prison. We value the hard work of our staff and our partners, and are proud of the tremendous work that went into this operation.”
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. They used smuggled-in cellphones to direct their drug trafficking activity from their cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
The complaint alleges that the AB members murdered five other inmates as part of their gang activities and conspired to murder several others. The complaint alleges that on Oct. 7, 2011, Sylvester murdered an inmate at Folsom State Prison and, on Aug. 12, 2015, AB associates carried out an order to murder a rival prison gang member at Folsom State Prison. In addition, the complaint alleges that on Oct. 15, 2016, on Corbett’s order an AB associate murdered an inmate at High Desert State Prison in Susanville, AB member Daniel killed an inmate at Salinas Valley prison on Oct. 29, 2016, and AB members Corbett and Brady murdered an inmate on July 20, 2018, at High Desert State Prison as part of their role in the gang. The complaint further describes multiple other murder plots.
The complaint details the drug trafficking activities of the AB. Members and associates oversaw an extensive drug-trafficking network that operated on the streets of Sacramento, Southern California, Missouri, Las Vegas, and elsewhere. On Aug. 11, 2016, MacNamara, a lawyer, and Demar, posing as a paralegal, visited Sylvester in Folsom State Prison in order to smuggle methamphetamine, cellphones, and tobacco. When the contraband was discovered, Sylvester, using a cellphone, advised Demar to blame their contraband smuggling on the Aryan Brotherhood in order to get out of trouble.
According to the complaint, Petty sent heroin, methamphetamine, cellphones, and other items concealed in food packages to Aryan Brotherhood members at Folsom State Prison and High Desert State Prison. In addition, the investigation uncovered a drug trafficking partnership between AB members Yandell and Burhop with Torres a Mexican Mafia member.
This case is the product of an investigation by the DEA with substantial investigative assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. The facts outlined in the complaint could trigger the federal death penalty for several defendants, and a number of the defendants also face a range of mandatory minimum sentences of five to 10 years in prison. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Aryan Brotherhood Members and Associates Charged with Racketeering for Directing Murders and Other Violent Crimes from Inside California PrisonsRead the Press Release
Sixteen members and associates of a prison-based gang have been charged after a long-running investigation into drug trafficking and murders inside and outside of California’s prisons.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott for the Eastern District of California and Special Agent in Charge Chris Nielsen of the U.S. Drug Enforcement Administration (DEA) made the announcement.
According to a criminal complaint unsealed today, nine defendants have been arrested on federal racketeering and other charges for extensive, organized criminal activity from within California’s most secure prisons. The allegations include murders, drug trafficking and other violent crimes. The complaint charges California State Prison inmates Ronald Yandell, 56; Daniel “Danny” Troxell, 66; William Sylvester, 51; Travis Burhop, 46; Brant Daniel, 44; Donald Mazza, 48, Pat Brady, 48; Michael Torres, 55; and Jason Corbett, 47. At the outset of this investigation, Yandell, Troxell, Sylvester, Burhop, Torres and Corbett were all serving life sentences for murder.
Five other individuals were also arrested as part of the investigation: Samuel Keeton, 40, of Menifee; Jeanna Quesenberry, 52, of Sacramento; Kevin MacNamara, 39, of La Palma; Kristen Demar, 44, of Citrus Heights; and Justin Petty, 37, of Los Angeles. Warrants have been issued for the arrests of Kathleen Nolan 64, of Calimesa, and Matthew Hall, 50, of Manhattan Beach.
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. They used smuggled-in cellphones to direct their drug trafficking activity from their cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
The complaint alleges that the AB members murdered five other inmates as part of their gang activities and conspired to murder several others. The complaint alleges that, on Oct. 7, 2011, Sylvester murdered an inmate at Folsom State Prison and, on Aug. 12, 2015, AB associates carried out an order to murder a rival prison gang member at Folsom State Prison.
In addition, the complaint alleges that on Oct. 15, 2016, on Corbett’s order an AB associate murdered an inmate at High Desert State Prison in Susanville, AB member Daniel killed an inmate at Salinas Valley prison on Oct. 29, 2016, and that AB members Corbett and Brady murdered an inmate on July 20, 2018, at High Desert State Prison as part of their role in the gang. The complaint further describes multiple other murder plots.
The complaint details the drug trafficking activities of the AB. Members and associates oversaw an extensive drug-trafficking network that operated on the streets of Sacramento, Southern California, Missouri, Las Vegas and elsewhere. On Aug. 11, 2016, MacNamara, a lawyer, and Demar, posing as a paralegal, visited Sylvester in Folsom State Prison in order to smuggle methamphetamine, cellphones and tobacco. When the contraband was discovered, Sylvester, using a cellphone, advised Demar to blame their contraband smuggling on the AB in order to get out of trouble.
According to the complaint, Petty sent heroin, methamphetamine, cellphones and other items concealed in food packages to AB members at Folsom State Prison and High Desert State Prison. In addition, the investigation uncovered a drug trafficking partnership between AB members Yandell and Burhop with Torres a Mexican Mafia member.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the DEA with substantial investigative assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office and the Nevada County Sheriff’s Office.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Arsonist Sentenced to 60 Months in Prison for Burning Four Emmett Police CarsRead the Press Release
BOISE – Darrel Rich, 69, of Emmett, Idaho, was sentenced today in U.S. District Court to 60 months in prison, followed by three years of supervised release, for damage by fire to vehicles owned by an institution receiving federal funding and damage by fire to vehicles used in interstate commerce, U.S. Attorney Bart M. Davis announced. The 60-month sentence will run partially consecutive to Rich’s 6-year fixed prison sentence in Gem County for his July 2017 unlawful possession of a firearm by a convicted felon and felony driving under the influence. Rich pleaded guilty to the federal arson offenses on February 11, 2019.
According to court records, on July 25, 2017, after police had visited Rich’s residence in Emmett, Rich had telephone communications with his sister wherein he stated that the police needed to “back off now or somebody is going to get hurt” and that if she “call[ed] the cops on me again. . . we’re done.”
According to court records, on July 26, 2017, at approximately 12:04 a.m., Rich drove his Chevrolet Impala to the Emmett Police Department and parked it on First Street across from the Emmett Police Department unsecured back parking lot. Rich exited the car, opened the trunk and retrieved a gasoline canister, walked to the rear of four police cruisers parked in the back parking lot, and poured gasoline from the canister behind each of them. Rich then lit something on fire, threw it toward the police cruisers, and they ignited. In lighting the police cruisers on fire, Rich acted maliciously and without justification or excuse.
According to court records, the four police cruisers were used in local and interstate police activity, including patrolling interstate streets and transporting out-of-state violators of the law. Also, from 2014 through 2017, the Emmett Police Department received federal financial assistance in the form of subsidies for bulletproof vests.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Idaho State Police, the Gem County Sheriff’s Office, and the Emmett Police Department.
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Akron man indicted for having a 9 mm handgun converted into an illegal machine gunRead the Press Release
An Akron man was indicted for illegally having a 9 mm handgun converted into an illegal machine gun.
Kortney D. Moore, 21, was indicted on one count each of being a felon in possession of a firearm, illegal possession of a machine gun and possession of an unregistered firearm.
Moore, on April 2, 2019, possessed a Glock 9 mm pistol with an installed conversion device that allowed the handgun to be fired fully automatic. Additionally, Moore was not permitted to possess any firearm because of previous felony convictions, according to the indictment.
“Adding this specific part to a handgun to make it fully automatic makes that firearm illegal and puts the public at risk,” U.S. Attorney Justin Herdman said. “We will work with our law enforcement partners to prosecute all firearms violations, and especially to stop the flow of these parts into the country.”
“The possession of illegal firearms is a violation of federal law and a threat to public safety,” said Jonathan T. McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work closely with our law enforcement partners to protect our communities.”
This case is being investigated by Assistant U.S. Attorney Christopher Joyce following an investigation by the ATF and Akron Police Department.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wednesday 5 June 2019
Wilmington Man Sentenced to Nine Years for Heroin DistributionRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge James C. Dever, III, sentenced RICHARDO QUAMAINE TILLERY, 33, of Wilmington to 108 months’ imprisonment, followed by 3 years of supervised release. TILLERY pled guilty on August 28, 2018, to one count of distribution of and possession with intent to distribute heroin.
On April 25, 2017, agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) used a confidential informant to conduct a controlled purchase of 50 dosage units of heroin from TILLERY. The transaction occurred inside a wired undercover apartment, which ATF employed to investigate gang and drug activity in the Wilmington, North Carolina, area. Agents observed the transaction as it occurred through a remote live feed. TILLERY’s sale to the CI was not an isolated occurrence: At sentencing, the Court determined that TILLERY’s past conduct involved the distribution of over one kilogram of heroin.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Jake D. Pugh represented the government.
Violent Leader of Marijuana Trafficking Organization Sentenced to PrisonRead the Press Release
TUCSON, Ariz. --On June 3, 2019, Carlos Correa, 29, of Hereford, AZ was sentenced by Senior U.S. District Judge Raner C. Collins to 25 years in prison. Correa previously pleaded guilty to Conspiracy to Possess with Intent to Distribute more than 1,000 Kilograms of Marijuana and received sentencing enhancements for murdering a co-conspirator and for his leadership role in a marijuana trafficking organization. Correa is the last of eight federal defendants to be sentenced in this multi-agency investigation into a large marijuana smuggling enterprise.
The investigation into Correa’s drug smuggling enterprise began on June 18, 2015, after a traffic stop of a vehicle loaded with marijuana that had attempted to circumvent the Willcox Border Patrol checkpoint. A cell phone containing photographs and texts depicting and identifying firearms with obliterated serial numbers, illegal narcotics packaged for distribution, and large sums of U.S. currency was seized from the vehicle and determined to belong to Correa.
Over the next eight months, ATF, Border Patrol, and numerous southern Arizona law enforcement agencies worked together to investigate the drug smuggling enterprise led by Correa and the murder victim. The investigation resulted in the arrest of more than 20 co-conspirators for related offenses. Prosecutions were completed by the Arizona Attorney General’s Office, Cochise County Attorney’s Office, and the United States Attorney’s Office. Participating agencies seized over 4,000 pounds of marijuana and several firearms, including an AR-15 and an AK-47 with obliterated serial numbers.
On February 26, 2016, Correa murdered the victim and co-conspirator during a dispute involving marijuana load payments. Correa pled guilty to second-degree murder in Cochise County case number CR201600301, and was sentenced to 16 years’ imprisonment by Cochise County Superior Court Judge James Conlogue in that case.
The investigation in this case was conducted by ATF and U.S. Border Patrol in conjunction with the Arizona Department of Public Safety and the Sierra Vista Police Department. The federal prosecution was handled by Assistant U.S. Attorneys Adam D. Rossi and Rui Wang, District of Arizona, Tucson.
United States Intervenes in False Claims Act Lawsuit Against Drug Maker Mallinckrodt Alleging Illegal KickbacksRead the Press Release
The United States filed a complaint under the False Claims Act against Mallinckrodt ARD LLC, formerly known as Mallinckrodt ARD Inc. and previously Questcor Pharmaceuticals Inc., in the U.S. District Court for the Eastern District of Pennsylvania, the Department of Justice announced today. The government alleges that Mallinckrodt and Questcor (collectively Mallinckrodt) engaged in conduct that violated the False Claims Act by using a foundation as a conduit to pay kickbacks in connection with its drug H.P. Acthar Gel (Acthar) from 2010 through 2014.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
The government alleges that Mallinckrodt used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients while increasing its price. Mallinckrodt allegedly paid these illegal subsidies through three funds that Mallinckrodt had a foundation set up to pay Acthar Medicare copays to the exclusion of other drugs. The government alleges that Mallinckrodt then routed patients with Acthar prescriptions to these funds. Mallinckrodt allegedly made continuing payments as the sole “donor” to these funds, to keep subsidizing Acthar Medicare copays as it expanded its sales of the drug. The government alleges that the Company paid these subsidies to induce Medicare-reimbursed purchases of Acthar at its ever-increasing price, and used the subsidies to counteract doctor and patient concerns about the drug’s high cost and to market the drug as “free.” The government further alleges that since its acquisition of Acthar in 2001, Mallinckrodt had raised its price from approximately $50 to over $32,200 per 5 milliliter vial by the end of 2014.
“Illegal inducements increase the costs paid by the American taxpayer and distort the market forces that otherwise could control those costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit and prior enforcement actions make clear that the Department will hold accountable drug companies that pay illegal kickbacks to facilitate increased drug prices.”
“Medicare Part D is an important program that our nation instituted to help seniors cover prescription drug costs, and Congress enacted safeguards to ensure Part D’s fiscal viability for those citizens,” said United States Attorney William M. McSwain. “In my office’s continued commitment to fighting health care fraud, we will not allow drug companies to use so-called charitable patient assistance funds to do what they otherwise cannot do – pay patients’ co-pays to circumvent these safeguards and increase their profits.”
"Medicare rules are designed to protect beneficiaries and taxpayer dollars," said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. "HHS-OIG and the U.S. Attorney's Office will continue to work together to fight health care fraud and investigate allegations of co-pay and kickback violations."
The allegations that are the subject of the government’s complaint were originally brought in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases here, which are captioned United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.), and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The claims asserted by the United States are allegations only and there has been no determination of liability.
United States Files Lawsuit Against Drug Maker That Jacked up Drug Prices from $50 to $32,000Read the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that the United States filed a complaint under the False Claims Act against Mallinckrodt ARD LLC, formerly known as Questcor Pharmaceuticals, Inc. (“Mallinckrodt”), in the U.S. District Court for the Eastern District of Pennsylvania. The government alleges that Mallinckrodt violated the False Claims Act by using a foundation as a conduit to pay kickbacks in connection with its drug H.P. Acthar Gel (“Acthar”) from 2010 through 2014 in a scheme that was designed to enable Mallinckrodt to raise the price of a vial of Acthar from $50 to $32,000. Acthar is a drug available to treat certain conditions including acute exacerbations in multiple sclerosis, lupus, and rheumatoid arthritis.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively, “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
The government alleges that Mallinckrodt used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar, so it could market the drug as “free” to doctors and patients despite increasing Acthar’s price astronomically. Mallinckrodt allegedly paid these illegal subsidies through three funds that it established at the foundation to the exclusion of other drugs. The government alleges that Mallinckrodt was the sole “donor” to these funds and routed Acthar patients there to receive virtually guaranteed copay subsidies to counteract doctor and patient concerns about the drug’s high cost. By doing so, Mallinckrodt marketed Acthar as “free” to patients and caused the submission of millions of dollars in false Acthar claims to Medicare. The subsidies it routed through these funds drove Acthar prescribing and was a proven method that negated concerns about the cost of the drug, allowing Mallincrkodt to continually raise its price.
From the time of Mallinckrodt’s acquisition of the drug Acthar in 2001, Mallinckrodt raised the price from approximately $50 per vial to over $32,000 per vial by the end of 2014.
“Drug companies are not allowed to pay patients’ co-pays. That rule is designed to prevent the very thing Mallinckrodt allegedly did here – outrageously jack up Acthar’s price and leave the government with the entire bill,” said U.S. Attorney McSwain. “We will not allow drug companies to use so-called charitable patient assistance funds to do what they otherwise are not allowed to do. That’s an illegal kickback and undermines the viability of Medicare Part D, which our nation instituted to help seniors cover prescription drug costs.”
“Illegal inducements increase the costs paid by the American taxpayer and distort the market forces that otherwise could control those costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit and prior enforcement actions make clear that the Department will hold accountable drug companies that pay illegal kickbacks to facilitate increased drug prices.”
“Medicare rules are designed to protect beneficiaries and taxpayer dollars,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “HHS-OIG and the U.S. Attorney's Office will continue to work together to fight health care fraud and investigate allegations of co-pay and kickback violations.”
The allegations in this case were brought in two lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.
“We sincerely thank the relators in this case. Together with their lawyers, these three citizens provided essential assistance to the government throughout its investigation. Without their willingness to shed light on allegations of fraud, preserving government program funds would be far more challenging,” said U.S. Attorney McSwain.
This matter was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania in conjunction with Civil Division’s Commercial Litigation Branch, and the U.S. Department of Health and Human Services Office of Inspector General. For the U.S. Attorney’s Office, this case is handled by Assistant United States Attorney Colin Cherico and Auditor George Niedzwicki.
The cases are captioned United States of America ex rel. Charles Strunck et al. v. Questor Pharmaceuticals, Inc., No. 12-CV-0175 (E.D. Pa.) and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The United States filed a notice of intervention in these two cases on March 6, 2019.
The claims asserted against defendant are allegations only and there has been no determination of liability.
United States Files Complaint Against 21 Corporations for Environmental Violations at 13 N.Y. and N.J. Gas StationsRead the Press Release
CENTRAL ISLIP, N.Y. – Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against Genesis Petroleum, Inc., and 20 of its associated companies, (collectively, “Defendants”), for violating the Resource Conservation and Recovery Act (“RCRA”) at 13 separate gas stations within the Eastern District of New York and the District of New Jersey. The violations alleged in the complaint involve Defendants’ improper management of 38 underground storage tanks at 13 of Defendants’ gas stations. These tanks typically contain gasoline and diesel fuel and can cause serious environmental damage if allowed to leak.
The lawsuit seeks injunctive relief to assure Defendants’ future compliance with RCRA and an order imposing civil penalties for Defendants’ violations of up to $16,000 per tank for each day of violation.
As alleged in the complaint filed today in federal court in Central Islip, New York, Defendants repeatedly violated RCRA and its related regulations at various times from 2012 to 2016. These violations included failing to install spill and overfill prevention equipment, failing to perform release (i.e., leak or spill) detection and failing to maintain and provide records of release detection monitoring. In some instances, Defendants failed to secure underground storage tanks that were temporarily closed, and failed to investigate or report suspected releases. In another instance, EPA inspectors observed a visibly corroded storage tank at one of Defendants’ stations. At times, Defendants also failed to cooperate with the EPA by refusing to permit station inspections and by failing to respond to the EPA’s requests for information about the underground storage tanks that they owned and/or operated.
“The Defendants’ repeated violations of the Resource Conservation and Recovery Act put groundwater at risk of contamination, potentially endangering the health and safety of residents of Nassau and Suffolk Counties in New York as well as residents of New Jersey,” stated United States Attorney Donoghue. “We are committed to enforcing the laws protecting our residents from hazardous wastes and the dangers they pose.”
“Failure to monitor and maintain tanks to prevent leaks can pose a serious safety risk, as the leaking underground tanks can release toxic components that can seep into the soil and the groundwater,” said EPA Regional Administrator Peter D. Lopez. “These violations are all too common, and EPA is working to ensure that we hold the companies responsible for properly managing their tanks to reduce these risks where these gas stations are located.”
While the violations alleged in the complaint do not pose an immediate threat to the drinking water of the areas’ residents, compliance with the RCRA’s leak prevention regulations for underground storage tanks is vital to ensure the integrity of tanks and prevent the release of petroleum product to soil and groundwater. Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health. When operated conscientiously and monitored closely, underground storage tanks are a safe and effective means to store gasoline. But when tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking petroleum into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions. EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks and monitor for leaks so they can promptly be addressed.
The matter is being handled by Assistant U.S. Attorney Jolie Apicella of the United States Attorney’s Office for the Eastern District of New York, working with Lee Spielmann, Assistant Regional Counsel, EPA Region 2, and Paul Sacker, Senior Enforcement Officer, EPA Region 2.
The Defendants:
Genesis Petroleum, Inc.
Technic Management, Inc.
Gulden Inc.
2664 RT 112 Realty Corp.
607 Station Road Realty Inc.
1000 Motor Parkway Central Islip LLC
616 Broadway LLC
Freeport Realty LLC
199 E. Sunrise Highway Realty Corp.
465 Nassau Road Realty Corp.
Camlica, Inc.
Kucukbey Corp.
North Country Road Realty LLC
Elizabeth NJPO LLC
Elizabeth NJPG LLC
Perth Amboy NJPO LLC
Perth Amboy NJPG LLC
Newark NJPO LLC
Newark NJPG LLC
North Bergen NJPO LLC
North Bergen NJPG LLC
Gas Station Locations:
- 2664 Route 112, Medford, New York
- 607 Station Road, Bellport, New York
- 87 North Country Road, Miller Place, New York
- 616 Route 110, Amityville, New York
- 6077 Jericho Turnpike, Commack, New York
- 199 E. Sunrise Highway, Freeport, New York
- 131 West Merrick, Freeport, New York
- 465 Nassau Road, Roosevelt, New York
- 261 East Merrick Road, Freeport, New York
- 507 Bayway Avenue, Elizabeth, New Jersey
- 163 Fayette Street, Perth Amboy, New Jersey
- 66-80 Bloomfield Avenue, Newark, New Jersey
- 8012 Tonnelle Avenue, North Bergen, New Jersey
Two Men Indicted for Firearms OffensesRead the Press Release
BOSTON – A Boston man and a Randolph man were indicted today in federal court in Boston with conspiring to deal firearms illegally.
Charles A. Slayden, Jr., 25, of Boston, was charged with conspiracy to deal in firearms without a license. Levenson Merilus, 28, of Randolph, was charged with one count of conspiracy to deal in firearms without a license and one count of making false statements to acquire firearms from a licensed dealer.
According to court documents, Slayden and Merilus conspired to purchase firearms from a licensed dealer and re-sell them for profit to individuals in Boston. In furtherance of this conspiracy, Merilus purchased at least seven guns from a licensed dealer, falsely claiming to be purchasing them for himself.
The charge of conspiring to deal in firearms without a license provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of making false statements to acquire firearms from a licensed dealer provides for a sentence of no greater than ten years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Towaoc Man Sentenced to over 10 Years in Federal Prison for Attempted Murder of a Police OfficerRead the Press Release
DURANGO – Wendell Mills, Jr., age 21, of Towaoc, Colorado, was sentenced yesterday by U.S. District Court Judge Robert E. Blackburn to serve over 10 years (121 months) in federal prison, followed by 3 years on supervised release for attempting to murder a federal police officer, announced U.S. Attorney Jason Dunn and FBI Denver Special Agent in Charge Dean Phillips. Mills appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Mills was indicted by a federal grand jury on April 13, 2018, on a charge of Attempted Murder in the Second Degree of a Federal Officer. According to court documents, as well as facts presented during sentencing, on April 8, 2018, Mills tackled a Bureau of Affairs Police Officer who was attempting to effectuate an arrest in Towaoc, Colorado, on the Ute Mountain Ute Indian Reservation. On the ground, Mills and another individual attempted to choke the officer while yelling “goodnight officer!” During the struggle, Mills grabbed the officer’s holstered pistol, causing the gun to discharge into the officer’s leg. As Mills took control of the weapon, the officer was able to release the gun’s magazine. Mills pointed what he believed was a loaded gun at the officers head and pulled the trigger. When the gun failed to discharge, Mills “racked” the slide, and again tried to fire it at the head of the officer. A bystander intervened long enough for the officer to deploy his taser and subdue Mills.
“The brave men and women serving as federal agents and officers routinely accept risk to themselves to protect us and our communities,” said U.S. Attorney Jason Dunn. “Violence against our law enforcement community will simply not be tolerated.”
“This sentence represents the FBI's commitment to prosecute to the fullest extent of the law anyone who seeks to assault or kill any of our law enforcement partners,” said FBI Special Agent in Charge Dean Phillips.
This case was investigated by the FBI and the Bureau of Indian Affairs. The defendant was prosecuted by Assistant U.S. Attorney Jeff Graves.
Toledo woman who served on the board of Lucas County Children Services sentenced to nearly two years in prison for making false statements as part of investigation into the sex trafficking of minorsRead the Press Release
A Toledo woman was sentenced to nearly two years in prison for making false statements as part of investigation into the sex trafficking of minors.
Laura Lloyd-Jenkins, 44, was sentenced to 21 months in federal prison. She previously pleaded guilty to one count making a false statement.
“This defendant held a position of trust in the community. Instead of reporting the exploitation of children to the police when she learned about it, she kept the information to herself and then lied when asked about it,” U.S. Attorney Justin Herdman said.
"We are pleased with the sentence Ms. Lloyd-Jenkins has received for the untruths she told to law enforcement and for the efforts she engaged in to cover up abuses of an under-aged female being trafficked for sex,” said FBI Special Agent in Charge Eric B. Smith. “In a public position of trust , Ms. Lloyd-Jenkins was held at a higher standard. We encourage the public to report any suspicions of child exploitation to law enforcement."
Lloyd-Jenkins was charged as part of a 13-count indictment in which Kenneth Butler, Cordell Jenkins, and Anthony Haynes, are all charged with conspiracy to sex traffic children.
Lloyd-Jenkins obstructed a sex trafficking investigation by notifying a defendant of the forthcoming investigation on March 29, 2017, according to court documents.
Lloyd-Jenkins made false statements to law enforcement on April 12, 2017, about her knowledge of the sexual exploitation of a minor, according to court documents.
Lloyd-Jenkins was the Lucas County Administrator and served on the board of Lucas County Children Services at the time of the crimes, according to court documents and statements.
Haynes, Butler and Jenkins sexually assaulted a juvenile girl beginning in 2014 through 2017, according to court documents.
The girl was 14 when the conduct began and she was in the custody of Hayne. Some of this conduct took place at Greater Life Christian Center in Toledo, where Haynes was pastor at the time. Haynes used his cellular telephone to record these sexual assaults, according to court documents.
Haynes routinely gave the victim money after the acts and told her not to say anything. He told her that if she said anything, it would ruin his family and his church, according to court documents.
Haynes also facilitated the victim being sexually exploited by several other men, including Jenkins, according to court documents.
Jenkins repeatedly sexually exploited the minor at his home on Barrington Drive, at his office at Abundant Life Ministries and at a motel in Toledo. He paid her and referred to the payment as “hush money.” He often recorded these interactions with his cellular telephone, according to court documents.
Jenkins also caused another juvenile girl to engage in commercial sex acts in March 2017, according to the indictment
Butler also caused another juvenile girl to engage in commercial sex acts from 2015 through 2017, according to indictment.
Jenkins was sentenced to life in prison. Butler was sentenced to more than 17 years in prison. Haynes is scheduled to be sentenced later this month.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Alissa Sterling following an investigation by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Timothy J. Downing Sworn in as United States AttorneyRead the Press Release
OKLAHOMA CITY – Timothy J. Downing has taken the oath of office as United States Attorney for the Western District of Oklahoma. Chief U.S. District Judge Joe Heaton administered the oath this morning in chambers so Mr. Downing could take up his duties immediately. A formal investiture will be announced at a later date.
President Trump nominated Mr. Downing as U.S. Attorney on March 5. After passing through the Senate Judiciary Committee on May 9, the full Senate confirmed him by voice vote on May 23. The President signed his commission yesterday.
As the United States Attorney, Mr. Downing is the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States in the Western District of Oklahoma, which the largest of three judicial districts in Oklahoma and includes 40 of the state’s 77 counties.
Prior to his appointment as United States Attorney, Mr. Downing served as Counselor to the Oklahoma Secretary of State. From 2016 to 2018, he served in the Oklahoma House of Representatives, where he was an Assistant Majority Floor Leader, an Assistant Majority Whip, and Vice-Chair of the Judiciary Committee. From 2011 to 2016, Mr. Downing was an Assistant Attorney General for Oklahoma, where he represented the State of Oklahoma in criminal appeals, was a member of the Opinion Conference, and was Director of Legislative Affairs. Since 2011, Mr. Downing has also served as a Judge Advocate in the United States Army Reserve. From 2013 to 2014, he served in this capacity as a Special Assistant United States Attorney at Fort Hood, Texas, working with the United States Attorney’s Office for the Western District of Texas.
Mr. Downing received his Juris Doctor from Regent University School of Law, his Master of Management from Oral Roberts University, and his B.A. in Public Affairs and Administration from the University of Oklahoma.
Mr. Downing takes the reins from First Assistant U.S. Attorney Robert J. Troester, who led the office as Acting U.S. Attorney from February to August of 2018 and continued to run the office after August 2018 with the title of First Assistant. Mr. Troester will continue to have an important leadership role under Mr. Downing.
"Ensuring public safety and the fair and impartial administration of justice are sacred duties," said U.S. Attorney Downing. "It is an honor to join the team of exceptional men and women serving in the Western District of Oklahoma."
Texas Personal Assistant Charged with Fraud for Stealing from her Elderly ClientRead the Press Release
HOUSTON – A 40-year-old Richmond woman has been indicted for fraud and making false statements regarding her participation in a scheme to defraud her 94-year-old client who is now legally blind, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI and Harris County Precinct One Constable Alan Rosen.
A federal grand jury returned the four-count indictment against Amy Anglin aka Amy Powell May 30, 2019. Today, law enforcement took her into custody. She is expected to make her initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m. today.
“Because of the complex nature of these case, the Department of Justice is uniquely suited to investigate and prosecute elder fraud,” said Patrick. “As the Attorney General has stressed, elder fraud will not be taken lightly and sadly this is just one of many similar allegations that we see routinely. I thank the family for bringing this case to the attention of law enforcement and we will do everything in our power to make sure justice is served on Ms. Anglin.”
Anglin is charged with two counts of fraud and two counts of making false statements to federal employees.
“Our investigators worked tirelessly on this appalling case to ensure Ms. Anglin was brought to justice for her alleged crimes,” said Assistant Special Agent in Charge Darryl Wegner. “Ms. Anglin allegedly capitalized on an elderly man’s vulnerability without any regard for his well-being. The FBI, alongside its local, state and federal partners, will continue to work every day to protect our elderly neighbors from fraud and abuse. We urge anyone with information about elder fraud or abuse to contact law enforcement immediately.”
The indictment alleges Anglin began working for a successful real estate developer in Houston in approximately 2015 when he 91 years old and his eyesight was beginning to fail. Anglin allegedly took advantage of the victim’s poor health and began to steal money from his bank accounts and misused his credit cards to purchase, among other things, airline tickets for herself and her family. Anglin would get her elderly victim to sign checks he believed were legitimate and authorized expenditures, according to the charges. She would then allegedly have the funds deposited into her personal bank account.
“I cannot articulate how disturbed I am by allegations in this case,” said Constable Alan Rosen. “I take seriously any possible crimes against the elderly, particularly those who are disabled. This woman is charged with taking advantage of a man who is 54 years her senior. I appreciate the collaborative efforts of the FBI and U.S. Attorney's Office in pursuing this case and ensuring justice is served.”
Anglin would also illegally convert the victim’s assets by use of both his bank account and his credit cards, according to the indictment. In addition to using her access to the victim’s banking accounts and business credit cards, the charges allege Anglin wired herself large amounts of money and used Western Union to transfer the victim’s money to her friends and acquaintances. Anglin allegedly transferred funds from the victim’s accounts to pay for vacations in Las Vegas, resorts in Hawaii and trips to her hometown. Anglin also used the stolen money to pay for country club memberships, golf lessons, overdue child support payments and major home improvements, including a hot tub, according to the indictment.
The charges further allege that at no time during the fraud scheme was Anglin authorized to make these transfers or payments.
Anglin’s scheme was uncovered when the victim’s family began to question certain payments associated with his accounts, according to the indictment.
With the help of a Houston-based attorney, the family has estimated the total amount of fraud associated with Anglin’s scheme to be more than $550,000.
The scheme allegedly began in late 2015 and continued until approximately December 2018.
If convicted of wire fraud, Anglin faces up to 20 years in federal prison, while a conviction for making false statements, carries a potential five-year-prison term.
The FBI and Harris County Precinct One Constable’s Office conducted the investigation. Assistant U.S. Attorneys Heyward Carter and Steve Mellin are prosecuting the case.
The charges are the result of a renewed effort by law enforcement to protect America’s older citizens from elder abuse.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, The Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past February the Attorney General announced the largest elder fraud enforcement action in American history, charging more than 200 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Elder justice refers to a society’s response to elder abuse, which includes physical abuse, caregiver neglect, financial exploitation, psychological abuse, sexual abuse and abandonment.
Elder fraud complaints may be filed with the FTC or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.South Texas Man Charged with Child Exploitation via Social Media AppsRead the Press Release
McALLEN, Texas — A 21-year-old Harlingen man has been indicted for coercion and enticement of a minor, announced U.S. Attorney Ryan K. Patrick.
Alejandro Moya was originally charged by criminal complaint as he arrived at a local motel to meet whom he thought was a 13-year-old female. Today, a federal grand jury returned the indictment. He is expected to appear in court June 13 for his arraignment before U.S. Magistrate Judge J. Scott Hacker.
The complaint alleges that beginning May 9, 2019, Moya enticed an individual he believed to be a 13-year-old female on the social media apps Kik and Whisper. Moya allegedly sent multiple unsolicited sexually explicit images and videos of himself, requesting to meet at a motel in Pharr. The charges allege that in those conversations, he described sexual acts he desired upon meeting.
He was taken into custody as he arrived at the motel.
Moya has been in custody since his arrest. At a detention hearing May 17, the court found he was a danger to the community and ordered he remain in custody.
If convicted, Moya faces a minimum of 10 years in federal prison.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation as part of the Rio Grande Valley Child Exploitation Investigations Task Force.
Assistant U.S. Attorneys Steven Belt and Andrew Henning are prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Six Individuals with Ties to National Gang Charged with Hobbs Act Conspiracy, Narcotics and Firearms OffensesRead the Press Release
BOSTON – Six men were charged in federal court in Worcester today with various narcotics, firearms and conspiracy offenses.
According to the charging documents, Junior Melendez, Shaun Walker, and Keith Johnson, all of Worcester, conspired to rob a high end glass pipe dealer in Rockland in March 2019. That attempt was thwarted by law enforcement, who arrested Johnson and Walker for possession of a firearm. Melendez was also charged for conspiring with Angel Cordova, Juan Rodriguez, and Antoine Mack to possess with intent to distribute, and to distribute, cocaine and crack cocaine. Mack was also charged as a felon in possession of a firearm after he was arrested in Worcester on May 24, 2019, in possession of a loaded .380 caliber handgun.
As alleged in court documents, Melendez is a convicted felon, and has previously served 109 months in federal prison for drug and firearms violations. Melendez is the alleged leader of the Massachusetts chapter of the Almighty Vice Lords street gang. Several of the men arrested also allegedly have ties to the gang.
The defendants are charged by criminal complaint are:
- Junior Melendez, 39, of Worcester, arrested and charged with Hobbs Act conspiracy to interfere with commerce by robbery; conspiracy to use or carry a firearm during and in relation to a crime of violence; and conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base;
- Keith Johnson, 38, of Worcester, presently in state custody and charged federally with Hobbs Act conspiracy to interfere with commerce by robbery; conspiracy to use or carry a firearm during and in relation to a crime of violence; and felon in possession of a firearm;
- Shaun Walker, 42, of Worcester, arrested and charged with Hobbs Act conspiracy to interfere with commerce by robbery;
- Antoine Mack, 37, of Pawtucket, R.I., presently in state custody and charged federally with conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base and felon in possession of a firearm;
- Juan Rodriguez, 28, of Worcester, arrested and charged with conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base;
- Angel Cordova, 35, of Worcester, arrested and charged with conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base.
This morning, agents executed numerous search warrants, which resulted in the seizure of five firearms, 600 rounds of ammunition, approximately $10,000 cash, as well as various amounts of cocaine and crack cocaine.
The charge of Hobbs Act conspiracy to interfere with commerce by robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $1 million. The charge of conspiracy to use or carry a firearm during and in relation to a crime of violence provides for a sentence of no greater than ten years in prison, three years of supervised release and a fine of up to $250,000. The crime of being in felon in possession of a firearm 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Worcester Police Chief Steven M. Sargent; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Colonel Christopher Wagner, Superintendent of the New Hampshire State Police; Worcester Sheriff Lewis G. Evangelidis; Shrewsbury Police Chief James Hester, Jr.; and Pawtucket Police Chief Tina Goncalves, made the announcement today. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office 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.
Rockford Man Sentenced to More Than 11 Years in Prison for Attempted Robbery and Firearm ChargesRead the Press Release
ROCKFORD — A Rockford man was sentenced Tuesday by U.S. District Judge Philip G. Reinhard to 139 months in prison for attempted robbery and using, carrying, and brandishing a firearm during a crime of violence.
DARNELL LEAVY, 28, admitted in a written plea agreement that at approximately 7:00 p.m. on Nov. 5, 2015, he and others attempted to rob the Zake Convenience store, 824 7th St. in Rockford. As stated in Leavy's plea agreement, co-defendant RICKEY CLAYBRON, 33, of Rockford, entered the store first with a gun pointed at two clerks who were behind a glass enclosure. Leavy then entered and also began pointing a gun at the clerks. A third individual entered the store carrying a bag meant for the proceeds of the robbery. The employees of the store barricaded themselves in the glassed-in area where the registers were located. Leavy's plea agreement further states that Leavy tried to kick the door open, but was unsuccessful. In the meantime, Claybron came around the front of the glass enclosure and pointed his gun through the small hole in the front that is used to conduct business with customers, Leavy's plea agreement states. Eventually, Leavy and the other robbers gave up on the robbery and walked out of the store.
Leavy pleaded guilty to the charges on Feb. 22, 2019.
Leavy's sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Claybron is charged with one count of conspiracy to commit robbery, three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence. Also charged in the case is DEANDRE R. HAYWOOD, also known as "Duke," 28, of Rockford. Haywood is charged with one count of conspiracy to commit robbery, three counts of robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence. Claybron and Haywood have pleaded not guilty to the charges and are in custody pending trial. The public is reminded that an indictment contains only charges and is not evidence of guilt. Claybron and Haywood are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Reno Man Pleads Guilty to Possessing Nearly 4,800 Images and Videos of Child PornographyRead the Press Release
RENO, Nev. – A Reno man pleaded guilty today in federal court to possessing thousands of child pornography images and hundreds of videos, including prepubescent minors involved in sexually explicit conduct and sadistic and masochistic conduct, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Daren W. Phillips, 50, pleaded guilty to one count of possession of child pornography before United States District Judge Miranda Du. A sentencing hearing has been set for September 9, 2019.
Phillips admitted that, from 2016 to April 2018, he possessed 4,753 images and 538 videos of child pornography on his laptop computer. Some of the sexually explicit images and videos depicted sadistic and masochistic conduct. Other images and videos depicted prepubescent minors involved in sexually explicit conduct. Phillips admitted he possessed some of the child pornography on his laptop prior to his move from the Savannah, Georgia area to the Reno, Nevada area, and that he had accessed child pornography in Nevada as recently as April 9, 2018.
If the Court accepts the plea agreement, Phillips faces 63 months’ imprisonment and not less than 20 years and up to lifetime supervised release. In addition, under the Sex Offender Registration Notification Act (SORNA), Phillips will be required to register as a sex offender.
The case was investigated by the Northern Nevada Child Exploitation Task Force, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. Assistant United States Attorney James Keller is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Pottawattamie County Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on June 4, 2019, Luke Harrison Bird, II, age 31, was sentenced by United States District Court Judge Stephanie M. Rose for Prohibited Person in Possession of a Firearm. Bird was sentenced to a prison term of 90 months to be followed by a term of supervised release of three years. This sentence will run consecutively to Bird’s state prison sentence for a parole violation.
Bird was released from the Iowa State Penitentiary in January 2018 after serving state prison time for intimidation with a dangerous weapon, going armed with intent, felon in possession of a firearm, assault while participating in a felony, and eluding. On July 15, 2018, Iowa 4th Judicial District Probation Officers were conducting routine random home visits. The Probation Officer searched Bird’s room and located a loaded sawed off shotgun and ammunition.
This case was investigated by the Iowa 4th Judicial District Probation Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Council Bluffs Police Department and the Pottawattamie County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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.
Pittsburgh Man Sentenced to More than 5 Years in Prison for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, was sentenced today in federal court to 70 months’ imprisonment followed by three years’ supervised release on his conviction for violating the federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Daelon Hill-Johnson, 21, for the crimes of possession with intent to distribute a quantity of fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the Court, on or about April 5, 2017, Hill-Johnson possessed with the intent to distribute a quantity of fentanyl, a Schedule II controlled substance. Further, on that same date, Hill-Johnson possessed a Glock 9mm pistol in furtherance of his drug trafficking crime.
Assistant United States Attorneys Heidi M. Grogan and Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania Office of Attorney General, and the Wilkinsburg Police Department for the investigation leading to the successful prosecution of this case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pittsburgh Man Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of theft of government money, Social Security fraud, and Social Security representative payee misuse, United States Attorney Scott W. Brady announced today.
The four-count Indictment, returned June 4, named John Robert Mahoney, 53, as the sole defendant.
According to the Indictment presented to the court, from October 2015 to December, 2017, Mahoney, while acting as a representative payee for a beneficiary, converted to his own use over $1,000 in Title XVI Social Security benefits. Mahoney is further alleged to have falsely represented to the Social Security Administration that the beneficiary was residing with him and to have failed to disclose that the beneficiary was not residing with him. Additionally, the Indictment alleges that from October 2015 to April 2018, Mahoney converted Title II Social Security benefits intended for the use and benefit of another.
For the offense of theft of government property, the law provides for a maximum sentence of not more than 10 years in prison, a fine of $250,000, or both. For each offense of Social Security fraud and Social Security representative payee misuse, the law provides for a maximum sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The U.S. Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pasco County Man Who Threatened Iraqi-American Family Arrested and Charged with Criminal Civil Rights Violation, Obstruction of JusticeRead the Press Release
Tampa, Florida – David Allen Boileau (58, Holiday) has been arrested on a federal criminal complaint charging him with criminal interference with a right to fair housing and obstruction of justice though witness tampering. If convicted, Boileau faces a maximum penalty of 1 year in prison for the criminal civil rights violation and up to 20 years’ imprisonment for witness tampering.
According to the
complaint , over the course of several months, Boileau engaged in a course of conduct intended to threaten and intimidate an Iraqi-American family so that they would move out of their neighborhood and, more broadly, leave the United States. The family, now naturalized United States citizens, had immigrated to the United States from Iraq in 2015, through a refugee visa.According to court documents, Boileau threw screws at a car parked on the family’s property, broke into their house, and went through the family’s mail. Boileau also made several bigoted statements regarding the family’s national origin and religion, referring to them as “ISIS” and an “eyesore to this country,” further adding that he disliked people of Middle Eastern descent. Witnesses reported that on one occasion, Boileau yelled at the family to get out of his neighborhood and country. Boileau said that his goal was to “take care of that family” and to “clean up America.” Boileau also threatened to physically harm witnesses who reported his conduct to local law enforcement authorities.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Frank Murray.
Oral Roberts University to Pay over $300,000 for Allegedly Violating Ban on Incentive CompensationRead the Press Release
Oral Roberts University (ORU), based in Tulsa, Oklahoma, will pay $303,502 to resolve allegations under the False Claims Act of submitting false claims to the U.S. Department of Education in violation of the federal ban on incentive-based compensation, the Department of Justice announced.
Title IV of the Higher Education Act (HEA) prohibits any institution of higher education that receives federal student aid from compensating student recruiters with a commission, bonus, or other incentive payment based on the recruiters’ success in securing student enrollment. The incentive compensation ban protects students against admissions and recruitment practices that serve the financial interests of the recruiter rather than the educational needs of the student.
“The integrity of our system of higher education is founded on allowing students to make enrollment decisions based on their own educational interests,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will not allow these important decisions to be compromised by educational institutions offering recruiters financial incentives to enroll students.”
“Our higher education system should prioritize the educational interests of students, not the financial interests of schools and recruiters,” said U.S. Attorney Sherri A. Lydon for the District of South Carolina. “The U.S. Attorney’s Office will fight to protect against misuse of federal taxpayer dollars intended to serve students’ educational needs.”
The settlement resolves allegations that between 2014 and 2016, ORU hired Joined Inc. to recruit students to ORU. ORU allegedly compensated Joined in part with a share of the tuition that ORU received from the enrollment of recruited students, in violation of the prohibition on incentive compensation.
“The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. This settlement is an example of our commitment to this mission,” said Neil Sanchez, Special Agent in Charge of the U S. Department of Education Office of Inspector General’s Southern Regional Office. “The OIG will continue to work with our law enforcement colleagues and pursue allegations of violations of the False Claims Act in carrying out our important public service.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Maurice Shoe, the co-owner of Joined. The Act permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. Mr. Shoe will receive $45,000.
This matter was investigated by the U.S. Attorney’s Office for the District of South Carolina and the Civil Division’s Commercial Litigation Branch. Investigative assistance was provided by the Office of Inspector General of the Department of Education.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Shoe v. Oral Roberts University, No. 6:16-cv-01570 (D.S.C.).
Opioid Manufacturer Insys Therapeutics Agrees to Enter $225 Million Global Resolution of Criminal and Civil InvestigationsRead the Press Release
LOS ANGELES – Opioid manufacturer Insys Therapeutics agreed to a global resolution to settle the government’s separate criminal and civil investigations, the Department of Justice announced today.
As part of the civil resolution, Insys agreed to pay $195 million to settle allegations that it violated the False Claims Act. As part of the criminal resolution, Insys will enter into a deferred prosecution agreement with the government, Insys’s operating subsidiary will plead guilty to five counts of mail fraud, and the company will pay a $2 million fine and $28 million in forfeiture.
Both the criminal and civil investigations stemmed from Insys’s payment of kickbacks and other unlawful marketing practices in connection with the marketing of Subsys. Insys’s drug Subsys is a sublingual fentanyl spray, a powerful, but highly addictive, opioid painkiller. In 2012, Subsys was approved by the Food and Drug Administration for the treatment of persistent breakthrough pain in adult cancer patients who are already receiving, and tolerant to, around-the-clock opioid therapy.
In April 2018, the United States intervened in five qui tam lawsuits accusing Insys of violating the False Claims Act. In its complaint, the United States alleged that Insys, headquartered in Arizona, paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients. Many of these kickbacks took the form of speaker program payments for speeches to physicians that were, in fact, shams; jobs for the prescribers’ relatives and friends; and lavish meals and entertainment. The United States also alleged that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and lied to insurers about patients’ diagnoses in order to obtain reimbursement for Subsys prescriptions that had been written for Medicare and TRICARE beneficiaries.
Today, an information charging Insys and its operating subsidiary with five counts of mail fraud was filed by the United States Attorney’s Office for the District of Massachusetts. According to the charging document, from August 2012 to June 2015, Insys began using “speaker programs” purportedly to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners.
However, the programs were actually used as a vehicle to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions to patients and for increased dosage of those prescriptions. One practitioner targeted by Insys was a physician’s assistant who practiced with a pain clinic in Somersworth, New Hampshire. During the first year that Subsys was on the market, the physician’s assistant did not write any Subsys prescriptions for his patients. In May 2013, the physician’s assistant joined Insys’s sham speaker program knowing that it was a way to receive kickbacks for writing Subsys prescriptions. After joining the sham speaker program, the physician’s assistant wrote approximately 672 Subsys prescriptions for his patients – many of which were medically unnecessary – and in turn, received $44,000 in kickbacks from Insys.
As part of the criminal resolution, Insys agreed to a detailed statement of facts outlining its criminal conduct with respect to the illegal marketing of Subsys. Insys will enter into a five-year deferred prosecution agreement with the government, while Insys’s operating subsidiary will plead guilty to five counts of mail fraud pursuant to the plea agreement that will be filed in the District of Massachusetts. According to the terms of the criminal resolution, Insys will pay a criminal fine of $2 million and forfeiture of $28 million. The Court has not yet scheduled the plea hearing. Last month, five former Insys executives were convicted after trial of racketeering conspiracy in connection with the marketing of Subsys. In total, eight company executives have now been convicted in Boston for crimes relating to the illegal marketing of Subsys.
“Today’s settlement underscores our determination to hold opioid manufacturers accountable for pushing these highly addictive narcotics on the public via kickbacks to doctors and nurses, and other illegal means,” said United States Attorney for the Central District of California Nick Hanna. “Our goal is to bring about an end to the tragic epidemic of opioid addiction and to go after those who profit from that epidemic.”
“The Department of Justice is committed to taking steps to address the opioid epidemic,” said Principal Deputy Associate Attorney General Claire Murray. “Illegal conduct by pharmaceutical manufacturers, especially in the midst of the opioid crisis, will not be tolerated. We will continue to investigate and vigorously prosecute these types of allegations and hold opioid manufacturers accountable under the law.”
“The opioid epidemic is a plague that has devastated communities and ravaged families across this country,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice is committed to using the legal tools at our disposal to combat the illegal marketing and distribution of opioids, including fentanyl. Today’s settlement sends a strong message to pharmaceutical manufacturers that the kinds of illegal conduct that we have alleged in this case will not be tolerated. I want to assure the families and communities ravaged by this epidemic that the Department of Justice will continue to act forcefully to hold opioid manufacturers accountable for their actions.”
“The first step towards holding this pharmaceutical company responsible for its role in fueling the opioid epidemic was the conviction of top Insys executives,” said United States Attorney for the District of Massachusetts Andrew E. Lelling. “The second step is holding the company itself accountable for prolonged, illegal conduct that prioritized profits over patient health. This global resolution is the culmination of years of work by prosecutors and agents, and these successful prosecutions and civil enforcement efforts should be a model for confronting Corporate America’s role in the opioid epidemic.”
“The announced settlement is a vivid example of the Department of Defense's dogged efforts to protect the integrity of the U.S. military’s health care system and its beneficiaries” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney’s Office to combat health care fraud, especially when pharmaceutical companies use taxpayers' dollars to induce physicians with bribes and kickbacks to prescribe their drugs for unauthorized off-label usage that may very well endanger the recipient's health and safety.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold pharmaceutical companies accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“Paying bribes and providing other incentives to prescribe opioids with little regard to patient welfare surely signals a company is more concerned with profits than patients,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s settlement reaffirms our commitment to ensuring that companies pay a very heavy price for attacking vital government health programs.”
Insys entered into an unprecedented 5-year Corporate Integrity Agreement (CIA) and Conditional Exclusion Release with OIG. Because of the extensive cooperation provided by Insys in the prosecution of culpable individuals and its agreement to enhanced CIA requirements, OIG elected not to pursue exclusion of Insys at this time. The CIA includes several novel provisions, including enhanced material breach provisions, designed to protect Federal health care programs and beneficiaries. In addition, Insys admitted to a Statement of Facts and acknowledged that the facts provide a basis for permissive exclusion. OIG did not release its permissive exclusion authority, as it generally does for CIA parties in False Claims Act settlements. Instead, OIG will provide such a release only after Insys satisfies its obligations under the CIA.
The allegations resolved by the settlement stem from five lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The lawsuits are: United States, et al., ex rel. Guzman v. Insys Therapeutics, Inc., et al., 13-cv-5861; United States ex rel. Andersson v. Insys Therapeutics, Inc., 14-cv-9179; United States ex rel. John Doe and ABC, LLC v. Insys Therapeutics, Inc., et al., 14-cv-3488; United States ex rel. Erickson and Lueken v. Insys Therapeutics, Inc., 16-cv-2956; and United States ex rel. Jane Doe, et al. v. Insys Therapeutics, et al., 16-cv-7937. The whistleblowers’ share of the settlement announced today has not yet been determined.
These matters were handled by the United States Attorney’s Office for the Central District of California; the Department of Justice’s Civil Division; the United States Attorney’s Office for the District of Massachusetts; and the Department of Health and Human Services, Office of Inspector General.
Investigations were conducted by the Federal Bureau of Investigation, Boston Field Division; the Food and Drug Administration, Office of Regulatory Affairs; the Drug Enforcement Administration, New England Field Division; Department of Defense, Defense Criminal Investigative Service; U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; U.S. Postal Inspection Service’s Boston Division; United States Postal Service, Office of Inspector General, Northeast Area Field Office; Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division; Office of Personnel Management, Office of Inspector General; and the Defense Health Agency.
Opioid Manufacturer Insys Therapeutics Agrees to Enter $225 Million Global Resolution of Criminal and Civil InvestigationsRead the Press Release
Opioid manufacturer Insys Therapeutics agreed to a global resolution to settle the government’s separate criminal and civil investigations, the Department of Justice announced today. As part of the criminal resolution, Insys will enter into a deferred prosecution agreement with the government, Insys’s operating subsidiary will plead guilty to five counts of mail fraud, and the company will pay a $2 million fine and $28 million in forfeiture. As part of the civil resolution, Insys agreed to pay $195 million to settle allegations that it violated the False Claims Act. Both the criminal and civil investigations stemmed from Insys’s payment of kickbacks and other unlawful marketing practices in connection with the marketing of Subsys. Insys’s drug Subsys is a sublingual fentanyl spray, a powerful, but highly addictive, opioid painkiller. In 2012, Subsys was approved by the Food and Drug Administration for the treatment of persistent breakthrough pain in adult cancer patients who are already receiving, and tolerant to, around-the-clock opioid therapy.
Today, the U.S. Attorney’s Office for the District of Massachusetts filed an Information charging Insys and its operating subsidiary with five counts of mail fraud. According to the charging document, from August 2012 to June 2015, Insys began using “speaker programs” purportedly to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners. However, the programs were actually used as a vehicle to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions to patients and for increased dosage of those prescriptions. One practitioner targeted by Insys was a physician’s assistant who practiced with a pain clinic in Somersworth, New Hampshire. During the first year that Subsys was on the market, the physician’s assistant did not write any Subsys prescriptions for his patients. In May 2013, the physician’s assistant joined Insys’s sham speaker program knowing that it was a way to receive kickbacks for writing Subsys prescriptions. After joining the sham speaker program, the physician’s assistant wrote approximately 672 Subsys prescriptions for his patients – many of which were medically unnecessary – and in turn, received $44,000 in kickbacks from Insys.
As part of the criminal resolution, Insys agreed to a detailed statement of facts outlining its criminal conduct with respect to the illegal marketing of Subsys. Insys will enter into a five-year deferred prosecution agreement with the government, while Insys’s operating subsidiary will plead guilty to five counts of mail fraud pursuant to the plea agreement that will be filed in the District of Massachusetts. According to the terms of the criminal resolution, Insys will pay a criminal fine of $2 million and forfeiture of $28 million. The Court has not yet scheduled the plea hearing. Last month, five former Insys executives were convicted after trial of racketeering conspiracy in connection with the marketing of Subsys. In total, eight company executives have now been convicted in Boston for crimes relating to the illegal marketing of Subsys.
In April 2018, the United States intervened in five qui tam lawsuits accusing Insys of violating the civil False Claims Act. In its Complaint, the United States alleged that Insys, headquartered in Arizona, paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients. In addition to payments for sham speaker program speeches, the kickbacks also allegedly took the form of jobs for the prescribers’ relatives and friends, and lavish meals and entertainment. The United States also alleged that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and lied to insurers about patients’ diagnoses in order to obtain reimbursement for Subsys prescriptions that had been written for Medicare and TRICARE beneficiaries.
“The Department of Justice is committed to taking steps to address the opioid epidemic,” said Principal Deputy Associate Attorney General Claire Murray. “Illegal conduct by pharmaceutical manufacturers, especially in the midst of the opioid crisis, will not be tolerated. We will continue to investigate and vigorously prosecute these types of allegations and hold opioid manufacturers accountable under the law.”
“The opioid epidemic has devastated communities and ravaged families across this country,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice is committed to using the legal tools at our disposal to combat the illegal marketing and distribution of opioids, including fentanyl. Today’s settlement sends a strong message to pharmaceutical manufacturers that the kinds of illegal conduct that we have alleged in this case will not be tolerated. I want to assure the families and communities ravaged by this epidemic that the Department of Justice will hold opioid manufacturers accountable for their actions.”
“This criminal resolution today with Insys, coupled with the convictions of the eight executives, shows this Office’s resolve to hold both corporations and individuals accountable for their crimes,” said United States Attorney for the District of Massachusetts Andrew E. Lelling.“For years, Insys engaged in prolonged, illegal conduct that prioritized its profits over the health of the thousands of patients who relied on it. Today, the company is being held responsible for that and for its role in fueling the opioid epidemic. This global resolution is the culmination of years of work by prosecutors and agents, and these successful prosecutions and civil enforcement efforts should be a model for confronting corporate criminal activity.”
“Today’s settlement underscores our determination to hold opioid manufacturers accountable for pushing these highly addictive narcotics on the public via kickbacks to doctors and nurses, and other illegal means,” said United States Attorney for the Central District of California Nick Hanna. “Our goal is to bring about an end to the tragic epidemic of opioid addiction and to go after those who profit from that epidemic.”
“Paying bribes and providing other incentives to prescribe opioids with little regard to patient welfare surely signals a company is more concerned with profits than patients,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s settlement reaffirms our commitment to ensuring that companies pay a very heavy price for attacking vital government health programs.”
Insys entered into an unprecedented 5-year Corporate Integrity Agreement (CIA) and Conditional Exclusion Release with OIG. Because of the extensive cooperation provided by Insys in the prosecution of culpable individuals and its agreement to enhanced CIA requirements, OIG elected not to pursue exclusion of Insys at this time. The CIA includes several novel provisions, including enhanced material breach provisions, designed to protect Federal health care programs and beneficiaries. In addition, Insys admitted to a Statement of Facts and acknowledged that the facts provide a basis for permissive exclusion. OIG did not release its permissive exclusion authority, as it generally does for CIA parties in False Claims Act settlements. Instead, OIG will provide such a release only after Insys satisfies its obligations under the CIA.
“The announced settlement is a vivid example of the Department of Defense's dogged efforts to protect the integrity of the U.S. military’s health care system and its beneficiaries” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney’s Office to combat health care fraud, especially when pharmaceutical companies use taxpayers' dollars to induce physicians with bribes and kickbacks to prescribe their drugs for unauthorized off-label usage that may very well endanger the recipient's health and safety.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold pharmaceutical companies accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
The allegations resolved by the settlement stem from five lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The lawsuits are: United States, et al., ex rel. Guzman v. Insys Therapeutics, Inc., et al., 13-cv-5861; United States ex rel. Andersson v. Insys Therapeutics, Inc., 14-cv-9179; United States ex rel. John Doe and ABC, LLC v. Insys Therapeutics, Inc., et al., 14-cv-3488; United States ex rel. Erickson and Lueken v. Insys Therapeutics, Inc., 16-cv-2956; and United States ex rel. Jane Doe, et al. v. Insys Therapeutics, et al., 16-cv-7937. The whistleblowers’ share of the settlement announced today has not yet been determined.
These matters were handled by the Department of Justice’s Civil Division, the United States Attorney’s Office for the District of Massachusetts, the United States Attorney’s Office for the Central District of California, and the Department of Health and Human Services, Office of Inspector General. Investigations were conducted by the FBI, Boston Field Division; the Food and Drug Administration, Office of Regulatory Affairs; the Drug Enforcement Administration, New England Field Division; Department of Defense, Defense Criminal Investigative Service; U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; U.S. Postal Inspection Service’s Boston Division; United States Postal Service, Office of Inspector General, Northeast Area Field Office; Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division; Office of Personnel Management, Office of Inspector General; and the Defense Health Agency.
Omaha Man Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on June 4, 2019, William Labenz, age 38, was sentenced to five years in prison to be followed by five years of supervised release by United States District Court Judge Stephanie M. Rose for Conspiracy to Distribute Methamphetamine .
In late 2017, the Iowa Division of Narcotics Enforcement with the Federal Bureau of Investigation Safe Streets Task Force investigated a large drug trafficking organization responsible for transporting large quantities of methamphetamine to and around the western Iowa and eastern Nebraska areas.
On March 4, 2018, law enforcement conducted a traffic stop and the driver, William Labenz, was arrested for driving under suspension. Inside the vehicle’s trunk one quarter pound of methamphetamine was located. On April 26, 2018, in a search of Labenz’s home, additional methamphetamine, scales and baggies were found. The investigation revealed Labentz was transporting methamphetamine for the drug trafficking organization.
This case was investigated by Iowa Division of Narcotics Enforcement, Federal Bureau of Investigation’s Safe Streets Task Force, Omaha Police Department, Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Norwood Woman Charged with Distributing Synthetic Marijuana into State Correctional FacilitiesRead the Press Release
BOSTON – A Norwood woman was arrested this morning and charged in federal court in Worcester with distributing synthetic marijuana into state correctional facilities.
Caitlin Marcey, 27, was charged by criminal complaint with distribution of a controlled substance. Marcey was released on conditions following an initial appearance.
According to charging documents, on two separate occasions, Marcey mailed papers soaked in synthetic marijuana, or “K2,” to Massachusetts correctional facilities. Massachusetts jails combat the illegal introduction of synthetic marijuana –often referred to as “K2” – into the facilities. The most common means of doing so is by soaking or spraying synthetic marijuana onto documents and then transporting those documents, either in person or by mail, into the jail, where they can be smoked. It is common to attempt to include documents soaked in synthetic marijuana in mailings disguised as legal mail, as this mail is generally not subjected to rigorous screening due to attorney-client privilege.
In November 2018, investigators at the Souza Baranowksi Correctional Center (SBCC) in Lancaster, Mass., monitored recorded jail calls during which Marcey allegedly arranged for the delivery of synthetic marijuana. Investigators subsequently intercepted mail sent by Marcey that purport to be an attorney mailing to an SBCC inmate. The records inside the mailing tested positive for synthetic marijuana.
Similarly, in December 2018, Marcey was allegedly caught on U.S. Post Office security video mailing a package disguised as being sent by an attorney to an inmate at the Worcester County House of Corrections. The contents of that mailing also tested positive for the presence of synthetic marijuana.
The charge of distribution of a controlled substance provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $1 million. 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; Worcester County Sheriff Lew Evangelidis; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Sentenced to 100 Months in Heroin Conspiracy CaseRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that EUGENE MCGEE, age 28, of New Orleans, was sentenced today after previously pleading guilty for his role in a conspiracy to distribute heroin in the New Orleans metropolitan area.
According to court documents, on January 9, 2019, MCGEE pled guilty to Count One of the Indictment, which charged him and two other individuals with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin. The defendants were members of a drug conspiracy that distributed heroin throughout the New Orleans metropolitan area beginning from on or about June 2015 through June 2017. The investigation into this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration’s High-Intensity Drug Trafficking Area (HIDTA) group, including taps of cell phones used by Akeem Fleming to communicate with customers and other co-conspirators.
U.S. District Judge Martin L.C. Feldman sentenced MCGEE to 100 months imprisonment on the heroin distribution charge, to be followed by a 4-year term of supervised release. MCGEE was also ordered to pay restitution in the amount of $1,434.49 to the Jefferson Parish Sheriff’s Office for damages caused to law enforcement vehicles when he attempted to evade arrest on October 26, 2016.
On April 3, 2019, Judge Feldman sentenced MCGEE’s co-defendants, Akeem Fleming and Terrance Milton, to 131 and 60 months imprisonment, respectively.
U.S. Attorney Strasser praised the work of the HIDTA Task Force Group of the Drug Enforcement Administration in investigating this matter. Assistance was also provided by Narcotics Group IV at the Jefferson Parish Sheriff’s Office, Gretna Major Crimes Task Force, and Louisiana State Police. Assistant United States Attorneys Shirin Hakimzadeh and André Jones were in charge of the prosecution.
Nassau Pharmacist to Pay $100,000 for Submitting False Claims to Medicare and MedicaidRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith and New York State Attorney General Letitia James announced today that Cathy Grossman, the owner and pharmacist-in-charge of Nassau Pharmacy, Inc., will pay $100,000 to resolve allegations that she and Nassau Pharmacy violated the federal and New York False Claims Acts by billing the federal and state governments for prescription drugs that Grossman and her staff never dispensed.
“When pharmacists submit false claims to Medicare and Medicaid, hard-working taxpayers foot the bill,” said United States Attorney Jaquith. “We will continue to protect the public fisc and the integrity of our health care programs by holding health care professionals responsible when they line their pockets improperly.”
“Fraudulently billing Medicare and Medicaid for personal gain is both illegal and immoral,” said Attorney General Letitia James. “Not only did Cathy Grossman steal from government programs intended to support vulnerable populations, but she saddled taxpayers with the bills of this dishonest activity. We will continue to work to root out Medicaid fraud throughout New York State.”
As part of today’s settlement, Grossman admitted that, from March 2010 through March 2017, she submitted or caused others to submit false claims for payment to Medicare and Medicaid for prescription drugs that she and the staff at Nassau Pharmacy never dispensed. In some instances, she billed Medicare and Medicaid for drugs that patients never ordered or never picked up from Nassau Pharmacy. In other instances, Grossman billed the government for brand name drugs but dispensed to her patients less expensive generic alternatives.
“Health care professionals must be held to a high standard of ethical behavior,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”). “Along with our law enforcement partners, HHS-OIG will continue to ensure that those individuals and entities that bill federal health care programs do so in an honest manner.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $22,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 1:16-cv-1338.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, HHS-OIG, and the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Adam J. Katz and New York State was represented by Special Assistant Attorney General Jill D. Brenner.
Mishawaka, Indiana Man Sentenced to 41 Months in PrisonRead the Press Release
SOUTH BEND – James Kindig, age 53, of Mishawka, Indiana, was sentenced before United States District Court Judge Jon E. DeGuilio upon his plea of guilty to possession of child pornography, announced U.S. Attorney Kirsch.
Kindig was sentenced to 41 months in prison followed by 5 years of supervised release and ordered to pay $48,750 in restitution.
According to documents in this case, in November 2017 Kindig possessed approximately 472 images and 262 videos that portrayed child pornography. Some of these contained sadistic images and prepubescent children or children under the age of 12.
This case was investigated by FBI with assistance from the St. Joseph County High Tech Crimes Task Force. The case was handled by Assistant U.S. Attorney John Maciejczyk.
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Mingo County Woman Sentenced for Theft of Social Security Income BenefitsRead the Press Release
Defendant fraudulently obtained over $90,000
CHARLESTON, W.Va. – A Mingo County woman was sentenced to six months of federal incarceration for fraudulently obtaining Social Security Income benefits, announced United States Attorney Mike Stuart. Elizabeth Muncy, 43, of Kermit, Mingo County, West Virginia was further placed on supervised release for three years once she is released from custody. She was also ordered to pay restitution to the Social Security Administration in the amount of $91,683. United States Attorney Mike Stuart praised the work of the Social Security Administration-Office of Inspector General and the United States Social Security Administration.
“Stealing social security benefits is despicable – truly despicable,” said United States Attorney Mike Stuart. “I have no sympathy whatsoever for anyone ripping off social security and hard-working taxpayers by fraudulently stealing public benefits. It is truly a despicable, disgraceful act.”
Muncy applied for Title XVI Social Security benefits in 1987. These Social Security benefits are based on income and living arrangements, and create a duty on the recipient to report a change in income or living arrangements. In 2008, Muncy indicated that she was married, but claimed she was not residing with her spouse. In fact, Muncy was residing with her spouse and had been married and living together since 2006. Their combined income would have lowered the amount of money she was receiving every month from the Social Security Administration. From October 2006 through October 17, 2017, Muncy received $91,683 in Social Security benefits in excess of the amount she was due. On April 18, 2018, Muncy gave a detailed statement to federal investigators with the Office of Inspector General admitting that she was living with her spouse the entire time and knew that she was receiving money that she was not entitled to receive.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Milwaukee Man Indicted for Offenses Involving Heroin, Fentanyl, Cocaine, and FirearmsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that a federal grand jury had indicted Jonathan C. Copeland (age 57) for possession with intent to distribute at least 100 grams of heroin, at least 40 grams of fentanyl, cocaine, and marijuana. In addition, the indictment charges Copeland with possessing firearms in furtherance of his drug trafficking crime and possessing firearms after having been convicted of multiple felonies.
If convicted of the drug charge, Copeland faces a mandatory minimum of five years’ imprisonment with a maximum of 40 years in prison, a $5,000,000 fine, and at least 4 years on supervised release. If convicted of possessing firearms in furtherance of his drug trafficking, Copeland faces a mandatory minimum of five years and a maximum of life in prison, which must run consecutively to any other sentence. Finally, if convicted of being a felon in possession of a firearm, because his criminal history qualifies him as an Armed Career Criminal, Copeland faces a mandatory minimum of 15 years in prison.
The investigation of this case was conducted by the Federal Bureau of Investigation (FBI) Southeastern Wisconsin Regional Gang Task Force, which includes Task Force Officers from the Milwaukee Police Department – District Five. This case is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
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