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Tuesday 28 May 2019
Former Employee of Scranton Counseling Center Sentenced to 15 Years’ Imprisonment for Producing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lawrence Stone, age 64, formerly of East Stroudsburg, Nanticoke, and Scranton, Pennsylvania, a former Master Clinician and Case Manager at Scranton Counseling Center, was sentenced on May 23, 2019, to 15 years’ imprisonment to be followed by five years on supervised release by U.S. District Court Judge Malachy E. Mannion for producing child pornography.
According to United States Attorney David J. Freed, Stone previously admitted to persuading two minor victims (ages 13 and 14) to engage in sexually explicit conduct for the purpose of producing images of the conduct. Stone committed the offense between 2010 and 2014, when he was employed at the Scranton Counseling Center.
Judge Mannion also ordered Stone to receive sex offender treatment and to comply with all provisions of the Sex Offender Registration and Notification Act.
Stone was indicted by a federal grand jury in November 2018, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Former City of Gary Network Administrator SentencedRead the Press Release
HAMMOND –Monique S. Bowling aka Monique Boyd, 47, of Merrillville, Indiana was sentenced by U.S. District Court Judge Philip P. Simon after being found guilty during a three day jury trial in January 2019. She was found guilty of one count of theft from local government receiving federal funds, announced U.S. Attorney Kirsch.
Bowling was sentenced to 63 months in prison followed by 2 years of supervised release.
U.S. Attorney Kirsch said, “Citizens expect and deserve officials to act in the best interest of the public, free from self-dealing and illegal self-enrichment. My office, together with our law enforcement partners, will continue to pursue matters involving public corruption.”
According to documents in this case, Bowling allegedly stole and obtained by fraud 1,517 Apple computer devices under the care, custody and control of the City of Gary.
This case is the result of the investigative efforts of the Federal Bureau of Investigation, Indiana State Police and Internal Revenue Service-Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Gary T. Bell and Toi D. Houston.
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Former Baltimore City Police Gun Trace Task Force Detective Sentenced to 12 Years in Federal Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced former Baltimore Police Detective Jemell Lamar Rayam, age 38, of Owings Mills, Maryland, to 12 years in federal prison, followed by three years of supervised release, for a racketeering conspiracy, including multiple robberies, and overtime fraud.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
“This case exposed crime and corruption being committed by those sworn to uphold the law and protect citizens,” said U.S. Attorney Robert K. Hur. “We will prosecute criminals whether they wear a badge or not.”
Rayam joined the Baltimore Police Department on July 12, 2005 and was later assigned to the Gun Trace Task Force (GTTF), a division of the Baltimore Police Department. According to his plea agreement, Rayam schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Rayam prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Rayam and his co-conspirators had stolen money, property, and narcotics from individuals.
According to his plea agreement, beginning in 2009, Rayam robbed civilians he detained and in some cases arrested and stole money and drugs from them. Rayam shared the proceeds with co-defendants Momodu Gondo, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself. Rayam also sold, through associates of his, drugs that Jenkins stole from detainees and arrestees, gave them to Rayam, and split the proceeds of those sales with his co-defendant.
Rayam participated in 15 robberies from June 2014 through October 2016. Rayam admitted that he was armed with his BPD service firearm during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offense, and that he authored false and fraudulent incident reports and other official documents in some cases in order to conceal his criminal conduct and otherwise obstruct justice.
Rayam also robbed detainees and arrestees with another police officer, who was not a member of the GTTF. Rayam and this other police officer would falsely represent that they had a search warrant, when they did not, in order to gain access to someone’s home and would then steal money and other things of value. In addition, Rayam had an associate who would inform him when a drug dealer had a significant amount of cash in his home and when the associate knew that the drug dealer would not be in the home. Rayam would then rob the drug dealer’s home with the assistance of other associates of his who were not police officers.
On October 5, 2016, Rayam and his co-conspirators robbed a drug dealer after he and Gondo placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home. Rayam and Glen Kyle Wells entered the victim’s apartment. Rayam was wearing a ski mask and was armed with a BPD-issued firearm. Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin. After the robbery, Rayam and his co-conspirators split the money they had stolen. Wells took the drugs and money, and Wells sold some of the drugs and gave Rayam a portion of the proceeds. Wells then gave Rayam a quantity of drugs that he had been unable to sell, which Rayam in turn sold through an associate.
On June 27, 2014, Rayam and his co-defendants executed a search and seizure warrant at a store that sold birdseed. No illegal contraband or firearms were found at the location. The storeowners, a married couple, had $20,000 in cash at the store that they intended to use to pay off tax liabilities they owed on two homes. Rayam later contacted two associates and agreed to rob the home of the storeowners. The associates presented themselves as police officers and stole $20,000, while Rayam remained in the car so he could intercept the police officers that responded to the incident by pretending to respond to the incident himself. Rayam split the proceeds with his associates.
Rayam admitted that on March 11, 2015, he, Gondo, former Sergeant Thomas Allers, and another person, who was not a police officer, searched a residence and discovered a large quantity of cash. Rayam took between $8,000 and $10,000 of the cash. Gondo and Allers also took some of the cash.
As detailed in his plea agreement, on July 8, 2016, Rayam and his co-defendants Hersl and Gondo detained two victims after a car stop. Rayam stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them. Jenkins told his co-conspirators to treat him like he was the U.S. Attorney. After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000 among themselves. Jenkins, Hersl, Rayam, and Gondo divided the $20,000. Rayam authored a false incident report to conceal the stolen money, which Jenkins approved.
According to the statement of facts agreed upon as part of Rayam’s plea, in the fall of 2016, Jenkins approached Rayam and asked him to sell drugs that Jenkins had stolen from detainees. Rayam agreed and sold the drugs Jenkins gave him and shared the proceeds with Jenkins. Jenkins maintained that Rayam owed him money for drugs that Jenkins had given him. After seizing a firearm and marijuana, Jenkins told Rayam to sell the firearm and marijuana in order to pay Jenkins the money that Jenkins believed Rayam owed him. Gondo subsequently arranged for an associate of his, who was a drug dealer, to buy the firearm and marijuana. Gondo’s associate gave Rayam money for the sale of the firearm and marijuana.
Rayam also admitted that he routinely submitted false and fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Rayam falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours. Rayam also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.
Lastly, Rayam admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct, coaching them to give false testimony to investigators from the Internal Investigations Division of the BPD, and turning off his body-worn cameras to avoid recording encounters with civilians.
A total of eight former members of the BPD Gun Trace Task Force were convicted for racketeering and related charges. Former Baltimore Police Sergeant Wayne Earl Jenkins, age 38, of Middle River, Maryland was sentenced to 25 years in federal prison for a racketeering conspiracy, racketeering, two counts of robbery, destruction, alteration, or falsification of records in a federal investigation, and four counts of deprivation of rights under color of law. Former Detectives Daniel Thomas Hersl, age 49, of Joppa, Maryland and Marcus Roosevelt Taylor, age 32, of Glen Burnie, Maryland, were convicted after a three-week trial and were each sentenced to 18 years in federal prison, for racketeering conspiracy and racketeering offenses, including overtime fraud, and robbery. Former Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland was sentenced to fifteen years in prison, for racketeering conspiracy and racketeering offenses, including nine robberies. Former Detective Momodu Gondo, age 36, of Owings Mills, was sentenced to 10 years in federal prison for a racketeering conspiracy and for conspiracy to distribute and possess with intent to distribute heroin. Former Detectives Evodio Hendrix, age 34, of Randallstown, Maryland, and Maurice Kilpatrick Ward, age 39, of Middle River, were each sentenced to seven years in federal prison, after pleading guilty to a racketeering conspiracy, including several robberies and overtime fraud.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Foreign National Sentenced to Eight Years in Prison for Involuntary Manslaughter on the High SeasRead the Press Release
Lewis Bennett, 42, a dual citizen of Australia and the United Kingdom, was sentenced today by U.S. District Judge Federico A. Moreno to 96 months in federal prison, after having previously pled guilty to involuntary manslaughter for killing his wife, Isabella Hellman, while on board a sailing vessel on the high seas.
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement.
According to the court docket, including an agreed upon factual proffer, Bennett is an experienced sailor who received a certification from the Royal Yachting Association in the United Kingdom as a Coastal Skipper. This training included instruction on emergency procedures such as man overboard protocols and night sailing safety. Bennett also had hands-on sailing experience on the open water for extended periods of time, including a three month voyage from St. Maarten to Australia. In contrast to Bennett, his wife had not been trained in emergency sailing procedures, did not have a sailing certification and had substantially less sailing experience.
In late April 2017, Bennett and Ms. Hellman set sail from St. Maarten on board the vessel “Surf Into Summer,” with the intention of sailing to the United States. On May 14, 2017, Bennett and Ms. Hellman departed Cuba on Bennett’s catamaran (“the vessel”), bound for Florida. At approximately 8 p.m. that evening, Bennett had Ms. Hellman take over control of the vessel. Bennett did not require Ms. Hellman to wear a life jacket, harness, or personal locator beacon (“PLB”) while at the helm during this night watch.
In the early morning hours of May 15, 2017, Bennett was awoken by a loud noise, while the vessel was on the high seas. He climbed to the exterior of the boat and observed that the sails and rigging were loose. The helm of the vessel was unmanned, and his wife was not there. Bennett could not recall whether he called out for his wife. He did not deploy flares to illuminate the area in order to look for Ms. Hellman or to signal his position in the open water for safety and/or recovery. Additionally, Bennett did not search for Ms. Hellman with either the catamaran or the attached dinghy (a small boat). Further, Bennett did not immediately activate any emergency equipment or utilize the satellite phone to signal and/or call for help to locate Ms. Hellman. Bennett ultimately abandoned the vessel and boarded the life raft. When Bennett abandoned the vessel, the catamaran and the dinghy attached to it were inoperable. The factual proffer also states that the United States has evidence in the form of expert testimony that the catamaran was intentionally scuttled.
Before Bennett abandoned the catamaran and boarded the life raft, Bennett loaded various items from the vessel onto the life raft, including a suitcase, two duffle bags, a backpack, water, unexpended parachute flares, a radio transmitter, buoys, food, and silver coins. It was not until Bennett boarded the life raft that he called for help and reported his wife missing, approximately 45 minutes after he was awakened.
The U.S. Coast Guard received an emergency alert from Bennett when he was approximately 26 nautical miles west of Cay Sal Bank, Bahamas, upon the high seas and in international waters. A Coast Guard helicopter ultimately rescued Bennett shortly after 4:30 a.m. and transported him to the Marathon Jet Center, in Marathon, Florida, which is located in the Southern District of Florida.
In the following days, Coast Guard ships, planes, and helicopters searched over approximately 4,980 square miles. On the evening of May 18, 2017, the Coast Guard suspended the search. To date, Ms. Hellman has not been found and has not contacted any of her family. Based on all evidence, Ms. Hellman is dead.
According to the stipulated factual proffer, Ms. Hellman’s death occurred as a result of Bennett’s knowledge of circumstances that existed that could have reasonably enabled him to foresee the threat to life to which his acts or failures to act might subject another, namely Ms. Hellman; and his gross negligence, amounting to wanton and reckless disregard for human life, in acting or failing to act as a result of that.
Bennett was arrested in connection with criminal charges related to these events in Miami on February 20, 2018.
After completing his prison sentence, Bennett will serve 3 years on supervised release. He was also ordered to pay $22,910 in restitution, the amount of money seized by the FBI from the defendant’s backpack upon his arrest, to Bennett and Ms. Hellman’s daughter.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and CGIS in this matter. This case was prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer and Special Assistant U.S. Attorney Emily A. Rose.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
First Sentence Imposed for Scam Involving Le Meridien Hotel ProjectRead the Press Release
HOUSTON – A 43-year-old California man has been ordered to federal prison following his conviction related to a scheme to embezzle $3.1 from the Beck Group in Houston, announced U.S. Attorney Ryan K. Patrick. Charles Williams, of Los Angeles, California, pleaded guilty Sept. 7, 2018.
Today, U.S. District Judge Vanessa Gilmore ordered him to prison for 72 months in prison to be immediately followed by three years of supervised release. Williams was also ordered to pay more than $3 million in restitution to The Beck Group.
Williams conspired with six people to commit wire fraud and money laundering. Those individuals - Moses Said, 42, of Houston; Lanamasha Hampton, 42, and Collette Devoe Hines, 49, both of Atlanta, Georgia; Janell Crosby Quant, 38, of Union City, Georgia; Heather Ashley Sowa, 31, of Denver, Colorado; and William Lewis Sutton, Jr., 48, of Los Angeles, California – also pleaded guilty for their roles in the scheme.
As a construction manager with the Beck Group, Said was in charge of the Le Meridien Hotel Project located in downtown Houston from 2016 to 2017.
Hampton, Quant, Hines, Sowa, Sutton, and Williams created shell companies which submitted false invoices to the Beck Group for payment for construction products that were not provided and construction services that were not performed.
As the construction manager for the Beck Group, Said approved and submitted the false invoices for payment, causing the Beck Group to issue payments to the shell companies. Upon receipt of the monies The Beck Group paid, the others paid some of the fraud proceeds to Williams and Said. They attempted to conceal and disguise the nature and origin of the proceeds by transferring the proceeds to other companies and individuals.
Williams was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
Final prison sentences wrap up cocaine trafficking investigationRead the Press Release
SAVANNAH, GA: Two sentencings in federal court represent the final defendants from a dismantled major cocaine trafficking conspiracy that spanned the country and transported significant amounts of drugs into the Savannah area.
Michael Dean Hubbard, 39, of Garden City, Ga., was sentenced to 115 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine and Marijuana, and Domminick Sentell Robbins, 39, of Guyton, Ga., was sentenced to 37 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. There is no parole in the federal system.
“The sentencing for these two criminals slams the door on a major conspiracy to peddle poison in our communities,” Christine said. “With our law enforcement partners, we are committed to tracking down and bringing to justice those who would pollute our neighborhoods with illegal drugs – and Operation Lazarus is a great example of our success.”
Operation Lazarus, a joint federal, state and local investigation, began in 2012 through 2017 in the Savannah area under the Organized Crime Drug Enforcement Task Forces (OCDETF) and initiated by the Chatham-Savannah Counter Narcotics Team (CNT) and the Drug Enforcement Administration (DEA). The investigation uncovered a major conspiracy that transported significant amounts of cocaine and other narcotics to Savannah, Atlanta and Florida via tractor-trailer from Texas and California.
During the operation, investigators seized more than 10 kilograms of powder and crack cocaine, 16 pounds of marijuana and large amounts of heroin, Ecstasy and prescription pills, along with 50 firearms and more than $700,000 in cash. A total of 54 defendants – 21 prosecuted in federal court, and 33 prosecuted in state court – have been sentenced after convictions or guilty pleas. A full list of defendants is included below.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented on the sentencings, “The mission of DEA is unwavering – we relentlessly pursue drug traffickers who distribute dangerous drugs in our communities. These drugs cause immeasurable damage, but DEA, its law enforcement partners and the U. S. Attorney’s Office are committed to protecting and serving the citizens of those communities. These defendants will spend well-deserved time in prison.”
“This case recognizes how important it is for local, state, and federal law enforcement agencies to unite in order to dismantle this organization,” said CNT Director Everett Ragan. “It is a joint effort and we must hold those responsible for the illegal acts accountable for their actions.”
In addition to DEA and CNT, agencies cooperating for Operation Lazarus included the Savannah Police Department, the Chatham County Sheriff’s Office, the Garden City Police Department and the United States Marshals Service. The OCDETF program is the premier U.S. Department of Justice program utilized to dismantle multi-jurisdictional drug trafficking organizations.
The case was prosecuted for the United States by Assistant U.S. Attorney E. Greg Gilluly Jr.
Defendants in Operation Lazarus include:
Federal defendants:
Christopher Shawn Crimley, 44, Port Wentworth, Ga.;
Nakiea Javon Hampton, 38, Savannah;
Sherone Kenya McBride, 41, Garden City, Ga.;
Shamone Moquis McBride, 39, Garden City, Ga.;
Traviel Lamar Perkins, 45, Savannah;
Kevin Lamar Speaks, 37, Savannah;
Michael Dean Hubbard, 39, Garden City, Ga.;
Cedric Jermaine Manior, 46, Rincon, Ga.;
Travis Terrell Godwin, 28, Garden City, Ga.;
Kendrick Carnell Doomes, 36, Ludowici, Ga.;
Steve Gordon, 40, Register, Ga.;
Ronnie Cope, 39, Guyton, Ga.;
Domminick Sentell Robbins, 39, Guyton, Ga.;
Anderson Holmes III, 51, Savannah;
Trevor Wendell Walker, 47, Savannah;
Eric Donnell Washington, 39, Savannah;
Jonathan Turner, 40, Savannah;
Latonya Maria Shannon, 32, Morrow, Ga.;
Omar Guevara, 39, Roswell, Ga.;
Jerrod Baugh, 41, Atlanta; and,
Jameel Lawton, 40, Savannah.
State court defendants:
Deandre Antonio Singleton, 38, Garden City, Ga.;
Donald Lee Oliver, 33, Garden City, Ga.;
Bobby Terrell Alexander, 50, Savannah;
David Renaldo Scarver, 35, Garden City, Ga.;
Christopher Delmont Jones, 45, Savannah;
Ellison Robert Burns Jr., 43, Garden City, Ga.;
Adam Gershon Palmer, 34, Savannah;
Ebony Jabriea Harley, 34, Garden City, Ga.;
Curtis Keith Knowles, 64, Savannah;
Robert Edward Singleton Jr., 52, Garden City, Ga.;
Willie James Grant, 27, Savannah;
Taurus Eugene Holloway, 43, Savannah;
Michael Bernard Jenks, 33, Savannah;
Ramone Williams, 50, Savannah;
Dennis Lee Morris 29, Garden City, Ga.;
Deatra Babaham 39, Garden City, Ga.;
Michael Andrea Wilson, 51, Hardeeville, S.C.;
Antonio Daywan Newton, 38, Savannah;
Edward Callahan, 48, Atlanta;
John Terrell Nelson, 41, Savannah;
Javonne Washington, 40, Savannah;
George Michael Muller, 41, Atlanta;
Steven Chad McCoy, 48, Savannah;
Richard Glen Valeiko, 43, Rincon, Ga.;
Sabrina Morell 42, Rincon, Ga.;
Bonnie Wayne Romine, 66, Garden City, Ga.;
George Bernard Lilly, 49, Rincon, Ga.;
Destiney Kawandra Clifton, 30, Lyons, Ga.;
Samuel Ashley Bartley, 43, Guyton, Ga.;
Melveric Jamelle Ford, 37, Garden City, Ga.;
Phillip Anthony Edwards, 34, Garden City, Ga.;
Edwin Gary Burroughs, 35, Garden City, Ga.; and,
Michael Anthony Green, 35, Savannah.
Federal and Local Law Enforcement Announce Cases as Part of Initiative to Hold Accountable Domestic Abusers with GunsRead the Press Release
COLUMBUS, Ohio – U.S. Attorney Benjamin C. Glassman announced today a new initiative in which federal and local prosecutors are working with law enforcement and domestic violence victim services agencies to hold accountable domestic abusers who illegally possess firearms.
As part of the initiative, U.S. Attorney Glassman, Columbus City Attorney Zach Klein, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Interim Columbus Police Chief Thomas Quinlan announced three cases indicted federally today. The cases charge three men with illegally possessing a firearm and/or ammunition after being convicted of domestic violence-related crimes.
A federal grand jury today charged Eldon G. Draper, 45, Stephon A. Moore, 30, and Brandon N. Zachariah, 26, all of Columbus, with possessing firearms and/or ammunition after being convicted of misdemeanor crimes of domestic violence and felony crimes in separate indictments returned here today.
According to court documents, on April 13, Draper possessed a Smith & Wesson .38 special firearm and five rounds of ammunition. He was previously convicted in Franklin County Court of Common Pleas of misdemeanor domestic violence and felonious assault, aggravated assault, arson, four offenses of aggravated arson, receipt of stolen property and theft.
Moore allegedly possessed a 9mm firearm and 16 rounds of ammunition on May 13. He was previously convicted in Franklin County Court of Common Pleas of misdemeanor domestic violence and felonious assault and attempted robbery.
According to Zachariah’s indictment and police reports, on March 20, he possessed a pistol and 22 rounds of ammunition. Zachariah was previously convicted in Franklin County Court of Common Pleas of felonious assault.
Possessing a firearm or ammunition as a convicted felon is a federal crime punishable by up to 10 years in prison. Individuals who have been convicted of misdemeanor domestic violence crimes or have an active domestic violence protection order are prohibited from possessing a firearm.
This initiative is part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
Moore’s case included investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
U.S. Attorney Glassman announced the domestic violence program as part of the Southern District of Ohio’s ongoing commitment to protecting people from intimate partner violence and strengthening the capacity of law enforcement and communities to respond to domestic violence.
The initiative is being implemented with the aim of enhancing collaborations among law enforcement agencies and domestic violence victim services providers, as well as identifying and prosecuting domestic violence abusers who possess guns.
U.S. Attorney Glassman commended the investigation of the three cases indicted today by ATF and the Columbus Division of Police, as well as Assistant United States Attorney Jonathan J.C. Grey and Special Assistant United States Attorney Melanie Tobias with City Attorney Klein’s office, who are prosecuting the cases. U.S. Attorney Glassman also commended the partnership of Lutheran Social Services CHOICES for Victims of Domestic Violence, the Center for Family Safety and Healing at Nationwide Children’s Hospital and Capital University’s Family Law Clinic.
Indictments merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
The National Domestic Violence Hotline is 1-800-799-7233.
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Federal Jury Convicts Pocatello Man of Producing Child PornographyRead the Press Release
POCATELLO – U.S. Attorney Bart M. Davis announced today that a federal jury sitting in Pocatello returned guilty verdicts against Lex Bennett Goodwin, 34, on five counts of sexual exploitation of a minor, transportation of child pornography, and possession of child pornography. Goodwin was also convicted of a sentencing enhancement for committing the crimes while he was already required to register as a sex offender. The trial began on May 20, 2019 and concluded Thursday evening when the jury returned their verdicts. The case was tried before Chief U.S. District Judge David C. Nye.
According to court records, the investigation began in September 2017 after Google reported that child pornography had been uploaded to a Google account. An agent with Homeland Security Investigations (HSI) obtained a federal search warrant for the Google account, which revealed that the account belonged to Goodwin. Within the account, the agent located several sexually explicit images of a sixteen-month-old child that Goodwin had produced. The agent obtained additional search warrants authorizing the search and seizure of Goodwin’s electronics, including his cellphone, and a second Google account belonging to Goodwin. Additional files of the sixteen-month-old child that Goodwin had produced were located on his cellphone and in the second Google account. The investigation further revealed that Goodwin had attempted to produce sexually explicit images of a six-year-old child and that he had possessed and transported numerous other files of child pornography.
Each of the five counts of sexual exploitation of a minor is punishable by 15 to 30 years in prison. The charge of transportation of child pornography is punishable by 5 to 20 years in prison. The charge of possession of child pornography is punishable by up to 20 years in prison. Each charge is also punishable by a fine of up to $250,000, and five years to a lifetime of supervised release. The sentencing enhancement carries a mandatory minimum of 10 years in prison to be served consecutively to the other counts.
Sentencing is set for August 12, 2019, before Judge Nye at the federal courthouse in Pocatello.
This case was investigated by Homeland Security Investigations in Idaho Falls and the Idaho Internet Crimes Against Children Task Force.
The 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Erie Woman Pleads Guilty in Cocaine ConspiracyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney Scott W. Brady announced today.
Geneva Gore, 49, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Gore conspired with four co-defendants to possess with intent to distribute and distribute less than 500 grams of cocaine.
Judge Cercone scheduled sentencing for November 4, 2019 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Gore on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement/Homeland Security Investigations, the Pennsylvania State Police, and the Coshocton County, Ohio Sheriff’s Office conducted the investigation that led to the prosecution of Gore.
Erie Woman Participated in Drug Activity of Local GangRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney Scott W. Brady announced today.
Chardonna Lasha Goudy, 23, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the FBI’s Erie Area Gang Law Enforcement (EAGLE), Safe Streets task force conducted an investigation into the drug dealing and violent crime activity of members of a local gang identifying itself as "1800". The court was advised that court authorized intercepts of telephone communications between members of the group and others revealed Goudy was using a cellular telephone in the commission of the drug conspiracy.
Judge Cercone scheduled sentencing for November 4, 2019 at 3 p.m. The law provides for a total sentence of four years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Goudy on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department conducted the investigation that led to the prosecution of Goudy.
Erie Gang Member Pleads Guilty to Distributing Crack, Illegal Gun PossessionRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal drug and firearm laws, United States Attorney Scott W. Brady announced today.
Ravone Robert Deberry, 26, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the FBI’s Erie Area Gang Law Enforcement (EAGLE), Safe Streets task force conducted an investigation into the drug dealing and violent crime activity of members of a local gang identifying itself as "1800". The court was advised that court authorized intercepts of telephone communications between members of the group and others revealed Deberry selling crack cocaine in the Erie area. Deberry pleaded guilty to conspiring with his co-defendants to possess with intent to distribute and distribute the crack cocaine. In a separate case, Deberry possessed a Smith & Wesson, model SW9F, 9mm handgun while being a convicted felon. According to information provided in court, Deberry used that handgun to shoot at rival gang members and the shooting incident was captured in the authorized intercepts of Deberry’s communications.
Judge Cercone scheduled sentencing for November 4, 2019 at 12:45 p.m. The law provides for a total sentence of 40 years years in prison, a fine of $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department conducted the investigation that led to the prosecution of Deberry.
Eastern District of Texas Federal Indictment Results in 13 Arrests in ColombiaRead the Press Release
SHERMAN, Texas - U.S. Attorney Joseph D. Brown announced today that 13 individuals have been arrested in the Republic of Colombia and will be extradited to the United States to face drug trafficking charges in the Eastern District of Texas.
During the week of May 20, 2019, a combined task force of U.S. and Colombian law enforcement authorities began arresting individuals in Colombia as a result of an international Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force operation.
With just a handful of special agents from the Dallas DEA field office working these international drug cases, more Colombian drug defendants were extradited to the Eastern District of Texas in 2018 than any other federal district in the United States.
According to the indictment, beginning in 2015, the defendants conspired to import thousands of kilograms of cocaine from Colombia and Mexico into the United States and Europe for distribution. On February 9, 2019, a federal grand jury in the Eastern District of Texas returned a 2-count indictment charging conspiracy to import cocaine and to manufacture and distribute cocaine intending and knowing that the cocaine will be unlawfully imported into the United States and manufacturing and distributing cocaine intending and knowing that the cocaine will be unlawfully imported into the United States. The Colombian nationals arrested and named in the indictment are:
KAREN MARLEDIS, 34, also known as La Negra;
FERNEY MONTES RESTREPO, 47, also known as Cucaracho;
HERNAN ANTONIO ALVAREZ CONDE, 28, also known as Ferney;
ORLEY JESUS GALLO DONADO, 36, also known as Orley;
OVIDIO ISAZA GOMEZ, 51, also known as Roque;
MARIA GEORGINA ARANGO MARIN, 46, also known as Gina;
PEDRO JOSE SIOSSI MANJARRES, 61, also known as Hitler;
HOMERO GARZON-BUSTOS, 50, also known as Anna Maria Caceres, also known as Maicol;
FELIX ALBERTO ACUNA CARMONA, 39;
JHON JAIRO AGUDELO GONZALEZ, 36;
JOSE ANEYDER ZAPPA MOLINA, 30, also known as Jose;
ROBERTO HERNANDEZ OSSA, 52, also known as Cambo; and
ALBA NERY RODRIGUEZ, 36, also known as Gaviota.
If convicted, they each face a minimum of 10 years in federal prison.
“Drug traffickers who send their drugs into the United States will not be able to avoid prosecution in the United States by hiding in Colombia or anywhere else,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas. “The leadership of Colombia has shown great courage in joining with us to fight this criminal enterprise. We are grateful for their cooperation and their recognition of the value to both countries in stopping the spread of illegal narcotics.”
“The Dallas North Texas Strike Force and our DEA office in Bogota, Colombia, remain committed to defending the United States against Transnational Criminal Organizations importing drugs into our communities,” said Special Agent in Charge Clyde E. Shelley, Jr., DEA Dallas Field Division. “We remain committed to following drug trafficking to its origins, in this case Colombia, and we are grateful for partners in the Eastern District of Texas and the Colombian government in this fight.”
This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case is being investigated by the U.S. Drug Enforcement Administration, HSI-Immigration & Customs Enforcement, Colombian National Police, and the Colombian Coast Guard. This case is being prosecuted by Assistant U.S. Attorneys from the Eastern District of Texas.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Dauphin County Woman Sentenced to Four Months’ Imprisonment for Bank EmbezzlementRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Maria Lyter, age 60, of Hummelstown, Pennsylvania, was sentenced on May 20, 2019, by Chief United States District Court Judge Christopher C. Conner to four months’ imprisonment to be followed by three years of supervised release for bank embezzlement.
According to United States Attorney David J. Freed, Lyter admitted to embezzling approximately $8,300 from the Hummelstown bank while employed at that bank in March 2016.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Carlo D. Marchioli and Joseph J. Terz prosecuted the case.
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Darknet Fentanyl Dealer Indicted for Selling Deadly Drug for BitcoinRead the Press Release
A darknet drug dealer has been indicted for leveraging bitcoin’s apparent anonymity to sell fentanyl online, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury charged Sean Shaughnessy, 51, 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. Today, he waived his detention hearing, and will remain in custody until trial.
“Darknet dealers often believe that by using bitcoin, they can evade authorities. This prosecution proves that’s not the case,” said U.S. Attorney Nealy Cox. “We will continue to pursue anyone peddling this deadly drug – on the streets or online.”
“Our significant domestic and international HSI resources and expertise, along with the considerable resources of our law enforcement partners, provided an unbeatable team to investigate this fentanyl smuggling operation so that we could effect this indictment,” said Katherine Greer, Acting Special Agent in Charge of Homeland Security Investigations’ Dallas field office. “This deadly drug —combined with the secrecy of bitcoin currency — represent a significant danger to an already-devastating national opioid epidemic.”
According to the indictment, which was unsealed on Friday 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 however, he sent more than $120,000 in bitcoin to wallet addresses controlled by federal agents.
An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.
If convicted, Mr. Shaughnessy faces up to 20 years in federal prison on each of his 11 charges.
Fentanyl and its analogues – among the most lethal opioids used in the United States, according to the Drug Enforcement Administration – are partly responsible for the sharp increase in opioid deaths across the nation. In just three years, the fentanyl death toll rose more than 5,000 percent, from around 5,500 in 2014 to almost 30,000 in 2017, according to the National Institute of Health. Just a few milligrams, equivalent to a few grains of table salt, may be deadly.
Homeland Security Investigations’ Dallas field office, the IRS - Criminal Investigation Division’s Los Angeles field office, and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case, with the assistance of the Justice Department’s Money Laundering and Asset Recovery Section.
Counterfeit Airbag Supplier Sentenced to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that David Nichols, 69, of Marysville, OH, who was convicted of conspiracy to traffic in counterfeit air bags, was sentenced to serve one year in prison and ordered to pay $75,846 in restitution by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo who handled the case, stated that from August 2015 through March 2016, Nichols and co-defendant Raymond Whelan imported and sold counterfeit automobile air bags from China. Since Nichols lived in China at the time, he was responsible for locating manufacturers that would produce the counterfeit air bags at the lowest cost.
Nichols imported approximately 364 counterfeit automobile air bags from China that were subsequently sold as a genuine air bags to unsuspecting customers over the internet.Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
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Corporate CEO Sentenced in Fraud CaseRead the Press Release
Darci Shillington Defrauded Hilco Technologies of $1.3 Million
GRAND RAPIDS, MICHIGAN — Darci Shillington appeared in U.S. District Court today for sentencing before Judge Janet T. Neff. The judge imposed a sentence of a total of 36 months in prison, to be followed by two years of supervised release and restitution of $399,386. The court allowed Shillington to remain on bond pending designation of her prison facility.
Shillington was the CEO of Hilco Technologies, a Grand Rapids plastics manufacturing company. As CEO, she was paid an annual salary of $175,000. Between June and September, 2017, she defrauded the company of $1,397,000 by submitting phony invoices for payment and pocketing the money. She used the stolen money to purchase and furnish a lavish home in Ada, Michigan. When purchasing the home, Shillington forged a letter, supposedly from Hilco’s Board of Directors, explaining how she legitimately possessed large cash reserves to make a down payment on the residence. The fraud left Hilco short of cash to pay its real suppliers, who eventually contacted other Hilco representatives to complain. They discovered the fraud in September 2017, and called the FBI.
U.S. Attorney Andrew Birge said "This crime involved a business, but it was really about hurting people. Darci Shillington earned a salary that most people would be thrilled to have; but she just had to have more. She took advantage of suppliers, jeopardized the company’s stability, and in turn put the jobs of the company employees at risk."
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Timothy VerHey.
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Chief Executive of Communications Company Sentenced to Prison for Providing Encryption Services and Devices to Criminal OrganizationsRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981, Benjamin J. Katz (619) 546-9604, Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – May 28, 2019
SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, was sentenced to nine years in prison today for leading a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale of encrypted communication devices and services. The Court also ordered Ramos to forfeit $80 million as proceeds of the crime, as well as specifically identified assets, including international bank accounts, real estate, cryptocurrency accounts, and gold coins.
This conviction marks the first time the United States targeted a company and convicted its chief executive for knowingly providing transnational criminal organizations with the encrypted infrastructure to conduct the international importation and distribution of narcotics.
“Vincent Ramos is going to prison because he provided violent, drug trafficking organizations with a high tech tool that enabled them to coordinate their crimes while staying in the shadows,” said U.S. Attorney Robert Brewer. “But Ramos’s system is down permanently, he has forfeited his wealth, and he is going to prison for nearly a decade. We will continue to investigate and prosecute these individuals, whether they are the ones transporting and selling drugs, or providing the tools to those who do.”
“I want to thank prosecutors Andrew Young, Ben Katz and Mark Pletcher, as well as the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, U.S. Marshals Service, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case,” Brewer said.
“Striking at the heart of organized crime has always been a priority for the FBI,” said Scott Brunner, FBI Special Agent in Charge of the San Diego Field Office. “This case demonstrates that no matter the dangerous criminal activity or the advanced technology used by these sophisticated criminal enterprises, the FBI will keep pace to infiltrate and dismantle the organizations that, in today’s world, operate domestically and internationally. As a result, the FBI joins forces with exceptional law enforcement partners both in the U.S. and abroad, to ensure every tentacle of the global enterprise is severed and cannot operate its illegal and dangerous crimes.”
Ramos advertised Phantom Secure’s products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure routinely deleted and destroyed evidence from devices that it knew had been seized by law enforcement. According to Court documents, Phantom Secure’s clients used email handles like the following to conduct criminal activities: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected].
According to court documents, one of Ramos’s customers, Owen Hanson (who was previously sentenced to 21 years in custody), used only six Phantom Secure devices to coordinate the transportation of more than a ton of cocaine from Mexico into the United States and on to Canada and Australia. The government conservatively estimates there were at least 7,000 Phantom Secure devices in use at the time Ramos was arrested--meaning that “the amount of drugs Phantom Secure aided and abetted in transporting by providing devices and services to criminals worldwide was too high calculate.”
Ramos’ customers used his products to devastating and sometimes deadly effect, and Ramos used this to market his encryption services to criminals across the world. According to court documents, in response to a March 5, 2014 news article that reported investigations of a gangland murder were stymied because the suspects used Phantom Secure devices to coordinate the killing, Ramos wrote, “this is the best verification on what we have been saying all along – proven and effective for now over nine years. It is the highest level of authority confirming our effectiveness. It can’t get better than that.”
The international operation to arrest Ramos and seize Phantom Secure’s infrastructure involved cooperation and efforts by law enforcement authorities in the United States, Australia, and Canada, with additional assistance from U.S. and foreign law enforcement in Panama, Hong Kong, and Thailand.
Ramos’s co-defendants - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz – remain international fugitives, charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world. All have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C. § 841 and 846.
In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; United States Marshals Service; U.S. Customs and Border Protection; the United States Department of Homeland Security; Seattle and Las Vegas field offices of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
DEFENDANT Case Number 18CR1404-WQH
Vincent Ramos (1) Richmond, British Columbia, Canada
aka “CEO”
aka “Business”
SUMMARY OF CHARGES
Racketeering Conspiracy (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)
Maximum Penalty: 20 years in prison
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
United States Marshals Service
Department of Justice, Office of International Affairs
Australian Federal Police
New South Wales Police (Australia)
New South Wales Crime Commission (Australia)
Australian Criminal Intelligence Commission
Royal Canadian Mounted Police
International Assistance Group, Department of Justice, Canada
Chester County Man Charged with Fleeing from Federal Park RangersRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Saul Rivkin, age 55, of Chester County, Pennsyvlania, was charged in a criminal information on May 23, 2019, with fleeing from National Park Service Rangers.
According to United States Attorney David J. Freed, Rivkin fled from Rangers in the Delaware Valley Water Gap Recreation Area on October 21, 2018, in an automobile.
Another individual involved in the incident, Jeffrey J. Steigelmann III, pleaded guilty on May 14, 2019 to fleeing from National Park Service Rangers. Steigelmann is awaiting sentencing.
The investigation was conducted by the National Park Service Rangers and other state and local law enforcement officials. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the charge is a two-year term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Buffalo Woman Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Anika Williams, 44, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to possess with intent to distribute 10 grams or more of 4-fluroisobutyryl fentanyl. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Michael Adler, who is handling the case, stated that between June and November 9, 2017, the defendant conspired with others, including co-defendant Jawayne Watkins, to distribute 4-fluoroisobutyryl fentanyl and heroin.
On two separate occasions in September 2017, Williams sold heroin containing 4-fluoroisobutyryl fentanyl to another individual who was arrested with the substances. The defendant sold drugs obtained from Watkins on a near-daily basis during this time period.
Charges remain pending against Jawayne Watkins who is accused of distributing heroin and 4 fluoroisobutyryl fentanyl causing the death of an individual identified as A.C. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Sentenced is scheduled for August 28, 2019, at 12:30 p.m. before Judge Arcara.
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Braddock Man Sentenced in Crack Cocaine Trafficking Conspiracy in Greenway ProjectsRead the Press Release
PITTSBURGH - A resident of Braddock, PA, has been sentenced in federal court to 18 months’ imprisonment on his conviction of conspiracy to distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Bryan Smith, age 24.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Bryan Smith and his co-conspirators distributed crack cocaine in and around the area of the Greenway Projects. Smith was the first of the 28 defendants charged in connection with this conspiracy to be sentenced.
Prior to imposing sentence, Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration along with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department for the investigation leading to the successful prosecution of Smith.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Aliquippa Felon Pleads Guilty to Possessing 50 Grams of a Heroin-Fentanyl Mixture and a Stolen Glock PistolRead the Press Release
PITTSBURGH – A Beaver County resident pleaded guilty in federal court to violations of the federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
Landon Alexander Gatta, 23, of Aliquippa, Pennsylvania, pleaded guilty today before Senior District Judge Joy Flowers Conti to the three-count Indictment charging Gatta with possession with intent to distribute 40 grams or more of a fentanyl-heroin mixture, possession of a firearm and ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime.
In connection with the guilty plea, the court was advised that on November 5, 2018, the Pennsylvania State Police searched Gatta’s residence in Aliquippa, Pennsylvania, pursuant to a search warrant in connection with an ongoing narcotics investigation. There, investigators recovered approximately 50 grams of a heroin-fentanyl mixture, a large sum of U.S. currency, and a loaded, stolen .40 caliber semi-automatic Glock pistol. Federal law prohibits Gatta, a felon previously convicted in the Court of Common Pleas of Allegheny County of the crime of possession with intent to distribute heroin, from possessing a firearm or ammunition.
Judge Conti scheduled sentencing for September 24, 2019, at 3:30 p.m. The law provides for a maximum total sentence of not less 10 years and up to life in prison, a fine of up to $5,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the plea in this case.
3 Members of Trip-And-Fall Scheme Convicted of Defrauding New York City-Area Businesses and Their Insurance Companies of More Than $31.7 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of BRYAN DUNCAN, ROBERT LOCUST, and RYAN RAINFORD. The jury convicted DUNCAN, LOCUST, and RAINFORD today for their participation in a conspiracy to commit mail and wire fraud following a three-week trial before U.S. District Judge Sidney H. Stein. The jury also convicted DUNCAN of a second count of conspiracy to commit mail and wire fraud, along with one count of mail fraud and one count of wire fraud. Co-conspirators Peter Kalkanis, a former chiropractor, and Kerry Gordon previously pled guilty before Judge Stein to conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. Kalkanis also pled guilty to aggravated identity theft.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Bryan Duncan, Robert Locust, and Ryan Rainford carried out a blatantly corrupt scheme, recruiting ‘patients,’ coaching them on how to stage trip-and-fall ‘accidents’ that were not accidents at all, and steering them to complicit lawyers, chiropractors, and doctors. They recruited indigent people, including from homeless shelters – people they thought would be most willing to undergo unneeded surgeries for the minimal cut of the proceeds the defendants would share. Duncan, Locust, and Rainford were tripped up by the justice system and have met their downfall.”
According to the allegations contained in the Indictment and Superseding Indictment, and the evidence presented in Court during the trial:
Between in or about 2013 through 2018, DUNCAN, LOCUST, and RAINFORD, the defendants, engaged in a widespread fraud scheme through which the defendants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents. Fraud scheme participants, including the defendants, recruited hundreds of individuals to stage trip-and-fall accidents at particular locations throughout New York City and to claim that they injured themselves as a result of their accidents. Common accident sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.” The defendants instructed the recruited patients to claim that they sustained injuries to particular areas of their bodies, including the knees, shoulders, and/or back – body parts that, if injured, would reap high recoveries in personal injury lawsuits.
After the staged trip-and-fall accidents, recruited patients were referred to specific attorneys who would file lawsuits against the owners of the accident sites and/or insurance companies of the owners of the accident sites (the “Victims”). The lawsuits did not disclose that the recruited patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of at least $31,791,000.
The recruited patients were also instructed to receive ongoing medical treatment from certain chiropractors and doctors. The fraud scheme participants advised the recruited patients that if they intended to continue with their lawsuits, they were required to undergo surgery to increase the value of their fraudulent lawsuits. The medical procedures included discectomies, spinal fusions, non-surgical epidural injections, and knee and shoulder surgeries. As an incentive to getting surgery, the recruited patients were offered a payment after they completed surgery as well as a percentage of any settlement payment from their lawsuit. Patients generally had two surgeries and received between $1,000 and $1,500 after each surgery.
The defendants recruited low-income individuals as patients – individuals desperate enough to undergo surgeries in exchange for these small post-surgery payments. In some instances, the defendants even recruited patients from homeless shelters in New York City. Over the course of the trial, more than 20 witnesses testified, including 11 patients who admitted to staging trip-and-fall accidents at the direction of DUNCAN, LOCUST, RAINFORD, or other co-conspirators.
DUNCAN was one of the organizers and leaders of the scheme. DUNCAN recruited patients into the scheme, organized the recruited patients’ legal and medical appointments, and assisted in procuring the funding for the recruited patients’ medical treatment and lawsuits. DUNCAN, and his partner Kerry Gordon, made over $1 million in profit from the fraud scheme.
LOCUST and RAINFORD helped recruit patients into the fraud scheme, transported patients to medical and legal appointments, identified potential accident sites, made payments to recruited patients, and coached recruited patients on faking their injuries.
Peter Kalkanis was another organizer and leader of the scheme. Kalkanis paid his co-defendants to recruit patients into the scheme and transport the patients to medical and attorney appointments.
DUNCAN was found guilty of two counts of conspiracy to commit mail and wire fraud, one count of mail fraud, and one count of wire fraud, each of which carries a maximum term of 20 years in prison. LOCUST and RAINFORD were each found guilty of one count of conspiracy to commit mail and wire fraud, which carries a maximum term of 20 years in prison.
The jury failed to reach a verdict as to DUNCAN, LOCUST, and RAINFORD on one count of mail fraud and one count of wire fraud.
Kalkanis pled guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and one count of wire fraud, each of which carries a maximum term of 20 years in prison. Kalkanis also pled guilty to aggravated identity theft, which carries a mandatory term of imprisonment of two years.
Gordon pled guilty to two counts of conspiracy to commit mail and wire fraud, two counts of mail fraud, and two counts of wire fraud, each of which carries a maximum term of 20 years in prison.
The maximum potential sentences and minimum sentence in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
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Mr. Berman praised the outstanding investigative work of the New York Field Office of the Federal Bureau of Investigation and the New York City Police Department. Mr. Berman also thanked the National Insurance Crime Bureau for their assistance in the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicholas Folly, Alexandra Rothman, and Nicholas Chiuchiolo are in charge of the prosecution.
Monday 27 May 2019
Statement by Attorney General William P. Barr on Memorial DayRead the Press Release
"Today we remember that our freedom was bought at a price," Attorney General William P. Barr said. "Over the course of our history, countless Americans have willingly laid down their lives so that the people of this great nation could continue to live in peace, prosperity, and liberty. We owe them a debt of gratitude that we can never fully repay. Today, I join with all Americans in pausing to remember them, honoring their sacrifice, and resolving to preserve the precious freedom and order that these heroes so selflessly won for each of us."
Sunday 26 May 2019
Alton Woman Indicted for Cashing Deceased Mother's Social Security ChecksRead the Press Release
A federal grand jury for the Southern District of Illinois returned an indictment charging Mia Lynn Cousett, 32, of Alton, Illinois, with twelve counts of theft of government funds and one count of aggravated identity theft, announced Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois. The indictment alleges that the funds stolen were social security checks payable to Cousett’s mother, who died in April 2017.
According to the indictment, for twelve months after her mother passed away, Cousett continued to cash her mother’s social security checks and then used those funds for her own expenses. The total of the social security checks allegedly stolen by Cousett is $15,601. The indictment also charges that Cousett used her dead mother’s driver’s license number to conceal and perpetuate her thefts.
Each of the theft of government funds charges carries a maximum sentence of ten years in prison, a fine of up to $250,000, and restitution. The aggravated identity theft charge carries a mandatory sentence of two years of imprisonment. The arraignment for Cousett will be conducted on June 5, 2019, at 10:00 a.m. at the Federal Courthouse in East St. Louis, Illinois.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by agents from the Social Security Administration, Office of the Inspector General, Chicago Field Division, the United States Postal Inspection Service, Chicago Division, St. Louis Field Office, and the Alton Police Department. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Saturday 25 May 2019
South Florida Construction Company Executives Sentenced Friday for Defrauding a Low Income Housing Development ProgramRead the Press Release
Following a six-day trial before U.S. District Judge Ursula Ungaro, a Miami jury convicted Javier Estepa, 48, of Davie, and Diego Alejandro Estepa Vasquez, 37, of Boca Raton, of conspiracy to commit wire fraud, wire fraud, and false statements to a federal agency. Estepa and Vasquez were the president and vice-president, respectively, of Aaron Construction Group, Inc. (“Aaron Construction”).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Rafiq Ahmad, Special Agent in Charge, U.S. Department of Labor, Office of the Inspector General (DOL-OIG), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), Mary T. Cagle, Inspector General, Miami-Dade County, Office of the Inspector General (OIG), made the announcement.
On May 24, 2019, Judge Ungaro sentenced Estepa to 51 months in prison to be followed by three years of supervised release; and sentenced Vasquez to 41 months in prison to be followed by three years of supervised release.
The evidence at trial established that, between June 2014 and December 2016, the defendants engaged in a scheme to unlawfully enrich themselves by securing Miami-Dade Public Housing and Community Development (PHCD) bid awards and causing payments on those contracts by making materially false and fraudulent representations, and by the concealment of material facts concerning, among other things, the utilization of subcontractors, the number of workers employed on the construction projects, the hours worked, and the status of those workers as employees of Aaron Construction.
Estepa and Vasquez submitted bids to PHCD, on behalf of Aaron Construction, for specific renovation and repair of low income housing in various locations throughout Miami-Dade County. In the bids, Estepa and Vasquez falsely and fraudulently represented that (1) no subcontractors would be utilized in connection with the contract, (2) that each worker would be paid for each hour worked, including for overtime, according to the Davis Bacon prevailing wage rates, and (3) that Aaron Construction would obtain workers’ compensation insurance, in accordance with state laws. However, immediately after being awarded the contracts, Aaron Construction entered into agreements with subcontractors which set a fixed payment at very low amounts for their work, regardless of the number of hours worked. In addition, Aaron Construction required subcontractors to provide the information of two or three subcontractor employees so that they could be placed on Aaron Construction’s certified payroll to appear as if they were Aaron Construction employees. The evidence at trial established that Aaron Construction failed to report accurately the hour employees worked on the job sites or the specific categories of work performed.
In order to obtain payment from PHCD, Estepa and Vasquez submitted Periodic or Final Estimate for Payment packets to PHCD containing false and fraudulent certified payroll records that listed fewer workers than were actually employed on the project and falsified the number of hours worked. In addition, the evidence at trial established that the workers were not paid the appropriate wages under the Davis Bacon Act, nor were the workers paid overtime. Estepa and Vasquez falsely and fraudulently stated that they had no subcontractors working on the project, falsely characterizing the workers as employees of Aaron Construction, when in fact they were subcontractors and subcontractor employees. In addition, Estepa and Vasquez submitted with the Periodic or Final Estimate for Payment packets sworn statements of compliance that falsely and fraudulently certified that the information submitted was true and correct. Due to these false and fraudulent submissions, PHCD transferred over $3.9 million dollars in funds to bank accounts controlled by Estepa and Vasquez.
U.S. Attorney Fajardo Orshan commended the investigative efforts of DOL-OIG, HUD-OIG, and Miami-Dade County, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein and John Gonsoulin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Friday 24 May 2019
Youngstown Doctor Sentenced for Failing to Pay TaxesRead the Press Release
PITTSBURGH, PA A resident of Wexford, Pennsylvania, has been sentenced in federal court to five years’ probation on his conviction for willful failure to pay over taxes, United States Attorney Scott W. Brady announced today.
United States District Judge Joy Flowers Conti imposed the sentence yesterday on William J. Houser, Jr., 59. The court ordered that the first 24 weekends, and one week each year, of the five-year term of probation be served in a community confinement center. The court also sentenced Houser to pay $1,128,660 in restitution to the Internal Revenue Service.
According to information presented to the court, Houser, a licensed medical doctor and practitioner in Youngstown, Ohio, was required to withhold monies from the paychecks of his employees to cover their individual income, Social Security, and Medicare tax obligations, referred to as trust fund monies, and to remit the trust fund monies to the Internal Revenue Service (IRS) on a quarterly basis. He was also required to pay over to the IRS matching contributions for Social Security and Medicare, commonly known as employment taxes. Houser failed to pay over both employment and trust fund taxes during the period September 2009 through December 2014. Houser also failed to file personal tax returns and pay income taxes for the years 2010 through 2014. Failure to pay the required taxes resulted in a total tax loss to the IRS of more than $899,269.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Internal Revenue Service conducted the investigation that led to the prosecution of Houser.
Wife of Former Mississippi Representative Sentenced for Paying Kickbacks to Former Corrections CommissionerRead the Press Release
Jackson, Miss. – Teresa Malone, 58, of Carthage, was sentenced today by U.S. District Judge Henry T. Wingate to 41 months in prison, followed by three years of supervised release, for paying kickbacks to former Mississippi Department of Corrections (MDOC) Commissioner Christopher Epps, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation. Malone was also ordered to pay $225,000 in restitution.
"Teresa Malone chose money over morals, as her criminal actions reflected selfishness, greed, and a lust for power, all the while harming our state and every Mississippian. Public corruption is corrosive to our society and our very form of government. As such, this office will continue making prosecutions of public corruption a top priority. I want to thank our special agents, law enforcement partners, and prosecutors for bringing these defendants to justice," said U.S. Attorney Hurst.
Malone pled guilty before Judge Wingate in October, 2017, to paying kickbacks to Epps in exchange for receiving a consulting agreement involving the MDOC and its operations. During her guilty plea, Malone admitted to receiving $225,000.00 from a consulting agreement with an out of state contractor arranged by former MDOC Commissioner Epps. Malone received $5,000.00 a month out of which she paid Epps varying amounts from $1,000.00 to $1,750.00 per month. The scheme lasted from October of 2010 through July of 2014.
At today’s sentencing hearing, Judge Wingate stated: "This whole matter has rocked the state and the persons in charge of rehabilitating others have become villains of the same system. Mrs. Malone received $225,000 for little or no work product and this is an extreme offense and there is a need for deterrence."
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by First Assistant United States Attorney Darren LaMarca, Deputy Chief of the Criminal Division Patrick A. Lemon, and Financial Analyst Kim Mitchell.
Westminster Man Sentenced to 30 Years in Federal Prison for Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Eric Wayne Grinder, age 36, of Westminster, Maryland, to 30 years in prison, followed by lifetime supervised release for five counts of production of child pornography, one count of attempted production of child pornography, two counts of possession of child pornography, and witness tampering. A federal jury convicted Grinder on those charges on February 25, 2019. Judge Blake also ordered that, upon his release from prison, Grinder must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.
According to the evidence presented at his three-day trial, from June 2013 through August 2016, Grinder sexually abused a minor female when the girl was between seven and nine years old, and produced images of himself and the minor engaged in sexually explicit conduct. Further, Grinder used his laptop computer and cellular phone to store and obtain images documenting the sexual exploitation of prepubescent minors, including the victim.
The evidence also proved that Grinder wrote a letter to an individual in July 2017, in which he asked that person to manipulate the victim into saying that she took the produced images of the abuse, not Grinder. Further, Grinder repeatedly attempted to contact and manipulate the victim’s mother.
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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul Riley and Paul Budlow, who prosecuted the case.
Webster Parish nonprofit director indicted for stealing more than $1 million from feeding programRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Myrna Thomas Quarles, 58, of Cotton Valley, Louisiana, was indicted by a federal grand jury for taking more than $1 million from a federal feeding program meant for low-income children.
Quarles was charged with five counts of theft of government property, five counts of forged securities of the states and private entities, and 27 counts of money laundering.
According to the indictment, Quarles was the director of the Greater Horizons Developmental Services, a nonprofit headquartered in Webster Parish. Greater Horizons received reimbursements from the U.S. Department of Agriculture’s Summer Feeding Service Program (SFSP), which was administered through the state of Louisiana. From 2014 through 2015, Greater Horizons submitted more than $1 million in reimbursement claims that greatly inflated the number of eligible meals provided. Once Greater Horizons received the money, Quarles wrote checks that were purportedly payable to vendors and other third parties, but then deposited that money into a personal financial account.
If convicted, Quarles faces a maximum term of imprisonment of 10 years for each count of theft and forgery, and 20 years in prison for each count of money laundering. She also faces up to five years of supervised release, a $500,000 fine and restitution. The government is also seeking to seize real estate and equipment purchased with the SFSP funds.
The FBI, U.S. Department of Agriculture, Office of Inspector General, and State of Louisiana, Office of State Inspector General, conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan and First Assistant U.S. Attorney Alexander Van Hook are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
United States Files False Claims Act Complaint Against Home Health Agency and Two of Its OwnersRead the Press Release
The United States has filed a complaint in intervention against Doctor’s Choice Home Care Inc (Doctor’s Choice), Timothy Beach, and Stuart Christensen alleging False Claims Act violations arising from the alleged payment of kickbacks in the form of sham medical director agreements and payments to the spouses of referring physicians, the Department of Justice today announced. Doctor’s Choice is a home health agency based in Sarasota, Florida. Timothy Beach and Stuart Christensen are partial owners of Doctor’s Choice.
“Healthcare providers must make recommendations about their patients’ health without respect to their own financial interests,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to do our part to protect federal health care program beneficiaries and the American taxpayers from the corrupting influence of kickbacks designed to undermine the impartiality and integrity of physician decision making.”
“Kickbacks and other improper remuneration that interferes with the medical decision-making process undermines the integrity of our healthcare system,” said U.S. Attorney Maria Chapa Lopez. “My Office will continue to aggressively pursue those who violate these laws and compromise our system of care.”
The lawsuit alleges that Doctor’s Choice, with the knowledge of Beach and Christensen, paid kickbacks in the form of sham medical directorships to three physicians to refer patients to Doctor’s Choice. All three physicians allegedly did little, if any, of the work for which Doctor’s Choice paid them as medical directors. Sham medical director agreements to induce patient referrals violate the Anti-Kickback Statute and the Stark Law. Doctor’s Choice also allegedly paid some employees in a manner that accounted for the volume of referrals by their physician spouses, in violation of the Stark Law.
The Anti-Kickback Statute prohibits anyone from offering or paying remuneration in order to induce or reward referrals for services paid for under federal healthcare programs. The Stark Law forbids certain medical providers, including home health agencies, from submitting claims to Medicare for services provided to patients who were referred by a physician with whom the provider has a prohibited financial relationship, unless that relationship falls within an applicable exception.
The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating the case, as it has done here. A defendant who violates the act is subject to three times the government’s losses, plus applicable penalties.
This case is being handled by the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the Office of Inspector General of the Department of Health and Human Services.
The claims made in the complaint are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Herbold v. Doctor’s Choice Home Care Inc., et al., Case No. 8:15-cv-01044 (M.D. Fl.).
United States Files False Claims Act Complaint Against Home Health Agency and Two of Its OwnersRead the Press Release
Tampa, FL – The United States has filed a complaint in intervention against Doctor’s Choice Home Care Inc (Doctor’s Choice), Timothy Beach, and Stuart Christensen alleging False Claims Act violations arising from the alleged payment of kickbacks in the form of sham medical director agreements and payments to the spouses of referring physicians, the Department of Justice today announced. Doctor’s Choice is a home health agency based in Sarasota, Florida. Timothy Beach and Stuart Christensen are partial owners of Doctor’s Choice.
“Healthcare providers must make recommendations about their patients’ health without respect to their own financial interests,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to do our part to protect federal health care program beneficiaries and the American taxpayers from the corrupting influence of kickbacks designed to undermine the impartiality and integrity of physician decision making.”
“Kickbacks and other improper remuneration that interferes with the medical decision-making process undermines the integrity of our healthcare system,” said U.S. Attorney Maria Chapa Lopez. “My Office will continue to aggressively pursue those who violate these laws and compromise our system of care.”
The lawsuit alleges that Doctor’s Choice, with the knowledge of Beach and Christensen, paid kickbacks in the form of sham medical directorships to three physicians to refer patients to Doctor’s Choice. All three physicians allegedly did little, if any, of the work for which Doctor’s Choice paid them as medical directors. Sham medical director agreements to induce patient referrals violate the Anti-Kickback Statute and the Stark Law. Doctor’s Choice also allegedly paid some employees in a manner that accounted for the volume of referrals by their physician spouses, in violation of the Stark Law.
The Anti-Kickback Statute prohibits anyone from offering or paying remuneration in order to induce or reward referrals for services paid for under federal healthcare programs. The Stark Law forbids certain medical providers, including home health agencies, from submitting claims to Medicare for services provided to patients who were referred by a physician with whom the provider has a prohibited financial relationship, unless that relationship falls within an applicable exception.
The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating the case, as it has done here. A defendant who violates the act is subject to three times the government’s losses, plus applicable penalties.
This case is being handled by the Department of Justice’s Civil Division and Assistant U.S. Attorney Charles Harden of the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the Federal Bureau of Investigation and the Office of Inspector General of the Department of Health and Human Services.
The claims made in the complaint are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Herbold v. Doctor’s Choice Home Care Inc., et al., Case No. 8:15-cv-01044 (M.D. Fl.).
U.S. Attorney David C. Joseph Announces Settlement with Louisiana Drug Distributor, Resolving Claims it Failed to Report Suspicious Opioid Orders to DEARead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Morris & Dickson Company LLC has agreed to pay the United States $22 million in civil penalties to resolve claims that it violated the Controlled Substances Act by failing to report suspicious orders of hydrocodone and oxycodone.
“The fight against opioid abuse is among our nation’s most pressing law enforcement and public health initiatives,” said U.S. Attorney David C. Joseph. “Opioids are now the leading cause of accidental death in the United States – killing approximately 130 Americans every day. About 40 percent of these deaths involve prescription drug abuse. This settlement demonstrates the Justice Department’s continued commitment to use all of the tools at its disposal to stem the opioid epidemic. Louisiana citizens should know that my office and our local DEA agents will continue to investigate and aggressively prosecute any manufacturer, distributor, pharmacy, or doctor who, whether negligently or intentionally, fail in their duty to appropriately control the distribution and use of these deadly drugs.”
In addition to paying $22 million in settlement funds, Morris & Dickson also agreed during the course of the negotiations to make significant upgrades to its compliance program by investing millions of dollars to hire additional staff and implement new protocols and standards to ensure compliance with federal regulations requiring them to report suspicious orders of controlled substances.
This settlement arises from a Drug Enforcement Administration Office of Diversion Control investigation into Morris & Dickson’s failure to report suspicious orders of hydrocodone and oxycodone. Since January 2014, DEA Diversion agents have identified more than 12,000 allegedly suspicious retail pharmacy orders that should have been reported. Under the Controlled Substances Act and its implementing regulations, distributors are required to report suspicious orders to the DEA. Reporting suspicious orders and maintaining effective controls against diversion of controlled substances are critical components of the government’s effort to stop the illegal distribution and sale of opioids.
DEA Special Agent in Charge Brad L. Byerley said, "The failure to report suspicious orders as required by federal regulations contributes to the opioid epidemic, which has caused devastating harm to individuals and our communities. The settlement with Morris & Dickson demonstrates the resolve by DEA to use all available tools to address this crisis at every level and reduce the availability of highly addictive, dangerous drugs."
Morris & Dickson is the largest privately owned wholesale pharmaceutical distributor in the United States and the fourth largest wholesale distributor in the country, reporting total revenues of over $4 billion in its fiscal year ending January 31, 2018. Since January 2014, Morris & Dickson distributed controlled substances to approximately 800 retail pharmacies across 17 states, distributing over 600,000,000 dosage units. Morris & Dickson services hospitals, alternative and other health care providers, and retail pharmacies out of its Shreveport, Louisiana facility.
Mr. Joseph thanked the diversion investigators of DEA’s Office of Diversion Control - New Orleans Division for their work in this matter. Mr. Joseph was assisted in handling this matter by Assistant U.S. Attorney Melissa Theriot and former Assistant U.S. Attorney Shannon Brown.
The Centers for Disease Control and Prevention (“CDC”) estimates that more than 630,000 Americans died from drug overdoses from 1999 to 2016. In 2016 alone, approximately 42,000 people died of opioid-related causes. The number of opioid-overdose deaths has reached epidemic proportions: in 2016 there were five times as many such deaths as there were in 1999.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers. To report suspected opioid-related crimes, the public is encouraged to contact the DEA at https://www.deadiversion.usdoj.gov/tips_online.htm.
Turtle Creek Man Sentenced to 11 Years in Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH - A resident of Turtle Creek, Pennsylvania, has been sentenced in federal court to 11 years’ (132 months’) imprisonment, followed by 10 years’ supervised release on his conviction of distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on Robert Bernal, Jr., 29.
According to information presented to the court, on December 3, 2015, Bernal distributed an image depicting the sexual exploitation of a prepubescent female over the Internet using the Skype application. Law enforcement officers were notified of the uploaded image after a report was submitted to the National Center for Missing and Exploited Children. A search warrant was then obtained and executed at Bernal’s residence. A search of a computer and cellular telephones seized during the search revealed hundreds of saved images and videos depicting the sexual exploitation of minors.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County Police Department, and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Bernal, Jr.
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.
Three Parents in College Admissions Case Plead GuiltyRead the Press Release
BOSTON – Three parents charged in the college admissions case pleaded guilty today in federal court in Boston.
Jane Buckingham, 50, of Beverly Hills, Calif.; Robert Flaxman, 62, of Laguna Beach, Calif.; and Marjorie Klapper, 50, of Menlo Park, Calif., each pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. U.S. District Court Judge Indira Talwani scheduled the sentencings for Oct. 23, Oct. 18, and Oct. 16, 2019, respectively.
At today’s hearing, Buckingham acknowledged agreeing to pay Rick Singer $50,000 to participate in the college entrance exam cheating scheme for her son. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the Guidelines sentencing range, one year of supervised release, a fine of $40,000, restitution and forfeiture.
Flaxman acknowledged agreeing to pay Singer $75,000 to participate in the college entrance exam cheating scheme for his daughter. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the Guidelines sentencing range, one year of supervised release, a fine of $40,000, restitution and forfeiture.
Klapper acknowledged agreeing to pay Rick Singer $15,000 to participate in the college entrance exam cheating scheme for her son. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the Guidelines sentencing range, one year of supervised release, a fine of $20,000, restitution and forfeiture.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three El Paso Men Sentenced to Federal Prison for Sex Trafficking SchemeRead the Press Release
In El Paso, a federal judge has sentenced three men for their roles in a sex trafficking scheme, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton.
Yesterday afternoon, U.S. District Judge Kathleen Cardone sentenced 22–year-old Khalil S. Maxwell (aka “Korrupt,” “Khalil Zero Tolerance”) to 25 years in federal prison followed by ten years of supervised release. On May 16, 2019, Judge Cardone sentenced 28–year-old Daniel Chavez to ten years in federal prison followed by ten years of supervised release. On May 15, 2019, Judge Cardone sentenced 21–year-old Raymundo Nettles to nine years in federal prison followed by ten years of supervised release. Judge Cardone also ordered each defendant to pay a $5,000 special assessment under the Justice for Victims of Trafficking Act.
Khalil S. Maxwell led a sex trafficking ring in El Paso, Texas from March 11, 2015 through October 31, 2016. Maxwell used physical violence to intimidate and cause underage girls, ranging in age from 13 to 17, to engage in commercial sex acts for money. Maxwell enlisted co-defendants Daniel M. Chavez and Raymundo Nettles to rent hotel rooms and to drive the underage girls to hotels and other locations where the sex acts occurred.
On February 1, 2019, Maxwell pleaded guilty to one count of conspiracy to commit sex trafficking of children by force, fraud, or coercion and one substantive count of sex trafficking of children. In January 2019, Chavez and Nettles pleaded guilty to the conspiracy charge.
“Today the miscreants who inflicted violence on children to coerce them into selling sex were given long prison terms. While I am proud of our prosecutors and law-enforcement agents for delivering justice in this case, we need to do more as a society to prevent this kind of abuse in the first place,” stated U.S. Attorney Bash.
“These sentences assure that this heinous sexual predator and his accomplices will not prey on any more girls for a long, long time,” said HSI El Paso Special Agent in Charge Staton. “It also serves as a sobering warning to those engaged in the sex trafficking of minors: HSI will continue to work relentlessly with its law enforcement partners to identify these dangerous offenders and bring them to justice.”
HSI agents in El Paso conducted this investigation. Assistant U.S. Attorneys Patricia Acosta and Mallory Rasmussen prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Texas Restaurant Owners Convicted of Tax FraudRead the Press Release
A Texas couple was convicted yesterday of conspiracy and tax charges by a federal jury in Austin, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Michael Herman and his wife, Cynthia Herman were convicted of conspiracy to defraud the United States by impeding the Internal Revenue Service (IRS) and of filing false individual income tax returns for tax years 2010 and 2011. The jury also convicted Michael Herman of filing false 2010 through 2012 corporate income tax returns.
According to the evidence introduced at trial, the Hermans owned and operated three establishments: Cindy’s Gone Hog Wild, a restaurant and bar in Travis County, Texas, and two restaurants in Bastrop County, Texas, Cindy’s Downtown and Hasler Brothers Steakhouse. The Hermans skimmed cash from the restaurants by depositing only a portion of the restaurants’ cash receipts into their business bank accounts and reported only those deposits on the corporate and individual income tax returns. The evidence at trial showed that the Hermans failed to deposit approximately $570,000 in cash receipts into their business bank accounts. The Hermans also paid for personal expenses out of the business accounts, including repair of their personal swimming pool, utilities for their home, and the salary of a household employee. Michael Herman signed and filed the false 2010 through 2012 income tax returns filed on behalf of Cindy’s Gone Hog Wild Inc.
U.S. District Court Judge Xavier Rodriguez has not set a sentencing date. The Hermans each face a statutory maximum sentence of five years in prison on the conspiracy charge and three years in prison on each of the false tax return charges. They also face a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Robert A. Kemins and David Zisserson, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Western District of Texas for their substantial assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Tampa Pastor and Daughter Sentenced for Roles in Tax Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Luckner Stimphil (55, Brandon) to four years and nine months in federal prison for conspiracy to defraud the United States. Last week, Stimphil’s daughter, Elwolfine Dufort (31, Riverview), was sentenced to two years in federal prison for her role in the conspiracy. The court also ordered Stimphil and Dufort to pay $11 million in restitution, joint and several, to the United States and imposed a $10,000 fine against Stimphil. Stimphil and Dufort had pleaded guilty in February 2019.
Stimphil and Dufort have agreed to be permanently enjoined from preparing or assisting in the preparation or filing of federal tax returns or other related documents for any other person or entity; from maintaining any association with a tax return preparation business; and from instructing, teaching, or otherwise training any person in the preparation of federal tax returns. Stimphil further consented to pay all taxes, interest, and penalties he owed to the IRS relating to his personal tax returns for years 2012 and 2013.
According to court documents, Stimphil, the then-pastor at First Calvary Family Life Ministry in Tampa, created and operated Top Popular Tax, a tax return preparer business with offices in Tampa, Winter Haven, and other locations. The business operated from around 2011 through at least mid-2015. Stimphil, Dufort, and others working under Stimphil’s supervision, routinely assisted in and advised in the preparation and presentation to the IRS of false and fraudulent Top Popular Tax clients’ IRS Forms 1040. They included materially false and fraudulent information on the client-taxpayers’ Schedule C Forms (business income or loss) and Forms 8863 (associated with a claim for the American opportunity credit). Some of the forms submitted to the IRS by Top Popular Tax also included a false and fraudulent claim for a credit for federal tax on fuels.
“Together, Luckner Stimphil and his daughter, Elwolfine Dufort, were responsible for preparing false tax returns that caused more than $11 million dollars in losses to the IRS, essentially stealing the tax dollars paid by honest Americans,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “As unconscionable as that sounds, the damage did not stop there. Their actions upended the lives of their clients who now must sort out the mess caused by the false returns Stimphil and Dufort filed in their names. We plead with all taxpayers to do their due diligence in selecting a trustworthy and accredited return preparer.”
This case was investigated by IRS-Criminal Investigation. It was prosecuted by Assistant United States Attorney Jay G. Trezevant and Craig R. Gestring.
Surgical Funding Facilitator and Physician Charged in Alleged Nationwide Scheme to Defraud Women in Connection with Transvaginal Mesh LitigationRead the Press Release
BROOKLYN, N.Y. – Earlier today, at the federal courthouse in Brooklyn, a six-count indictment was unsealed charging Wesley Blake Barber, the owner of Surgical Assistance Inc. and Medical Funding Consultants LLC, and Christopher Walker, a licensed urogynecologist and owner of MedSurg Holdings LLC, for their roles in an alleged scheme to defraud women across the United States in connection with surgeries to remove transvaginal mesh (TVM) implants.
Barber and Walker are each charged with committing wire fraud, violating the Travel Act and related conspiracies. Both defendants were arrested this morning. Barber is expected to appear this afternoon before U.S. Magistrate Judge Rebecca Rutherford of the Northern District of Texas at the federal courthouse in Dallas, and Walker is expected to appear before U.S. Magistrate Judge Gregory Kelly of the Middle District of Florida at the federal courthouse in Orlando.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the indictment.
“As alleged in the indictment, the defendants and their co-conspirators exploited and defrauded women, misrepresenting health risks from TVM implants to pressure the women to undergo procedures to the defendants’ economic advantage,” stated United States Attorney Donoghue. “This Office, the Department of Justice and the FBI will continue to investigate and prosecute medical professionals and others who prey on the vulnerable to line their own pockets.”
“Barber and Walker convinced their victims to subject themselves to surgical procedures based on misrepresentations of fact, as alleged, causing them to incur a financial loss, and likely presenting them with a significant emotional burden,” stated FBI Assistant Director-in-Charge Sweeney. “They used the bodies of women as a conduit for their greedy behavior, and that is simply not allowed. Medical professionals play a vital role in our society, and they're required to adhere to a strict set of standards. As evidenced today, those who don't will be held accountable.”
According to the indictment, Barber and Walker sought to profit in connection with lawsuits filed throughout the United States relating to alleged harm that TVM implants had caused women. The alleged scheme sought to take advantage of settlements in these lawsuits in which women who had their TVM implants surgically removed were entitled to receive larger settlements than women whose inserts remained implanted. As part of the scheme, the conspirators allegedly persuaded women around the country to undergo removal surgeries by fraudulently misrepresenting both the health risks associated with the TVM implants and the need to travel long distances to use pre-selected doctors for the surgeries, including Walker, rather than their local doctors. Barber’s companies allegedly coordinated the removal surgeries and then purchased and resold for profit the medical debts incurred by the women. In addition, Walker and others paid kickbacks and bribes to Barber in exchange for the referral of these women for their surgeries.
The charges in the indictment are allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all the charges, Barber and Walker each face up to 90 years’ imprisonment.
The investigation was conducted by the FBI. Assistant U.S. Attorney Elizabeth Geddes of the Eastern District of New York and Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section are prosecuting the case.
The Defendants:
WESLEY BLAKE BARBER
Age: 49
Detroit, MichiganCHRISTOPHER WALKER
Age: 49
Orlando, FloridaE.D.N.Y. Docket No. 19-CR-239 (RJD)
Surgical Funding Facilitator and Physician Charged in Alleged Nationwide Scheme to Defraud Women in Connection with Transvaginal Mesh LitigationRead the Press Release
A surgical funding facilitator and a licensed urogynecologist were charged in a six-count indictment unsealed today for their roles in an alleged scheme to defraud women across the United States in connection with surgeries to remove transvaginal mesh (TVM) implants related to mass tort litigation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
Wesley Blake Barber, 49, of Detroit, Michigan, the owner of Surgical Assistance Inc. and Medical Funding Consultants LLC, and Christopher Walker, M.D., 49, of Orlando, Florida, and owner of MedSurg Holdings LLC, were charged in an indictment filed in the Eastern District of New York with one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to violate the Travel Act and one count of violating the Travel Act. Both defendants were arrested this morning. Barber is expected to appear this afternoon before U.S. Magistrate Judge Rebecca Rutherford of the Northern District of Texas at the federal courthouse in Dallas, and Walker is expected to appear before U.S. Magistrate Judge Gregory Kelly of the Middle District of Florida at the federal courthouse in Orlando. The case has been assigned to U.S. District Judge Raymond J. Dearie of the Eastern District of New York.
According to the indictment, Barber and Walker sought to profit in connection with lawsuits filed around the country relating to alleged harm that TVM implants caused women. The alleged scheme sought to take advantage of settlements in these lawsuits in which women who had their TVM implants surgically removed were entitled to receive larger settlements than women whose inserts remained implanted. As part of the scheme, women around the country were allegedly enticed into agreeing to undergo removal surgeries after scheme participants allegedly fraudulently told the women, among other things, about the risks of the TVM implants and the need to travel long distances and incur significant debt in order to undergo the surgeries. In addition, Walker and others allegedly paid kickbacks and bribes to Barber in exchange for the referral of these women for surgeries.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI. Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth Geddes of the Eastern District of New York are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Statement by United States Attorney Robert J. Higdon, Jr. on the Confirmation of Michael East as United States MarshalRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina comments on the confirmation of Michael East to serve as United States Marshal for the Eastern District of North Carolina.
“Today the United States Senate has confirmed President Trump’s nomination of Michael East to serve as United States Marshal for the Eastern District of North Carolina. I can think of no one better to take up this important position.
Mike East served the people of this State as an agent of the North Carolina State Bureau of Investigation for 28 years. There he worked as a member of the Child Fatality Task Force Prevention Team, the Crisis Negotiation Team and as Special Agent in Charge of the Financial Crimes Unit. He led investigations focused on public corruption, violent crime, drug crimes, economic crimes and many others. More recently he has served in my office as our first Forensic Investigator in the Organize Crime Drug Enforcement Task Force where he has focused on the financial side of drug trafficking investigations. He has, likewise, played a key investigative role in our ability to prosecute heroin and opioid overdose death cases. Mike has also provided critical training and assistance to law enforcement all across the State of North Carolina, around the United States and overseas.
Mike is well-suited to lead the men and women of the United States Marshals Service here in the Eastern District. The Marshals Service provides critical investigation services in a range of cases, secures our courthouses and other federal facilities, supports federal and state prosecutions through warrant enforcement, and plays a key role in the seizure, forfeiture and disposal of property used by defendants to facilitate their criminal activity or property which is the proceeds of that activity.
Mike East will be an outstanding United States Marshal. President Trump has made an outstanding choice and I look forward to working side-by-side with Marshal East and the Marshals Service he will now lead.”
St. Lucie County Resident Pleads Guilty to Orchestrating Wire Fraud Scheme and Embezzling EmployersRead the Press Release
Sabrinea Lallonie Brooks, 28, of St. Lucie County, Florida, pled guilty to participating in a wire fraud scheme and embezzling funds from employers.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Javaro Sims, Chief, Delray Beach Police Department, made the announcement.
Brooks pled guilty to a criminal Information charging: seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of access device fraud, in in violation of Title 18, United States Code, Section 1029(a)(5);and one count of forged security, in violation of Title 18, United States Code, Section 513(a) (Case No. 19-CR-14020). The guilty plea was entered before U.S. Magistrate Judge Shaniek M. Maynard, in Ft. Pierce. Brooks is scheduled to be sentenced by U.S. District Judge Robin L. Rosenberg on July 26, 2019, in Ft Pierce. She faces up to 20 years in prison per count of wire fraud, up to 15 years in prison for access device fraud, and 10 years in prison for the forged security conviction. In addition, Brooks faces up 5 years of supervised release and must pay restitution to the victims of the fraudulent scheme.
According to the criminal Information and a Stipulated Factual Basis filed with the Court, between February 2014 through December 2015, Brooks was employed as a billing and collections specialist by companies Apex Billing, LLC, Dream Center for Recovery, Supportive Healthcare Services, and Wellness Center of Palm Beach, LLC. Brooks without authorization, contacted third party issuer agents of insurance companies and using fraudulent pretenses and making materially false representations, caused the third party issuer agents of insurance companies to give her treatment provider registration codes, pin numbers, and links. Brooks used this information to access the third party issuer agents’ website, to create new user accounts, to re-register treatment providers, and change the method of payment and/or the routing of insurance provider payments, intended for treatment providers. As a result of her wire fraud, Brooks received at least $463,402.30 in illegal proceeds.
While working for these companies, Brooks also intercepted “Vpayments”/ virtual credit cards issued as insurance payments to several treatment providers. Thereafter, Brooks processed some of the “Vpayments”/ virtual credit cards using the Square merchant processing mobile payment program. Brooks created several Square accounts, which she linked to bank accounts under her control. Because of her access device fraud, Brooks received at least $57,632.76, in illegal proceeds.
While working for Wellness Center of Palm Beach, LLC, as a billing manager, Brooks also created a fraudulent company, and opened SunTrust Bank account, in the name of “Wellness Ctr of Palm Beach Billing LLC.” Thereafter, Brooks deposited checks payable to Wellness Center of Palm Beach, LLC, into the SunTrust Bank account that were endorsed with her signature and a stamp listing her fraudulent billing company. Because of her theft of Wellness Center of Palm Beach, LLC checks, Brooks received at least $352,521.72, in illegal proceeds.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and Delray Beach Police Department in this matter. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov
St. Croix Man Pleads Guilty to Conspiracy to Possess Cocaine at Henry E. Rohlsen AirportRead the Press Release
St. Croix, USVI – Don-Luke George, 24, of St. Croix, pled guilty on May 23, 2019, in District Court to one count of Conspiracy to Possess Cocaine with Intent to Distribute, United States Attorney Gretchen C.F. Shappert announced.
This federal offense carries a possible sentence of incarceration of 5 to 40 years, a maximum fine of up to $250,000 dollars, and a term of supervised release for at least 4 years. Sentencing is set for September 25, 2019.
According to court documents, on April 12, 2018, Don-Luke George, along with a co-defendant, conspired to bring 2010 grams of cocaine (2.01 kilograms) into the Henry E. Rohlsen Airport with the intent to transport the cocaine to Miami via American Airlines flight #2227. Specifically, George, who was employed at the airport, smuggled four bricks of cocaine into the passenger waiting area of the airport, and delivered them to the co-defendant in the men’s restroom. The co-defendant was a passenger on the outgoing American Airlines flight, but was intercepted with the cocaine prior to boarding his flight by Customs and Border Protection officers.
The case was investigated by Customs and Border Protection and Homeland Security Investigations. The cocaine was analyzed by the DEA Southeast Laboratory in Miami. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Rochester Man Convicted by A Federal Jury of Cocaine Trafficking Conspiracy Going to Prison for 30 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Juan Sampel, 48, of Rochester, NY, who was convicted following a jury trial of conspiracy to possess with intent to distribute five kilograms or more of cocaine, was sentenced to serve 360 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Sean C. Eldridge and Robert A. Marangola, who handled the prosecution of the case, stated that the evidence presented at trial demonstrated that between 2015 and April 27, 2016, Sampel and co-defendant Jose Gonzalez were part of a cocaine distribution network that distributed kilograms of cocaine in Rochester. During the investigation, law enforcement officers obtained court ordered wiretaps on several phone numbers related to that conspiracy. Calls involving Sampel, Gonzalez, and other co-conspirators were recorded. During those calls, the defendants used coded references to refer to their cocaine trafficking. Other intercepted communications revealed discussions about identifying undercover police vehicles and encouraging co-conspirators to utilize encrypted forms of communications over their phones. Investigators also utilized video surveillance to record meetings and the transfer of cocaine and cash between co-conspirators.
On April 27, 2016, several search warrants were executed, including at the residences of the defendants. Law enforcement officers recovered multiple cellular telephones, including Sampel’s phone, drug paraphernalia such as scales and baggies, and over $11,000 in cash from Gonzalez’s residence, and over $17,000 from Sampel’s residence. As part of the overall investigation, investigators seized over 11 kilograms of cocaine.
Co-defendant Jose Gonzalez is scheduled to be sentenced on June 10, 2019, at 11:00 a.m.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Rochester Police Department, under the direction of Chief La'Ron D. Singletary.
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Rochester Bank Robber Going to Prison for Seven YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Derrick Stubbs, 54, of Rochester, NY, who was convicted of bank robbery, was sentenced to serve 84 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Sean Eldridge, who is handling the case, stated that on December 5, 2017, the defendant attempted to rob the Chase Bank located at 560 Monroe Avenue in Rochester, NY. On that same date, the defendant robbed the Summit Federal Credit Union at 1660 Monroe Avenue in Brighton, NY. Two days later, on December 7, 2017, Stubbs robbed the Chase Bank located at 920 Holt Road in Webster, NY.
During the robberies, the defendant handed a note to a bank employee demanding money. The notes contained statements to the teller such as “make it fast and don’t try nothing,” “don’t try anything funny,” and “no die pack and no games.”
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Chief La’Ron D. Singletary; the Brighton Police Department, under the direction of Mark Henderson; and the Webster Police Department, under the direction of Chief Joseph Rieger.
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Reno Doctor and Seven Others Arrested and Indicted for Trafficking Oxycodone and Hydrocodone PrescriptionsRead the Press Release
LAS VEGAS, Nev. – An indictment by a federal grand jury was unsealed today charging a doctor and seven others for conspiring to distribute Oxycodone and Hydrocodone, announced United States Attorney Nicholas A. Trutanich and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
Myron Motley, 55, of Richmond, California; Eric Math, M.D., 50, of Reno; Michael Kwoka, 56, of Fair Oaks, California; Michael Slater, 42, of Reno; Joseph Jeannette, 51, of Reno; Ivy Elliott, 35, of Reno; and Alesia Sampson, 56, of Grass Valley, California, are all charged with conspiracy to possess with intent to distribute and to distribute Oxycodone. Motley and Elliott are also charged with conspiracy to possess with intent to distribute and to distribute methamphetamine. Motley is also charged with four counts of distribution of Oxycodone and one count of distribution of Hydrocodone, Math and Slater are also each charged with one count of distribution of Oxycodone and one count of distribution of Hydrocodone, and Kwoka and Elliot are also charged with one count of distribution of Oxycodone. In a separate indictment, Motley and Randy Raihall, 58, of Reno, are each charged with one count of distribution of Oxycodone.
Motley was arrested in Richmond, California this morning and is scheduled to be arraigned today before United State Magistrate Judge Kandis A. Westmore in Oakland, California. Kowka and Sampson were arrested in Fair Oaks and Grass Valley this morning and are scheduled to be arraigned today before United States Magistrate Judge Carolyn K. Delaney in Sacramento, California. Math, Jeannette, Slater, Elliott, and Raihall are scheduled to be arraigned today at 3:00 pm before United States Magistrate Judge Carla Baldwin Carry in Reno.
According to allegations contained in the indictment, from January 2018 to May 2019, the defendants conspired to possess and distribute Oxycodone and Hydrocodone, each a schedule II controlled substance, with Dr. Math issuing prescriptions for the same without a medical purpose and not in the usual course of professional practice.
The mandatory minimum is 10 years in prison and the maximum penalty is 20 years in prison and a $10,000,000 fine.
According to the Centers for Disease Control and Prevention, Oxycodone and Hydrocodone are among the most common drugs involved in prescription opioid overdose deaths. Oxycodone and other Schedule II drugs have a high potential for abuse that can lead to addiction, overdose, and sometimes death.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The joint investigation was conducted by the FBI; the Reno Police Department; Nevada Highway Patrol; the Department of Welfare and Social Services Nevada; the Office of the Attorney General; the Carson City Sheriff’s Office; the Nevada Department of Corrections; the Nevada Gaming Control Board; the Sparks Police Department; the University of Nevada-Reno Police Department; and the IRS-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney James E. Keller.
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Owner of Tax Preparation Businesses Convicted of Tax FraudRead the Press Release
Following a five-day trial before U.S. District Court Judge Robert. N. Scola, Jr., a jury convicted Tamara Jeune, a/k/a “Tamara Voltaire”, 44, of West Palm Beach, of criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service (IRS).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
According to the evidence presented at trial, Jeune was the owner and operator of at least two tax preparation businesses: Investment Equity Development, Inc.; and Jacob G. Jeune, P.A. As part of her scheme, Jeune, who previously was convicted of tax preparation fraud, fraudulently obtained Electronic Filing Identification Numbers (EFINs) and Preparer Tax Identification Numbers (PTINs) in the names of other individuals who acted as “straw” EFIN and PTIN holders. The defendant then used those EFINs and PTINs to file fraudulent federal income tax returns with the IRS using stolen personal identifying information (PII) of other individuals, including her clients’, without their authorization and knowledge. These tax returns contained false wages, employment information, expenses, and deductions. Jeune also stole the PII of minors, who were at times her clients’ dependents, and then submitted false tax returns in their names.
As part of her scheme, the defendant directed the IRS to send the tax refund money associated with the false and fraudulent federal income tax returns to bank accounts that she controlled. She then used the money to pay for her personal expenses. The IRS suffered a loss in excess of $700,000.
Jeune is scheduled to be sentenced by Judge Scola on July 31, 2019, at 8:30 a.m. This case is being prosecuted by Assistant U.S. Attorneys Roger Cruz and Yisel Valdes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Operator of Unlicensed Marijuana Distribution Business Sentenced to Prison for Maintaining a Drug Involved Premises and Possession of Oxycodone and Marijuana with Intent to DistributeRead the Press Release
The 28-year-old operator of a Rainier Valley marijuana business was sentenced today in U.S. District Court in Seattle to 15 months in prison and three years of supervised release for operating a drug involved premises, and possession of oxycodone and marijuana with intent to distribute, announced U.S. Attorney Brian T. Moran. KELED ALI, of Seattle was arrested in October 2018, and pleaded guilty in January 2019. ATF and Seattle Police Department investigated drug activity and a gang related shootings near ‘One Stop,’ a marijuana distribution business in the 5300 block of Rainier Avenue South. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said, “When you run an illegal business you become a much larger target to people that want to take your drugs or your profits…. It attracts a criminal element to the community.”
“This defendant intentionally designed a business to undermine and thwart the State’s marijuana regulatory system – and because of that the business attracted violent crime and violent individuals,” said U.S. Attorney Brian T. Moran. “Even after the storefront was shut down, he persisted in selling not just marijuana but oxycodone – adding to the opioid epidemic. Federal law enforcement continues to target those who mix drug dealing and violence.”
According to records filed in the case, law enforcement became aware of gang activity related to the marijuana distribution business following a fatal shooting in December 2017 and a drive-by shooting in March 2018. ‘One Stop’ was not a licensed marijuana distributor under state or federal law. When undercover officers sought to investigate activities at the storefront, they were told marijuana could only be sold to customers introduced by other “members of their club.” On March 5, 2018, law enforcement executed a court authorized search warrant at the store. From a safe in the store officers recovered a 9 mm semi-automatic firearm, and they seized more than three pounds of marijuana from the store.
In October 2018, ALI was arrested after law enforcement observed him make numerous drug sales. In ALI’s car, law enforcement found more than two pounds of marijuana and 45 oxycodone pills packaged for resale.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
North Pole Man Indicted on Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Cecil John Zak, 40, of North Pole, Alaska, has been federally indicted with attempted possession of a controlled substance with intent to distribute, and possession of a controlled substance with intent to distribute. Zak was arrested on May 20, 2019, based on a criminal complaint.
According to the criminal complaint, on May 19, 2019, the U.S. Postal Inspection Service executed federal search warrants on two parcels originating from “Joe Wilcox” in California, to be delivered to “J. ZAK” in Fairbanks. It is alleged that inside the parcels were nearly three pounds of methamphetamine and one half pound of heroin. On May 20, 2019, U.S. Postal Inspectors conducted a controlled delivery on the intended address of the two parcels, and observed Zak take the parcels.
Upon his arrest, Zak was transported to the Fairbanks AST post. The complaint further alleges that a search of Zak’s residence revealed $3,000, several firearms, and drug trafficking paraphernalia including over five grams of methamphetamine, suspected ecstasy pills, money counter, digital scales, and suspected mephedrone.
If convicted, Zak faces a statutory minimum of 10 years and a maximum of life in prison for the most serious charges alleged in the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service (USPIS), and the Statewide Drug Enforcement Unit (SDEU), which is comprised of officers from the Alaska State Troopers (AST), the Fairbanks Police Department (FPD), and the North Pole Police Department, conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
The charges in the indictment and criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
North Carolina Man Sentenced to over Six Years in Prison for Medicaid Fraud and Tax Evasion ChargesRead the Press Release
A North Carolina man was sentenced to prison today for health care fraud related to the submission of false claims to Medicaid and for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
U.S. District Court Judge N. Carlton Tilley, Jr. of the Middle District of North Carolina sentenced Haydn Patrick Thomas, a resident of Durham, North Carolina, to a total sentence of 78 months in prison. On Sept. 5, 2018, Thomas pleaded guilty to one count of making a false statement relating to health care matters and one count of tax evasion for tax year 2014.
According to the documents filed with the court, Catinia Farrington owned Durham County Mental Health and Behavioral Health Services LLC (DCMBHS) in Durham, North Carolina. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid for services that were not performed. The false claims resulted in Medicaid paying approximately $4 million to DCMBHS. During the relevant period, Thomas worked as an office manager for an oral surgeon and provided Farrington with the names and Medicaid identification numbers of dental patients to facilitate the scheme.
In addition, Thomas evaded income taxes on the more than $1.4 million dollars he earned from DCMBHS by filing false tax returns with the Internal Revenue Service (IRS) and transferring money to various business bank accounts from which he paid his personal expenses. The resulting tax loss was approximately $518,000.
In addition to the term of imprisonment imposed, Thomas was order to serve three years of supervised release and to pay restitution in the amount of $3,950,656 to the North Carolina Fund for Medical Assistance and $518,997 to the IRS.
On March 1, 2019, Judge Tilley sentenced Farrington to 60 months in prison on one count of health care fraud conspiracy and one count of tax evasion. She was also ordered to pay over $4 million in total restitution to the North Carolina Fund for Medical Assistant and the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of the Internal Revenue Service and the U.S. Department of Health and Human Service, Office of Inspector General, who conducted the investigation, and Assistant United States Attorney Robert Hamilton (now retired), Trial Attorney Mara Strier of the Tax Division and Special Assistant U.S. Attorney Michael Heavner of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, who prosecuted the case.
North Carolina Man Sentenced to Prison for Medicaid Fraud and Tax Evasion ChargesRead the Press Release
WASHINGTON - A North Carolina man was sentenced to prison today for health care fraud related to the submission of false claims to Medicaid and for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
U.S. District Court Judge N. Carlton Tilley, Jr. of the Middle District of North Carolina sentenced Haydn Patrick Thomas, a resident of Durham, North Carolina, to a total sentence of 78 months in prison. On September 5, 2018, Thomas pleaded guilty to one count of making a false statement relating to health care matters and one count of tax evasion for tax year 2014.
According to the documents filed with the court, Catinia Farrington owned Durham County Mental Health and Behavioral Health Services, LLC (“DCMBHS”) in Durham, North Carolina. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid for services that were not performed. The false claims resulted in Medicaid paying approximately $4 million to DCMBHS. During the relevant period, Thomas worked as an office manager for an oral surgeon and provided Farrington with the names and Medicaid identification numbers of dental patients to facilitate the scheme.
In addition, Thomas evaded income taxes on the more than $1.4 million dollars he earned from DCMBHS by filing false tax returns with the Internal Revenue Service (IRS) and transferring money to various business bank accounts from which he paid his personal expenses. The resulting tax loss was approximately $518,000.
In addition to the term of imprisonment imposed, Thomas was order to serve three years of supervised release and to pay restitution in the amount of $3,950,656 to the North Carolina Fund for Medical Assistance and $518,997 to the IRS.
On March 1, 2019, Judge Tilley sentenced Farrington to 60 months in prison on one count of health care fraud conspiracy and one count of tax evasion. She was also ordered to pay over $4 million in total restitution to the North Carolina Fund for Medical Assistant and the IRS.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Martin commended special agents of the Internal Revenue Service and the U.S. Department of Health and Human Service, Office of Inspector General, who conducted the investigation, and Assistant United States Attorney Robert Hamilton (now retired), Trial Attorney Mara Strier of the Tax Division and Special Assistant U.S. Attorney Michael Heavner of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, who prosecuted the case.
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