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20 June 2019
Miami Company Sentenced to Pay $500,000 Fine for Structuring Financial TransactionsRead the Press Release
ALBANY, NEW YORK – Latam Games, LLC of Miami, Florida, was sentenced today to pay a $500,000 fine following its guilty plea to structuring financial transactions to evade currency reporting requirements.
The announcement was made by United States Attorney Grant C. Jaquith; Ray Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (DEA); and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
A bank is required to report a customer’s deposits of more than $10,000 in currency in a single transaction. According to the plea agreement, between March 2013 and June 2013, to avoid these reports, Latam Games’s corporate officers broke cash deposits into amounts of less than $10,000 and deposited these smaller amounts in Florida, California, and New Jersey. For example, the company deposited $4,240 on March 18, 2013, $7,445 on March 19, and $9,560 on March 20. The company deposited $9,045 on April 25, 2013, and $9,000 the following day.
Latam Games admitted that it willfully violated federal law against structuring as part of a pattern of illegal activity involving more than $100,000 in a 12-month period.
Latam Games and another company, Crescent Marketing, Inc. previously forfeited $2,076,155.11 to the United States.
This case was investigated by the DEA and IRS-CI, and was prosecuted by First Assistant U.S. Attorney Elizabeth C. Coombe and investigated by Assistant U.S. Attorney Jeffrey Coffman. Assistant U.S. Attorney Adam Katz represented the United States in the civil forfeiture action.
Mexican Nationals Sentenced for Conspiracy to Distribute Multi-Kilos of HeroinRead the Press Release
KANSAS CITY, Mo. – Two Mexican nationals have been sentenced in federal court for their roles in a conspiracy that distributed more than 14 kilograms of heroin in the Kansas City, Missouri, metropolitan area, some of which is believed to have resulted in overdoses and deaths.
Julian Felix-Aguirre, 46, and Martin Missael Puerta-Navarro, 38, were sentenced in separate hearings before U.S. District Judge Gary A. Fenner on Wednesday, June 19. Felix-Aguirre was sentenced to 24 years and seven months in federal prison without parole. Pueta-Navarro was sentenced to 14 years and eight months in federal prison without parole.
On Sept. 26, 2018, Felix-Aguirre pleaded guilty to participating in a conspiracy to distribute heroin and methamphetamine, to participating in a money-laundering conspiracy, and to possessing firearms in furtherance of a drug-trafficking crime. Puerta-Navarro pleaded guilty on May 22, 2018, to participating in a conspiracy to distribute heroin and to participating in a money-laundering conspiracy.
Felix-Aguirre was arrested during a traffic stop on Sept. 14, 2016, because he did not have a valid driver’s license. When officers searched his vehicle they found a package that contained approximately 16 ounces of black tar heroin.
Law enforcement officers then executed search warrants at two residences, where they found firearms and ammunition, bulk currency, multiple ledgers, various drug packaging, packaged methamphetamine and heroin, and money transfer receipts.
Felix-Aguirre and Puerta-Navarro are among 26 defendants charged in this case, among whom 16 now have been sentenced.
According to court documents, co-defendant Dennis McLallen, 66, of Overland Park, was in direct contact with Mexico-based heroin and methamphetamine suppliers who worked through Kansas City-based associates, including Felix-Aguirre and Puerta-Navarro. Defendants in the case worked with the Sinaloa cartel in Mexico to establish stash houses, build hidden compartments in load vehicles, receive black tar heroin, sell it to Kansas City-area customers for cash, and deposit or transfer the illicit funds in bank accounts or through wire transfer businesses. McLallen received multi-ounce levels of black tar heroin from his suppliers, which he and other conspirators repackaged into ounce and gram levels for distribution.
McLallen was sentenced on April 18, 2018, to 15 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy. He admitted that he was responsible for the distribution of more than 10 kilograms of heroin. Conspirators distributed at least 500 ounces (more than 14 kilograms) of heroin, with an average sale price of $1,700 per ounce, for a total of $850,000.
In September 2016, searches were conducted on vehicles and at residences associated with subjects of the investigation, which yielded heroin, methamphetamine, prescription drugs, more than $200,000 in cash, a load vehicle with hidden compartments, drug ledgers, drug packaging, drug scales, firearms, ammunition, a bullet proof vest, and various other drug trafficking-related items.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the FBI, and the Jackson County Drug Task Force.
Mexican National Indicted for Drug Trafficking and Firearm PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Arturo Zavaleta, 39, of Mexico, charging him with trafficking in heroin, methamphetamine, and possessing a firearm in furtherance of a drug crime, United States Attorney McGregor Scott announced.
According to court documents, on June 3, 2019, DEA agents served a search warrant at Zavaleta’s residence in Turlock, California. During a search of the master bedroom, agents discovered heroin, methamphetamine, and three firearms. The home was outfitted with a surveillance camera. In the backyard, agents found approximately 200 marijuana plants and approximately 300 apparent opium poppy bulbs.
This case was the product of an investigation by the Sacramento Drug Enforcement Administration and California Department of Corrections and Rehabilitation. Assistant United States Attorneys Jason Hitt, Amanda Beck, Ross Pearson, and David Spencer are prosecuting the case.
If convicted, Zavaleta faces a maximum statutory penalty of up to life in prison and a $10,000,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Man Who Kidnapped Fort Worth 8-Year-Old IndictedRead the Press Release
A federal grand jury has indicted the man caught on camera last month abducting an 8-year-old girl in Fort Worth, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The grand jury charged Michael Webb, 51, with kidnapping.
Despite filing papers signaling his intent to plead to an Information – a charging document that does not require signoff from a grand jury – Webb elected not to enter a plea at Wednesday morning’s scheduled hearing.
Prosecutors decided to present the case to a grand jury, forgoing any further delay in charging. The grand jury true billed an Indictment Wednesday afternoon.
“We are determined to hold the Defendant accountable for his alleged crime. If he wants a trial – which is his right – we are prepared to prove the facts before a jury,” said U.S. Attorney Nealy Cox, who is on the trial team. “We’ll do whatever it takes to bring this man to justice.”
“FBI Dallas will exhaust the necessary resources to recover all abducted and missing children,“ said Matthew J. DeSarno, Special Agent in Charge of the FBI Dallas Field Office, which worked with the Fort Worth Police Department to investigate the kidnapping and rescue the little girl. “In this case, we were able to actively work with our partners at the Fort Worth Police Department, Department of Public Safety, and Arlington Police Department to safely recover the victim and arrest her alleged abductor.”
Webb, who has been in federal custody since his arrest on May 19, will be arraigned before U.S. District Judge Reed O’Connor on Monday, June 24 at 9 a.m. At that time, he will be required to enter a plea: guilty or not guilty.
An Indictment is a formal accusation of criminal conduct, not evidence; like all other defendants, Webb is presumed innocent until convicted in a court of law.
If proven guilty, he faces a mandatory minimum of 20 years in federal prison and up to life behind bars.
The investigation was conducted by the Federal Bureau of Investigation’s North Texas Child Exploitation Task Force, the Fort Worth Police Department’s Major Case Unit Taskforce, which includes representatives of local law enforcement around the region, and the Texas Department of Public Safety. U.S. Attorney Erin Nealy Cox, Fort Worth Branch Chief Alex Lewis, and Assistant U.S. Attorney Aisha Saleem, the District’s Project Safe Childhood Coordinator, are prosecuting the case.
Local Soccer Trainer Charged with Exchanging Naked Photos with MinorsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shelby Garigen, 41, of Clarence Center, NY, was charged by criminal complaint with receipt of child pornography and access with intent to view child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on May 28, 2019, a parent contacted an Assistant District Attorney (ADA) in Monroe County, NY, and advised that the defendant had inappropriate chats via Snapchat with his 17-year-old son (Victim 1). Garigen had, up until approximately one month prior, served as the athletic trainer for Victim 1’s elite soccer team, and had been associated with the soccer program for approximately the past 12 years. The Monroe County ADA contacted the FBI regarding the case.
The complaint states that Garigen and Victim 1 communicated via Snapchat between November 2018 and February 2019. The conversation turned sexual about a week or two after the defendant and Victim 1 began chatting with Garigen sending Victim 1 a picture of her breasts. After sending the picture, the defendant requested that Victim 1 send a naked picture. Thereafter, the two began exchanging sexually explicit photos of themselves to one another over Snapchat. All told, Garigen requested that Victim 1 send her nude pictures on approximately 8 or 9 occasions, while the defendant herself sent 7 or 8 nude pictures of herself.
During the investigation, an undercover investigator assumed the online identity of Victim 1, and re-engaged with Garigen on Snapchat. Thereafter, the defendant engaged in sexually explicit conversation and sent videos of her engaged in sexually explicit conduct. Eventually, arrangements were made for Garigen to meet with Victim 1 so that the two could engage sexual activity. On June 14, 2019, Garigen arrived at the designated location in order to pick-up Victim 1 so that they could return to her house to engage in sexual activity. At that time, a federal search warrant was executed to seize and search Garigen’s phone.
The investigation also determined that the defendant exchanged nude pictures with a second 17-year-old male (Victim 2), who was also associated with the elite soccer team.
“While this case is somewhat unusual in that the defendant is a woman,” U.S. Attorney Kennedy observed, “it is familiar in the sense that defendant used two of the most frequent and common methods that child predators use in order to gain access to children. The first is the internet, and the second is occupying a position of authority and trust in the child’s life. Parents should be coaching their kids on how to defend themselves from these sorts predators.”
“The exploitation of children is so prevalent in this country-and around the world-that the FBI and our law enforcement partners have full time task forces to attack this crime problem,” said FBI Buffalo Special Agent-in-Charge Gary Loeffert. “That is a terrible reality. We often remind parents to talk to their children about the dangers of meeting strangers online. But more and more often, we are seeing children victimized by adults who have been placed in positions of trust. And youth-sports programs, like all youth-serving organizations, give adults incredible access to our children.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions, including no employment with any youth related sports program, no contact with minors, restrictions on the use of electronic devices, and electronic monitoring.
Any parent or member of the public who has information related to this case are asked to call the Federal Bureau of Investigation at 716-843-1616.
The complaint is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert, and the Cheektowaga Police Department, under the direction of Chief David Zack. Additional assistance was provided by the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Leader, Enforcer Sentenced for Conspiracy to Distribute 45 Kilos of MethRead the Press Release
KANSAS CITY, Mo. – The leader and the enforcer of a drug-trafficking organization that distributed more than 45 kilograms of methamphetamine in the Kansas City metropolitan area were sentenced in federal court today.
Jennifer Gladman-Carnall, 37, of Kansas City, Missouri, and Michael Keavney, 42, of Kearney, Missouri, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. Gladman-Carnall was sentenced to 11 years and six months in federal prison without parole. Keavney was sentenced to 15 years and eight months in federal prison without parole. They are among 11 defendants who have been convicted in this case.
Gladman-Carnall pleaded guilty on May 4, 2018, to being the leader of the drug-trafficking conspiracy, which she admitted distributed more than 45 kilograms of methamphetamine. She also pleaded guilty to conspiracy to commit robbery (of a methamphetamine dealer) and to aiding and abetting the use and brandishing of a firearm during that robbery.
Keavney pleaded guilty on Sept. 13, 2018, to his role in the conspiracy to distribute methamphetamine. According to court documents, Keavney played the role of an “enforcer” in this conspiracy. Keavney provided security for co-defendants, and was himself involved in distributing 2.4 kilograms of methamphetamine. He also arranged deals, delivered narcotics, collected money, and arranged the illegal sale of firearms. Keavney was a principle actor in the conspiracy as he was directly connected with several large scale drug dealers, was regularly armed with firearms, and sold firearms.
After being indicted and released on pretrial supervision, according to court documents, Keavney violated his supervisions several times for using drugs, absconding, and committing new law violations. On April 19, 2017, Keavney was driving a stolen motorcycle at excessive speeds. When law enforcement attempted to stop him, he crashed the motorcycle and fled on foot. After ultimately being detained, Keavney was highly intoxicated and in possession of a knife and brass knuckles. Toxicology reports indicated that he had opiates, methamphetamine, marijuana, and alcohol in his system. After being discharged from the hospital, Keavney absconded from supervision for nearly four months before he was arrested. On Aug. 15, 2017, Keavney’s pretrial bond was revoked and he was remanded to custody.
This case is being prosecuted by Assistant U.S. Attorneys David Raskin and Matthew Moeder. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Jackson County Drug Task Force.
Lead Defendant in Baltimore Drug Distribution Conspiracy Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Ashley Grossman, age 30, of Baltimore to 135 months in federal prison, followed by five years of supervised release, for a conspiracy to distribute fentanyl, heroin, and cocaine in the German Park area in Baltimore’s Central District. The sentence was imposed on June 19, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“State and federal law enforcement and prosecutors in Baltimore City are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “We’re also targeting drug dealers who use guns and increase the risk of gun violence in Maryland. More and more people are dying from fentanyl overdoses in Baltimore City and throughout the state. Working together with law enforcement partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
According to her plea agreement, from at least January 2017 through July 2018, Ashley Grossman conspired with others to distribute fentanyl, heroin, and cocaine through a street-level drug shop called the Young Finesse Kings (“YFK”). Ashley Grossman was one of the leaders of the shop, which operated primarily in the German Park area of Baltimore City.
Law enforcement conducted surveillance of the YFK drug shop and observed many drug transactions, and Baltimore Police officers arrested members of the conspiracy on several occasions. In addition, law enforcement obtained wiretaps for Ashley Grossman’s cellular phone and intercepted numerous communications with co-conspirators discussing the operation of the drug shop. For example, in one conversation, Grossman was overheard discussing the payment made to another co-conspirator, Anthony Whitaker, for coordinating the drug sales at the shop. In addition, law enforcement intercepted a number of communications between Grossman and her supplier, Barry Martin, including several on March 14, 2018, coordinating a meeting that day. Investigators tried to observe the meeting but arrived just as Grossman’s truck was leaving the location. Investigators saw Grossman exit the truck carrying a small black bag, which was believed to contain narcotics obtained from Barry Martin, and go into a home in the 1700 block of Hollins Street. A short time later, another conspirator was seen leaving the home, placing an item in the rear passenger seat of the truck and driving away.
Law enforcement executed a search warrant at the Hollins Street residence on April 12, 2018 and recovered scales and other drug paraphernalia consistent with the YFK street operations. On July 11, 2018, law enforcement executed a search at Barry Martin’s residence and recovered two firearms, approximately 529 grams of suspected heroin/fentanyl, 254 grams of suspected cocaine, and $157,658 in cash.
Co-defendants Brandon Reese, a/k/a “Gangsta.” age 36; Ratrez Colson, age 20; Anthony Whitaker III, a/k/a “TY,” age 24; and Barry Martin, age 44, all of Baltimore, have all pleaded guilty to the drug conspiracy. Martin was sentenced to 11 years in federal prison and each of the other defendants faces a minimum mandatory sentence of 10 years in prison and up to life in prison. Judge Blake has scheduled sentencing for Colson on July 12, 2019 at 9:15 a.m.; for Whitaker on August 1, 2019 at 9:15 a.m.; and for Reese on September 20, 2019 at 10:30 a.m. Four other co-defendants are awaiting trial.
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. 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.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Goo and Brandon K. Moore, who are prosecuting the case.
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Las Vegas Tax Preparer Sentenced to 15 Months in Prison for Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas tax return preparer who falsified his own tax returns as well as those of his clients was sentenced today to 15 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Acting IRS Special Agent in Charge (Criminal Investigation) Ismael J. Nevarez Jr.
According to documents and information provided to the court, for tax years 2013 through 2016, Rosalio Amezcua Alcantar, 67, willfully underreported his taxable income while operating his tax return preparation business, Direct Services Group, in Las Vegas, Nevada. By falsely reporting less revenue than he earned and by claiming business expenses that were either fictitious or impermissible, Alcantar underreported his taxable income by more than $140,000 over the course of four years.
As part of the plea agreement, Alcantar also admitted that, in his capacity as a tax preparer, he purposely and fraudulently claimed charitable contribution and business expense deductions to which his clients were not entitled. As a result of false returns he filed on behalf of his clients, Alcantar caused more than $200,000 in tax loss. Alcantar further admitted that he also misrepresented his income to the Social Security Administration to fraudulently obtain Social Security benefits for himself and his daughter.
At the time Alcantar committed these acts, he was serving a three-year term of supervised release imposed after his federal conviction for Conspiracy to Commit Mail and Wire Fraud.
In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan ordered Alcantar to serve one year of supervised release and to pay restitution of $62,597.40 to the Internal Revenue Service and Social Security Administration.
The case was investigated by Internal Revenue Service–Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Tony Lopez prosecuted the case.
Las Vegas Doctors, Unlicensed Nurse and Two Others Arrested and Indicted for Trafficking Schedule III Controlled SubstancesRead the Press Release
LAS VEGAS, Nev. – An indictment by a federal grand jury was unsealed today charging an unlicensed advance nurse practitioner (APRN), two doctors, and two others for conspiring to distribute buprenorphine, a Schedule III Controlled Substance, announced United States Attorney Nicholas A. Trutanich and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
Michael Halprin, 68, an unlicensed APRN in Las Vegas, Nevada; Chad Hall, D.O., 39, of Las Vegas; Ronald Smith, M.D., 50, of Las Vegas; Janell Olson, 49, of Las Vegas; and Eghomware Igbinovia, a/k/a Jerry Igbinovia, 44, of Las Vegas, are all charged with conspiracy to possess with intent to distribute and with distributing buprenorphine, an opioid classified as a Schedule III controlled substance. Halprin, Hall and Olson are also all charged with distribution of Valium, a Schedule IV controlled substance. Halprin, Hall, Smith and Olson are also charged with obtaining a controlled substance by misrepresentation and Halprin and Hall are charged additionally with maintaining a drug-involved premises.
“The U.S. Attorney's Office will target and prosecute doctors who illegally dispenses addictive opioids, thus placing personal greed above the health and safety of his or her patients,” said US Attorney Trutanich. “Working in lockstep with our law enforcement partners, we will work diligently to reduce, and then stamp out, the opioid crisis.”
Halprin and Olson were arrested and will make their initial appearance in federal court in Melbourne, Florida today. Smith and Igbinovia were arrested in Las Vegas, Nevada and are scheduled to make their initial appearance before United States Magistrate Judge Nancy J. Koppe today. Hall is expected to make his initial appearance in Reno, Nevada on June 21, 2019.
The maximum penalty for maintaining a drug-involved premises is 20 years in custody and a fine of $500,000. The maximum penalty for conspiracy to distribute and distributing buprenorphine is 10 years of imprisonment and a fine of $500,000. The maximum penalty for distributing Valium is five years imprisonment and a fine of $250,000. The maximum penalty for obtaining a controlled substance by misrepresentation is four years and a fine of $250,000.
According to the Centers for Disease Control and Prevention, while increased therapeutic use of buprenorphine may help reduce prescription opioid abuse and misuse, nontherapeutic or inappropriate use of buprenorphine can cause serious and potentially life-threatening effects among children and adults.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The joint investigation was conducted by the FBI; DEA; and Nevada State Board of Pharmacy. In 2017, the Department of Justice funded a dedicated opioid prosecutor to the United States Attorney’s Office for the District of Nevada. The case is being prosecuted by Assistant United States Attorney Nadia Ahmed.
Kuna Man Sentenced to 30 Years in Federal Prison for Drug Trafficking and Gun CrimesRead the Press Release
BOISE – David William Fischer, 33, of Kuna, was sentenced to 360 months in federal prison for possession of over five grams of methamphetamine with intent to distribute, unlawful possession of firearms, and possession of firearms in furtherance of drug trafficking, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also sentenced Fischer to eight years of supervised release once he has completed his prison term.
According to court records, on September 26, 2017, the U.S. Marshals Service’s Greater Idaho Fugitive Task Force (GIFT) and Anti-Crime Team in Our Neighborhoods (ACTION) were executing an arrest warrant for Fischer when officers discovered him in the Red Lion Hotel in downtown Boise. After a forty-five minute standoff, Fischer, a felon, was arrested without incident and found in possession of two handguns and approximately 42 grams of methamphetamine. After a two-day trial earlier this year, Fischer was found guilty on all charged counts. Under federal law, it is illegal to possess a firearm in order to further a drug trafficking crime or federal crime of violence.
This case was investigated by the U.S. Marshals Service’s GIFT, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Garden City Police Department and the Ada County Sheriff’s Office.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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.
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Kentwood Man Sentenced for Interstate Threat to Injure U.S. SenatorRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Rick Lynn Simmons, 52, of Kentwood, Michigan was sentenced by U.S. District Judge Janet T. Neff for making an interstate telephone call to the Camden, New Jersey office of U.S. Senator Cory Booker and leaving a voicemail message with a threat to injure Senator Booker. Simmons will serve 15 months of confinement, 2 years of supervised release, and pay a $2,000 fine. Judge Neff commented that this threat does not necessarily reflect an isolated incident based on Simmons’ internet searches of contact information of other public officials following this incident.
Simmons admitted at the plea hearing that he placed a call in the evening of October 26, 2018 from his Kent County, Michigan home to Senator Booker’s office and left a voicemail message from that call. Simmons further admitted at the plea hearing to leaving a vulgarity-filled message in that call during which he threatened to put a 9 millimeter gun into the face of Senator Booker and put "guns a blazin."
"This conviction and sentence should serve as a warning to others who, like Simmons, stoop to such threats of violence," U.S. Attorney Birge said.
"The FBI has zero tolerance for anyone who threatens to do harm to others," said FBI Detroit Field Office Special Agent in Charge Timothy R. Slater. "We hope this sentence sends a strong message that the FBI, working in conjunction with our federal, state, and local partners, will investigate these threats thoroughly so we can keep our citizens safe."
The case was jointly investigated by the U.S. Capitol Police, Kentwood Police Department, and the FBI - Grand Rapids Violent Crime Task Force – which includes the Grand Rapids Police Department, the Michigan Department of Corrections, and the FBI. Assistant U.S. Attorney Clay M. West prosecuted the case.
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Kentucky Man Sentenced to Life in Prison for First Degree MurderRead the Press Release
TUCSON, Ariz. – On June 17, 2019, Dana Louis Mattingly, 58, of Louisville, Kentucky, was sentenced by U.S. District Judge James A. Soto to life in prison.
On March 8, 2013, Mattingly, while serving a sentence for armed bank robbery, entered the cell of another inmate in the U.S. Penitentiary in Tucson, bound him, then choked and repeatedly stabbed him to death. Mattingly entered a plea of guilty to first degree murder on February 27, 2019.
The investigation in this case was conducted by the Federal Bureau of Investigation, in Tucson. The prosecution was handled by Carin C. Duryee and Carmen F. Corbin, District of Arizona, Tucson.
Justice Department Sues to Block Quad’s Acquisition of LSCRead the Press Release
The Department of Justice filed a civil antitrust lawsuit today seeking to block Quad/Graphics Inc.’s proposed acquisition of LSC Communications Inc. in order to preserve competition in the markets for magazine, catalog, and book printing services in the United States.
The Antitrust Division’s lawsuit alleges that the transaction would combine the only two significant providers of magazine, catalog, and book printing services, denying publishers and retailers throughout the country the benefits of competition that has spurred lower prices, improved quality, and greater printing output. The Department filed its lawsuit in the U.S. District Court for the Northern District of Illinois.
“American publishers and retailers rely on Quad and LSC to print and distribute billions of magazines, catalogs, and books each year,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “LSC is Quad’s primary competitor. If this deal were allowed to proceed, Quad would dominate the markets for magazine, catalog, and book printing services and be able to raise prices and reduce quality at the expense of publishers, retailers, and, ultimately, American consumers.”
The magazine, catalog, and book printing services offered by Quad and LSC include the printing, finishing, and distribution of publications to newsstands, retail facilities, or the postal service for delivery to consumers’ homes. Quad and LSC are by far the largest printers in the United States and are relied upon by many of the largest publishers and retailers to ensure that high-quality products are printed and distributed on time.
According to the Department’s complaint, Quad and LSC view each other as their “#1 competitor,” and intense head-to-head competition between them has directly benefitted their customers through lower prices and better-quality services. The complaint quotes internal presentations and emails describing this competition:
- Internal documents outline the “two-horse race between LSC and Quad.”
- A Quad internal presentation explained, “we are the only printer other than LSC that can offer the largest Publishers a complete solution.”
- Executives observed a publisher “exploiting the fact that LSC [and] Quad[’s] CEO’s want to beat each other into oblivion.”
- A senior Quad executive remarked of LSC, “We’ve been in a price war with them for some time. Don’t see that changing.”
- After hearing news of the merger, one Quad executive reflected on a recent battle between it and LSC and remarked, “I admit, in the case of [a large customer] I’m taking significant satisfaction in the news . . . . I’m sure it’s a bitter pill for them to swallow.”
The complaint alleges that Quad’s proposed acquisition of LSC would put an end to the “price war” between the two and allow it to dominate the magazine, catalog, and book printing markets.
Quad/Graphics Inc. is a Wisconsin corporation headquartered in Sussex, Wisconsin. It offers a variety of printing services, including magazine, catalog, and book printing services, to publishers across the country. In 2018, Quad’s revenues were approximately $4.2 billion.
LSC Communications Inc. is a Delaware corporation headquartered in Chicago, Illinois. In 2016, it was spun off from printing firm R.R. Donnelley. LSC offers a similar set of magazine, catalog, and book printing services as Quad. In 2018, LSC’s revenues were approximately $3.8 billion.
Justice Department Settles Housing Discrimination Lawsuit Against St. Bernard Parish, LouisianaRead the Press Release
The Department of Justice announced today that St. Bernard Parish, Louisiana, has agreed to pay more than $1 million to settle a lawsuit alleging that the Parish violated the Fair Housing Act when it refused to allow two small group homes for up to five children with disabilities to open in single-family neighborhoods.
“The Fair Housing Act prohibits local governments from applying their zoning laws in a manner that discriminates against persons with disabilities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement underscores the Civil Rights Division’s commitment to ensure that children with disabilities have access to housing in all communities.”
“Access to safe, sanitary, and secure housing is a fundamental civil right for all persons within the Eastern District of Louisiana, and this settlement agreement continues efforts to ensure compliance to The Fair Housing Act,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “I commend the cooperative efforts of St. Bernard Parish to reach a resolution that is in the best interests of our community.”
“Persons with disabilities have a right to have access to the type of housing that meets their needs,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement sends a strong message that HUD and the Justice Department are committed to ensuring that cities and municipalities fully adhere to the requirements of the Fair Housing Act.”
The United States’ suit, filed in U.S. District Court in New Orleans, Louisiana, in December 2018, alleged that St. Bernard Parish violated the Fair Housing Act when it denied requests for reasonable accommodations to its zoning ordinance to allow the two group homes to operate in single-family neighborhoods of the Parish. Shortly after learning that the homes were planning to open, the Parish amended its zoning code to prohibit group homes of any size in single-family neighborhoods. The two group home operators filed complaints with HUD, which in turn referred the complaints to the Department of Justice. The group home operators filed a lawsuit in 2016, which they have settled with the Parish.
Under the settlement, St. Bernard Parish will pay $975,000 in monetary damages and attorneys’ fees to the two group home operators, and a $60,000 civil penalty to the United States. The Parish amended its zoning ordinance to permit small group homes in single-family residential districts, amended its reasonable accommodation policy, and will take a number of actions to guard against further housing discrimination. These other actions include training officials and individuals involved in zoning and land use, designating a fair housing compliance officer, and reporting periodically to the Department of Justice during the term of the agreement.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-66-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Justice Department Requires Harris and L3 to Divest Harris’s Night Vision Business to Proceed with MergerRead the Press Release
The Department of Justice announced today that it is requiring Harris Corporation (Harris) and L3 Technologies Inc. (L3) to divest Harris’s night vision business in order to proceed with their merger.
The Department further said that, without the divestiture, the proposed acquisition would eliminate competition between the only two suppliers of U.S. military-grade image intensifier tubes, which are the key component in night vision devices such as goggles and weapon sights purchased by the Department of Defense (DoD) for the United States military.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“The merger, as originally structured, would have given the combined company a monopoly over image intensifier tubes, an essential component in night vision devices used by the United States military,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that our armed forces continue to benefit from competition for a mission critical component that soldiers operating in low-light environments rely on every day.”
According to the Department’s complaint, Harris and L3 are the only suppliers of U.S. military-grade image intensifier tubes for night vision devices such as goggles and weapon sights that are purchased by the DoD. Image intensifier tubes are the critical component in these devices, which amplify visible light to increase situational awareness, threat detection, and mission performance of American soldiers and aircrews operating in low-light environments. The Department’s complaint alleges that competition between Harris and L3 has resulted in lower prices, higher quality, and shorter delivery times and has fostered innovation that has led to the development of image intensifier tubes with higher sensitivity and resolution. According to the complaint, the combination of Harris and L3 would leave the DoD without a competitive alternative for this critical input and likely result in higher prices, less favorable contract terms, and reduced research and development efforts.
Under the terms of the proposed settlement, Harris and L3 must divest Harris’s entire night vision business, including its manufacturing facility in Roanoke, Virginia, to an acquirer approved by the United States.
The Antitrust Division and the DoD cooperated closely throughout the course of their respective investigations of the transaction.
Harris is incorporated in Delaware and has its headquarters in Melbourne, Florida. Harris provides night vision devices and image intensifier tubes, tactical communications solutions, electronic warfare solutions, and space and intelligence systems. In 2018, Harris had sales of approximately $6.2 billion.
L3 is incorporated in Delaware and is headquartered in New York, New York. L3 provides night vision devices and image intensifier tubes; intelligence, surveillance, and reconnaissance systems; aircraft sustainment, simulation, and training; and security and detection systems. In 2018, L3 had sales of approximately $10.2 billion.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
Jury Finds District Man Guilty of Assault with a Dangerous WeaponRead the Press Release
WASHINGTON – Maxim R. Smith, 25, of Washington, D.C., was found guilty by a jury yesterday of assault with a dangerous weapon, for beating a man approximately ten months ago in Northwest Washington, U.S. Attorney Jessie K. Liu announced today.
Smith was found guilty on June 19, 2019, following a trial in the Superior Court of the District of Columbia. Smith was convicted of assault with a dangerous weapon and assault with significant injury while armed. The Honorable Judge Kimberley S. Knowles scheduled sentencing for August 30, 2019. Smith faces a statutory maximum of 10 years of incarceration.
According to the government’s evidence, on August 6, 2018, the victim was driving in his vehicle through Georgetown after a friend’s gathering. As he drove toward Wisconsin Avenue NW on M Street NW, he encountered Smith stopped on his bicycle in the middle of the right turn lane. The victim honked his horn, and Smith yelled expletives at the victim and did not move. The victim then passed the defendant on the left side in his vehicle, and at that point heard a loud thump on the back of his car. Assuming the defendant had hit his car with an object, the victim turned right onto Wisconsin Avenue NW and pulled his car to the side of the road. The victim got out of his car to inspect for damage and to call the police. Smith also turned right onto Wisconsin Avenue NW and rode his bike to Prospect Street. As soon as Smith turned back and saw the victim on the phone, he shouted to the victim, “Are you really calling the police?” and directed a racial slur at him. The victim is a black male from Cameroon, and the defendant is a white male. Smith then rode aggressively back toward the victim and got into a physical altercation with him. Smith then struck the victim on the head with a metal u-lock while yelling racial slurs at him. The victim required 21 stiches to his head as a result of the assault.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the work of those who handled the case at the U.S. Attorney’s Office including Assistant U.S. Attorneys Jack Korba and Alyse Constantinide.
Junction City Woman Sentenced for Possessing Child PornRead the Press Release
TOPEKA, KAN. – A Junction City woman was sentenced today to five years in federal prison for possession of child pornography, U.S. Attorney Stephen McAllister said.
Kayla Michelle Simpson, 24, Junction City, Kan., pleaded guilty to one count of possessing child pornography. On Sept. 20, 2016, law enforcement seized Simpson’s iPhone. In her plea, Simpson admitted that her phone contained images of her having sex with a juvenile female.
McAllister commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case. The case was prosecuted as part of the Justice Department’s Project Safe Childhood initiative.
Inmate-Gang Member Pleads Guilty to Using the Mail to Threaten to Kill Federal Prosecutor and the Prosecutor’s FamilyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Dylan Ray Langley (24, Fort Myers) has pleaded guilty to use the U.S. Mail to threaten to injure an officer of the United States. Langley faces a maximum penalty of 10 years in federal prison.
According to court documents, while serving a state prison sentence for armed robbery, Langley mailed a letter to an Assistant United States Attorney. In his letter, Langley threatened to kill the prosecutor as revenge for his having prosecuted Langley’s “brother.” He also made serious threats against the prosecutor’s family. When interviewed by federal agents, Langley admitted that he had sent the letter and intended to carry out his threats. He explained that the letter’s mention of a “brother” did not refer to any biological brother, but rather a fellow gang member. Langley changed his story after an agent told him that if a state prisoner commits, and is convicted of, a federal crime, then the prisoner must serve his state sentence and then the federal sentence. During a second interview with agents, Langley claimed that he never intended to carry out the threat and mistakenly had believed that threatening a federal official would result in him being moved from state custody into federal custody.
This case was investigated by Federal Bureau of Investigation, the U.S. Marshals Service, and the Florida Department of Corrections. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Illegal Alien Sentenced to Five Years in Federal Prison for Unlawfully Re-Entering the United StatesRead the Press Release
Ocala, Florida – Senior U.S. District Judge James D. Whittemore today sentenced Juan Paulin-Leon (36, Mexico) to five years in federal prison for illegal re-entry into the United States by a previously deported alien. Paulin-Leon had pleaded guilty on March 6, 2019.
According to evidence presented in court, on January 27, 2019, the Marion County Sheriff’s Office arrested Paulin-Leon on a state criminal charge of operating a motor vehicle without a valid license. Following his arrest, the jail’s booking system automatically forwarded Paulin-Leon’s personal identifying information to officials with U.S. Immigration and Customs Enforcement (ICE), who confirmed through fingerprints and photographs that Paulin-Leon was illegally present in the United States from Mexico.
Paulin-Leon had previously been deported from the United States on two occasions—February 11, 2005 and January 4, 2013. He also had prior felony convictions for burglary (2001) and trafficking in drugs (2011).
This case was investigated by Enforcement and Removal Operations (Orlando), a component of ICE, and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Illegal Alien Charged with Felon in Possession of A Firearm and Alien in Possession of A FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Jose Toscano-Ruelas, 43, a foreign national, charging him with being a felon in possession of a firearm, being an illegal alien in possession of a firearm, and being a deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, Toscano-Ruelas received fifteen drug trafficking-related convictions in Tulare County, California in July 2003. He was subsequently deported in December 2005 and never obtained permission to return to the United States. In May 2019, Toscano-Ruelas was found in Tulare County in possession of a semi-automatic pistol.
This case was the product of an investigation by Immigration and Customs Enforcement (ICE) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Laura D. Withers is prosecuting the case.
Toscano-Ruelas is currently in custody.
If convicted, Toscano-Ruelas faces a maximum statutory penalty of 20 years in prison. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Illegal Alien Charged with Failure to Register or Update His Registration as Sex OffenderRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count superseding indictment today against Marco Antonio Lopez-Rubio, 35, a foreign national, charging him with failing to register or update his registration as a sex offender and being a deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, from May 2019 until June 2019, Lopez-Rubio was present in the State of California but failed to register as a sex offender as required by law. In 2008, Lopez-Rubio was convicted in California for forcible rape, at which time he acquired his registration requirement. He was subsequently deported from the United States and never obtained permission to return to the United States.
This case was the product of an investigation by the U.S. Marshals Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant United States Attorney Laura D. Withers is prosecuting the case.
If convicted, Lopez-Rubio faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Honduran Man Sentenced for Transporting Local Minor Out of State for SexRead the Press Release
PENSACOLA, FLORIDA – Elvin Castron-Murcia, 20, a Honduran native residing in Louisiana, was sentenced in federal court today to ten years in prison for traveling for illicit sexual conduct and transporting a minor for criminal sexual activity involving a Northwest Florida girl. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
"The illegal actions of this defendant will have a lasting and harmful impact on his adolescent victim, and it is important that he be imprisoned so he cannot take advantage of other young girls," Keefe said. "We thank the various federal, state, and local law enforcement partners who helped find the victim, return her safely to her family, and ensure that the defendant is brought to justice."
This investigation began in May 2018, when a 12-year-old female, identified only as "ENN," disappeared after her mother caught her communicating on Facebook with a male under the name "Elvin C. Murcia." Several neighbors had observed a black Honda Civic with Tennessee license tags parked near ENN’s residence in Navarre, Florida. A search of ENN’s cell phone and Instagram social media account revealed images of the girl in a vehicle with a male who appeared to be the same person on Murcia’s Facebook account.
The next day, ENN’s mother was able to communicate with her daughter via Facebook Messenger, and law enforcement officers determined that the cell phone used for the conversation was located in Tennessee heading toward Alabama. A state trooper soon observed the black Honda Civic with Tennessee tags and stopped the vehicle in Alabama. ENN was identified as the vehicle’s passenger and Murcia, who was using a license issued in a false name, was later identified as the driver. Images and videos forensically located on Murcia’s phone confirmed that Murcia and ENN were in a relationship that began when ENN was 11 years old. Law enforcement officers were also able to obtain video from a Tennessee Walgreens store showing Murcia purchasing birth control with ENN. The Department of Homeland Security confirmed that Murcia was illegally present in the United States.
Murcia will be removed from the United States after serving his sentence in federal prison.
"The victimization of innocent children will not be tolerated in this country, and this case reinforces that message," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "The FBI and our law enforcement partners will stop at nothing to identify child predators and ensure the safety of young people who are among the most vulnerable members of our community."
"Castron-Murcia acted with an intense focus to befriend this child and gain her trust only to victimize her," said FDLE Pensacola Special Agent in Charge Jack Massey. "FDLE will continue to work aggressively with our law enforcement partners to investigate those who seek to hurt our children."
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Alabama Law Enforcement Agency, and Homeland Security Investigations. Assistant United States Attorney David L. Goldberg prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Hartford Man Sentenced to 33 Months in Federal Prison for Illegally Possessing Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARQUISE GODWIN, also known as Craig Godwin, 32, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 33 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on June 3, 2018, Hartford Police encountered Godwin in his car after he was involved in a traffic accident on Main Street in Hartford. At the time of the accident, Godwin, who was intoxicated, possessed a loaded .40 caliber Astra A75 handgun.
The firearm had been reported stolen during a burglary in Hartford in September 2017.
Godwin’s criminal history includes convictions in state court for weapons, narcotics, escape and risk of injury offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Godwin has been detained since June 3, 2018. On November 27, he pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
This matter was investigated by the FBI’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution 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 neighborhoods safer for everyone.
Hart to Heart Ambulance Services to Pay $1.25 Million to Settle Federal False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – After a multiple-year investigation and the government’s intervention in a whistleblower lawsuit, Hart to Heart Ambulance Services, d/b/a/ Hart to Heart Transportation Services has agreed to pay the United States $1,250,000 to settle allegations under the False Claims Act that it submitted false claims to Medicare for ambulance transport that was not medically necessary.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Maureen Dixon.
“Companies that submit false bills to the government must be held accountable. The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare and other federal healthcare programs from fraud and abuse and recover taxpayers’ money,” said U.S. Attorney Robert K. Hur.
“When health care providers participate in fraudulent billing schemes in order to increase profits, they steal from the pockets of the taxpayer and jeopardize federal healthcare programs,” said Maureen Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to be relentless in our efforts to hold such providers accountable.”
On November 30, 2018, the United States filed a complaint in U.S. District Court alleging that Hart to Heart, its billing affiliate, EMS Billing Solutions, Inc. (“EMS”), and the owners and operators of those organizations violated the False Claims Act by submitting or causing the submission of false claims to Medicare for ambulance transport that was not medically necessary, and for which the defendants received millions of taxpayer dollars. Medically necessary ambulance transportation requires that a patient’s medical condition is such that other methods of transportation are contraindicated, but Hart to Heart submitted a high rate of ambulance claims for patients who could have been transported by wheelchair van or other means. The complaint cites accounts from numerous former Hart to Heart employees about management’s pressure and directions to falsify documentation to make Medicare reimbursement more likely.
In reaching this settlement, the parties have resolved allegations that, from January 2, 2010 to December 31, 2017, Hart to Heart knowingly submitted fraudulent claims to Medicare for non-emergency Basic Life Support (BLS) ambulance transports hospital discharges that were not medically necessary.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Hart to Heart Transportation Services or its affiliates, nor a concession by the United States that its claims are not well founded.
The government’s action in this matter illustrates its commitment to combat health care fraud using the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
Bryan Arvey, a former Hart to Heart employee, originally filed this lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act, which permits private individuals with knowledge of fraud to sue on behalf of the government for false claims and to share in any recovery. Mr. Arvey will receive approximately $251,000 from the settlement with Hart to Heart. The case is captioned United States, et al. ex rel. Arvey v. Hart to Heart Transportation Services, Inc. et al., Case No. RDB-13-1554.
United States Attorney Robert K. Hur commended the U.S. Department of Health and Human Services - Office of Inspector General for its work in the investigation. Mr. Hur also thanked Assistant United States Attorneys Roann Nichols and Molissa Farber, who handled the case.
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Harrison County woman sentenced for role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Faith Martin, of Shinnston, West Virginia, was sentenced today to 41 months incarceration for her involvement in a methamphetamine distribution conspiracy, United States Attorney Bill Powell announced.
Martin, age 20, pled guilty to one count of “Distribution of Methamphetamine” in March 2019. Martin admitted to selling methamphetamine in Harrison County in August 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
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Guns and Heroin Send Washington County Man to Federal PrisonRead the Press Release
PITTSBURGH - A former resident of Detroit, Michigan and recent resident of Washington, Pennsylvania, was sentenced on Tuesday, June 18, 2019, in federal court to eight years and four months (100 months) of federal imprisonment followed by five years of supervised release on his conviction of federal drug and firearms offenses, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Bobby Leon Cook, aka "Shorty", age 30.
According to information presented to the court, the investigation revealed that Cook was selling heroin from a Red Roof Inn hotel in Washington County. Working in an undercover capacity, a detective with the Canonsburg Police Department made recorded calls to Cook and arranged to buy a "brick" containing 50 stamp bags of opiates from Cook for $350. Cook was stopped after leaving the hotel and was found to be in possession of a total of 70 stamp bags of heroin and $3,293 in cash. Law enforcement subsequently searched his hotel room and located items which included unfilled stamp bags, a digital scale, rubber bands used to package stamp bags into "bricks," three pistols (a .380 caliber, a .357 caliber and a .38 caliber), and ammunition. One of the firearms was stolen in a Washington County residential burglary.
While imposing sentence, Judge Conti noted that people are dying from heroin purchased from opiate dealers like Cook and that his illegal possession of multiple firearms made the situation even more dangerous.
United States Attorney Brady commended the collective efforts of the Drug Enforcement Administration (DEA), the Canonsburg Police Department, the Washington County Sheriff’s Office, the City of Washington Police Department, the Robinson Township Police Department, the Coraopolis Police Department, the Monessen Police Department, the Pennsylvania State Police and the Washington County Drug Task Force for the investigation leading to the successful prosecution of Cook.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Green Bay Man Indicted for ArsonRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on June 18, 2019, a federal grand jury issued an indictment against William A. Julius (age: 57) of Green Bay, Wisconsin.
The indictment alleges that Julius “did maliciously damage by fire, a building located at 332 South Madison Street” in the City of Green Bay, in violation of Title 18, United States Code, Section 844(1). If convicted of the charge, Julius faces a mandatory 5-year prison term and could be imprisoned for up to 20 years. He also faces a fine of up to $250,000.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Green Bay Fire Department and the Green Bay Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Garryowen woman sentenced for running over, killing manRead the Press Release
BILLINGS—A Garryowen woman who admitted killing a man by running over him with a minivan as he was walking along a road on the Crow Indian Reservation was sentenced today to 10 years in prison and to five years of supervised release, said U.S. Attorney Kurt Alme.
Vernelle Lynn Badbear, 36, pleaded guilty in October to second degree murder in the November 2016 death of the victim.
U.S. District Judge Susan Watters presided.
Court records filed by the prosecution said that a highway road painter found a body on Highway 451 near Wyola on Nov. 12, 2016. The body was identified through tattoos. Knowing that the deceased had been in a relationship with Badbear and lived nearby, law enforcement officers began an investigation with her.
Badbear initially told investigators she and the victim had argued on Nov. 4, he had left the house and that she had not seen him since. After further questioning, Badbear admitted she had run over the victim.
Badbear admitted that she got upset with the victim because he was drinking alcohol when he was supposed to watch the children. The victim left the house and began walking down the road. Badbear admitted driving after the victim in her minivan, hitting him and then running over him. An autopsy determined the cause of death was blunt force trauma consistent with having been hit and run over by a vehicle and that it would have taken some time for the victim to die.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI.
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Four Executives of Canadian Payment Processor Charged with Fraud and Money LaunderingRead the Press Release
Four individuals were charged with engaging in a massive fraud scheme in which their company processed payments from victims of numerous international mass-mail fraud campaigns, the Department of Justice announced.
Rosanne Day, 51; Robert Paul Davis, 63; Genevieve Renee Frappier, 49; and Miles Kelly, 55; each were charged in the District of Nevada with one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit money laundering, and multiple counts of mail fraud and wire fraud. Day and Davis were part-owners and the top managers of PacNet Services Ltd. (PacNet), a payment processing company based in Vancouver, British Columbia, Canada. Frappier was in charge of PacNet’s Marketing and Client Services departments, and Kelly oversaw PacNet’s Compliance Department.
The indictment alleges that PacNet, under the defendants’ direction, was the payment processor of choice for companies that mailed large volumes of fraudulent notifications designed to mislead victims into falsely believing they would receive a large amount of money, a valuable prize, or specialized psychic services upon payment of a fee. Many alleged victims were elderly or otherwise vulnerable. PacNet served as the middleman between banks and the fraudulent mailers – aggregating the checks, cash, and credit card payments collected by its clients, depositing the payments into PacNet-controlled bank accounts, and then distributing the funds as directed by the clients, according to the indictment.
“The defendants are charged with enriching themselves by helping fraudsters who took money from elderly and otherwise vulnerable victims,” said Assistant Attorney General Jody Hunt for the Department of Justice's Civil Division. “The United States Department of Justice will seek to hold accountable those who knowingly advance elder fraud schemes – including individuals outside our borders who enable fraudsters to move their ill-gotten gains into the banking system and benefit from their crimes.”
“As alleged in the indictment, numerous victims in Nevada were defrauded of money in connection with the defendants’ scheme, and at least one of PacNet’s fraudulent mass mail clients was located in Nevada,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone. If you’re a victim, I urge you to immediately file a complaint with the FTC at 877-FTC-HELP.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Delany DeLeon-Colon of the U.S. Postal Inspection Service’s Criminal Investigations Group. “We do this through traditional investigative methods to identify and stop the scammers, and consumer education, which is the best defense against criminals looking for easy money. Investigations like this one let the American public – especially our vulnerable population – know that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail.”
From 1994 until Sept. 22, 2016, PacNet processed payments for a variety of clients, including mass-mail clients who sent fraudulent notifications to consumers in the United States and around the world, according to the indictment. Several individuals involved in operating mass-mail companies that processed payments through PacNet have been convicted of federal fraud charges during the last two years.
The indictment alleges that the defendants knew that multiple PacNet mass-mail clients obtained payments from victims through fraudulent notifications and nonetheless approved depositing those payments into U.S. bank accounts, allowing the clients to benefit from the fraud. Day, who was in charge of PacNet’s Vancouver headquarters, and Davis, who oversaw PacNet’s office in Shannon, Ireland, each earned approximately $15 million in Canadian dollars from 2013 through 2015, the last three full years that PacNet was in operation, according to the indictment.
PacNet’s policies required mass-mail clients to submit sample notifications to PacNet for review. The indictment alleges that the defendants approved processing for fraudulent notifications that had been submitted, in some situations approved processing for fraudulent notifications that had not been submitted, and at other times condoned the continued processing for mass-mail clients who were sending different, even more fraudulent notifications than what PacNet had approved.
Davis, who identified himself as PacNet’s general counsel, opened post office boxes in the United Kingdom to which certain PacNet mass-mail clients directed victim payments be sent, according to the indictment. The indictment alleges that Davis, who was a pilot, at times flew to the United Kingdom to pick up the mail and transport it to Ireland, where the mail was opened and the checks, cash, and other payments were processed. The indictment further alleges that on several occasions Davis flew to the Netherlands to pick up cash from facilities that were receiving mail for certain PacNet mass-mail clients. Davis then flew the cash to Ireland, according to the indictment.
Each charge carries a maximum penalty of 20 years in prison. The indictment contains only accusations against the defendants and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
The criminal charges are the result of an investigation conducted by the United States Postal Inspection Service, which through official requests received assistance from the Vancouver Police Department, Canada’s Competition Bureau, Ireland’s Criminal Assets Bureau, the United Kingdom’s National Crime Agency, and the Netherlands’ Fiscal Information and Investigation Service.
Senior Litigation Counsel Patrick Jasperse of the Department’s Consumer Protection Branch is prosecuting the case with assistance from Assistant United States Attorney Nicholas Dickinson of the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has provided critical support.
Four Executives of Canadian Payment Processor Charged with Fraud and Money LaunderingRead the Press Release
LAS VEGAS, Nev. – Four individuals were charged with engaging in a massive fraud scheme in which their company processed payments from victims of numerous international mass-mail fraud campaigns, the Department of Justice announced.
Rosanne Day, 51; Robert Paul Davis, 63; Genevieve Renee Frappier, 49; and Miles Kelly, 55; each were charged in the District of Nevada with one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit money laundering, and multiple counts of mail fraud and wire fraud. Day and Davis were part-owners and the top managers of PacNet Services Ltd. (PacNet), a payment processing company based in Vancouver, British Columbia, Canada. Frappier was in charge of PacNet’s Marketing and Client Services departments, and Kelly oversaw PacNet’s Compliance Department.
The indictment alleges that PacNet, under the defendants’ direction, was the payment processor of choice for companies that mailed large volumes of fraudulent notifications designed to mislead victims into falsely believing they would receive a large amount of money, a valuable prize, or specialized psychic services upon payment of a fee. Many alleged victims were elderly or otherwise vulnerable. PacNet served as the middleman between banks and the fraudulent mailers – aggregating the checks, cash, and credit card payments collected by its clients, depositing the payments into PacNet-controlled bank accounts, and then distributing the funds as directed by the clients, according to the indictment.
“The defendants are charged with enriching themselves by helping fraudsters who took money from elderly and otherwise vulnerable victims,” said Assistant Attorney General Jody Hunt for the Department of Justice's Civil Division. “The United States Department of Justice will seek to hold accountable those who knowingly advance elder fraud schemes – including individuals outside our borders who enable fraudsters to move their ill-gotten gains into the banking system and benefit from their crimes.”
“As alleged in the indictment, numerous victims in Nevada were defrauded of money in connection with the defendants’ scheme, and at least one of PacNet’s fraudulent mass mail clients was located in Nevada,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone. If you’re a victim, I urge you to immediately file a complaint with the FTC at 877-FTC-HELP.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Delany DeLeon-Colon of the U.S. Postal Inspection Service’s Criminal Investigations Group. “We do this through traditional investigative methods to identify and stop the scammers, and consumer education, which is the best defense against criminals looking for easy money. Investigations like this one let the American public – especially our vulnerable population – know that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail.”
From 1994 until Sept. 22, 2016, PacNet processed payments for a variety of clients, including mass-mail clients who sent fraudulent notifications to consumers in the United States and around the world, according to the indictment. Several individuals involved in operating mass-mail companies that processed payments through PacNet have been convicted of federal fraud charges during the last two years.
The indictment alleges that the defendants knew that multiple PacNet mass-mail clients obtained payments from victims through fraudulent notifications and nonetheless approved depositing those payments into U.S. bank accounts, allowing the clients to benefit from the fraud. Day, who was in charge of PacNet’s Vancouver headquarters, and Davis, who oversaw PacNet’s office in Shannon, Ireland, each earned approximately $15 million in Canadian dollars from 2013 through 2015, the last three full years that PacNet was in operation, according to the indictment.
PacNet’s policies required mass-mail clients to submit sample notifications to PacNet for review. The indictment alleges that the defendants approved processing for fraudulent notifications that had been submitted, in some situations approved processing for fraudulent notifications that had not been submitted, and at other times condoned the continued processing for mass-mail clients who were sending different, even more fraudulent notifications than what PacNet had approved.
Davis, who identified himself as PacNet’s general counsel, opened post office boxes in the United Kingdom to which certain PacNet mass-mail clients directed victim payments be sent, according to the indictment. The indictment alleges that Davis, who was a pilot, at times flew to the United Kingdom to pick up the mail and transport it to Ireland, where the mail was opened and the checks, cash, and other payments were processed. The indictment further alleges that on several occasions Davis flew to the Netherlands to pick up cash from facilities that were receiving mail for certain PacNet mass-mail clients. Davis then flew the cash to Ireland, according to the indictment.
Each charge carries a maximum penalty of 20 years in prison. The indictment contains only accusations against the defendants and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
The criminal charges are the result of an investigation conducted by the United States Postal Inspection Service, which through official requests received assistance from the Vancouver Police Department, Canada’s Competition Bureau, Ireland’s Criminal Assets Bureau, the United Kingdom’s National Crime Agency, and the Netherlands’ Fiscal Information and Investigation Service.
Senior Litigation Counsel Patrick Jasperse of the Department’s Consumer Protection Branch is prosecuting the case with assistance from Assistant United States Attorney Nicholas Dickinson of the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has provided critical support.
Four Assistant United States Attorneys, One Paralegal and Three Law Enforcement Partners Recognized by Deputy Attorney General for Their Work on EDNY CasesRead the Press Release
WASHINGTON – Four Assistant United States Attorneys (AUSAs) from the Eastern District of New York (EDNY), one paralegal, and three law enforcement partners were among those recognized by Deputy Attorney General Jeffrey Rosen and Director James Crowell, IV, of the Executive Office for U.S. Attorneys (EOUSA), at the 35th Director’s Awards Ceremony today in Washington D.C. The EDNY was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Deputy Attorney General Rosen told the awardees, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
EOUSA Director Crowell said, “The Department of Justice is in truth a deployed force. Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy. As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”
Immigration Litigation
AUSA Joseph A. Marutollo was recognized for his exemplary performance in leading the district’s demanding civil immigration practice. Since his appointment as Chief of Immigration Litigation in May 2017, AUSA Marutollo has exhibited exceptional dedication in overseeing more than 800 affirmative and defensive immigration cases and in managing a host of putative class-actions in cases of national significance. He has demonstrated remarkable initiative in taking on key roles in defending challenges to national immigration policies, including high-profile actions seeking to enjoin the rescission of the Deferred Action for Childhood Arrivals, the termination of Temporary Protected Status designations and the use of immigration detainers. Additionally, AUSA Marutollo has creatively and successfully defended the government in a variety of cases at trial and on appeal, and Second Circuit and District Court judges have recognized his advocacy skills. AUSA Marutollo serves as a model of excellence in the handling of the district’s important immigration litigation.
U.S. v. alFarekh
AUSAs Richard Tucker, Douglas Pravda and Saritha Komatireddy, Counterterrorism Section Trial Attorney Alicia Cook, Paralegal Specialist Wayne Colon, Federal Bureau of Investigation Acting Supervisory Special Agent Shawn Dolinar and New York City Police Department Detective John Darino were recognized for their outstanding performance in the prosecution and conviction of Muhanad alFarekh. al-Farekh, a U.S. citizen who left college and traveled to the Federally Administered Tribal Areas of Pakistan, participated in a vehicle-borne improvised explosive device attack against a U.S. military base in Khost, Afghanistan, in 2009, and eventually ascended to a leadership role in alQaeda’s external operations group. The investigation took the team around the globe to locales such as Afghanistan and Morocco. They deposed an al-Qaeda facilitator in a Middle Eastern country under grueling conditions to secure critical testimony. They introduced battlefield forensic evidence and computer media acquired in Afghanistan under highly sensitive circumstances. The team also successfully litigated a variety of unprecedented and classified issues. Their victory after a three-week trial in September 2017 resulted in a 45-year prison sentence imposed in March 2018.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao. For more information about the United States Attorney’s Office for the Eastern District of New York, visit www.justice.gov/usao/nye.Former UC Santa Cruz Student Indicted for Possessing LSD, MDMA, and Psilocybin Mushrooms for SaleRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Matthew Wilcox Hutchings today, charging him with possession with intent to distribute controlled substances, announced United States Attorney David L. Anderson and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
The three-count indictment alleges that on or about May 7, 2019, Hutchings, 24, of Soquel, possessed with the intent to distribute LSD (distribute lysergic acid diethylamide), MDMA (3,4 methylenedioxymethamphetamine or Molly), and psilocybin mushrooms.
An affidavit filed by an agent with Homeland Security Investigations in connection with a previously-filed criminal complaint in the case alleged that Hutchings sold psilocybin mushrooms and MDMA to an undercover agent on three occasions in March and April of 2019. On May 7, 2019, UC Santa Cruz police and others executed a search warrant at Hutchings’ residence. The indictment charges Hutchings with three counts of possession with intent to distribute controlled substances, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C).
Hutchings was arrested on June 4, 2019, and currently remains in federal custody. His next court appearance is scheduled for June 24 2019, before U.S. Magistrate Judge Susan van Keulen for a status conference.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years prison time, and a fine of $1,000,000, on each count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting the case with the assistance of Elise Etter and Nina Burney. The prosecution is the result of an investigation by HSI and the University of California Santa Cruz Police Department.
Former President of Our Lady of the Lake Foundation Pleads Guilty in Federal Court to Wire Fraud and Money LaunderingRead the Press Release
United States Attorney Brandon J. Fremin announced today that JOHN PAUL FUNES, age 49, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to wire fraud and money laundering. As a result of his conviction, FUNES faces a significant term of imprisonment, a fine, and a period of supervised release.
According to admissions made during his plea, FUNES executed a scheme to defraud Our Lady of the Lake Foundation (the “Foundation”), a non-profit organization that supports the Our Lady of the Lake Regional Medical Center, and caused a loss of more than $550,000. FUNES prepared, signed, and submitted payment vouchers that caused the Foundation's accounting personnel to issue checks for the payees, amounts, and purposes reflected on the vouchers. Because of his position at the Foundation, FUNES could approve his own vouchers, which enabled him to submit dozens of false and fraudulent vouchers that misrepresented the purpose of the checks. In furtherance of the scheme, for example, FUNES submitted numerous fraudulent vouchers in which he represented that Foundation funds were necessary to pay a charter flight company to make time-sensitive “outbound patient transports” from Our Lady of the Lake Children’s Hospital, when in fact FUNES was repeatedly using the flight company's services for his own personal benefit, unbeknownst to the Foundation. As another example, FUNES submitted numerous vouchers in which he fraudulently represented that funds were necessary to purchase gift cards that would be provided to cancer patients, when in fact FUNES often used the cards for his own personal benefit. The Bill of Information also alleges that, on numerous occasions, after fraudulently causing the Foundation to issue payments to other individuals, FUNES would direct those individuals to funnel the majority of the funds back to him, by check or money order, thereby conducting financial transactions designed in part to conceal proceeds of the fraudulent scheme. According to the Bill, in August of 2018, when the Foundation’s finance department began an internal audit of the expenses described above, FUNES created numerous false documents in an effort to conceal the scheme.
U.S. Attorney Brandon J. Fremin stated, “This conviction makes evident our willingness to prosecute anyone who violates the trust of their employers by unjustly enriching themselves through fraudulent schemes. Not only did Mr. Funes betray his employer and the many benevolent donors whose generosity fueled the mission of the Foundation but he also betrayed the trust of the many great people served by the Foundation. Great credit goes to our prosecutor, the Secret Service, the FBI, and the IRS-CI whose investigative efforts and close collaboration with the Foundation made this conviction possible.”
Tara McLeese, Resident Agent in Charge of the Secret Service in Baton Rouge said, “I would like to commend the hard work and dedication of the attorneys from the United States Attorney’s Office and the investigators involved in this case.”
FBI Special Agent in Charge Eric J. Rommal stated, “Today’s guilty plea illustrates that individuals who take advantage of positions of trust for personal financial gain will be held accountable by the FBI and our law enforcement partners.”
Thomas Holloman, Special Agent in Charge, IRS – Criminal Investigation, stated, “The Special Agents of IRS-CI play a vital role in the investigation of white collar crimes such as those committed by the defendant. They ultimately unraveled Mr. Funes’ attempts to conceal his embezzlement of the Foundation proceeds despite his use of nominees and other unscrupulous means. IRS-Criminal Investigation is committed to holding accountable those individuals who violate the public trust, and use public funds as their personal piggy bank.”
This investigation is being led by the United States Secret Service with valuable assistance from the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division. This matter is being prosecuted by Assistant United States Attorney Alan Stevens, who also serves as Deputy Criminal Chief.
Former Pittsfield Attorney Sentenced for Bulk Cash SmugglingRead the Press Release
BOSTON – A former Pittsfield attorney was sentenced yesterday in federal court in Springfield for smuggling $125,000 into the United States from Bermuda.
John Castiglione, 75, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year of probation and forfeiture of $125,000. On March 22, 2019, Castiglione pleaded guilty to one count of bulk cash smuggling. According to the terms of his plea agreement, Castiglione agreed to resign from the practice of law and to never again seek admission to the bar.
On approximately May 2, 2014, Castiglione attempted to mail two packages containing $60,000 and $65,000 from Bermuda to his residence in Pittsfield, with the intent to evade federal reporting requirements concerning the cash. After law enforcement officers seized the packages in the United States, they interviewed Castiglione, who admitted that he was aware of the federal reporting requirements but had attempted to smuggle the money into the United States because, in part, he did not want to pay any taxes and fees. In addition, Castiglione also provided various contradictory statements regarding the origin of the $125,000, including a false statement that the money might have been owned by a client of his law practice, when he knew that the money actually belonged to his family.
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 Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Former Medical Director and Two Former Operators of a Houston Medical Clinic Charged in Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
A medical director and two operators of a Houston, Texas, medical clinic were charged in an indictment unsealed today for their alleged participation in a multimillion-dollar health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Kristie K. Osswald of the Railroad Retirement Board Office of Inspector General (RRB-OIG) Chicago Regional Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Douglas Sharp, D.O., 69, of Katy, Texas, the medical director of Verimed Health and Medical Wellness Clinic Inc. (Verimed); Innad Husaini, M.D., 64, of Sugar Land, Texas, the owner and operator of Verimed; and Hanh Hong Thi Nguyen, 43, of Houston, the former operator of Verimed, were each charged in an indictment filed in the Southern District of Texas. Sharp, Husaini and Nguyen were each charged with one count of conspiracy to commit health care fraud. In addition, Sharp was charged with three counts of false statements relating to health care matters, Husaini was charged with three counts of health care fraud and Nguyen was charged with two counts of health care fraud. The three defendants were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Peter Bray of the Southern District of Texas. A trial date has not yet been set.
The indictment alleges that the defendants participated in a health care fraud scheme by which they submitted false and fraudulent claims to Medicare and Medicaid for home health care services, diagnostic tests and eye procedures, including injections into the eye, that were medically unnecessary, not provided or both. Nguyen allegedly ordered diagnostic tests on and conducted physical examinations of patients, even though she was not a licensed medical professional.
The indictment alleges that the defendants submitted or caused the submission of approximately $16 million in fraudulent claims to Medicare and Medicaid. Medicare paid approximately $12.2 million on those claims. Medicaid paid approximately $67,000 on those claims. The indictment also seeks the forefeiture of two properties owned by Nguyen and one property owned by Husaini, which were paid for, at least in part, using proceeds of the alleged fraud.
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, HHS-OIG and the MFCU. Trial Attorney Catherine Wagner of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Kathryn Olson of the Southern District of Texas, on detail from the MFCU, 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.
Former Massachusetts State Trooper Sentenced in Overtime Abuse InvestigationRead the Press Release
BOSTON – A former Massachusetts State Police Trooper was sentenced today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Gary Herman, 45, of Chester, was sentenced by U.S. Senior District Court Judge Rya W. Zobel 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 in the amount of $12,468. In October 2018, Herman pleaded guilty to one count of embezzlement from an agency receiving federal funds.
Herman was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Herman earned $227,826, which included approximately $63,053 in overtime pay.
Herman was paid for overtime shifts that he did not work at all or from which he left early. Herman concealed his abuse by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts. On multiple occasions Herman fabricated bogus citations, copying driver information from citations that he had issued months earlier, in order to be paid for overtime that he did not work at all. In 2016, Herman collected $12,468 for overtime that he did not work.
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.
Herman is the sixth trooper to be sentenced. In June 2019, retired Lieutenant David Wilson was sentenced to one day (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 (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. Retired Troopers Daren DeJong and Paul Cesan have pleaded guilty and are 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.
Former Hadley, Massachusetts, Police Officer Sentenced for Using Excessive Force and Obstructing InvestigationRead the Press Release
A former Hadley Police Department Officer was sentenced today in federal court in Springfield, Massachusetts, for using unreasonable force during an arrest and then falsifying a police report of the incident.
Christopher M. Roeder, 50, of Agawam, Massachusetts, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison. In February 2019, after a week-long trial, a federal jury found Roeder guilty of one count of deprivation of rights under color of law and one count of falsification of a document.
Evidence presented at trial established that, on April 3, 2017, Roeder struck an arrestee in the face without legal justification, while the arrestee was seated on a bench in the Hadley Police Department booking area. The strike fractured the arrestee’s nose in multiple places and required surgery to repair. Roeder subsequently attempted to obstruct the investigation into his assault of the arrestee by falsifying his police report describing the incident.
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said Assistant Attorney General Eric Dreiband. “Roeder abused his power and violated the constitutional rights of an arrestee, eroding the public’s trust in law enforcement. The Department of Justice will continue to hold law enforcement officers accountable for their actions.”
“Officers aren’t only expected to enforce the law in their communities, they are expected to follow it themselves,” said U.S. Attorney Andrew E. Lelling. “In this case, an officer broke a man’s nose for no legitimate purpose and then, in an effort to cover up the attack, falsified official documents about the incident. This behavior is unacceptable in someone entrusted with protecting the public safety.”
“As a police officer sworn to uphold the law, Mr. Roeder’s conduct deliberately abused the authority bestowed upon him, undermining the integrity of our criminal justice system,” said Special Agent in Charge Joseph R. Bonavolanta of the FBI Boston Division. “The overwhelming majority of law enforcement officers perform their duties with dedication and integrity, putting their lives on the line every day to keep our communities safe. This case illustrates the FBI’s commitment and ability to address isolated incidents where officers betray the badge and the public’s trust.”
Assistant Attorney General Dreiband; U.S. Attorney Lelling; and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office and Trial Attorney Timothy Visser of the Department of Justice’s Civil Rights Division prosecuted the case.
Former Hadley Police Officer Sentenced for Using Excessive Force and Obstructing InvestigationRead the Press Release
BOSTON – A former Hadley Police Department officer was sentenced today in federal court in Springfield for using unreasonable force during an arrest and then falsifying a police report of the incident.
Christopher M. Roeder, 50, of Agawam, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison and one year of supervised release. In February 2019, after a week-long trial, a federal jury found Roeder guilty of one count of deprivation of rights under color of law and one count of falsification of a document.
Evidence presented at trial established that, on April 3, 2017, Roeder struck an arrestee in the face without legal justification, while the arrestee was seated on a bench in the Hadley Police Department booking area. The strike fractured the arrestee’s nose in multiple places and required surgery to repair. Roeder subsequently attempted to obstruct the investigation into his assault of the arrestee by falsifying his police report describing the incident.
“Officers aren’t only expected to enforce the law in their communities, they are expected to follow it themselves,” said U.S. Attorney Andrew E. Lelling. “In this case, an officer broke a man’s nose for no legitimate purpose and then, in an effort to cover up the attack, falsified official documents about the incident. This behavior is unacceptable in someone entrusted with protecting the public safety.”
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said Assistant Attorney General Eric Dreiband. “Roeder abused his power and violated the constitutional rights of an arrestee, eroding the public’s trust in law enforcement. The Department of Justice will continue to hold law enforcement officers accountable for their actions.”
“As a police officer sworn to uphold the law, Mr. Roeder’s conduct deliberately abused the authority bestowed upon him, undermining the integrity of our criminal justice system,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office. “The overwhelming majority of law enforcement officers perform their duties with dedication and integrity, putting their lives on the line every day to keep our communities safe. This case illustrates the FBI’s commitment and ability to address isolated incidents where officers betray the badge and the public’s trust.”
U.S. Attorney Lelling, Assistant Attorney General Dreiband, and FBI Boston SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of Lelling’s Springfield Branch Office, and Trial Attorney Timothy Visser of the Department of Justice’s Civil Rights Division prosecuted the case.
Former District of Columbia Attorney Previously Found Guilty of $2 Million Investment Fraud Scheme Pleads Guilty to Not Filing Tax ReturnRead the Press Release
A former attorney recently convicted of securities fraud by a jury in the District of Columbia, pleaded guilty today to failure to file an income tax return and pay taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Brynee Baylor pleaded guilty today to one count of willfully failing to timely file a 2010 individual income tax return and to pay taxes. She admitted to causing a tax loss of $79,000.
On April 30, 2019, the jury convicted Baylor of one count of conspiracy to commit securities fraud, one count of securities fraud, and five counts of first-degree fraud under District of Columbia law.
According to court documents and the evidence presented at trial, Baylor, a former partner in the D.C. law firm Baylor & Jackson PLLC, conspired with a Pennsylvania man and his company, known as the Milan Group, to recruit investors to a purported trading program. Investors were promised extremely large profits in a short time with little or no risk.
In 2011, the Securities and Exchange Commission (SEC) sued Baylor and others for fraud in connection with the purported trading program.
Sentencing is scheduled for Sept. 12. Baylor faces a maximum sentence of one year in prison for the failure to file a tax return conviction, five years in prison for the conspiracy count, 20 years in prison for the securities fraud count, and 10 years in prison for each of the first-degree fraud counts. Baylor also faces a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked the SEC for its invaluable assistance and commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey McLellan and Eric Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Sentenced to 20 Years for Receipt of Child PornographyRead the Press Release
Orlando, FL –U.S. District Judge Paul G. Byron has sentenced Randy Dale Land (58, Orlando) to 20 years in federal prison for receipt of child pornography. Land had pleaded guilty on March 28, 2019.
According to court documents, on January 4, 2019, Land requested pictures of an undercover FBI agent’s notional nine-year-old daughter. As their conversation continued, Land sent the undercover agent three videos of child pornography. Federal agents executed a search warrant at Land’s home and obtained his electronic devices. A forensic review of the devices revealed that Land had received images of child pornography through a chat application and that he possessed approximately 111 videos and 246 images of child pornography.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Alejandro J. Salicrup.
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.
Fifteen people indicted for their roles in a conspiracy to traffic fentanyl, heroin and crack cocaine in LorainRead the Press Release
Fifteen people were indicted for their roles in a conspiracy to traffic fentanyl, heroin and crack cocaine in Lorain.
Indicted are: Cesar Francisco Melendez-Perez, 31, of Lorain; Erick Yamil Jiminez-Rodriguez, 30, of Manati, Puerto Rico; Xavier Robles-Cruz, 32, of the Bronx, New York; Freddie Sanchez, 32, of Lorain; Ramon Feliciano-Montanez, 29, of Sheffield Lake; Princeton Edwards, 29, of Columbus; Anthony Washington, 21, of Lorain; John Massey-Lovejoy, 37, of Lorain; Christopher Kovach, 29, of Parma; Jonas Pagan, 25, of Lorain; Jamie Pagan, 25, of Lorain; Thomas M. Parker, 29, of Lorain; Ricky Londa, 26, of Lorain; Bryce A. Babics, 30, of Lorain, and Toby Lewis, 24, of Elyria.
“These defendants sold opioids and cocaine for profit at a time when thousands of people across the country are dying, including people in Lorain County,” U.S. Attorney Justin Herdman said. “We have now indicted more than 80 people on the federal level as part of Operation S.O.S. and remain committed to working collaboratively to address the drug overdose epidemic. The message should be clear to would-be drug dealers in Lorain County – if you sell illegal narcotics, you are going to be prosecuted by the feds.”
DEA Acting Special Agent in Charge Keith W. Martin said: “These arrests will make Lorain County safer. This group is responsible for selling large amounts of fentanyl, heroin and crack in our community.”
“We have always been appreciative of the level of cooperation between the local, State, and Federal law enforcement agencies in this area in combating the drug issues that plague our communities,” Lorain Police Department Captain Roger Watkins said.
Elyria Police Department Chief Duane Whitely said: “The SOS project through the U.S. Attorney's Office has been very successful for all of Lorain County. We are very grateful for the efforts of all the federal agencies to help us fight the heroin/ fentanyl crisis.”
According to the 43-count indictment, filed in U.S. District Court:
Melendez-Perez, Robles-Cruz and Jiminez-Rodriguez allegedly worked together to purchase large quantities of heroin, fentanyl and cocaine, which they would distribute to other dealers in Cleveland, Lorain, Arkansas and Pennsylvania.
Feliciano-Montanez, Edwards, Sanchez and Kovach allegedly obtained large quantities of heroin, fentanyl and cocaine from Melendez-Perez, which they redistributed in and around Lorain. Edwards and Feliciano-Montanez also distributed fentanyl, heroin and cocaine to other traffickers in Lorain, including Massey-Lovejoy, Washington, Babics and Lewis.
Members of the conspiracy cooked cocaine into crack cocaine for further distribution to customers in Lorain, according to the indictment.
Several members of the conspiracy were additionally charged with firearms violations.
Washington is charged with being a felon in possession of a firearm and possession of a firearm in relation to drug trafficking. He allegedly had a Springfield 9 mm handgun, despite previous convictions for domestic violence and drug trafficking.
Kovach is charged with being a felon in possession of a firearm for allegedly having a Kahr .380-caliber handgun, despite a previous conviction for felonious assault.
Melendez-Perez is charged with being a felon in possession of a firearm for allegedly having a Diamondback 9 mm handgun, despite a previous conviction for domestic violence.
Lewis is charged with being a felon in possession of a firearm and possession of a firearm in relation to drug trafficking for allegedly having a Glock .40-caliber handgun, despite previous convictions for domestic violence, drug charges and other crimes.
The cases were investigated as part of Operation Synthetic Opioid Surge (S.O.S.), which seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers. Lorain County was selected as a pilot site for Operation S.O.S. More than 80 people have been indicted as part of the program to date. The DEA, Lorain Police Department, Elyria Police Department and the Lorain County Sheriff’s Office Drug Task Force participate in the SOS program.
This case was investigated by the DEA, Lorain Police Department, and the Elyria Police Department. It is being prosecuted by Assistant U.S. Attorney Vasile Katsaros.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Felon Sentenced to Federal Prison for Illegally Possessing FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man has been sentenced to federal prison for illegally possessing a firearm during a high speed pursuit in a stolen vehicle during which he fired shots from a sawed-off shotgun.
Tony Tuaato, 25, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason to serve 110 months in prison, followed by three years of supervised release. In February 2019, Tuaato pleaded guilty to one count of felon in possession of a firearm. Tuaato has a previous felony conviction in California for unlawful taking or driving of a vehicle. As someone convicted of a felony offense, Tuaato was prohibited from possessing firearms.
According to court documents, on Sept. 21, 2017, Tuaato was at a residence in Mountain View when Alex Lemana and another passenger arrived in a stolen white Chevrolet Suburban. Knowing that police were in the area, Tuaato and others decided to move the stolen Suburban away from the residence. Tuaato got into the front passenger seat, Lemana was driving, and a third passenger was in the back seat. Tuaato brought an illegal sawed-off shotgun with him and Lemana brought a pistol.
As they were leaving the area, an APD patrol vehicle started to pursue them, which led to a high-speed chase. During the pursuit, the Suburban rammed one of the patrol cars, deploying the officer’s air bag and causing both vehicles to come to a stop. Lemana was able to continue driving the damaged Suburban, reaching 80 mph through Mountain View, while he and Tuaato fired shots at pursuing police. Tuaato, Lemana, and the third passenger abandoned the Suburban near 9th and L Street downtown and ran. Lemana and the third passenger were caught nearby and taken into custody, however Tuaato continued to flee and avoided apprehension. At the time, officers did not know Tuaato’s identity.
Tuuato’s sawed-off shotgun was found on the floor of the front passenger side of the vehicle with a spent casing nearby. Subsequent investigation revealed that a palm print on the sawed-off shotgun belonged to him.
At the sentencing hearing, Judge Gleason observed that Tuaato’s crime put the community at serious risk, although Tuaato had not acknowledged that risk to date. The Court noted that Tuaato had a history with stolen vehicles, firearms, and methamphetamine, which are a dangerous combination warranting deterrence.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Aunnie Steward.
Federal Indictment in Local Bomb Threat InvestigationRead the Press Release
PENSACOLA, FLORIDA – Noah D. Stirn, 24, formerly housed at the Blackwater River Correctional Facility in Milton, Florida, was indicted on federal charges related to issuing threatening communications involving explosives and mailing threatening communications to injure others. The charges were announced by Lawrence Keefe, United States Attorney for the Northern District of Florida. Stirn is now in federal custody.
The indictment alleges that in April and May 2019, while incarcerated by the State of Florida at Blackwater River Correctional Facility, Stirn mailed multiple letters to federal and state agencies that threatened the use of explosive devices to harm those in the local buildings. The indictment alleges that Stirn asserted that the attacks were "for the cause of the Islamic State." It is also alleged that Stirn threatened the use of "C4" and "car bombs."
Stirn will have his arraignment in federal court on the charges on June 25, 2019, at 2:00 pm, before United States Magistrate Judge Hope T. Cannon.
This case resulted from an investigation by the Federal Bureau of Investigation, the United States Marshals Service, the Florida Department of Law Enforcement Capitol Police, the Pensacola Police Department, and the Tallahassee Police Department. Assistant United States Attorneys David L. Goldberg and Michelle K. Daffin are prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Federal Charges Filed in Overdose Death of College Football PlayerRead the Press Release
HOUSTON – A 26-year-old Katy man has been charged with conspiring to distribute and possessing with intent to distribute a powerful opioid analogue, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the three-count indictment June 19, 2019, against Stuart Mouchantaf. Authorities took him into custody today. He is expected to make his initial appearance before U.S. Magistrate Judge Peter Bray tomorrow at 10:00 a.m.
The indictment alleges Mouchantaf conspired to distribute and possessed with intent to distribute a powerful opioid analogue known as carfentanil which resulted in the death of an otherwise healthy athlete in March 2018. Mouchantaf allegedly possessed the deadly drug with the intent to distribute it on Rice University’s campus the day before the victim’s body was found.
At the time, the victim was a star player with NFL aspirations, according to the allegations.
Carfentanil is not approved for human use. According to the Centers for Disease Control and Prevention, it is intended for sedation of large animals and is the most potent fentanyl analog detected in the United States. Carfentanil is estimated to have 10,000 times the potency of morphine and has recently been reported in an alarming number of deaths in some states.
If you believe you or someone you know has been affected by any narcotics Mouchantaf distributed, please contact the Houston Police Department at 713-308-3300.
The Houston Police Department and the Harris County Institute of Forensic Sciences conducted the investigation with the assistance of the Drug Enforcement Administration.
Assistant U.S. Attorneys Jason Corley and Robert Stabe are prosecuting the case.
A indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Federal Authorities Dismantle Large Drug Trafficking OrganizationRead the Press Release
PITTSBURGH, PA – 35 residents of Western Pennsylvania, one resident of New York, and one resident of West Virginia have been indicted by a federal grand jury in Pittsburgh on charges of drug trafficking and firearms violations, United States Attorney Scott W. Brady announced today.
The Indictment, returned on June 18 and unsealed today, names the following 37 individuals as defendants:
• Christopher Highsmith, 26, of Irwin, PA
• Lamont Benton, 23, of McKees Rocks, PA
• Michael Broglie, 51, of Finleyville, PA
• Jarrell Dawson, 20, of Pittsburgh, PA
• Latone Dunbar, 25, formerly of Pittsburgh, PA
• John Fedorka, 35, of Pittsburgh, PA
• Roderick Ferguson, 18, of Pittsburgh, PA
• Perry Freeman, 18, formerly of Pittsburgh, PA
• Laffayette Fuller, 19, of Pittsburgh, PA
• Lequay Fuller, 22, of Pittsburgh, PA
• Dontae Gilbert, 18, formerly of Pittsburgh, PA
• James Givner, 35, of Pittsburgh, PA
• Deandre Gordon, 24, of West Mifflin, PA
• Brandon Green, 34, of Pittsburgh, PA
• Kyleif Harley, 27, of Pittsburgh, PA
• Robert Hartlaub, 32, of Waynesburg, PA
• Keevan Jackson, 20, of Pittsburgh, PA
• Anthony Jetter, 30, of Pittsburgh, PA
• Henry Johnson, 28, of Pittsburgh, PA
• Nicholas Laur, 39, of Pittsburgh, PA
• Trevon McCrary, 24, of Pittsburgh, PA
• Danasia McNeal, 21, of Pittsburgh, PA
• Willie Miller, 27, of Pittsburgh, PA
• Devonte Parker, 24, of Pittsburgh, PA
• April Price, 21, of Pittsburgh, PA
• Jaimone Robinson, 19, of Pittsburgh, PA
• Amber Rogers, 27, of Pittsburgh, PA
• Brian Salaj, 37, of Pittsburgh, PA
• Ronika Somerville, 22, of Pittsburgh, PA
• Theresa Somerville, 49, of Pittsburgh, PA
• Raelynn Stevenson, 29, of West Mifflin, PA
• Rico Taylor, 34, of Pittsburgh, PA
• Jesse Tedrow, 27, of Hundred, WV
• Holiday Vaughn, 41, of New York
• Ronald Williams, 26, of Pittsburgh, PA
• St. John Williams, 27, of Pittsburgh, PA
• Martel Yates, 30, of Pittsburgh, PA
According to the Indictment, the defendants conspired to distribute and distribute over 1 kilogram of heroin, at least 400 grams of fentanyl, and fentanyl analogs, cocaine, and cocaine base, commonly known as crack, from January 2018 through June 2019. The Indictment further alleges individual firearms charges and/or drug trafficking violations against Latone Dunbar, John Fedorka, Dontae Gilbert, Trevon McCrary, James Givner, Henry Johnson, Jaimone Robinson, Holiday Vaughn, and Ronald Williams.
For all defendants, the law provides for a maximum total sentence of up to life imprisonment, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant United States Attorneys Christy C. Wiegand and Craig Haller are prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fairmont man admits to enticing minorsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Quionte Jordan Crawford, of Fairmont, West Virginia, has admitted to using his smart phone to convince minors to send explicit pictures and videos, United States Attorney Bill Powell announced.
Crawford, also known as “Kayla Stevens,” age 27, pled guilty to five counts of “Enticement of a Minor.” Crawford admitted to using his smart phone to persuade five different teenage boys to send sexual explicit pictures and videos to him. The crimes took place from November 2017 to December 2018 in Marion County.
Crawford is facing at least 10 years and up to life incarceration for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
U.S. Magistrate Judge Michael John Aloi presided.
Eight People Who Worked Together to Distribute Ice Methamphetamine in Dubuque Sentenced to Federal PrisonRead the Press Release
Eight people who, among other crimes, conspired to sell over three kilograms of ice methamphetamine in the Dubuque area have been sentenced cumulatively to more than 97 years in federal prison.
Keith Richard Ellis, age 36, from Dubuque, Iowa, was sentenced to 160 months’ imprisonment and 8 years’ supervised release following his May 25, 2018 guilty plea to conspiring to distribute methamphetamine.
Joshua Allen Carter, age 33, from Tucson, Arizona, was sentenced to 124 month’s imprisonment and 5 years’ supervised release following his May 21, 2018 guilty plea to conspiring to distribute methamphetamine.
Michael Scott Boen, age 26, from Potosi, Wisconsin, was sentenced to 42 months’ imprisonment and 4 years’ supervised release following his July 11, 2018 guilty plea to conspiring to distribute methamphetamine.
Melissa Marie Petesch, age 30, from Hazel Green, Wisconsin, was sentenced to 132 months’ imprisonment and 3 years’ supervised release following her June 12, 2018 guilty plea to conspiring to distribute methamphetamine, conspiring to commit money laundering, and possessing a firearm in furtherance of a drug trafficking crime.
Brenda Lynn Harker, age 40, from Dubuque, Iowa, was sentenced to 78 months’ imprisonment and 4 years’ supervised release following her August 2, 2018 guilty plea to conspiring to distribute methamphetamine and conspiring to commit money laundering.
Jose Juan Ceja, age 25, from Bell Gardens, California, was sentenced to 156 months’ imprisonment and 5 years’ supervised release following his June 28, 2018 guilty plea to conspiring to distribute methamphetamine.
Mauricio Bayardo Chan, age 21, from Tijuana, Baja California, Mexico, was sentenced to 300 months’ imprisonment and 5 years’ supervised release following his August 1, 2018 guilty plea to conspiring to distribute methamphetamine and conspiring to commit money laundering.
Samuel Oliver Taylor, III, age 41, from Dubuque, Iowa, was sentenced to 180 months’ imprisonment and 5 years’ supervised release following his August 6, 2018 guilty plea to conspiring to distribute methamphetamine, conspiring to commit money laundering, and possession of a firearm in furtherance of a drug trafficking crime
All eight defendants admitted they had conspired to distribute ice methamphetamine in the Dubuque area. Evidence presented at two of the sentencing hearings showed that Chan and Ceja, who represented themselves to be affiliated with the Sinaloa drug cartel, supplied ice methamphetamine from Mexico. Taylor acted as the primary local intermediary for the methamphetamine in Dubuque. At one point, Taylor provided Chan with a loaded firearm so Chan could “resolve a drug debt” with another individual. Shortly thereafter, Chan returned the firearm unloaded.
In October 2017, Ceja appeared at one of his co-conspirators’ residences looking to retrieve something from a prior shipment of methamphetamine. When the customer did not tell him the location of the methamphetamine, Ceja showed the customer videos of cartel members cutting off peoples’ hands and heads, and made threats against another member of the conspiracy. Chan had made similar threats in the past, showing a co-conspirator similar videos and stating that the only way out of dealing with him was “death or prison.”
All eight defendants were sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. There is no parole in the federal system.
The case was investigated by the Dubuque Drug Task Force, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation and prosecuted by Special Assistant United States Attorney Drew Inman and Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1002-LTS-MAR.
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East Bay Man Sentenced to Five Years in Prison for Receipt, Distribution, and Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Nicholas Alan Hodges was sentenced today to 60 months in prison for receiving, distributing, and possessing child pornography, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable William H. Orrick, U.S. District Judge.
Hodges, 30, of Oakland, pleaded guilty to the charges on February 7, 2019. In pleading guilty, Hodges admitted that between approximately August 2016, and March 24, 2017, he knowingly received and distributed through the Internet images and videos of minors engaged in sexually explicit conduct. Defendant acknowledged he used a social media application to engage in conversation with other individuals about child pornography and sent child pornography in chats to those individuals. In addition, Hodges admitted he possessed four flash drives and a cellular telephone containing visual depictions of minors engaged in sexually explicit conduct, some of which contained depictions of sadistic or masochistic conduct or other depictions of violence. Hodges admitted he possessed more than 600 videos and images of child pornography.
A federal grand jury indicted Hodges on June 29, 2017, charging him with one count each of receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2); distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2); and possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Hodges pleaded guilty to all three charges.
In addition to the prison term, Judge Orrick sentenced the defendant to a five-year period of supervised release. Judge Orrick ordered defendant to surrender to the Bureau of Prisons on August 24, 2019, to begin serving his prison term.
Assistant United States Attorneys Sailaja M. Paidipaty is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by HSI and the San Francisco Police Department.
EDVA Combats Elder Abuse and Financial ExploitationRead the Press Release
ALEXANDRIA, Va. – In recognition of World Elder Abuse Awareness Day, the U.S. Attorney’s Office for Eastern District of Virginia (EDVA) has recently participated in several community outreach and education events on elder abuse and financial exploitation.
“The financial and emotional harm these scams cause elderly victims and their family members can be utterly devastating,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Combatting elder abuse and financial fraud targeted at seniors remains a key priority for EDVA. We will not tolerate this criminal activity and will continue to prosecute these cases federally.”
Here in EDVA, Elder Justice efforts are being led by Assistant U.S. Attorney Kaitlin G. Cooke who today participated as an invited panelist at an Elder Abuse Workshop hosted by the Peninsula Agency on Aging in Williamsburg.
On June 12, Terwilliger was joined by Cooke and an Elder Justice representative from the U.S. Attorney’s Office for the District of Columbia at Alfred Street Baptist Church in Alexandria for a presentation to over 100 senior citizens on elder abuse.
In addition to educating the community on elder abuse, EDVA actively seeks to identify and prosecute elder abuse crimes. This year, our office joined the Peninsula Elder Abuse Forensic Center, an enhanced multidisciplinary task force focused on combatting elder abuse and neglect across several counties. Cooke joins law enforcement officers, commonwealth attorneys, certified public accounts, emergency responders, medical providers, adult protective services, and local agencies on aging twice a month to review cases of elder abuse and neglect.
As noted by Attorney General William P. Barr last week, fraud against the elderly is on the rise.
“One of the most significant and pernicious causes for this increase is foreign-based fraud schemes,” said Attorney General Barr.
To address the issue, the Department has created the Transnational Elder Fraud Strike Force.
“The Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
Below are summaries of several noteworthy elder abuse cases recently prosecuted in EDVA. For more information on a particular case, please click the link for the full press release on our website.
- United States v. Edward Lee Moody, Jr. - Moody owned and operated an investment firm in Virginia Beach, CM Capital Management LLC, through which he solicited investors. In reality, Moody was running a Ponzi scheme. Over a 13-year period, he solicited and collected approximately $6.1 million from 53 investors, at least 13 of whom were elderly persons who liquidated assets from their existing, legitimate retirement accounts in order to provide funds to Moody that they expected him to invest on their behalf. Moody diverted investor moneys for his own benefit, buying property, traveling, and investing on his own behalf. Moody also used investor money to lull earlier investors and provided investors with fraudulent monthly account statements falsely indicating investments and earned returns. Moody was sentenced on February 5 to 13 years in prison and was ordered to pay over $4.8 million in restitution.
- United States v. Sandra Payne - Payne pleaded guilty to aggravated identity theft based on her theft of over $22,000 from an elderly victim. Payne was employed by the victim to provide home health care to the victim’s spouse. Over a five-month period, Payne used the victim’s credit and debit cards to make unauthorized purchases of personal goods at various retailers. Payne was sentenced on June 18 two years in prison for her crime.
- United States v. John Michael Gatchell – Gatchell pleaded guilty on April 18 to exploiting an elderly man’s diminished mental capacity to defraud him of nearly $157,000. Gatchell facilitated a marriage between the elderly man and a woman with whom Gatchell had a long-term relationship in order to gain access to the elderly man’s money and property. Gatchell induced the elderly man to make a down payment on a Jaguar that Gatchell and a family member drove for about 10 months before it was repossessed by the lender when the loan went into default. Gatchell also induced the elderly man to obtain two mortgage loans and then diverted most of the proceeds to the benefit of himself and others. He subsequently induced the elderly man to sell the property that secured the loans and again diverted most of the proceeds to himself and others. Gatchell used these fraudulently diverted monies to purchase concert series tickets, pay delinquent bills, and make a security deposit and advance rent payments for a house he leased, among other things. Gatchell faces a maximum penalty of 20 years in prison when sentenced on September 6.
- United States v. Nena Kerny Kochuga - Kochuga executed a Jamaican lottery scheme that targeted elderly victims, who she and conspirators would contact by phone. Kochuga told victims that they had won the lottery and were required to pay purported taxes and fees to claim the winnings. She directed victims to mail and wire money to her residential and post office box addresses in Virginia. Kochuga then sent money to conspirators in Jamaica and Ghana via Western Union wire transfers, keeping a portion for herself. Through this conduct, Kochuga and her conspirators defrauded numerous victims of at least $50,000. According to local media coverage, Kochuga has targeted elderly victims with similar lottery scams for most of the past decade. She has prior convictions in Virginia Beach Circuit Court and Colorado in connection with these schemes, and faces up to 20 years in prison when sentenced on September 30.
For information and resources on elder abuse or to report abuse, please visit DOJ’s Elder Justice Initiative website at: https://www.justice.gov/elderjustice.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dunbar Man Sentenced to Prison for Gun and Meth CrimesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Brandon Starr Clemons, 33, of Dunbar, was sentenced to 41 months in prison for distribution of methamphetamine and being a felon in possession of a firearm. Stuart commended the efforts of the Metropolitan Drug Enforcement Network Team (MDENT) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“No, it’s not Groundhog Day,” said United States Attorney Mike Stuart, “but, yes, we’ve convicted yet another felon caught with firearms and dealing meth and he’s going to prison for a substantial stay.”
Clemons pled guilty in March 2019, admitting that he sold methamphetamine to an MDENT informant in December 2016 and that he possessed two firearms at a residence in South Charleston when he was arrested on December 13, 2016. Clemons was prohibited from possessing the Lorcin, .380 and Hi-Point, 9mm pistols due to his having been convicted in Kanawha County Circuit Court of possession with intent to deliver a controlled substance in 2008.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
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