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Thursday 9 May 2019
U.S. Attorney Announces Charges Against Multimillion-Dollar Business Email Compromise SyndicateRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment against four defendants charged with conducting a wide-ranging business email compromise fraud scheme.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these four men and others engaged in a profitable charade, posing as legitimate business counterparties to their victims, whom they deceived into sending them millions of dollars. Now, thanks to the FBI, the defendants are no longer in a position to defraud anyone.”
FBI Assistant Director William F. Sweeney Jr. said: “The subjects in this alleged scheme made it look so realistic that they were able to maintain it for several years, stealing millions of dollars from the victims. This type of insidious fraud and cybercrime can do major harm to our financial system and the agency victims. Our job each day in the New York FBI is to mitigate the damage and assist agencies and businesses in thwarting the threat these criminals pose.”
As alleged in the Indictment unsealed yesterday in Manhattan federal court[1]:
During the relevant time period, CYRIL ASHU, a/k/a “Akem Maleke,” a/k/a “Zabi Malik,” a/k/a “Bill Zambia Morgan,” a/k/a “Anibal Vasquez Roblero,” a/k/a “Baker Lee Walter,” IFEANYI EKE, a/k/a “Luthur Mulbah Doley,” JOSHUA IKEJIMBA, a/k/a “Johnson Ifeanyi Gbono,” a/k/a “Alfred Henshaw,” a/k/a “Peterson Kamara Lawson,” a/k/a “Ganiru Paul Thompson,” and CHINEDU IRONUAH, a/k/a “John Akuba Annan,” a/k/a “Kenneth Kwame Emerson,” a/k/a “Andrew Kamsi Mong,” a/k/a “Emmanuel Mong,” a/k/a “George Wallace,” a/k/a “George Weah,” a/k/a “Frederick Werner,” the defendants, and others known and unknown, engaged in a fraudulent business email compromise (“BEC”) scheme designed to deceive various victims, including an intergovernmental organization headquartered in New York City, into diverting commercial payments from their intended beneficiaries to bank accounts controlled by the defendants and their co-conspirators.
The defendants executed this fraudulent scheme by, among other things, obtaining fraudulent identification documents in false names, registering and incorporating shell companies, and opening fake bank accounts at various banks throughout the United States. Victims were successfully tricked into wiring funds in accordance with fraudulent wiring instructions sent from fake email accounts, which were designed to resemble email accounts for individuals and companies with whom those victims had business relationships. The defendants defrauded numerous victims of millions of dollars during the period from 2016 through July 2018.
CYRIL ASHU and IFEANYI EKE were arrested yesterday morning in Atlanta, Georgia and presented in the Northern District of Georgia. JOSHUA IKEJIMBA was arrested yesterday afternoon in Houston, Texas, and will be presented the Southern District of Texas. One defendant, CHINEDU IRONUAH, remains at large.
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CYRIL ASHU, 34, of Georgia, IFEANYI EKE, 32, of Georgia, JOSHUA IKEJIMBA, 24, of Texas, and CHINEDU IRONUAH, 32, of Texas, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and one count of wire fraud, in violation of 18 U.S.C. § 1343. The charges of conspiracy to commit wire fraud and wire fraud each carry a maximum penalty of 20 years in prison. CYRIL ASHU is also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI, as well as the assistance of prosecutors in the Northern District of Georgia, the Southern District of Texas, and the Western District of Texas.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Olga Zverovich and Jarrod L. Schaeffer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two North Texas Doctors, One Nurse Sentenced to Prison for Federal Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – Three medical professionals have been sentenced to federal prison over the last week in the Eastern District of Texas for the illegal distribution of opioids and other pharmaceutical controlled substances, announced U.S. Attorney Joseph D. Brown today.
Today in federal court in Plano, Howard Gregg Diamond, 58, of Sherman, was sentenced to 20 years in federal prison for conspiracy to possess with intent to distribute controlled substances and 10 years in prison for health care fraud. The sentences, handed down by U.S. District Judge Marcia A. Crone, follow Diamond’s guilty plea in October of 2018 and will run concurrently.
According to information presented in court, beginning in 2010, Diamond wrote prescriptions for hydrocodone, oxymorphone, methadone, fentanyl, morphine, oxycodone, alprazolam, and zolpidem, from his pain management medical offices in Sherman and Paris, Texas without a legitimate medical purpose. Specifically, on July 15, 2014, Diamond distributed or dispensed morphine, oxycodone, alprazolam and zolpidem to an individual that resulted in that individual’s death on July 25, 2014. In addition to the death of that patient, Judge Crone received information that six other overdose deaths were connected to prescriptions written by Diamond between 2010 and 2017. The health care fraud conviction resulted from Diamond submitting a claim for reimbursement to Medicare claiming he treated a Medicare patient on Sep. 29, 2015, although he was in another state at that time. Diamond was indicted by a federal grand jury on July 6, 2017.
On May 3, former Richardson doctor Tad W. Taylor, 64, was sentenced to 20 years in federal prison by Judge Crone for conspiracy to distribute and dispense oxycodone, amphetamine salts, hydrocodone, alprazolam and promethazine with codeine. Taylor’s wife, Chia Jen Lee, also known as Chia Jen Lee-Taylor, a registered nurse, was sentenced to 188 months in federal prison for the same charge. Taylor and Lee had previously been convicted of the charges by a jury following a seven day trial in October of 2018.
According information presented at trial, during 2010 through 2012, Taylor and Lee owned and operated Taylor Texas Medicine, a medical clinic in Richardson, Texas. The defendants were convicted of conspiring to distribute large quantities of the above five drugs at their clinic without a legitimate medical need.
“This is the type of behavior that has resulted in the opioid crisis in this country,” said United States Attorney Joseph D. Brown. “The number of pills Dr. Diamond was prescribing was shocking. When doctors care more about the money they are making than anything else, people can die, and in his case, they did. The severity of the sentences for these doctors is the kind we see for dealers of large amounts of street drugs. And really, that is what these doctors became – just drug dealers.”
“The DEA has teams of investigators who work to identify doctors who over-write prescriptions, potentially causing addiction and overdoses,” said DEA Special Agent in Charge Clyde E. Shelley, Jr. of the Dallas Field Division. “We will continue to investigate doctors who practice in this manner.”
“Opioid fraud schemes result in staggering numbers of addicted patients, overdoses, and deaths of individuals, including Medicare and Medicaid beneficiaries,” said Special Agent in Charge CJ Porter of the Department of Health and Human Services, Office of Inspector General. “Working in concert with our law enforcement partners, our agents will continue to pursue and prosecute corrupt physicians, like Dr. Howard Diamond, who contribute to this devastating national opioid epidemic. Dr. Diamond’s lengthy and meaningful sentence, as a result of his depraved indifference to patients he was entrusted to care for, should serve notice to others who would replicate this type of illegal conduct, that they risk severe consequences.”
"The plea and sentencing of Dr. Howard Diamond underscores the threat posed by this physician,” said FBI Dallas Acting Special Agent in Charge, Michael Schneider. “Diamond leveraged his medical privilege and blatantly violated the doctor's oath for personal financial gain at the expense of his patients. The FBI has made it a priority to proactively identify and bring others like him to justice who willingly engage in criminal activity, specifically over prescribing opioids to the detriment of patients they promised to help and not harm. Diamond was prosecuted because of great law enforcement partnerships that are investigating opiate abuse in the Dallas-Fort Worth Metroplex."
The case against Diamond was investigated by the U.S. Drug Enforcement Administration, Department of Health and Human Services, Internal Revenue Service, the Federal Bureau of Investigation, the Sherman Police Department, the Ellis County Sheriff’s Office, and the Texas Office of the Attorney General. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Maureen Smith.
The cases against Taylor and Lee were investigated by the U.S. Drug Enforcement Administration, Desoto Police Department, and Ellis County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Stevan A. Buys and Jonathan R. Hornok.
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Two Men Sentenced in Fentanyl Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that two South Dakota men convicted of conspiring to distribute 40 grams or more of fentanyl were sentenced on May 6, 2019, by U.S. District Judge Karen E. Schreier.
Stuart Harlon Siecke, age 28, of Worthing, South Dakota, was sentenced to 87 months in federal prison, to be followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Dean Joseph Bourn, age 37, of Vermillion, South Dakota, was sentenced to 88 months in federal prison, to be followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Both men were indicted with others for Conspiracy to Distribute a Controlled Substance by a federal grand jury on February 5, 2019. They both pled guilty on February 22, 2019.
Siecke and Bourn were obtaining fentanyl from co-conspirators in Minneapolis for redistribution in South Dakota.
This case was investigated by Homeland Security Investigations, Drug Enforcement Administration, and the police departments of Vermillion, Yankton, and Sioux Falls, South Dakota. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Both men were immediately turned over to the custody of the U.S. Marshals Service.
Tonawanda Man Pleads Guilty to Drug Possession Near A High SchoolRead 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 James Nelson, 63, of Tonawanda, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute crack cocaine, oxycodone, and hydrocodone within 1,000 feet of a private school. The charge carries a mandatory minimum penalty of one year in prison, a maximum penalty of 40 years, and a $2,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on December 11, 2017, investigators with the Drug Enforcement Administration and the Town of Tonawanda Police Department executed a state search warrant at the defendant’s residence at 11 Fayette Avenue in Tonawanda. Nelson was found in the living room area of the residence. Investigators recovered suspected crack cocaine, numerous pills containing suspected controlled substances, two compact digital scales, and approximately $1,442 in U.S. currency.
Subsequent testing determined that the substances recovered included crack cocaine, diazepam, oxycodone, butalbital, hydrocodone, and alprazolam.
The defendant’s residence is located within 1,000 feet of St. Joseph’s Collegiate Institute, a private secondary school, located at 845 Kenmore Avenue in Buffalo.
The plea is the result of an investigation by the Tonawanda Police Department, under the direction of Chief Jerome Uschold and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for August 16, 2019, before Judge Arcara.
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Three indicted for drug conspiracy involving thousands of THC cartridges used with vaping devicesRead the Press Release
Three people were indicted in federal court for their roles in a conspiracy to distribute THC.
Indicted are Frank Altieri, 25, of Brooklyn, Florida; and David Bruell, 28, of Pepper Pike, Ohio, and James Campbell, 35, of Boynton Beach, Florida. They are each charged with one count of conspiracy to possess with intent to distribute tetrahydrocannabinol and one count of possession with intent to distribute tetrahydrocannabinol.
Prosecutors are seeking to forfeit nearly $1.5 million seized during the investigation.
According to court documents:
Campbell came to Cleveland to engage in narcotics trafficking, and met with Altieri on April 11 at a Holiday Inn Express, where they transferred numerous boxes containing THC cartridges. Campbell then drove to a house on Elsetta Avenue in Cleveland, where he understood the boxes of THC cartridges would be removed and picked up.
During surveillance of the house on Elsetta, a Nissan Altima arrived at the home and people in the car were believed to move the boxes into the home. A subsequent search of the home on Elsetta resulted in the recovery of approximately 5,888 THC cartridges, according to court documents.
A search of Bruell’s residence on Brandywood Drive in Pepper Pike resulted in the recovery of additional THC cartridges and cash. The same Nissan Altima seen at the home on Elsetta was at the Pepper Pike home, according to court documents.
A subsequent search of Bruell’s CubeSmart rental units in Columbus and Warrensville Heights resulted in the recovery of marijuana and at least 1,700 THC cartridges, according to court documents.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Cleveland OCDETF Strike Force, including representatives of the Drug Enforcement Administration, Ohio State Highway Patrol, Cleveland HIDTA, Cuyahoga County Sheriff’s Department, Medina County Sheriff’s Office, Montville Township Police Department and the Northern Ohio Law Enforcement Task Force. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Three Men Charged in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald announced an indictment charging HUMBERTO TORRES-RODRIGUEZ, 38, JOSE ALFREDO PENALOZA ROMERO, 22, and IRWIN ENRIQUE BECERRA, 22, with conspiring to distribute methamphetamine. The defendants will make their initial appearances in U.S. District Court at a later date.
According to the indictment and documents filed in court, on April 3, 2019, Colorado law enforcement conducted a traffic stop on a California-plated vehicle. The driver, TORRES-RODRIGUEZ, consented to a search of the vehicle. Officers recovered more than 55 pounds of methamphetamine in a false compartment, or “trap,” inside the vehicle. The following day, TORRES-RODRIGUEZ made phone calls to ROMERO and BECERRA to coordinate the delivery and pickup of the methamphetamine in Minnesota. On April 5, 2019, law enforcement established surveillance at the defendants’ agreed-upon meeting location in Bloomington, Minnesota. The three defendants arrived at the meeting location and law enforcement observed BECERRA give TORRES-RODRIGUEZ money in exchange for the methamphetamine. All three defendants were taken into custody. Following the arrests, law enforcement executed a follow-up search warrant at ROMERO's residence in Minneapolis and recovered an additional sixteen (half-pound to pound) packages of methamphetamine and approximately $30,000 in U.S. currency.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the St. Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Bradley M. Endicott.
Defendant Information:
HUMBERTO TORRES-RODRIGUEZ, 38
Los Angeles, Calif.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
JOSE ALFREDO PENALOZA ROMERO, 22
Minneapolis, Minn.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
IRWIN ENRIQUE BECERRA, 22
Kansas City, Mo.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Illegal Aliens Plead Guilty to Unlawful Reentry after RemovalRead the Press Release
Gulfport, Miss. – Lucas Ramirez-Hernandez, 28, an illegal alien from Guatemala, Jose Valdez-Santana, 36, an illegal alien from Mexico, and Angel Martinez-Garcia, 19, an illegal alien from Mexico, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
The defendants will be sentenced by Judge Guirola, on August 20, 2019, at 1:30 p.m. They each face a potential maximum penalty of 2 years in prison followed by one year of supervised release, and a maximum $250,000 fine. They also face being removed from the United States following the completion of any prison sentence.
On April 4, 2019, a Biloxi police officer conducted a traffic stop on a Dodge Caravan minivan on Interstate 10 east bound. The driver of the vehicle was later identified as an illegal alien from Honduras. The officer observed seven passengers – five males and two females. Since the officer did not speak Spanish, he contacted the Department of Homeland Security’s Blue Lightning Operations Center, and two Homeland Security Investigations Special Agents responded to the traffic stop. All eight occupants of the vehicle were determined to be illegally present in the U.S. and were transported to the U.S. Border Patrol office in Gulfport for further processing. After interviewing the occupants, it was determined that they were being smuggled from Houston, Texas, to Maryland.
Further investigation revealed that three of the passengers (Ramirez-Hernandez, Valdez-Santana and Martinez-Garcia) were aliens who had unlawfully returned after being removed from the United States. Ramirez-Hernandez was previously removed from the United States on January 29, 2019. Martinez-Garcia was previously removed on October 13, 2015 and again on December 13, 2018. Valdez-Santana was previously removed on April 26, 2017.
U.S. Attorney Hurst praised the teamwork and cooperation exhibited by the Biloxi Police Department, the Department of Homeland Security, Immigration & Customs Enforcement, Customs and Border Protection, the U.S. Border Patrol, and Homeland Security Investigations. Assistant United States Attorney Stan Harris is the prosecutor for the case.
The Department of Justice Files Lawsuit Alleging Disability-Based Discrimination by Owners and Developers of 82 Apartment Complexes in 13 StatesRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Southern District of Ohio today announced the filing of a lawsuit against Ohio-based Miller-Valentine Operations Inc. and affiliated companies, owners, developers and builders of 82 multifamily housing complexes located in Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas and West Virginia. The lawsuit alleges that the defendants failed to design and construct housing units and related facilities to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). The 82 complexes contain more than 3,000 units that are required by the FHA to have accessible features, and most contain public spaces that are required to comply with the ADA.
According to the government’s complaint, the defendants built many of the complexes with the assistance of federal Low-Income Housing Tax Credits or with the financial assistance of other federal government programs.
“For over two decades federal laws have required multifamily housing complexes to be built with accessible features,” said Assistant Attorney General Eric Dreiband. “The Department of Justice is committed to protecting the rights of persons with disabilities to equal access to housing opportunities, including accessible dwellings and related facilities.”
“We’re in the business of enforcing federal civil rights laws to their fullest extent,” said U.S. Attorney Glassman. “It doesn’t matter to us whether the defendant is an individual in a single neighborhood or, as here, a company operating in many states. The complaint that the United States filed today alleges not only that Miller-Valentine designed and built multi-family housing complexes that are not accessible to people with disabilities, but also that Miller-Valentine took public money to build those complexes and yet still built them such that some citizens wouldn’t be able to live there.”
The lawsuit, which was filed in the United States District Court for the Southern District of Ohio, alleges that the 82 properties have significant accessibility barriers, including steps leading to building entrances; non-existent or excessively sloped pedestrian routes from apartment units to site amenities (e.g., picnic areas, dumpsters, clubhouse/leasing offices); inaccessible parking; inaccessible bathrooms and kitchens; inaccessible door hardware; and insufficient maneuvering space at unit entrances and entrances to common use areas that make those entrances inaccessible to many people with disabilities.
The lawsuit seeks an order (1) requiring the defendants to bring the properties into compliance with the FHA and the ADA, (2) requiring the defendants to pay monetary damages to persons harmed by the lack of accessibility and civil penalties to the United States to vindicate the public interest, and (3) prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. The complexes at issue are:
Illinois
- Twin Lakes Senior Villas, Rantoul, IL
Indiana
- Honey Creek, Greenwood, IN
- Mill Pond, Muncie, IN
- Summit Pointe, Lawrenceburg, IN
- Waterbury Apartments, Decatur, IN
Iowa
- Meadow Vista Senior Villas, Altoona, IA
Kansas
- Galena Estates, Galena, KS
Kentucky
- Weaver Farm Apartments, Florence, KY
Missouri
- Hampshire Landing, Joplin, MO
North Carolina
- Madison Place Senior, Gastonia, NC
- Pinecrest Apartments, Walkertown, NC
- River Crossing, Charlotte, NC
- The Enclave at Winston-Salem, Winston-Salem, NC
- The Landings at Steele Creek I, Charlotte, NC
- The Landings at Steele Creek II, Charlotte, NC
- Twin Cedars I, Hickory, NC
- Twin Cedars II, Hickory, NC
- Villas at Twin Cedars, Hickory, NC
Ohio
- Aspen Grove Apartments, Middletown, OH
- Bent Tree Apartments I, Piqua, OH
- Bent Tree Apartments II, Piqua, OH
- Breckenridge Apartments, Findlay, OH
- Bridge Street Landing, Chillicothe, OH
- Brookdale Trillium Crossing, Columbus, OH
- Brookstone Apartments, Bellefontaine, OH
- Carriage Trails Senior Villas, Huber Heights, OH
- Cedar Trail, Bellbrook, OH
- Cedar Wood Apartments, Mansfield, OH
- Cobblegate Square Apartments, Moraine, OH
- Deerfield Crossing, Lebanon, OH
- Eagles Point Apartments, Kenton, OH
- Faith Community Housing, Crestline, OH
- Fox Run, Trotwood, OH
- Glen Arbors Apartments, Napoleon, OH
- Harbour Cove Apartments, Cincinnati, OH
- Harmony Senior Village, Williamsburg, OH
- Holly Hills Apartments, Jackson, OH
- Hoover Place, Dayton, OH
- Hunter’s Oak Apartments, Greenville, OH
- Indian Trace I, Oxford, OH
- Indian Trace II, Oxford, OH
- Lake Towne Senior, Walbridge, OH
- Lofts at Hoover, Dayton, OH
- Lofts at One West High Street, Oxford, OH
- Lyons Place I, Dayton, OH
- Lyons Place II, Dayton, OH
- Mallard Glen, Amelia, OH
- Mallard Landing, Marion, OH
- Meadow Creek Apartments, Bryan, OH
- Meadow View South, Springboro, OH
- Oak Wood Apartments, Lexington, OH
- Pheasant Run Senior, Dayton, OH
- Pine Ridge, Logan, OH
- Quail Run Apartments, Van Wert, OH
- Queen Esther’s Village, Canton, OH
- Riverside Landing at Delaware Place, Delaware, OH
- Riverview Bluffs, New Richmond, OH
- Sandhurst, Zanesville, OH
- Scioto Woods I, Chillicothe, OH
- Scioto Woods II, Chillicothe, OH
- Siena Village Senior Living, Dayton, OH
- St. Bernard Commons, St. Bernard, OH
- St. Rita’s Senior Housing, Garfield Heights, OH
- Stone Creek Apartments, Moraine, OH
- Sycamore Creek Apartments, Sidney, OH
- Timber Glen II, Batavia, OH
- Timber Ridge Apartments, Dayton, OH
- Timberlake Apartments, Vandalia, OH
- Walnut Run Senior Villas, Cortland, OH
- Waterstone Landing, Perrysburg, OH
- Whitehouse Square Senior Villas, Whitehouse, OH
- Wind Ridge Apartments, Tipp City, OH
- Windsor Place, Beavercreek, OH
- Wright Place Apartments, Xenia, OH
Oklahoma
- Fairway Breeze Apartments, El Reno, OK
- Reserve at Spencer, Spencer, OK
Pennsylvania
- Allegheny Pointe, Apollo, PA
- Walkers Ridge Apartments, Greensburg, PA
Texas
- Gallatin Park Apartments, Gallatin, TX
- Oak Ridge Apartments, Nolanville, TX
- Silversage Point at Western Center, Fort Worth, TX
West Virginia
- Reserve at Oak Spring, Clarksburg, WV
Anyone with information about the inaccessible conditions at these properties should call the Department of Justice at 1-800-896-7743, and follow the prompts to enter mailbox number 9996, or send an e-mail to [email protected].
The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, it requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps or steep slopes to all ground-floor units. Enacted in 1990, the ADA requires, among other things, that places of public accommodation -- such as rental offices -- at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
Texas Man Sentenced to 20 Years in Prison for Enticing a Sacramento Minor Online and Traveling to Engage in Illicit Sexual Conduct with HerRead the Press Release
SACRAMENTO, Calif. — Christopher L. Crawford, 38, of Houston, Texas, was sentenced today by U.S. District Judge Troy L. Nunley to 20 years in prison for enticing a minor online and traveling in interstate commerce to engage in illicit sexual conduct with a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2017, Crawford met a young victim online in a video game and began texting and video chatting with her. Crawford told the victim that he was 15 years old. After a few weeks of chatting, Crawford made plans to come to Sacramento and meet the victim. In April 2017, Crawford travelled from Texas to California, and lured the victim away from her junior high school campus and molested her.
This case was the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Rosanne Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Terrorist Sympathizer from Iraq Sentenced to Prison for Illegally Possessing a Stolen FirearmRead the Press Release
PHOENIX Ariz. – On May 7, 2019, Duraid Hussein, 25, of Glendale, Arizona, was sentenced by U.S. District Judge G. Murray Snow to 54 months in prison. Hussein is a citizen of Iraq who entered the United States as a refugee. On December 6, 2018, Hussein was convicted by a federal jury of being a felon in possession of a firearm. In July 2017, Hussein sold a stolen firearm to another individual. As a convicted felon, Hussein is not allowed to possess firearms or ammunition.
During the investigation, Hussein was observed watching extremist propaganda videos on the Internet, and heard making statements about being called to fight the Jihad. Since entering the United States, Hussein has had multiple contacts with law enforcement for violent acts, including a May 2017 conviction for aggravated assault.
Hussein is subject to removal from the United States upon his release from prison.
The investigation was conducted by the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and Immigration and Customs Enforcement. The case was prosecuted by Lacy Cooper and Matthew Binford, Assistant United States Attorneys, District of Arizona, Phoenix.
Superseding Indictment adds Developer/Entrepreneur to Racketeering ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury has returned a forty-seven count superseding indictment, unsealed today, against suspended Tallahassee City Commissioner Scott Charles Maddox, 51, Tallahassee political consultant Janice Paige Carter-Smith, 54, and John Thomas Burnette, 42, all of Tallahassee, Florida.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Lawrence Keefe of the Northern District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office and Special Agent in Charge Mary Hammond of the IRS Criminal Investigation (CI) Tampa Field Office made the announcement.
In December 2018, a federal grand jury charged Maddox and Carter-Smith in a forty-four count indictment for conspiring to operate a racketeering enterprise that engaged in acts of bank fraud, extortion, honest-services fraud and bribery. That indictment also charged Maddox and Carter-Smith with substantive counts of bank fraud, false statements to financial institutions, extortion, honest-services fraud, use of interstate facilities to facilitate bribery, false statements to federal officers, conspiracy to interfere with the lawful function of the IRS, and filing false tax returns. The superseding indictment adds Burnette as a defendant and charges him with participating in the racketeering conspiracy and extortion, honest services mail fraud, the use of facilities in interstate commerce to facilitate bribery, and making false statements to federal officers.
Burnette’s initial appearance is scheduled for today at 3:00 p.m. EST at the United States Courthouse in Tallahassee. The trial of this case has been scheduled for November 4, 2019.
More specifically, the December 2018 indictment alleges that Maddox and Carter-Smith conspired to operate two companies, Governance Inc. and Governance Services LLC, as one entity they referred to as “Governance.” Governance was allegedly part of a racketeering enterprise which extorted money and accepted bribes from Governance clients under color of Maddox’s office and through fear of the economic harm which Maddox could inflict in his position as an influential City Commissioner. Maddox allegedly agreed to and voted on matters and exerted influence on City employees to take actions that benefitted the businesses that paid Maddox and Carter-Smith through Governance. Additionally, Maddox and Carter-Smith allegedly defrauded a bank of more than $250,000 through two fraudulent short sales of real property, lied to federal agents about Governance and other matters, and violated federal tax laws by conspiring to interfere with the IRS and filing false tax returns.
The superseding indictment adds charges that Burnette participated with Maddox and Carter-Smith in extorting representatives of a company seeking to develop properties in Tallahassee to pay money to Maddox through Governance in exchange for Maddox’s assistance as a public official in the proposed projects. Further, it is alleged that Burnette arranged the logistics of bribe payments of $10,000 per month to Maddox through Governance, and told the company representatives that Maddox wanted them to deal only with Burnette. Additionally, the superseding indictment alleges that when Maddox and Burnette traveled to Las Vegas with the company representatives paying for all expenses, Maddox and Burnette told the company representatives about Maddox threatening to destroy a former client’s business deals if the former client did not pay Maddox. The superseding indictment further alleges that at subsequent meetings, when asked by company representatives about stopping the bribe payments to Maddox, Burnette made various extortionate statements to the representatives as to what actions Maddox would take to cause economic harm to the company if they stopped making the $10,000 monthly payments to Maddox. The superseding indictment further alleges that Burnette made false statements to the FBI concerning the name of the firm that Carter-Smith had, his knowledge of the company making payments to Maddox through Governance, and the content of conversations that Maddox had with company representatives.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Stephen M. Kunz, Gary Milligan, and Andrew J. Grogan of the Northern District of Florida and Trial Attorneys Simon J. Cataldo and Peter M. Nothstein of the Department of Justice, Criminal Division’s Public Integrity Section.
The maximum terms of imprisonment for the offenses are as follows:
- 30 years: Bank Fraud, False Statements to a Financial Institution
- 20 years: Racketeering Conspiracy, Extortion, and Honest Services Fraud
- 5 years: Use of Interstate Facilities in Furtherance of Bribery, Making False Statements to a Federal Officer, Conspiracy to Defraud the United States
- 3 years: False Statement on a Tax Return
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.
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.
Superseding Indictment Adds Developer/Entrepreneur to Racketeering ConspiracyRead the Press Release
A federal grand jury has returned a 47-count superseding indictment against suspended Tallahassee City Commissioner Scott Charles Maddox, 51, Tallahassee political consultant Janice Paige Carter-Smith, 54, and John Thomas Burnette, 42, all of Tallahassee, Florida.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Lawrence Keefe of the Northern District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office and Special Agent in Charge Mary Hammond of the IRS Criminal Investigation (CI) Tampa Field Office made the announcement.
In December 2018, a federal grand jury charged Maddox and Carter-Smith in a 44-count indictment for conspiring to operate a racketeering enterprise that engaged in acts of bank fraud, extortion, honest-services fraud and bribery. That indictment also charged Maddox and Carter-Smith with substantive counts of bank fraud, false statements to financial institutions, extortion, honest-services fraud, use of interstate facilities to facilitate bribery, false statements to federal officers, conspiracy to interfere with the lawful function of the IRS and filing false tax returns. The superseding indictment adds Burnette as a defendant and charges him with participating in the racketeering conspiracy and extortion, honest services mail fraud, the use of facilities in interstate commerce to facilitate bribery and making false statements to federal officers.
Burnette’s initial appearance is scheduled for today at the U.S. Courthouse in Tallahassee. The trial of this case has been scheduled for Nov. 4, 2019.
More specifically, the December 2018 indictment alleges that Maddox and Carter-Smith conspired to operate two companies, Governance Inc. and Governance Services LLC, as one entity they referred to as “Governance.” Governance was allegedly part of a racketeering enterprise which extorted money and accepted bribes from Governance clients under color of Maddox’s office and through fear of the economic harm which Maddox could inflict in his position as an influential City Commissioner. Maddox allegedly agreed to and voted on matters and exerted influence on City employees to take actions that benefitted the businesses that paid Maddox and Carter-Smith through Governance. Additionally, Maddox and Carter-Smith allegedly defrauded a bank of more than $250,000 through two fraudulent short sales of real property, lied to federal agents about Governance and other matters and violated federal tax laws by conspiring to interfere with the IRS and filing false tax returns.
The superseding indictment adds charges that Burnette participated with Maddox and Carter-Smith in extorting representatives of a company seeking to develop properties in Tallahassee to pay money to Maddox through Governance in exchange for Maddox’s assistance as a public official in the proposed projects. Further, it is alleged that Burnette arranged the logistics of bribe payments of $10,000 per month to Maddox through Governance, and told the company representatives that Maddox wanted them to deal only with Burnette. Additionally, the superseding indictment alleges that when Maddox and Burnette traveled to Las Vegas (Nevada) with the company representatives paying for all expenses, Maddox and Burnette told the company representatives about Maddox threatening to destroy a former client’s business deals if the former client did not pay Maddox. The superseding indictment further alleges that at subsequent meetings, when asked by company representatives about stopping the bribe payments to Maddox, Burnette made various extortionate statements to the representatives as to what actions Maddox would take to cause economic harm to the company if they stopped making the $10,000 monthly payments to Maddox. The superseding indictment further alleges that Burnette made false statements to the FBI concerning the name of the firm that Carter-Smith had, his knowledge of the company making payments to Maddox through Governance, and the content of conversations that Maddox had with company representatives.
An indictment is merely a charge and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI and the IRS-CI. The case is being prosecuted by Trial Attorneys Simon J. Cataldo and Peter M. Nothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Stephen M. Kunz, Gary Milligan and Andrew J. Grogan of the Northern District of Florida.
Sumner County Man Pleads Guilty to Impersonating an FBI AgentRead the Press Release
WICHITA, KAN. – A Sumner County man pleaded guilty today to trying to get out of a traffic ticket by pretending to be an FBI agent, U.S. Attorney Stephen McAllister said.
Jarrod M. Andra, 36, Milan, Kan., pleaded guilty to one count of impersonating an agent. In his plea, he admitted that on Nov. 30, 2018, he was stopped for speeding in Sumner County by a Sumner County Sheriff’s Deputy. Andra claimed he was a special agent for the FBI and presented what appeared to be an FBI identification card with his photo.
Sentencing is set for July 31. Both parties are expected to recommend a sentence of probation and a $1,000 fine. McAllister commended the FBI, the Sumner County Sheriff’s Department and Assistant U.S. Attorney Lanny Welch for their work on the case.
Stow man indicted for having methamphetamine, heroin and fentanylRead the Press Release
A Stow man was indicted in federal court for having methamphetamine, heroin and fentanyl.
David Thomas, Jr., 29, was indicted on one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute fentanyl and heroin.
Thomas had more than 500 grams of methamphetamine and approximately 12 grams of a mixture of fentanyl and heroin on February 23, 2019, according to the indictment.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the FBI and South Euclid Police Department. It is being prosecuted by Assistant U.S. Attorney Patrick Burke.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Stockton Man Sentenced to 5 Years in Prison for Trafficking Cocaine BaseRead the Press Release
SACRAMENTO, Calif. — David Alhaqq, 56, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to five years in prison for distributing cocaine base, U.S. Attorney McGregor W. Scott announced.
Alhaqq pleaded guilty on January 3. According to court documents, in November 2016, a confidential source purchased six ounces of cocaine base from Alhaqq during a controlled buy in Lodi. Just before the buy, Alhaqq met with an unidentified third-party at a parking lot and retrieved a white box. Afterwards, Alhaqq met with the confidential source and gave him the white box, in exchange for $6,000. The box contained approximately six ounces of cocaine base (i.e., crack cocaine).
This case was the product of an investigation by the Federal Bureau of Investigation, the Stockton Safe Streets Task Force, and the Stockton Police Department, with special assistance from the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Quinn Hochhalter prosecuted the case.
St. Louis Man Sentenced for Distributing More Than 400 Grams of FentanylRead the Press Release
St. Louis, MO – Larry Weeden, Jr., 39, of St. Louis, was sentenced on Wednesday to 151 months in prison for possession of one or more firearms as a previously convicted felon and possession with intent to distribute more than 400 grams of fentanyl. He appeared before Federal District Judge Ronnie L. White.
According to court documents, investigators learned Weeden was distributing fentanyl and storing significant amounts of the drug in an apartment, causing them to seek a state-level search warrant in July of 2018.
During the execution of the warrant, investigators located six (6) loaded semi-automatic pistols, including a Glock 23 .40 caliber handgun with an extended magazine and a Springfield XD .45 caliber handgun which was later determined to have been stolen.
Investigators recovered approximately 740 grams of fentanyl in total, including a large compressed brick of fentanyl and baggies of fentanyl packaged in smaller quantities, and approximately 130 grams of methamphetamine in powder and pill form. They also located drug trafficking paraphernalia including a gas mask, cutting agents, and digital scales, as well as a money counting machine and approximately $46,000 in United States currency which was forfeited to the Government.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated this case.
St. Francis Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury.
Tiffany Spotted War Bonnet, age 44, was indicted on April 9, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on May 7, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 4, 2019, Spotted War Bonnet assaulted an individual with a sharp metal object with the intent to do bodily harm, and the assault resulted in serious bodily injury.
The charges are merely accusations and Spotted War Bonnet is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Spotted War Bonnet was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
South Carolina Man Charged with Trafficking 25 Handguns into New York CityRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John B. Devito, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the arrest of TORRIE JOHNSON, a/k/a “Torrie Terrel Johnson,” a/k/a “Black,” for trafficking 25 firearms from South Carolina into New York City, and for being a felon in possession of a firearm. JOHNSON was arrested and presented before U.S. Magistrate Judge Ona T. Wang in the Southern District of New York earlier today.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Torrie Johnson traveled from South Carolina to sell more than two dozen firearms illegally to an undercover officer in New York in the span of less than four months. Stopping the flow of illegal guns into New York is essential to keep our city safe, and arresting alleged prolific gun traffickers is fundamental in that effort.”
ATF Special Agent in Charge John B. Devito said: “As alleged, Johnson was responsible for transporting over two dozen firearms to the streets of New York. Illegal firearms trafficking often has a nexus to a host of other violent crimes in our community. Thanks to the efforts of the ATF/ NYPD Joint Firearms Task Force a trafficking scheme that could have put many at risk was dismantled and destroyed. ATF and its law enforcement partners stand committed to ridding our communities of these illegal guns and those responsible for putting them on the streets. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”
NYPD Commissioner James P. O’Neill said: “While New York City continues to see record reductions in gun related violence, we must remain ever vigilant against illegal firearm trafficking in order to protect the people and communities we serve. This arrest demonstrates that the cooperation with our local, state and federal law enforcement partners is producing real results that keep people safe, and ensure they feel safe too.”
According to the allegations in the Complaint unsealed today:[1]
On at least five occasions between January 23, 2019, and May 9, 2019, TORRIE JOHNSON, a/k/a “Torrie Terrel Johnson,” a/k/a “Black,” sold firearms to an undercover NYPD detective (the “UC”). In total, JOHNSON sold 25 firearms to the UC in Manhattan and the Bronx, including a variety of 9 millimeter, .32, .38, .40, .45, and .380 caliber pistols and revolvers, as well as hundreds of rounds of assorted ammunition.
JOHNSON purchased the firearms in South Carolina, and transported them to New York for the purpose of selling them there. On at least two occasions, the UC specifically told JOHNSON that he was planning to transport the firearms that JOHNSON had sold him to a foreign country, and resell them there for a profit. JOHNSON also told the UC that he was attempting to obtain for sale to the UC a Century Arms Mini Draco AK-47 semi-automatic pistol.
JOHNSON, 41, of Sumter, South Carolina, has been charged with one count of firearms trafficking, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2, which carries a maximum sentence of five years in prison, and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) (2), which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
The charges in the Complaint are merely accusations, and JOHNSON is presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the ATF, the NYPD, and the Joint Firearms Task Force.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
South Bend Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND –Darcy Neily, age 41, of South Bend, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr., upon his plea of guilty to being a felon in possession of a firearm, announced U. S. Attorney Kirsch.
Neily was sentenced to 120 months in prison followed by 2 years of supervised release.
According to documents in this case, in July 2018, Neily possessed a firearm after being convicted of seven prior felony offenses.
The case was investigated by the ATF with the assistance of the South Bend Police Department and St. Joseph County Metro Homicide Unit. This case was handled by Assistant United States Attorney Joel Gabrielse.
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Rosebud Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault With Intent to Commit Murder, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Dylan Blue Thunder, a/k/a Dylan Black Lance, age 19, was indicted on April 9, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 7, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 29, 2019, Blue Thunder stabbed an individual with a knife in the neck with the intent to commit murder, and the assault resulted in serious bodily injury.
The charges are merely accusations and Blue Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Blue Thunder was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rocklin Man Pleads Guilty to Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Cameron Fox, 35, of Rocklin, pleaded guilty today to distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Fox met a minor victim online for sexual purposes and after meeting her in person, he sent her child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation and the Marin County Sheriff’s Office. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
Fox is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 1. Fox faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Ontario Man Pleads Guilty for His Role in International Fraud SchemeRead 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 Sheldon Hurley, 39, of Markham, Ontario, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that between May 2007 and July 2011, the defendant conspired with Afiya Stoddart, Sherece Payne, Ashley Cain, Luna Noncent, and others to defraud loan applicants, and fraudulently to obtain money and property from loan applicants.
The scheme involved a number of individuals in Canada operating websites for fictitious financial services companies which offered to arrange loans to U.S. residents with credit problems. Applicants provided their names, phone numbers, state of residence, requested loan amount, and approximate credit scores. They were then contacted by persons posing as Company “representatives” (using fictitious names), and told that a lender would be contacted for approval. When informed that a loan was arranged, applicants were instructed to sign and return a loan agreement, provide bank account information, and pay an “insurance deposit” for the lender to process the loan. Each applicant was provided wire instructions for the lender’s “insurance deposit,” including the name of the Company representative (payee), the amount, date, and Western Union location. Hurley engaged other individuals in the U.S. and Canada to act as Company “payees.” Some traveled from Canada to the United States, picked up wired funds, and transported them back to Canada. Others, residents of the U.S., picked up funds at Western Union locations in the U.S. and sent the cash to the defendant in Canada, via DHL courier services. Applicants never received the loans, but they were often coerced into making multiple “deposits” under various pretexts.
During the course of this scheme, the defendant recruited Afiya Stoddart and Sherece Payne to travel to Western Union locations in Buffalo, NY and elsewhere to pick up funds from victims of this scheme who sent “insurance deposits” to the fraudulently established companies.
Afiya Stoddart, Sherece Payne, Ashley Cain, and Luna Noncent were previously convicted and sentenced.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for August 27, 2019, at 11:00 a.m. before Judge Wolford.
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Oahu Physical Therapist Sentenced to 42 Months for Mulit-Million Dollar Health Care Fraud SchemeRead the Press Release
HONOLULU – Garrett Okubo, 52, of Honolulu, Hawaii, was sentenced today to 42 months of imprisonment for committing health care fraud. As part of his sentence, Okubo must pay $3.7 million in restitution, $3.7 million in forfeiture, and must serve three years of supervised release.
According to court documents and information presented in court, from January 2011 through October 2017, Okubo submitted millions of dollars of false claims for payment for physical therapy services to TRICARE, Medicare, Medicaid, and HMSA. Moreover, Okubo falsely claimed he had personally provided physical therapy services to his patients, when in reality his staff members, who were not licensed, provided said services. Okubo was often not physically present in his clinic while his patients received treatment, and was instead available only by phone. Okubo inflated the amount of time that his patients were treated, by “rounding up” to the maximum amount of time that the health care benefit plan would pay for a single patient visit, even if a patient were seen for far less time. Nearly 70% of Okubo’s total billings over six years were fraudulent.
At sentencing, Chief U.S. District Judge J. Michael Seabright highlighted the importance of deterring others from committing similar crimes, and remarked that Okubo “knew exactly what he was doing.”
“Our dedicated law enforcement community will continue to pursue individuals like Mr. Okubo, whose fraudulent conduct drains money from public coffers,” stated U.S. Attorney for the District of Hawaii Kenji M. Price. “Fraud in the healthcare industry erodes the finite resources available to fund treatment for ailing patients, and we will continue to do our part as a law enforcement community to protect those resources by exposing misconduct and holding perpetrators accountable for their crimes.”
The case was jointly investigated by the Defense Criminal Investigative Service; the Federal Bureau of Investigation; the Department of Health and Human Services, Office of Inspector General; and the State of Hawaii, Department of the Attorney General, Medicaid Fraud Control Unit; and was prosecuted by Assistant U.S. Attorney Marc A. Wallenstein.
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North Korean Cargo Vessel Connected to Sanctions Violations Seized by U.S. GovernmentRead the Press Release
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director John Brown of the FBI’s Counterintelligence Division and Assistant Director William F. Sweeney Jr. of the FBI’s New York Field Office announced today the filing of a civil forfeiture complaint against M/V Wise Honest (the “Wise Honest”), a 17,061-ton, single-hull bulk carrier ship registered in the Democratic People’s Republic of Korea (“DPRK” or “North Korea”). The Wise Honest, one of North Korea’s largest bulk carriers, was used to illicitly ship coal from North Korea and to deliver heavy machinery to the DPRK. Payments for maintenance, equipment, and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks. This conduct violates longstanding U.S. law and United Nations Security Council resolutions.
“This sanctions-busting ship is now out of service,” said Assistant Attorney General Demers. “North Korea, and the companies that help it evade U.S. and U.N. sanctions, should know that we will use all tools at our disposal — including a civil forfeiture action such as this one or criminal charges — to enforce the sanctions enacted by the U.S. and the global community. We are deeply committed to the role the Justice Department plays in applying maximum pressure to the North Korean regime to cease its belligerence.”
“Today’s civil action is the first-ever seizure of a North Korean cargo vessel for violating international sanctions,” said U.S. Attorney Berman. “Our Office uncovered North Korea’s scheme to export tons of high-grade coal to foreign buyers by concealing the origin of their ship, the Wise Honest. This scheme not only allowed North Korea to evade sanctions, but the Wise Honest was also used to import heavy machinery to North Korea, helping expand North Korea’s capabilities and continuing the cycle of sanctions evasion. With this seizure, we have significantly disrupted that cycle. We are willing and able to deploy the full array of law enforcement tools to detect, deter, and prosecute North Korea’s deceptive attempts to evade sanctions.”
“Although barred from doing business in this country, North Korea continues to violate U.S. and international sanctions while simultaneously taking advantage of unwitting U.S. companies,” said Assistant Director Brown. “The FBI is committed to ensuring that North Korea be held responsible for their blatant disregard for U.S. law. I am proud of the work done by the many men and women of the FBI who pursued this case.”
“Working with our law enforcement and intelligence partners around the world gives the FBI the ability to interdict illicit activity globally,” said Assistant Director in Charge Sweeney. “Our counterintelligence efforts are squarely focused on protecting the American people. This seizure should serve as a clear signal that we will not allow foreign adversaries to use our financial systems to fund weapons programs which will be used to threaten our nation.”
According to the documents filed today in Manhattan federal court:
Pursuant to the International Emergency Economic Powers Act and the North Korea Sanctions and Policy Enhancement Act of 2016, North Korea and other individuals or entities that the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has determined are involved in the facilitation of proliferation of weapons of mass destruction are prohibited from engaging in transactions with U.S. persons, involving U.S.-origin goods, or using the U.S. financial system. The United Nations Security Council has similarly prohibited the provision of goods, technology, and services to North Korea, including the sale, supply, or transfer of coal.
From at least November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation (a.k.a. “Songi Trading Company”), to export coal from North Korea to foreign purchasers and import machinery to North Korea (the “Korea Songi Scheme”). On June 1, 2017, OFAC designated Songi Trading Company pursuant to Executive Order 13722 for its involvement in the sale, supply, or transfer of coal from North Korea. OFAC also determined that Songi Trading Company was a subordinate of the Korean People’s Army.
On or about March 14, 2018, the Wise Honest was loaded with coal in Nampo, North Korea. On or about April 2, 2018, foreign maritime authorities intercepted and detained the Wise Honest. Maritime regulations require vessels like the Wise Honest engaged in international voyages to operate an automatic identification system (“AIS”) capable of providing information about the vessel to other ships and coastal authorities. However, despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since August 4, 2017.
Participants in the Korea Songi Scheme attempted to conceal the Wise Honest’s DPRK affiliation by falsely listing different countries for the Wise Honest’s nationality and the origin of the illicit coal in shipping documentation.
In connection with the Korea Songi Scheme, Kwon Chol Nam, one of Korea Songi Shipping Company’s representatives, paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in U.S. dollars through unwitting U.S. financial institutions. Such transfers constitute a provision of services by U.S. banks to both the sender and recipient of the funds, and longstanding U.S. law prohibits banks from providing such services to North Korean parties. Payments totaling more than $750,000 were transmitted through accounts at a U.S. financial institution in connection with the March 2018 shipment of coal on board the Wise Honest.
The Wise Honest is currently in the custody of the United States, having previously been seized pursuant to a warrant issued in the Southern District of New York.
Mr. Demers and Mr. Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s Money Laundering and Asset Recovery Section and Office of International Affairs; the United States Coast Guard; and the Department of State for their assistance.
The case is being handled by Assistant U.S. Attorneys David W. Denton, Jr. and Benet J. Kearney of the U.S. Attorney’s Office for Southern District of New York, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
North Korean Cargo Vessel Connected to Sanctions Violations Seized by U.S. GovernmentRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, and John Brown, Assistant Director of the Counterintelligence Division of the Federal Bureau of Investigation, announced today the filing of a civil forfeiture complaint against M/V Wise Honest (the “Wise Honest”), a 17,061-ton, single-hull bulk carrier ship registered in the Democratic People’s Republic of Korea (“DPRK” or “North Korea”). The Wise Honest, one of North Korea’s largest bulk carriers, was used to illicitly ship coal from North Korea and to deliver heavy machinery to the DPRK. Payments for maintenance, equipment, and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks. This conduct violates longstanding U.S. law and United Nations Security Council resolutions.
U.S. Attorney Geoffrey S. Berman said: “Today’s civil action is the first-ever seizure of a North Korean cargo vessel for violating international sanctions. Our Office uncovered North Korea’s scheme to export tons of high-grade coal to foreign buyers by concealing the origin of their ship, the Wise Honest. This scheme not only allowed North Korea to evade sanctions, but the Wise Honest was also used to import heavy machinery to North Korea, helping expand North Korea’s capabilities and continuing the cycle of sanctions evasion. With this seizure, we have significantly disrupted that cycle. We are willing and able to deploy the full array of law enforcement tools to detect, deter, and prosecute North Korea’s deceptive attempts to evade sanctions.”
Assistant Attorney General John C. Demers said: “This sanctions-busting ship is now out of service. North Korea, and the companies that help it evade U.S. and U.N. sanctions, should know that we will use all tools at our disposal — including a civil forfeiture action such as this one or criminal charges — to enforce the sanctions enacted by the U.S. and the global community. We are deeply committed to the role the Justice Department plays in applying maximum pressure to the North Korean regime to cease its belligerence.”
FBI Assistant Director William F. Sweeney Jr. said: “Working with our law enforcement and intelligence partners around the world gives the FBI the ability to interdict illicit activity globally. Our counterintelligence efforts are squarely focused on protecting the American people. This seizure should serve as a clear signal that we will not allow foreign adversaries to use our financial systems to fund weapons programs which will be used to threaten our nation.”
FBI Assistant Director John Brown said: “Although barred from doing business in this country, North Korea continues to violate U.S. and international sanctions while simultaneously taking advantage of unwitting U.S. companies. The FBI is committed to ensuring that North Korea be held responsible for their blatant disregard for U.S. law. I am proud of the work done by the many men and women of the FBI who pursued this case.”
According to the documents filed today in Manhattan federal court:
Pursuant to the International Emergency Economic Powers Act and the North Korea Sanctions and Policy Enhancement Act of 2016, North Korea and other individuals or entities that the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has determined are involved in the facilitation of proliferation of weapons of mass destruction are prohibited from engaging in transactions with U.S. persons, involving U.S.-origin goods, or using the U.S. financial system. The United Nations Security Council has similarly prohibited the provision of goods, technology, and services to North Korea, including the sale, supply, or transfer of coal.
From at least November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation, to export coal from North Korea to foreign purchasers, and to import machinery to North Korea (the “Korea Songi Scheme”). On June 1, 2017, OFAC designated Korea Songi General Trading Corporation, also known as “Songi Trading Company,” pursuant to Executive Order 13722 for its involvement in the sale, supply, or transfer of coal from North Korea. OFAC also determined that Songi Trading Corporation was a subordinate of the Korean People’s Army.
On or about March 14, 2018, the Wise Honest was loaded with coal in Nampo, North Korea. On or about April 2, 2018, foreign maritime authorities intercepted and detained the Wise Honest. Maritime regulations require vessels like the Wise Honest engaged in international voyages to operate an automatic identification system (“AIS”) capable of providing information about the vessel to other ships and coastal authorities. However, despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since August 4, 2017.
Participants in the Korea Songi Scheme attempted to conceal the Wise Honest’s DPRK affiliation by falsely listing different countries for the Wise Honest’s nationality and the origin of the illicit coal in shipping documentation.
In connection with the Korea Songi Scheme, Kwon Chol Nam, one of Korea Songi Shipping Company’s representatives, paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in U.S. dollars through unwitting U.S. financial institutions. Such transfers constitute a provision of services by U.S. banks to both the sender and recipient of the funds, and longstanding U.S. law prohibits banks from providing such services to North Korean parties. Payments totaling more than $750,000 were transmitted through accounts at a U.S. financial institution in connection with the March 2018 shipment of coal on board the Wise Honest.
The Wise Honest is currently in the custody of the United States, having previously been seized pursuant to a warrant issued in the Southern District of New York.
* * *
Mr. Berman and Mr. Demers praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s Money Laundering and Asset Recovery Section’s Program Operations Unit and Office of International Affairs, the United States Coast Guard, and the Department of State for their assistance.
The case is being handled by the Office’s Terrorism and International Narcotics as well as the Money Laundering and Transnational Criminal Enterprises Units. Assistant U.S. Attorneys David W. Denton Jr. and Benet J. Kearney of the U.S. Attorney’s Office for Southern District of New York, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section are in charge of this case.
Nitro Man Pleads Guilty to Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Nitro, West Virginia, man pled guilty to a federal firearm charge, announced United States Attorney Mike Stuart. On May 8, 2019, Cole Dylan Cooper, 30, pled guilty to possession of a firearm by a felon before United States District Judge Joseph R. Goodwin. Stuart commended the investigation conducted by the South Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At the plea hearing, it was established that on November 11, 2018, police officers were dispatched to Thomas Hospital in South Charleston, West Virginia, where a suspect was attempting to break into vehicles and evading hospital security officers. Officers spotted Cooper in a nearby parking lot. Cooper’s appearance matched the description of the attempted burglary suspect.
An officer asked Cooper if he had fled from Thomas Hospital security officers, and Cooper acknowledged that he had. Cooper further stated that he was carrying a firearm, and officers retrieved a loaded pistol from Cooper’s inner jacket pocket. Cooper was not permitted to possess the firearm as he had previously been convicted of conspiracy to commit first degree robbery, a felony.
Cooper faces up to 10 years in federal prison when he is sentenced on July 31, 2019. Assistant United States Attorney Andrew J. Tessman is handling the prosecution.
SDWVNews and USAttyStuart
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Nine Individuals Connected to a Hacking Group Charged with Online Identity Theft and Other Related ChargesRead the Press Release
Six individuals connected to a hacking group known to its members as “The Community” were charged in a fifteen count indictment unsealed today with conspiracy to commit wire fraud, wire fraud and aggravated identity theft, announced United States Attorney Matthew Schneider. In addition, a criminal complaint was unsealed charging three former employees of mobile phone providers with wire fraud in relation to the conspiracy.
Schneider was joined in the announcement by Acting Special Agent in Charge Angie Salazar of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.
Charged in the indictment were:
Conor Freeman, 20, of Dublin, Ireland
Ricky Handschumacher, 25 of Pasco County, Florida
Colton Jurisic, 20 of, Dubuque, Iowa
Reyad Gafar Abbas, 19, of Rochester, New York
Garrett Endicott, 21, of Warrensburg, Missouri
Ryan Stevenson, 26, of West Haven, Connecticut
Charged in the criminal complaint were:
Jarratt White, 22 of Tucson, Arizona
Robert Jack, 22 of Tucson, Arizona
Fendley Joseph, 28, of Murrietta, California
According to the indictment, the defendants are members of “The Community” and are alleged to have participated in thefts of victims’ identities in order to steal cryptocurrency via a method known as “SIM Hijacking”. Cryptocurrencies, also known as virtual currencies or digital currencies, are online media of exchange. The most famous of these is Bitcoin. Like traditional currency, they act as a store of value and can be exchanged for goods and services. They can also be exchanged for dollars.
“SIM Hijacking” or “SIM Swapping” is an identity theft technique that exploits a common cyber-security weakness – mobile phone numbers. This tactic enabled “The Community” to gain control of victims’ mobile phone number, resulting in the victims’ phone calls and short message service (“SMS”) messages being routed to devices controlled by “The Community”. “SIM Hijacking” was often facilitated by bribing an employee of a mobile phone provider. Other times, SIM Hijacking was accomplished by a member of “The Community” contacting a mobile phone provider’s customer service—posing as the victim—and requesting that the victim’s phone number be swapped to a SIM card (and thus a mobile device) controlled by “The Community”.
The indictment alleges that, once “The Community” had control of a victim’s phone number, the phone number was leveraged as a gateway to gain control of online accounts such as a victim’s email, cloud storage, and cryptocurrency exchange accounts. For example, “The Community” would use their control of victims’ phone numbers to reset passwords on online accounts and/or request two-factor authentication (2FA) codes that allowed them to bypass security measures.
The members of “The Community” charged in the indictment endeavored to gain control of victims’ cryptocurrency wallets or online cryptocurrency exchange accounts and steal victims’ funds. It is alleged in the indictment that the defendants executed seven attacks that resulted in the theft of cryptocurrency valued at approximately $2,416,352.
According to the criminal complaint, defendants White, Jack and Joseph were employees of mobile phone service providers and helped members of “The Community” steal the identities of subscribers to their employers’ services in exchange for bribes.
“Mobile phones today are not only a means of communication but also a means of identification,” stated United States Attorney Matthew Schneider. “This case should serve as a reminder to all of us to protect our personal and financial information from those who seek to steal it.”
“The allegations against these defendants are the result of a complex cryptocurrency and identity theft investigation led by Homeland Security Investigations, which spanned two continents,” said Salazar. “Increasingly, criminal groups are turning exclusively to web-based schemes to further their illicit activities, which is why HSI has developed capabilities to meet these threats head on.”
If convicted on the charge of conspiracy to commit wire fraud, each defendant faces a statutory maximum penalty of 20 years in prison. The charges of wire fraud each carry a statutory maximum penalty of 20 years in prison. A conviction of aggravated identity theft in support of wire fraud carries a statutory maximum penalty of 2 years in prison to be served consecutively to any sentence imposed on the underlying count of wire fraud.
The defendants in this case are presumed innocent. Indictments and criminal complaints are merely charges and it is the government’s burden to prove guilty beyond a reasonable doubt.
This case was investigated by special agents of Immigration and Customs Enforcement with the assistance of Irish law enforcement authorities. The case is being prosecuted by Assistant United States Attorney Timothy Wyse, assisted by Assistant United States Attorney Shankar Ramamurthy and attorneys from the DOJ Office of International Affairs. Special thanks are due to Assistant United States Attorneys and federal agents across the country that provided assistance with arrests and searches conducted on May 9, 2019.
New York Man Sentenced to 30 Years for Attempting to Produce Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A Binghamton, N.Y., man who posed online as a teenage girl was sentenced in federal court today for attempting to produce child pornography by tricking children – including three victims in Sedalia, Mo. – into sending him nude images of themselves.
Brandon David Cuddihe, 32, was sentenced by U.S. District Judge Stephen R. Bough to 30 years in federal prison without parole. The court also sentenced Cuddihe to 30 years of supervised release following incarceration.
On Oct. 16, 2018, Cuddihe pleaded guilty to two counts of attempting to produce child pornography. Cuddihe admitted that he posed on Facebook as a 14-year-old girl named “Hannah Richards.” Using that false identity, he conversed with more than 150 people, many of whom were between 10 and 16 years of age. Three minors, including two 10-year-olds and a teenager, are from the Sedalia, Mo., area. The mother of one of those victims contacted the Sedalia Police Department when she learned that her 10-year-old daughter had sent nude photos and videos via Facebook Messenger. Federal agents were able to identify and interview eight additional victims between the ages of 10 and 16.
Using the “Hannah Richards” Facebook account, Cuddihe told investigators, he would pick a random individual to befriend. Cuddihe would go through all of their friends and add a bunch of their friends to his friends list. If an individual accepted his friend request, then he would begin chatting with them through Facebook Messenger. In some cases, according to court documents, Cuddihe redistributed a victim’s images in order to convince other children to produce child pornography. The “Hanna Richards” Facebook account is over 2,000 pages long and is dedicated almost entirely to soliciting pornographic images from children.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Sedalia, Mo., Police Department, the Binghamton, N.Y., Police Department, and the Broome County, N.Y., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."New York CPA Sentenced to 14 Months in Prison for False Tax FilingRead the Press Release
NEWARK, N.J. – A certified public accountant from New York was sentenced today to 14 months in prison for filing a tax return in his own name that contained materially false information, U.S. Attorney Craig Carpenito announced.
Christopher Miu, 58, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of subscribing to a tax return that he knew substantially understated his gross income. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between 2008 and 2014, Miu failed to file income tax returns own his own behalf. When he ultimately filed returns for those years, Miu substantially under-reported his gross income, leading to a tax loss to the United States of more than $550,000.
In addition to the prison term, Judge Martini sentenced Miu to one year of supervised release and ordered him to pay restitution of $670,000.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan R. Tafur, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare and Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey.
Defense counsel: Aidan P O’Connor Esq., Hackensack, New Jersey
Mississippi Man Sentenced to 17 Years in Prison for Assisting Producer of Child PornographyRead the Press Release
TUCSON, Ariz. – On May 8, 2019, Rico Wilbert, 38, of Purvis, Mississippi, was sentenced by U.S. District Judge James A. Soto to 17 years in prison. Wilbert’s term of imprisonment will be followed by lifetime supervised release requiring him to register and abide by sex offender conditions. Wilbert had previously pleaded guilty on August 27, 2018, to aiding and abetting the production of child pornography.
Agents from Homeland Security Investigations (HSI) investigating Josue Cota arrested Wilbert after discovering chats in which Wilbert encouraged and requested videos of Cota sexually abusing children. Wilbert and Cota communicated and exchanged child pornography online over at least a nine-month period during 2016 and 2017. Evidence showed that Wilbert repeatedly asked Cota for “new” material, and encouraged Cota as he sexually assaulted his victims. In February 2019, Cota was sentenced in federal court to 60 years’ incarceration for production of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 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, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by Homeland Security Investigations, Douglas Office. The prosecution was handled by Carin C. Duryee and Carmen F. Corbin, District of Arizona, Tucson.
Michigan Woman Prepared False Federal Income Tax Returns for now Defunct Pittsburgh Tax ServiceRead the Press Release
PITTSBURGH, PA – A resident of Michigan has pleaded guilty in federal court on charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Scott W. Brady announced today.
Lakisha K. Pinkney, 42, of Eastpointe, MI pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Pinkney, a former tax preparer for now defunct "Cititax Refund" in Pittsburgh between 2010 and 2013 prepared federal income tax returns for other persons that included false Schedule C information, and which requested refunds for taxpayers totaling approximately $626,000.
Judge Fischer scheduled the sentencing for September 18, 2019 at 11 a.m. The law provides for a total sentence of 3 years imprisonment for each count, a fine of $100,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation that lead to the prosecution of Lakisha K. Pinkney.
Mercer County Man Indicted on Production of Child Pornography Abroad, Illicit Sexual Conduct Abroad, and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man, formerly of Ocean County, New Jersey – a cargo pilot who traveled abroad frequently – was indicted today for allegedly using two minors to participate in acts of child sexual abuse, which he video-recorded and imported to the United States, U.S. Attorney Craig Carpenito announced.
Frank William Maile, 63, of Hamilton, New Jersey, and formerly of New Egypt, New Jersey, was previously arrested on May 1, 2018, by agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI). Maile is retired from the U.S. Air Force and, before his arrest, worked as a cargo pilot. A grand jury sitting in Trenton today returned a five-count indictment against Maile, charging two counts of production of child pornography abroad, two counts of illicit sexual conduct abroad, and one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Between Nov. 27, 2015, and Dec. 27, 2015, while in the Philippines, Maile created images and videos of two minor females engaging in multiple sex acts. Between Feb. 18, 2016, and March 28, 2016, Maile traveled to the Philippines and engaged in sexual contact with both victims, which constituted commercial sex acts because they were performed for compensation, and also created additional videos of the victims. Maile also possessed additional images of child sexual abuse in New Jersey at the time of his arrest.
The charges of producing child pornography abroad each carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charges of engaging in illicit sexual conduct in a foreign place each carry a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the DHS Cherry Hill office, under the direction of Resident Agent in Charge Richard Reinhold, with the investigation leading to the charges. He also thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the Plumsted Township Police Department, under the direction of Chief Earl Meroney, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Anyone with information regarding possible victims of this activity is urged to contact HSI’s tip line at 866-DHS-2-ICE.
Defense counsel: Jerome A. Ballarotto Esq., Trenton
Memphis Man Convicted of Attempted Robbery Faces a Mandatory Minimum 10 Years in Federal PrisonRead the Press Release
Memphis, TN – After a four-day jury trial, Lamar Clancy,26, was found guilty on a two-count indictment for attempting to rob the Boost Mobile Store at 4684 Millbranch. U.S. Attorney D. Michael Dunavant announced the conviction today.
According to information presented at trial, Clancy and another man entered the store wearing masks and pointing handguns at store employees. Two of the store employees drew their firearms to defend against the shots fired by Clancy and his accomplice. After one of the unarmed employees was shot, Clancy, who himself was shot, retreated from the store with the other robber. Clancy was dropped off at the Methodist South emergency room minutes after the attempted robbery and apprehended by the Memphis Police.
Clancy is scheduled to be sentenced on August 22, 2019 before U. S. District Court Judge John T. Fowlkes Jr., where he faces a mandatory minimum consecutive sentence of 10 years and up to life imprisonment for discharging a firearm during a crime of violence.
U.S. Attorney D. Michael Dunavant said, "Violent crimes must be met with significant consequences in order to incapacitate dangerous offenders, deter future violence, achieve justice for victims and the community, and uphold the rule of law. This guilty verdict demonstrates our commitment and resolve to protect the public by making violent offenders pay for their crimes."
This case was investigated by FBI Safe Streets Task Force Agents.
The United States Attorney’s Office, Western District of Tennessee prosecuted this case on behalf of the government.
Member of sophisticated China-based hacking group indictedRead the Press Release
WASHINGTON – A federal grand jury returned an indictment unsealed today in Indianapolis, Indiana, charging a Chinese national as part of an extremely sophisticated hacking group operating in China and targeting large businesses in the United States, including a computer intrusion and data breach of Indianapolis-based health insurer Anthem Inc. (Anthem).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, Assistant Director Matt Gorham of the FBI’s Cyber Division and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field office made the announcement.
The four-count indictment alleges that Fujie Wang (王 福 杰 in Chinese Hanzi), 32, and other members of the hacking group, including another individual charged as John Doe, conducted a campaign of intrusions into U.S.-based computer systems. The indictment alleges that the defendants gained entry to the computer systems of Anthem and three other U.S. businesses, identified in the indictment as Victim Business 1, Victim Business 2 and Victim Business 3. As part of this international computer hacking scheme, the indictment alleges that beginning in February 2014, the defendants used sophisticated techniques to hack into the computer networks of the victim businesses without authorization, according to the indictment. They then installed malware and tools on the compromised computer systems to further compromise the computer networks of the victim businesses, after which they identified data of interest on the compromised computers, including personally identifiable information (PII) and confidential business information, the indictment alleges.
“The allegations in the indictment unsealed today outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history,” said Assistant Attorney General Benczkowski. “These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors, and violated the privacy of over 78 million people by stealing their PII. The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”
“The cyber attack of Anthem not only caused harm to Anthem, but also impacted tens of millions of Americans,” said U.S. Attorney Minkler. “This wanton violation of privacy will not stand, and we are committed to bringing those responsible to justice. I would also like to thank Anthem for its timely and substantial cooperation with our investigation.”
“This case is significant not only because it showcases the FBI’s cyber investigative capabilities, but also because it highlights the importance of FBI and private industry relationships,” said Assistant Director Matt Gorham. “Because the victim companies promptly notified the FBI of malicious cyber activity, we were able to successfully investigate and identify the perpetrators of this large-scale, highly sophisticated scheme. The FBI is committed to investigating cyber-attacks that compromise American industry and the American people. As we did in this case, we will work side by side with victim companies to ensure justice is served.”
"Anthem's cooperation and openness in working with the FBI on the investigation of this sophisticated cyber-attack was imperative in allowing for the identification of these individuals. This also speaks to the strong partnerships the FBI has with the private sector, as well as the tenacity and global reach of the Bureau," said Special Agent in Charge Grant Mendenhall. "It should also be noted that the speed with which Anthem initially notified the FBI of the intrusion on their networks was also a key factor in being able to determine who was responsible for the breach and should serve as an example to other organizations that might find themselves in a similar situation."
The indictment further alleges that the defendants then collected files and other information from the compromised computers and then stole this data. As part of the computer intrusion and data breach of Anthem, the defendants identified and ultimately stole data concerning approximately 78.8 million persons from Anthem’s computer network, including names, health identification numbers, dates of birth, Social Security numbers, addresses, telephone numbers, email addresses, employment information and income data, according to the indictment.
Wang and Doe are charged with one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two substantive counts of intentional damage to a protected computer.
According to the indictment, the defendants used extremely sophisticated techniques to hack into the computer networks of the victim businesses. These techniques included the sending of specially-tailored “spearfishing” emails with embedded hyperlinks to employees of the victim businesses. After a user accessed the hyperlink, a file was downloaded which, when executed, deployed malware that would compromise the user’s computer system by, in pertinent part, installing a tool known as a backdoor that would provide remote access to that computer system through a server controlled by the defendants.
The defendants sometimes patiently waited months before taking further action, eventually engaging in reconnaissance by searching the network for data of interest, according to the indictment. This data included PII and confidential business information. The indictment alleges that the defendants accessed the computer network of Anthem without authorization for the purpose of conducting reconnaissance on Anthem’s enterprise data warehouse, a system that stores a large amount of PII, on multiple occasions in October and November 2014.
The indictment further alleges that once the data of interest had been identified and located, the defendants then collected the relevant files and other information from the compromised computers using software tools. The defendants then allegedly stole the data of interest by placing it into encrypted archive files and then sending it through multiple computers to destinations in China. The indictment alleges that on multiple occasions in January 2015, the defendants accessed the computer network of Anthem, accessed Anthem’s enterprise data warehouse, and transferred encrypted archive files containing PII from Anthem’s enterprise data warehouse from the United States to China.
Finally, the defendants allegedly then deleted the encrypted archive files from the computer networks of the victim businesses, in an attempt to avoid detection. In late January 2015, the defendants deleted certain archive files containing PII that they had previously transferred from Anthem’s enterprise data warehouse.
Defendant Wang is specifically alleged to have controlled two domain names connected to the criminal activity. According to the indictment, one of these domain names was associated with a backdoor used in the intrusion victimizing Victim Business 1, and the other was associated by Wang with a server used to create an email account used to conduct spearfishing attacks against employees of Victim Business 3.
This case was investigated by the FBI’s Indianapolis Field Office. Senior Counsel William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney and Deputy Chief of the General Crimes Unit Steven D. DeBrota of the Southern District of Indiana are prosecuting the case. Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Member of Sophisticated China-Based Hacking Group Indicted for Series of Computer Intrusions, Including 2015 Data Breach of Health Insurer Anthem Inc. Affecting over 78 Million PeopleRead the Press Release
A federal grand jury returned an indictment unsealed today in Indianapolis, Indiana, charging a Chinese national as part of an extremely sophisticated hacking group operating in China and targeting large businesses in the United States, including a computer intrusion and data breach of Indianapolis-based health insurer Anthem Inc. (Anthem).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, Assistant Director Matt Gorham of the FBI’s Cyber Division and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field office made the announcement.
The four-count indictment alleges that Fujie Wang (王 福 杰 in Chinese Hanzi), 32, and other members of the hacking group, including another individual charged as John Doe, conducted a campaign of intrusions into U.S.-based computer systems. The indictment alleges that the defendants gained entry to the computer systems of Anthem and three other U.S. businesses, identified in the indictment as Victim Business 1, Victim Business 2 and Victim Business 3. As part of this international computer hacking scheme, the indictment alleges that beginning in February 2014, the defendants used sophisticated techniques to hack into the computer networks of the victim businesses without authorization, according to the indictment. They then installed malware and tools on the compromised computer systems to further compromise the computer networks of the victim businesses, after which they identified data of interest on the compromised computers, including personally identifiable information (PII) and confidential business information, the indictment alleges.
“The allegations in the indictment unsealed today outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history,” said Assistant Attorney General Benczkowski. “These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors, and violated the privacy of over 78 million people by stealing their PII. The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”
“The cyber attack of Anthem not only caused harm to Anthem, but also impacted tens of millions of Americans,” said U.S. Attorney Minkler. “This wanton violation of privacy will not stand, and we are committed to bringing those responsible to justice. I would also like to thank Anthem for its timely and substantial cooperation with our investigation.”
“This case is significant not only because it showcases the FBI’s cyber investigative capabilities, but also because it highlights the importance of FBI and private industry relationships,” said Assistant Director Matt Gorham. “Because the victim companies promptly notified the FBI of malicious cyber activity, we were able to successfully investigate and identify the perpetrators of this large-scale, highly sophisticated scheme. The FBI is committed to investigating cyber-attacks that compromise American industry and the American people. As we did in this case, we will work side by side with victim companies to ensure justice is served.”
"Anthem's cooperation and openness in working with the FBI on the investigation of this sophisticated cyber-attack was imperative in allowing for the identification of these individuals. This also speaks to the strong partnerships the FBI has with the private sector, as well as the tenacity and global reach of the Bureau," said Special Agent in Charge Grant Mendenhall. "It should also be noted that the speed with which Anthem initially notified the FBI of the intrusion on their networks was also a key factor in being able to determine who was responsible for the breach and should serve as an example to other organizations that might find themselves in a similar situation."
The indictment further alleges that the defendants then collected files and other information from the compromised computers and then stole this data. As part of the computer intrusion and data breach of Anthem, the defendants identified and ultimately stole data concerning approximately 78.8 million persons from Anthem’s computer network, including names, health identification numbers, dates of birth, Social Security numbers, addresses, telephone numbers, email addresses, employment information and income data, according to the indictment.
Wang and Doe are charged with one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two substantive counts of intentional damage to a protected computer.
According to the indictment, the defendants used extremely sophisticated techniques to hack into the computer networks of the victim businesses. These techniques included the sending of specially-tailored “spearfishing” emails with embedded hyperlinks to employees of the victim businesses. After a user accessed the hyperlink, a file was downloaded which, when executed, deployed malware that would compromise the user’s computer system by, in pertinent part, installing a tool known as a backdoor that would provide remote access to that computer system through a server controlled by the defendants.
The defendants sometimes patiently waited months before taking further action, eventually engaging in reconnaissance by searching the network for data of interest, according to the indictment. This data included PII and confidential business information. The indictment alleges that the defendants accessed the computer network of Anthem without authorization for the purpose of conducting reconnaissance on Anthem’s enterprise data warehouse, a system that stores a large amount of PII, on multiple occasions in October and November 2014.
The indictment further alleges that once the data of interest had been identified and located, the defendants then collected the relevant files and other information from the compromised computers using software tools. The defendants then allegedly stole the data of interest by placing it into encrypted archive files and then sending it through multiple computers to destinations in China. The indictment alleges that on multiple occasions in January 2015, the defendants accessed the computer network of Anthem, accessed Anthem’s enterprise data warehouse, and transferred encrypted archive files containing PII from Anthem’s enterprise data warehouse from the United States to China.
Finally, the defendants allegedly then deleted the encrypted archive files from the computer networks of the victim businesses, in an attempt to avoid detection. In late January 2015, the defendants deleted certain archive files containing PII that they had previously transferred from Anthem’s enterprise data warehouse.
Defendant Wang is specifically alleged to have controlled two domain names connected to the criminal activity. According to the indictment, one of these domain names was associated with a backdoor used in the intrusion victimizing Victim Business 1, and the other was associated by Wang with a server used to create an email account used to conduct spearfishing attacks against employees of Victim Business 3.
This case was investigated by the FBI’s Indianapolis Field Office. Senior Counsel William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney and Deputy Chief of the General Crimes Unit Steven D. DeBrota of the Southern District of Indiana are prosecuting the case. Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Member of Nine Trey Gangsta Bloods Pleads Guilty to April 21, 2018, Shooting Inside the Barclays CenterRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FUGUAN LOVICK, a/k/a “Fu Banga,” pled guilty today in Manhattan federal court to a shooting that he committed inside the Barclays Center on April 21, 2018, as part of his participation in the Nine Trey Gangsta Bloods (“Nine Trey”). U.S. District Judge Paul A. Engelmayer accepted the defendant’s guilty plea.
U.S. Attorney Geoffrey S. Berman said: “Today, Fuguan Lovick admitted to a brazen and dangerous act of violence. While inside the Barclays Center with Tekashi 6ix 9ine and other Nine Trey gang members, Lovick fired a gun to intimidate rival gang members. We continue our daily work with our law enforcement partners to keep our communities safe and to vigorously investigate acts of violence committed by gang members.”
As alleged in the Indictment and statements made in open court:
Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn. Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business. As admitted in open court today, on April 21, 2018, LOVICK discharged a firearm inside the Barclays Center in Brooklyn in order to scare rival gang members.
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LOVICK, 42, of Brooklyn, New York, pled guilty to assault with a dangerous weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison, and to brandishing a firearm in furtherance of a crime of violence, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life. LOVICK is scheduled to be sentenced before Judge Engelmayer on August 19, 2019.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by Judge Engelmayer.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. He also thanked the Kings County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jacob Warren, Jonathan Rebold, and Sebastian Swett are in charge of the prosecution.
Man Who Assaulted Girlfriend Sent Back to Prison for Two More YearsRead the Press Release
A man who assaulted his pregnant girlfriend while on federal supervision was sentenced on May 8, 2019, to two years in federal prison.
Codie Lee Allen Fisher, age 29, from Cedar Rapids, Iowa, received the prison term after a court found that he violated the terms of his supervised release by using a controlled substance and alcohol, failing to comply with remote alcohol testing, and committing a new law violation, specifically Domestic Abuse Assault Impeding Air Flow, in violation of Iowa Code § 708.2A(2)(b).
Evidence at his revocation hearing showed Fisher, after consuming alcohol, got into a verbal argument with his pregnant girlfriend. The assault turned physical when Fisher placed his hands around her neck and throat and choked her multiple times. The victim reported almost blacking out twice during the assault. When police responded to the residence, they observed Fisher yelling at the victim, who was backed into a corner. At the time of the assault Fisher was serving a term of federal supervised release after pleading guilty to making a false statement during the purchase of a firearm in 2016. Fisher was previously sentenced to a 21-month term of imprisonment and ordered to serve a three-year term of supervised release following his release from Bureau of Prisons custody.
Fisher was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Fisher’s supervised release was revoked and he was ordered to serve an additional 24-month term of imprisonment. A no-contact order was also entered preventing Fisher from having any contact with the victim. Fisher must also serve an additional two-year term of supervised release after the prison term. There is no parole in the federal system.
Fisher is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the United States Probation Office for the Northern District of Iowa and the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-33.
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Man Pleads Guilty to Drug Distribution that Caused Overdose DeathRead the Press Release
ALEXANDRIA, Va. – An Virginia man pleaded guilty today to distribution of a drug that resulted in the death of a Leesburg woman.
According to court documents, Michael Napier, 35, of Aldie, distributed 1,4-butanadiol, an analogue of Gamma Hydroxybutyric Acid (GHB), a Schedule I controlled substance, which resulted in the death of A.H in June 2015. A medical examiner’s autopsy report for A.H. listed the cause of death as GHB Poisoning, and toxicology analysis revealed GHB was present in the victim’s blood and 1,4-butanadiol in A.H.’s urine. Three days after A.H.’s death, Napier was arrested in Loudoun County for driving under the influence of drugs, where law enforcement recovered a 500ml bottle of 1,4-butanadiol. Further investigation revealed Napier purchased a 1 liter bottle of 1,4-butanadiol online in May 2015 and showed text messages between Napier and the victim discussing drug distribution the eve of her death.
Napier pleaded guilty to distribution of 1,4-butanadiol, an GHB analogue, and faces a maximum penalty of 20 years in prison when sentenced on August 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michael L. Chapman, Loudoun County Sheriff, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Michael P. Ben’Ary and Special Assistant U.S. Attorney Lena Munasifi are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Safe Streets/HIDTA Task Force- Northern Virginia which is composed of Agents and Detectives from Fairfax County, PWC Police, Loudoun County Sheriff’s Office, Leesburg Police, Vienna Police, Alexandria City Police and Herndon Police.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-143.
Local Woman Sentenced to Prison for Fraudulently Obtaining Federal FundsRead the Press Release
DAYTON – Cynthia A. Faulkner, 34, of Dayton, Ohio, was sentenced to 21 months in prison for fraudulently obtaining food card benefits and submitting false income tax documents.
Faulkner pleaded guilty in January to three counts of making a false document, two counts of aiding in the filing of a false income tax return and one count of misprision of a felony.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture (USDA) Office of Inspector General Investigations, Midwest Region, and Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development (HUD) Office of Inspector General announced the sentence imposed yesterday by U.S. District Judge Thomas M. Rose.
According to court documents, Faulkner made false statements on her April 2013 application to receive SNAP (Supplemental Nutrition Assistance Program) benefits. As part of her request to reapply for cash and food assistance, Faulkner misrepresented the cost of her rental residence in Mason, Ohio, for which she paid more than $2,000 per month.
On a similar subsequent application in 2014, Faulkner falsely reported her and her husband’s total gross income as approximately $36,000. In fact, their total gross income for that period was nearly $91,000.
Faulkner also aided in the filing of materially false income tax returns by underreporting business receipts by hundreds of thousands of dollars over tax years 2011 and 2012.
Further, Faulkner had first-hand knowledge of a bank fraud scheme and failed to report it to authorities. That scheme involved Capital Group Properties and Consultants Corp of Mason and Cincinnati, Ohio, and National Appraisal Sources, LLC of Cincinnati, Ohio, which were both co-owned by Faulkner. The scheme included receiving payments for fraudulent real estate appraisals.
During her federal case, Faulkner submitted false documents to the Court in hopes of obtaining a continuance for a court hearing. In these bogus documents, she informed the Court she had received a hysterectomy and provided a false patient medical discharge summary from the Tampa General Hospital in Tampa, Fla. In fact, Faulkner underwent no such surgery.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, USDA OIG and HUD OIG, as well as Assistant United States Attorney Dwight Keller, who is prosecuting the case.
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Liberation Way Doctor Pleads Guilty to Health Care FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Dr. Domenick Braccia, 57, of Perkasie, PA entered a plea of guilty before Judge Wendy Beetlestone on one count of conspiracy to commit health care fraud. The charges against the defendant stem from federal and state investigations into an elaborate insurance fraud scheme involving a Bucks County-based addiction treatment center, Liberation Way.
Dr. Braccia served as the Medical Director of Liberation Way, and, as the sole doctor, was the head of medical treatment at all three of its facilities. As such, he was tasked with overseeing the care of all the patients seeking addiction treatment, ordering all medically necessary tests, evaluating the results of all medical tests and incorporating their results into any treatment plan, prescribing medications, and overseeing the staff who were tasked with other non-medical therapy and care of patients. However, Braccia did not provide the amount of medical care that was billed to insurance companies in his name, and he never even stepped foot in one of the three treatment centers that billed in his name.
Instead, Braccia signed blank forms and patient orders, averred to the medical necessity of testing for patients whom he never saw, prescribed for patients he did not see, and signed blank prescription forms. As a consequence, insurance companies lost millions of dollars paying for care that was not provided by Braccia, and patients did not receive the individualized medical care they needed.
State and federal criminal charges were announced in March 2019 against eleven people and nine businesses in connection with this health care fraud case. The investigation revealed an array of health care fraud schemes committed by individuals associated with Liberation Way, which is based in Yardley, Bucks County and has two other locations in Bala Cynwyd and Fort Washington, Montgomery County. These schemes included Braccia’s over-billing scheme as well as an elaborate kick-back scheme involving thousands of medically-unnecessary urine tests which were sent to the Florida-based laboratories for analysis.
“This prosecution and today’s guilty plea should send a clear message to those seeking to build their fortunes on fraud and the despair of individuals battling addiction: health care fraud and the opioid epidemic are major priorities for the United States Attorney’s Office, and your illegal actions will be uncovered and prosecuted,” said First Assistant United States Attorney Jennifer Arbittier Williams.
“This doctor was responsible for overseeing the medical care of people suffering from opioid addiction, and instead he conspired to commit fraud by signing blank prescription forms and attesting to treatment for patients he did not see,” said Pennsylvania Attorney General Josh Shapiro. “He did these acts to help perpetrate a massive insurance fraud that lined the pockets of Liberation Way’s founders and co-conspirators with millions of dollars. I am grateful for our partners in the U.S. Attorney’s Office, the FBI, and other agencies in Pennsylvania and Florida for their hard work in bringing this defendant to justice.”
“At Liberation Way, medical practices were shoddy and substantive treatment minimal,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Dr. Braccia abrogated his professional ethics and responsibilities in order to line his pockets and is now being held accountable for his actions. The FBI will continue to make health care fraud investigations a priority, to the benefit of both patients and taxpayers.”
“This case demonstrates the commitment of the OPM OIG, the Department of Justice, and our law enforcement partners to ensuring that federal health care programs, including the Federal Employees Health Benefits Program, are protected from fraud and abuse,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, U.S. Office of Personnel Management. “I am immensely proud of the work our office has done to not only safeguard taxpayer dollars, but also protect the health and wellbeing of federal employees, annuitants, and their families.”
The case was investigated by the Federal Bureau of Investigation, Department of Health and Human Services, the Office of Personnel Management, and the Department of Labor, and is being prosecuted by Assistant United States Attorney Nancy Beam Winter.
Leader of Nine Trey Gangsters Sentenced to Life in PrisonRead the Press Release
A Norfolk, Virginia, man was sentenced today to three consecutive life terms plus an additional 40 years in prison for his leadership role in a racketeering conspiracy, multiple murders, multiple attempted murders and various drug and gun crimes, all as part of his leadership of the Nine Trey Gangsters Bloods gang.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia; Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office; Interim Chief Angela Greene of Portsmouth Police; Chief Larry D. Boone of Norfolk Police; Chief James A. Cervera of Virginia Beach Police; Chief Colonel K.L. Wright of Chesapeake Police and Chief Thomas E. Bennett of Suffolk Police made the announcement.
According to evidence introduced at trial, Antonio Simmons, aka Murdock, 41, was a high-ranking leader of a group of Portsmouth and Norfolk-based members of the Nine Trey Gangsters, a Bloods gang affiliated with the United Blood Nation. Simmons and five other members and associates of the gang were charged for their roles in a spate of extreme violence in December 2015 that ended with five people dead and four others shot during seven separate shootings that crossed nearly every city in South Hampton Roads. Simmons was sentenced by Chief U.S. District Judge Mark S. Davis.
Nearly all of the victims in the case were unaffiliated with the Nine Trey Gangsters or any other gang. They included two mothers of young children and one grandmother who was murdered, along with her boyfriend, because gang members believed she was cooperating with the police in an investigation of another shooting carried out by a Nine Trey member just weeks before.
Simmons was found guilty of the two murders that occurred during attempted robberies he directed his men to commit. By the end of December, two of the gang’s primary shooters, Anthony Foye, aka Ace, and Nathaniel Mitchell, aka Savage, were in a competition to see who could gain a reputation within the gang for shooting the most people. To even the score the men were keeping, Mitchell gunned down a woman walking home from her job at the Norfolk International Airport four days before Christmas. The evidence at trial showed that Simmons bragged about the shootings carried out by Foye and Mitchell.
In late 2015, Simmons ordered Foye, Mitchell and co-conspirators Alvaughn Davis, aka LB, and Malek Lassiter, aka Leeko, to murder high-ranking members of a rival Hampton Roads-based Nine Trey Gangsters “line.” When the men were unable to find two of their targets, they drove to the house of a third man they planned to shoot. When the woman who opened the door told them the man was not at home, they shot her six times; her life was saved by the quick response of local EMTs and the Portsmouth Police Department. While the men fled from the scene, they fired several rounds at witnesses looking out of their windows. Foye and Mitchell were arrested after robbing a gas station store later the same night.
Simmons, Mitchell and Lassiter were convicted on all counts after a seven-week jury trial. Foye and Davis pleaded guilty before trial, and another associate of the gang, Donte Brehon, pleaded guilty in a separate case. Simmons was the last defendant to be sentenced. The men charged, and the sentences they received, are as follows:
- Antonio Lee Simmons, aka Murdock and Doc, 41, of Norfolk, Virginia; Racketeering conspiracy; Heroin distribution conspiracy; Two counts of murder in Aid of Racketeering; Four counts of attempted murder in aid of racketeering; Three counts of assault with a dangerous weapon in aid of racketeering; Two counts of use of a firearm resulting in death; Four counts of use of a firearm during a crime of violence; various other firearm and drug offenses; Life plus 60 years in prison.
- Nathaniel Tyree Mitchell, aka Savage, 26, of Portsmouth, Virginia; Racketeering conspiracy; Four counts of murder in aid of racketeering; Six counts of attempted murder in aid of racketeering; Five counts of assault with a dangerous weapon in aid of racketeering; Four counts of use of a firearm resulting in death; Six counts of use of a firearm during a crime of violence; Five life sentences plus 50 years in prison.
- Anthony Foye, aka Ace and Bull, 27, of Portsmouth, Virginia; Four counts of murder in aid of racketeering; Life in prison.
- Malek Lassiter, aka Leeko, 23, of Portsmouth, Virginia; Racketeering conspiracy; Three counts of attempted murder in aid of racketeering; Two counts of assault with a dangerous weapon in aid of racketeering; Three counts of use of a firearm during a crime of violence; 35 years in prison.
- Alvaughn Davis, aka LB, 30, of Portsmouth, Virginia; Racketeering conspiracy; Use of a firearm resulting in death; Accessory after the fact to murder in aid of racketeering; 45 years in prison.
- Donte Brehon, aka Dog Nutz, 37, of Norfolk, Virginia; Accessory after the fact to assault with a dangerous weapon in aid of racketeering; distribution and possession with intent to distribute heroin; 13 years in prison.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Trial Attorney Teresa A. Wallbaum of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse and John F. Butler prosecuted the case.
Leader of Nine Trey Gangsters Sentenced to Life in PrisonRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to three consecutive life terms plus an additional 40 years in prison for his leadership role in a racketeering conspiracy, multiple murders, multiple attempted murders, and various drug and gun crimes, all as part of his leadership of the Nine Trey Gangsters Bloods gang.
“Simmons and his gang committed horrific violence across nearly every community in Hampton Roads,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Their actions shattered five families and took parents away from their children. That they did these acts because the gang needed money and to enhance their reputation speaks volumes about what gangs really are – as opposed to what they claim to be when they recruit young men and women in our neighborhoods. Where gangs go, depravity and senseless violence follows. I would like to especially thank the police departments in every South Hampton Roads city for their assistance in bringing these men to justice.”
According to court documents, Antonio Simmons, aka “Murdock,” 41, was a high-ranking leader of a group of Portsmouth and Norfolk-based members of the Nine Trey Gangsters, a Bloods gang affiliated with the United Blood Nation. Simmons and five other members and associates of the gang were charged for their roles in a spate of extreme violence in December 2015 that ended with five people dead and four others shot during seven separate shootings that crossed nearly every city in South Hampton Roads.
Nearly all of the victims in the case were unaffiliated with the Nine Trey Gangsters or any other gang. They included two mothers of young children and one grandmother who was murdered, along with her boyfriend, because gang members believed she was cooperating with the police in an investigation of another shooting carried out by a Nine Trey member just weeks before.
Simmons was found guilty of the two murders that occurred during attempted robberies he directed his men to commit. By the end of December, two of the gang’s primary shooters, Anthony Foye, aka “Ace,” and Nathaniel Mitchell, aka “Savage,” were in a competition to see who could gain a reputation within the gang for shooting the most people. To even the score the men were keeping, Mitchell gunned down a woman walking home from her job at the Norfolk International Airport four days before Christmas. The evidence at trial showed that Simmons bragged about the shootings carried out by Foye and Mitchell.
In late 2015, Simmons ordered Foye, Mitchell, and co-conspirators Alvaughn Davis, aka “LB,” and Malek Lassiter, aka “Leeko,” to murder high-ranking members of a rival Hampton Roads-based Nine Trey Gangsters “line.” When the men were unable to find two of their targets, they drove to the house of a third man they planned to shoot. When the woman who opened the door told them the man was not at home, they shot her six times; her life was saved by the quick response of local EMTs and the Portsmouth Police Department. While the men fled from the scene, they fired several rounds at witnesses looking out of their windows. Foye and Mitchell were arrested after robbing a gas station store later the same night.
Simmons, Mitchell, and Lassiter were convicted on all counts after a seven-week jury trial. Foye and Davis pleaded guilty before trial, and another associate of the gang, Donte Brehon, pleaded guilty in a separate case. Simmons was the last defendant to be sentenced. The men charged, and the sentences they received, are as follows:
Name
Age, Hometown
Convictions
Total Sentence
Antonio Lee Simmons, aka “Murdock,” “Doc”
41, Norfolk
Racketeering conspiracy; Heroin distribution conspiracy; Murder in Aid of Racketeering (2); Attempted murder in aid of racketeering in aid of racketeering (4); Assault with a dangerous weapon (3); Use of a firearm resulting in death (2); Use of a firearm during a crime of violence (4); various other firearm and drug offenses
Life plus 60 years
Nathaniel Tyree Mitchell, aka “Savage”
26, Portsmouth
Racketeering conspiracy; Murder in aid of racketeering (4); Attempted murder in aid of racketeering (6); Assault with a dangerous weapon in aid of racketeering (5); Use of a firearm resulting in death (4); Use of a firearm during a crime of violence (6)
5 Life sentences plus 50 years
Anthony Foye, aka “Ace,” “Bull”
27, Portsmouth
Murder in aid of racketeering (4)
Life
Malek Lassiter, aka “Leeko”
23, Portsmouth
Racketeering conspiracy; Attempted murder in aid of racketeering (3); Assault with a dangerous weapon in aid of racketeering (2); Use of a firearm during a crime of violence (3)
35 years
Alvaughn Davis, aka “LB”
30, Portsmouth
Racketeering conspiracy; Use of a firearm resulting in death; Accessory after the fact to murder in aid of racketeering
45 years
Donte Brehon, aka “Dog Nutz”
37, Norfolk
Accessory after the fact to assault with a dangerous weapon in aid of racketeering; distribution and possession with intent to distribute heroin
13 years
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Angela Greene, Interim Chief of Portsmouth Police; Larry D. Boone, Chief of Norfolk Police; James A. Cervera, Chief of Virginia Beach Police; Col. K.L. Wright, Chief of Chesapeake Police; and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse and John F. Butler, and Trial Attorney Teresa A. Wallbaum of the Justice Department’s Organized Crime and Gang Section prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-130.
Lake Charles man subject to domestic violence protective order sentenced to 2 years in prison for possessing a revolverRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced today that John Casimere, 33, of Lake Charles, was sentenced to two years in prison by U.S. District Judge Donald E. Walter for possessing a revolver. He was also sentenced to three years of supervised release.
Lake Charles police encountered Casimere on May 28, 2018 at a Lake Charles residence after responding to a domestic disturbance involving a firearm. At the time of this incident, Casimere possessed an RG Industries .22-caliber revolver, had been previously convicted of a misdemeanor crime of domestic violence, and was subject to a protection order, which prohibited him from possessing a firearm. He pleaded guilty to the federal charge on February 8, 2019.
The ATF and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Justice Department Files Lawsuit Alleging Transperfect Staffing Solutions Discriminated Against Dual U.S. Citizens and Work-Authorized Non-U.S. CitizensRead the Press Release
The Department of Justice announced today that it filed a lawsuit against Chancery Staffing Solutions LLC (Chancery Staffing), a temporary staffing agency headquartered in New York. Chancery Staffing is the successor to TransPerfect Staffing Solutions LLC (TransPerfect Staffing) and continues to do business as both TransPerfect Staffing Solutions and TransPerfect Legal Solutions. The lawsuit alleges that TransPerfect Staffing discriminated against non-U.S. citizens and dual U.S. citizens in violation of the Immigration and Nationality Act (INA), and that Chancery Staffing is liable for the discrimination as its successor.
“Staffing agencies must be diligent in satisfying their obligation under the INA to avoid citizenship status discrimination against U.S. citizens and protected non-citizens, even when that discrimination is requested by a client,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice is committed to challenging such unlawful and discriminatory hiring practices.”
The lawsuit alleges that from at least April 4, 2017, to at least July 7, 2017, TransPerfect Staffing limited its recruitment and hiring of attorneys for a temporary document review project to U.S. citizens only. Additionally, the lawsuit alleges that from at least May 12, 2017, to July 7, 2017, TransPerfect Staffing further restricted its recruitment and hiring for positions under the project to exclude U.S. citizens who were also citizens of another country. Although it implemented these discriminatory policies at the request of a client, TransPerfect Staffing actively participated in the discriminatory hiring process and remained the employer of the document reviewers assigned to the project, according to the lawsuit.
Under the INA, it is unlawful for employers to discriminate intentionally against U.S. citizens, U.S. nationals, recent lawful permanent residents, asylees and refugees in hiring unless required to comply with a law, regulation, executive order, Attorney General determination, or provision of a federal, state, or local government contract. Absent such a requirement, employers that limit their hiring to U.S. citizens may violate the INA’s anti-discrimination provision.
The United States’ complaint seeks civil penalties, back pay on behalf of the workers, and other remedial relief to correct and prevent discrimination. The United States filed its suit in the Office of the Chief Administrative Hearing Officer, a specialized administrative court that Congress created to resolve such claims.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Jury finds podiatrist guilty of operating pill millRead the Press Release
ATLANTA – Dr. Arnita Avery-Kelly, a licensed podiatrist, has been found guilty on federal charges of illegally prescribing opioid painkillers and other drugs at clinic locations purporting to provide podiatric care in Sandy Springs, and Lithonia, Georgia.
“Avery-Kelly took an oath and was trusted to provide appropriate podiatric care to her patients,” said U.S. Attorney Byung J. “BJay” Pak. “Instead, with the assistance of her office manager, she prescribed addictive opioids without any legitimate medical need, turning her prescription pad into an ATM. Her behavior fed into the continuing problem of addiction to powerful prescription opioids, which, unfortunately, continues to take a daily toll on many members of our community.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the case, “While in the midst of this country’s prescription opioid crisis, removing and ultimately eliminating physicians who recklessly overprescribe pharmaceutical pills (particularly prescribed opioids) for non-medical reasons, is an important part of DEA’s mission. This pill peddling Podiatrist distributed large quantities of opiate-based pills to scores of drug-seeking patients. She will no longer be able to commit such unlawful acts because of the hard work and dedication put forth by DEA, its federal, state and local law enforcement partners and the U.S. Attorney’s Office.”
“Dr. Avery-Kelly DPM abused her position as a podiatrist and recklessly prescribed very powerful and addictive opioids without any regard for the devastating effects they would have,” said Derrick L. Jackson, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “HHS-OIG is committed to bringing to justice, those medical practitioners who would endanger our communities, taint their profession and abuse their ability to prescribe these drugs for profit.”
According to U.S. Attorney Pak, the charges and other information presented in court: Arnita Avery-Kelly was a licensed podiatrist, which means she was permitted to evaluate and treat the foot and leg. A nearly three-year federal investigation began when the Georgia Drug & Narcotics Agency (GDNA) agents contacted Dr. Avery-Kelly in November 2013, and again in February 2014, to discuss the high volume, high dosage prescriptions she had written for opioids. Despite GDNA’s warnings, as well as a subsequent inquiry by the Georgia Podiatry Board, Dr. Avery-Kelly, with the assistance of office manager Brenda Lewis, continued to prescribe large volumes of controlled substances without a legitimate medical need and outside the scope of podiatric practice.
After these visits, GDNA worked with the Drug Enforcement Administration (DEA) and the Department of Health and Human Services (HHS) to conduct the investigation, which culminated in this jury trial.
After being suspended from submitting claims through Medicare, Avery-Kelly began prescribing opioids and benzodiazepines to addicts and drug traffickers posing as patients at her podiatric clinics. During the time her clinics were open, Avery-Kelly prescribed over 275,000 30mg oxycodone pills, along with 104,000 8mg hydromorphone pills, and 300 fentanyl patches to patients who were either addicted to these substances or selling them on the streets. The average price for a single Oxycodone 30mg pill was about $30 per pill.
In April 2016, DEA and HHS agents executed a federal search warrant at Avery-Kelly’s office in Sandy Springs, effectively shutting down her clinics. At that time, Avery-Kelly also voluntarily surrendered her DEA registration, which permitted her to prescribe controlled substances. After five days of hearing evidence and two days of deliberation, a jury found Avery-Kelly guilty of 27 counts of distributing these highly addictive opioids, without a legitimate medical purpose and outside the scope of professional practice.
Sentencing for Arnita Avery-Kelly, 56, of Sandy Springs, Georgia, is scheduled for July 24, 2019, at 10:00 a.m. before U.S. District Judge Eleanor L. Ross. Avery-Kelly was indicted along with her officer manager, Brenda Lewis, on December 21, 2016.
This case is being investigated by the Drug Enforcement Administration and Department of Health and Human Services.
Assistant U.S. Attorneys Trevor Wilmot and Cassandra J. Schansman are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury Convicts KC Man of Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted by a federal trial jury today of his role in a three-months-long conspiracy that included at least 27 armed robberies, culminating in the armed robbery of a Walgreens in Blue Springs, Mo., in which a suspect was fatally shot by law enforcement officers.
Shannon R. Thomas, 28, was found guilty of participating in the conspiracy as well as participating in ten armed robberies. He was also found guilty of ten counts of brandishing a firearm in furtherance of a violent crime, and one count of being a felon in possession of a firearm. Thomas faces a mandatory minimum sentence of 70 years in federal prison without parole.
Evidence introduced during the trial indicated that Thomas and co-conspirators robbed 27 businesses in Blue Springs, Independence, North Kansas City, Raytown, Kansas City, Mo., and Kansas City, Kan., at gunpoint from Jan. 2 to March 24, 2016. In addition to the armed robberies charged in the indictment, evidence was introduced during the trial of other, uncharged robberies that were committed in furtherance of the conspiracy. Victim businesses included convenience stores, pharmacies, and other businesses.
The robberies followed a similar pattern: Two or three conspirators entered the business armed with handguns, wearing gloves, hoodies, and/or masks. The hoodies were drawn tightly over their faces to obscure their features. The employees were forced at gunpoint to hand over money from the cash register and the safe. The thieves wore the same hoodies in nearly all the robberies; Thomas wore a blue Kansas City Royals hoodie for the majority of the robberies he committed.
The spree of robberies culminated on March 24, 2016. Thomas, along with co-defendant Deonte J. Collins-Abbott, 24, of Grandview, Mo., and Jermon Seals of Shawnee, Kan., robbed the Walgreens at 7 Highway and Duncan in Blue Springs. Thomas placed a Springfield Armory .40-caliber semi-automatic pistol to the back of an employee’s head and took money from the front register. Collins-Abbott and Seals went over the pharmacy counter and took prescription grade cough syrup at gunpoint from the pharmacist. They left the business but were confronted by law enforcement officers as they were walking back to the vehicle. They failed to comply with the officers’ commands; Seals turned towards the officers, pointing a gun in their direction. Officers returned fire and Seals was fatally struck in the exchange. Thomas and Collins-Abbott were apprehended by officers after a short foot chase.
Collins-Abbott pleaded guilty and was sentenced to 25 years in federal prison without parole. Collins-Abbott admitted that he committed eight armed robberies between Feb. 3, 2016, and March 24, 2016.
Co-defendants Kevin T. Thompson-Randell, 23, and Demetrius Nelson, 26, both of Kansas City, Mo.; and Parrise K. Black, also known as “Kilo,” 26, and Frank A. Garner, Jr., 25, both of Grandview, have also pleaded guilty and await sentencing.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately three hours before returning the guilty verdict to U.S. District Judge Greg Kays, ending a trial that began Monday, May 6, 2019.
Under federal statutes, Thomas is subject to a sentence of up to 20 years in federal prison without parole for participating in the conspiracy, and up to 20 years in federal prison without parole for each of the ten armed robberies. Thomas is also subject to a mandatory minimum sentence of seven years in federal prison without parole for each of the ten counts of brandishing a firearm in furtherance of a crime of violence, which must be served consecutively. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine and Special Assistant U.S. Attorney Mary Kate Butterfield. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the North Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service.
Jamestown Man Pleads Guilty to Production and Possession of Child PornographyRead 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 James A. Chapman, a/k/a Fatz Guy, a/k/a Perverted Doe, 37, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on November 24, 2014, Chapman and Victim 1 communicated via Facebook Messenger about engaging in sexual activity. During the communications, the defendant offered to pay Victim 1 and one of her friends $60 each to have sex with him. Victim 1 stated that she was 16-years-old and that her friend was the same age. Later that evening, Victim 1 and Victim 2 went to Chapman’s residence in Jamestown, and the defendant engaged in sexual intercourse with them, after which Chapman paid each victim $60.
Following the sexual activity, the defendant used his cellular telephone to take a picture of Victim 1 and Victim 2 completely nude sitting on his bed. A review of Chapman’s Facebook accounts revealed that he then distributed the photograph, which constitutes child pornography, to four other individuals.
Subsequently, on April 7, 2017, the defendant began communicating with Victim 3, who was 17-years-old, through Facebook. During their communications, Chapman requested and received a sexually explicit image of Victim 3. The defendant then sent the image, which constitutes child pornography, to another individual. In addition, Chapman sent Victim 3 the sexually explicit image he took of Victim 1 and Victim 2.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for September 16, 2019, before Judge Vilardo.
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Indictment: Guatemalan Returned Less Than Four Months After Being DeportedRead the Press Release
KANSAS CITY, KAN. – A Guatemalan man was indicted here Wednesday on charges of unlawfully returning to the United States less than four months after he was deported. U.S. Attorney Stephen McAllister said.
Andres Marcelo De Leon-Perez, 25, is charged with one count of unlawfully re-entering the United States.
Documents filed in federal court in Kansas City, Kan., allege that on Dec. 27, 2018, Leon-Perez was deported and flown home to Guatemala. Less than four months later, April 11, 2019, he was found in Wyandotte County, Kan.
It was not the first time he was alleged to have returned unlawfully. On Nov. 4, 2017, the defendant was apprehended by the U.S. Border Patrol near Valentine, Texas. On Jan. 22, 2018, he was deported and flown home to Guatemala.
In his most recent arrest, De Leon-Perez was one of 10 persons detained after the Kansas Highway Patrol stopped their vehicle in Paola, Kan.
If convicted, he faces a penalty of up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
OTHER INDICTMENTS
Jordy Ulises Cody-Lemus, 20, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found April 11, 2019, in Wyandotte County, Kan.
If convicted, he faces a penalty of up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Alien Pleads Guilty After Third DWI in 5 YearsRead the Press Release
RICHMOND, Va. – A Guatemalan citizen pleaded guilty today to illegal reentry following removal after being convicted of a felony.
According to court documents, Esau Juarez-Garcia, 42, was arrested in March 2014 in Chesterfield County and convicted of his third driving while intoxicated offense in five years, which resulted in a felony. In April 2014, Juarez Garcia was deported at taxpayer expense. Sometime thereafter he illegally returned to the United States. In February 2019, ICE learned of his return after he was arrested in Chesterfield County for local violations.
Juarez-Garcia pleaded guilty to illegal reentry following removal after being convicted of a felony and faces a maximum penalty of 10 years in prison when sentenced on August 13. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Actual sentences for federal crimes are typically less than the maximum penalties
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. Magistrate Judge Roderick C. Young accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-59.
IRS Official Arrested on Federal Bribery Charge for Allegedly Taking $5,000 in Cash to Reduce a Taxpayer’s Debt to the Tax AgencyRead the Press Release
SANTA ANA, California – An Internal Revenue Service official was arrested this morning for allegedly soliciting and accepting a $5,000 bribe to reduce the tax liability of a taxpayer who was under audit.
Felecia Edna Taylor, 50, a resident of the Florence neighborhood in South Los Angeles, was arrested at the IRS office in Long Beach after being named in a one-count criminal complaint that charges her with solicitation and receipt of a bribe by a public official.
Taylor is making her initial court appearance this afternoon in United States District Court in Santa Ana.
According to an affidavit in support of the criminal complaint, Taylor, who has been employed at the IRS since 1990, works as a tax compliance officer in Long Beach, where she plans and conducts examinations of individual and business taxpayers. On May 1, a taxpayer contacted law enforcement, and stated that, at a meeting two days earlier, Taylor was “inviting a bribe” in exchange for lowering the amount owed to the IRS to $10,000, according to court documents. The taxpayer was supposed to pay the bribe to Taylor on May 7 at her Long Beach office, court papers state.
The taxpayer met with law enforcement on Tuesday, was equipped with recording devices, and was given $5,000 in cash to give to Taylor, the affidavit states. According to a recording of that meeting, Taylor provided adjusted tax records to show a reduction of the taxpayer’s liability to $10,616 as agreed and, in response, the taxpayer handed Taylor an envelope containing $5,000 in cash. Taylor allegedly took the envelope in one hand, mouthed the word, “Five?” and placed five fingers in the air to non-verbally confirm the amount of cash the taxpayer had just given her. When the taxpayer replied, “Yes, what we agreed on, yep it’s all there,” Taylor placed the envelope on her desk and stated, “We are all done,” the affidavit states.
If convicted of the bribery charge, Taylor would face a statutory maximum penalty of 15 years in federal prison.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the U.S. Treasury Inspector General for Tax Administration.
This case is being prosecuted by Assistant United States Attorney Jennifer Waier of the Santa Ana Branch Office.