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24 June 2019
Wichita Woman Pleads Guilty to Four Commercial RobberiesRead the Press Release
WICHITA, KAN. – A Wichita woman pleaded guilty Wednesday to four commercial robberies, U.S. Attorney Stephen McAllister said.
Savannah Cole, 21, Wichita, Kan., pleaded guilty to four counts of robbery. In her plea, he admitted committing the following robberies:
- Dollar General Store, 915 S. Glendale in Wichita, Nov. 22, 2017. Cole admitted she and co-defendant Kenneth W. Cade, 29, Wichita, Kan., went into the store together to rob it. Cade pointed a gun at an employee and demanded money.
- C-Store, 837 S. Oliver in Wichita, Feb. 7, 2018. Cole admitted she pointed a gun at an employee and demanded money. Cade stayed outside as a lookout.
- Arby’s, 4308 E. Harry in Wichita, Feb. 14, 2018. Cole and Cade went into the store to rob it. Cade pointed a firearm at an employee and demanded money.
- Circle K Store, 515 N. Seneca in Wichita, Feb. 14, 2018. Cole and Cade went into the store to rob it. Cole pointed a gun at the clerk and demanded money. Cade grabbed the cash
Sentencing is set for Sept. 16. She faces a penalty of up to 20 years in federal prison and a fine up to $250,000.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case, which was prosecuted as part of Project Safe Neighborhoods, a U.S. Department of Justice initiative targeting violent crime.
Wichita Man Sentenced for 27 Pounds of MethRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to 15 years in federal prison for trafficking in methamphetamine, U.S. Attorney Stephen McAllister said.
Daniel C. Nicholson, 54, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted he bought pound quantities of methamphetamine outside Kansas and used a network of subordinates to store and distribute the drugs in Wichita.
Investigators found 27 pounds of methamphetamine when they served a search warrant at Nicholson’s home in the 11000 block of east Lewis in Wichita. They also found $31,952 in cash.
McAllister commended the Sedgwick County Sheriff’s Office, the Drug Enforcement Administration, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney David Lind for their work on the case.
Waterbury Man Pleads Guilty to Federal Heroin Charge Related to Shelton Overdose InvestigationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TERRANCE SAUNDERS, 33, of Waterbury, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 23, 2016, the Shelton Police Department and emergency medical personnel responded to a suspected overdose at a Shelton residence. At the residence, medical personnel pronounced a 45-year-old female victim deceased. Investigators collected drug and non-drug evidence, including folds containing suspected heroin, and the victim’s cell phone.
Analysis of the victim’s cell phone revealed numerous contacts, including multiple text messages on March 22, 2016, between the victim and Saunders’ cell phone in which the victim arranged to acquire drugs. Investigators subsequently conducted controlled purchases of heroin and fentanyl from Saunders and his associate, Rashad Johnson, by contacting Saunders’ phone.
Saunders was arrested on a federal criminal complaint on December 27, 2018.
Saunders is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 16, 2019, at which time he faces a maximum term of imprisonment of 20 years.
Saunders is released on a $100,000 bond pending sentencing.
Johnson, of Waterbury, pleaded guilty to the same charge on June 19, 2019, and awaits sentencing.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Task Force and the Shelton, Ansonia and Monroe Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
U.S. Attorney Shores Announces the Hiring of a Violent Crime Paralegal Specialist and Asset Forfeiture Assistant U.S. AttorneyRead the Press Release
TULSA, Okla. – United States Attorney Trent Shores announced today the hiring of Elizabeth Dick as the Violent Crime Paralegal Specialist and Reagan Reininger as Assistant U.S. Attorney in the Asset Forfeiture Unit. Both will be part of the Criminal Division of the U.S. Attorney’s Office for the Northern District of Oklahoma.
“We are enthused to have Liz Dick and Reagan Reininger on our staff,” said U.S. Attorney Trent Shores. “It’s great to have Liz on our legal team as a research and writing expert. Liz’s professionalism and get-it-done attitude are welcome additions. Reagan joins our Asset Recovery Unit where her background as both a criminal and civil litigator will be a real asset. Her diverse experience makes her a valuable member of our prosecution team. I am confident that both attorneys will make a positive impact in our community.”
Ms. Dick has been a practicing attorney since 2012. Most recently, she practiced as a research and writing contract attorney for numerous firms in Tulsa while simultaneously teaching mathematics at Jenks Public Schools. While there, Ms. Dick was named Freshman Academy Teacher of the Year in 2016, and she was the first Creative Learning Systems STEM facilitator in the state. Previously, Ms. Dick was legal intern for the U.S. Attorney’s Office from September 2011 to April 2012. Ms. Dick received her undergraduate degree from Michigan Technological University and her Juris Doctorate from the University of Tulsa College of Law.
Ms. Reininger has been a practicing attorney since 2008 and will be handling Asset Forfeiture matters for the U.S. Attorney’s Office. Most recently, she worked as an Associate Attorney at the law firm of Richards & Connor in Tulsa. Previously, she worked major cases, including homicide and robbery, as Assistant District Attorney with the Oklahoma, Rogers, and Tulsa County District Attorneys’ Offices. Ms. Reininger received her undergraduate degree from Oklahoma State University and her Juris Doctorate from the Oklahoma City University School of Law.
Two Physicians and Two Registered Nurses Indicted in Mississippi Compounding Pharmacy Fraud SchemeRead the Press Release
WASHINGTON – Two Mississippi-licensed physicians and two Mississippi-licensed registered nurses were charged in an indictment unsealed today for their roles in a multimillion dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members, as well as private health care benefit programs Blue Cross & Blue Shield of Mississippi and United Healthcare of Mississippi.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst of the Southern District of Mississippi, Acting Special Agent in Charge Steven J. Jensen of the FBI’s Jackson, Mississippi Field Office and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Shahjahan Sultan, M.D., 37, of Madison, Mississippi, Thomas Edward Sturdavant, M.D., 56, of Kingsport, Tennessee, Freda Cal Covington, R.N., 54, of Hattiesburg, Mississippi, and Fallon Deneem Page, R.N., 36, of Soso, Mississippi were each charged in various counts of a 15-count indictment returned on June 11, 2019 in the Southern District of Mississippi. The indictment was unsealed upon the defendants’ arrests today. The defendants will make their initial appearances this week before U.S. Magistrate Judge Michael T. Parker of the Southern District of Mississippi.
Sultan, Sturdavant, Covington and Page were each charged with one count of conspiracy to commit health care fraud and mail fraud. In addition, Sultan was charged with two counts of mail fraud, one count of conspiracy to distribute and dispense a controlled substance, two counts of distributing and dispensing a controlled substance, one count of conspiracy to pay and receive health care kickbacks and four counts of paying health care kickbacks. Sturdavant was also charged with two counts of mail fraud, one count of conspiracy to distribute and dispense a controlled substance and two counts of distributing and dispensing a controlled substance. Page was also charged with two counts of mail fraud.
The indictment alleges that Sultan, Sturdavant, Covington and Page participated in a scheme to defraud TRICARE and private health care benefit programs by prescribing and dispensing medically unnecessary compounded medications, some of which included ketamine, a controlled substance, to individuals, at times without first examining them, for the purpose of having an Ocean Springs, Mississippi-based compounding pharmacy dispense these medically unnecessary compounded medications. In addition, the indictment alleges that, between March 2014 and February 2015, the defendants’ scheme caused TRICARE and private health care benefit programs to reimburse the compounding pharmacy more than $7 million for dispensing the compounded medications prescribed by Sultan and Sturdavant. The indictment further alleges that Sultan was paid at least 25 percent of the reimbursements received from health care benefit programs, including TRICARE, for compounded medications prescribed by Sultan and Sturdavant. Sultan is alleged to have then paid Sturdavant for prescribing compounded medications to TRICARE beneficiaries and to have paid other co-conspirators for identifying and recruiting TRICARE beneficiaries to receive compounded medications.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and DCIS. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall and Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two Physicians and Two Registered Nurses Indicted in Mississippi Compounding Pharmacy Fraud SchemeRead the Press Release
Two Mississippi-licensed physicians and two Mississippi-licensed registered nurses were charged in an indictment unsealed today for their roles in a multimillion dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members, as well as private health care benefit programs Blue Cross & Blue Shield of Mississippi and United Healthcare of Mississippi.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst of the Southern District of Mississippi, Acting Special Agent in Charge Steven J. Jensen of the FBI’s Jackson, Mississippi Field Office and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Shahjahan Sultan, M.D., 37, of Madison, Mississippi, Thomas Edward Sturdavant, M.D., 56, of Kingsport, Tennessee, Freda Cal Covington, R.N., 54, of Hattiesburg, Mississippi, and Fallon Deneem Page, R.N., 36, of Soso, Mississippi were each charged in various counts of a 15-count indictment returned on June 11, 2019 in the Southern District of Mississippi. The indictment was unsealed upon the defendants’ arrests today. The defendants will make their initial appearances this week before U.S. Magistrate Judge Michael T. Parker of the Southern District of Mississippi.
Sultan, Sturdavant, Covington and Page were each charged with one count of conspiracy to commit health care fraud and mail fraud. In addition, Sultan was charged with two counts of mail fraud, one count of conspiracy to distribute and dispense a controlled substance, two counts of distributing and dispensing a controlled substance, one count of conspiracy to pay and receive health care kickbacks and four counts of paying health care kickbacks. Sturdavant was also charged with two counts of mail fraud, one count of conspiracy to distribute and dispense a controlled substance and two counts of distributing and dispensing a controlled substance. Page was also charged with two counts of mail fraud.
The indictment alleges that Sultan, Sturdavant, Covington and Page participated in a scheme to defraud TRICARE and private health care benefit programs by prescribing and dispensing medically unnecessary compounded medications, some of which included ketamine, a controlled substance, to individuals, at times without first examining them, for the purpose of having an Ocean Springs, Mississippi-based compounding pharmacy dispense these medically unnecessary compounded medications. In addition, the indictment alleges that, between March 2014 and February 2015, the defendants’ scheme caused TRICARE and private health care benefit programs to reimburse the compounding pharmacy more than $7 million for dispensing the compounded medications prescribed by Sultan and Sturdavant. The indictment further alleges that Sultan was paid at least 25 percent of the reimbursements received from health care benefit programs, including TRICARE, for compounded medications prescribed by Sultan and Sturdavant. Sultan is alleged to have then paid Sturdavant for prescribing compounded medications to TRICARE beneficiaries and to have paid other co-conspirators for identifying and recruiting TRICARE beneficiaries to receive compounded medications.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and DCIS. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall and Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two More Texas Men Sentenced for Stealing 654 Firearms from UPS Trailers in SpringfieldRead the Press Release
SPRINGFIELD, Mo. – Two Texas men have been sentenced in federal court for stealing 654 firearms from United Parcel Service trailers in Springfield, Mo., en route to Bass Pro Shops.
Raynord Hunt, 36, and Keith Lowe, 29, both of Dallas, were sentenced in separate appearances before U.S. Chief District Judge Beth Phillips on Friday, June 21. Hunt was sentenced to eight years and four months in federal prison without parole. Lowe was sentenced to six years in federal prison without parole.
Hunt and Lowe admitted they aided and abetted each other to steal cargo that was being shipped across state lines, from Beretta USA in Maryland to the state of Missouri. They also pleaded guilty to aiding and abetting each other to possess stolen firearms.
Four co-defendants were sentenced on May 20, 2019. Frank McChriston, 35, of Dallas, was sentenced to seven years and eight months in federal prison without parole. Derrick White, 33, of Dallas, was sentenced to seven years and three months in federal prison without parole. Quinton Haywood, 27, of Glenn Heights, Texas, was sentenced to seven years and six months in federal prison without parole. Eric White, 28, of Arlington, Texas, was sentenced to seven years and three months in federal prison without parole.
The court also ordered each of the defendants to pay $206,132 in restitution, for which they are jointly and severally liable.
According to court documents, the defendants stole 600 Beretta .380-caliber handguns and 54 Beretta 12-gauge shotguns from United Parcel Service (UPS) trailers in Springfield in October 2017.
The firearms were in the process of being shipped from Beretta Firearms in Maryland to Bass Pro Shops in Springfield. The trailers in which the firearms were shipped had been parked in the UPS freight lot in a configuration to prevent access to the trailer doors, by being parked back-to-back, with the roll-up doors facing each other. The trailers were then blocked by longer trailers, which should have acted as a preventative measure from someone backing a truck-tractor to the trailer and pulling it forward.
Sometime between noon on Oct. 28, 2017, and 8:30 a.m. on Oct. 29, 2017, thieves hot-wired two truck-tractors and used them to push and pull various trailers around the lot, allowing the thieves access to the trailer doors. UPS employees discovered the theft on Oct. 29, 2017, and notified law enforcement.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dallas, Texas, Police Department and the Texas Department of Public Safety.
Texarkana Man Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Randy Caldwell, age 41, of Texarkana, Arkansas, was sentenced last week to 168 months in federal prison followed by five years of supervised release for one count of Distribution of More Than 50 Grams of Methamphetamine. The Honorable Chief Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, during the course of an investigation into methamphetamine trafficking in the Western District of Arkansas, the South Central Drug Task Force identified Caldwell as a distributor of methamphetamine. In July of 2017, investigators arranged and conducted a controlled purchase of methamphetamine from Caldwell. The methamphetamine recovered was sent to the Arkansas State Crime Laboratory, where it was confirmed to contain approximately 95 grams of actual methamphetamine.
Caldwell was indicted by a federal grand jury in June 2018, and entered a guilty plea in December 2018.
This case was investigated by Federal Bureau of Investigation (FBI), and the South Central Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Slater Man Pleads Guilty to Transporting a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – A Slater, Mo., man pleaded guilty in federal court today to transporting a 16-year-old victim across state lines for illegal sexual activity.
Daniel Lee Kirby, 35, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to the charge contained in a July 11, 2018, federal indictment.
By pleading guilty today, Kirby admitted that he transported an individual under the age of 17 between March 4, 2018, and June 25, 2018, with the intent to engage in sexual activity.
The 16-year-old victim was discovered missing from her bedroom in East Ridge, Tennessee, at approximately 1:20 a.m. on March 4, 2018. Kirby was employed as a truck driver with Celadon Trucking, who reported their GPS tracking of Kirby’s rig showed him at a nearby parking lot, with its motor off, at approximately the same time. Although Kirby denied having contact with the child victim, Celadon Trucking searched Kirby’s rig for the child victim on multiple occasions after receiving tips he was harboring her.
On June 25, 2018, law enforcement received information that the child victim was living with Kirby in Slater. She was located with Kirby, who was arrested, and placed into emergency foster care by the Missouri Department of Social Services Children’s Division.
Kirby told investigators he met the child victim on Facebook. He considered her to be his girlfriend and admitted they had a sexual relationship. He agreed with and assisted in her plan to run away, and solicited her to move in with him. He also admitted that he picked her up in Tennessee and transported her to Missouri.
Kirby is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Slater, Mo., Police Department, the FBI and the State Technical Assistance Team.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Shasta County Couple Indicted for Forced Labor of Guatemalan Woman and Her Minor DaughtersRead the Press Release
SACRAMENTO, Calif. – An indictment was unsealed today following the arrests of Nery Martinez, 50, and Maura Martinez, 50, of Shasta Lake. The indictment charges the defendants with conspiracy, forced labor, and alien harboring for financial gain. Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Division made the announcement.
According to the allegations in the indictment, between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala; subjected them to physical, psychological, and verbal abuse; threatened them with arrest; and separated the Guatemala woman from her daughters, all to compel their labor.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted of forced labor and conspiracy to commit forced labor, the defendants face sentences up to 20 years in prison, as well as mandatory restitution. If convicted of alien harbor for financial gain and conspiracy to commit alien harboring, the defendants face up to 10 years in prison.
The case is the product of an investigation by the FBI’s Sacramento Division. It is being prosecuted by Trial Attorney Avner Shapiro for the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Amy Schuller Hitchcock for the Eastern District of California.
Sacramento was one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Scammer Who Re-victimized Unhappy Investors Pleads Guilty to Mail FraudRead the Press Release
A former Seattle resident who relocated to Laguna Niguel, California in the midst of his fraud scheme, pleaded guilty today in U.S. District Court in Seattle to mail fraud, announced U.S. Attorney Brian T. Moran. TROY CLINTON VAN SICKLE, 48, admits that between 2011 and 2014, he fraudulently operated an asset recovery business in order to defraud unhappy investors who previously had lost money they had invested with a Bellevue investment company. U.S. District Judge James L. Robart scheduled sentencing for September 30, 2019.
According to records filed in the case, during May and June 2011, VAN SICKLE represented to the unhappy investors that he had a company, Troy C. Van Sickle Consulting and Collections, and that for a fee he could help them recover their lost funds. VAN SICKLE falsely claimed that he had helped other investors recover large sums, and, in order to win investors’ trust, VAN SICKLE made various promises, including entering into a romantic relationship with one of the investors.
In February of 2012, VAN SICKLE moved to California. After he moved, VAN SICKLE told the investors that if they loaned him $75,000, he would (1) use the money in order to recover their lost investment, and (2) repay the $75,000 in 30 days. In fact, VAN SICKLE planned to use the money for his own purposes, including paying his rent through the end of the year, and did not intend to repay the investors. In July 2013, after one of the investors who loaned VAN SICKLE funds repeatedly sought the return of the money he loaned VAN SICKLE, VAN SICKLE sent the investor an invoice with false charges purporting to explain how VAN SICKLE had used the loaned funds in order to try to recover the investor’s funds.
Mail fraud is punishable by up to 20 years in prison and a $250,000 fine.
Over the course of the scheme, VAN SICKLE fraudulently took in $75,000. Under the terms of the Plea Agreement, in addition to repaying the investors that $75,000, VAN SICKLE has agreed to repay the investors an additional $175,000 in fees that he received from the investors.
The case was investigated by the FBI and the Washington State Department of Financial Institutions. The case is being prosecuted by Assistant United States Attorneys Arlen Storm and Andre Penalver.
Romanian National Pleads Guilty to Skimming SchemeRead the Press Release
SPRINGFIELD, Mo. – A Romanian national, who was arrested at a bank ATM, pleaded guilty in federal court today to charges related to her role in a skimming operating that illegally stole credit and debit card information from bank ATMs.
Loredana Baceanu, 31, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing counterfeit and unauthorized access devices.
Bank officials at Central Bank of the Ozarks in Springfield, Missouri, notified law enforcement on Oct. 12, 2018, of suspicious activity that had occurred at an ATM. The bank’s monitoring software had alerted them to the presence of a skimming device – a small electronic device used to steal credit card information – being placed on their ATM. When a person swipes a credit or debit card through a machine on which a skimmer is attached, the device captures and stores all the details stored in the card’s magnetic stripe. The stripe contains the credit card number and expiration date and the credit card holder’s full name. Thieves use the stolen data to make fraudulent charges either online or with a counterfeit credit card or gift card.
On Oct. 23, 2018, bank officials at Southern Bank discovered unidentified individuals targeting four different ATM locations, withdrawing money from multiple accounts. Bank officials stated that they believed these suspects were using stacks of re-encoded credit cards to facilitate the theft of funds from compromised credit and debit card accounts. Bank officials identified suspect photos at four different ATM locations in Springfield and Nixa, Missouri.
The Nixa branch manager was in the process of filing a police report on Oct. 23, 2018, when Baceanu returned to that branch’s ATM. The Nixa police officer who was taking the report returned to his patrol vehicle and initiated a traffic stop on Baceanu’s vehicle in the parking lot of the bank. Baceanu, who was a passenger in the vehicle, had 49 gift card/credit cards in a concealed pocket within an undergarment she was wearing and $880 concealed in her bra. A micro SD media storage card and a Florida identification card fell from somewhere within Baceanu’s shirt to the ground.
Upon using a card reader, law enforcement learned that the magnetic stripes on all 49 generic gift cards had been re-encoded and counterfeited with different account numbers not original to the gift card. The data on the Micro SD card was the raw data recovered from skimming devices.
Under federal statutes, Baceanu is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service, the Nixa, Mo., Police Department, the Springfield, Mo., Police Department, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Retired Massachusetts State Trooper Sentenced in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police Trooper was sentenced today in connection with collecting over $29,000 in overtime pay that he did not work.
Paul Cesan, 51, of Southwick, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one day in prison (deemed served), one year of supervised release, a fine of $5,500 and restitution in the amount of $29,287. In November 2018, Cesan pleaded guilty to one count of embezzlement from an agency receiving federal funds.
Cesan was a Massachusetts State Police (MSP) Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Cesan earned $163,533, which included approximately $50,866 in overtime pay. Cesan was paid for overtime shifts that he did not work at all or from which he left early. Cesan concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he did not actually work. He falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts. Cesan admitted collecting $29,287 for overtime hours that he did not work in 2016.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Cesan is the seventh trooper to be sentenced. Last week, former trooper Gary Herman was sentenced to one day in prison (deemed served), one year of supervised release with the first three months to be served in home confinement and restitution of $12,468; in June 2019, retired Lieutenant David Wilson was sentenced to one day in prison (deemed served), two years of supervised release with the first six months to be served in home detention, and restitution of $12,450; suspended Trooper Heath McAuliffe was sentenced to one day in prison (deemed served), one year of supervised release with the first six months to be served in home detention, a fine of $4,000, and restitution of $7,860; in May 2019, suspended Trooper Kevin Sweeney was sentenced to two months in prison, one year of supervised release with the first three months to be served in home detention, a fine of $4,000, and restitution of $11,103; in March 2019, former Trooper Gregory Raftery was sentenced to 90 days in prison, one year of supervised release, and restitution of $51,377; suspended Trooper Eric Chin was sentenced to one day in prison (deemed served), one year of supervised release with three months to be served in home detention, and restitution of $7,125; and retired Trooper Daren DeJong has pleaded guilty and is awaiting sentencing.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit prosecuted the case.
Repeat Drug Trafficker Sentenced to over 15 Years in Prison for Possessing Heroin and Fentanyl Near a SchoolRead the Press Release
A repeat drug trafficker was sentenced June 20, 2019, to more than 15 years in federal prison for possessing heroin laced with fentanyl.
Deandre Joseph Warren, age 33, from Chicago, Illinois, received the prison term after a November 20, 2018, guilty plea to possession with intent to distribute heroin within 1,000 feet of a school.
In a plea agreement, Warren admitted he possessed heroin he planned to distribute within 1,000 feet of a school located in Cedar Rapids, Iowa. Warren was found with the heroin when officers responded to a home in Cedar Rapids due to a noise complaint, where they encountered Warren. Warren dropped multiple bags of heroin and marijuana in an attempt to hide them from officers. Testing later revealed the heroin also contained fentanyl. Warren’s criminal history includes numerous previous drug trafficking offenses and two convictions in 2018 for domestic abuse offenses, including one involving strangulation.
Warren was sentenced in Cedar Rapids by United States District Court C.J. Williams. Warren was sentenced to 188 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Warren is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Drug Enforcement Agency and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-00082.
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Raleigh Man Sentenced to 60 Months for Illegally Possessing a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge Louise W. Flanagan sentenced DEVANTI ALEXANDER ROGERS, 34, of Raleigh to 60 months’ imprisonment, followed by 3 years of supervised released.
On June 6, 2018, ROGERS was named in a one-count Indictment charging him with Possession of a Firearm by a Convicted Felon. On February 12, 2019, ROGERS pled guilty to the charge.
On February 20, 2017, officers of the Raleigh Police Department were dispatched to a motor vehicle wreck in Raleigh. When the officers arrived on scene, they observed DAVANTI ALEXANDER ROGERS walking on the sidewalk and noticed the defendant was not wearing pants.
The officers detained ROGERS and searched his vehicle, which was stalled against a street sign. The search revealed a glass vial containing a residual amount of phencyclidine (PCP), a Schedule II controlled substance, and a .380 caliber handgun, which was loaded with six rounds of ammunition in the magazine. The firearm was reported stolen on February 12, 2017, from a home in Raleigh; however, there is no evidence that the defendant was involved in the theft of the firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement. For more information on this initiative click here https://www.justice.gov/usao-ednc/tbnc
The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, and Firearms and Explosives.
Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Providence Woman Sentenced for Trafficking CocaineRead the Press Release
PROVIDENCE – A Providence woman who was riding as a passenger in a vehicle she owned that was stopped by Rhode Island State Police in February 2017 and found to be carrying five kilograms of cocaine stashed inside a hidden compartment under the rear floor has been sentenced to five years in federal prison for trafficking the cocaine.
Laura G. Martinez, 25, pleaded guilty on October 15, 2018, to conspiracy with intent to distribute 500 grams or more of cocaine, and possession with intent to distribute 500 grams or more of cocaine.
According to information presented to the Court, on February 17, 2017, a Rhode Island State Police trooper stopped Martinez’s vehicle after the driver failed to move out of the left lane of travel, during which the adjacent right lane was free of traffic. The trooper ordered the vehicle towed after it was determined that both the driver and Martinez’s driver’s license had been suspended. During an inventory of the vehicle, troopers discovered numerous aftermarket modifications that had been made to the underside of the vehicle. Further inspection revealed a false floor. A Rhode Island State Police K9 alerted to the presence of narcotics in the area of the false floor. A trap door allowing access to the false floor was opened. Inside, troopers discovered 5.018 kilograms of cocaine.
At sentencing, U.S. District Court Chief Judge William E. Smith sentenced Martinez to 60 months in prison to be followed by 4 years supervised release.
Martinez’s sentence is announced by United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
The case was prosecuted by Assistant U.S. Attorneys Ronald R. Gendron and Dulce Donovan.
The matter was investigated by the Rhode Island State Police and Homeland Security Investigations.
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Prescott Man Sentenced to 9 Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Edward Barzar, age 41, of Presoctt, Arkansas, was sentenced last week to 108 months in federal prison followed by four years of supervised release for one count of Distribution of More Than 5 Grams of Actual Methamphetamine. The Honorable Chief Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, during the course of an investigation into methamphetamine trafficking in the Western District of Arkansas, the 8th North Drug Task Force identified Barzar as a distributor of methamphetamine. In June of 2018, investigators arranged and conducted a controlled purchase of methamphetamine from Barzar. The methamphetamine purchases was sent to the Arkansas State Crime Laboratory where it was confirmed to contain 26.34 grams of actual methamphetamine.
Edward Barzar was indicted by a federal grand jury in October 2018, and entered a guilty plea in December 2018.
This case was investigated by the Federal Bureau of Investigation (FBI), and the 8th North Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Parkway Discount Pharmacy Agrees to Pay Fine and Relinquish DEA License to Resolve Allegations of Controlled Substances Act ViolationsRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Parkway Discount Pharmacy in Longs, South Carolina, has agreed to pay the United States $50,000 and surrender its DEA registration to resolve allegations that it violated the Controlled Substances Act by failing to abide by recordkeeping requirements and filling prescriptions without confirming required information. The pharmacy had been notified previously of recordkeeping violations and failed to make the necessary corrections. DEA registrants have a responsibility to handle controlled substances in a manner that complies with the law.
“Pharmacies have a duty to ensure that they track and dispense controlled substances in compliance with the law,” said U.S. Attorney Lydon. “Doctors and pharmacists are uniquely positioned to assist in preventing the abuse and diversion of controlled substances. Adhering to the basic rules of recordkeeping and prescription review is essential to helping fight the opioid epidemic.”
This matter was investigated by DEA Diversion Investigator Dawn Bauer of the Drug Enforcement Administration and Assistant United States Attorneys Tina Cundari and James Leventis of the Columbia office.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
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Ohio Man Sentenced for Traveling to Meet a Minor for SexRead the Press Release
CHARLESTON, W.Va. – An Ohio man was sentenced today to spend 10 years in federal prison for attempting to entice a minor to engage in illegal sexual activity and traveling in interstate commerce in order to engage in illicit sexual activity with a minor, announced United States Attorney Mike Stuart.
“The message should be clear -- if you try to sexually exploit our children and we find you, we will prosecute you,” said United States Attorney Mike Stuart.
Douglas James Allmon, 51, of Canton, Ohio, previously pled guilty to both charges in January 2019. Allmon admitted that during August and September 2018 he communicated via text message with a minor he believed to be a 14-year-old girl in Parkersburg, West Virginia. During the conversations, Allmon attempted to persuade and entice the minor to meet him in order to engage in sexual intercourse. On September 7, 2018, Allmon traveled from his home in Ohio to Parkersburg, West Virginia, in order to have sex with the minor. Only then did Allmon discover that the minor was actually an undercover law enforcement officer.
Upon his release from prison, he will be required to serve a term of supervised release of 15 years. He will also be required to register as a sex offender.
The investigation was conducted by the West Virginia State Police, the West Virginia States Police Internet Crimes Against Children Task Force, the FBI Violent Crimes Against Children Task Force, and the Parkersburg Police Department. Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. The sentence was handed down by United States District Judge Joseph R. Goodwin.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: @SDWVNews and @USAttyStuart
Neenah Resident Sentenced to 15 Years of Imprisonment for Methamphetamine and Firearm PossessionRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on June 21, 2019, Tou W. Vang, a/k/a “Meng Vang” (age: 38), of Neenah, Wisconsin, was sentenced for violating Title 18, United States Code, Section 924(c) for possessing a firearm in furtherance of a drug trafficking crime, and Title 21, United States Code, Section 841(a), for possessing with the intent to distribute over 50 grams of pure methamphetamine.
According to court documents, on December 20, 2018, Appleton Police initiated a traffic stop on Vang’s minivan. The police pursued Vang to a residence off Wisconsin Avenue in Appleton, where they observed him attempt to hide a 9 mm handgun in the snow behind the residence. While speaking with the officers, Vang informed them that he was “high as a kite” and there was “two pounds of marijuana in the van.” Officers searched the vehicle and in addition to the marijuana, located approximately 100 grams of methamphetamine, $4,001 in cash, digital scales for weighing drugs prior to distribution, and firearm ammunition. A subsequent search of Vang’s residence revealed additional drug paraphernalia, a drug distribution ledger, and several homemade firearm silencers.
In pronouncing sentence, Chief U.S. District Judge William C. Griesbach noted the serious nature of Vang’s offense and the need to send a strong message of deterrence to Vang and anyone else who might attempt to distribute drugs in Northeast Wisconsin. The judge also noted his concern over Vang’s construction of firearm silencers. The judge ordered Vang to serve 10 years for possessing methamphetamine with the intent to distribute and an additional 5 years for possessing a firearm while involved in drug trafficking. Upon his release from federal prison, Vang will serve 5 years on supervised release.
The case was investigated by the Appleton Police Department and the Wisconsin Department of Justice, Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Montgomery County Man Sentenced to 52 Years in Prison for Abuse of Autistic GirlRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that John Brown, 28, of Norristown, Pennsylvania, was sentenced to 52 years imprisonment, lifetime supervised release, a $600 special assessment, and a $25,000 assessment under the Justice for Victims of Trafficking Act by the Honorable Gene E.K. Pratter. The defendant was also ordered to have no contact with the victim or her family for the rest of his life.
In September of 2017, the defendant pleaded guilty to three counts of manufacturing sexually explicit images of his sexual abuse and exploitation of an autistic girl for more than 18 months, one count of distribution of those pornographic images over the Internet to others, and one count of possession of child pornography for his collection of thousands of images and videos of children being sexually abused and assaulted that he downloaded from the Internet.
Brown took part in a twisted plan with his codefendant to manipulate and sexually assault the child victim in this case, who had been diagnosed on the Autism spectrum and suffered from learning disabilities and mental health issues. Brown cut his hair and shaved his face so that he could pose as a teenage boy to dupe the victim into believing he was her boyfriend and gain her trust. As her “boyfriend,” Brown then engaged her in sexual activity, photographed and videotaped her, and distributed the videos and images back to his codefendant. Brown also distributed this child’s images out to others over the Internet dozens of times.
In addition to the child victim in this case, the investigation revealed Brown also had a sexual relationship with two other minor girls, and had been making plans to meet up with the father of an 11-year old girl to have three-way sex with that man’s child.
“Child exploitation is a pervasive problem – made more so by the accessibility of the Internet and digital media – that demands an aggressive response,” said U.S. Attorney McSwain. “The allegations in this case are particularly disturbing because of the defendant’s abuse of a child with learning disabilities and the efforts he took to gain her trust so he could victimize her. We stand ready with our federal and local partners to identify and prosecute those who would prey upon minor children.”
The case was investigated by the FBI, the Willistown Police Department, and the Chester County District Attorney’s Office. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Maryland Man Sentenced to 7 Years for Role in Armed Robbery SpreeRead the Press Release
WASHINGTON – Jharrod Armstrong, 21, of Capitol Heights, Md., was sentenced today to seven years in prison stemming from his role in several armed robberies, announced U.S. Attorney Jessie K. Liu, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Armstrong was found guilty on January 22, 2018, following a plea in the D.C. Superior Court before the Honorable Todd E. Edelman. Armstrong was convicted of one count of armed robbery, one count of attempted robbery, and two counts of carrying a pistol without a license, stemming from three different incidents that occurred in 2016 and 2017. Following his prison term, Armstrong will be placed on three years of supervised release.
On September 16, 2016, law enforcement stopped Armstrong in the 1400 block of Columbia Road, N.W., Washington, D.C and discovered a Glock 23 .40 caliber firearm in his undergarments (case 2016-CF2-15164).
Less than a year later, Armstrong committed two armed robberies on July 2, 2017 (case 2017-CF3-13635). At approximately 12:35 a.m., Armstrong encountered one victim in the 4500 block of Arkansas Avenue N.W., pointing a firearm at him and forcing him to give Armstrong his cell phone and change the phone’s password. Armstrong fled in a recently stolen silver BMW SUV. Less than 10 minutes later, Armstrong pointed a firearm at a different victim in the 1400 block of Fort Stevens Drive, N.W., forcing the victim to hand Armstrong his wallet. Armstrong fled in the same silver BMW SUV. The BMW was located the following day parked in a handicapped parking spot in front of 1127 Girard Street N.W. Inside of the vehicle, law enforcement later located a BMW manual, which had a fingerprint on it that belonged to Armstrong. Armstrong was identified by the first victim through a presented nine-person photo array.
Law enforcement also learned that Armstrong had a pending arrest warrant issued on July 19, 2017, from Prince George’s County, Md. for first-degree murder. MPD apprehended Armstrong on the same day. Police found a Taurus .45 caliber firearm underneath Armstrong’s compression shorts.
In announcing the sentence, U.S. Attorney Liu, and Chief Newsham commended the assistance provided by officers of MPD and the Prince George’s County Police Department. They also acknowledged the efforts of those who prosecuted the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Trafficking Section and Assistant U.S. Attorney Shehzad Akhtar of the Felony Major Crimes Section.
Case Numbers:
17-CF3-13635
17-CF2-12397
16-CF2-15164
Man Who Sought Asylum in United States Arrested for Installing Skimmers on Gas PumpsRead the Press Release
CINCINNATI – Yosbel Ponce Bernal, 26, has been charged with using gas pump skimmers in Butler and Hamilton counties. Ponce is a Cuban national with a Florida address. He was arrested in Louisville, Ky. on Friday.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Butler County Auditor Roger Reynolds announced the charges, which were unsealed Friday.
A skimmer placed inside a gas pump collects credit card information from victims using the pump. The skimmer is installed between the credit card reader and the other internal circuitry of the gas pump. The intended gas purchase will typically proceed without interruption of any kind or any notification to the victim or third party. A single gas station skimmer is capable of storing credit card information for hundreds of victims, and many skimmers are capable of storing approximately thousands of card numbers.
According to an affidavit filed in support of the criminal complaint, in September 2018, the Butler County Auditor’s Office alerted the FBI to a skimmer in Fairfield, Ohio. The auditor’s office removed the skimmer and discovered information stored from 27 credit cards.
In October, camera surveillance of the gas pumps recorded Ponce opening the gas pump door and spending minutes allegedly installing a second skimming device deeper into the gas pump than the first skimmer had been. Ponce is recorded at the pump after midnight; the gas station closed at 11pm.
In November, skimmers were discovered on two gas pumps in Hamilton County. Video surveillance from the Hamilton County location also allegedly depicts Ponce.
Law enforcement officials tested a gas pump for fingerprints and matched two prints to Ponce. Ponce’s fingerprints are on record from previously applying for asylum in the United States.
Using a skimmer is a federal crime punishable by up to 15 years in prison.
"We appreciate the efforts of the FBI and United States Attorney's Office as we work together to combat this criminal activity in the region,” said Butler County Auditor Reynolds.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Butler County Auditor’s Office, and Special Assistant United States Attorney Timothy Landry, who is prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Man Sentenced to Prison for Selling FirearmsRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to five years in prison for selling firearms to a resident of another state.
“Trafficking firearms poses a real danger to the safety of our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern of Virginia. “We will continue to prosecute these types of cases and take illegally sold guns off of our streets and out of the hands of potential criminals.”
According to court documents, Brian Samuels, 21, sold 39 firearms to an undercover agent over the course of approximately four months in 2018. Prior to making controlled purchases of the firearms from Samuels, law enforcement learned that Samuels was searching for a new buyer for his firearms after his original buyer was arrested. As a result, law enforcement introduced an undercover agent to make purchases from Samuels from August through January 2019.
Over the course of those four months, Samuels recruited straw purchasers to acquire firearms he would sell to the undercover agent. He also would seek assistance from others to help complete the sales to the undercover agent by delivering the firearms. These firearms included multiple AK pistols, AR pistols, extended magazines with 30-60 round capacities, and stolen firearms. In February, ATF and other assisting law enforcement agencies executed a search warrant at Samuels’s home and located an additional 14 firearms, bringing the total to 53. As a part of the criminal sentencing, Samuels forfeited all 53 firearms to the United States.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Stephen E. Anthony and Janet Jin Ah Lee prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-34.
Macy Man Sentenced for Sexual Abuse of a Minor and Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Lavery Sheridan, 25, of Macy was sentenced in federal court for the sexual abuse of a minor and for receiving child pornography. Senior United States District Court Judge Laurie Smith Camp sentenced Sheridan to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Sheridan will begin a 5-year term of supervised release and will be required to register as a sex offender.
Sheridan friended a 14-year-old on Facebook. They exchanged pictures. One of the pictures received by Sheridan from the juvenile was sexually explicit. They agreed to meet in person and engaged in conduct of a sexual nature.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation.
MS-13 Member Apprehended After Being Placed on FBI’s 10 Most-Wanted Fugitives List Admits Murdering Union County Man as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – An MS-13 member previously named one of the FBI’s 10 Most Wanted Fugitives today admitted killing a Plainfield, New Jersey, man on behalf of the gang, and agreeing that a conspirator would commit multiple violent acts for the gang, U.S. Attorney Craig Carpenito announced.
Walter Yovany-Gomez, a/k/a “Cholo,” 35, who was a fugitive residing in the Maryland/Virginia area from 2011 to 2017, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of racketeering conspiracy.
According to documents filed in this and other cases and statements made in court:
In September 2013, a Newark grand jury indicted Yovany-Gomez for murder in aid of racketeering and conspiracy to commit murder in an indictment that charged 14 members of Plainfield Locos Salvatrucha (PLS), a New Jersey branch of the Mara Salvatrucha (MS-13) transnational gang, with various gang-related offenses. The charges against Yovany-Gomez focused on the May 2011 murder of Julio Matute, whom law enforcement officers discovered beaten and stabbed to death in Matute’s Plainfield apartment. Yovany-Gomez fled New Jersey after officers went to Yovany-Gomez’s residence to question him.
In April 2017, the FBI placed Yovany-Gomez on its 10 Most Wanted Fugitives List. On Aug. 12, 2017, he was arrested without incident in Woodbridge, Virginia, based on tips received from the public.
Between 2014 and 2016, all 13 of Yovany-Gomez’s co-defendants charged in the September 2013 federal indictment were convicted, including eight MS-13 members who were convicted following a 16-week trial that ended in June 2016.
In May 2011, MS-13 leaders, members, and associates, including Yovany-Gomez, plotted to murder Matute, a PLS recruit, because they believed Matute had been socializing with rival gang members.
On May 8, 2011, Yovany-Gomez and fellow MS-13 member Cruz Flores, a/k/a “Bruja” traveled to Matute’s Plainfield apartment to carry out the murder, meeting Matute and another individual at the residence. After consuming alcohol and controlled substances with the other three individuals, Matute retired to his bedroom to sleep. When Matute attempted to leave the apartment several hours later for work, Yovany-Gomez and Flores assaulted and killed Matute. During the attack, Yovany-Gomez and Flores struck Matute in the head with an aluminum baseball bat, sliced Matute’s throat with a knife, and stabbed Matute in the back 17 times with a screwdriver. Yovany-Gomez and Flores threatened to harm the individual who witnessed the murder if that person went to the police.
Several weeks after the murder, officers went to question Yovany-Gomez at his residence. When they knocked on his door, Yovany-Gomez jumped out of a second-floor window and fled. PLS members and associates later drove Yovany-Gomez to the Maryland/Virginia area so he could avoid being arrested and prosecuted in connection with the murder. Yovany-Gomez remained in the Maryland/Virginia area until his arrest in August 2017, adopting an alias to further avoid law enforcement detection.
Flores was found guilty of the murder during the trial described above.
In addition to the Matute murder, Yovany-Gomez agreed as part of the racketeering conspiracy that another conspirator would commit multiple acts of violence on behalf of MS-13.
The charge of racketeering conspiracy carries a maximum sentence of life imprisonment and a $250,000 fine. A plea agreement between the government and Yovany-Gomez calls for Yovany-Gomez to serve an agreed-upon sentence of 25 years in prison if it accepted by the court, at which point the government will dismiss the remaining charges in the 2013 federal indictment against Yovany-Gomez. Sentencing is scheduled for July 31, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and officers of U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Newark Field Office Director John Tsoukaris. He also thanked the Union County Prosecutor’s Office, under the direction of First Assistant Attorney General and Acting Prosecutor Jennifer Davenport, for its assistance. The FBI Washington Field Office’s Violent Crimes Task Force, the Fairfax County Police Department’s Gang Unit, and the Northern Virginia Gang Task Force coordinated the local search for and arrest of Yovany-Gomez. U.S. Attorney Carpenito also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland for their assistance in the ongoing investigation.
The government is represented by Senior Trial Counsel Jamari Buxton and James Donnelly, Chief of the Violent Crimes Unit of the U.S Attorney’s Office Criminal Division in Newark.
Defense counsel: Stacy A. Biancamano Esq., Cranford, New Jersey
Luzerne County Man Convicted of Drug Distribution Resulting in Death of Pregnant Woman and Unborn FetusRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Luis Antonio Zayas, age 48, of Hazleton, Pennsylvania, was convicted on June 21, 2019, for drug distribution resulting in death after a four-day trial before United States District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, the jury returned with the guilty verdict in less than an hour of deliberation. The evidence showed that Zayas sold what he believed to be heroin to the victim on July 6, 2016. In reality, the drug was 100 percent fentanyl, a powerful synthetic opioid painkiller. The victim, who was 33 weeks pregnant at the time, overdosed and died. Toxicology results showed that both the mother and unborn fetus died from lethal levels of fentanyl in their systems. Zayas arranged the drug deal with the victim via text messages and proclaimed at one point that he had “damm good shit….good enough to get way higher than intended lol.”
As a result of the conviction, Zayas faces up to life imprisonment.
The case was investigated by the Drug Enforcement Administration in Scranton, and the Pennsylvania State Police. Assistant United States Attorneys Michelle Olshefski and Jenny Roberts prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
his case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Louise Larivee Pleads Not Guilty to Non-Profit EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Louise Larivee, 60, of Swanton, pleaded not guilty today in United States District Court in Burlington to federal fraud charges. U.S. Magistrate Judge John M. Conroy released Larivee on conditions pending trial, which has not been scheduled.
On June 13, 2019, a federal grand jury in Burlington returned a two-count indictment charging Larivee with conspiracy and federal program embezzlement. According to the indictment, between 2013 and 2017, Larivee was employed by the Abenaki Self Help Association, Inc. as the director of a federal grant program administered by the U.S. Department of Labor. ASHAI functioned as a service arm of the Abenaki Nation, promoting economic and social development through programatic efforts in education, employment and economic development. Each year, ASHAI received tens of thousands of dollars in grant money from the Department of Labor. During that same period, Candy Thomas worked at ASHAI as an office worker and bookkeeper. Thomas had check signing authority on ASHAI’s bank accounts.The indictment charges that between 2013 and 2017, Larivee and Thomas conspired to embezzle, and did embezzle, more than $100,000 from ASHAI. Thomas aided the commission of this theft by issuing checks and giving cash to Larivee, at Larivee’s request, in amounts that significantly exceeded Larivee’s authorized compensation. Larivee also allegedly received travel reimbursement checks based upon fraudulently inflated mileage claims. Thomas helped cover up this fraud by sending tax forms to the Internal Revenue Service that concealed the true amount of ASHAI funds that were being paid over to Larivee.
Thomas has already pleaded guilty to related charges and is awaiting sentencing.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that Larivee is presumed innocent unless and until she is proven guilty.
If convicted, Larivee faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Department of Labor’s Office of Inspector General.
Larivee is represented by David Kirby, Esq. Candy Thomas is represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Knox, Indiana Man Charged with Distribution of Opioids and TestosteroneRead the Press Release
HAMMOND- Michael Henry Minix, age 44, of Knox, Indiana, was charged in a 6 count Indictment with distribution of and possession with intent to distribute schedule II and III narcotics, announced U.S. Attorney Kirsch.
The Indictment alleged that, beginning in August 2017 through May 2019, Minix distributed Oxycodone, a schedule II controlled substance, as well as Testosterone, Dianabol, and Metandienone, all of which are schedule III controlled substances. The Indictment also alleges that Minix possessed Testosterone with the intent to distribute.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Drug Enforcement Administration, Indiana State Police and the Marshall County Drug Task Force. This case is being prosecuted by Assistant United States Attorney Jennifer Chang.
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Justice Department and Dillard University Agree to Renewal and Extension of Settlement AgreementRead the Press Release
NEW ORLEANS - The United States Attorney for the Eastern District of Louisiana announced today the renewal and extension of a settlement agreement with Dillard University, a Historically Black College and University in New Orleans, Louisiana, under Title III of the Americans with Disabilities Act (ADA) and the Rehabilitation Act of 1973.
The settlement agreement consummates a 17-year effort to resolve a compliance review of the campus that devolved from a complaint lodged against Dillard regarding an inaccessible building. The campus-wide compliance review revealed that most of the buildings and facilities were not accessible to people with mobility impairments. The original 2002 settlement agreement the parties entered into called for self-surveying by Dillard of all of the inaccessible features of its campus and the formulation and funding of a plan to remediate them. Due to financial difficulties and the near destruction of the campus by Hurricane Katrina, the university was afforded extensions of time to fulfill the terms of the original settlement.
In 2016, the U.S. Attorney’s Office, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, conducted another campus-wide survey to determine the accessibility of the Dillard campus. After receiving the results of the updated survey, Dillard made a vigorous and sincere commitment to making its campus fully accessible. With the aid of qualified ADA architects, Dillard devised a remediation plan with DOJ approval and identified funding to fulfill the plan within two years. Even prior to signing the settlement agreement, Dillard advertised and awarded the contract for the requisite renovations with work scheduled to begin during the summer of 2019.
Once the remediation plan is completed, Dillard will be one of only three HBCUs in the country with a fully accessible campus.
The ADA protects individuals with disabilities from discrimination by public accommodations, including colleges and universities, in their full and equal enjoyment of goods, services and facilities. More information about the ADA and be found at www.ada.gov . Further inquiries about this settlement or regarding any other disability access issue can be pursued by contacting the U.S. Attorney’s Office at (504) 680-3000.
Jacksonville Man Indicted for Federal Firearm and Drug ViolationsRead the Press Release
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Cornelius Michael Turner (32, Jacksonville) with possessing a firearm as a convicted felon, possession with the intent to distribute cocaine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted, Turner faces a mandatory minimum penalty of 20 years, and up to life, in federal prison.
According to court documents, during a traffic stop conducted by the Jacksonville Sheriff’s Office, officers observed Turner in his vehicle stuffing things down his pants. During a subsequent pat down, a loaded firearm and cocaine were recovered from Turner’s pants. At the time, Turner had multiple prior felony drug convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Ashley Washington and Kelly Karase.
Project Safe Neighborhoods (PSN) 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. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Indianapolis Man Sentenced for Pharmacy RobberyRead the Press Release
United States Attorney Joe Kelly announced that Senior U.S. District Judge Laurie Smith Camp sentenced Daewoo Robertson, 19, today to 9 years in federal prison to be followed by 5 years of supervised release. Robertson was also ordered to pay $61,154.00 in restitution. Robertson previously pleaded guilty to a Hobbs Act robbery; that is, robbing a business involved in interstate commerce, brandishing a firearm during the robbery, and robbery involving controlled substances.
On October 28, 2018, at approximately 9:33 am, Robertson, Billy Adell and Otis Brown, III robbed the CVS Pharmacy, 1701 Galvin Road South, Bellevue, Nebraska at gunpoint. Robertson, Adell and Brown are from Indianapolis and drove to Bellevue to commit the robbery. Adell was the driver. Robertson and Brown went into the store. Robertson was armed with a Glock .40 caliber handgun that he pointed at employees and a customer while he and Brown zip-tied them. Robertson and Brown fled the store in Adell’s waiting vehicle, with $60,196.50 in controlled substances. They were caught shortly thereafter when their car was stopped. Officers searched the car and found the gun, zip-ties, and a garbage bag with the stolen drugs. Once the drugs leave the store, they cannot be taken back and resold by CVS and have to be destroyed.
Adell and Brown are pending trial currently set for August 6, 2019.
The FBI Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives, is responsible for the investigation of the robbery. The task force was assisted by the Bellevue Police Department.
Hyannis Woman Sentenced for Smuggling CocaineRead the Press Release
BOSTON – A Hyannis woman was sentenced today to time served for her role in a cocaine smuggling conspiracy.
Cristina M. Delle Femine, 29, was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served (three weeks) and three years of supervised release. The government recommended 12 months incarceration. In February 2019, Delle Femine pleaded guilty to one count of conspiring to import cocaine and one count of conspiring to possess with intent to distribute cocaine. Delle Femine was arrested in Maine on Oct. 23, 2017, and appeared in federal court in Springfield later that month.
Around May 2017, Delle Femine conspired to import cocaine into the United States from Jamaica and conspired to possess with the intent to distribute cocaine. Delle Femine recruited another individual to travel with her to Jamaica and paid for the individual’s flights and hotel. When in Jamaica, Delle Femine convinced her recruit to ingest and insert vaginally individually wrapped packets of cocaine to smuggle into the United States. Delle Femine also smuggled cocaine by carrying it within her body. Once in the United States, the individual Delle Femine recruited had trouble passing the cocaine packets through her system and was rushed to the hospital to have the packets surgically removed.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office prosecuted the case.
Hampden Man Pleads Guilty to Credit Union RobberyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ronald Tilley, 59, of Hampden, Maine, pleaded guilty today in U.S. District Court to robbing a credit union.
According to court records, on March 27, 2019, the defendant entered the back door of the Down East Credit Union in Bangor, Maine. He was wearing a dark mask covering his mouth, a hooded sweatshirt, sunglasses, and dark gloves. The defendant demanded money from the tellers, and stated that he had a gun and would shoot if they did not comply. The defendant obtained more than $8,700. A search warrant executed at the defendant’s residence in Hampden, Maine revealed cash stolen from the credit union. The defendant was subsequently apprehended by law enforcement in Connecticut and confessed to the robbery.
The defendant faces up to 20 years imprisonment and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Bangor Police Department, the Hampden Police Department and the FBI.
Georgetown Man Sentenced to 15 Years for Inducing Minors to Produce Child PornographyRead the Press Release
LEXINGTON, Ky. – A Georgetown man, Bobby Cassady, 32, has been sentenced to 15 years in federal prison, to be followed by a life term of supervised release for inducing minors to produce sexually explicit images. Cassady was also ordered to make a restitution payment in the amount of $ 15,000.00 and pay a mandatory special assessment of $5,100.00.
On Monday, United States Senior District Judge Joseph M. Hood formally sentenced Cassady, who pleaded guilty to a single count of production of sexually explicit images in interstate commerce, on February 4, 2019. Cassady must serve 85 percent of his prison sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven Igyarto, Special Agent in Charge, Department of Homeland Security – Homeland Security Investigations (DHS-HSI); Tony Gray, Chief of Police of the Danville, Kentucky Police Department; and Andy Beshear, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by the Cyber Crimes Branch of the Office of Attorney General of Kentucky, the Danville Police Department and DHS-HSI. The United States was represented by Assistant United States Attorney David Marye.
Former Sacramento Kings Executive Sentenced to 7 Years in Prison for Multimillion Dollar Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Jeffrey R. David, 44, was sentenced today by U.S. District Judge William B. Shubb to seven years in prison for wire fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “David used his high-ranking position with the Sacramento Kings to deceive businesses across the country into sending him millions of dollars. The brazen scheme involved forgeries, stolen corporate executive identities, money laundering, and even instructing a former colleague to destroy evidence. Thanks to the fast actions of the Kings organization, the FBI, and attorneys in this office, the fraud did not result in the permanent deprivation of the $13.4 million that David intended to steal from his victims, as that money was recovered through timely government seizures and forfeitures. Today’s sentence should deter others from committing substantial frauds such as this one.”
“Mr. David violated the trust of his employer and clients, siphoning millions from agreements to fund purchases he could not otherwise afford. Asset forfeiture of real estate purchased with the misappropriated funds was able to restore the losses the organization suffered as a result of Mr. David’s crimes but trust is much more difficult to repair,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This case exemplifies the FBI’s commitment to investigating large-scale financial fraud to ensure the integrity of financial transactions and ensure that those who commit greed-fueled financial crime face justice.”
According to court documents, David served as the Chief Revenue Officer for the Sacramento Kings, a professional sports franchise. As part of his duties, he negotiated sponsorship and other marketing agreements with companies in California and elsewhere. From October 2012 through July 2016, David used this position to defraud these companies by representing to them that payments they made were going to the Kings, when in fact the payments were going to bank accounts under his sole control, held in the name of Sacramento Sports Partners LLC. The Kings did not know about these payments or this LLC at the time the payments were solicited and made. In total, David stole approximately $13.4 million from five companies in California and elsewhere.
In particular, David took advantage of the King’s opening of a new stadium by amending, without the franchise’s knowledge, two major sponsorship agreements from the Golden 1 Credit Union and Kaiser Permanente, a nonprofit health care plan, so that $9 million and $4.4 million wires from these entities went to accounts controlled by David, rather than the Kings. In order to accomplish this fraud, David forged the signatures of various individuals, including the then-president of the Kings, the president and chief executive officer of the Golden 1, and an executive at Kaiser Permanente.
David used the fraud proceeds to purchase and remodel real estate in Hermosa Beach and Manhattan Beach, in Southern California. He also spent the fraud proceeds on various personal expenses, including checks to family members, a private jet membership, and substantial credit card bills. The United States moved to forfeit and seize these properties and other assets held by David, and the professional sports franchise has received over $13.2 million in restitution to date.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael D. Anderson, Matthew M. Yelovich, and Kevin C. Khasigian are prosecuting the case.
Former Professional Trustee of Sacramento-based Trust Pleads Guilty to Fraud and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Loretta Darlene Stewart-Cabrera, also known as Loretta Dexter, 54, of Sacramento, pleaded guilty today to wire fraud and money laundering, U.S. Attorney McGregor W. Scott announced.
According to court documents, Stewart-Cabrera was a professional fiduciary who served as the trustee of a trust that owned a Sacramento property. After the trust grantor died in December 2012, Stewart-Cabrera executed a scheme to obtain and spend the trust assets. Stewart-Cabrera did this by selling the trust’s property, only distributing to the trust beneficiaries approximately $30,000 of the more than $300,000 she received from the sale of the property, and spending the remaining money without the permission or knowledge of the trust beneficiaries. She used a portion of the trust funds to gamble and dine in Las Vegas casinos, pay family members, and purchase merchandise.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Stewart-Cabrera is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on September 9. Stewart-Cabrera faces a maximum statutory penalty of 20 years in prison and fine of $250,000 for the wire fraud count; for the money laundering count, she faces a maximum statutory penalty of 10 years in prison, and a fine of $250,000 or twice the value of the property involved in the money laundering transactions. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Private Prisoner Transport Officer Pleads Guilty to Sexually Assaulting an Individual During a TransportRead the Press Release
James Baldinger, 51, a former private prisoner transport officer with the Prisoner Transportation Services of America LLC. (PTS), pleaded guilty today in federal court in Albuquerque, New Mexico, to one count of violating the civil rights of a female in his custody whom he sexually assaulted during a transport.
According to court documents, Baldinger worked as a transport officer for PTS, a private prisoner extradition company that contracts with government agencies to transport individuals arrested on out-state-warrants to the extraditing jurisdiction. On or about July 11-12, 2017, during a transport from Kentucky to Bernalillo County, New Mexico, Baldinger sexually assaulted a female who was in his custody. Specifically, he touched her while she was restrained and without her consent. As a result of Baldinger’s conduct, the victim suffered pain and injury. Baldinger admitted that he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate officers who abuse their positions of power to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these despicable crimes.”
“This defendant exploited his authority over this vulnerable victim and deprived her of her Constitutional rights,” said U.S. Attorney John C. Anderson. “Today’s guilty plea demonstrates that the U.S. Attorney’s Office will hold those who violate prisoners’ civil rights accountable to the fullest extent of the law.”
The defendant was remanded into custody when he entered his guilty plea.
This case is being investigated by the Albuquerque Division of the FBI and the New Mexico State Police. It is being prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Civil Rights Division of the U.S. Department of Justice, as well as Assistant United States Attorney Shaheen Torgoley, formerly of the District of New Mexico and Assistant United States Attorney Kimberly Brawley, of the District of New Mexico.
Former President of Oregon Foster Care Agency Sentenced to Federal Prison for Theft, Money Laundering and Tax EvasionRead the Press Release
PORTLAND, Ore.—Mary Holden Ayala, 59, of Portland, was sentenced today to 33 months in federal prison and three years’ supervised release for stealing over $1 million from an Oregon foster care agency, money laundering and filing false personal income tax returns.
On February 7, 2019, after eight days of trial, Ayala was convicted by a federal jury in Portland on five counts of theft concerning programs receiving federal funds, two counts of engaging in monetary transactions in criminally derived property and seven counts of filing a false federal tax return.
From at least 2008 to 2015, Ayala, a longtime Portland resident, served as the President, Executive Director and primary agent of Give Us This Day (GUTD), a private foster care agency and residential program for youth.
“Mary Holden Ayala was responsible for protecting and caring for children in Oregon’s foster care system. Instead she callously stole from them,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Stealing from vulnerable children she was entrusted to serve with taxpayer money is a despicable act and warrants severe consequences.”
“Foster children have already lost almost everything—their parents, their homes, their sense of security. Mary Holden Ayala took from them the last thing they had—faith in a foster care system that is supposed to give them a chance at a better life. To steal from society’s most vulnerable children to enrich yourself is simply unconscionable,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
“Mary Ayala’s crimes include stealing funds intended to provide support for juvenile foster kids entrusted in her care, spending the funds selfishly on a luxurious lifestyle, and then hiding her personal use of the funds by filing false tax returns,” said IRS Criminal Investigation Special Agent in Charge Justin Campbell. “Today’s sentence holds Ayala accountable. IRS Criminal Investigation is proud to work with our partners and investigate those who steal from the most vulnerable in our society.”
“Stealing money meant to pay for foster care expenses is reprehensible,” said Special Agent in Charge Steven Ryan of the HHS Office of Inspector General. “Such greed-fueled fraud can impact those in need and cheats taxpayers; however, today’s sentence shows that our hardworking investigators and law enforcement partners are committed to making sure criminals are held accountable for their actions.”
According to court documents, since its inception in 1979, GUTD was primarily funded by the Oregon state and federal government for foster care services including hiring and screening foster parents for community placements, compensating foster parents for services and placing foster children in residential or group homes. GUTD federal funding originated from the Administration for Children and Families, a division of the U.S. Department of Health and Human Services, and was administrated by ODHS.
From 2009 through 2015, Ayala exercised sole and complete control over GUTD finances. No other GUTD employee or board member had access to the organization’s bank accounts or statements during this time. With no internal controls in place, Ayala wrote checks, used the GUTD debit card and withdrew cash at will, using the organization’s bank accounts as her own.
Ayala used the money stolen from GUTD to pay her mortgage, remodel her home and fund other retail, travel and transportation expenses. Additionally, she used the money to fund other, non-GUTD business ventures including a media company, Big Mary’s fish and ribs restaurant in Portland, and to purchase and flip a commercial property.
In total, Ayala stole over $1 million from GUTD. As a result, her employees, foster parents and foster children in GUTD’s care suffered. GUTD residential house managers complained about a lack of basic necessities, including but not limited to food, toiletries and cleaning supplies.
In 2015, the day after Ayala resigned her position at GUTD, she filed five false federal income tax returns for tax years 2009 through 2013. Shortly thereafter, she filed a sixth false return for tax year 2014. Ayala failed to file a tax return in 2015.
During sentencing, U.S. District Court Judge Marco A. Hernandez ordered Ayala to pay $239,192 in restitution to the IRS and $1,025,235 to satisfy a forfeiture money judgement. The court also forfeited to the U.S. more than $451,000 in net proceeds from the sale of a commercial property on NE Martin Luther King Boulevard in Portland that Ayala purchased with stolen GUTD funds.
In a superseding indictment returned on May 3, 2017, a federal grand jury in Portland charged Ayala with five counts of theft concerning programs receiving federal funds, one count of concealment of money laundering, one count of failure to file a personal federal tax return and two counts each of engaging in monetary transactions with criminally derived property and filing a false personal federal tax return. The government dropped the concealment of money laundering charge prior to trial.
This case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General and IRS-Criminal Investigation. It was prosecuted by Donna Maddux, Clemon Ashley and Julia Jarrett, Assistant U.S. Attorneys for the District of Oregon.
Former Partner of Manhattan Accounting Firm Pleads Guilty to Fraud ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that STEVEN L. HENNING, a certified public accountant who was a partner at a Manhattan accounting firm, pled guilty today to participating in two wire fraud schemes. In the first, he falsely claimed to have entered into multimillion-dollar intellectual property deals and defrauded investors out of $2 million. In the second, he falsely claimed to have entered into client engagements and defrauded an employer out of over $270,000.
U.S. Attorney Geoffrey S. Berman said: “Steven Henning admitted today that he defrauded investors and then continued committing crime by defrauding an employer who hired him after he left his partnership at a Manhattan accounting firm. Through the frauds, he stole over $2.2 million. He will now have to answer for his actions.”
According to the Information filed today to which HENNING pled guilty, as well as other public information, HENNING, a CPA at a Manhattan accounting firm, established his own firm called OpportunIP, which he allegedly told victims was a company specializing in assisting other entities in taking intellectual property to the market. Henning induced victims to invest in OpportunIP by providing them with false documents showing OpportunIP’s involvement in multi-million dollar transactions that would reap millions of dollars in future profits. Ultimately, the victims learned that the deals did not exist and they were victims of an alleged scheme to defraud them out of millions of dollars.
As further alleged in the information, after leaving the Manhattan accounting firm, HENNING sought employment with a firm in Chicago, Illinois (the “Chicago Firm”). He induced the Chicago firm to hire him and provide him with $240,000 in draw payments based on false and fraudulent statements, including by sending the Chicago Firm fraudulent contracts.
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HENNING, 58, pled guilty to two counts of wire fraud, which carry a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Sentencing before Judge Cathy Seibel has been scheduled for October 18, 2019.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the U. S. Postal Inspection Service and the SEC Office of Inspector General.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Margery B. Feinzig is in charge of the prosecution.
Former Emergency Medical Technician Sentenced to 19 Years for Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Bryan Matthew Cooney (30, Casselberry) to 19 years in federal prison, to be followed by 30 years of supervised release, for possession of child pornography. The court also ordered Cooney to forfeit a cellphone, which was used in furtherance of the commission of the offense.
According to court records, from September 19 through September 27, 2018, Cooney chatted with an FBI undercover agent (UC) though a social media application about sexually exploiting a 12-year-old girl, who Cooney alleged was his daughter. During the chats, Cooney shared clothed images of the child with the UC and alleged to have had sexually abused and produced images of the girl engaged in sexually explicit conduct.
On October 30, 2018, FBI agents executed a search warrant at Cooney’s residence and interviewed him. Cooney admitted that he was the person chatting with the UC about sexually exploiting a 12-year-old child, who was actually his friend’s daughter. Cooney indicated that he obtained images of the girl from his friend’s Facebook page and shared them with the UC during chats. Cooney said that he had been viewing child pornography for the past four of five years and gave the agents access to his Dropbox account, where they found hundreds of videos and numerous images of child pornography. The images depict bestiality and other acts of sadistic conduct against children between the ages of 4 and 10.
Additionally, in a subfolder, Cooney had images of his Facebook friend’s daughters. Cooney had posted some of those images on a social media application while pretending that one of the children was his alleged 12-year-old daughter. Cooney did this in an effort to obtain images of child pornography from other online users. The subfolder was identified with the child’s real name.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Former City of Chicago Alderman Sentenced to a Year in Prison for Using Charitable Funds to Pay Personal ExpensesRead the Press Release
CHICAGO — Former City of Chicago Alderman WILLIE B. COCHRAN was sentenced today to a year and a day in federal prison for pocketing money from a charitable fund intended to help families and children in his South Side ward.
Cochran, 67, of Chicago, pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Jorge L. Alonso imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The FBI initiated the investigation after receiving information from the former City of Chicago Legislative Inspector General’s Office, which was headed at that time by Faisal Khan. The government is represented by Assistant U.S. Attorneys Heather McShain and Christopher Stetler.
While representing the 20th Ward in the Chicago City Council, Cochran operated the “20th Ward Activities Fund,” which he purported to use for charitable endeavors to help families and children living in the ward. Cochran controlled a bank account connected to the fund. When soliciting donations to the fund, Cochran falsely represented that all contributions would be used for charitable events, including a back-to-school picnic, a Valentine’s Day party for senior citizens, and events during the holiday season in November and December.
Cochran admitted in a plea agreement that he used some of the contribution money for his own personal use, including paying his daughter’s college tuition, withdrawing cash at casino ATMs, and purchasing items for his home. From January 2010 to April 2014, Cochran pocketed approximately $14,285 from the fund and converted the money to his own personal use, the plea agreement states.
Florence Assistant U.S. Attorney Receives DOJ Office of the Inspector General AwardRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that the Department of Justice Office of the Inspector General (OIG) has presented Assistant United States Attorney A. Bradley Parham with an award for his outstanding contributions to the mission of the OIG. Parham, who has been an Assistant U.S. Attorney in the District of South Carolina since 1997, has worked hand-in-hand with the DOJ OIG since approximately 2006 on investigations and cases involving the Federal Correctional Institutions in Bennettsville and Williamsburg. In partnership with the OIG, he has prosecuted correctional officers for a range of offenses, including public corruption and the possession and distribution of narcotics and contraband.
“For 22 years, Brad has fought to ensure the law is enforced fairly, diligently, and justly,” said U.S. Attorney Lydon. “Like the Office of the Inspector General, we are proud of his excellent work rooting out public corruption and holding accountable federal employees in the District of South Carolina.”
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Federal Grand Jury Indicts Marrero Man for Drug and Firearm ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Thursday, June 20, 2019 that OLIN D. GRANT, JR., age 22, a resident of Marrero, Louisiana was charged in a four-count indictment by a federal grand jury. In count one, GRANT is charged with possession with the intent to distribute a quantity of a mixture or substance containing a quantity of marijuana. In count two, GRANT is charged with possession of firearms in furtherance of a drug trafficking offense. In count three, GRANT is charged with possession of a machine gun; and in count four, GRANT is charged with possession of a non-registered firearm.
If convicted of count one, GRANT faces a maximum sentence of 5 years of imprisonment, a fine up to $250,000.00, a period of supervised release up to 2 years, and a mandatory assessment fee of $100.00. If convicted of count two, GRANT faces a mandatory minimum term of imprisonment of 5 years, to run consecutive to any other sentence imposed, a fine up to $250,000.00, a period of supervised release up to 5 years, and a mandatory special assessment of $100.00. As to counts 3 and 4, GRANT faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, then Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.
The case was investigated by the Jefferson Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Melissa Bücher and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Federal Court Bars Florida Tax Return Preparer and Businesses from Preparing Tax ReturnsRead the Press Release
A federal court in Orlando, Florida, entered a permanent injunction against Lakeesha Tucker, Lakeesha Tucker LLC, and Simplified Financial Services LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today.
The court previously entered a judgment against all three defendants for $1,628,046.50, after an earlier order stated that this amount was a reasonable approximation of defendants’ ill-gotten gains they received for the preparation of tax returns.
In its complaint, the government alleged that the defendants prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit. Among the misconduct alleged, defendants reported phony business-related income and expenses, and job-related expenses, and claimed false education credits and charitable contributions.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Former Private Prisoner Transport Officer Pleads Guilty to Sexually Assaulting an Individual During a TransportRead the Press Release
WASHINGTON – James Baldinger, 51, a former private prisoner transport officer with the Prisoner Transportation Services of America LLC. (PTS), pleaded guilty today in federal court in Albuquerque, New Mexico, to one count of violating the civil rights of a female in his custody whom he sexually assaulted during a transport.
According to court documents, Baldinger worked as a transport officer for PTS, a private prisoner extradition company that contracts with government agencies to transport individuals arrested on out-state-warrants to the extraditing jurisdiction. On or about July 11-12, 2017, during a transport from Kentucky to Bernalillo County, New Mexico, Baldinger sexually assaulted a female who was in his custody. Specifically, he touched her while she was restrained and without her consent. As a result of Baldinger’s conduct, the victim suffered pain and injury. Baldinger admitted that he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate officers who abuse their positions of power to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these despicable crimes.”
“This defendant exploited his authority over this vulnerable victim and deprived her of her Constitutional rights,” said U.S. Attorney John C. Anderson. “Today’s guilty plea demonstrates that the U.S. Attorney’s Office will hold those who violate prisoners’ civil rights accountable to the fullest extent of the law.”
The defendant was remanded into custody when he entered his guilty plea.
This case is being investigated by the Albuquerque Division of the FBI and the New Mexico State Police. It is being prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Civil Rights Division of the U.S. Department of Justice, as well as Assistant United States Attorney Shaheen Torgoley, formerly of the District of New Mexico and Assistant United States Attorney Kimberly Brawley, of the District of New Mexico.
Ex-L.A. County Sheriff’s Deputy Sentenced to One Year in Federal Prison for Lying to FBI as Part of Cover-Up of Attack on Jail VisitorRead the Press Release
LOS ANGELES – A former deputy with the Los Angeles County Sheriff’s Department was sentenced today to 12 months in federal prison for lying to FBI agents about the beating of a handcuffed man that took place in 2011 at Men’s Central Jail in downtown Los Angeles.
Byron Dredd, 37, was found guilty by a federal jury in January of making false statements to the FBI. He was sentenced by United States District Judge Dale S. Fischer, who said that Dredd’s conduct was egregious because it was part of a cover-up and supported false criminal charges against the victim.
According to evidence presented at Dredd’s four-day trial earlier this year, Dredd and five other deputies were assigned to the Visiting Center at Men’s Central Jail. On February 26, 2011, the victim went to the jail to visit his brother, who was in custody. Deputies handcuffed the victim and brought him to an employee break room because they suspected he was in possession of a mobile phone. Deputies then beat the victim, who remained defenseless with his arms handcuffed behind his back the entire time. Dredd witnessed the unjustified beating through a window from an adjacent room. As a result of false reports authored by Dredd and other deputies, the victim was charged with several crimes, including resisting an officer and battery. These charges later were dismissed.
After the FBI opened a civil rights investigation into the assault, Dredd lied to the FBI during an interview on July 17, 2012. Dredd falsely told the FBI that the victim was the aggressor, that he saw the victim take a swing at a deputy, that the victim tried to push past a deputy in an attempt to escape, and that he saw the victim punch a deputy in the chest.
In a previous trial in 2016, a jury was unable to reach a unanimous verdict against Dredd on the false statements. At that trial, Dredd was also acquitted of conspiring to violate the victim’s civil rights and obstructing a federal investigation.
Previously in this investigation, five deputies who participated in the beating and cover-up of the handcuffed victim were convicted and sentenced to prison, including former Sergeant Eric Gonzalez, who is serving an eight-year prison term after being found guilty of violating the victim’s civil rights and falsifying reports.
This case was investigated by the FBI, and is the last in a series of cases resulting from a larger investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. A total of 22 members of the Los Angeles County Sheriff’s Department were convicted of federal charges.
This matter was prosecuted by Assistant United States Attorneys Veronica Dragalin and Agustin D. Orozco of the Public Corruption and Civil Rights Section.
East Hartford Man Sentenced to 10 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER PEDRAZA, 28, of East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, Pedraza promoted the prostitution of a 16-year-old girl by advertising the victim’s prostitution services and soliciting clients on Backpage.com. In March 2017, he harbored the victim in motel rooms he rented in Hartford, Windsor and East Windsor, where clients met the victim and paid for sex acts. Pedraza also had sexual contact with the victim.
The investigation also revealed that, between September and December 2016, Pedraza engaged in sex trafficking of at least two 18-year-old females.
Pedraza has been detained since his arrest on May 26, 2017. On February 11, 2019, he pleaded guilty to one count of sex trafficking of a minor.
This investigating was conducted by the Federal Bureau of Investigation and the East Windsor Police Department, through the Connecticut Human Trafficking Task Force. The case was prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Sarala V. Nagala.
Drug Company Sales Rep Sentenced for Role in Kickback Scheme Related to Fentanyl Spray PrescriptionsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NATALIE LEVINE, 35, of Scottsdale, Arizona, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to five years of probation for engaging in a kickback scheme related to fentanyl spray prescriptions. Judge Arterton also ordered Levine to spend the first six months of probation in home confinement, and to perform 150 hours of community service.
According to court documents and statements made in court, from approximately March 2013 to October 2014, Levine was employed by Insys Therapeutics, an Arizona-based pharmaceutical company that manufactured and sold Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. Levine was a sales representative for the company and was responsible for covering the territories that included Connecticut, New Hampshire and Rhode Island.
Levine induced certain medical practitioners, including an advanced practice registered nurse (APRN) in Connecticut, a physician’s assistant (PA) in New Hampshire, and a physician in Rhode Island, to prescribe Subsys by paying them to participate in hundreds of sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners. At times, the sign-in sheets for the Speaker Programs were forged so as to make it appear that the programs had an appropriate audience of healthcare professionals.
The medical practitioners were paid thousands of dollars in illegal kickbacks in order to prescribe Subsys, and induce others to prescribe Subsys, over similar medications. Medicare Part D plans authorized payment for hundreds of Subsys prescriptions written by the three medical practitioners, resulting in a loss of approximately $4.5 million.
Levine’s restitution figure will be determined after additional court proceedings.
On July 11, 2017, Levine pleaded guilty to one count of conspiracy to violate the anti-kickback law.
Several other individuals affiliated with Insys Therapeutics, and medical practitioners involved in this kickback scheme, have been charged and convicted in the District of Connecticut and in other Districts across the United States. In sentencing Levine, Judge Arterton credited Levine’s significant cooperation and assistance to the government’s prosecution of defendants in Connecticut, Massachusetts, New Hampshire and Rhode Island.
On January 3, 2019, Levine’s husband, Michael Babich, who was the CEO and President of Insys Therapeutics, pleaded guilty in the District of Massachusetts to conspiracy and fraud charges stemming from the scheme. He awaits sentencing.
On May 2, 2019, a federal jury in Boston found John N. Kapoor, the founder and former Executive Chairman of Insys Therapeutics, and four other former Insys executives guilty of racketeering conspiracy.
Earlier this month, Insys Therapeutics agreed to pay a total of $225 million to resolve criminal and civil investigations of the company.
The investigation in the District of Connecticut is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito, Sarah P. Karwan and Richard M. Molot.
U.S. Attorney Durham encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
Driver of Ridesharing Service Sentenced to 3 Years in Prison for Kidnapping A RiderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that HARBIR PARMAR was sentenced in White Plains federal court to three years in prison for kidnapping and wire fraud. PARMAR pled guilty on March 11, 2019, before U.S. District Judge Vincent L. Briccetti, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Many people rely on rideshare apps to navigate New York safely. But when a woman hailed an ridesharing car driven by Harbir Parmar, her ride home took a turn for the worst. With Parmar’s lengthy prison term, he will no longer be able to take advantage of ridesharing customers.”
According to the Indictment and statements made during today’s plea proceedings:
On February 21, 2018, PARMAR, who worked as a driver for a ridesharing company (“Company-1”), picked up an individual (“Victim-1”) in New York, New York, who sought to be driven to White Plains, New York. After Victim-1 fell asleep in the backseat of the vehicle, PARMAR changed Victim-1’s destination in Company-1’s mobile application to an address in Boston, Massachusetts, and proceeded to drive toward that location. When Victim-1 awoke, the vehicle was in Connecticut. Victim-1 requested that she be taken to White Plains or to the police station, but PARMAR refused. PARMAR instead dropped Victim-1 off on the side of I-95 in Branford, Connecticut. Victim-1 went to a nearby convenience store where she sought assistance.
In addition, from December 2016 through February 2018, PARMAR sent false information about the destinations of Company-1’s customers through Company-1’s mobile application on several occasions. At times, he also sent false information about the application of a cleaning fee to be applied to the accounts of Company-1’s customers. In these instances, customers of Company-1 filed complaints with Company-1 about being overcharged for their rides. These instances have resulted in thousands of dollars in improper charges to the accounts of Company-1’s customers.
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In addition to the prison term, PARMAR, 25, of Howard Beach, New York, was sentenced to three years of supervised release and ordered to pay $3,642 in restitution and forfeiture.
Mr. Berman praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises investigators from the FBI, U.S. Probation Office, New York State police, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, the New York City Police Department, Yonkers Police Department, Greenburgh Police Department, Mount Vernon Police Department, and the Peekskill Police Department.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jamie Bagliebter is in charge of the prosecution.