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Tuesday 30 April 2019
Registered Sex Offender Sentenced for Distribution of Child Pornography after Viewing Pornographic Images in PublicRead the Press Release
CORPUS CHRISTI - A 65-year-old Corpus Christi sex offender has received a lengthy federal prison sentence following his conviction for distribution of child pornography, announced U.S. Attorney Ryan K. Patrick. Manuel Diaz pleaded guilty Jan. 31, 2019.
Today, U.S. District Judge Neva Gonzales Ramos sentenced Diaz to 180 months in federal prison. The sentence will be immediately followed by 1o years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Diaz will also be ordered to register as a sex offender.
Following the imposition of the lengthy term, the defense called it “essentially a death sentence.”
Diaz has been a sex offender since 1984, when he was convicted for sexually assaulting a child out of Harris County.
On July 3, 2017, several employees at a local drug store noticed Diaz as he scrolled through photos on a kiosk in the photo lab area - in plain view of employees and customers. People noticed what they believed to be images of child pornography among what they described as “a lot” which were stored on Diaz’ phone and hooked into the kiosk by a data cable. Employees contacted local law enforcement who placed Diaz under arrest. Diaz subsequently confessed to possessing the images.
In total, Diaz was in possession of more than 100 images of child pornography and 65 videos containing child pornography. A forensic evaluation of his phone led investigators to several messages on a popular social media app in which Diaz had sent the images to other users, including people Diaz believed were underage females.
Diaz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Brittany L. Jensen and Hugo R. Martinez prosecuted the case, which 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."
Raleigh Man Convicted of Roanoke Rapids Bank RobberyRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that today, DANNIE SIMON PARKER, JR., 48, of Raleigh, North Carolina was convicted in federal court following a two-day trial before United States District Judge James C. Dever, III. The jury found PARKER guilty of Bank Robbery.
On December 28, 2017, PARKER, entered the PNC Bank in Roanoke Rapids, North Carolina. Utilizing a handwritten demand note, PARKER, who was unarmed, stole $1,975 from the bank before fleeing. He was caught a short time later on I-95 South, after police blocked traffic in order to apprehend him. In the passenger seat of the car PARKER was driving were the funds from the robbery, as well as the demand note, and various other incriminating items. PARKER has two prior convictions for federal bank robbery, and was on federal supervised release at the time of the robbery.
PARKER faces a maximum sentence of 20 years imprisonment followed by 3 years of supervised release, along with a fine of up to $250,000.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Federal Bureau of Investigation, Roanoke Rapids Police Department, and the Halifax County Sheriff’s Office. Assistant United States Attorneys Donald R. Pender and Melissa B. Kessler handled the prosecution of this case for the government.
Providence Man Sentenced for Possessing Images and Videos of Child PornographyRead the Press Release
PROVIDENCE, RI –A Providence man who admitted to possessing dozens of videos and images of child pornography was sentenced today to 30 months in federal prison, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Rhode Island State Police Superintendent Colonel James M. Manni.
At the time of his guilty plea in December 2018, Samuel Mendez-Garcia, 43, admitted to belonging to an online social media group that viewed and exchanged child pornography. Mendez-Garcia also admitted to sharing child pornography via Facebook messenger.
According to information presented to the Court, in late March 2018, the National Center for Missing and Exploited Children received information from security personnel at Facebook that a user of their services, with an IP address in Rhode Island, uploaded child pornography. The information was forwarded to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force who determined that the IP address and the Facebook account belonged to Mendez-Garcia.
On July 19, 2018, members of the ICAC task force executed a court-authorized search of Mendez-Garcia’s residence and seized a laptop computer and a cell phone owned by Mendez-Garcia. Simultaneously, law enforcement officers met with Mendez-Garcia at his place of employment and seized a cell phone that was in his possession. A forensic analysis of Mendez-Garcia’s cell phones by a member of the ICAC Task Force revealed dozens of videos and images of child pornography, including images involving prepubescent minors and sadistic/masochistic conduct.
Mendez-Garcia was arrested on August 1, 2018 and ordered detained in federal custody.
An immigration detainer has been lodged against Mendez-Garcia by U.S. Immigration and Customs Enforcement after it was determined that he entered the United States illegally. It was also determined that Mendez-Garcia was prevented from entering the United States in 2002 when he illegally attempted to cross the U.S. border from Mexico.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
United States Attorney Aaron L. Weisman acknowledges and thanks the Newport Police Department, a member of the ICAC Task Force, for its assistance in the investigation of this matter.
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Portland Man Sentenced to 14 Years in Federal Prison for Dealing Oxycodone and Money LaunderingRead the Press Release
Downloadable file: Government Sentencing Memo (w/ Photos)
PORTLAND, Ore.—Shawn Terrell Crane, 39, of Portland, was sentenced today to 168 months in federal prison and three years’ supervised release for conspiring to distribute oxycodone and laundering drug proceeds.
The case against Crane is the result of a lengthy FBI and Portland Police Bureau investigation of a Portland-area drug trafficking organization that included a three-month wiretap of Crane’s cell phones. Crane is the leader of a criminal conspiracy that sourced oxycodone pills from Fresno, California and transported them to Oregon by vehicle and U.S. mail for distribution in and around the Portland metropolitan area.
During the course of the conspiracy, Crane was responsible for distributing more than 30,000 oxycodone pills and arranging for hundreds of thousands of dollars in cash to be deposited into third-party bank accounts to conceal its source. He used violence and the threat of violence to bolster his position of authority within the drug trafficking organization, intimidate competition and achieve his objectives. On one occasion, Crane videotaped himself assaulting and robbing a drug customer while armed with a gun. Crane then sent the video to others, boasting of his willingness to engage in violence without backup from his associates.
Crane previously pleaded guilty to one count of conspiracy to distribute oxycodone and one count of conspiracy to launder drug proceeds on May 3, 2018.
The FBI and Portland Police Bureau investigated this case. It was prosecuted by Leah K. Bolstad and Peter D. Sax, Assistant U.S. Attorneys for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), 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.
Pharmacist at SSM St. Clare Health Center Pleads Guilty to Stealing Prescription PillsRead the Press Release
St. Louis, MO – Tina L. Obermeier, RPh, 59, of Webster Groves, MO, entered a guilty plea to one count of Obtaining Controlled Substance by Fraud or Forgery before Senior United States District Judge E. Richard Webber today. Obermeier is scheduled to appear for sentencing on July 24, 2019.
According to court documents, Obermeier was employed as a pharmacist at SSM St. Clare Health Center in Fenton, Missouri, during the time of the offense from January 2017 to April 2018. She would illegally obtain drugs such as hydrocodone, methadone, methylphenidate, and alprazolam from the pharmacy at St. Clare. Obermeier took the drugs in different ways. In some instances, she hid the drugs under her lab coat or other clothing instead of placing prescribed drugs in bins for delivery to patients. On other occasions, she reprinted labels for previously filled prescriptions causing the prescriptions to be filled a second time. Obermeier also printed labels and filled prescriptions for patients for whom there were no drugs prescribed. Obermeier stole approximately 2,476 controlled substances from the Pyxis medical station in the St. Clare pharmacy. Obermeier took the drugs for her own personal use.
Obermeier faces a maximum penalty of four years and a fine of not more than $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Drug Enforcement Administration. Assistant U.S. Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
Pharmaceutical Company Agrees to Pay $17.5 Million to Resolve Allegations of Kickbacks to Medicare Patients and PhysiciansRead the Press Release
The Justice Department announced today that US WorldMeds LLC (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn® and Myobloc®. USWM is a pharmaceutical manufacturer headquartered in Louisville, Kentucky.
“The Department of Justice is committed to ensuring that physicians’ and patients’ selection of medications is not influenced by improper financial considerations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The nation’s health care programs and taxpayers deserve health care companies that play by the rules, including the Anti-Kickback Statute.”
“Pharmaceutical companies and other healthcare providers that pay kickbacks to patients and physicians to improperly induce drug prescriptions drive up the costs of health care and divert critical resources from the Medicare program,” said U.S. Attorney John H. Durham for the District of Connecticut. “This case originated with the filing of whistleblower lawsuits currently pending in the District of Connecticut, and the whistleblowers will be handsomely rewarded for exposing this scheme. We encourage all individuals who are aware of fraud against the government to come forward. The Connecticut U.S. Attorney’s Office will continue to pursue companies and providers that defraud federal health care programs.”
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration — which includes paying patients’ copay obligations — to induce Medicare patients to purchase the company’s drugs.
USWM substantially increased the price of Apokyn in or around January 2012, a decision that resulted in a corresponding increase to Medicare patients’ copays — which for many patients exceeded $5,000 per year. The United States alleged that, from the time of the price increase through June 30, 2013, USWM illegally paid Medicare patients’ Apokyn copays through a third-party foundation. During the relevant time period, USWM allegedly knew it was the only donor to the foundation’s Parkinson’s Disease fund and that virtually all of the fund’s donations were spent on Medicare Apokyn patients. The United States alleged that these payments represented illegal inducements to patients in violation of the Anti-Kickback Statute and False Claims Act.
The United States also alleged that USWM paid kickbacks to two physicians to induce prescriptions of Apokyn and Myobloc. Specifically, the United States alleged USWM paid these physicians excessive speaking and consulting fees and provided impermissible entertainment, such as lavish meals, private plane rides, and all-expense paid trips with their spouses (including trips to the Kentucky Derby).
Contemporaneously with the False Claims Act settlement, USWM has entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General. The five-year CIA requires, among other things, that USWM implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization, compliance–related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program. Simply put, OIG’s goal is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without the corrupt or profit-driven influence of drug manufacturers.”
“Ensuring the integrity of TRICARE, the U.S. Defense Department's health care program for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The settlement agreement announced today is the direct result of a joint investigative effort and is demonstrative of the DCIS' commitment to work with its law enforcement partners to investigate kickback schemes that divert funds from TRICARE and ensure that TRICARE patients properly receive the care and treatment that they deserve.”
The False Claims Act allegations resolved by the settlement were originally brought in lawsuits filed by whistleblowers under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3,150,000.00 as their share of the recovery.
The investigation was conducted by the Civil Division of the Department of Justice; the U.S. Attorney’s Office for the District of Connecticut; the Department of Health and Human Services Office of Inspector General; the Food and Drug Administration, Office of Criminal Investigations; and Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Bennett v.US WorldMeds, LLC, The Assistance Fund, Inc. et al., No. 3:13-CV-363 (D. Conn.) and United States ex rel. Chinnapongse v.US WorldMeds, LLC, No. 3:16-cv-0080 (D. Conn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Pharmaceutical Company Agrees to Pay $17.5 Million to Resolve Allegations of Kickbacks to Medicare Patients and PhysiciansRead the Press Release
The Justice Department announced today that US WorldMeds LLC (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn® and Myobloc®. USWM is a pharmaceutical manufacturer headquartered in Louisville, Kentucky.
“The Department of Justice is committed to ensuring that physicians’ and patients’ selection of medications is not influenced by improper financial considerations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The nation’s health care programs and taxpayers deserve health care companies that play by the rules, including the Anti-Kickback Statute.”
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration — which includes paying patients’ copay obligations — to induce Medicare patients to purchase the company’s drugs.
USWM substantially increased the price of Apokyn in or around January 2012, a decision that resulted in a corresponding increase to Medicare patients’ copays — which for many patients exceeded $5,000 per year. The United States alleged that, from the time of the price increase through June 30, 2013, USWM illegally paid Medicare patients’ Apokyn copays through a third-party foundation. During the relevant time period, USWM allegedly knew it was the only donor to the foundation’s Parkinson’s Disease fund and that virtually all of the fund’s donations were spent on Medicare Apokyn patients. The United States alleged that these payments represented illegal inducements to patients in violation of the Anti-Kickback Statute and False Claims Act.
The United States also alleged that USWM paid kickbacks to two physicians to induce prescriptions of Apokyn and Myobloc. Specifically, the United States alleged USWM paid these physicians excessive speaking and consulting fees and provided impermissible entertainment, such as lavish meals, private plane rides, and all-expense paid trips with their spouses (including trips to the Kentucky Derby).
“Pharmaceutical companies and other healthcare providers that pay kickbacks to patients and physicians to improperly induce drug prescriptions drive up the costs of health care and divert critical resources from the Medicare program,” said U.S. Attorney John H. Durham for the District of Connecticut. “This case originated with the filing of whistleblower lawsuits currently pending in the District of Connecticut, and the whistleblowers will be handsomely rewarded for exposing this scheme. We encourage all individuals who are aware of fraud against the government to come forward. The Connecticut U.S. Attorney’s Office will continue to pursue companies and providers that defraud federal health care programs.”
Contemporaneously with the False Claims Act settlement, USWM has entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General. The five-year CIA requires, among other things, that USWM implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization, compliance–related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program. Simply put, OIG’s goal is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without the corrupt or profit-driven influence of drug manufacturers.”
"Ensuring the integrity of TRICARE, the U.S. Defense Department's health care program for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS)," stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. "The settlement agreement announced today is the direct result of a joint investigative effort and is demonstrative of the DCIS' commitment to work with its law enforcement partners to investigate kickback schemes that divert funds from TRICARE and ensure that TRICARE patients properly receive the care and treatment that they deserve."
The False Claims Act allegations resolved by the settlement were originally brought in lawsuits filed by whistleblowers under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3,150,000.00 as their share of the recovery.
The investigation was conducted by the Civil Division of the Department of Justice; the U.S. Attorney’s Office for the District of Connecticut; the Department of Health and Human Services Office of Inspector General; the Food and Drug Administration, Office of Criminal Investigations; and Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Bennett v.US WorldMeds, LLC, The Assistance Fund, Inc. et al., No. 3:13-CV-363 (D. Conn.) and United States ex rel. Chinnapongse v.US WorldMeds, LLC, No. 3:16-cv-0080 (D. Conn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Pennsylvania Man Sentenced to Three Years in Prison for Defrauding Lending Company of More Than $400,000Read the Press Release
CAMDEN, N.J. – The president of a staffing company was sentenced today to 36 months in prison for defrauding a commercial finance lending company out of more than $400,000, U.S. Attorney Craig Carpenito announced.
Jeremy Hare, 48, of Philadelphia, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with wire fraud. Judge Bumb imposed the sentence today in Camden federal court.According to documents filed in the case and statements made in court:
Hare was the president and managing member of Apollo Search Partners LLC, a staffing agency with an office in New Jersey. On June 16, 2017, Hare had Apollo enter into a financing agreement with a commercial finance lender that offered funding to companies so that they could meet payroll and other obligations. The lender agreed to provide funding to Apollo. In order to get funding, Apollo would provide the Victim Company invoices and supporting time cards for each person Apollo staffed with a client.
Between June 20, 2017 and Aug. 15, 2017, Hare submitted more than 15 invoices to the lender even though Apollo never staffed most of the individuals listed on the invoices and the time sheets submitted with the invoices included hours that were never worked. Based on those invoices, the lender provided more than $400,000 to Apollo between June and August 2017. To date, the lending company has not received reimbursement for that funding.
In addition to the prison term, Judge Bumb sentenced Hare to three years of supervised release and ordered him to pay $411,838 in restitution.
U.S. Attorney Carpenito credited and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit and Sarah Devlin of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Ronald L. Greenblatt Esq., Philadelphia
Pedro Cortez-Gomez Sentenced to Serve 15 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 29, 2019, Pedro Cortez-Gomez, 36, of Greeneville, Tennessee, a citizen of Mexico, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 15 years in federal prison for his role in a methamphetamine distribution conspiracy. Since Cortez-Gomez was residing in the United States illegally, he faces deportation after serving his sentence in federal prison.
Cortez-Gomez pleaded guilty in January 2019 to conspiring with his girlfriend Kayla Leanne Reaves, 25, of Afton, Tennessee; Casey Hannah Howren, 27, of Elizabethton, Tennessee; and others, to distributing between 1.5 and 4.5 kilograms of actual methamphetamine or “Ice.”
On April 22, 2019, Reaves was sentenced by Judge Greer to serve 41 months in federal prison for her role in the conspiracy. Sentencing for Howren is set for July 8, 2019.
Agencies involved in this investigation included Third Judicial District Drug Task Force, Greene County Sheriff’s Department, Greeneville Police Department, Elizabethton Police Department, Johnson City Police Department, Tennessee National Guard - Counterdrug Task Force, U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations, FBI and ATF. Assistant U.S. Attorneys Christian Lampe and Robert Reeves represented the United States in court proceedings.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Owner of Florida Medical Clinic Sentenced to PrisonRead the Press Release
An owner of a Florida medical clinic was sentenced to serve 91 months in prison today for her role in a $2.5 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Juliette Anais Tamayo, 54, the owner of Miami-based clinic Sunshine Medical Care Group Inc. (Sunshine), was sentenced by U.S. District Judge Cecilia Altonaga of the Southern District of Florida. Judge Altonaga also ordered Tamayo to pay $2.5 million in restitution. Tamayo pleaded guilty in February 2019 to one count of conspiracy to commit health care fraud and wire fraud. Also, Tamayo previously pleaded guilty to conspiracy to pay and receive kickbacks and to defraud the United States.
Tamayo was charged in a December 2018 superseding indictment with charges stemming from her involvement in a Part A home health care and Part B medical services fraud scheme in which she sold medically unnecessary home health care prescriptions to home health agency owners who in turn billed Medicare. According to her admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine. The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries. Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions. In addition, Sunshine billed Medicare directly for medical services purportedly provided at the clinic that were not necessary and/or were not provided.
The case was investigated by the FBI, HHS-OIG, and USSS. Trial Attorneys Adam G. Yoffie, Gary A. Winters and Sara Clingan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida handled the asset forfeiture proceedings.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Oshkosh Fentanyl Dealer Receives 20 Years in Federal Prison for Overdose DeathsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that Desmond T. Burns (age: 40) of Oshkosh, Wisconsin, appeared in federal court in Green Bay and was sentenced to 20 years in prison for distributing fentanyl that resulted in the overdose deaths of four individuals in the Fox Valley. During proceedings in this case, Burns acknowledged distributing an especially potent form of fentanyl, which led to the overdose deaths in the summer of 2017.
“Our hearts are heavy with the reality of four lives lost because of the fentanyl the defendant sold,” said U.S. Attorney Krueger. “The dangers of fentanyl cannot be overstated. Just a quarter of a milligram of fentanyl can be fatal. Yet fentanyl is regularly being trafficked in Wisconsin, causing hundreds of overdose deaths each year. This lengthy sentence should send a clear message: Anyone dealing a deadly poison like fentanyl can face decades in federal prison. We are committed to working with federal, state, and local partners to prosecute fentanyl trafficking aggressively. We commend the excellent partnership among the law enforcement agencies that brought this case to justice.”
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the “extremely serious” nature of Burns’ crime and the negative effect that fentanyl and all drugs have on the community. He found that Burns was aware of the inherent dangers of distributing illegal substances, finding that although Burns may not have intended for his customers to die, he reasonably could foresee that one of them might suffer a fatal overdose. Following his release from prison, Burns also must serve 10 years on federal supervised release.
The case was investigated by the New London Police Department, the Appleton Police Department, the Neenah Police Department, and the Winnebago County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Operator of McAllen Area DME Company Sentenced for Health Care FraudRead the Press Release
McALLEN, Texas ‐ The owner of a durable medical equipment (DME) company has been ordered to federal prison for defrauding Medicaid of more than $3 million, announced U.S. Attorney Ryan K. Patrick. Anna Ramirez-Ambriz, 57, of McAllen, pleaded guilty March 31, 2017.
Today, U.S. District Judge Randy Crane handed Ramirez-Ambriz a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay more than $3 million in restitution to the Texas Medicaid Program.
Ramirez-Ambriz owned Compassionate Medical Supply located in Edinburg. From 2007 through 2013, Ramirez-Ambriz billed Texas Medicaid for higher quantities and more costly incontinence supplies than were actually delivered to more than 100 Texas Medicaid recipients. Compassionate employees were instructed to provide recipients with fewer and less expensive incontinence supplies than Ramirez-Ambriz billed to Texas Medicaid. As part of her plea, Ramirez-Ambriz admitted she submitted false and fraudulent claims to Texas Medicaid.
As a result of her scheme, Ramirz-Ambriz further admitted that Texas Medicaid suffered a loss of $3,143,149.41.
Ramirez-Ambriz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Attorney General’s Medicaid Fraud Control Unit, FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
Ohio Man Sentenced to Eight Years in Prison for Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. -- An Ironton, Ohio man who possessed drugs and guns in Huntington was sentenced to eight years in prison, announced United States Attorney Mike Stuart. Stuart commended the investigation conducted by the Bureau of Alcohol, Firearms, and Explosives (ATF) and the Huntington Police Department.
“Eight years in prison for yet another drug dealer with a gun,” said United States Attorney Mike Stuart. “We are prosecuting record and historic numbers of drug and gun defendants to keep our children, our families and our communities safe.”
Bryan Patrick, 30, previously pled guilty to knowingly and intentionally possessing methamphetamine with intent to distribute and using and carrying firearms during and in relation to a drug trafficking crime. On September 26, 2018, officers with the Huntington Police Department responded to the Spring Hill Cemetery in Huntington and found Patrick slumped over in the driver’s seat of his vehicle. Patrick admitted to officers that he had used heroin earlier in the day and passed out. Officers recovered two loaded firearms between the driver’s seat and the center console in the vehicle. One firearm was a Walther PP22 semi-automatic pistol, which was fully loaded with a round in the chamber, and the other was a Kel-Tec 9mm semi-automatic pistol. In his pocket, Patrick had one package of methamphetamine that weighed approximately 8.22 grams and another package of methamphetamine that weighed 56.76 grams. Patrick also had digital scales in his vehicle. Patrick admitted that he intended to distribute the methamphetamine and that he carried the firearms for his protection.
Assistant United States Attorney Monica D. Coleman handled the prosecution. United States District Court Judge Robert C. Chambers imposed the sentence.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
SDWVNews and USAttyStuart
Ohio Glass Company Owner Pleads Guilty to Not Paying Employment TaxesRead the Press Release
The owner of a Greenville, Ohio, glass company pleaded guilty today to failing to truthfully account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Gail Cooper, 64, of Greenville, was the sole owner of Greenville Architectural Glass LLC (GAG) during the years 2007 through 2015. GAG primarily installed glass in commercial and residential buildings for clients in Ohio. GAG paid wages to its employees during the years 2013 through 2015. As the person responsible for GAG’s finances, Cooper was required to withhold federal income taxes and Social Security and Medicare taxes from employees’ wages and pay those amounts to the Internal Revenue Service (IRS). Cooper was also required to file quarterly employment tax returns with the IRS. Although Cooper caused GAG to withhold taxes from employees’ wages, she neither paid those amounts over to the IRS, nor filed the required quarterly returns for the first quarter of 2013 through the second quarter of 2015. Cooper also failed to pay over to the IRS unemployment taxes.
As part of her plea agreement, Cooper also admitted that she filed false individual income tax returns for the years 2008 – 2010 on which she understated GAG’s gross receipts and overstated its expenses.
Cooper also admitted in plea documents that she willfully failed to file income tax returns for the years 2011 through 2014, which would have reported her income from GAG and other sources. Cooper paid a professional tax return preparer to complete returns for those years, but Cooper never filed them.
U.S. District Judge Thomas M. Rose set sentencing for Aug. 2. Cooper faces up to five years in prison and a $250,000 fine. Cooper admitted that her conduct caused a loss to the government of more than $500,000, and agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their assistance in this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.
Ohio County Magistrate admits to tax fraudRead the Press Release
WHEELING, WEST VIRGINIA – Ohio County Magistrate Harry A. Radcliffe, III, has admitted to tax fraud, United States Attorney Bill Powell announced.
Radcliffe, age 60, pled guilty to one count of “Conspiracy to Impede the Internal Revenue Service.” In tax years 2013, 2014, and 2015, Radcliffe accepted a total of approximately $22,000 in cash payments from William W. Seelbach, then owner of W&S Bail Bonding d/b/a A Bail Bonding by ABC (“ABC”), which payments were offered by Mr. Seelbach as bribes. These payments were made and received in cash, at least in part, in an effort to impede the Internal Revenue Service in the collection of income taxes. Radcliffe willfully failed to report this income to the Internal Revenue Service, resulting in a total tax loss of $5,500.00. He also failed to report this extra-judicial income to the Supreme Court of Appeals of West Virginia.
As a part of the plea, Radcliffe has agreed to pay $5,500 in restitution to the Internal Revenue Service.
Radcliffe faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Jarod J. Douglas and Shawn M. Adkins prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.North Lauderdale Resident Sentenced to Prison for Being a Felon in Possession of a Firearm and Possession of CocaineRead the Press Release
A North Lauderdale resident was sentenced today to more than six years in prison for being a felon in possession of a firearm and possession of cocaine.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
Christopher Sergo Denis, 28, of North Lauderdale, was sentenced by U.S. District Judge James I. Cohn to 77 months in prison, to be followed by 3 years of supervised release for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and a concurrent term of 12 months in prison, to be followed by 1 year of supervised release for possession of cocaine, in violation of Title 21, United States Code, Section 844 (Case No. 18-CR-60296).
According to the court record, including the agreed upon factual proffer, on September 15, 2018, Denis posted a video recording that he labeled “Wild Wild West” on Facebook as he was firing three firearms at a local gun range. A BSO detective discovered the Facebook posting and brought it to the attention of ATF. An ATF Special Agent viewed the Facebook posting, went to the gun range, and recovered evidence documenting Denis’s presence at the gun range as well as a video recording made by the gun range of Denis firing the firearms.
On October 18, 2018, an ATF Special Agent and BSO detectives arrested Denis outside a courtroom in the Broward County Courthouse in Fort Lauderdale when he arrived to attend a hearing in a pending state criminal case. In his pocket, Denis had a small container in which there were fourteen plastic zip-lock bags, each containing a small quantity of cocaine.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and BSO in this matter. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Non-Citizen Living in Texas Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Gulfport, Miss – Consuelo Azeneth Garcia Lopez, 39, of Laredo, Texas, pled guilty today before U.S. District Judge Sul Ozerden to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and DEA Special Agent in Charge Brad L. Byerley.
On September 27, 2016, Garcia Lopez was traveling eastbound on Interstate 10 when she was pulled over for a traffic violation by a Gulfport police officer near mile marker 37. She informed the officer that she was tired, having driven all day, but could not give a location to which she was traveling. Instead, she said she would be told where to go when she arrived in Alabama. The officer learned that Garcia Lopez had several border crossings into and out of Mexico. He asked and obtained consent to search the vehicle and located almost 5 kilograms of pure methamphetamine hidden in the vehicle. Garcia Lopez was legally in the country but is not a U.S. citizen.
Garcia Lopez will be sentenced on July 30, 2019 by Judge Ozerden, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by the Gulfport Police Department and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.
Nine Individuals Have Plead Guilty to Involvement in Staged AccidentsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Richard Ronald Wells of Spokane, Washington pleaded guilty to multiple criminal charges in connection with his role in a conspiracy to defraud an insurance company by staging an automobile accident and to launder the criminally derived proceeds. Richard Ronald Wells pled guilty to six counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Chief United States District Judge Thomas O. Rice accepted Wells’ nine guilty pleas and scheduled a sentencing hearing for July 30, 2019, at 10:00 a.m. in Spokane, Washington.
According to court documents and information disclosed during court proceedings, Wells admitted to conspiring with others to stage an October 2016 accident in Liberty Lake, Washington, involving Wells’ 2015 Ram 3500 truck, Christopher Joseph Frangella’s 2005 Ford F250 truck, and another individual’s 2005 Baja boat in order to defraud Safeco Insurance Company out of approximately $338,266. Wells and Frangella allowed the other individual to deliberately crash Wells’ Ram 3500 truck into Frangella’s truck while towing the other individual’s boat. False material representations were made to police, emergency and medical personnel, and Safeco Insurance Company about the manner in which the accident occurred and the cause, nature and extent of the injuries incurred. Wells and the others falsely claimed that they suffered injuries from the accident and communicated with Safeco about their fraudulent claims via interstate telephone calls, facsimile transmissions, and mailings. Wells received an approximate $59,557 split of the fraud proceeds in the form of a check from Safeco.
Eight other individuals have pleaded guilty to criminal charges for their role in the scheme to defraud insurance companies: Ryan Folks Park of Spokane, Washington, pleaded guilty to fourteen counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit health care fraud, two counts of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Park admitted to directly participating in at least thirteen accidents staged by co-conspirators between 2013 and 2017 in Washington, Nevada, California, and Idaho. The fraudulent insurance proceeds generated by the thirteen staged accidents totaled approximately $2,836,852. He is scheduled to be sentenced on June 6, 2019.
Kimberly Rita Boito of Spokane, Washington, pleaded guilty to three counts of mail fraud, one count of wire fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit health care fraud, two counts of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Boito admitted to participating in at least four staged accidents generating approximately $1,238,964 in fraud proceeds. She is scheduled to be sentenced on June 13, 2019.
Christopher Joseph Frangella of Nine Mile Falls, Washington, pleaded guilty to five counts of mail fraud and one count of conspiracy to commit mail and wire fraud. Frangella admitted to participating in five staged accidents in Washington, Idaho and Nevada. The fraudulent proceeds generated from the five accidents totaled approximately $968,737. He is scheduled to be sentenced on June 6, 2019.
Bonnie Jean Bonney of Placerville, California, pleaded guilty to five counts of mail fraud, one count of wire fraud, and one count of conspiracy to commit mail and wire fraud. Bonney admitted to participating in at least four staged accidents in California and Nevada which generated approximately $1,183,872 in fraudulent proceeds. She is scheduled to be sentenced on May 8, 2019.
Brittany Jo Harris of Newport, Washington, pleaded guilty to two counts of mail fraud, one count of conspiracy to commit mail and wire fraud, and one count of conspiracy to commit health care fraud. Harris admitted to participating in at least two staged accidents in Idaho and California that generated approximately $448,707 in fraudulent insurance proceeds. She is scheduled to be sentenced on July 18, 2019.
Stephanie Stock of San Jose, California, pleaded guilty to one count of conspiracy to commit mail and wire fraud. She is scheduled to be sentenced on July 16, 2019.
Matthew David Carter of Las Vegas, Nevada pleaded guilty to four counts of mail fraud and one count of conspiracy to commit mail and wire fraud. Carter admitted to participating in two staged accidents in Las Vegas, Nevada, that generated approximately $566,512 in fraud proceeds. He is scheduled to be sentenced on July 10, 2019.
Jason Allan Westfall of Las Vegas, Nevada, pleaded guilty to two counts of mail fraud, and one count of conspiracy to commit mail and wire fraud. Westfall admitted to participating in one stated accident in Las Vegas, Nevada, that generated approximately $275,607 in fraud proceeds. He is scheduled to be sentenced on July 10, 2019.
The vehicles used in some of the staged automobile accidents included: a 2002 Jaguar Vanden Plus; a 2005 Jaguar; a 2001 Jaguar XK8; a 2004 Infiniti FX35; a 2004 Cadillac Escalade; a 2006 Land Rover; a 2004 Mercedes Benz ML350; a 2008 Cadillac CTS; a 2007 BMW X3; and a 2001 BMW 530I. A 1995 Chaparral was used in a staged boating accident.
Eleven other defendants have been named in an indictment and are awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This investigation was conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, United States Marshals Service, United States Social Security Administration Office of the Inspector General, and United States Drug Enforcement Administration, with assistance from the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
New Haven Man Pleads Guilty to Federal Firearm and Narcotics ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MICHAEL DAVIS, also known as “Clep,” “Clip,” and “Michael Smith,” 33, of New Haven, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to firearm and narcotics offenses.
According to court documents and statements made in court, in December 2018, law enforcement began investigating Davis related to a threatening incident in New Haven. Davis was arrested on December 7, 2018. At the time of his arrest, he possessed distribution quantities of heroin and cocaine. A subsequent search of his vehicle revealed a Smith & Wesson SD 40 handgun.
Davis’s criminal history includes multiple felony convictions for narcotics offenses and a conviction for escape in the first degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Davis pleaded guilty to one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of possession of heroin with intent to distribute, an offense that carries a maximum term of imprisonment of 20 years. Judge Dooley scheduled sentencing for August 7, 2019.
This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathaniel Gentile.
Nancy J. Gargula to Serve as U.S. Trustee for Florida, Georgia, Puerto Rico and the U.S. Virgin IslandsRead the Press Release
Nancy J. Gargula, the U.S. Trustee for Indiana and the Central and Southern Districts of Illinois (Region 10), has been designated by Attorney General William P. Barr also to serve for an interim period as the U.S. Trustee for Florida, Georgia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands (Region 21) beginning today, the Executive Office for U.S. Trustees announced. Ms. Gargula replaces Daniel M. McDermott, who has served as interim U.S. Trustee in the region since January 2018. Under 28 U.S.C. § 585(b), the Attorney General may fill U.S. Trustee vacancies by designating an incumbent U.S. Trustee to serve in a second region.
“As a 17-year veteran of the U.S. Trustee Program, Ms. Gargula is well positioned to assume responsibility for one of the Program’s largest regions,” said USTP Director Cliff White. “Her knowledge and experience will serve the region well.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 21 is headquartered in Atlanta, Georgia, with additional offices in Macon and Savannah, Georgia; Miami, Orlando, Tallahassee and Tampa, Florida; and San Juan, Puerto Rico.
Murfreesboro Woman Facing Federal Charges for Wire Fraud & Tax EvasionRead the Press Release
NASHVILLE, Tenn. – April 30, 2019 – Barbara Butler, 59, of Murfreesboro, Tennessee, pleaded guilty last week to wire fraud and tax evasion, after embezzling more than $1.8 million from her employer, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Butler, the comptroller for D.S. Collaborative in Brentwood, Tennessee, was charged in a criminal information on April 5, 2019, and pleaded guilty to the charges on April 25, 2019.
According to documents filed with the court, Butler had been the comptroller for D.S. Collaborative for over 20 years and was responsible for all of the company’s financial affairs. Between December 2009 and July 2016, Butler wrote company checks to herself and used the company’s credit cards for personal use and for the use of her family members, without the knowledge or approval of the company’s owners. Butler also opened a company Costco credit card in the name of a family member and permitted that family member to use the card for personal use. In another instance, in March 2015, Butler used a company credit card to make a purchase from Jared Galleria Jewelry in Franklin, Tennessee, in the amount of $11,774.96. During the course of the scheme, Butler embezzled more than $1.8 million from the company.
In 2016, after learning that the company was subjected to an IRS audit, Butler provided false financial documents to the IRS auditor in an attempt to conceal the fact that she had written company checks to herself, and she altered general ledgers to make it appears as though the checks were written to legitimate vendors. During tax years 2010-2015, Butler failed to report to the IRS the income resulting from the embezzlement and caused a tax loss of $521,207.
According to the terms of the plea agreement, Butler faces up to 25 years in prison and will have to pay restitution. Butler also agrees to forfeit the contents from several bank accounts and proceeds from the sale of a house.
This case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorney Kathryn Booth is prosecuting the case.
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Monongalia County residents admit to drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA –Two Monongalia County residents have admitted to their involvement in a drug distribution operation, United States Attorney Bill Powell announced.
Clifford “Mike” Nethken, of Morgantown, West Virginia, pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base.” Nethken, age 45, admitted to working with another to sell cocaine base in Monongalia County in April 2018.
Bonnie Jo Korzun, of Granville, West Virginia, pled guilty to one count of “Distribution of Heroin.” Korzun, age 39, admitted to selling heroin in Monongalia County in May 2018.
Nethken and Korzun each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi Man Pleads Guilty to Sexual Abuse of Minor on Cruise ShipRead the Press Release
BOSTON – A Mississippi man pleaded guilty on Friday, April 26, 2019, in federal court in Boston to sexually assaulting a minor during a cruise from Boston to Bermuda.
Adam Christopher Boyd, 32, of Bay Springs, Miss., pleaded guilty to one count of sexual abuse of a minor. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 1, 2019. Boyd appeared in federal court in August 2017 and was subsequently released on conditions. However, after violating his conditions of release in November 2018, he was ordered detained and has been in custody since.
In August 2017, Boyd was a passenger on a seven-day cruise from Boston to Bermuda. While the ship was docked in Bermuda, Boyd allegedly raped a minor passenger while the two were onboard the ship. The child subsequently reported the rape to ship security, who notified Bermudian authorities. In the course of the Bermuda Police Service’s initial investigation, they arrested Boyd and notified authorities in the United States.
Sexual abuse of a minor carries a sentence of no greater than 15 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Valuable assistance was also provided by U.S. Customs and Border Protection, the Bermuda Police Service, Massachusetts Port Authority and FBI Legat Bridgetown, Barbados, Sub Office Nassau. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Milton Man Sentenced on Drug Trafficking ChargesRead the Press Release
CONCORD – United States Attorney Scott W. Murray today announced that
Jason L. Brewer, 36, of Milton, New Hampshire was sentenced to time served (over 15 months) for participating in a conspiracy to possess a controlled substance with intent to distribute.
According to court documents and statements made in court, on July 12, 2016, a New Hampshire State Police trooper observed Brewer commit multiple motor vehicle violations while driving northbound on Interstate 95. The trooper executed a traffic stop of Brewer’s car near the Hampton tolls. Timothy Kondroski was a passenger in the car. During the traffic stop, the trooper observed evidence of drug possession. While the trooper questioned Brewer and Kondroski, Kondroski fled and darted across four lanes of the interstate highway toward the barriers that divided the cash tolls from the open road tolling lanes. The trooper chased Kondroski, yelling at him to stop. The trooper eventually caught up to Kondroski at the barriers, which Kondroski was attempting to climb over. During the chase, Kondroski’s sneakers fell off. When retrieving them from the roadway, the troopers found a bag containing approximately 35 grams of heroin. A second bag containing approximately one ounce of cocaine was recovered from inside one of Kondroski’s sneakers. Kondroski and Brewer both eventually admitted to buying the drugs in Lawrence, Massachusetts. Kondroski further acknowledged that he paid $2700 for the drugs and intended to sell them.
Brewer previously pleaded guilty on August 1, 2017. Co-defendant Timothy W. Kondroski, was sentenced on January 8, 2018 to 54 months in prison.
“Interstate drug trafficking continues to endanger lives throughout New Hampshire,” said U.S. Attorney Murray. “Determined action by the state trooper prevented the drugs from reaching their intended destination and ensured that Mr. Brewer was before a judge today to face justice. Traffickers should be aware that federal prison terms await those who engage in the drug trade.”
This matter was investigated by the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Anna Dronzek. Former Assistant U.S. Attorney Bill Morse also participated in the prosecution of this case.
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Miami Man Sentenced to 78 Months in Prison for Possessing over 5,000 Images of Child PornographyRead the Press Release
A Miami man was sentenced to six and one-half years in prison for maintaining two separate storage units that contained over 5,000 images of child pornography.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Adolfo Zayas-Bazan Albaisa, 56, was sentenced on April 29, 2019, by U.S. District Judge Federico A. Moreno to serve 78 months in prison. Judge Moreno also ordered Albaisa to serve 20 years of supervised release following his prison sentence. Albaisa pled guilty in February 2019 to one count of possession of child pornography.
According to admissions made in connection with his plea and evidence presented at the sentencing hearing, Albaisa had earned a Master’s Degree in Architecture from Harvard University and taught as an adjunct professor at the University of Miami (1994-2002) and Florida International University (2000-2002). From 2007 to 2016, Albaisa maintained control of two separate storage units, one located in Miami and the other in Doral. Albaisa stopped making payments on each storage unit and pursuant to company policy, the storage units were auctioned off to the highest bidder in 2013 and 2016, respectively. In each instance, the auction winner reviewed the unit’s items and discovered pictures of underage boys engaged in sexual activity. The FBI submitted the evidence for fingerprint examination and Albaisa’s fingerprints were positively identified on two images of child pornography. Albaisa also stored additional items in the storage units, such as boy scout paraphernalia, children’s clothing, and photographs of teenagers taken at swimming meets and wrestling matches. He also kept personal items in the storage units, such as architectural drawings and magazines, his library card to the University of Miami library, family photographs, his resume, and various articles of mail addressed to his home. In total, Albaisa collected and stored over 5,000 images of child pornography between the two units that he paid for and controlled.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. She thanked the Doral Police Department and the City of Miami Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Admits to Laundering More than $1.5 Million in Proceeds from Business Email Compromise Schemes and to Selling Reptiles Without a LicenseRead the Press Release
Alfredo Veloso, 43, of Miami, today admitted to opening bank accounts, and to recruiting others to open bank accounts, as a conduit for stolen funds in connection with a wide-ranging international money laundering operation for business email compromise and other cyber-schemes. Veloso also admitted to selling reptiles without a license, in violation of the Lacey Act.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, Southeast, Florida, made the announcement.
Veloso pled guilty before U.S. District Judge Kathleen M. Williams to one charge of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h), and four counts of violating the Lacey Act, that is, knowingly engaging in conduct that involved the sale and purchase of, and intent to sell and purchase, wildlife, that is, reptiles, with a market value in excess of $350.00, knowing that said wildlife was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws and regulations of the State of Florida, specifically, Florida Statute 379.3761, all in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1)(B).
According to court documents and statements, from April 2017 to December 2018, Veloso, together with co-conspirators Roda Taher a/k/a “Rezi,” Karina Rosado, and Alvaro Lugo, and others participated in a scheme to help steal more than $1.5 million dollars from individual and corporate victims, which proceeds were later laundered. The scheme involved recruiting “money mules,” including Veloso, who allowed their respective names and personal identifying information to be used by co-conspirators to incorporate a sham business through the Florida Department of State, Division of Corporations, under such mule’s name. As part of the scheme, a mule would then open bank accounts at multiple banks in the name of his or her shell company. Several mules, including Veloso, later recruited and managed new money mules. To date, more than 200 money mules and money mule recruiters have been identified as part of this international money laundering network.
As stated in court records, a related cyberattack aspect of the scheme involved the creation, by co-conspirators, of email addresses that mimicked, but differed slightly from, legitimate email addresses of supervisory employees at various companies. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bank accounts opened by the money mules and controlled by Veloso and the co-conspirators. After the victims complied with the fraudulent wiring instructions, Veloso, Rosado, and Lugo, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person withdrawals, ATM withdrawals, and debit card purchases. The co-conspirators also transferred funds to foreign bank accounts that co-conspirators controlled.
Veloso, Rosado, Lugo, and other co-conspirators kept a fraction of the proceeds as payment. For example, over a two-day period in April 2017, Veloso’s shell company, Veloso Bulk Trade, received incoming wires totaling more than $1,000,000 from four victims, which included two corporations, a law firm, and an individual. Of these funds, Veloso withdrew or spent approximately $26,686.
Veloso admitted that he recruited more than eight individuals to participate as mules in the money laundering scheme, many of whom were women he met through his kink pornography/adult film business. Veloso and his mules laundered between $1.5 to $3.5 million dollars.
Additionally, Veloso used his reptile business, known as Tri Reptiles and Xtreme Reptiles, to knowingly sell and ship wildlife in interstate commerce in 2018. His yearly reptile sales volume was at least approximately $150,000. Veloso acted as a reptile wholesaler, reselling hundreds of reptiles without obtaining the required Florida license.
At sentencing, on the money laundering count, Veloso faces up to 20 years imprisonment and a fine of $250,000, or twice the gross pecuniary gain/loss. Veloso faces up to five years imprisonment, and a fine of $20,000, or twice the gross gain, on each count of the Lacey Act violation. Sentencing is scheduled before Judge Williams on July 8, 2019, at 3:00 p.m.
Lugo pled guilty to one count of conspiracy to commit money laundering on November 19, 2018, and on April 8, 2019, Judge Williams sentenced Lugo to 34 months in prison. Rosado is a fugitive and remains at large.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, USSS, and FWS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
In related cases in this District, more than thirty members of the money laundering network have been prosecuted and convicted. See United States v. Roda Taher, et al., 17-cr-60223-UU; United States v. Luis Pujols, et al., 17-cr-20702-JEM; United States v. Cynthia Rodriguez, et al., 17-cr-20748-JEM; United States v. Eliot Pereira, et al., 18-cr-20170-MGC; and United States v. Gustavo Gomez, et al., 18-CR-20415-UU. Assistant U.S. Attorneys Jared M. Strauss, Dwayne E. Williams, and Lisa H. Miller prosecuted those cases.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Meadview Man Sentenced to Prison for Drug Sales, Theft of Government Property, and International Smuggling of Federally- Protected CactiRead the Press Release
PHOENIX – On April 29, 2019, William Starr Schwartz, 54, of Meadview, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 24 months’ imprisonment, to be followed by three years of supervised release. Schwartz was also ordered to pay restitution in the amount of $22,655 to the National Fish and Wildlife Foundation, a charitable and nonprofit corporation established to further the conservation and management of fish, wildlife, plants, and other natural resources. Schwartz had previously pleaded guilty to possession with intent to distribute methamphetamine, theft of government property, smuggling cacti from the United States, and Lacey Act false labeling charges.
Between approximately Oct. 1, 2014 and Aug. 22, 2018, Schwartz stole, and directed others to steal for him, in excess of 500 federally-protected cactus plants from the Lake Mead National Recreation Area in Arizona. Schwartz sold the stolen cacti through the Internet, and illegally shipped the cacti from Meadview to more than 20 countries throughout the world. During a search warrant conducted on Schwartz’s residence in August 2018, numerous stolen cacti were recovered by law enforcement agents. Additionally, methamphetamine and related drug paraphernalia were found.
The United States Fish and Wildlife Service, with assistance from the National Park Service and the United States Postal Inspection Service, conducted the investigation. The prosecution was handled by Paul Stearns, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-18-08333-SPL
RELEASE NUMBER: 2019-057_Schwartz
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Maryland man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Desmon Johnson, of Parkville, Maryland, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Johnson, age 35, pled guilty to one count of “Unlawful Possession of a Firearm.” Johnson, having previously been convicted of a felony, admitted to having five firearms in his possession in September 2016 in Preston County.
Johnson faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Sentenced to an Additional Year in Prison for Escaping from a Halfway HouseRead the Press Release
A man who escaped from a halfway house he was in while finishing his federal prison term was sentenced April 29, 2019, to more than a year in federal prison.
Jermaine Roberts, age 44, from Cedar Rapids, Iowa, received the prison term after an October 20, 2018 guilty plea to escape from custody.
Evidence at sentencing showed that Roberts was in a halfway house finishing a federal prison sentence following his prior convictions for mail and wire fraud. Roberts left the halfway house, but failed to return when he was supposed to. The police located Roberts after receiving a call reporting that Roberts said there was going to be a shooting, warning a citizen to go into his home. When police arrived on scene, Roberts claimed to have a gun and ran from the officers. After a foot-chase, officers arrested him. Roberts stated that he had a gun and officers were going to have to find it. Officers searched the area and Roberts, but did not find a gun.
The sentencing judge noted that Robert’s criminal history included 29 adult convictions, including six violent crimes.
Roberts was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roberts was sentenced to 12 months’ and one day of imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Roberts is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the United States Marshals Service and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00087.
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Man Sentenced to 40 Years in Prison for Shooting Tulsa Police OfficerRead the Press Release
The man who shot and wounded Tulsa Police Sgt. Mike Parsons during a traffic stop in July has been ordered to federal prison today, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Chatman to 40 years in prison for his crimes.
In January, a jury found John Terry Chatman, Jr., 35, guilty of three federal counts for his actions at a local Quik Trip on July 3, 2018. The counts included being a felon in possession of a firearm and ammunition, obstruction of justice by attempting to kill a witness, and carrying, using and discharging a firearm during and in relation to a crime of violence.
“If you shoot a police officer, then you will go to prison for a long time. Plain and simple. John Chatman learned that lesson today,” said U.S. Attorney Shores. “In addition to the officers, Chatman also endangered the lives of innocent civilians when he pulled the trigger of his gun in the middle of a busy QuikTrip parking lot on the day before Independence Day. This prosecution should serve as a deterrent to anyone who would think about shooting at a police officer. They put their lives on the line every day to protect ours. I’m thankful for the brave men and women of the Tulsa Police Department.”
On July 3, Tulsa police officers discovered Chatman driving a mini-van with a license plate that was registered to a different vehicle. Officers explained the traffic violation and asked for identification. Chatman repeatedly refused to identify himself and questioned the officers’ jurisdiction. Chatman escalated the situation by refusing to exit the vehicle and demanding to speak to a supervisor.
Police body cameras show officers directing Chatman to exit the vehicle and repeatedly explaining the traffic and obstruction violations to him. Eventually, Tulsa Police Sergeant Mike Parsons arrived on scene and explained to Chatman that he was obstructing an investigation.
The video further showed that Sgt. Parsons again ordered the man to leave the vehicle, explaining to Chatman he would use PepperBalls to make him exit the vehicle. As the sergeant deployed his PepperBall gun into the vehicle, Chatman shot him with a handgun from within the mini-van, striking Sgt. Parsons. An officer returned fire, and Chatman was eventually arrested. The prosecution showed that the sergeant’s injuries could have been far more severe, potentially shattering his femur or hitting an artery, if a challenge coin in his pocket had not deflected the bullet.
A .32 caliber revolver was recovered from the scene with four spent cartridge casings in the firearm, and two live rounds. As a felon, Chatman was not allowed to possess firearms under federal law.
Chatman remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department investigated the case. U.S. Attorney Trent Shores and Assistant U.S. Attorneys Allen Litchfield and Mark Morgan prosecuted the case.
Man Pleads Guilty to Defrauding His EmployerRead the Press Release
OKLAHOMA CITY – JIMMY WAYNE SMITH, 37, of Oklahoma City, has pleaded guilty to using interstate wire communications to defraud his employer of hundreds of thousands of dollars, announced First Assistant U.S. Attorney Robert J. Troester.
According to federal charges filed on April 12, 2019, Smith was employed from 2012 until June 2017 as an operations coordinator at ACTS, a Chickasha company that provides cooling tower rental services. He allegedly created an entity called Axial Electric, purportedly based in California, and induced vendors that supplied equipment and parts to ACTS to purchase equipment from Axial and to invoice ACTS. Smith is alleged to have induced ACTS to pay the vendors, who in turn paid Axial Electric, which directly benefited Smith. According to the charges, Axial Electric was supposed to send the equipment directly to ACTS, but ACTS never received the equipment.
On April 29, Smith appeared before Chief U.S. District Judge Joe Heaton and pleaded guilty to a single count of wire fraud. In a plea agreement, he acknowledged that, based on current information, he will owe $228,192.32 in restitution to Aggreko Cooling Tower Services. The plea agreement provides that the total loss amount does not exceed $495,601.83, which would include losses suffered by the vendors.
Sentencing will take place in approximately 90 days and will take into account the full scope of Smith's fraud. He faces up to twenty years in prison and a fine of up to $250,000, as well as supervised release of up to three years and mandatory restitution.
These charges are the result of an investigation by the FBI Oklahoma City Division. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court filings for further information.
Loudon Man Sentenced to 50 Months for Methamphetamine TraffickingRead the Press Release
CONCORD – Mark T. Moore, 38, of Loudon, New Hampshire, was sentenced in federal court 50 months in prison for participating in a conspiracy to distribute, and possess with intent to distribute, methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning in late 2016, the DEA and the Postal Inspection Service investigated numerous parcels mailed from Las Vegas, Nevada, to New Hampshire suspected of containing methamphetamine. Law enforcement agents also investigated parcels of money mailed from New Hampshire to Las Vegas, and money transfers from New Hampshire to Las Vegas. Eventually, investigators identified Edward Espejo as the individual in Las Vegas who was shipping methamphetamine to buyers in New Hampshire in return for money transfers or packages of cash mailed to him via the U.S. Postal Service.
Co-Defendant Michael Bean, along with his girlfriend and co-defendant Katie-Jo Waters, joined the conspiracy in or before January 2018. Defendant Mark Moore, who already knew Espejo, joined the conspiracy soon afterwards. Within the conspiracy, Moore handled the communications (mostly by text) to and from Edward Espejo in Las Vegas and coordinated the shipments of drugs from Nevada and the wiring of payments from New Hampshire. Waters received mailed packages containing methamphetamine at her residence; Bean and Waters distributed methamphetamine to buyers in New Hampshire; and Bean and Waters wired the proceeds of drug sales to Espejo in Las Vegas to purchase additional drugs. Bean and Waters also distributed to Moore a portion of the methamphetamine they received from Espejo.
On January 16, 2018, a package was mailed from Las Vegas. The package was scheduled to be delivered on January 17, 2018. The package was addressed to Waters at an apartment on Pembroke Street in Pembroke. Postal Inspectors obtained and executed a federal search warrant for the package. The package contained 18.989 grams of 100 percent pure methamphetamine.
On April 9, 2018, a package was mailed from Las Vegas. The package was scheduled to be delivered on April 10, 2018. The package was addressed to co-defendant Waters at the same Pembroke Street location. This package was delivered to the Pembroke residence. On April 11, 2018, Waters was stopped by the New Hampshire State Police driving a car registered to her. Inside the car was a black bag containing four baggies containing a total of 23.011 grams of 100 percent pure methamphetamine.
Wal-Mart and MoneyGram records reflect that either Bean or Waters made at least 16 separate money transfers to three persons in Las Vegas, NV between January 10, 2018 and April 29, 2018, sending a total of at least $28,550 to purchase methamphetamine.
On May 2, 2018, Postal Inspectors intercepted another package from Espejo in Las Vegas. The package was addressed to another individual at the same Pembroke Street residence previously used by co-defendant Waters. Postal Inspectors obtained a federal search warrant for the package and seized what was later determined to be 441.8 grams (approximately one pound) of pure methamphetamine.
Moore previously pleaded guilty on January 17, 2019.
Espejo previously pleaded guilty and is awaiting sentencing.
Bean was sentenced to 120 months in prison and Waters was sentenced to 72 months in prison.
“Highly pure methamphetamine is appearing in New Hampshire with greater frequency,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate those who are responsible for distributing this very dangerous drug in the Granite State. Drug traffickers who choose to sell methamphetamine in New Hampshire should understand that their conduct will result in substantial prison sentences.”
“This sentence reflects DEA’s strong commitment to bring to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”
“The sentence imposed today on Mark Moore demonstrates the commitment of the U.S. Postal Inspection Service and our law enforcement partners, to the safety and health of the American public,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “Moore’s actions allowed this highly addictive drug to have a place in our community. We will continue to investigate and take action against those who take part in this type of behavior.”
This matter was investigated by the DEA and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney John Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Laurel Man Sentenced to 30 Years in Prison for Drug ConspiracyRead the Press Release
Gulfport, Miss. – Victor Coleman a/k/a "Stone," 33, of Laurel, was sentenced today by U.S. District Judge Sul Ozerden to 360 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Homeland Security Investigations in New Orleans. Coleman was also ordered to pay a $10,000 fine.
On January 23, 2018, a cooperating source placed a recorded phone call to Coleman inquiring about the purchase of methamphetamine. During the phone call, Coleman stated that he was currently out of town but would have four ounces of methamphetamine delivered to the source. Coleman later told the source to meet Jack Hales at the fast food restaurant on Pass Road in Harrison County to get the drugs. He also provided the source with Hales’ phone number so they could have further conversations about the deal, if necessary. Later that day, agents arrested Hales while he was attempting to make the meth delivery on behalf of Coleman. In total, the source purchased approximately four pounds of methamphetamine from Coleman over the course of a few months.
Hales previously pled guilty to his role in the conspiracy. He was sentenced to 157 months in federal prison, followed by five years supervised release, and ordered to pay a $5,000 fine.
The case was investigated by Homeland Security Investigations in Gulfport, and it was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Largo Man Sentenced for Transporting Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Kirk David Blank (50, Largo) to nine years in federal prison for transporting child pornography. The court also ordered Blank to pay $10,000 in restitution to the victims of his offense and to forfeit the electronic devices that he had used in the commission of the offense.
Blank had pleaded guilty on December 13, 2018.
According to court documents, Blank was a member of an online chat group where members discussed the sexual abuse of children and shared child pornographic images and videos. Between September 3 and September 13, 2017, Blank distributed multiple links to online cloud storage accounts containing images and videos that depicted minors engaged in sexually explicit conduct. In total, the links that Blank shared contained approximately 2,630 child-pornographic images and videos. Blank admitted to law enforcement officers that he had shared the links with the group because he desired to be elevated to the position of an administrator in the chat group.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
KC Man Pleads Guilty, KC Woman Sentenced Following Fatal Shooting During a Drug DealRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and woman who were involved in a fatal shooting during a drug deal, which they attempted to cover up by falsely claiming an attempted rape, both appeared in federal court today.
Orval L. Johnson, 26, pleaded guilty before U.S. Chief District Judge Beth Phillips to three counts of distributing cocaine, one count of possessing a firearm in furtherance of a drug-trafficking crime, one count of possessing cocaine with the intent to distribute, and one count of being a drug user in possession of a firearm.
Co-defendant Latasha M. Alexander, 27, was sentenced in a separate hearing to eight months in federal prison without parole. Alexander, who pleaded guilty to misprision of a felony, has been in federal custody since her bond was revoked in October 2018.
By pleading guilty today, Johnson admitted that he sold cocaine to an undercover detective with the Kansas City, Mo., Police Department on three separate occasions in 2017. During the third drug transaction, Johnson was armed with a loaded Glock .357-caliber pistol with an extended magazine. Johnson told the undercover detective that someone recently tried to rob him and threatened to kill him and his girlfriend. “I had to kill (him),” Johnson said, “I blew half his … face off.”
According to court documents, Johnson was referring to a homicide investigation in the Knob Hill neighborhood of Kansas City, Mo. Alexander falsely claimed that a man, identified in court documents as “R.B.,” came to her residence on March 9, 2017, to smoke marijuana and tried to rape her. She told law enforcement officers that R.B. fired a shot at her, then she shot and killed him in self-defense. Investigators believed her lie, according to court documents, until Johnson bragged about the killing to the undercover detective.
Alexander later admitted that she falsely reported the attempted rape in order to conceal Johnson’s drug-trafficking offense. Alexander pleaded guilty to misprision of a felony on Oct. 23, 2018.
Johnson and Alexander told investigators that R.B. came to their apartment to purchase cocaine. He attempted to rob Johnson, and a struggle ensued. Johnson yelled at Alexander to grab the gun; she retrieved a firearm and shot R.B., who then attacked her. Johnson grabbed the gun and shot R.B. several times, killing him. According to court documents, both Johnson and Alexander consistently claimed self-defense, which is not refuted by the physical evidence at the scene.
Johnson was arrested on March 14, 2017. The day after his admission to the undercover detective, the undercover detective contacted Johnson to arrange for the purchase of 3.5 grams of cocaine for $170. Johnson was arrested when he left a nearby residence on his way to conduct the drug transaction. He had a Glock .357-caliber semi-automatic pistol, which had been reported as stolen, in his right front pants pocket and 3.39 grams of cocaine in his left coat pocket.
Johnson admitted to law enforcement officers that he had been making deliveries of cocaine five to 10 times a day, every day since November 2016. Johnson said he had been using about a gram of cocaine a day since November of 2016.
Under federal statutes, Johnson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jordanian National Pleads Guilty to Conspiracy to Bring Aliens into the United StatesRead the Press Release
WASHINGTON – Moayad Heider Mohammad Aldairi, 31, pleaded guilty to conspiracy to bring aliens to the United States and a related charge for his role in a scheme to smuggle Yemeni aliens through Mexico to the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.
According to the plea agreement, during the second half of 2017, Aldairi conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras where he directed them to cross the Rio Grande River into the United States. Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing. Aldairi will be sentenced by the Honorable Alia Moses at a later date.
“When Mohammad Aldairi illegally smuggled multiple Yemeni aliens across our southwest border, he put the security of the United States in peril,” said Assistant Attorney General Benczkowski. “The Department of Justice cannot — and will not — tolerate such threats to our national security. The Criminal Division remains dedicated to prosecuting alien smugglers, especially criminals like Aldairi who attempt to sneak aliens from countries of interest into the United States.”
“Border security is national security. We simply cannot have an immigration system that allows people from all over the world to enter this country without detection,” said U.S. Attorney Bash. “We must know the identity of every person setting foot on U.S. soil, however they enter.”
"This investigation is a great example of how Homeland Security Investigations uses its worldwide resources, foreign and interagency partnerships to bring international criminals to justice in the United States,” said Special Agent in Charge Folden. “Mohammad Aldairi was a key facilitator and smuggler of Yemeni nationals; the illicit pathway he created into the U.S. is now dismantled.”
“This case is a perfect example of collaboration between different government agencies, making each individual agency more effective than it would be on its own,” said Chief Patrol Agent Raul Ortiz the Del Rio Sector. “The U.S. Border Patrol relies on cooperation with our law enforcement partners to secure our nation’s borders and to protect the communities we live in.”
This case is being investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorney James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
Jordanian National Pleads Guilty to Conspiracy to Bring Aliens into the United StatesRead the Press Release
Moayad Heider Mohammad Aldairi, 31, pleaded guilty to conspiracy to bring aliens to the United States and a related charge for his role in a scheme to smuggle Yemeni aliens through Mexico to the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.
According to the plea agreement, during the second half of 2017, Aldairi conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras where he directed them to cross the Rio Grande River into the United States. Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing. Aldairi will be sentenced by the Honorable Alia Moses at a later date.
“When Mohammad Aldairi illegally smuggled multiple Yemeni aliens across our southwest border, he put the security of the United States in peril,” said Assistant Attorney General Benczkowski. “The Department of Justice cannot — and will not — tolerate such threats to our national security. The Criminal Division remains dedicated to prosecuting alien smugglers, especially criminals like Aldairi who attempt to sneak aliens from countries of interest into the United States.”
“Border security is national security. We simply cannot have an immigration system that allows people from all over the world to enter this country without detection,” said U.S. Attorney Bash. “We must know the identity of every person setting foot on U.S. soil, however they enter.”
"This investigation is a great example of how Homeland Security Investigations uses its worldwide resources, foreign and interagency partnerships to bring international criminals to justice in the United States,” said Special Agent in Charge Folden. “Mohammad Aldairi was a key facilitator and smuggler of Yemeni nationals; the illicit pathway he created into the U.S. is now dismantled.”
“This case is a perfect example of collaboration between different government agencies, making each individual agency more effective than it would be on its own,” said Chief Patrol Agent Raul Ortiz the Del Rio Sector. “The U.S. Border Patrol relies on cooperation with our law enforcement partners to secure our nation’s borders and to protect the communities we live in.”
This case is being investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorney James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
Johnstown Felon Charged with Illegally Possessing Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA – A resident of Johnstown, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Sean Zachary Horton, 29, as the sole defendant.
According to the Indictment, Horton was in possession of a firearm and ammunition while having been previously convicted of felonies.
The law provides for a maximum total sentence of not more than ten years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Sentenced to Federal Prison for Possessing a Gun While Being a Meth UserRead the Press Release
An illegal alien was sentenced to 21 months’ in federal prison today.
Luis Alberto DeLoera Serna, age 40, received the prison term after a January 11, 2019, guilty plea to one count of possession of a firearm by a prohibited person.
Evidence produced by the United States at the change of plea and sentencing hearings revealed DeLoera Serna, was not only an alien illegally in the United States and drug user in possession of a firearm, but that he was also an armed drug dealer with a criminal history. That history included traffic offenses, domestic violence, and seven illegal entries into the United States.
DeLoera Serna was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. DeLoera Serna was sentenced to 21 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. DeLoera Serna is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of the Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violence crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violence offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-04091.
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Huntington Woman Pleads Guilty to Federal Heroin ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman caught selling heroin last year in Huntington pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Tonya Lynn Thompson, 36, entered a guilty plea to distributing heroin in federal court in Huntington. Stuart commended the investigative efforts of the FBI Drug Task Force and the Cabell County Sheriff’s Department.
“Deadly and powerful fentanyl, heroin and methamphetamine,” said United States Attorney Mike Stuart. “Too many drug dealers like Thompson have peddled their poisons in Huntington. We’re doing our best to hold drug dealers accountable.”
On July 11, 2018, an informant working at the direction of the Sheriff’s Department went to Thompson’s residence located at 831 15th Street in Huntington to purchase heroin. Insider the residence, Thompson sold the informant heroin in exchange for $140. Thompson also admitted as part of her plea agreement that she assisted in the sale of fentanyl to an informant the prior day at her residence.
On July 16, 2018 deputies executed a search warrant at Thompson’s residence. During the search, deputies recovered approximately 12 grams of fentanyl and approximately 48 grams of methamphetamine. Also as part of her plea agreement, Thompson admitted that she distributed fentanyl, heroin, and methamphetamine in Huntington between July of 2017 and July of 2018. Thompson further admitted that she allowed others to stay in her residence for the purchase of storing and selling drugs.
Thompson faces up to 20 years in federal prison when she is sentenced on August 5, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Huntington Man Sentenced for Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 10 months in prison, announced United States Attorney Mike Stuart. Henry Davis, also known as “Hen”, 36, previously pled guilty to distributing heroin.
Davis admitted that on September 29, 2015 he distributed heroin to a confidential informant in Huntington.
“Thanks to the excellent work of the Huntington Police Department, another heroin dealer is off the streets and headed to a federal pen,” said United States Attorney Mike Stuart. “Selling heroin is not a good career option.”
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Hartford Teen Pleads Guilty to Robbery and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ISAIAH HALLIDAY, 19, of Hartford, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to robbery and firearm offenses related to a scheme that victimized several individuals who sought to purchase items over mobile classifieds web apps.
According to court documents and statements made in court, between September and November 2017, more than a dozen robberies occurred in Hartford during which individuals lured would-be customers with real or nonexistent items posted to mobile classifieds web apps, such as Offer Up, Letgo and Craigslist, through the use of a fake account. Upon arrival, the customers were robbed of money and cell phones. In all of the robberies, assailants brandished what victims described to be a firearm.
On November 11, 2017, Hartford Police officers responded to a location on Blue Hills Avenue in response to a report of a male suffering from a gunshot wound. Upon arrival, the victim stated that he had traveled to Mansfield Street in Hartford to meet with an individual he contacted on Offer Up to purchase an iPhone. When he arrived, Halliday approached the front passenger door of his vehicle and pointed a black handgun at him. After the victim attempted to drive away, Halliday fired one round at him, striking him in the right forearm.
Halliday pleaded guilty to one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of use of a firearm in relation to a crime of violence, an offense that carries a consecutive term of imprisonment of 10 years to life.
In pleading guilty, Halliday admitted that he and several associates were involved in other similar armed robberies and attempted robberies between September and November 2017.
Halliday has been detained since his arrest on November 17, 2017.
Judge Meyer scheduled sentencing for August 7, 2019.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Gainesville Man Sentenced to 120 Months in Prison for Obtaining Minor for Commercial SexRead the Press Release
GAINESVILLE, FLORIDA – Jeffrey Farrell Davis, 36, of Gainesville, Florida, was sentenced to 120 months in prison yesterday, 25 years of supervised release, $3,000 victim restitution, and a $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act. In March 2018, Davis pleaded guilty to child sex trafficking by obtaining a minor child for purposes of engaging in sexual activity. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Between April and June 2017, several persons were involved in a scheme to make money using a 14-year-old child to perform commercial sex acts. Advertisements identifying the victim under a false name were posted in the “escort services” section of Backpage.com for the Gainesville area. The advertisements were actually for the purpose of offering the child for commercial sexual activity.
Persons responded to the advertisements by calling or texting a cellular telephone number provided in the ad. Arrangements were then made to deliver the child for purposes of commercial sex. The child was delivered to persons at various locations in north central Florida, including private residences and motels. Davis is one of the individuals who responded to the Backpage.com advertisements. He engaged in commercial sex with the child on two separate occasions.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. The case was prosecuted by Assistant United States Attorney Frank Williams.
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.
Grayson Co. Man Sentenced to 50 Years for Production, Distribution and Possession of Child PornRead the Press Release
LOUISVILLE, Ky. – United States District Judge Joseph H. McKinley sentenced James D. Armes to 50 years of imprisonment on Friday, and a lifetime of supervised release, for multiple counts of production and distribution of child pornography, and possession of child pornography, announced United States Attorney Russell M. Coleman.
“The basic duty of government is to protect our kids, in this this case prosecuting a clear threat and sending him to federal prison for five decades,” said U.S. Attorney Russell Coleman.
Armes, 37, of Millwood, Kentucky, in Grayson County, was indicted on five counts of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography on May 9, 2018. On December 10, 2018, Armes admitted before the Court his guilt on all counts.
According to a Sentencing Memo, on or about October 16, 2017, and November 28, 2017, Armes used his cellular phone to create numerous images and videos of the sexual exploitation of two children. Armes made sexual contact with Jane Doe, a minor female less than 1-year old, numerous times. He also took several pictures of the genitals of John Doe, a minor male under 5 years old. Armes was 36-years old at the time of his criminal conduct. Because of a prior rape conviction he faced a mandatory minimum sentence of 25 years imprisonment.
This case was prosecuted by Assistant United States Attorney Spencer McKiness, and investigated by the Federal Bureau of Investigation and the Grayson County Sheriff’s Department.
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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 victim
Former Medical Doctor Sentenced to 20 Years’ Imprisonment for Unlawful Distribution of Opioids and Causing the Overdose Death of a PatientRead the Press Release
Martin Tesher, a former family medical doctor, was sentenced today by United States District Judge Raymond J. Dearie to 20 years’ imprisonment for nine counts of unlawful distribution of oxycodone without a legitimate medical purpose and one count of unlawful distribution of oxycodone and fentanyl that resulted in the death of a patient. The Court also ordered Tesher to pay $3,700 in restitution and forfeit $2,725 in criminal proceeds. Tesher was convicted by a federal jury in July 2018 following a nearly two-week trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
Between June 2013 and January 2017, Tesher prescribed oxycodone tablets and fentanyl patches without a legitimate medical purpose to five patients after learning, or had reason to believe, that these patients were addicted to drugs. None of these patients had verified medical conditions that would require the prescription of Schedule II opioids. While under Tesher’s care, Nicholas Benedetto, 27, tested positive for cocaine, heroin, methadone, oxycodone and fentanyl. Nonetheless, Tesher prescribed oxycodone and fentanyl patches for Benedetto. On March 5, 2016, Benedetto was found dead of a fatal combination of oxycodone and fentanyl, two days after he had been prescribed those drugs by Tesher.
“In the midst of an unprecedented opioid epidemic, Dr. Tesher used his medical skills to harm, not heal and in doing so he cost a young man his life,” stated United States Attorney Donoghue. “Such criminal conduct is an utter betrayal of the trust our society places in doctors and it warrants the severe sentence imposed today.”
“Today’s sentence demonstrates how DEA, EDNY and their many law enforcement partners have come full circle to eliminate the threat of rogue doctors, like Tesher who posed a threat to the public health of the citizens of New York City, Staten Island, and beyond,” stated DEA Special Agent-in-Charge Donovan. “DEA and its law enforcement partners will continue to seek justice for patients like Nicholas Benedetto, as well as the countless other families and friends who have suffered greatly at the hands of this opioid epidemic.”
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Internal Revenue Service, Nassau County Police Department (NCPD), Suffolk County Police Department (SCPD), Port Washington Police Department and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the New York City Police Department (NYPD), Criminal Enterprise Investigations, the Department of Health & Human Services, Office of Inspector General and NCPD’s Asset Forfeiture and Intelligence Bureau.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the NCPD and SCPD, the NYPD and the New York State Police, along with other key federal, state and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Jennifer M. Sasso and Penelope Brady are in charge of the prosecution.
The Defendant:
DR. MARTIN TESHER
Age: 83
Manhattan, New YorkE.D.N.Y. Docket No. 17-CR-523 (RJD)
Former Local Military Members Sentenced in International Cocaine Importation ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Daniel J. Gould, 36, of Crestview, and Henry W. Royer, 36, of Fayetteville, North Carolina, were each sentenced to 9 years in federal prison today for two drug trafficking conspiracy counts involving large amounts of cocaine. The sentences were announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Gould pleaded guilty to the federal indictment in December 2018, and Royer pleaded guilty in February 2019. A third co-defendant, Gustavo A. Pareja, 25, of Colombia, is awaiting extradition to the United States to stand trial in Pensacola.
Between January and August 2018 in the Northern District of Florida, and in the country of Colombia, former Master Sergeant Daniel Gould of the United States Army and Henry Royer, formerly of the United States Army and Army National Guard, conspired to distribute large amounts of cocaine, knowing it would be unlawfully imported into the United States.
In August 2018, the United States Drug Enforcement Administration received information that Gould had attempted to import 40 kilograms of cocaine onto a military transport flight in Colombia with a final destination in the Northern District of Florida. Suspicion was aroused at the United States Embassy in Colombia when packages were x-rayed, revealing cocaine within gutted out punching bags. On August 13, 2018, when the cocaine was seized at the embassy, Gould had already returned home and was awaiting its arrival.
The conspiracy began in early 2018 when Gould and Royer initially imported 10 kilograms of cocaine into the United States. Royer traveled to Colombia with U.S. currency to use as payment. Gould placed the cocaine in a gutted punching bag and had the package transported to Bogota to be placed on a United States military aircraft. A few days later, the cocaine-filled punching bag arrived at Duke Field, which is an auxiliary airfield of Eglin Air Force Base. Gould and Royer distributed the 10 kilograms of cocaine in Northwest Florida.
Gould and Royer then reinvested the money from the first load of cocaine into a second load of 40 kilograms of cocaine. Gould placed approximately $65,000 in cash on a United States military cargo aircraft destined for Colombia as funds for the next purchase.
In early August 2018, Gould and Royer returned to Colombia and provided money for the 40 kilograms to their source of cocaine supply. Gould and Royer received the cocaine, loaded the 40 kilograms into two gutted punching bags, and coordinated transport to the embassy before flying back to the United States. The estimated value of 40 kilograms of cocaine in the Northern District of Florida would be in excess of $1 million.
This case resulted from an investigation by the Drug Enforcement Administration and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program. Senior Litigation Counsel David L. Goldberg is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Florida Property Manager Sentenced to More than 12 Years in Prison for Orchestrating an International Fraud SchemeRead the Press Release
A former resident of Fort Lauderdale, Florida was sentenced to over twelve years in prison and ordered to pay over $7 million in restitution for orchestrating an international property fraud scheme.
Ariana Fajardo Orshan, U.S Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau Investigation (FBI), Miami Field Office, made the announcement.
Dale Scott Wood, 46, formerly of Fort Lauderdale, Florida, pled guilty to a single count information that charged him with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, on July 25, 2018 (Case No. 18-CR-60202) U.S. District Judge William P. Dimitrouleas sentenced Wood to 151 months in prison, to be followed by 3 years of supervised release. Wood was also ordered to pay $7,130,410 in restitution.
According to court documents, investors in Germany formed a limited partnership to invest in the United States real estate mortgage market. The partnership made mortgage loans secured by commercial properties throughout the United States. After the United States real estate market crash beginning in 2007, the partnership had to foreclose on many of the mortgages it owned domestically. The partnership needed someone to oversee the foreclosure process and manage, maintain, and market the properties when the partnership acquired title. The partnership retained Wood for that purpose. From November 2009 to November 2013, Wood retained Theodore Gunter Gies, a bookkeeper, to assist him. Wood and Gies, without disclosure to or authorization from the partnership, sold the properties to third parties. Wood and Gies then submitted, via international e-mail, false financial and status reports indicating that the properties were still held by the partnership. The loss to the partnership by the actions of Wood and Gies was $7,130,410.
Gies previously pled guilty for his role in the conspiracy and was sentenced to 51 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. The case was prosecuted by Assistant U.S. Attorneys Thomas P. Lanigan and Karen Olivia-Marie Stewart.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former FCI-Berlin Chaplain Pleads Guilty to Accepting Bribes to Smuggle Drugs into PrisonRead the Press Release
CONCORD - Joseph Buenviaje, 53, of Berlin, pleaded guilty in federal court to accepting bribes from inmates and providing contraband in prison, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in 2015 Buenviaje began working as a chaplain at the Federal Correctional Institution in Berlin, New Hampshire. Beginning April 2018 through November 2018, while working as a chaplain, Buenviaje smuggled drugs, including Suboxone, synthetic cannabinoids, and marijuana, cellular telephones, tobacco, and other contraband into the prison in exchange for bribe payments. When interviewed by investigators in November 2018, Buenviaje admitted that he had been smuggling drugs and other contraband into the prison once or twice per week, he had received bribes of at least $12,000, and inmates owed him an additional $3,000 to $5,000 for contraband he had or was going to provide.
Buenviaje also admitted that he received the contraband and some of the bribe payments by mail addressed to his ministry. Buenviaje received Suboxone—an opioid ordinarily prescribed to treat drug addiction—in its original packaging. Upon receipt, Buenviaje repackaged the drug in cellophane for distribution in the prison. Buenviaje also received notebooks with drug-soaked pages that he smuggled into the prison. After smuggling items he received into the prison, Buenviaje placed the contraband in a cabinet in the prison chapel where inmates would later retrieve the items.
In November 2018, during a consensual search of Buenviaje’s car and office, investigators found 111 Suboxone strips, some of which were in Buenviaje’s car and some of which were in Buenviaje’s office repackaged for distribution. Investigators also located multiple notebooks that Buenviaje had placed in a cabinet in his office for an inmate. Some pages in the notebooks had been soaked with unlawful synthetic cannabinoids, specifically FUB-AMB and 5F-ADB.
Buenviaje is scheduled to be sentenced on August 1, 2019.
“Those who work in federal prisons have a responsibility to uphold the law,” said U.S. Attorney Murray. “By smuggling contraband into a prison, this defendant jeopardized the safety of the inmates and staff at the facility. Such conduct simply cannot be tolerated.”
“Today’s guilty plea demonstrates that anyone who violates the public’s trust and jeopardizes the security of federal prisons by introducing contraband will be brought to justice. We will continue to work with our law enforcement partners to root out smuggling schemes in federal prisons,” said DOJ OIG Special Agent-in-Charge Guido Modano.
This matter was investigated by the U.S. Department of Justice Office of the Inspector General and FCI-Berlin’s Office of the Special Investigative Supervisor. The case is being prosecuted by Assistant U.S. Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Matthew T. Hunter.
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Former District of Columbia Attorney Found Guilty of $2 Million Investment Fraud SchemeRead the Press Release
A former attorney who perpetrated a multimillion-dollar investment fraud scheme, was convicted today by a jury in the District of Columbia, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jessie K. Liu for the District of Columbia.
Brynee Baylor was convicted of one count of conspiracy to commit securities fraud, one count of securities fraud, and five counts of first-degree fraud under District of Columbia law.
According to court documents and the evidence presented at trial, Baylor, a former partner in the D.C. law firm of Baylor & Jackson PLLC, conspired with a Pennsylvania man and his company, known as the Milan Group, to recruit investors to a purported trading program. Investors were promised extremely large profits in a short time with little or no risk.
The evidence presented at trial showed that in 2010 and 2011, Baylor caused more than $2 million of investor funds to pass through the Baylor & Jackson lawyer trust account. More than half of the investor funds were used for the benefit of Baylor, the Pennsylvania man, the Milan Group, and Baylor & Jackson. Baylor falsely assured investors that the purported trading program was legitimate and had little if any risk. Baylor also falsely told investors that she had personally observed investors successfully complete transactions with the Milan Group. In reality, the Milan Group did not complete any such transactions and did not return any of the investors’ money.
In 2011, the Securities and Exchange Commission (SEC) sued Baylor and others for fraud in connection with the purported trading program.
Sentencing is not yet scheduled. Baylor faces a statutory maximum sentence of five years in prison for the conspiracy count, 20 years in prison for the securities fraud count, and 10 years in prison for each of the first-degree fraud counts. Baylor will also face a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Liu thanked the SEC for its invaluable assistance and commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey McLellan and Eric Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former CEO of Hospital Chain to Pay $3.46 Million to Resolve False Billing and Kickback AllegationsRead the Press Release
Gary D. Newsome, former CEO of Health Management Associates LLC (HMA), a hospital chain that was headquartered in Naples, Florida, has agreed to pay the United States $3.46 million to settle allegations that he caused HMA to knowingly submit false claims to government health care programs by admitting patients who could have been treated on a less costly, outpatient basis, the Department of Justice announced. The settlement also resolves allegations that Newsome caused HMA to pay remuneration to Emergency Department (ED) physicians in return for referrals.
“Those who bill federal health care programs for unnecessary hospital stays will be held accountable for wasting federal dollars,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Patients deserve the unfettered, independent judgment of their health care professionals. We will pursue those who cause hospitals to offer financial incentives to physicians in return for improper patient referrals that undermine the integrity of our health care system.”
“A physician’s health care decisions should be driven by what is in the patient’s best interest, not by what helps line a provider’s pockets,” said Barbara Bowens, the Acting U.S. Attorney for South Carolina for purposes of this case. “The U.S. Attorney’s Office will not tolerate false claims based on unnecessary hospital admissions, which drive up health care costs and can harm patients.”
“Providers are expected to closely follow rules and bill properly. Further, in this case, the government contended that Newsome directed illegal payments for referrals,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Taxpayer money wasted is money stolen from vital government health programs.”
The settlement resolves allegations that Newsome caused HMA to pressure ED physicians to increase inpatient admissions by recommending admission without regard to medical necessity. The government claimed that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting. Hospitals generally receive significantly higher payments from Medicare for inpatient admissions as opposed to outpatient treatment; therefore, the admission of beneficiaries who do not need inpatient care, as alleged here, can result in substantial financial harm to the Medicare program.
The United States also alleged that Newsome caused HMA to pay remuneration to EmCare, a company that provided physicians to staff HMA hospital EDs, to recommend admission when patients should have been treated on an outpatient basis. As part of the alleged scheme, Newsome caused HMA to make certain bonus payments to EmCare ED physicians and tied EmCare’s retention of existing contracts and receipt of new contracts to increased admissions of patients who came to the ED.
Newsome served as CEO of HMA from September 2008 through July 2013. HMA was acquired by Community Health Systems Inc. (CHS), another hospital chain, in January 2014, after the alleged conduct at HMA occurred.
HMA and EmCare have already resolved their liability to the government for these allegations. In September 2018 HMA entered into a civil settlement under which it paid $61.8 million. Simultaneously, HMA entered into a Non-Prosecution Agreement (NPA) with the Criminal Division’s Fraud Section under which it paid a $35 million monetary penalty. In addition, an HMA subsidiary that formerly owned one hospital pled guilty to a single count of conspiracy to commit healthcare fraud, and paid a $3.25 million fine. In December 2017, EmCare paid $29.6 million to resolve these allegations.
This settlement resolves a lawsuit originally filed in the U.S. District Court for the District of South Carolina by Jacqueline Meyer, a former employee of EmCare, and J. Michael Cowling, a former employee of HMA, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and share in any recovery. Meyer and Cowling will receive approximately $725,000 from the settlement. The case was transferred to the U.S. District Court for the District of Columbia and is United States ex rel. Meyer & Cowling v. HMA, Inc., 1:14-cv-00586-RBW (D.D.C).
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of South Carolina, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.