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Thursday 30 May 2019
Marion County man sentenced for drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sanford Austin Mays, of Fairmont, West Virginia, was sentenced today to 90 months incarceration for drug possession and firearms charges, United States Attorney Bill Powell announced.
Mays, age 40, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of Firearms” in January 2019. Mays admitted to possessing methamphetamine in Marion County in June 2018. Mays, having been previously convicted of multiple felonies, is also accused of having a .45 caliber pistol in Marion County in June 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the White Hall Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Mansfield man indicted on child pornography chargesRead the Press Release
A Mansfield man was indicted on child pornography charges.
Christian K. Smith, Jr., 44, was was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Smith knowingly received, attempted to receive and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between May 9, 2014 through May 2, 2019, according to the indictment.
The indictment also charges that on or about May 2, 2019, Smith possessed two cellular phones and a laptop computer that contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by the Federal Bureau of Investigation Child Exploitation Task Force in Mansfield Office.
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.
Manitowoc Man Sentenced to 84 Months in Federal Prison for $3,100,000 Ponzi Scheme That Defrauded Elderly VictimsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on May 29, 2019, James A. Nickels (age 68), of Manitowoc, Wisconsin was sentenced to 84 months in federal prison for carrying out a $3,100,000 Ponzi scheme that defrauded 37 victims, most of whom were elderly. Nickels had earlier pleaded guilty to one count of wire fraud in violation of 18 U.S.C. § 1343, and one count of money laundering in in violation of 18 U.S.C. § 1957.
The information presented at the sentencing hearing showed that Nickels was a prominent member of the Manitowoc community for many years, and used that status to solicit family, friends, and neighbors, many of whom were elderly, to “invest” in his business, which was largely a Ponzi scheme. Twelve persons who had lost money, or whose deceased family members had lost money due to the fraud, gave in-person statements at the sentencing, explaining the financial and emotional harm and sense of betrayal that the defendant’s actions caused them.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach described the defendant’s actions as “a scam” whose victims were vulnerable. He stated that the defendant had committed an “evil, horrible” crime that was “grotesque” and had “high impact.” The Chief Judge further reprimanded the defendant for a lack of remorse, saying that this was not a matter of business plans not working out, but a “deliberate, sophisticated effort to defraud” that was “not an aberration.” The Chief Judge further stated that Nickels’ conduct was a “betrayal of trust” of friends and family that gained him a great benefit, and that the magnitude of the offense was a “huge aggravating factor” requiring a sentence that both punished and deterred.
“As a society, we have an obligation to protect our older members from predators,” said U.S. Attorney Krueger. “This seven-year sentence sends a clear message that taking advantage of elderly persons will be met with severe punishment. This case highlights the Department of Justice’s commitment to working with state and local partners to combat elder fraud.”
“When scammers like James Nickels take advantage of honest citizens who are simply looking to invest their hard-earned savings and retirement funds for a better life, it’s not only reprehensible, but devastating,” stated Special Agent in Charge Tara Sullivan of IRS Criminal Investigation, Chicago Field Office. “Today’s 84-month sentencing demonstrates how federal law enforcement works together to help stop the criminal behavior of those who prey on innocent investors in order to enrich themselves.”
IRS Criminal Investigation and the Wisconsin Department of Financial Institutions investigated the case. Jan Klika provided victim-witness support. Assistant U.S. Attorneys Zachary J. Corey and Stephen A. Ingraham prosecuted the case.
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Mandeville, Louisiana Neurologist Pleads Guilty for Role in Scheme to Unlawfully Dispense Controlled Substances and to Commit Health Care FraudRead the Press Release
A neurologist from Mandeville, Louisiana, pleaded guilty today for his role in a scheme to unlawfully prescribe controlled substances, namely oxycodone and hydrocodone, without performing required face-to-face examinations, and his role in a scheme to commit health care fraud.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Anil Prasad, M.D., 62, pleaded guilty before U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana to one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of conspiracy to commit health care fraud. Sentencing is set for Sept. 4, 2019, before Judge Milazzo.
In pleading guilty, Prasad admitted that he conspired with others to unlawfully distribute and dispense controlled substances at a medical clinic that was, in actuality, a pill mill. Prasad admitted that he rarely performed face-to-face examinations of patients at the clinic to determine whether any medical necessity existed for the controlled substances that he dispensed to them. Instead, Prasad admitted he pre-signed prescriptions for controlled substances for patients. Those patients then picked up the prescriptions from the clinic after making a cash payment to the clinic. Prasad also admitted that he pre-signed prescriptions before traveling internationally, and that patients would pick up those prescriptions while he was out of the country. Further, Prasad admitted that he knew certain patients who received the pre-signed prescriptions used their Medicare and Medicaid benefits to fill the prescriptions at area pharmacies. In total, Medicare and Medicaid paid approximately $1,657,461.15 for those prescriptions, Prasad admitted.
This case was investigated by the FBI, HHS-OIG, the Drug Enforcement Administration, the U.S. Department of Veterans Affairs and the Louisiana Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorney Jared Hasten of the Fraud Section and Assistant U.S. Attorney Sharan Lieberman of the Eastern District of Louisiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Mandeville, Louisiana Neurologist Pleads Guilty for Role in Scheme to Unlawfully Dispense Controlled Substances and to Commit Health Care FraudRead the Press Release
WASHINGTON – A neurologist from Mandeville, Louisiana, pleaded guilty today for his role in a scheme to unlawfully prescribe controlled substances, namely oxycodone and hydrocodone, without performing required face-to-face examinations, and his role in a scheme to commit health care fraud.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
Anil Prasad, M.D., 62, pleaded guilty before U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana to one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of conspiracy to commit health care fraud. Sentencing is set for Sept. 4, 2019, before Judge Milazzo.
In pleading guilty, Prasad admitted that he conspired with others to unlawfully distribute and dispense controlled substances at a medical clinic that was, in actuality, a pill mill. Prasad admitted that he rarely performed face-to-face examinations of patients at the clinic to determine whether any medical necessity existed for the controlled substances that he dispensed to them. Instead, Prasad admitted he pre-signed prescriptions for controlled substances for patients. Those patients then picked up the prescriptions from the clinic after making a cash payment to the clinic. Prasad also admitted that he pre-signed prescriptions before traveling internationally, and that patients would pick up those prescriptions while he was out of the country. Further, Prasad admitted that he knew certain patients who received the pre-signed prescriptions used their Medicare and Medicaid benefits to fill the prescriptions at area pharmacies. In total, Medicare and Medicaid paid approximately $1,657,461.15 for those prescriptions, Prasad admitted.
This case was investigated by the FBI, HHS-OIG, the Drug Enforcement Administration, the U.S. Department of Veterans Affairs and the Louisiana Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorney Jared Hasten of the Fraud Section and Assistant U.S. Attorney Sharan Lieberman of the Eastern District of Lousiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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Manchester Man Sentenced to 198 Months in Prison for Assaulting and Robbing a Victim During a Gun TransactionRead the Press Release
CONCORD- Anthony R. Farmer, 26, of Manchester, New Hampshire, was sentenced to 198 months in prison for assaulting and robbing an individual who was seeking to purchase firearms, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 21, 2017, the defendant and two co-defendants participated in the assault and robbery at gunpoint of a person who was assisting the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant and his co-defendants arranged for the victim to come to a residence in Nashua on the pretext that they would be illegally selling firearms to the victim. They then assaulted and robbed the victim of the money that was for the gun purchase. Because the victim was assisting federal agents, the victim had been equipped with audio and video surveillance equipment that recorded the robbery and assault. Soon after the crime occurred, the defendant and his co-defendants were arrested. They each had some of the money that had been taken from the victim.
Farmer pleaded guilty on August 20, 2018, to conspiracy, robbery, assault, use of a firearm during a crime of violence, and possession of a firearm by a convicted felon.
Co-defendant Raymond Perez was sentenced to 51 months. The third co-defendant, Aaron Sperow, was sentenced to 102 months in prison.
“Violent crime involving firearms is a grave threat to the safety of the public,” said U.S. Attorney Murray. “This substantial sentence shows that there will be serious consequences for those who choose to participate in crimes of violence. Through Project Safe Neighborhoods, we will continue to work with our law enforcement partners to protect our cities and towns from gun violence.”
“Today’s sentencing demonstrates law enforcement’s commitment to protect our communities from violent crime,” said ATF Special Agent in Charge Kelly D. Brady, ATF Boston Field Division. “ATF will continue to collaborate with our law enforcement partners to eradicate violent gun related crime and keep our neighborhoods safe.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nashua Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Dronzek.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Little Rock Man Pleads Guilty to Lying on Loan Applications, Lenders Lose $3.3 MillionRead the Press Release
LITTLE ROCK – A Little Rock man pleaded guilty today to making false statements on loan applications, costing banks and lenders over $3.3 million. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced the guilty plea of Marcus Shane Sweetin, 46, of Little Rock. Sweetin entered his plea earlier today before United States District Judge James M. Moody, Jr.
Sweetin pleaded guilty Thursday to an Information charging him with one count of making a false statement on a loan application. Sweetin operated Sweetin Farms LLC, which farmed two parcels of land in Arkansas County and Prairie County. In April 2013, Sweetin applied for a loan from AgHeritage Farm Credit Services that sought to recoup money his company allegedly spent acquiring a Case 290 Magnum Tractor. The tractor itself was to serve as collateral, and in support of the loan, Sweetin gave AgHeritage an invoice from an equipment dealer reflecting the tractor had been purchased outright and a copy of the company check that had supposedly been used to pay.
The tractor had not been purchased outright but had actually been financed through another lender. The real tractor bore a different serial number, and the check and invoice Sweetin provided in support of the loan were both fabricated. During his plea hearing, Sweetin acknowledged this was only one of several instances where he lied to lenders in order to secure loans for his farming operation. At various points, he sought purchase money for farming equipment financed elsewhere using fictitious serial numbers and invoices, he overstated farmable acreage and understated debt to secure crop loans, and he double pledged collateral. All told, these false statements secured loans that occasioned over $3.3 million in losses to AgHeritage, BancorpSouth, and Regions Bank.
Judge Moody will sentence Sweetin at a later date. Making false statements on loan applications is punishable by up to 30 years’ imprisonment. The case was investigated by the FBI and prosecuted by Assistant United States Attorney Alexander D. Morgan.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
http://www.justice.gov/edarTwitter:
@EDARNEWSLead defendant gets 20-year sentence in major drug trafficking investigationRead the Press Release
SAVANNAH, GA: The lead defendant in a Statesboro drug trafficking conspiracy has been sentenced to 20 years in federal prison.
Natividad Dias, a/k/a as “Nat,” “Nate,” “Amigo” or “Huevos,” 46, a Mexican national who lived in Sylvania, Ga., was sentenced to 240 months in federal prison by Chief U.S. District Court Judge J. Randal Hall after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Dias also must pay a $10,000 fine and will serve an additional five years of supervised release after completion of his sentence. There is no parole in the federal system.
“By operating a pipeline of illegal narcotics from Atlanta, California and Mexico, this conspiracy polluted these small communities of the Southern District as surely as if it had dumped toxic waste in the neighborhoods,” said Christine. “The law-abiding residents saw something and said something – so we did something by bringing these drug traffickers to justice.”
Evidence in the case showed that Dias was a leader, organizer and recruiter of the conspiracy that distributed multi-kilogram quantities of methamphetamine, powder cocaine, and marijuana. During the operation, investigators seized kilograms of methamphetamine and multiple pounds of marijuana, along with multiple firearms.
Operation Icehawk, a joint federal, state and local investigation began in 2015, after citizens complained about drug trafficking and violent crime in Screven County, Ga., and soon uncovered a conspiracy to distribute methamphetamine and marijuana in Screven, Effingham, Jenkins, Bulloch and Evans counties.
In addition to Dias, other defendants in the operation include:
John Timothy Collins, 48, of Sylvania, Ga.;
John Kenneth Joyner, 47, of Sylvania, Ga.;
Palmer Alton Bazemore III, 51, of Sylvania, Ga.;
Cassie Jo Barbee, 36, of Sylvania, Ga.;
Jaime Elton Newsome, 39, of Statesboro, Ga.;
Megan Nicole Bazemore, 30, of Millen, Ga.;
Christina Elizabeth Davis, 32, of Sylvania, Ga.;
Derrick Riggs, 42, of Statesboro, Ga.;
Gary Paul Joyner, 51, of Sylvania, Ga.;
Monica Isabell Jimenez, 22, of Statesboro, Ga.;
Zackary Allen Durrence, 26, of Statesboro, Ga.;
John Dillon Joyner, 25, of Sylvania, Ga.;
Jonathan Travis Oliver, 36, of Sylvania, Ga.;
Michael Shane Bishop, 44, of Claxton, Ga.;
Jonathon Evan Oglesby, 27, of Millen, Ga.;
Alfred Anthony Woods, 28, of Sylvania, Ga.; and,
Noah Quinn Pope, 25, of Sylvania, Ga.
The 19th defendant named in the indictment currently is undergoing a medical evaluation.
“We are fortunate in the Southern District of Georgia to have such a hard-charging group of local, state and federal personnel pursuing the real bad guys,” said Jamie Jones, Special Agent in Charge of the Georgia Bureau of Investigation (GBI) Southeastern Regional Drug Enforcement Office. “Drug distributors poison and disrupt families across the state daily. This organization has been terminated, and hopefully some families will benefit from their demise.”
Robert J. Murphy, the Special agent in Charge of the Drug Enforcement Agency Atlanta Field Division stated, “This defendant infested a number of small communities with more than methamphetamine and marijuana. His drug trafficking activities also led to the spread of violent crime. Thanks to our federal, state and local law enforcement partners who responded to this small communities’ call for help. As a result, this poly-drug trafficker was removed from the streets and will spend well-deserved time in prison. This case is a shining example of how success can be achieved when local, state, federal law enforcement agencies and the U.S. Attorney’s Office work together make our communities safer.”
“This case is collaborative effort to rid violent narcotics traffickers from Screven County,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Methamphetamine and other drugs have devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area,” said Homeland Security Investigations (HSI) Atlanta Special Agent in Charge Nick S. Annan. “This sentencing stems from an extensive collaborative effort between federal, state and local enforcement partners to disrupt a drug trafficking organization responsible for flooding southern Georgia with these dangerous substances. This operation is a testament to the seamless partnership between federal, state and local law enforcement agencies serving the citizens and communities of Georgia.”
This case is being prosecuted as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, the premier U.S. Department of Justice program utilized to dismantle multi-jurisdictional drug trafficking organizations.
The investigation was a joint operation of federal agencies including the DEA, HIS, ATF, and the U.S. Postal Inspection Service (USPIS). Participating state agencies included the GBI, Georgia State Patrol, Georgia Department of Natural Resources, and the Ogeechee Judicial Circuit District Attorney’s Office. Local law enforcement included the Screven County Sheriff’s Office, Sylvania Police Department, Effingham County Sheriff’s Office, Jenkins County Sheriff’s Office, Bulloch County Sheriff’s Office, Evans County Sheriff’s Office; and the Claxton Police Department.
Assistant United States Attorney Marcela C. Mateo is prosecuted the case for the United States.
Law enforcement and a community member honored by U.S. Attorney at awards ceremonyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eight law enforcement entities and one community member were recognized today for their outstanding work in the greater Clarksburg/Elkins area.
United States Attorney Bill Powell recognized U.S. Probation Officer Jill Henline, ATF Special Agent Steve Worthy, U.S. Postal Inspection Service Inspector Ryan Amstone, several other law enforcement professionals, and a community member with U.S. Attorney Awards for their contributions to create safer communities.
“I have the great pleasure to work many law enforcement and other community based professionals. We honor these individuals and groups today because they are “difference makers” in our communities. They represent the best of us, and our communities are better because of their extraordinary work,” said Powell.
United States Probation Officer Jill Henline was recognized for her work to ensure that a defendant paid her restitution after committing a crime. Loretta Reckart was convicted and sentenced for defrauding WVU out of a substantial amount of money. She was ordered to pay restitution in excess of $80,000. She was sentenced to probation and Jill Henline is her probation officer. Henline has went above and beyond to ensure that Reckart’s restitution is paid sooner, rather than later. Henline was the recipient of the U.S. Attorney Award for Outstanding Financial Investigation.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent Steve Worthy has been involved in three multi-defendant Organized Crime Drug Enforcement Task Force Program (OCDETF) cases. Agent Worthy assisted other investigators in OCDETF’s Ice Mountain investigation, which resulted in a 2016 Elkins Division multi-defendant gun and drug trafficking indictment. He took a leading role in OCDETF’s Shattered Glass investigation, which resulted in two 2017 Elkins Division multi-defendant gun and drug trafficking indictments. He was the case agent at the trial of interstate drug trafficker Rocky Idleman, sentenced to life earlier this year. And Agent Worthy took the leading role in 2018’s ICE Dragon investigation which resulted in a 2018 multi-defendant Clarksburg Division gun and drug trafficking indictment. Agent Worthy’ was the recipient of the 2019 Outstanding Investigative Effort Award.
United States Postal Inspection Service Inspector Ryan Amstone has been working with the U.S. Attorney’s Office for the Elder Justice Initiative’s focus on money mules. With Ryan’s assistance, the office has identified people as money mules. Ryan has done six knock-and-talks on these individuals and explained to them that they may be a victim of a scam and to stop sending money. Amstone has been doing excellent work in this area as the Elder Justice Initiative is one of the Department’s priorities. Amstone was awarded the 2019 Outstanding Initiative Support Award for his efforts.
The case against Meylan Montalvo Gomez, et al, with an investigation conducted jointly by the FBI, the USSS, the DHS, the WVSP, and the Monongalia County Sheriff’s Office, discovered what has become known as a gas station skimmer scheme. The victim cardholders were reimbursed by their banks, causing nine banks to be owed over $100,000. Because of the substantial work on this case, the 2019 Outstanding Fraud Investigative Effort Award was given to:
- Detective William “Pete” Tennant, Monongalia County Sheriff’s Office
- Sgt. David Simmons, West Virginia State Police
- Task Force Officer Jason Webber, the FBI/Clarksburg Police Department
- Task Force Officer Jeremy Thompson, the United States Secret Service/South Charleston Police Department
- Special Agent Scott Fell, Department of Homeland Security
A victim’s mother was also honored with the 2019 Outstanding Community Service Award for her efforts in an opioid case.
The ceremony was held in U.S. Bankruptcy Judge Patrick M. Flatley’s courtroom and included remarks from U.S. Attorney Bill Powell and the presence of many local, state and federal law enforcement leaders from throughout West Virginia.
Law Enforcement Officers Indicted for Extortion and FraudRead the Press Release
BROWNSVILLE, Texas – Two former deputies with the Cameron County Precinct 5 Constable’s Office have been arrested and charged with conspiracy to commit extortion under color of official right and wire fraud, announced U.S. Attorney Ryan K. Patrick.
Benito De La Cruz Jr., 45, of San Benito, and Armando Gonzalez Jr., 31, of Weslaco, are still in law enforcement but not currently affiliated with Precinct 5.
A federal grand jury returned the 12-count indictment under seal May 28. They were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Ronald Morgan at 10:30 a.m. tomorrow.
The indictment alleges the De La Cruz and Gonzalez unlawfully ran license plate and criminal history checks. They allegedly performed or asked others to perform these law enforcement database checks in return for money or gifts.
De La Cruz is also charged with five counts of making false statements to federal officers. The indictment alleges he was not truthful when the FBI special agent interviewed him about the scheme. De La Cruz allegedly made these false statements in five separate instances during his interview.
If convicted, the men face up to 20 years in federal prison for extortion or wire fraud and a maximum five years for the conspiracy. De La Cruz also faces a potential sentence of five years for each count of making false statements, upon conviction. The charges also carry a potential $250,000 maximum fine.
The FBI, Cameron County District Attorney’s Office, Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and the Texas Rangers conducted the Organized Crime Drug Enforcement Task Force investigation. The Harlingen Police Department also assisted with the arrests. Assistant U.S. Attorneys Jody Young, Oscar Ponce and Robert Johnson are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Larry Steven Covington Jr. Sentenced to Serve 15 Years in Federal Prison for Assaulting a Federal Officer, Illegally Possessing a Firearm and Failure to SurrenderRead the Press Release
KNOXVILLE, Tenn. - On May 29, 2019, Larry Steven Covington Jr., 40, of Knoxville, Tennessee, was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Court Judge, to serve 180 months in federal prison. Covington pleaded guilty on May 28, 2019, to an information charging him with assault upon a federal officer, possession of a firearm by a convicted felon and failure to surrender for service of sentence.
According to the plea agreement on file with U.S. District Court, in April 2018, Covington was sentenced in U.S. District Court to serve 46 months in federal prison. He was released on bond pending designation by the federal Bureau of Prison (BOP). A few days after his sentencing hearing, he received a letter from BOP instructing him to report to FCI Berkley in West Virginia on May 2, 2018. Covington signed the letter at the U.S. Marshals Service acknowledging his report date. However, on May 2, 2018, Covington failed to report to FCI Berkley and a warrant was issued for his arrest.
On July 2, 2018, Covington and his girlfriend, Pennie Smith, drove to the U.S. Post Office on Weisgarber Road in Knoxville to pick up a package. Smith had been harboring Covington since he failed to report to BOP custody. Deputy U.S. Marshals had previously received a tip that Covington would be at the post office and were surveilling the parking. Smith went into the post office to retrieve the package while Covington waited in the vehicle. Deputy U.S. Marshals surrounded the vehicle, identified themselves as law enforcement, and ordered Covington out of the car. Instead of exiting, Covington drove forward onto the sidewalk in an attempt to get away. A Deputy U.S. Marshal blocking the sidewalk was forced to jump out of the direct line of the vehicle to avoid being struck. Covington fled in the vehicle and drove at speeds close to 100 mph until he reached his mother’s neighborhood and fled to a friend’s house who allowed him to hide in his crawl space. Covington was ultimately located in the crawl space by law enforcement and taken into custody. A search of his vehicle turned up three guns and ammunition.
This investigation was conducted by the U.S. Marshal Service and FBI. Assistant U.S. Attorney Jennifer Kolman represented the United States in court proceedings.
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Kansas Cardiologist and His Practice Pay $5.8 Million to Resolve Alleged False Billings for Unnecessary Cardiac ProceduresRead the Press Release
Joseph P. Galichia M.D., a Wichita, Kansas, cardiologist, has agreed to pay $5.8 million to resolve allegations that he and his medical group, Galichia Medical Group, P.A. (GMED), violated the False Claims Act by improperly billing federal health care programs for medically unnecessary cardiac stent procedures, the Department of Justice announced. Galichia also agreed to a three-year period of exclusion from participation in any federal health care program. The settlement relates to a lawsuit in which the United States intervened on Dec. 12, 2014.
“This settlement reflects the Department of Justice’s commitment to ensuring the safety of federal health care program beneficiaries and that taxpayer monies are properly spent,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.
“Patient safety is critically important,” said U.S. Attorney Stephen McAllister for the District of Kansas. “Performing medically unnecessary procedures puts patients at risk and defrauds federal health care programs.”
“When a physician bills the government for medically unnecessary procedures, both patients’ health and taxpayers can end up paying the price,” said Special Agent in Charge Steve Hanson of the Office of Inspector General for the U.S. Department of Health and Human Services. “OIG is excluding Dr. Galichia from participation in Medicare, Medicaid, and other federal health care programs, and we will continue to work with our partners to protect the health and welfare of Medicare beneficiaries.”
The government contended that Galichia and GMED knowingly submitted false billings from Jan. 1, 2008, through Dec.31, 2014, for surgical procedures in which Galichia implanted coronary stents that were not medically necessary. The allegedly false billings were submitted to Medicare, the Defense Health Agency, and the Federal Employees Health Benefits Program.
This is the government’s third False Claims Act settlement with Galichia and GMED. In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation. In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted claims for a higher level of service than provided, billed twice for the same services, and billed for services not provided.
The settlement announced resolves allegations in a lawsuit filed by Aly Gadalla M.D., in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Dr. Gadalla will receive approximately $1.16 million.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care 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 (HHS), at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the U.S. Attorney’s Office for the District of Kansas and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG, the FBI, the Defense Health Agency on behalf of the TRICARE program, the Defense Criminal Investigative Service of the Inspector General for the Department of Defense, and the Office of Personnel Management, Office of Inspector General.
The case is captioned United States ex rel. Gadalla v. Dr. Joseph Galichia, et al., Case No. 12-1259 (D. Kan.). The claims resolved by the settlements are allegations only and there has been no determination of liability
Kansas Cardiologist and His Practice Pay $5.8 Million to Resolve Alleged False Billings for Unnecessary Cardiac ProceduresRead the Press Release
Joseph P. Galichia M.D., a Wichita, Kansas, cardiologist, has agreed to pay $5.8 million to resolve allegations that he and his medical group, Galichia Medical Group, P.A. (GMED), violated the False Claims Act by improperly billing federal health care programs for medically unnecessary cardiac stent procedures, the Department of Justice announced. Galichia also agreed to a three-year period of exclusion from participation in any federal health care program. The settlement relates to a lawsuit in which the United States intervened on Dec. 12, 2014.
“This settlement reflects the Department of Justice’s commitment to ensuring the safety of federal health care program beneficiaries and that taxpayer monies are properly spent,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.
“Patient safety is critically important,” said U.S. Attorney Stephen McAllister for the District of Kansas. “Performing medically unnecessary procedures puts patients at risk and defrauds federal health care programs.”
“When a physician bills the government for medically unnecessary procedures, both patients’ health and taxpayers can end up paying the price,” said Special Agent in Charge Steve Hanson of the Office of Inspector General for the U.S. Department of Health and Human Services. “OIG is excluding Dr. Galichia from participation in Medicare, Medicaid, and other federal health care programs, and we will continue to work with our partners to protect the health and welfare of Medicare beneficiaries.”
The government contended that Galichia and GMED knowingly submitted false billings from Jan. 1, 2008, through Dec.31, 2014, for surgical procedures in which Galichia implanted coronary stents that were not medically necessary. The allegedly false billings were submitted to Medicare, the Defense Health Agency, and the Federal Employees Health Benefits Program.
This is the government’s third False Claims Act settlement with Galichia and GMED. In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation. In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted claims for a higher level of service than provided, billed twice for the same services, and billed for services not provided.
The settlement announced resolves allegations in a lawsuit filed by Aly Gadalla M.D., in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Dr. Gadalla will receive approximately $1.16 million.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care 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 (HHS), at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the U.S. Attorney’s Office for the District of Kansas and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG, the FBI, the Defense Health Agency on behalf of the TRICARE program, the Defense Criminal Investigative Service of the Inspector General for the Department of Defense, and the Office of Personnel Management, Office of Inspector General.
The case is captioned United States ex rel. Gadalla v. Dr. Joseph Galichia, et al., Case No. 12-1259 (D. Kan.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
KC Man Sentenced to 14 Years for Heroin TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin.
Michael R. Davis, also known as “OG Mike,” 73, was sentenced by U.S. District Judge Greg Kays to 14 years and two months in federal prison without parole.
On May 4, 2018, Davis pleaded guilty to participating in a conspiracy to distribute heroin from October 2012 to September 2016. The drug quantity attributable to Davis is at least one kilogram but less than three kilograms of heroin. (The street value of heroin during this time was approximately $100 to $200 per gram).
Davis was seated in the driver’s seat of a vehicle parked in front of a Kansas City, Mo., residence on Nov. 5, 2015, when police officers conducted a car check. Co-defendant Barbara A. Chinneth, 68, of Kansas City, Mo., was standing at the driver’s side door of the vehicle. She was in possession of 32 baggies of heroin – four baggies in her front right small jeans pocket and 28 baggies in her mouth – that weighed a total of 16.01 grams. Inside the vehicle, officers found three baggies that contained a total of 1.71 grams of heroin and a white plastic bag that contained $1,146. Both Davis and Chinneth were arrested.
Davis has 14 prior criminal convictions, including two federal drug trafficking convictions and a bank robbery in which the bank president was shot in the arm and another individual was fatally shot in the head.
Davis is the final defendant among five defendants who pleaded guilty and have been sentenced in this case. Chinneth was sentenced to nine years in federal prison without parole. Sidney A. Williams, 65, of Kansas City, Mo., was sentenced to 15 years and eight months in federal prison without parole (followed by a lifetime of supervised release). Scheronn Scott, also known as “Mo,” 53, of Kansas City, Mo., was sentenced to 17 years in federal prison without parole. Lloyd Taylor, also known as “Tulu,” 68, of Kansas City, Mo., was sentenced to five years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Justice Department Requires Amcor to Divest Medical Flexible Packaging Assets in Order to Proceed with Bemis AcquisitionRead the Press Release
The Department of Justice announced today that Amcor Limited will be required to divest three manufacturing facilities and other assets in order to proceed with its $6.8 billion acquisition of Bemis Company Inc. The Department said that, without the divestiture, the proposed acquisition would eliminate competition between two of only three significant suppliers of three medical packaging products that are critical to the safe transportation and use of medical devices.
The Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.
“The medical packaging products that Amcor and Bemis manufacture are integral to the safe sterilization, transportation, and use of medical devices in hospitals, medical offices, and labs around the country,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement, which requires Amcor to divest its medical flexible packaging business at these three facilities, will ensure that medical care providers continue to benefit from competition for these critical products.”
According to the Department’s complaint, Amcor and Bemis both supply three types of heat-seal, coated medical packaging products critical to the safe transportation and use of medical devices: medical-grade Tyvek rollstock, medical-grade paper rollstock, and medical-grade Tyvek die-cut lidding. Due to Amcor’s and Bemis’s collective overall expertise in meeting the needs of doctors and hospitals, Amcor and Bemis are two major competitors supplying these products. According to the complaint, the combination of Amcor and Bemis would eliminate head-to-head competition between the companies in the markets for these products and threaten the benefits that medical care providers have realized from that competition in the form of lower prices and better service.
Under the terms of the proposed settlement, Amcor must divest manufacturing facilities located in Ashland, Massachusetts; Milwaukee, Wisconsin; and Madison, Wisconsin; along with certain related assets, to Tekni-Plex Inc., or an alternate acquirer approved by the United States. Tekni-Plex is an international leader in flexible films and medical supplies.
Amcor, headquartered in Zurich, Switzerland, had total sales of over $9 billion in 2018, including approximately $288 million in sales of flexible packaging for medical use in the United States.
Bemis, a Missouri corporation headquartered in Neenah, Wisconsin, had total sales of over $4 billion in 2018, including approximately $260.9 million in sales of flexible packaging for medical use in the United States.
As required by the Tunney Act, the proposed consent decree, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Indictment: So-called ‘Glock switches’ Would have Turned Pistols into Machine GunsRead the Press Release
TOPEKA, KAN. – A Topeka man is facing federal charges after he imported devices from China that for $19 a piece can turn a Glock pistol into a fully automatic machine gun, U.S. Attorney Stephen McAllister said today.
The defendant was indicted yesterday in U.S. District Court in Topeka.
Jacob Gragg, 33, Topeka, Kan., is charged in a four-count indictment with one count of unlawful possession of a machine gun, one count of unlawful possession of an unregistered machinegun, one count of unlawful possession of an explosive and one count of possession with intent to distribute marijuana.
The indictment alleges investigators seized seven so-called “Glock switches” and half a pound of Tannerite, which is a binary explosive, from Gragg. Gragg bought the Glock switches from a company in Shenzhen, Gaundong Province, China. On a website, the company advertised the “Glock Auto Switch,” saying the product would convert all models of Glock pistols to “Full Auto.” The device operates by applying force to the trigger bar to prevent it from limiting the weapon to firing only one round each time the trigger is depressed.
The indictment alleges Gragg was prohibited from possessing the explosive because he had prior felony convictions in Shawnee County District Court and Morris County District Court.
If convicted, he faces the following penalties:
Unlawful possession of a machine gun (count one) and unlawful possession of an explosive by a prohibited person (count three): Up to 10 years in federal prison and a fine up to $250,000
Possession of an unregistered machine gun (count two): Up to 10 years and a fine up to $10,000.
Possession with intent to distribute marijuana: Up to five years and a fine up to $250,000.
Investigating agencies included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Topeka Police Department and the Shawnee County Sheriff’s Office. Assistant U.S. Attorney Skip Jacobs is prosecuting.
OTHER INDICTMENTs
Omar Urista, 22, Topeka, Kan., is charged with one count of carjacking. The crime is alleged to have occurred April 4, 2019.
The indictment alleges Urista used force to steal a 2003 Chevrolet Tahoe from its owner.
If convicted, he faces up to 15 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment: Kansas Couple Stole Millions in Check Kiting SchemeRead the Press Release
TOPEKA, KAN. - The owners of the Plainville Livestock Commission in Rooks County are charged with carrying out a check kiting scheme that cost banks millions of dollars, U.S. Attorney Stephen McAllister said today.
A grand jury in Topeka returned the indictment Wednesday.
Tyler Gillum, 47, and his wife, Camden Gillum, 50, both of Plainville, Kan., are charged with 31 counts of bank fraud, one count of making a false statement to the Small Business Administration in an application for a $1.5 million loan, and one count of making a false statement to Almena State Bank in an application for a $500,000 line of credit.
The indictment alleges the Gillums defrauded Almena State Bank in Almena, Kan., Landmark Bank in Manhattan, Kan., Colorado East Bank and Trust in Lamar, Colo., Astra Bank in Scandia, Kan., TBK Bank in Dallas, Guaranty State Bank in Beloit and The Bank in Oberlin, Kan.
The indictment alleges investigators examined unfunded checks and wire transfers totaling more $2 billion sent by Tyler Gillum as part of the scheme. That included 409 wire transfers and 7,584 checks. Tyler Gillum, formerly a loan officer for Montezuma State Bank, owned and operated with his wife Plainville Livestock Commission. In advertisements for the business, they said: “The sale barn facility was first established in 1950 and is situated in the heart of Cow-Calf Country. We pride ourselves in offering individualized attention to marketing your livestock.”
The indictment defines check kiting as a form of check fraud that takes advantage of the time between presentment of a check and the actual receipt of funds (“the float”) to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow written checks to clear that otherwise would bounce.
Investigating agencies included the U.S. Department of Agriculture – Office of Inspector General, the FBI, the Federal Deposit Insurance Corporation – Officer of Inspector General, the Federal Housing Finance Agency – Office of Inspector General and the U.S. Small Business Administration – Office of Inspector General. Assistant U.S. Attorney Rich Hathaway is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indian National Sentenced to More Than Seven Years in Federal Prison for Call Center ScamRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Sharvil Patel (23, Tampa) to seven years and six months in federal prison for conspiracy to commit wire fraud, relating to his participation in an India-based call center scam. As part of his sentence, the court also entered a money judgment of $80,000.
Patel had pleaded guilty on February 6, 2019.
According to court documents, from 2014 through at least 2016, Patel conspired with U.S.-based coconspirators and India-based call centers to extort money from U.S. residents by impersonating IRS officers and misleading victims to believe that they owed money to the IRS and would be arrested and fined if they did not pay their alleged back taxes immediately. The conspirators collected the fraud proceeds by (1) withdrawing cash from prepaid cards purchased and funded by victims; (2) hiring other conspirators (runners) to retrieve money wired by the victims to those runners; and/or (3) hiring runners to open bank accounts into which victims deposited fraud proceeds. The defendants collected the proceeds by providing the runners with the victims’ names, locations, and amounts paid. The runners were directed to retrieve the fraud proceeds in cash and turn the funds over to the defendants, often less a payment to the runner for opening the account or conducting the transaction.
Four others previously pleaded guilty for their roles in the scheme. In March 2019, Alejandro Juarez was sentenced to 15 months in federal prison and Nishitkumar Patel was sentenced to 8 years and 9 months in federal prison. In April 2019, Hemalkumar Shah was sentenced to 8 years and 6 months in federal prison and Brenda Dozier was sentenced to 21 months in federal prison.
“As a proud IRS Special Agent of 20 years, this fraud infuriates me,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigations Tampa Field Office. “We here at IRS CI recognize the heartache and concern these crooks cause innocent people. This is why we are eager to team up with our law enforcement partners to track down these impersonators in whatever corner of the globe they may be hiding.”
“This terrible scam took advantage of people who wanted to comply with what they thought were proper authorities,” said FDLE’s Tampa Special Agent in Charge Mark Brutnell. “Thank goodness, investigators from several agencies were able to put an end to it and those responsible will no longer be able to mislead innocent people.”
“Over the last several years, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees,” said J. Russell George, Treasury Inspector General for Tax Administration. “Victimizing taxpayers by impersonating IRS employees is a serious crime,” George continued. “TIGTA and our law enforcement partners will continue working to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. This significant sentencing should serve notice to those who engage in this type of criminal activity that they will be held accountable.”
This case was investigated by the Treasury Inspector General for Tax Administration, the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, Homeland Security Investigations, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
Independence Woman Sentenced for Fraud Scheme, Identity TheftRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., woman was sentenced in federal court today for stealing the identities of relatives and acquaintances to file fraudulent tax returns.
Sheryl D. Hughes, 41, was sentenced by U.S. District Judge Howard F. Sachs to three years in federal prison without parole. The court also ordered Hughes to pay $7,045 in restitution to her victims.
On June 8, 2018, Hughes pleaded guilty to one count of mail fraud and one count of aggravated identity theft.
Hughes obtained Social Security numbers from several relatives and acquaintances and used them to prepare false and fraudulent individual income tax returns. The income tax returns included false information concerning, among other things, income earned, federal income tax withheld, false education credits, and false and fraudulent claims for income tax refunds. Hughes also used false addresses to have the tax refund checks mailed to an address accessible to her, or for refunds to be made by electronic transfers to debit cards or bank accounts accessible to her.
This case was prosecuted by Assistant U.S. Attorney Tom Larson. It was investigated by IRS-Criminal Investigation.
Illegal Alien Sentenced After Sixth Illegal Entry into the U.S.Read the Press Release
ALEXANDRIA, Va. – A Guatemalan man who has illegally entered the United States six times, was sentenced today to prison for his second conviction for illegally entering the United States.
“Sanchez-Velasquez has illegally crossed the southern border of the United States six times in under two years,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Undeterred by numerous prior illegal reentry convictions, Sanchez-Velasquez has clearly demonstrated his total disregard for our nation’s laws and continues to break them time and time again.”
According to court documents, Alexis Leonel Sanchez-Velasquez, 26, reentered the United States after having been removed on five prior occasions. On April 7, 2013, Sanchez-Velasquez was apprehended by U.S. Border Patrol near La Joya, Texas, for illegally entering the United States. He was removed at taxpayers’ expense on April 12, 2013. On June 5, 2013, Sanchez-Velasquez was again encountered crossing the border near Loredo, Texas, not two months since being removed to Guatemala. He was again removed to Guatemala on June 17, 2013. He illegally returned again three months later and was subsequently removed to Guatemala on Sept. 24, 2013. Three months later, Sanchez-Velasquez was apprehended yet again for illegal reentry and removed on Dec. 27, 2013, for the fourth time. He was removed for a fifth time in July 2014 after illegally reentering a month prior.
He reentered the United States sometime after July 2014 and worked illegally for the past five years. On March 29, Sanchez-Velasquez was arrested for driving under the influence and was later convicted of that offense.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. District Judge Liam O’Grady sentenced Sanchez-Velasquez to 60 days in prison. Assistant U.S. Attorney Carina A. Cuellar and Special Assistant U.S. Attorney Patrick D. Reid 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. 1:19-cr-004.
Hyperbaric Oxygen Therapy Facility Agrees to Pay the United States over $400,000 to Settle False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – HyperHeal Hyperbarics, Inc. (“HyperHeal”) has agreed to pay $414,640.25 to settle claims that it submitted false claims to the United States for physician services that were not rendered and for medically unnecessary hyperbaric oxygen therapy. HyperHeal is a hyperbaric oxygen therapy facility that provides hyperbaric oxygen therapy to patients at multiple locations in Maryland.
The settlement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Services, Mid-Atlantic Division.
“The U.S. Attorney’s Office for the District of Maryland is committed to thoroughly investigating claims of fraud and holding health care providers accountable when they subject their patients to unnecessary medical treatment and waste taxpayer dollars.” said U.S. Attorney Robert K. Hur.
According to the settlement agreement, the United States contends that from March 2013 to November 2014, HyperHeal submitted claims for one patient to TRICARE for hyperbaric oxygen therapy as if that therapy were supervised by a physician when, in fact, no physician supervised the therapy. HyperHeal, through its former president and part-owner, Eric Shapiro, prepared bills indicating that the therapy was supervised by a physician when it was not supervised by a physician. During the same time period and for the same patient, HyperHeal submitted claims to TRICARE for medically unnecessary hyperbaric oxygen therapy. No qualified medical professional evaluated the patient’s condition throughout the treatment. Instead, Shapiro, who was a hyperbaric oxygen therapy technician, directed the patient’s treatment and obtained authorization for continued treatment by sending misleading documents to TRICARE.
The settlement resolves a lawsuit brought by whistleblowers, Lesa Schrum and Juliette Skelton, who are former employees of HyperHeal. The lawsuit, which was filed in the District of Maryland in 2016, alleges that HyperHeal and Shaprio submitted or caused the submission of false claims to the United States for hyperbaric oxygen therapy services that were not medically necessary, for hyperbaric oxygen therapy services that were not properly supervised by a physician, and for hyperbaric treatment which was not provided. As part of the settlement, the whistleblowers will receive $74,635.25.
The claims resolved by this settlement are allegations only. The settlement is not an admission of liability by HyperHeal, nor a concession by the United States that its claims are not well founded.
U.S. Attorney Robert K. Hur commended the Defense Criminal Investigative Service for its investigation and thanked Assistant United States Attorneys Matthew P. Phelps and Roann Nichols, who handled the case.
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Honduran National Pleads Guilty to False Statement in Passport ApplicationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO, age 41, a citizen of Honduras, pled guilty to a one-count bill of information with making a false statement in a U.S. passport application, in violation of 18 U.S.C. ' 1542.
According to the bill of information, WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO falsely stated in the application that his name was Omar Orlando Cuadrado when in fact he is Wilmer Adonys Osorto.
WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for June 13, 2019.
U.S. Attorney Strasser praised the work of the United States Department of State Diplomatic Security Service in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Hoboken Man Admits Conspiring to Promote A Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, man today admitted his role in a conspiracy to promote a voter bribery scheme during a municipal election, U.S. Attorney Craig Carpenito announced.
Dio Braxton, 43, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiring with Frank Raia and others to use the mail to promote a voter bribery scheme during the 2013 municipal election in Hoboken.
According to documents filed in this case and statements made in court:
Braxton and others, at Raia’s direction, participated in a scheme to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots in support of Raia’s city council campaign and a rent control referendum that Raia supported. Braxton and others working for Raia provided voters with vote-by-mail applications and then either mailed or delivered the completed applications to the Hudson County Clerk’s office. After the voters completed mail-in ballots, Braxton and others working for Raia either mailed or delivered them to the Hudson County Clerk’s Office.
After the election, Braxton and others handed out $50 checks to voters from an entity hired by Raia’s Political Action Committee. Before handing the checks to voters, Braxton and others working for Raia required the voters to sign declarations stating that they had worked for the campaign. In reality, many of these voters never actually worked for the campaign and these declarations were merely a way for Braxton, Raia, and others to hide the fact that the voters had been paid for their votes.
Braxton faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 10, 2019.
Raia was previously indicted on the same charge and is awaiting trial. The charge against him is merely an accusation, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Vincent J. LaPaglia Esq., Hoboken
High-Level Member of Chicago Gang Arrested on Federal Drug ChargesRead the Press Release
CHICAGO — A high-level member of the Four Corner Hustlers street gang has been arrested on federal drug charges for allegedly selling wholesale quantities of heroin on the West Side of Chicago.
RAYMOND BETTS, 52, of Riverdale, is charged with conspiracy to possess a controlled substance with the intent to distribute. A criminal complaint filed in federal court in Chicago accuses Betts of selling or directing sales of heroin on eight occasions from December 2018 to March 2019. Seven of the alleged sales occurred in the Austin neighborhood of Chicago, while one deal was allegedly conducted in south suburban Riverdale.
Two other alleged members of the gang are also charged in the conspiracy: ANGELA BELL, 48, of Chicago, and MAURICE WILLIAMS, 50, of Riverdale. All three defendants were arrested Wednesday. Bell will appear for a detention hearing on Friday at 1:30 p.m. before U.S. Magistrate Judge Sunil R. Harjani in Chicago. Judge Harjani scheduled detention hearings for Williams and Betts for Monday at 2:45 p.m.
The charges and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Thomas J. Dart, Cook County Sheriff; and Eddie Johnson, Superintendent of the Chicago Police Department. Assistant U.S. Attorneys Katie M. Durick and Kalia Coleman represent the government.
The multi-year investigation was conducted with the Organized Crime Drug Enforcement Task Force (OCDETF) and the High Intensity Drug Trafficking Area Task Force (HIDTA). The mission of the task forces, which are comprised of agents and officers from numerous federal, state and local law enforcement agencies, is to identify, disrupt, and dismantle the most serious drug trafficking organizations.
According to the complaint, Betts operates a drug trafficking organization comprised of members or associates of the Four Corner Hustlers. Betts is a high-ranking member of the gang and the only one to hold the title of “Prince,” according to the complaint. Betts is also the founder and leader of an enforcement or security faction of the Four Corner Hustlers known as the “Body Snatchers,” the complaint states.
The complaint describes eight transactions for a total of approximately 136 grams of heroin. The seven deals in Chicago allegedly occurred in the 5300 block of West Washington Boulevard, while the Riverdale transaction occurred in an alley near the 13800 block of South Edbrooke Avenue in the south suburb, according to the complaint. Unbeknownst to the defendants, the buyer was confidentially working on behalf of law enforcement, the complaint states.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy charge is punishable by up to 40 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Henry County man charged with coercion and/or enticement for allegedly attempting to persuade several Asian minors he met online to engage in sexual activityRead the Press Release
A Henry County man was charged in federal court with one count of coercion and/or enticement for allegedly attempting to persuade several Asian minors he met online to engage in sexual activity.
Thomas E. Oberhaus, 56, of Napoleon, is accused of engaging in this behavior between 2013 and 2016, according to the criminal information.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
An information is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Gulfport Man Pleads Guilty to Drug Conspiracy and Possession of a Firearm by a FelonRead the Press Release
Gulfport, Miss. – Anthony Derrick Hayes, 57, of Gulfport, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr. to conspiracy to distribute oxycodone and to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration.
On November 20, 2018, Hayes was stopped in a vehicle after agents learned that he was on his way to distribute oxycodone painkillers. Hayes refused to exit the vehicle and began fumbling with his waistband. Officers retrieved a pistol from his waistband. Hayes, who has multiple prior felony convictions, was transported to the Harrison County Adult Detention Center and began making a series of phone calls to other individuals to complete oxycodone transfer deals.
On January 25, 2019, Hayes was charged in a federal criminal indictment.
Hayes will be sentenced on August 22, 2019 by Judge Guirola, and faces a maximum penalty of 30 years in prison and a $1,250,000 fine.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.
Guatemalan citizen living in New Philadelphia previously convicted of creating fake identity documents indicted for making false claim of citizenship and illegally reentering the U.S.Read the Press Release
A Guatemalan man living in New Philadelphia was indicted for making a false claim of United States citizenship, as well as illegally reentering the country.
Julio Tzip-Yac, 40, aka Jean Carlos Mercado-Alvarez and Luis O. Hernandez, falsely represented himself to be a U.S. citizen on May 25, 2018. He was able to obtain an Ohio driver’s license while falsely using the identity of an individual in Puerto Rico, according to court documents.
Tzip-Yac was found to be in New Philadelphia on May 25, 2018, despite having been previously deported. Tzip-Yac was previously sentenced to more than three years in federal prison after being found guilty of one count of possession of a document making implement and four counts of transfer of identification documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Damoun Delaviz following an investigation by the Immigration and Customs Enforcement -- Homeland Security Investigations, with assistance from the U.S. Citizenship and Immigration Services, Ohio State Highway Patrol, Federal Bureau of Investigation and New Philadelphia Police Department.
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.
Goffstown Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Jonathan Felch, 37, of Goffstown, pleaded guilty in federal court to participating in a fentanyl drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing drug trafficking investigation that included court-authorized wiretaps, agents and task force officers with the Drug Enforcement Administration learned that Felch regularly obtained fentanyl from a source in Lawrence, Massachusetts and then sold the fentanyl in New Hampshire.
On April 6, 2018, investigators learned that Felch intended to travel from New Hampshire to Lawrence to purchase drugs. Agents conducted surveillance of Felch and observed him meet with another individual in Lawrence. Later that day, Felch returned to New Hampshire in a vehicle that was stopped in Manchester for a motor vehicle violation. Officers later located approximately 18 grams of fentanyl and a digital scale in the vehicle.
Felch is scheduled to be sentenced on September 12, 2019.
“Interstate fentanyl traffickers make a deadly drug available for sale in New Hampshire,” said U.S. Attorney Murray. “The results have been disastrous. It is imperative that we stop the flow of fentanyl into the Granite State by arresting and prosecuting those who engage in this dangerous activity .”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe, and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Four People Charged with Credit Card ‘Bust Out’ Scheme to Defraud BanksRead the Press Release
NEWARK, N.J. – Four people were arrested today in connection in a scheme to defraud banks by using stolen and altered identities to fraudulently obtain credit cards and then using those cards to make over $2.5 million in charges that were never repaid, U.S. Attorney Craig Carpenito announced.
Shahid Akhtar, 42, of Linden, New Jersey; Tassadiq Hussain, 70, of Sayreville, New Jersey; Asif Ali, 39, of Carteret, New Jersey; and Mohammad Mushtaq, 54, of Valley Stream, New York; are each charged by complaint with one count of conspiring to defraud financial institutions. The defendants are scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to documents filed in this case and statements made in court:
The defendants engaged in a scheme to use stolen and altered identities to obtain credit cards from financial institutions and then use those credit cards to make purchases that they had no intention to repay, leaving the financial institutions to bear the losses.
The defendants and their conspirators used the personally identifying information of actual people, including dates of birth, drivers’ license numbers, and Social Security numbers, to create “synthetic identities,” sometimes by pairing the name and Social Security number of actual person with a fictitious birthdate, and sometimes by pairing the person’s Social Security number with a fictitious name and birthdate. They often used the name and Social Security number of a minor and altered the birthdate to make the identity appear to be that of an adult.
The defendants and their conspirators then used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at financial institutions (the “fraud cards”). The fraud cards were maintained in good standing with the financial institutions long enough to establish the creditworthiness of the stolen and synthetic identities. The defendants and their conspirators then “busted out” the fraud cards by making large purchases and never repaying the debts.
The defendants and their conspirators also incorporated and registered in various states numerous purported companies that did little or no legitimate business (the “sham companies”). The sham companies typically reported mailing addresses that were not brick-and-mortar business locations but were in fact “virtual mailboxes” offered by a company that provides mail receiving and forwarding services, as well as virtual office space, for a fee. The defendants and their conspirators used these sham companies to make hundreds of thousands of dollars’ worth of charges to the fraud cards, which were then deposited in bank accounts opened in the sham companies’ names. The defendants and their conspirators then withdrew these funds in cash.
The defendants and their conspirators routinely used “drop addresses” in New Jersey, New York, and elsewhere as the purported mailing addresses for the fraud cards and the sham companies. These drop addresses were typically not residential locations, but rather mailboxes offered for lease for the receipt of mail by a commercial package delivery company. In most cases, the defendants and their conspirators rented these mailboxes using fraudulent identification documents created using stolen and altered identities. The drop addresses were then maintained for the purpose of receiving mail sent in connection with the fraud cards and the sham companies.
The charge of conspiring to defraud financial institutions carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s arrests.
The charges in the complaint are merely allegations, and the defendants are presumed to be innocent unless and until convicted.
The government is represented by First Assistant U.S. Attorney Rachael A. Honig.
Four Charged in Drug Trafficking ConspiracyRead the Press Release
BOSTON – Four individuals were arrested and charged today in federal court in Boston in a drug trafficking conspiracy.
On May 30, 2019, Jose Perez Felix, a/k/a “Eugenio Piedraita-Rivera,” a/k/a “Roberto Patricio Ramirez,” a/k/a “Grande,” 41, of Dorchester; Edward Chapman, 51, of Pittsfield; Anthony Tsina, 35, of Quincy; and Yonatan Lara, 34, of Boston, were each charged with one count of conspiracy to distribute and possession with intent to distribute heroin, fentanyl, cocaine and oxycodone. The four men appeared in federal court today and were each ordered detained pending a detention hearing.
According to the charging document, in 2018, federal and state law enforcement began investigating members of a drug trafficking organization in and around the Boston area. Their investigation revealed that Perez Felix distributed large quantities of narcotics, including heroin, fentanyl, and cocaine, from a base of operations in Boston. Over the course of the investigation, other members of Perez Felix’s drug cell were identified, including Lara. Furthermore, Chapman and Tsina were identified as significant drug traffickers supplied by Perez Felix.
On May 30, 2019, agents executed several search warrants, which resulted in the seizure of cell phones, materials commonly used to package drugs for street level sale, digital scales, and over 100 grams of suspected heroin and/or fentanyl.
The charge of conspiracy to distribute and possession with intent to distribute heroin, fentanyl, cocaine, and oxycodone provides for a sentence of no greater than 20 years in prison, a minimum of 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
Fort Wayne Resident Sentenced to 68 Months in PrisonRead the Press Release
FORT WAYNE – Tyshon Powell, 24years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to possessing with intent to distribute a controlled substance and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Powell was sentenced to 68 months in prison followed by 2 years of supervised release.
According to documents in this case, on March 28, 2018, Powell possessed with intent to distribute less than 50 kilograms of marijuana and did so while possessing a firearm in furtherance of his drug trafficking offense.
This case was investigated by the FBI’s Fort Wayne Safe Streets Gang Task Force with the assistance of the Fort Wayne Police Department, Allen County Sheriff’s Department and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorneys Anthony W. Geller and Stacey R. Speith.
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Former State Employee Sentenced to Prison for Role in Medicaid Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TOSHIREA JACKSON, 50, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for her role in a health care fraud scheme.
According to court documents and statements made in court, beginning in January 2012, Jackson and Juliet Jacob operated two businesses, Transitional Development And Training (TDAT), and It Takes A Promise (ITAP), both located at 360 Fairfield Avenue in Bridgeport, which provided social and psychotherapy services. The investigation revealed that Jackson and Jacob used ITAP and TDAT to bill Medicaid for psychotherapy services that were never provided. As part of their scheme, Jackson and Jacob used the Medicaid provider numbers of two licensed health care providers who had neither rendered nor supervised any of the psychotherapy services that Jackson and Jacob billed to Medicaid. Jackson, and the two licensed providers, were employees of the Connecticut Department of Mental Health and Addiction Services (DMHAS). The two providers did not authorize Jackson or Jacob to obtain provider numbers for them at TDAT or ITAP, and were not aware that TDAT or ITAP were billing Medicaid as if the providers had personally rendered the psychotherapy services.
The investigation further revealed that, in March 2012, Nikkita Chesney, who was employed by a health care provider that provided substance abuse treatment, including a detoxification program in Bridgeport, began to steal the personal identification information of Medicaid clients who were patients of her employer. The personal identifying information included the patients’ Medicaid identification number, Social Security Numbers and dates of birth. Jackson, Jacob, and Chesney then used the stolen identity information to bill Medicaid for psychotherapy services purportedly provided by TDAT and ITAP, when the Medicaid clients had never received any such services from TDAT or ITAP.
Jackson has admitted that the scheme involved stealing the identity of more than 150 Medicaid clients, and that she and her co-conspirators successfully billed Medicaid for approximately half of those clients. Jackson further admitted that she and her co-conspirators also billed Medicaid for services to other clients that were never provided to those clients.
Judge Bolden ordered Jackson to pay $2,496,618 in restitution.
On December 13, 2018, Jackson pleaded guilty to one count of health care fraud.
Jackson, who is released on a $25,000 bond, is required to report to prison on July 12, 2019.
On October 18, 2018, Jacob pleaded guilty to one count of health care fraud for her role in this scheme and a separate Medicaid fraud scheme. On October 23, 2018, Chesney pleaded guilty to one count of health care fraud and one count of aggravated identity theft. Both await sentencing.
Five other individuals have been charged and convicted of health care fraud offenses as a result of this and related investigations.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
This case is being jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Federal Bureau of Investigation, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Former Roseville Firearms Dealer Pleads Guilty to Using Peace Officers’ Identities to Purchase Firearms and to the Sale of a Firearm in Violation of State LawRead the Press Release
SACRAMENTO, Calif. — Joseph John Deaser IV, 49, of Arizona, pleaded guilty today to one count of aggravated identity theft and one count of an illegal sale of a firearm by a federally licensed dealer in violation of state law, U.S. Attorney McGregor W. Scott announced.
Under state law, California has an approved roster of firearms that may be sold to the public. A Federal Firearms Licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, that permits licensed dealers to sell “non-roster” firearms, or firearms that do not appear on the approved roster, to sworn peace officers. Peace officers who own non-roster firearms may sell them to the public in a private sale, as long as the sale is brokered by a Federal Firearms Licensee.
According to court documents, Deaser was a federally licensed firearm dealer who owned and operated Capital Gun Club, a members-only gun club in Roseville, California. Between December 2014 and April 2018, in order to circumvent California’s law, Deaser conducted straw purchases of new non‑roster firearms using the names and personally identifying information of peace officers that he had obtained through legitimate firearms transactions. By falsely reporting sales to peace officers, Deaser obtained new “non-roster” firearms registered to peace officers that he then sold to the public.
In order to complete many of the transactions, Deaser completed and signed federal and state firearm transaction forms that the purchaser was required to complete using an officer’s identity as the purchaser. Deaser also placed his finger print — almost always his middle finger — on the state firearm transaction forms in the box designated for the “Purchaser’s Right Thumb Print.” In all, Deaser used the identities of six law enforcement officers to obtain approximately 50 non-roster handguns that he subsequently sold to members of the public, including himself.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, and Firearms with assistance from the California Depart of Justice’s Bureau of Firearms. Assistant U.S. Attorneys Michael D. Anderson and Shelley D. Weger are prosecuting the case.
Deaser is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on August 22. Deaser faces a maximum statutory penalty of five years in prison and a $250,000 fine for the illegal sale of a firearm by a licensed dealer in violation of state law and a mandatory two-year prison term consecutive to any other sentence for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Owner of Chicago Medical Clinic Sentenced to More Than Six Years in Federal Prison for Selling Opioid Prescriptions to Patients Who Lacked Medical Need for the DrugsRead the Press Release
CHICAGO — The former owner of a Chicago medical clinic was sentenced today to more than six years in federal prison for selling opioid prescriptions to patients whom he knew lacked a legitimate medical need for the drugs.
MOHAMMED SHARIFF, who owned Midtown Medical Center in Chicago’s Uptown neighborhood, conspired with a physician to sell oxycodone, hydrocodone, and other medications to patients whom they knew lacked a medical reason for taking the drugs. At Shariff’s direction, the physician, DR. THEODORE GALVANI, wrote prescriptions for the powerful opioids without conducting an appropriate physical examination or performing any medical tests. Dr. Galvani often met with more than 70 patients per day, sometimes seeing them in groups of two or more at the same time. At Shariff’s direction, a “crew leader” organized groups of people to obtain opioid prescriptions from Dr. Galvani, often leading to long lines that stretched beyond the clinic’s door.
Shariff, 68, of Lincolnwood, pleaded guilty last year to one count of conspiracy to knowingly dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose. U.S. District Judge Harry D. Leinenweber imposed a 75-month sentence in federal court in Chicago.
Dr. Galvani, of Spring Grove, previously pleaded guilty to drug conspiracy charges. He is awaiting sentencing.
Shariff’s sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Tara Sullivan, Acting Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General.
“The defendant chose to make his living in a vitally important industry,” Assistant U.S. Attorney Peter M. Flanagan argued in the government’s sentencing memorandum. “Rather than devote himself to people in need of fundamental care, however, he showed an abject disregard of patients and perverted his companies into engines of unlawful profit.”
“This announcement sends a clear message to the medical professionals who exploit their power, prey on the vulnerable, and violate controlled substance laws: you will be investigated and held accountable to the fullest extent,” said DEA SAC McKnight. “It also highlights the significance of federal law enforcement and prosecutors working together.”
According to Shariff’s plea agreement, individuals paid $100 to $200 in cash to Shariff and Galvani in exchange for the improper prescriptions. For individuals insured by Medicare, Shariff and Dr. Galvani prescribed the opioids and then submitted or caused others to submit false claims to Medicare, seeking reimbursement for purported office visits with those individuals, the plea agreement states. From February 2012 to March 2013, Shariff and Dr. Galvani received a total of at least $584,188 through the improper prescription scheme. During the same period, the pair was responsible for prescribing more than two kilograms of oxycodone, more than 595,000 hydrocodone pills, and more than 190,000 alprazolam pills (commonly known as Xanax), to individuals whom they knew had no legitimate medical need for those drugs.
In addition to the improper prescriptions, Shariff attempted to carry out a separate fraud scheme involving a home health care company that he owned, Elgin-based Home Health Resource LLC. In a May 2016 meeting in Chicago, Shariff offered to pay a physician $500 each time the doctor certified a Medicare beneficiary as eligible for home health care and referred the patient to Shariff’s company. Unbeknownst to Shariff, the physician was cooperating with law enforcement, and their conversation was surreptitiously recorded. Shariff told the cooperating physician that Shariff instructed nurses at the company to “tell the patient you are homebound,” and that “when the doctor come, don’t say that you go out and drive and this and that. Don’t tell anybody you drive, don’t tell anybody you’re taking the bus, even going to the groceries. If anybody asks, ‘I stay home. I’m homebound.’”
Former Manager of North Kenner Post Office Sentenced to 30 Months for Stealing More Than $630,000 in Postal StampsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced today that RYAN S. CORTEZ, age 47, of Des Allemands, Louisiana, was sentenced today for Misappropriation of Postal Funds.
According to court records, special agents with the U.S. Postal Service, Office of Inspector General (“USPS-OIG”) were notified by PayPal and eBay regarding significant quantities of U.S. Postal stamps being sold by CORTEZ on eBay. A subsequent investigation by Postal OIG revealed that, as manager, CORTEZ had increased the North Kenner Post Office’s reserve stamp stock by more than $600,000. Subpoenaed records from CORTEZ'S Regions Bank account revealed substantial deposits, including more than $58,000 in a one-month period in the summer of 2018.
During their investigation, Postal OIG agents determined CORTEZ withdrew thousands of dollars on a regular basis at the Harrah’s Casino in New Orleans. Harrah’s records revealed CORTEZ lost over $667,000 since 2011 and lost over $220,000 in 2017. Postal records indicate CORTEZ earned an annual salary of $70,818.
On October 10, 2018, Postal OIG special agents executed a federal search warrant issued by a federal magistrate judge at CORTEZ’s residence in Des Allemands. Agents found evidence linking CORTEZ to the ordering of the stamps from the Stamp Fulfillment Center thus increasing the reserve stamp stock for the North Kenner Post Office. During the search of the Post Office, Postal OIG special agents advised CORTEZ of his Miranda rights and told him that they wanted to discuss financial issues with the Post Office. CORTEZ admitted to Postal agents that he had stolen stamps from the North Kenner Post Office and sold them on eBay. When asked to estimate the dollar amount of stamp stock that had been stolen, CORTEZ responded, “Hundreds of thousands.” CORTEZ claimed he began selling stamps on eBay in 2015. CORTEZ said he was addicted to gambling and the money obtained from the illegal sale of stamps was to support his gambling addiction. CORTEZ confirmed he manipulated stamp stock counts by using another supervisor’s password to access the computer system. As a result, existing internal controls failed to detect the theft of these stamps.
In total, Postal records reveal that CORTEZ stole over $630,000 in U.S. stamps and sold them on eBay. According to Postal authorities, CORTEZ’s illegal activities constitute one of the largest internal Postal thefts by a Postal Service employee in the history of the U.S. Postal Service.
United States District Court Judge Barry W. Ashe sentenced CORTEZ to 30 months imprisonment, followed by three (3) years of supervised release, and ordered CORTEZ to pay restitution in the amount of $856,801.41.
U.S. Attorney Peter G. Strasser praised the work of the U.S. Postal Service, Office of Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Former High-Ranking Member of Sinaloa Drug Cartel Sentenced to 15 Years in Prison for Trafficking Narcotics to ChicagoRead the Press Release
CHICAGO — A former high-ranking member of the Sinaloa drug cartel in Mexico was sentenced today to 15 years in prison for his role in trafficking large amounts of illegal drugs to the Chicago area.
VICENTE ZAMBADA-NIEBLA conspired with other Sinaloa members to import and distribute large quantities of illegal drugs into the United States. From approximately 1996 to 2008, Zambada-Niebla oversaw shipments of narcotics from Central and South America into Mexico and eventually into the U.S. The cartel covertly transported the drugs via private aircraft, submarines, container ships, fishing vessels, buses, tractor-trailers, automobiles, and other methods. Zambada-Niebla also oversaw the corresponding transfer of drug proceeds back to Mexico.
Zambada-Niebla, 44, has been in law enforcement custody since March 2009. He pleaded guilty in 2013 to a drug conspiracy charge and agreed to cooperate with the U.S. government in its efforts to dismantle the Sinaloa Cartel and one of its rivals, the Beltran-Leyva organization, and hold their leaders accountable in U.S. courts.
U.S. District Chief Judge Ruben Castillo imposed the 15-year sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Valuable assistance was provided by the Internal Revenue Service Criminal Investigation Division in Chicago, and the Chicago Police Department.
“Zambada-Niebla played a major role in flooding the streets of Chicago with dangerous narcotics,” said U.S. Attorney Lausch. “Not only has he been brought to justice for his actions, but his extensive cooperation led to charges against dozens of other high-level drug traffickers in courts throughout the United States.”
“The DEA law enforcement team and prosecutorial partnerships continue to thrive and this sentencing is just one result of those great partnerships,” said SAC McKnight. “Members of the Sinaloa Cartel’s leadership have been held accountable for their actions. DEA will continue to focus investigative efforts to arrest the remainder of the Sinaloa Cartel leaders who are operating in Mexico to face justice in the United States.”
Zambada-Niebla is one of more than 20 members of the Sinaloa and Beltran-Leyva cartels to be indicted in federal court in Chicago. The investigation has resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamines, and 78 kilograms of heroin.
Former Grove City Man Sentenced to 17½ Years in Prison for Producing Child PornographyRead the Press Release
PITTSBURGH, PA - A former resident of Grove City, Pennsylvania, has been sentenced in federal court to 17 years and 6 months in prison, followed by 20 years of supervised release, on his conviction of production of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Matthew Switzer, 33.
According to information presented to the court at the time of Switzer’s guilty plea, Switzer coerced a four-year-old female to engage in sexually explicit conduct on multiple occasions for the purpose of producing at least 13 visual depictions of such conduct. The photographs were later discovered by the victim’s mother and forensically retrieved from his Gmail account by members of the Pennsylvania State Police and the Federal Bureau of Investigation. Switzer faces numerous state charges in Mercer County, which allege, among other things, that he also sexually assaulted another minor female.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the prosecution of Switzer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Bank Teller Sentenced in White Plains Federal Court for Participating in Violent Bank Robbery in October 2013Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VIRGINIA BLANCO was sentenced yesterday to 10 years in prison for participating in the robbery of a Wells Fargo Bank branch in Yonkers, New York, in October 2013. BLANCO was previously found guilty on all counts of a three-count Indictment that charged her with conspiracy to commit bank robbery, bank robbery, and aiding and abetting the discharge of a firearm in furtherance of the robbery. The verdict came following a four-day jury trial in White Plains federal court before U.S. District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “Virginia Blanco brazenly used her inside knowledge to further an armed robbery at a Wells Fargo Bank branch in Yonkers. By providing the robbers with critical information about the Bank’s security, personnel, and procedures, she set the stage for the violent episode. Blanco’s lengthy sentence makes clear that enablers and facilitators of bank robberies – even if they’re not the ones storming the bank, pulling the trigger, or directly terrorizing the innocent bystanders – will face justice for their conduct.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
In or about October 2013, BLANCO was working as a teller at a Wells Fargo Bank branch located at 500 Odell Avenue in Yonkers, New York (the “Bank”). She conspired with co-defendant Giovanny Marte to rob the Bank and provided critical information to Marte that allowed him and his co-conspirators to carry out the robbery successfully. On October 29, 2013, at approximately 3:17 p.m., Marte and three co-conspirators arrived at the Bank. One co-conspirator remained in the car while Marte and two co-conspirators entered the Bank. Marte and another robber each brandished a firearm and the third robber brandished a wood saw. During the robbery, Marte fired two shots but did not hit anyone. He accessed the vault, filled a laundry bag with approximately $303,500 in cash, and fled the Bank with the other robbers. Following the robbery, BLANCO and Marte took a trip together to Aruba using proceeds from the robbery.
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Judge Seibel sentenced BLANCO to a mandatory minimum sentence of 10 years in prison for aiding and abetting the discharge of a firearm in furtherance of the robbery, in addition to one day of imprisonment for the bank robbery conspiracy and the bank robbery. The latter sentence will be served consecutively to the 10-year prison term. In addition, Judge Seibel imposed restitution in the amount of $303,500.
Mr. Berman praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises agents and detectives of the FBI, United States Probation, the City of Yonkers Police Department, the City of Peekskill Police Department, the City of Mount Vernon Police Department, the New York City Police Department, the Westchester County Police, the Greenburgh Police Department, New York State Police and the Westchester County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Sam Adelsberg, Jamie Bagliebter, Margery Feinzig, Douglas Zolkind, and James McMahon are in charge of the prosecution.
Florida Man Accused of Human Trafficking Enters Guilty PleaRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Court Terry F. Moorer accepted the guilty plea of Tee-Henry Wulu Currens, 22, on May 23, 2019, to the violation of 18 United States Code 2421-Transporting Any Individual in Interstate Commerce Intending to that Individual Engage in Prostitution.
In January 2019, Currens first met the female victim (FV) while she was working as a prostitute in Jacksonville, Florida, initially becoming her client. Soon after, Currens volunteered to work as his victim’s driver and provide her with security. The FV told investigators that Currens became abusive, controlling, and forced her to meet with clients, and Currens would subsequently keep all the money from the trafficking event. The FV stated that Currens would force her to have sex with clients and that he would physically beat her if she refused to be trafficked.
On or about March 1, 2019, Currens drove the FV from Panama City, Florida to the Mobile, Alabama area for the purpose of trafficking her during Mardi Gras celebrations.
On March 02, 2019, the Robertsdale Police Department received a 911 call from the FV, who had managed to get away from Currens during a stop at a local gas station. The FV reported that she had been kidnapped by Currens out of Florida and brought to Alabama to engage in prostitution. Upon their arrival, Robertsdale Police noted the FV was visually upset and had bruising on her head, face, and legs consistent with assault.
Currens made post Miranda statements to law enforcement where he admitted to the FV’s account of how the two had met. Currens also admitted that the two were from Florida and travelling to Mobile for the purpose of having the FV engage in prostitution. He stated they had argued while in Florida, where the FV had asked that he leave, but Currens refused.The Robertsdale Police Department, Department of Homeland Security, Mobile Field Office investigated this case. “Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “HSI is committed to working with our law enforcement partners to find and prosecute criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.” Assistant United States Attorney Christopher Baugh prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.
Five More Individuals Indicted by Federal Grand Jury for Suspected Felony Lane Gang-Type Criminal Activity in Baton Rouge and Across LouisianaRead the Press Release
United States Attorney Brandon J. Fremin announced today the recent unsealing of a federal grand jury indictment charging five defendants with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud. The indictment is the latest set of charges in a lengthy federal investigation that has spanned numerous jurisdictions across several states and has resulted in charges against ten (10) different individuals for participating in a fraudulent scheme targeting victims in the Middle District of Louisiana.
According to the indictment, which was filed under seal in December 2018 and recently unsealed by the court, the defendants allegedly engaged in an extensive criminal scheme to break into unattended vehicles, steal the victims’ licenses, checkbooks, and credit and debit cards, and then use the stolen items to conduct fraudulent financial transactions at the victims’ banks. The defendants charged in this indictment began targeting victims in Louisiana in August of 2016 and continued to engage in criminal conduct in Louisiana (among other states) through February of 2017. The latest indictment includes charges against the following individuals:
- Michael D. Gibbs, a/k/a “BG,” age 26, of Ft. Lauderdale, Florida, is charged with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud.
- Brandon J. Gassett, a/k/a “Boot Daddy” and “Twan,” age 28, of Ft. Lauderdale, Florida, is charged with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud.
- Raymond B. Mathews, a/k/a “Boot” and “Bo,” age 33, of Ft. Lauderdale, Florida, is charged with conspiracy to commit bank fraud and bank fraud.
- Geoffrey D. Green, a/k/a “Deep” and “D,” age 35, Lauderhill, Florida, is charged with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud.
- Frank Jackson, age 25, of Lauderdale Lakes, Florida, is charged with conspiracy to commit bank fraud and bank fraud.
Five additional individuals have already been convicted and sentenced to federal prison for their roles in this criminal scheme. Erin Brown, age 23, of Newport, Tennessee, Natasha Hammett, age 29, of Opa-Locka, Florida, and Tina Eggleston, age 48, originally from San Fernando, California, have each been convicted of conspiracy to commit bank fraud. Johnny Jones, age 32, of Fort Lauderhill, Florida, and Allen Clark, age 30, of Margate, Florida, have each been convicted of conspiracy to commit bank fraud and possession of unauthorized access devices.
U.S. Attorney Brandon J. Fremin stated, “Unfortunately, criminals these days know no borders. This indictment illustrates that criminals are willing to travel far and wide to defraud innocent victims. This indictment and prior related bills of information against a total of ten members of a group who were working together to victimize citizens here in our community sends a very clear message – we are not open for your type of business. We will continue to work with federal, state, and local law enforcement, throughout the country, to find organized criminals like these and bring them to justice in order to protect our citizens. I want to thank our prosecutors, and all of the numerous law enforcement agencies and officers around the country, who have worked tirelessly to bring these fraudsters to justice.”
Eric J. Rommal, FBI New Orleans Field Office Special Agent in Charge, stated, “The FBI New Orleans Field Office will vigorously investigate all forms of financial crimes regardless of the subjects' background, financial status or relation to the victims.”
This matter is being investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, Ascension Parish Sheriff’s Office, Walker Police Department, Lafayette Police Department, Covington Police Department, Oxford (Mississippi) Police Department, Florida Highway Patrol and Asheville (North Carolina) Police Department. The investigation has received substantial assistance from the 19th JDC District Attorney’s Office in East Baton Rouge, Louisiana, the Johnson County, Wyoming Prosecuting Attorney’s Office, and the Third Judicial Circuit of Florida State Attorney’s Office. This matter is being prosecuted by Assistant United States Attorneys Alan Stevens and Chris Dippel, who both serve as Deputy Criminal Chiefs, and former AUSA Cal Leipold.
NOTE: An indictment is an accusation by a grand jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Fayette County Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Fayette County woman who sold heroin and fentanyl to an informant and possessed heroin, fentanyl, and methamphetamine pled guilty to a federal drug charge, announced United States Attorney Mike Stuart. Jessica Lynn Hall, 29, of Fayetteville, entered a guilty plea to possession with intent to distribute 50 grams or more of methamphetamine and quantities of heroin and fentanyl. Stuart commended the investigative efforts of the Central West Virginia Drug Task Force (CWVDTF).
“Meth. Heroin. Fentanyl and guns. All powerful and deadly,” said United States Attorney Mike Stuart. “Great work by the Central West Virginia Drug Task Force in putting an end to Hall’s drug dealing.”
In January 2019, Hall sold heroin and fentanyl to an informant on three occasions at her Deepwater Mountain Road residence in Fayetteville. On January 15, 2019, members of the CWVDTF executed a search warrant at the residence and seized 446 grams of methamphetamine, 89.59 grams of heroin, 90.82 grams of fentanyl, and three handguns. Hall’s boyfriend, Jason Treadway, 38, was also charged with distribution of heroin and possession with intent to distribute methamphetamine, heroin, and fentanyl. His trial is scheduled for July 22, 2019. Hall faces 5 to 40 years in federal prison when she is sentenced on September 11, 2019.
Assistant United States Attorney Joshua C. Hanks is handling the prosecution. United States District Judge Irene C. Berger presided over the plea hearing.
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Fall River Woman Sentenced for Smuggling Drugs into MCI-Cedar JunctionRead the Press Release
BOSTON – The mother of an MCI-Cedar Junction inmate was sentenced today in federal court in Boston in connection with smuggling drugs into the facility.
Margaret Guillemette, 59, of Fall River was sentenced by U.S. District Court Judge Indira Talwani to time served (five days), two years of supervised release and 200 hours of community service. In March 2019, Guillemette pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam. In September 2018, she was charged along with Chad Connors, 42, and William Guillemette, 39, both inmates at Massachusetts Correctional Institute – Cedar Junction (MCI-CJ) in South Walpole, and Lisa Guillemette, 42, also of Fall River.
Chad Connors and William Guillemette were inmates housed at MCI-CJ’s Departmental Disciplinary Unit (DDU). It is alleged that Connors was involved in a romantic relationship with Christine Ramos, a nurse assigned to the DDU. At Connors’ request, Ramos agreed to smuggle contraband, including controlled substances, into MCI-CJ. In order to do this, Ramos opened two P.O. Boxes through a third party. Connors allegedly sent letters and money to Ramos at these P.O. Boxes and, at William Guillemette’s direction, his mother, Margaret, and his wife, Lisa, obtained and sent Suboxone and Alprazolam to the P.O. Boxes. Ramos subsequently smuggled the drugs into the DDU and delivered them to Connors. William Guillemette and, allegedly, Connors distributed the drugs to other inmates, who sent checks to Margaret and Lisa Guillemette as payment for the drugs. Suboxone and Alprazolam are Schedule III and Schedule IV controlled substances, respectively.
William Guillemette and Lisa Guillemette previously pleaded guilty and are awaiting sentencing. Ramos was sentenced in April 2019 to two years of probation after pleading guilty to one count of conspiracy to distribute Suboxone and Alprazolam. Connors has pleaded not guilty and his case is pending.
The charge of conspiracy to distribute Suboxone and Alprazolam provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000 and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Experienced Prosecutor Arrives in DurangoRead the Press Release
DURANGO – U.S. Attorney Jason Dunn today announced that experienced prosecutor R. Josh Player has joined the Durango Branch Office of the United States Attorney’s Office for the District of Colorado. Assistant United States Attorney (AUSA) Player comes to Durango after serving as a Deputy District Attorney in the Salt Lake County District Attorney’s Office. During that time, AUSA Player also served as a Special Tribal Prosecutor for the Ute Tribe on the Uintah-Ouray Reservation, Confederated Tribes of the Goshute Nation, and Ely Band of Shoshone for certain matters. This experience provides AUSA Player with an important background that will help him address issues that arise in the Durango Branch Office, which prosecutes criminal cases from the Ute Mountain Ute or the Southern Ute Indian Tribes. AUSA Player joins existing AUSA Jeff Graves, Paralegal Amy Connor and Contract Legal Assistant Loana Serrano in the Durango Office. The Durango Office is a branch office for the District of Colorado, which has another office in Grand Junction and headquarters in Denver.
Eight San Fernando Valley Residents Arrested in Check-Kiting Scheme that Allegedly Defrauded Banks out of nearly $1.5 MillionRead the Press Release
LOS ANGELES – Federal authorities this morning arrested eight people named in a federal grand jury indictment that alleges check-kiting schemes that used hundreds of altered Armenian passports to fraudulently open bank accounts and steal nearly $1.5 million from Bank of America and Wells Fargo. A ninth defendant in this case is currently being sought by authorities.
The investigation led by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations found that the defendants obtained genuine Armenian passports issued to other people, altered the passports to include the photos of the defendants, and used the fraudulent documents to obtain other identity documents and to open bank accounts at the victim banks.
The 36-count indictment unsealed today alleges that the defendants used the bank accounts, which were opened in the names that appeared on the altered passports, to write bad checks to other fraudulently obtained bank accounts. The defendants allegedly exploited bank rules that allowed them to transfer money from one account to another, and then to immediately withdraw funds at ATMs in Las Vegas casinos and other locations before the checks bounced.
The indictment alleges that the defendants used 331 fraudulently altered Armenian passports to steal, or attempt to steal, $1,556,336 from Bank of America. They actually obtained approximately $1.12 million.
Three of the defendants were also charged with perpetrating a similar fraud scheme against Wells Fargo that resulted in a loss of approximately $370,000.
The defendants arrested this morning are:
- Ara Malkhasyan, 48, of Winnetka;
- Smbat Khechumyan, 38, of North Hollywood;
- Sveta Khechumyan, 45, of Winnetka, who is Smbat’s sister and the wife of Malkhasyan;
- Harutyun Petrosyants, 30, of Van Nuys;
- Artur Harutyunyan, 34, of Encino;
- Khachatur Chobanyan, 38 of Van Nuys;
- Jivan Hakhnazaryan, 49, of Van Nuys; and
- Arman Grigoryan, 37, of North Hollywood.
The ninth defendant in this case – Artak Okhoyan, 29, of Burbank – has agreed through his attorney to surrender to federal authorities tomorrow.
The defendants arrested today are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
The indictment charges all of the defendants with conspiracy to commit bank fraud, a charge that carries a statutory maximum penalty of 30 years in federal prison. Additionally, all of the defendants are charged in at least one substantive count of bank fraud and aggravated identity theft.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
During this investigation, Homeland Security Investigations received substantial assistance from the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, and the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorneys Katherine A. Rykken of the Major Frauds Section, and Lucy B. Jennings and Kevin Butler of the General Crimes Section.
East Brookfield Man Indicted for Illegally Operating an Aircraft, Making False Statements and Attempted Witness TamperingRead the Press Release
BOSTON – A federal grand jury has indicted an East Brookfield man in connection with unlawfully operating an aircraft, making false statements to federal investigators, and attempting to tamper with a witness.
Antonio Santonastaso, 59, was indicted on one count of serving as an airman without an airman certificate, two counts of making false statements to federal agents and one count of attempted witness tampering. Santonastaso was arrested and charged by complaint earlier this month.
According to court documents, the Federal Aviation Administration (FAA) revoked Santonastaso’s license to pilot an aircraft in 2000, after he participated in the theft of a helicopter from Norwood Memorial Airport. Despite being aware of that revocation, Santonastaso operated a Robinson R-22 helicopter – taking off and landing from his backyard – more than 50 times between April 28, 2018 and Nov. 11, 2018. FAA inspectors reviewed the path Santonastaso used when taking off and landing from his backyard, and concluded that it was extremely hazardous.
When questioned by the FAA and federal agents, Santonastaso repeatedly made false statements regarding his eligibility to pilot the helicopter. Among other things, Santonastaso falsely claimed to have not learned that the FAA had revoked his license, and made false statements regarding his applications for a medical certificate, which is required in order to operate an aircraft.
The indictment further alleges that Santonastaso attempted to corruptly persuade an individual with the intent to hinder, delay, and prevent that individual from reporting to law enforcement Santonastaso’s illegal helicopter flights.
The charging statutes provide for a sentence of no greater than 20 years in prison, up to 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 and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation, Office of the Inspector General, made the announcement. Assistant U.S. Attorney Evan Panich of Lelling’s Office is 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.
D’Iberville Man Pleads Guilty to Gun ChargesRead the Press Release
Gulfport, Miss – Anh Viet Quach, 42, of D’Iberville, Mississippi, pled guilty yesterday before U.S. District Judge Louis Guirola Jr. to possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Acting Special Agent in Charge Luis M. Quesada with the Federal Bureau of Investigation.
In May, 2016, The Mississippi Bureau of Narcotics, working with the FBI Safe Streets Task Force, obtained information that an individual in D’Iberville was selling large quantities of high grade marijuana. Following surveillance, agents approached Quach and obtained a search warrant for his home. They found approximately 42 pounds of high grade marijuana, $7,200 in cash, a currency counter and a Berretta 9mm handgun. Quach admitted receiving 420 pounds of marijuana by mail from California, which he sold for $2800 per pound. Quach has prior felony gang related convictions from California.
Quach will be sentenced by Judge Guirola on August 22, 2019 at 1:30 p.m., and faces a maximum penalty of life in prison and a $250,000 fine.
The Mississippi Bureau of Narcotics and the Federal Bureau of Investigation investigated the case. The case is prosecuted by Assistant United States Attorney Annette Williams.
Drug Trafficker from Central Louisiana Convicted at Trial by JuryRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that a federal jury convicted George Earl White Jr., 36, of Alexandria, for his role in distributing illegal narcotics in Rapides Parish.
After a three-day trial, presided over by United States District Judge Dee D. Drell, White was found guilty of one count of conspiracy to possess with intent to distribute methamphetamine, heroin and cocaine. Testimony presented during his trial showed that White conspired with Derrick Anthony Felton, 40, of Alexandria, Reginald Felton Jr., 27, of Colfax, Louisiana, and Darian Dewayne Napoleon, 35, of Colfax, to sell methamphetamine, heroin and cocaine in the central Louisiana area. Law enforcement agents found that Derrick Felton would travel to California to obtain large quantities of methamphetamine and then ship the methamphetamine back to Louisiana.
During the course of the investigation, Louisiana State Police seized approximately 33 kilograms of methamphetamine, 1 kilogram of heroin, 1 kilogram of powdered cocaine and 4 pints of promethazine cough syrup. Law enforcement agents learned that Derrick Felton intended to distribute the drugs to White and the other members of the conspiracy in order for them to then sell to users.
“The evidence was strong in this case and pointed the jury to a guilty verdict,” said U.S. Attorney David C. Joseph. “This defendant and his co-conspirators were spreading dangerous drugs throughout Central Louisiana. I hope this conviction sends the clear message that we will not tolerate those who seek profit in the misery and death caused by the drug trade. My office will continue to work with our law enforcement partners to disrupt criminal organizations that threaten our communities. I want to thank the prosecutors in my office for a job well done and the FBI Safe Streets Task Force and Louisiana State police for their hard work investigating this case.”
White’s co-conspirators all pleaded guilty to the distribution charge. Darian Napoleon pleaded guilty on February 25, 2019, Reginald Felton pleaded guilty on February 26, 2019, and Derrick Felton pleaded guilty on March 8, 2019. The defendants face 10 years in prison, five years of supervised release and a $10 million fine. The court set White’s sentencing date for September 5, 2019. Derick Felton is scheduled to be sentenced on June 21, 2019. Reginald Felton and Darian Napoleon’s sentencing dates are not set.
The FBI Safe Streets Task Force and Louisiana State Police investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and Brandon B. Brown prosecuted the case.
Drug Conspiracy Leader Is Sentenced to over 10 YearsRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today David Flores, 35, of Dallas, Texas, to 121 months in prison and five years of supervised release on drug conspiracy charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, joins U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, Flores was part of a drug conspiracy that trafficked cocaine from Texas to North Carolina. In October 2017, DEA agents seized 23 kilograms of cocaine near Nashville, Tennessee, from a vehicle en route to North Carolina. According to court documents, the driver and passenger of the vehicle had been contracted by Flores to transport the cocaine from Texas to members of the drug conspiracy located in Lincolnton, N.C. Two other members of the conspiracy served as cocaine distributors, operating out of a residence in Maiden, N.C.
Flores, a Mexican national, pleaded guilty in 2018 to conspiracy to distribute and to possess with intent to distribute cocaine. He is currently in federal custody and will be transported to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. Flores’s co-conspirators were previously sentenced as follows:
- Saul Martinez-Ochoa – 10 years in prison and five years of supervised release.
- Alexander Garoutte – 80 months in prison and three years of supervised release.
- Ruben Silva-Malicote – 46 months in prison and two years of supervised release.
The DEA, Tennessee State Police, and the Lincoln County Sheriff’s Office were part of the investigation of the case. Assistant U.S. Attorney William Bozin was in charge of the prosecution.
This case is the result of the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Dominican National Indicted for Distributing FentanylRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston with distributing fentanyl.
Rosario Lara, 36, a Dominican national residing in Lawrence, was indicted on one count of distributing cocaine and more than 400 grams of fentanyl. Lara was arrested and charged by complaint on April 19, 2019.
According to the charging documents, Lara sold more than a half-kilogram of fentanyl to a confidential informant in Lawrence on Feb. 21, 2019. Lara was arrested that day on state charges.
Lara faces a mandatory minimum sentence of 10 years and up to 40 years in prison, a minimum of 10 years and up to a lifetime of supervised release and a fine of $10 million. Lara will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Middlesex District Attorney’s Office, Massachusetts State Police and Lawrence Police Department. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is 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.
Darknet Fentanyl Dealer Indicted in Nationwide Undercover Operation Targeting Darknet Vendors Who were Selling to Thousands of U.S. ResidentsRead the Press Release
Yesterday, the U.S. Attorney for the Northern District of Texas announced the indictment of a darknet drug dealer who has been indicted for leveraging Bitcoin’s apparent anonymity to sell fentanyl online. The charges against him are the result of the first nationwide undercover operation targeting darknet vendors that the Justice Department announced in June 2018.
Sean Shaughnessy, 51, of the Dallas Fort Worth, Texas area, was charged by federal grand jury with conspiracy to possess with intent to distribute controlled substances, distribution of a controlled substance, distribution of a controlled substance analogue and eight counts of money laundering.
According to the indictment, which was unsealed on May 24 following the defendant’s initial appearance, Mr. Shaughnessy allegedly sold fentanyl and fentanyl analogues over the dark web, an unindexed portion of the internet accessible only via specialized software that allows users to conduct transactions with relative anonymity. His buyers purchased the fentanyl and fentanyl analogues, which was shipped to their addresses, using cryptocurrencies like Bitcoin, the indictment alleges. One user, who allegedly purchased a fentanyl analogue from Mr. Shaughnessy, overdosed on the substance and died. Mr. Shaughnessy allegedly transferred his Bitcoin proceeds to other cryptocurrency wallets in exchange for regular fiat currency, which was shipped to his home in Dallas. Unbeknownst to Mr. Shaughnessy, he sent more than $120,000 bitcoin to wallet addresses controlled by federal agents. Yesterday, he was ordered to remain in federal custody. The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation into Sean Shaughnessy was part of Operation Dark Gold, a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the darknet. Special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York Field Office posed as a money launderer on darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country, including the investigation into Mr. Shaughnessy in the Northern District of Texas.
The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, coordinated with law enforcement and federal prosecutors from more than 50 U.S. Attorney’s Offices to investigate 65 targets identified by the undercover operation, which led to the arrest and impending prosecution of more than 30 darknet vendors.
One year after 70 search warrants were executed in May 2018, numerous opioid and narcotics distributors have been charged and convicted around the country. Those include:
- Brian Gutierrez-Villasenor, 27, of San Francisco, California, was sentenced recently to serve 120 months in prison for possessing with the intent to distribute methamphetamine and transporting funds to promote unlawful activity. Gutierrez-Villasenor was charged by the U.S. Attorney’s Office for the Northern District of California. According to his guilty plea, between 2014 and May of 2018, Gutierrez-Villasenor distributed cocaine and methamphetamine for a darknet vendor site called “JetSetLife.” In addition to the prison term, Gutierrez-Villasenor was ordered to pay a $40,000 fine and to serve an additional five-year term of supervised release to begin after his prison term. Gutierrez-Villasenor has been in custody since his arrest on May 17, 2018, and is serving his prison sentence.
- John Edward Monette, 50, of Sioux Falls, South Dakota, was sentenced to serve five years in prison, followed by three years of supervised release. Monette was convicted of conspiracy to distribute a controlled substance on Nov. 15, 2018. On April 25, 2018, a federal search warrant was executed on Monette’s residence as part of Operation Dark Gold. Law enforcement officers seized approximately 838 grams of MDMA, numerous ecstasy pills, approximately 69 grams of cocaine, drug packaging, scales, shipping materials, computers, cell phones and a rifle. Also seized were 3.3882104 bitcoin (approximate value $32,464.38) from a Mycelium wallet on Monette’s cell phone. Monette had been buying MDMA and other controlled substances from sellers in Europe and elsewhere via the dark web. He used Bitcoin to pay his suppliers, and received the drugs via mail. He also used the mail to deliver drugs to his customers.
- Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland. Farace was sentenced to serve 57 months in prison, followed by three years of supervised release, for drug distribution and money laundering conspiracies. The charges arose from a scheme to manufacture and distribute Alprazolam, or “Xanax,” through sales on the darknet in exchange for Bitcoin. Farace and his co-conspirator, Robert Swain, laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. Farace was ordered to forfeit a money judgment equal to $5,665,000 and 4,000 bitcoin (currently worth approximately $3.2 million). Farace was also ordered to forfeit assets seized by law enforcement during the execution of search warrants in 2018, at locations associated with the conspiracies, including approximately $1.5 million in cash, 1.100 bitcoin and approximately $2.5 million in computer equipment. Robert Swain previously pleaded guilty to the money laundering conspiracy and faces a maximum statutory sentence of 20 years in prison at his sentencing on June 18.
- Tyler Lee Ward, 35, of Moody, Alabama, and Henry Long Nguyen, 33, of Birmingham, Alabama, pleaded guilty in the Northern District of Alabama to three counts including conspiracy to manufacture, distribute, and possess with intent to distribute Alprazolam; maintaining a drug-involved premises; and conspiracy to commit money laundering. Ward was sentenced to serve 24 months in prison and Nguyen was sentenced to serve 30 months in prison. Both Ward and Nguyen were ordered to forfeit numerous assets, including more than $200,000 in cryptocurrency. Joseph William Davis 26, of Madison, Alabama, pleaded guilty to conspiracy to distribute Alprazolam and was sentenced to serve 126 months in prison.
- Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were both charged by the U.S. Attorney’s Office for the District of Vermont. They both pleaded guilty to conspiracy to distribute controlled substances. Sam Bent also pleaded guilty to three counts of money laundering and agreed to a forfeiture money judgment. As part of his plea agreement, Sam Bent admitted that he set up accounts on dark web marketplaces, established online identities, accepted Bitcoin in exchange for sales over the dark web, and mailed controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. Their sentencings are currently scheduled for July 2019.
- Kyle Lindemann, 31, of Birmingham, Michigan, was charged by the U.S. Attorney’s Office for the Eastern District of Michigan, and pleaded guilty to one count of possession with intent to distribute MDMA. As part of his plea, Lindemann admitted that he had managed a vendor account on the darknet marketplace known as “Dream Market,” on which he sold Alprazolam (Xanax), Adderall, Ecstasy (MDMA), and GHB. Lindemann also agreed to the forfeiture of 4.430550289998 Monero and 39.17488 MilliBitcoin that were seized during Operation Dark Gold, in May 2018.
The investigations are pending.
- Brian Gutierrez-Villasenor, 27, of San Francisco, California, was sentenced recently to serve 120 months in prison for possessing with the intent to distribute methamphetamine and transporting funds to promote unlawful activity. Gutierrez-Villasenor was charged by the U.S. Attorney’s Office for the Northern District of California. According to his guilty plea, between 2014 and May of 2018, Gutierrez-Villasenor distributed cocaine and methamphetamine for a darknet vendor site called “JetSetLife.” In addition to the prison term, Gutierrez-Villasenor was ordered to pay a $40,000 fine and to serve an additional five-year term of supervised release to begin after his prison term. Gutierrez-Villasenor has been in custody since his arrest on May 17, 2018, and is serving his prison sentence.