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6 June 2019
Jury Finds Local Man Guilty of Being a Felon in Possession of a Firearm and Discharging WeaponRead the Press Release
Memphis, TN – After a two-day trial, a federal jury convicted a local man of being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
According to information presented in court, Stephen Derring, 47, was charged in a one-count indictment with being a felon in possession of a firearm. Derring was involved in a physical altercation with patrons outside of Ralph’s Bar and Grill located at 5162 Millbranch Road in Memphis, Tennessee. After the physical altercation, Derring drove to a nearby apartment complex and returned with a firearm. Derring brandished the firearm and fired a shot before fleeing the scene back to the apartment complex. Law enforcement arrested Derring and recovered the firearm after his attempt to evade police.
Sentencing is set for September 19, 2019 before U.S. District Court Judge John T. Fowlkes, Jr., where the defendant faces a possible sentence of up to ten years in federal prison.
This case is part of Project Safe Neighborhoods (PSN) initiative, 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. In 2017, PSN was reinvigorated 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 D. Michael Dunavant said, "Under our PSN initiative, we focus on removing firearms from the hands of prohibited persons, and removing dangerous felons from our streets. Clearly, this felon had no hesitation in committing a violent crime with a firearm,
and he will now be removed from our community for up to 10 years. We are FED UP. Gun Crime is Max Time."
The case was investigated by the Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Shelby County District Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through targeted investigations and aggressive prosecution.
Assistant U.S. Attorney Marques Young is prosecuting this case on behalf of the government.
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Judge Sentences Convicted Felon for Making False Statements on Federal Background Check Form While Attempting to Purchase a FirearmRead the Press Release
Memphis, TN – A local man has been sentenced to federal prison for making false statements on an ATF Federal Background Check Form while attempting to purchase a firearm, and for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence in the "lie-and-try" case today.
According to information presented in court, on December 2, 2017, Everette Alexander, 48, attempted to purchase a Cobra .380 handgun from Flash Pawn. Alexander completed ATF Background Check Form 4473, falsely indicating he was not a convicted felon. The Tennessee Instant Check System (TICS) denied the transaction. Alexander appealed TICS’ decision, and was given a conditional proceed and paid $50 cash toward the purchase. On December 16, 2017, Alexander returned to Flash Pawn and paid $ 195.71 to finalize the purchase, and took possession of the firearm.
On December 8, 2017, TICS faxed a form to the Shelby County General Sessions and Criminal Court Clerk’s Office to determine if Alexander was a prohibited person due to a prior conviction. On January 31, 2018, Shelby County Criminal Court Clerk’s Office responded indicating that Alexander had a felony conviction in 1995 for possession of marijuana with intent to sell.
ATF received notice on February 12, 2018, that TICS delayed denial for Alexander. ATF law enforcement notified Alexander and gave him the option to transfer the gun or return it to Flash Pawn. Alexander agreed to return the gun to Flash Pawn. Although ATF arranged to have Alexander return the firearm, he never arrived to return the firearm. After evading law enforcement, Alexander finally returned the firearm to Flash Pawn and received store credit for the purchase.
U.S. Attorney D. Michael Dunavant said, "Prosecutions of violent crimes must be paired with proactive prevention efforts to keep guns out of the hands of criminals and other prohibited persons. A valuable tool in this prevention effort is the ATF Background Check Form 4473, which must be completed before a federally licensed firearms dealer sells or transfers a firearm. Criminals and other prohibited persons who attempt to thwart the background check process by lying on the required forms threaten to undermine this important crime prevention tool, and such conduct cannot be tolerated. Let this serve as a warning: This office will vigorously prosecute and hold accountable any prohibited persons who attempt to illegally obtain a firearm in these ‘lie-and-try’ cases."
On June 5, 2019, U.S. District Court Judge Mark Norris sentenced Alexander to 10 months imprisonment followed by 2 years supervised release.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this case.
Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.
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Iowa Man Pleads Guilty in Federal Court to Interstate Transportation of a Minor for ProstitutionRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced that Mark Spicer, a/k/a Chief, age 24, of Iowa, pleaded guilty in federal court to one count of interstate transportation of an individual under the age of eighteen for purposes of prostitution. Spicer faces a mandatory minimum sentence of ten years imprisonment up to life. There is no parole in the federal system. A sentencing hearing will be held at a later date.
Evidence presented to the court established that in or around August 2018, Spicer and a co-defendant transported the minor victim to Myrtle Beach, South Carolina, with the intent that the minor would engage in prostitution after leaving Iowa and having traveled to Illinois, Tennessee, and Georgia. Spicer and a co-defendant placed advertisements for commercial sex featuring the minor victim on websites during this time period.
The case was investigated by agents of the Federal Bureau of Investigation and the Myrtle Beach Police Department. Assistant United States Attorneys Carrie Fisher Sherard and Lauren Hummel and Special Assistant United States Attorney Scott Hixson prosecuted the case.
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Illegal alien, formerly on ICE most wanted list, sentenced for immigration violationsRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a 49-year old Mexican National, who was formerly on ICE’s Most Wanted list, has been sentenced to serve time in federal prison for immigration violations.
Jose Melchor Martinez, of San Luis Potosi, Mexico, pleaded guilty on January 30, 2019, to illegal reentry of a removed alien and was sentenced today to 18 months in federal prison by U.S. Chief District Judge S. Maurice Hicks Jr.
At the time of Martinez’s arrest near Church Point, Louisiana, on October 12, 2018, U.S. Immigrations and Customs Enforcement considered Martinez one of its most wanted fugitives. He was removed from the United States on September 6, 2003 via the Hidalgo, Texas, port of entry following a 2002 conviction in Mecklenburg County, North Carolina, for indecent liberties with a child. After serving time for the conviction, he was removed from the United States but later returned on an unknown date. Martinez faces deportation upon finishing his prison term.
U.S. Immigrations and Customs Enforcement Removal, Office of Enforcement and Removal Operations investigated the case. Assistant U.S. Attorney David J. Ayo prosecuted the case.
Illegal alien sentenced to 2 years in prison for unlawfully re-entering country twiceRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that a 25-year old Mexican national living in the Monroe, Louisiana, area has been sentenced to prison for federal immigration violations.
Eliezer Merino-Tetlactle pleaded guilty on March 6, 2019 to illegal reentry of a removed alien and was sentenced yesterday to 24 months in federal prison by U.S. District Judge Terry Doughty.
According to information presented in court, West Monroe police arrested Merino-Tetlactle on August 23, 2018 for carnal knowledge of a juvenile, computer aided solicitation of a minor, possession of marijuana and contributing to the delinquency of a juvenile. His background check showed that he had been previously removed twice from the United States at the port of entry in Laredo, Texas on July 29, 2012 and September 12, 2012. He later re-entered the United States on an unknown date.
United States Immigrations and Customs Enforcement, Homeland Security Investigations and the West Monroe Police Department investigated the case. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Illegal Alien Charged with Fraudulent Use of A Social Security Number and Identity TheftRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Elizabeth Farina-Torres (42, Orange Park) with five counts of fraudulent use of a Social Security number (SSN) and five counts of aggravated identity theft. If convicted, she faces up to five years in federal prison on each count of fraudulently using an SSN, and a mandatory penalty of two years’ imprisonment for each identity theft charge. The United States also notified Farina-Torres that it will seek restitution for the victim of the offenses.
According to court documents, in approximately 2008, Farina-Torres, an undocumented alien and a citizen of the Dominican Republic, began using an SSN belonging to a U.S. citizen with a similar name and the same date of birth. In 2017, the Orange Park Medical Center reported to the Clay County Sheriff’s Office (CCSO) a complaint from the citizen-victim that someone had used her SSN at the hospital four times in 2016. Hospital records showed that the person who had used the SSN was Farina-Torres.
The victim, who lived in Palm Beach County, told investigators that her credit report reflected collection accounts totaling $4,583.92 arising from the four hospital visits. The credit report also reflected two fraudulently obtained credit cards and charges from a Jacksonville radiology office in the amount of $3,947. The victim also had received calls from collection agencies about accounts that were fraudulently opened by Farina-Torres. The victim stated that she has spent countless hours repairing the credit issues caused by Farina-Torres, that she had to engage a credit monitoring and repair service to assist her, and that her credit score was damaged as a result of Farina-Torres’s actions.
Further, in July 2016, the victim was mistakenly arrested at Miami International Airport pursuant to a warrant issued in Massachusetts for the arrest of Farina-Torres. The victim was detained before eventually convincing law enforcement that she was a victim of identity theft.
During the investigation, CCSO learned that Farina-Torres had used the victim’s SSN at an Orange Park rental furniture store in April 2015. Farina-Torres failed to make the required payments for the furniture and most of the furniture was repossessed, except for some mattresses that Farina-Torres said had been damaged and thrown out. Farina-Torres was charged with failure to redeliver leased property, but the charge was subsequently dropped.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations and the Clay County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Guatemalan Man Sentenced for Unlawful Reentry After RemovalRead the Press Release
Gulfport, Miss. – Ramiro Tzul, 27, a citizen of Guatemala, was sentenced yesterday by U.S. District Judge Louis Guirola, Jr. to “time served” (or 121 days of federal imprisonment), followed by one year of supervised release, for the unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with Immigration & Customs Enforcement's Homeland Security Investigations (HSI) in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Upon release from his federal prison sentence, Tzul will remain in the administrative detention custody of the U.S. Department of Homeland Security, Immigration & Customs Enforcement. Tzul will face removal proceedings to remove him from the United States back to his home nation of Guatemala. As a result of this felony conviction, if Tzul were to unlawfully return to the U.S., he could face up to ten years in federal prison. Tzul pled guilty before Judge Guirola on March 14, 2019.
On February 5, 2019, on Interstate-10 in Jackson County, Mississippi, a U.S. Border Patrol Agent conducted a traffic stop on a 2005 Honda Odyssey displaying a temporary Texas license plate. The agent requested a driver’s license from the driver, who was identified as Mr. Ricardo Tiul-Cuc, the uncle of Ramiro Tzul. Tiul-Cuc did not have a driver’s license but provided a Guatemalan identification card. The agent also identified two passengers, an adult man who was identified as Ramiro Tzul, and an adult woman, lying down across the back seats.
The three occupants admitted that they were citizens of Guatemala and did not possess the proper documents to be in the United States legally. They were arrested by the Border Patrol and transported to the Gulfport Border Patrol office for processing. Further investigation revealed that both Tiul-Cuc and Tzul had been previously removed from the United States.
Ricardo Tiul-Cuc, also from Guatemala, was prosecuted for the same felony offense of unlawful reentry by an alien after removal. He pled guilty before Judge Sul Ozerden and was sentenced on April 16, 2019 to 3 months in prison followed by one year of supervised release.
“This case highlights that HSI will not allow illegal aliens to travel through a revolving door into the U.S.,” said HSI New Orleans Special Agent in Charge Jere T. Miles. “We will continue to work with our law enforcement partners to protect our legal immigration system and hold those accountable who flagrantly violate those laws.”
U.S. Attorney Hurst praised the teamwork and cooperation exhibited by the Department of Homeland Security, the U.S. Border Patrol, and Homeland Security Investigations. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Grand Jury Indicts Champaign Couple Charged in Counterfeit Check SchemeRead the Press Release
URBANA, Ill. – Initial appearances have been scheduled for two Champaign, Ill., residents facing charges of engaging in a counterfeit check scheme. Stephanie Lemons, 41, of the 1300 block of Hanover, and Tommie Slayton, 34, of the 3700 block of Harbor Estates Lane, are scheduled to appear for arraignment in federal court in Urbana on June 19, 2019.
The federal grand jury in Springfield returned a 20-count indictment on June 5, 2019, that charges the couple with conspiring together and with others to engage in a scheme to pass more than 120 counterfeit checks from July through December 2018. The indictment alleges that during this time, Lemons and Slayton made and presented counterfeit checks at Walmart Stores in Champaign and Bloomington, Ill., and forged checks at Heartland Bank.
Specifically, both Lemons and Slayton are charged with one count of conspiracy to engage in the scheme. In addition, Lemons is charged with six counts of counterfeit securities fraud, six counts of wire fraud, and seven counts of bank fraud. In addition to the conspiracy charge, Slayton is charged, along with Lemons, with the seven counts of bank fraud.
If convicted, the maximum statutory penalty for conspiracy is five years in prison; for each count of counterfeit securities fraud, the maximum penalty is ten years in prison; wire fraud carries a penalty of up to 20 years in prison for each offense; and, for bank fraud, the penalty is up to 30 years in prison.
The charges are the result of investigation by the FDIC Office of Inspector General and the Champaign and Urbana Police Departments, in cooperation with the Champaign County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorneys Elly M. Peirson and Meredith T. Reiter in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Gang Member Charged in Manhattan Federal Court with Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the unsealing today of a Superseding Indictment charging ALJERMIAH MACK, a/k/a “Nuke,” with racketeering, narcotics, and firearms offenses in connection with his membership in, and association with, the Nine Trey Gangsta Bloods, also known as “Nine Trey.” The Superseding Indictment also contains charges against defendant ANTHONY ELLISON, a/k/a “Harv,” who was charged in a previous indictment with racketeering and firearms offenses. The charges against ELLISON remain the same.
MACK was taken into custody this afternoon. He will be presented and arraigned before Chief U.S. Magistrate Gabriel W. Gorenstein later today. The case is assigned to U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Superseding Indictment, Aljermiah Mack, like his Nine Trey co-conspirators, engaged in brazen acts of gun violence and narcotics dealing. Thanks to our remarkable partners at HSI, ATF, and the NYPD, he now faces federal charges for his serious crimes.”
As alleged in the Superseding Indictment unsealed today in Manhattan federal court[1]:
Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn. Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business. Members and associates of Nine Trey enriched themselves by committing robberies and selling drugs, such as heroin, fentanyl, furanyl fentanyl, and MDMA.
The Superseding Indictment charges MACK and ELLISON with racketeering and firearms offenses. Count One of the Superseding Indictment charges MACK and ELLISON with participating in a racketeering conspiracy for their criminal involvement in Nine Trey. Count Two charges MACK and ELLISON with using and carrying firearms, which were brandished and discharged, in connection with the racketeering conspiracy. Counts Three through Five charge ELLISON in connection with his kidnapping and assaulting another member of Nine Trey near the intersection of Bedford Avenue and Atlantic Avenue in Brooklyn on or about July 22, 2018. Count Six charges MACK with conspiracy to distribute heroin, fentanyl, and MDMA, from in or about 2015 to in or about 2018. Count Seven charges MACK with using and carrying a firearm in connection with the narcotics conspiracy.
* * *
A chart containing the charges and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New York City Police Department. He also thanked the New York City Department of Correction’s Intelligence Bureau for its assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jacob Warren, Jonathan Rebold, and Sebastian Swett are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
ALJERMIAH MACK (age 33)
ANTHONY ELLISON (age 31)
20 years in prison
2
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence, which was discharged
18 U.S.C. § 924(c)
ALJERMIAH MACK
ANTHONY ELLISON
Life in prison
Mandatory minimum of 10 years in prison
3
Violent crime in aid of racketeering
(July 22, 2018)
18 U.S.C. § 1959
ANTHONY ELLISON
Life in prison
4
Violent crime in aid of racketeering
(July 22, 2018)
18 U.S.C. § 1959
ANTHONY ELLISON
20 years in prison
5
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence, which was brandished
18 U.S.C. § 924(c)
ANTHONY ELLISON
Life in prison
Mandatory minimum of 7 years in prison
6
Conspiracy to distribute narcotics
21 U.S.C. § 846
ALJERMIAH MACK
Life in prison
Mandatory minimum of 10 years in prison
7
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a narcotics trafficking offense
18 U.S.C. § 924(c)
ALJERMIAH MACK
Life in prison
Mandatory minimum of 5 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
GBK Gang Member Pleads Guilty to Distributing HeroinRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of conspiracy to distribute a quantity of heroin, United States Attorney Scott W. Brady announced today.
Rashem Littleberry, 29, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the Greenway Boy Killas (GBK) street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Rashem Littleberry and his co-conspirators conspired to distribute quantities of heroin.
Judge Schwab scheduled sentencing for October 9, 2019 at 9 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Rashem Littleberry.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Four Sentenced in Connection with Arson at 400 Main Street in Winooski, Vermont and Conspiracy to Distribute Heroin and CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Bryant McCray, 33, and Lateek Cargo, 32, both formerly of Brooklyn, New York, have been sentenced on charges of arson and conspiracy to distribute heroin and cocaine. The charges stem from an April 2016 arson at 400 Main Street in Winooski, Vermont and a years-long drug-trafficking conspiracy involving large quantities of heroin and cocaine. Justin Johnson, 33, of Baltimore, Maryland, and Kylee Raduechel, 31, of Essex, Vermont, also have been sentenced on charges of conspiracy to distribute heroin and cocaine.
On January 22, 2019 and March 7, 2019, United States District Court Judge Christina Reiss sentenced Bryant McCray to 129 months of imprisonment and four years of supervised release and Lateek Cargo to 118 months of imprisonment and four years of supervised release. Both McCray and Cargo were jointly and severally ordered to pay restitution to the victims of the offense in the amount of $138,063.17. Judge Reiss previously had sentenced Justin Johnson to 60 months of imprisonment and four years of supervised release. Finally, on June 3, 2019, Judge Reiss sentenced Kylee Raduechel to 48 months of imprisonment followed by three years of supervised release.
As described at the defendants’ sentencings and in court records, since about late 2014, McCray, Cargo, and Johnson began coming to Chittenden County, Vermont and staying at a variety of local residences to distribute heroin and cocaine. On April 23, 2016, McCray and Cargo went to a Colchester, Vermont gas station where McCray filled a red, plastic can with gasoline. From there, McCray and Cargo went to an apartment complex on Main Street in Winooski, Vermont. Prior to April 23, 2016, Justin Johnson, a drug runner for McCray and Cargo, had been robbed of drugs and money while staying at one of the apartments in the complex. McCray and Cargo traveled to the apartment to exact revenge for the robbery of drugs and money from Johnson. While at the Winooski apartment, McCray and Cargo poured gasoline over the victim’s bedroom and lit it on fire. The fire resulted in extensive damage to the apartment building and displaced tenants, who were able to escape the rapidly spreading flames.
After the arson, Kylee Raduechel began hosting McCray and others at her residence in Essex, Vermont. McCray also possessed a firearm during the offense. In September 2016, the Drug Enforcement Administration and other members of law enforcement executed a search warrant at Raduechel’s residence that resulted in the seizure of about 30 grams of heroin and nearly 100 grams of cocaine base. Undeterred, members of the conspiracy continued to distribute controlled substances in Vermont until their arrests in 2017. All four defendants pleaded guilty before trial.
This case provides an example of the United States Attorney’s Office Violent Crime Initiative, aimed at pursuing federal prosecutions involving the intersection of drug trafficking and violence. United States Attorney Christina Nolan commended the efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Customs and Border Protection Air and Marine Operations, the Vermont State Police and the Vermont Drug Task Force, as well as the Burlington Police Department, the Essex Police Department, and the Winooski Police Department.
United States Attorney Nolan added: “This extraordinary law enforcement collaborative effort exemplifies our resolve to combat violence and drug trafficking. The defendants’ conduct was motivated by greed and they put innocent Vermont lives at risk. We will continue to deliver serious consequences for offenses of this magnitude.”
“These sentencings demonstrate ATF’s commitment to protect our communities from violent criminals that threaten our quality of life,” said ATF Special Agent in Charge Kelly D. Brady, Boston Field Division. “ATF will continue to collaborate with our law enforcement partners to eradicate violent crime and dismantle criminal organizations that threaten our neighborhoods.”
“Illegal drug distribution ravages the very foundations of our families and communities here in Vermont,” said DEA Special Agent in Charge Brian D. Boyle. “ Let these sentences be a warning to those traffickers who are coming from out of state to distribute this poison, that DEA and its local, state and federal partners will do everything in our power to bring you to justice.”
Bryant McCray is represented by Michelle Anderson Barth, Esq. Lateek Cargo is represented by Mark A. Kaplan, Esq. Justin Johnson is represented by Devin McLaughlin, Esq. Kylee Raduechel is represented by Federal Public Defender Michael L. Desautels, Esq. The United States is represented by AUSAs Paul J. Van de Graaf and John J. Boscia.
Four Broward County Residents Were Sentenced up to Life in Prison After Being Convicted at Trial for Their Roles in a String of Armed RobberiesRead the Press Release
Four Broward County residents were sentenced to terms between 34 years and life in prison today, after having been convicted at trial for their participation in a string of armed robberies using firearms. One defendant was also convicted of kidnapping four victims.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
On March 15, 2019, following a four-week jury trial, all four defendants were convicted. Jerome Simmons, 31, of Fort Lauderdale, Florida, was convicted of two counts of Hobbs Act robbery, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery. Adrian Hardy, 34, of Fort Lauderdale, Florida, was convicted of one count of Hobbs Act robbery, two counts of brandishing a firearm in furtherance of a crime of violence, one count of conspiracy to commit Hobbs Act robbery, and four counts of kidnapping. Christopher Brinson, 33, of Fort Lauderdale, Florida, was convicted of two counts of Hobbs Act robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery. Emmory Moore, 34, of Coral Springs, Florida, was convicted of one count of Hobbs Act robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery.
U.S. District Judge Kenneth A. Marra sentenced the defendants today. Simmons was sentenced to three consecutive life sentences. Hardy was sentenced to 480 months in prison. Brinson was sentenced to a total of 408 months in prison. Moore was sentenced to two consecutive life sentences.
According to the court record, including evidence introduced at trial, on March 3, 2017, Christopher Brinson entered Class Jewelers in Deerfield Beach, Florida and engaged one of the employee’s in conversation. Approximately, ten minutes later, Moore and Simmons entered the store, dressed in wigs, makeup and women’s clothing. They held the two employees at gunpoint and demanded they open the safe. Moore and Simmons stole jewelry and other items from the store then left in a waiting vehicle.
On March 15, 2017, historical cell site information showed that cell phones owned by Simmons, Hardy, Brinson, and Moore traveled to Spring Hill, Florida. On March 6, 2017, two men dressed as women entered Lily’s Jewelry in Spring Hill and held the owner at gunpoint while stealing the store’s merchandise. One of the individuals dropped a cellular phone, which was later tied to Moore.
On March 31, 2017, historical cell site information showed that cell phones owned by Hardy, Brinson, and Moore traveled to Valdosta, Georgia. Hotel records established that Simmons checked into a local inn that evening. On April 1, 2017, three men dressed as women entered Bishop’s Jewelers in Valdosta. While holding the business owners at gunpoint, the men stole money, jewelry, and a firearm from the store’s safe. On April 6, 2017, during a traffic stop, the Fort Lauderdale Police Department recovered the firearm stolen in that robbery from the trunk of a car driven by Moore.
On April 16, 2017, three men dressed as women, left a white Jeep and entered LSO Jewelers in Port St. Lucie, Florida. Holding the owner and an employee at gunpoint, the men attempted to steal the store’s jewelry stock. An off duty state agent called the police and reported the robbery. As police arrived, the waiting white Jeep pulled away and the men inside the store fled on foot. Port Saint Lucie officers located Simmons in a nearby hospital parking lot wearing only his underwear and a sock. Brinson, who was driving the white Jeep, was located at a nearby restaurant. Hardy escaped into a nearby retirement community and held the four residents, snowbirds from Toronto, Ontario, at gunpoint for several hours, eventually forcing them to drive him from Port St. Lucie to Fort Lauderdale.
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 the FBI and ATF in this matter. She thanked the Broward Sheriff’s Office, Fort Lauderdale Police Department, Port St. Lucie Police Department, Hernando County Sheriff’s Office, Valdosta Police Department, and U.S. Marshals Service for their assistance. The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Anita White.
Related court documents and information can 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.
Fort Washington Man Sentenced to 66 Months in Federal Prison for Two Separate Drug CasesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Daniel Mark Wilkerson, age 45, of Fort Washington, Maryland today to 66 months in federal prison, followed by five years of supervised release, for possession with intent to distribute more than 100 kilograms of marijuana, and in a separate case for conspiring to steal prescription drugs from federal military hospitals. Judge Grimm also ordered that Wilkerson pay restitution of $4,450,679.60, and forfeit $16,320.44.
The sentence was announced by United States Attorney for the District of Robert K. Hur; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid‑Atlantic Field Office; and Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations-Metro Washington Field Office.
Wilkerson admitted that from January 2008 to June 11, 2013, he conspired with Rodger Gurdon, Issa Wasco Koroma, and others to steal Norditropon, Humatrope, Somatotropin, Botox and other branded varieties of human growth hormone from pharmacies located at Fort Belvoir Community Hospital in Fort Belvoir, Virginia; Walter Reed National Military Medical Center (Walter Reed) in Bethesda, Maryland; and the former Walter Reed Medical Center (Old Walter Reed) in Washington, D.C. They re-sold the stolen pharmaceuticals for profit.
Gurdon and Koroma were pharmacy technicians at Old Walter Reed. From January 2008 until the closure of Old Walter Reed, Gurdon stole Humatrope from the pharmacy and sold it to Wilkerson for no less than $100 per box. The cost to the government for each box of Humatrope was approximately $300. Between January 1, 2009 and June 30, 2011, the conspirators stole more than $2.1 million worth of Humatrope from Old Walter Reed. After Old Walter Reed closed, Gurdon was assigned to work in the pharmacy at Fort Belvoir. At Fort Belvoir Gurdon resumed his theft of HGH, which he distributed to Wilkerson in exchange for payment. Between August 2011 and June 2013, Wilkerson and Gurdon stole more than $850,000 worth of pharmaceuticals from Fort Belvoir.
From January 2008 through June 2013, Koroma was a pharmacy technician at Walter Reed. Beginning no later than the middle of 2011, Koroma began to steal brands of human growth hormones and Botox from the pharmacy at Walter Reed at Gurdon’s request. Koroma met with Gurdon on a regular basis to exchange the drugs for payment from Gurdon. Gurdon then distributed the drugs to Wilkerson. From August 2011 to June 2013, Koroma and Gurdon stole over $1.3 million worth of pharmaceuticals from the pharmacy at Walter Reed.
Wilkerson shipped the stolen HGH and Botox to individuals in California, who paid Wilkerson by cash that was mailed to him from California, as well as by wire transfers from a bank in Mexico.
The total loss to the United States caused by Wilkerson, Gurdon, and Koroma was at least $4,467,000.
According to Wilkerson’s plea agreement in a second and unrelated case, on August 11, 2017, law enforcement officers executed a search warrant for a crate that had been shipped from California to a business in Baltimore and discovered 384 pounds (174 kilograms) of marijuana, worth more than $1 million. Undercover officers conducted surveillance at the business in an effort to determine the identity of the person to whom the crate had been sent. During their surveillance, Wilkerson, who was driving a red Hyundai, was seen driving in the vicinity of the business, and at one point, got out of his car and asked an officer if he was an employee at the business. Later that day, the crate containing the marijuana was claimed by a man who arrived at the business in a pick-up truck with two other men. The crate was placed into the truck and the men left the business, followed by law enforcement. Officers stopped the vehicle, detained the men, and seized the crate containing the marijuana. At the same time, another officer stopped Wilkerson, who was driving his Hyundai nearby. Wilkerson admitted that the crate of marijuana was his and that he had hired the individuals to assist him in picking-up and transporting the crate.
Roger George Gurdon pleaded guilty to conspiracy to steal government property, interstate receipt of stolen property, and conspiracy to distribute marijuana, and was sentenced to 70 months in federal prison. Issa Wasco Koroma, age 62, of Springdale, Maryland, pleaded guilty to conspiracy to steal government property and theft of medical products and was sentenced to five years in prison.
United States Attorney Robert K. Hur praised the DCIS and FDA-OCI for their work in the investigation. Mr. Hur thanked Assistant United States Attorney Thomas P. Windom, who prosecuted the case.
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Former labor union official from Portage County sentenced to a year in prison for embezzling nearly $200,000Read the Press Release
A former labor union official from Portage County was sentenced to a year in prison for embezzling nearly $200,000 from the union.
Terry Doan, 61, of Deerfield, was also ordered to pay $195,147 in restitution. He previously pleaded guilty to embezzlement from an employee benefit plan.
Doan was one of six trustees of the Joint Apprenticeship Training Committee of the Heat and Frost Insulators and Allied Workers, Local 84, headquartered in Kent. The group oversaw the training fund and Doan served as financial secretary/treasurer.
Checks over a certain amount required the signature of two trustees, but Doan had that requirement removed in 2012, according to court documents.
Doan embezzled $195,147 from the union training fund between 2012 and 2017, according to court documents.
“This defendant betrayed the trust of the men and women in the union and is being held accountable for his actions,” U.S. Attorney Justin Herdman said.
“Criminal acts like this directly impact participants in employee benefit plans by compromising their hard-earning benefits and eroding confidence in those chosen to manage their trust,” said Employee Benefits Security Administration Regional Director Joe Rivers, in Cincinnati. “The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs.”
This case was prosecuted by Assistant U.S. Attorney Mark Bennett following an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration and the Department of Labor’s Office of Inspector General.
Former Shipbuilding Project Manager Indicted for Fraud in $1.5 Million False Invoice SchemeRead the Press Release
A former project manager for Portland, Oregon-based shipbuilder Vigor Marine LLC, was indicted today by a federal grand jury in Seattle for ten counts of wire fraud related to his scheme to defraud his employer out of approximately $1.5 million, announced U.S. Attorney Brian T. Moran. SHELTON LAYNE SMITH, 50, of Portsmouth Virginia, is expected to be arraigned on the indictment in U.S. District Court in Seattle in the next two weeks.
According to the indictment, in 2016 and 2017, SMITH served as the project manager on the renovation of two U.S. Coast Guard cutters called the “Bertholf” and the “Waesche.” The renovations took place at Vigor’s Seattle facility. SMITH was responsible for selecting vendors and approving payments to them for equipment and services related to the renovations. The indictment alleges that, in this role, SMITH fabricated invoices from a fictitious company called “Marine Service Solutions” (MSS). The fraudulent invoices caused Vigor to pay out approximately $1.5 million for work that was never done and equipment that was never provided. The indictment alleges that SMITH used the fraud proceeds for his own purposes, including to finance his gambling activities.
SMITH’s scheme to defraud was an elaborate charade. SMITH persuaded a legitimate Vigor vendor to serve as a “pass-through” entity that received invoices from MSS, marked up the cost of the services, and passed on the fraudulent expenses to Vigor. The local vendor was not aware that Marine Service Solutions was not a real company. SMITH also misled a long-time acquaintance in Mississippi into setting up a bank account for MSS, cashing the checks, and funneling most of the proceeds to SMITH. In emails, SMITH posed as the Mississippi man, making it appear as if the Mississippi man was the owner of MSS.
The indictment also alleges that, when questioned by the FBI, SMITH repeatedly lied about MSS and encouraged his acquaintance in Mississippi to stick to a false story about the company.
Vigor terminated SMITH in 2017 after discovering that SMITH had mishandled the Bertholf project. SMITH’s successor discovered the fraud, and Vigor reported the crime to the FBI.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
s._smith_indictment.pdfFormer Postal Employee Sentenced for Misappropriation of Postal FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that JACQUELINE M. BATISTE a/k/a Jacqueline Batiste Francois, age 48, of New Orleans, Louisiana, was sentenced yesterday for Misappropriation of Postal Funds, in violation of Title 18, United States Code, Section 1711.
According to documents filed in federal court, BATISTE was employed by the United States Postal Service (“USPS”) as a City Letter Carrier/Supervisor working in the New Orleans Bywater Station (“Bywater”) Post Office. One of BATISTE’s responsibilities was to prepare and dispatch the Bywater Station’s daily remittances for deposit with the New Orleans Process and Delivery Center Registry Section (“PDCRS”). The case against BATISTE began when the PDCRS contacted the USPS Office of Inspector General (“OIG”) because the Bywater Post Office failed to submit remittances. The USPS OIG’s investigation revealed that Bywater employees gave deposit money to BATISTE for remittance to the Registry Section.
On March 29, 2018, Batiste agreed to meet with special agents of the USPS OIG. BATISTE was advised of her Miranda rights and was told that the agents wanted to discuss financial issues in the Bywater Post Office. BATISTE told the agents that she had a gambling issue and liked to play the slot machines at Boomtown Casino. BATISTE said, on the date in question, she notified a fellow postal employee that she was going to place the deposit money in the safe. Special agents asked BATISTE if that happened and BATISTE replied, “No, I had the urge.” BATISTE admitted to taking the deposit money for March 10, 2018 and going to Boomtown. Special agents asked BATISTE if it was safe to say the missing $1,214.00 was now at Boomtown and she replied “Yes sir.” According to BATISTE, she had already lost her own money at Boomtown on Saturday before losing the rest of the money she had taken from the USPS.
U.S. District Judge Sarah S. Vance sentenced BATISTE to one (1) year of probation and restitution to the United States Postal Service in the amount of $1,214.00.
U.S. Attorney Peter G. Strasser praised the work of the Office of Inspector General for the United States Postal Service. The prosecution of the case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Former Hudson County Public Official Charged with Accepting Bribes for Patient ReferralsRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, woman formerly employed by the Hudson County Office on Aging was charged today with accepting bribes for referring patients in need of home health care aides, U.S. Attorney Craig Carpenito announced.
Myrtha Nicolas, 61, of Jersey City, New Jersey, was charged by complaint with one count of extortion under color of official right. She made her initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court today and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
The Hudson County Office on Aging is an agency of the N.J. Division of Disability Services (DDS) under the State of New Jersey’s Department of Human Services. The DDS works to streamline access to services and information designed to promote and enhance independent living for individuals with disabilities. Included among the services coordinated by DDS were Managed Long Term Services and Supports (MLTSS), whether for an individual living at home, an assisted living facility, or a nursing home.
As a referral coordinator for the Office on Aging, Nicolas exercised control over the coordination and assignment of patients with disabilities in need of home health care services to companies that provide home health care aides.
In June of 2016, Nicolas was approached by a confidential witness (the “CW”) who was a self-employed executive of a home health care company. Nicolas agreed to help refer patients to the CW and agreed to accept $500 dollars per patient she referred to the CW’s company.
On Aug. 4, 2016, Nicolas accepted a payment of $600 for the referral of a patient. The CW complained that the CW was forced to redirect the patient to another health care company because the patient proved difficult, prompting Nicolas to assure the CW that the CW “will get the easy ones,” in the future. On Jan. 23, 2017, Nicolas accepted another $600 cash payment for a patient referral. Nicolas confirmed that she had previously received gift cards from the CW years earlier, but expressed no preference whether future payments from the CW would be in cash or gift cards. On Oct. 17, 2017, Nicolas accepted a final corrupt payment of $1,000 from the CW for patient referrals, promising the CW that in terms of future patients, “whatever I have, you’ll have.”
The extortion under color of official right charge carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Former Fifth Circuit Solicitor Sentenced to Federal PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Daniel Edward Johnson, 48, former Fifth Circuit Solicitor and resident of Blythewood, was sentenced to one year and one day in federal prison after previously pleading guilty to Wire Fraud.
“A prosecutor’s duty is to enforce the law diligently, vigorously, and justly,” said U.S. Attorney Lydon. “As Solicitor, Dan Johnson represented to his constituents, law enforcement, and the courts that he was enforcing the law while he violated it himself time and again. Justice has been served, and we look forward to working with the fine men and women of the Fifth Circuit Solicitor’s Office and Solicitor Gipson as they move forward from under the cloud of Johnson’s conduct. We are grateful to the South Carolina Attorney General’s Office for their assistance in holding him accountable.”
Facts presented in court established that Daniel Edward Johnson was the Fifth Circuit Solicitor from 2011 to 2018. The Solicitor’s Office serves both Richland and Kershaw Counties and receives funding from both, as well as from the federal government. Kershaw County pays the office-related credit card bills for select Solicitor’s Office employees.
During his time as Solicitor, Johnson used Solicitor’s Office funds to cover personal and non-office-related expenses. Johnson was issued Solicitor’s Office credit cards reading “DAN JOHNSON, Fifth Circuit Sol Office.” Using these cards, Johnson made a series of personal and non-office-related purchases, starting no later than 2016. Johnson fraudulently used these cards over 100 times, improperly charging the Fifth Circuit Solicitor’s Office over $44,000. Examples of some of the fraudulent transactions include:
- September 7, 2016, charge for $208.79, at the Elara by Hilton Grand Vacations in Las Vegas.
- September 7, 2016, charge for $911.48, at the Doubletree Magic Mile hotel in Chicago.
- October 1, 2016, charge for $685.07, to Copa Airlines, an airline based in Panama.
- October 5, 2016, charge for $137.22, at the Hilton Columbia Center in Columbia, SC
The total loss amount caused by Johnson’s fraudulent transactions is approximately $44,317.57.
Senior United States District Judge Cameron McGowan Currie sentenced Daniel Edward Johnson to one year and one day in federal prison, to be followed by a 3-year term of court-ordered supervision. The additional day beyond one year makes Johnson eligible to receive up to 54 days of credit against his sentence for good behavior in prison. There is no parole in the federal system.
The case was investigated by The Federal Bureau of Investigation (FBI) and South Carolina Law Enforcement Division (SLED). Assistant United States Attorneys Winston D. Holliday, Jr., Alyssa Leigh Richardson, and William Camden Lewis of the Columbia office prosecuted the case.
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Former Advanced BioHealing CEO to Pay $2.5 Million to Settle False Claims Act AllegationsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces today that Kevin Rakin, the former Chairman and CEO of Advanced BioHealing (ABH), has agreed to pay the government $2.5 million to settle False Claims Act allegations that he knowingly allowed ABH sales representatives to use kickbacks and other unlawful methods to induce clinics and physicians to use or overuse its product, “Dermagraft.” Dermagraft is a bioengineered human skin substitute approved by the FDA for the treatment of diabetic foot ulcers. The Anti-Kickback Statute prohibits, among other things, the payment of remuneration to induce the use of medical devices covered by Medicare, Medicaid and other federally funded health care programs.
“Kickbacks that incentivize the sale of medical devices undermine the integrity of our health care system,” said U.S. Attorney Maria Chapa Lopez. “We will take action against individuals who break the law to inflate the value of their companies at the expense of our federal healthcare programs.”
“We will continue to hold accountable individuals who knowingly allow sales practices that result in false claims, as the government contended in this case,” said Shimon R. Richmond, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “The millions of people depending on government healthcare programs and the taxpayers who fund those programs should expect nothing less.”
The settlement resolves allegations that Rakin allowed Dermagraft salespersons to unlawfully induce clinics and physicians with lavish dinners, entertainment, and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits, and rebates, to induce the use of Dermagraft. Claims filed in violation of the Anti-Kickback Statute are considered false or fraudulent under the False Claims Act. In addition, the Anti-Bribery statute and the Federal Acquisition Regulations prohibit bribes to government officials or employees, including Department of Veterans Affairs (VA) physicians, to obtain a contract or favorable treatment under a supply contract. The United States alleged that as a result of his conduct, Rakin caused millions of dollars in false claims to be submitted to federally funded health care programs for Dermagraft.
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case against Rakin was filed by Heather Webb, a former ABH sales representative, and is captioned: United States ex rel. Webb v. Advanced BioHealing, Inc., Case No. 8:14-cv-1055-T-30EAJ. Ms. Webb will receive at least $550,000 of the settlement.
In 2011, Shire plc (Shire) acquired ABH and named Rakin president of its newly-formed subsidiary, Shire Regenerative Medicine. In January 2017, Shire paid the United States $350 million to settle similar federal and state False Claims Act allegations related to the promotion of Dermagraft.
This matter was investigated by the U.S. Department of Health and Human Services, the FBI, the VA–Office of Inspector General, and the Department of Defense Criminal Investigative Service. It was prosecuted by Assistant United States Attorney Sean Keefe.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Florida Doctor Agrees to Pay $911,136.75 to Settle Alleged False Claims Act Violations Arising from Improper Financial Relationship with Drug Testing LaboratoryRead the Press Release
PITTSBURGH – Dr. Nathan Hanflink of Mt. Dora, Florida, agreed to pay $911,136.75 to settle allegations that he received improper payments for making referrals to Greensburg, Pennsylvania drug testing lab Universal Oral Fluid Laboratories, and caused false claims to be submitted to Medicare for drug testing services, United States Attorney Scott W. Brady announced today.
The settlement announced today resolves allegations that Dr. Hanflink referred Medicare patients to Universal Oral Fluid Laboratories (UOFL) for lab tests while engaged in a financial relationship with UOFL. Specifically, UOFL paid Dr. Hanflink to refer patients to the lab for drug tests; UOFL then submitted claims to Medicare for the drug testing services. The United States alleged that the financial arrangement between Dr. Hanflink and UOFL violated the physician self-referral law, commonly known as the Stark Law, and the Anti-Kickback Statute, giving rise to liability under the False Claims Act.
The Stark Law forbids physicians from making referrals for certain designated health services payable by Medicare to an entity with which the physician (or his or her immediate family member) has a financial relationship, unless an exception applies. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of services covered by federal health care programs, such as Medicare. Violations of the Stark Law or Anti-Kickback Statute may give rise to civil liability for treble damages and penalties under the False Claims Act.
Along with the settlement, Dr. Hanflink also signed an Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General that will require, among other things, regular monitoring of his billing practices for a period of three years.
This matter was investigated by the Federal Bureau of Investigation, the Office of Inspector General of the United States Department of Health and Human Services, and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorneys Rachael L. Mamula and Paul E. Skirtich handled the investigation that led to this settlement on behalf of the United States.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Final Defendant Pleads Guilty to $550 Million Ponzi Scheme—One of the Largest Ever Charged in MarylandRead the Press Release
Baltimore, Maryland – Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada pleaded guilty today to conspiracy to commit wire fraud, aggravated identity theft, and a money-laundering transaction in excess of $10,000, arising from a $550 million investment fraud scheme that operated from 2013 through September 2018. Co-defendants Kevin B. Merrill, age 53, of Towson, Maryland, and Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to their roles in the scheme. The U.S. Securities and Exchange Commission (SEC) has filed a parallel civil complaint in this matter.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.
“Jay Ledford created false documents to help lure investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur. “The effects of this kind of fraud can be devastating. As a result of this scheme, a number of victims have lost their life savings. I am proud of the work of federal prosecutors, FBI agents, and our SEC partners whose efforts interrupted this ongoing fraud scheme before the defendants could victimize even more people.”
According to his plea agreement, Ledford was a certified public accountant in Texas, starting his own practice in Amarillo in 1996 and later expanding to Dallas, Texas. In 1999, Ledford met Kevin Merrill in Dallas, when Merrill was a salesman for a Baltimore company that sold supplies for X-ray machines for hospitals and doctors’ practices. Ledford and Merrill became friends, attending sporting events and visiting casinos together. Ledford prepared Merrill’s taxes for several years.
As stated in his plea agreement, in 2001, Ledford began purchasing consumer debt portfolios, forming a company which did business as Platinum Capital Investments, to hold the debt portfolios. “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties that attempt to collect on the debts. Ledford also solicited investors to supply capital to buy a portfolio or invest in his company. After learning of Ledford’s financial success with Platinum Capital, Merrill expressed interest in getting started in the business. Ledford sold Merrill a few credit portfolios and introduced Merrill to his contacts with the debt reporting services. Merrill formed his own debt collection business, had capital investors, and purchased debt portfolios.
Beginning in January 2013, Ledford and his co-conspirators perpetrated a Ponzi scheme to defraud investors of more than $394 million. Specifically, Ledford and Kevin Merrill invited investors to join them in purchasing consumer debt portfolios. Ledford provided fictitious sales agreements and other documents, including false tax returns, to Merrill, knowing that Merrill was using them to induce individuals to invest in his companies, Delmarva Capital and Global Credit Recovery. For 2013, Merrill deposited approximately $4.3 million from investors, while Ledford raised just over $186,000 from investors. Thereafter, Merrill’s superior sales ability caused Ledford to assume a background role supplying Merrill with fictitious documents, while Merrill was the “front man,” promoting the fraudulent investments to potential investors.
Specifically, the conspirators falsely represented to investors that they would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to other third-party debt buyers, in a practice called “flipping.” According to the related complaint in the civil action filed by the SEC, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Northern Virginia, Denver, Texas, Chicago, New York, and elsewhere.
At today’s hearing, Ledford admitted that to induce investors to participate, he and his co-conspirators falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios, whether they were investing their own funds, and their track record of success. According to the plea agreement, sometimes there was no underlying debt portfolio purchased with the investors’ money. To conceal the truth, Ledford, Merrill, and Jezierski, created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies. In addition, to lend credibility to the transactions, Ledford created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank statements and merchant account reports. In late 2014, Ledford transferred Cameron Jezierski to manage debt collections for Riverwalk/DeVille. DeVille had a collections center in Euless, Texas, and the conspirators began to invite prospective investors to tour Riverwalk’s office and the collections center, which added substance to their claims regarding the success of their portfolio purchasing strategy and collections efforts. In December 2017, Ledford recruited Jezierski to the criminal conspiracy because his analytical skills enabled him to contribute significantly to creating false documentation to induce investors to invest, and to conceal the mark-up Ledford and Merrill added to the purchase price charged to investors for debt portfolios.
Further, Ledford admitted that he and Merrill falsely represented that the monies the conspirators paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors. Merrill and Ledford provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which Ledford and Merrill created. From 2013 - 2018, the scheme to defraud took in over $394 million, and at the time of their arrests, the co-conspirators were attempting to obtain an additional $260 million from investors. Ledford assisted Merrill to divert investors’ funds to purchase a home in Naples, Florida, and also helped Merrill falsisfy records to the bank lender. Ledford diverted fraud proceeds to purchase and renovate a home in Las Vegas, Nevada, to refinance a home in Texas, to gamble at casinos, purchase luxury automobiles, jewelry, and to support a lavish lifestyle.
As part of his plea agreement, Ledford is required to pay restitution in the full amount of the victims’ losses and to forfeit property acquired with the proceeds of the offenses. The U.S. District Court has appointed a receiver to marshal the assets for the benefit of the victims.
Anyone who thinks they may be a victim is urged to contact the FBI at www.FBI.Gov/MerrillLedford or e-mail [email protected].
Ledford faces a maximum of 20 years in prison for the wire fraud conspiracy; a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft; and a maximum of 10 years in prison for money laundering, as well as a possible fine of $250,000, or twice the gross gain, for each of the three counts. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 29, 2019, at 10 a.m.
Kevin B. Merrill, age 53, of Towson, Maryland, and Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to their roles in the scheme. Judge Bennett has scheduled sentencing for Merrill on October 10, 2019, at 9:30 a.m., and for Jezierski on August 12, 2019 at 3:00 p.m. Kevin Merrill’s wife, Amanda Merrill, age 30 of Towson, Maryland, is charged with conspiracy to obstruct justice. No court appearance is currently scheduled for Amanda Merrill. Kevin Merrill and Ledford have been detained since their arrests on September 18, 2018, and Amanda Merrill and Cameron Jezierski are released under the supervision of U.S. Pretrial Services.
United States Attorney Robert K. Hur commended the FBI in Baltimore, Dallas, Las Vegas and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.
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Felon on Federal Supervision Hit with 16 Year Sentence for Drug Trafficking and Death ThreatsRead the Press Release
Anthony Dobbins, 51, of East St. Louis, Illinois, will serve 201 months in federal prison for possession with intent to distribute heroin and cocaine, influencing a federal official by threat, and mailing threatening communications, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Dobbins committed his offenses while on federal supervised release for a 2001 armed bank robbery.
Evidence presented in court showed that on August 10, 2018, when officers arrived at an apartment to arrest Dobbins for violations of his federal supervised release, Dobbins threw two large bags of pressed heroin and one large bag of crack cocaine out the window. In total, the bags contained over 200 grams of heroin and 90 grams of crack cocaine. During a subsequent search of the apartment, officers found two digital scales, packaging materials, drug ledgers, and a full box of .40 caliber ammunition, as well as a small bag of heroin on Dobbins’ bed.
Dobbins pleaded guilty to the drug offenses in December 2018. Then, while he was still in custody at the Alton jail waiting to be sentenced, Dobbins mailed threatening letters to the Director of the Bureau of Prisons in Washington D.C. and the Director of the North Central Regional Office of the Bureau of Prisons in Kansas City, Kansas. In the letters, Dobbins made overt and explicit threats that, upon his return to prison, he would kill the first Bureau of Prisons employee he could get his "uncuffed hands on." When interviewed, Dobbins admitted he sent the letters and doubled down on his intent to kill someone on staff at the prison.
A new indictment was returned on April 2, 2019, and Dobbins pleaded guilty to the threat charges on April 20, without a plea agreement.
At sentencing, the court heard evidence that Dobbins is a ten-time convicted felon and a high-ranking member of the Gangster Disciplines, a notoriously violent street gang. During his 2001 armed bank robbery, Dobbins held the bank employees at gunpoint, taped their mouths, hands and feet, and threatened to kill them if they didn’t comply with his demands. His 201-month sentence includes 51 months for violating the terms of his supervised release on that conviction.
Dobbins was also ordered to serve a five-year term of supervised release at the expiration of his prison sentence.
The investigation was conducted by the Illinois State Police Metro East Police Assistance Team (MEPAT), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol Tobacco and Firearms, the United States Marshal Service (USMS), and the Alton Police Department.
Federal Prison Inmate Charged with Possessing ContrabandRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment against NATHAN DANIEL BROOKS, 37, charging him with three counts of possessing contraband in prison. BROOKS made his initial appearance today before Magistrate Judge Leo I. Brisbois in U.S. District Court in Duluth, Minnesota.
According to the indictment, BROOKS was an inmate of the Duluth Federal Prison Camp on March 24, 2019, when he possessed, obtained, and attempted to obtain several items of illegal contraband, including cannabis and cannabis-infused items, cell phones, tobacco, cigarettes, rolling papers, mp3 players, and other electronic devices.
If convicted, BROOKS faces a potential maximum penalty of 10 years in prison.
This case is the result of an investigation conducted by the Federal Bureau of Prisons and the FBI.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Defendant Information:
NATHAN DANIEL BROOKS, 37
Duluth Federal Prison Camp
Charges:
- Possessing contraband in prison, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts North Suburban Businessman on Bank Fraud and Identity Theft ChargesRead the Press Release
CHICAGO — A north suburban businessman has been indicted on bank fraud and identity theft charges for allegedly fraudulently obtaining millions of dollars in mortgage and vehicle loans and using stolen identities to secure credit from financial institutions.
YALE SCHIFF made false statements in loan applications to obtain mortgage loans secured by a variety of properties, according to an indictment returned in U.S. District Court in Chicago. The charges allege that Schiff filed with the Cook County Recorder of Deeds fraudulent letters from financial institutions claiming that loans on the properties were paid in full and that the mortgages were released, when, in fact, the loans were not paid in full and the mortgages had not been released. Schiff then kept the financing paid by the banks, as well as proceeds from the eventual sales of the properties, without paying the mortgages, the indictment states.
The indictment was returned Wednesday. It charges Schiff, 44, of Riverwoods, with eleven counts of bank fraud and two counts of aggravated identity theft. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
The identity theft charges pertain to Schiff’s alleged use of multiple fake and stolen identities to fraudulently obtain loans for vehicles, including a Jeep Grand Cherokee and a Lexus RX350. The indictment accuses Schiff of submitting to the Recorder’s office fake letters from financial institutions and false releases of the vehicle liens, claiming that the loans were paid in full. In reality, Schiff knew the letters were bogus and that the loans were not paid in full, the indictment states. Schiff then allegedly sold the vehicles, keeping the proceeds without paying the loans.
Schiff also used stolen identities to obtain lines of credit and credit cards, including a charge card at Nordstrom department store that he used for personal use, the indictment states. He then allegedly left large unpaid balances on the cards and the credit lines.
The charges allege that three of Schiff’s relatives and a business associate aided him in the schemes. The indictment seeks forfeiture of a personal money judgment of approximately $4.7 million, as well as a property in Riverwoods.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each bank fraud count is punishable by a maximum sentence of 30 years in prison, while each count of aggravated identity theft carries a mandatory minimum sentence of two years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal & Cincinnati Law Enforcement to Announce Arrest of Cincinnati Police CaptainRead the Press Release
*********** MEDIA ADVISORY ***********
FEDERAL & CINCINNATI LAW ENFORCEMENT TO ANNOUNCE ARREST OF CINCINNATI POLICE CAPTAIN
CINCINNATI – Tomorrow the government in conjunction with the Cincinnati Police Department will announce the arrest of a Cincinnati Police Captain, who is being charged federally.
The briefing will be held:
TOMORROW: FRIDAY, JUNE 7, 2019
WHEN: 2:30 P.M.
WHERE: U.S. Attorney’s Office
Library
221 E. Fourth Street, 4th floor
Cincinnati, Ohio 45202
WHO: U.S. Attorney Benjamin C. Glassman
William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation
Cincinnati Police Chief Eliot K. Isaac
Room available beginning at 2:15 P.M. No TV lighting will be available. ID will be required for entrance at Security on the fourth floor.
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Dominican National Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – A Dominican national residing in Dorchester pleaded guilty yesterday in federal court in Boston to Social Security fraud.
Saddan Bautista Diaz, 28, pleaded guilty to one count of false representation of a Social Security number. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 4, 2019. Bautista Diaz was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
On June 27, 2014, Bautista Diaz, a citizen of the Dominican Republic, applied for a Massachusetts Identification Card using the name and Social Security number of a Puerto Rican citizen. He presented a Puerto Rican birth certificate and a Social Security card in the other person’s name to the Massachusetts Registry of Motor Vehicles as proof of his identity. Based on the application and supporting identity documents, Bautista Diaz was issued an identification card in the name of the Puerto Rican citizen.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Indicted on 29 Counts for Sexually Assaulting Three Women in Separate Attacks in Columbia Heights in 2003 and 2007Read the Press Release
WASHINGTON – Levi Ruffin, 41, of Washington, D.C., was indicted yesterday by a Superior Court grand jury for sexually assaulting three women in separate attacks that occurred in 2003 and 2007, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Ruffin was indicted on 15 counts for the first attack, which occurred on July 2, 2003, including burglary while armed, kidnapping while armed, and first-degree sexual abuse while armed with aggravating circumstances. He was indicted on nine counts for the second attack, which occurred on June 3, 2007, including burglary, kidnapping, and first-degree sexual abuse with aggravating circumstances. He was indicted on five counts for the third attack, which occurred on September 8, 2007, including burglary while armed, kidnapping while armed, and first-degree sexual abuse while armed with aggravating circumstances. Cold case detectives linked the defendant to two of the three attacks by DNA evidence.
The charges carry a maximum sentence of life without the possibility of release and, if convicted, Ruffin will be required to register for the rest of his life as a sex offender. The charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
According to the government’s evidence, on July 2, 2003, the defendant displayed a knife, violently attacked and sexually assaulted the victim in her home, and demanded money before fleeing. On June 3, 2007, the defendant violently attacked and sexually assaulted the victim in a stairwell of her apartment building. On September 8, 2007, the defendant displayed a knife, violently attacked and sexually assaulted the victim in her apartment building. The defendant was a stranger to all three victims.
Ruffin was identified as a suspect in these offenses by MPD’s Cold Case Sexual Assault Unit in June, 2018. On June 27, 2018, a D.C. Superior Court judge signed a complaint and warrant authorizing Ruffin’s arrest, five days before the statute of limitations would have run on the first case. Ruffin is currently in custody serving a sentence on a 2013 violent armed sexual assault and robbery of a woman in the 6900 block of Georgia Avenue, NW.
In announcing the indictment, U.S. Attorney Liu and Chief Newsham commended the work of the detectives of the Metropolitan Police Department’s Cold Case Sexual Assault Unit, Deputy Marshals from the U.S. Marshals Service, and forensic examiners from the Federal Bureau of Investigations. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Veronica Vaughan and Juanita Harris, and Paralegal Specialists Tiffany Fogle and TJ McPhail.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Amy Zubrensky and Marisa S. West, who are investigating and prosecuting the case.
District Man Indicted on 29 Counts for Sexually Assaulting Three Women in Separate Attacks in Columbia Heights in 2003 and 2007Read the Press Release
WASHINGTON – Levi Ruffin, 41, of Washington, D.C., was indicted yesterday by a Superior Court grand jury for sexually assaulting three women in separate attacks that occurred in 2003 and 2007, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Ruffin was indicted on 15 counts for the first attack, which occurred on July 2, 2003, including burglary while armed, kidnapping while armed, and first-degree sexual abuse while armed with aggravating circumstances. He was indicted on nine counts for the second attack, which occurred on June 3, 2007, including burglary, kidnapping, and first-degree sexual abuse with aggravating circumstances. He was indicted on five counts for the third attack, which occurred on September 8, 2007, including burglary while armed, kidnapping while armed, and first-degree sexual abuse while armed with aggravating circumstances. Cold case detectives linked the defendant to two of the three attacks by DNA evidence.
The charges carry a maximum sentence of life without the possibility of release and, if convicted, Ruffin will be required to register for the rest of his life as a sex offender. The charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
According to the government’s evidence, on July 2, 2003, the defendant displayed a knife, violently attacked and sexually assaulted the victim in her home, and demanded money before fleeing. On June 3, 2007, the defendant violently attacked and sexually assaulted the victim in a stairwell of her apartment building. On September 8, 2007, the defendant displayed a knife, violently attacked and sexually assaulted the victim in her apartment building. The defendant was a stranger to all three victims.
Ruffin was identified as a suspect in these offenses by MPD’s Cold Case Sexual Assault Unit in June, 2018. On June 27, 2018, a D.C. Superior Court judge signed a complaint and warrant authorizing Ruffin’s arrest, five days before the statute of limitations would have run on the first case. Ruffin is currently in custody serving a sentence on a 2013 violent armed sexual assault and robbery of a woman in the 6900 block of Georgia Avenue, NW.
In announcing the indictment, U.S. Attorney Liu and Chief Newsham commended the work of the detectives of the Metropolitan Police Department’s Cold Case Sexual Assault Unit, Deputy Marshals from the U.S. Marshals Service, and forensic examiners from the Federal Bureau of Investigations. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Veronica Vaughan and Juanita Harris, and Paralegal Specialists Tiffany Fogle and TJ McPhail.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Amy Zubrensky and Marisa S. West, who are investigating and prosecuting the case.
Con Artist at the Heart of Columbus Grand Reserve Scam Sentenced to 96 Months Imprisonment on 22 CountsRead the Press Release
COLUMBUS – An Alabama woman found guilty by a citizen jury on 22 counts of fraud and conspiracy for her role in stealing large amounts of money from a Columbus business was sentenced to eight years in prison by a U.S. District Judge today, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. The Honorable Clay D. Land sentenced Dorita Clay AKA Dorita Browning/Dorita West/Dorita Mial/Dorita Moultrie/Dorita Mobley/Dorita Brooks, 51, of Selma, AL to 96 months in prison on each of the 22 counts for which she was found guilty on January 9, 2019, all to run concurrently. The defendant will also serve three years supervised release. There is no parole in the federal system. In sentencing the defendant, the Court noted the defendant’s total lack of remorse and sentenced her above the calculated guideline range.
Evidence and testimony introduced at trial established that Ms. Clay conspired with her co-defendant, Darlene Corbett, to steal almost $1 million from Corbett’s employer, the Grand Reserve Columbus. Darlene Corbett took the stand at the January 2019 trial and testified that the money she embezzled all went to Ms. Clay and was in the service of various schemes that Ms. Clay had convinced her were legitimate, to include a pending multi-million dollar estate settlement and a multi-million lawsuit settlement that Ms. Clay claimed she was about to receive. Ms. Corbett further admitted at trial that she had conspired with Ms. Clay to steal the money from the Grand Reserve, to then conceal the theft, and then deceive the FBI with a false story about business loans. Ms. Corbett also testified that both she and her elderly mother had liquidated their life’s savings and taken out personal loans to “invest” in the schemes.
“This skilled con artist, who had no problem concocting lies in order to steal money to support a lavish lifestyle and gambling habit will finally face the consequences for her criminal actions,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “Protecting businesses and the elderly from fraud remains a high priority for the Office. I want to thank the FBI for their work unraveling this scheme, and bringing an end to Ms. Clay’s ruinous lies and criminal actions.”
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Columbus man sentenced for cocaine distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jason R. Smoot, of Columbus, Ohio, was sentenced today to 89 months incarceration for selling cocaine near a playground, United States Attorney Bill Powell announced.
Smoot, age 31, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location” in November 2018. Smoot admitted to selling cocaine near the Jensen Playground in Wheeling in June 2017.
Assistant U.S. Attorney Steven L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.Clifton Park Woman Sentenced to 21 Months for Bank EmbezzlementRead the Press Release
ALBANY, NEW YORK – Caitlin Kenney, age 33, of Clifton Park, New York, was sentenced today to 21 months in prison for embezzlement by a bank employee.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
In pleading guilty, Kenney admitted to embezzling a total of $483,784.83 from KeyBank, N.A., branches in Queensbury and Malta, New York, between September 2013 and February 2017. Kenney, who worked as a head teller for KeyBank, transferred cash from KeyBank’s vaults to unused cashboxes and then stole the money. In an effort conceal her theft, Kenney made false entries in KeyBank’s electronic accounting system. Kenney spent the stolen money on clothes, cocaine and vacations, among other things.
Senior United States District Judge Thomas J. McAvoy also sentenced Kenney to 2 years of supervised release, to begin following her term of imprisonment. She is required to pay $483,784.83 in restitution to KeyBank.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Chelsea Gang Member Pleads Guilty to Drug TraffickingRead the Press Release
BOSTON – A Chelsea man pleaded guilty today in federal court in Boston to possession of cocaine base with intent to distribute.
Adres Perez, 26, pleaded guilty to possession of cocaine base with intent to distribute and is scheduled to be sentenced on Sept. 10, 2019 before U.S. District Court Judge Richard G. Stearns. In December 2017, Perez was indicted along with Cesar Alicea, who was charged with being a felon in possession of a firearm. The charging documents allege that both men were members of the East Side Money Gang.
On Oct. 31, 2017, police in Revere observed what they believed was a drug deal happening from a car. The officers stopped the car, which was driven by Perez – with Alicea in the passenger seat –removed Perez from the car, and pat-frisked him. At the same time, Alicea ran from the car and threw an item, which was recovered and determined to be a .25 caliber Raven Arms pistol. Police later recovered crack cocaine from the car and heroin on Perez.
Alicea previously pleaded guilty and was sentenced in January 2019 to 48 months in prison.
The charge of possession with intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. 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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Revere Police Chief James Guido; and Chelsea Police Chief Brian Kyes made the announcement today. Assistant U.S. Attorneys Timothy E. Moran and Michael Crowley of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
Chelsea Gang Leader Sentenced to over 15 Years in PrisonRead the Press Release
BOSTON – A leader of the East Side Money Gang (ESMG) was sentenced yesterday in federal court in Boston on racketeering, drug trafficking and firearms trafficking charges.
Angel “Stackz” Mejia Zelaya, 24, of Chelsea, was sentenced yesterday by U.S. District Court Judge Richard G. Stearns to 188 months in prison and five years of supervised release. In January 2019, Mejia pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly known as RICO, one count of conspiracy to distribute cocaine and cocaine base, and one count of engaging in the business of dealing in firearms without a license.
Mejia was a leader in the ESMG, a violent, Chelsea-based street gang, which was responsible for various violent crimes, including multiple shootings, and drug distribution in Chelsea and surrounding communities. Mejia, as well as other members and associates of the gang, were also actively involved in illegally selling firearms, including handguns and shotguns, in and around Chelsea.
Mejia participated in multiple, gang-related shootings. On July 5, 2015, Mejia was involved in a shooting targeting a rival gang member on a public street in Chelsea, which did not result in the rival gang member being injured. On March 29, 2016, Mejia and his lieutenant, Josue “Superbad” Rodriguez, agreed to provide a .22 caliber revolver to a third ESMG member, Brandon “Big Baby” Baez, so that Baez could “spank” with it – meaning that he could use it against rivals of ESMG. On April 3, 2016, in Revere, Baez used the revolver to attempt to murder two men believed to be members/associates of a rival gang as they sat in a vehicle. Both men were wounded, but not killed. Baez called Mejia immediately after the shooting to inform Mejia that Baez had just shot two men. Mejia further admitted to supplying other ESMG gang members with firearms, including a juvenile who then accidently shot another person.
While Mejia was the leader of the ESMG, the gang dealt substantial quantities of drugs, including cocaine and cocaine base (crack), in Chelsea and surrounding communities. Mejia was responsible for the distribution of at least a kilogram of cocaine base. Mejia and his gang subordinates stored drugs at and distributed drugs from a residence on Tudor Street in Chelsea and another residence in the Chelsea area. The gang kept handguns at both locations to protect their drug operations, as well as for other gang activities.
The prosecution of Mejia arose out of an investigation of various street gangs, including the 18th Street Gang, ESMG and the Boylston Street Gang, which were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley, made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments. Lelling’s Organized Crime and Gang Unit is prosecuting the case.
California Man Admits Transporting 14 Kilograms Heroin and FentanylRead the Press Release
NEWARK, N.J. – A Riverside, California, man today admitted transporting large amounts of heroin and fentanyl from California to New Jersey for distribution in New Jersey, U.S. Attorney Craig Carpenito; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration, New York Division; New York City Police Commissioner James P. O’Neill; Keith M. Corlett, Acting Superintendent of the New York State Police; and Angel M. Melendez, Special Agent in Charge, Homeland Security Investigations, New York Field Office, announced.
Joselito Colindres, 42, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and over 400 grams of fentanyl.
According to documents filed in this case and statements made in court:
On Oct. 21, 2018, law enforcement officers learned that Colindres and Nester Estuardo Ruano Gutierrez were driving a tractor-trailer containing narcotics from California to New Jersey and elsewhere. After a lawful search of the tractor trailer, law enforcement officers found boxes of narcotics, including approximately 10 kilograms of heroin and four kilograms of fentanyl. Colindres admitted in court that these narcotics were intended for sale in and around New Jersey.
The count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and 400 grams of fentanyl carries a maximum penalty of life imprisonment, a mandatory minimum term of 10 years in prison and a $10 million fine. Sentencing is scheduled for Oct. 10, 2019. Gutierrez has pleaded guilty and is awaiting sentencing.
U.S. Attorney Carpenito credited the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), with the investigation leading to today’s guilty plea.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; IRS-Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF), Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Bloods Gang Member Sentenced to Prison for Possessing FirearmRead the Press Release
NEWPORT NEWS, Va. – A James City County man was sentenced today to 10 years in prison for being a felon in possession of a firearm.
According to court documents, William Kasey, 43, was arrested in February 2017, following the execution of a search warrant at his home in James City County. The search revealed that Kasey was in possession of multiple firearms despite his prior convictions for armed robbery and assault and battery with a deadly weapon. The investigation identified Kasey as a long-time member of the Bloods street gang and his residence also contained gang related documents and materials.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-62.
Avondale Man Sentenced for Theft of Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that JERRY CAMPBELL (“CAMPBELL”), age 60, of Avondale, Louisiana, was sentenced yesterday for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in federal court, CAMPBELL’s sister was authorized to receive Social Security Administration (“SSA”) Title XVI Supplemental Security Income (“SSI”) disability benefits up until her death, which occurred on November 8, 2013. An investigation by special agents with the SSA Office of Inspector General and the Louisiana State Police revealed CAMPBELL was in possession of his late sister’s Chase Bank ATM card and began withdrawing money from her account after her death. CAMPBELL admitted to federal authorities on January 22, 2018, that he used his late sister’s ATM card to pay for his own personal expenses knowing he was not entitled to her Social Security benefits. CAMPBELL failed to notify the SSA of his sister’s death and took approximately $32,836.00 in SSI benefits from her account.
U.S. District Judge Sarah S. Vance sentenced CAMPBELL to three (3) years of probation and restitution to Social Security Administration for $32,836.00.
U.S. Attorney Peter G. Strasser praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Aryan Brotherhood Members and Associates Charged with Racketeering for Directing Murders and Other Violent Crimes from Inside California PrisonsRead the Press Release
SACRAMENTO, Calif. — Sixteen members and associates of a prison-based gang have been charged after a long-running investigation into drug trafficking and murders inside and outside of California’s prisons.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott, and Special Agent in Charge Chris Nielsen of the U.S. Drug Enforcement Administration (DEA) made the announcement.
According to a criminal complaint unsealed today, nine defendants have been arrested on federal racketeering and other charges for extensive, organized criminal activity from within California’s most secure prisons. The allegations include murders, drug trafficking and other violent crimes. The complaint charges California State Prison inmates Ronald Yandell, 56; Daniel “Danny” Troxell, 66; William Sylvester, 51; Travis Burhop, 46; Brant Daniel, 44; Donald Mazza, 48, Pat Brady, 48; Michael Torres, 55; and Jason Corbett, 47. At the outset of this investigation, Yandell, Troxell, Sylvester, Burhop, Torres and Corbett were all serving life sentences for murder.
Five other individuals were also arrested as part of the investigation: Samuel Keeton, 40, of Menifee; Jeanna Quesenberry, 52, of Sacramento; Kevin MacNamara, 39, of La Palma; Kristen Demar, 44, of Citrus Heights; and Justin Petty, 37, of Los Angeles. Warrants have been issued for the arrests of Kathleen Nolan 64, of Calimesa, and Matthew Hall, 50, of Manhattan Beach.
U.S. Attorney Scott stated: “Today we are announcing a significant blow to the leadership of a violent criminal enterprise run from inside California prisons. Despite the incarceration of its leaders in the state’s most secure prisons, the Aryan Brotherhood has maintained its deadly influence over members, associates and others both inside and outside prison walls. The charges allege multiple murders of those who run afoul of the gang, as well as an active drug trafficking operation that spans multiple counties and states. The prosecution of these individuals, if convicted, will help to dismantle and weaken this dangerous organization.”
“This extensive investigation revealed the violent underbelly of a race-based prison gang and organized crime enterprise operating behind bars. Agents exposed Aryan Brotherhood operations providing law enforcement opportunities to successfully intervene and save lives,” stated DEA Special Agent in Charge Chris Nielsen. “This case demonstrates our unwavering commitment to combat drug related gang violence not only on the streets, but also behind prison walls.”
“Neutralizing prison gangs is a top priority for the department, and we are committed to stopping illegal activities conducted by them to further their criminal organizations and instill fear in people,” said Secretary Ralph Diaz, California Department of Corrections and Rehabilitation. “Actions like this operation demonstrate how effective our partnerships are with local, state, and federal agencies so that together we can target dangerous individuals in and out of prison. We value the hard work of our staff and our partners, and are proud of the tremendous work that went into this operation.”
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. They used smuggled-in cellphones to direct their drug trafficking activity from their cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
The complaint alleges that the AB members murdered five other inmates as part of their gang activities and conspired to murder several others. The complaint alleges that on Oct. 7, 2011, Sylvester murdered an inmate at Folsom State Prison and, on Aug. 12, 2015, AB associates carried out an order to murder a rival prison gang member at Folsom State Prison. In addition, the complaint alleges that on Oct. 15, 2016, on Corbett’s order an AB associate murdered an inmate at High Desert State Prison in Susanville, AB member Daniel killed an inmate at Salinas Valley prison on Oct. 29, 2016, and AB members Corbett and Brady murdered an inmate on July 20, 2018, at High Desert State Prison as part of their role in the gang. The complaint further describes multiple other murder plots.
The complaint details the drug trafficking activities of the AB. Members and associates oversaw an extensive drug-trafficking network that operated on the streets of Sacramento, Southern California, Missouri, Las Vegas, and elsewhere. On Aug. 11, 2016, MacNamara, a lawyer, and Demar, posing as a paralegal, visited Sylvester in Folsom State Prison in order to smuggle methamphetamine, cellphones, and tobacco. When the contraband was discovered, Sylvester, using a cellphone, advised Demar to blame their contraband smuggling on the Aryan Brotherhood in order to get out of trouble.
According to the complaint, Petty sent heroin, methamphetamine, cellphones, and other items concealed in food packages to Aryan Brotherhood members at Folsom State Prison and High Desert State Prison. In addition, the investigation uncovered a drug trafficking partnership between AB members Yandell and Burhop with Torres a Mexican Mafia member.
This case is the product of an investigation by the DEA with substantial investigative assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. The facts outlined in the complaint could trigger the federal death penalty for several defendants, and a number of the defendants also face a range of mandatory minimum sentences of five to 10 years in prison. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Aryan Brotherhood Members and Associates Charged with Racketeering for Directing Murders and Other Violent Crimes from Inside California PrisonsRead the Press Release
Sixteen members and associates of a prison-based gang have been charged after a long-running investigation into drug trafficking and murders inside and outside of California’s prisons.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott for the Eastern District of California and Special Agent in Charge Chris Nielsen of the U.S. Drug Enforcement Administration (DEA) made the announcement.
According to a criminal complaint unsealed today, nine defendants have been arrested on federal racketeering and other charges for extensive, organized criminal activity from within California’s most secure prisons. The allegations include murders, drug trafficking and other violent crimes. The complaint charges California State Prison inmates Ronald Yandell, 56; Daniel “Danny” Troxell, 66; William Sylvester, 51; Travis Burhop, 46; Brant Daniel, 44; Donald Mazza, 48, Pat Brady, 48; Michael Torres, 55; and Jason Corbett, 47. At the outset of this investigation, Yandell, Troxell, Sylvester, Burhop, Torres and Corbett were all serving life sentences for murder.
Five other individuals were also arrested as part of the investigation: Samuel Keeton, 40, of Menifee; Jeanna Quesenberry, 52, of Sacramento; Kevin MacNamara, 39, of La Palma; Kristen Demar, 44, of Citrus Heights; and Justin Petty, 37, of Los Angeles. Warrants have been issued for the arrests of Kathleen Nolan 64, of Calimesa, and Matthew Hall, 50, of Manhattan Beach.
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. They used smuggled-in cellphones to direct their drug trafficking activity from their cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
The complaint alleges that the AB members murdered five other inmates as part of their gang activities and conspired to murder several others. The complaint alleges that, on Oct. 7, 2011, Sylvester murdered an inmate at Folsom State Prison and, on Aug. 12, 2015, AB associates carried out an order to murder a rival prison gang member at Folsom State Prison.
In addition, the complaint alleges that on Oct. 15, 2016, on Corbett’s order an AB associate murdered an inmate at High Desert State Prison in Susanville, AB member Daniel killed an inmate at Salinas Valley prison on Oct. 29, 2016, and that AB members Corbett and Brady murdered an inmate on July 20, 2018, at High Desert State Prison as part of their role in the gang. The complaint further describes multiple other murder plots.
The complaint details the drug trafficking activities of the AB. Members and associates oversaw an extensive drug-trafficking network that operated on the streets of Sacramento, Southern California, Missouri, Las Vegas and elsewhere. On Aug. 11, 2016, MacNamara, a lawyer, and Demar, posing as a paralegal, visited Sylvester in Folsom State Prison in order to smuggle methamphetamine, cellphones and tobacco. When the contraband was discovered, Sylvester, using a cellphone, advised Demar to blame their contraband smuggling on the AB in order to get out of trouble.
According to the complaint, Petty sent heroin, methamphetamine, cellphones and other items concealed in food packages to AB members at Folsom State Prison and High Desert State Prison. In addition, the investigation uncovered a drug trafficking partnership between AB members Yandell and Burhop with Torres a Mexican Mafia member.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the DEA with substantial investigative assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office and the Nevada County Sheriff’s Office.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Arsonist Sentenced to 60 Months in Prison for Burning Four Emmett Police CarsRead the Press Release
BOISE – Darrel Rich, 69, of Emmett, Idaho, was sentenced today in U.S. District Court to 60 months in prison, followed by three years of supervised release, for damage by fire to vehicles owned by an institution receiving federal funding and damage by fire to vehicles used in interstate commerce, U.S. Attorney Bart M. Davis announced. The 60-month sentence will run partially consecutive to Rich’s 6-year fixed prison sentence in Gem County for his July 2017 unlawful possession of a firearm by a convicted felon and felony driving under the influence. Rich pleaded guilty to the federal arson offenses on February 11, 2019.
According to court records, on July 25, 2017, after police had visited Rich’s residence in Emmett, Rich had telephone communications with his sister wherein he stated that the police needed to “back off now or somebody is going to get hurt” and that if she “call[ed] the cops on me again. . . we’re done.”
According to court records, on July 26, 2017, at approximately 12:04 a.m., Rich drove his Chevrolet Impala to the Emmett Police Department and parked it on First Street across from the Emmett Police Department unsecured back parking lot. Rich exited the car, opened the trunk and retrieved a gasoline canister, walked to the rear of four police cruisers parked in the back parking lot, and poured gasoline from the canister behind each of them. Rich then lit something on fire, threw it toward the police cruisers, and they ignited. In lighting the police cruisers on fire, Rich acted maliciously and without justification or excuse.
According to court records, the four police cruisers were used in local and interstate police activity, including patrolling interstate streets and transporting out-of-state violators of the law. Also, from 2014 through 2017, the Emmett Police Department received federal financial assistance in the form of subsidies for bulletproof vests.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Idaho State Police, the Gem County Sheriff’s Office, and the Emmett Police Department.
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Akron man indicted for having a 9 mm handgun converted into an illegal machine gunRead the Press Release
An Akron man was indicted for illegally having a 9 mm handgun converted into an illegal machine gun.
Kortney D. Moore, 21, was indicted on one count each of being a felon in possession of a firearm, illegal possession of a machine gun and possession of an unregistered firearm.
Moore, on April 2, 2019, possessed a Glock 9 mm pistol with an installed conversion device that allowed the handgun to be fired fully automatic. Additionally, Moore was not permitted to possess any firearm because of previous felony convictions, according to the indictment.
“Adding this specific part to a handgun to make it fully automatic makes that firearm illegal and puts the public at risk,” U.S. Attorney Justin Herdman said. “We will work with our law enforcement partners to prosecute all firearms violations, and especially to stop the flow of these parts into the country.”
“The possession of illegal firearms is a violation of federal law and a threat to public safety,” said Jonathan T. McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work closely with our law enforcement partners to protect our communities.”
This case is being investigated by Assistant U.S. Attorney Christopher Joyce following an investigation by the ATF and Akron Police Department.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
5 June 2019
Wilmington Man Sentenced to Nine Years for Heroin DistributionRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge James C. Dever, III, sentenced RICHARDO QUAMAINE TILLERY, 33, of Wilmington to 108 months’ imprisonment, followed by 3 years of supervised release. TILLERY pled guilty on August 28, 2018, to one count of distribution of and possession with intent to distribute heroin.
On April 25, 2017, agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) used a confidential informant to conduct a controlled purchase of 50 dosage units of heroin from TILLERY. The transaction occurred inside a wired undercover apartment, which ATF employed to investigate gang and drug activity in the Wilmington, North Carolina, area. Agents observed the transaction as it occurred through a remote live feed. TILLERY’s sale to the CI was not an isolated occurrence: At sentencing, the Court determined that TILLERY’s past conduct involved the distribution of over one kilogram of heroin.
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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Jake D. Pugh represented the government.
Violent Leader of Marijuana Trafficking Organization Sentenced to PrisonRead the Press Release
TUCSON, Ariz. --On June 3, 2019, Carlos Correa, 29, of Hereford, AZ was sentenced by Senior U.S. District Judge Raner C. Collins to 25 years in prison. Correa previously pleaded guilty to Conspiracy to Possess with Intent to Distribute more than 1,000 Kilograms of Marijuana and received sentencing enhancements for murdering a co-conspirator and for his leadership role in a marijuana trafficking organization. Correa is the last of eight federal defendants to be sentenced in this multi-agency investigation into a large marijuana smuggling enterprise.
The investigation into Correa’s drug smuggling enterprise began on June 18, 2015, after a traffic stop of a vehicle loaded with marijuana that had attempted to circumvent the Willcox Border Patrol checkpoint. A cell phone containing photographs and texts depicting and identifying firearms with obliterated serial numbers, illegal narcotics packaged for distribution, and large sums of U.S. currency was seized from the vehicle and determined to belong to Correa.
Over the next eight months, ATF, Border Patrol, and numerous southern Arizona law enforcement agencies worked together to investigate the drug smuggling enterprise led by Correa and the murder victim. The investigation resulted in the arrest of more than 20 co-conspirators for related offenses. Prosecutions were completed by the Arizona Attorney General’s Office, Cochise County Attorney’s Office, and the United States Attorney’s Office. Participating agencies seized over 4,000 pounds of marijuana and several firearms, including an AR-15 and an AK-47 with obliterated serial numbers.
On February 26, 2016, Correa murdered the victim and co-conspirator during a dispute involving marijuana load payments. Correa pled guilty to second-degree murder in Cochise County case number CR201600301, and was sentenced to 16 years’ imprisonment by Cochise County Superior Court Judge James Conlogue in that case.
The investigation in this case was conducted by ATF and U.S. Border Patrol in conjunction with the Arizona Department of Public Safety and the Sierra Vista Police Department. The federal prosecution was handled by Assistant U.S. Attorneys Adam D. Rossi and Rui Wang, District of Arizona, Tucson.
United States Intervenes in False Claims Act Lawsuit Against Drug Maker Mallinckrodt Alleging Illegal KickbacksRead the Press Release
The United States filed a complaint under the False Claims Act against Mallinckrodt ARD LLC, formerly known as Mallinckrodt ARD Inc. and previously Questcor Pharmaceuticals Inc., in the U.S. District Court for the Eastern District of Pennsylvania, the Department of Justice announced today. The government alleges that Mallinckrodt and Questcor (collectively Mallinckrodt) engaged in conduct that violated the False Claims Act by using a foundation as a conduit to pay kickbacks in connection with its drug H.P. Acthar Gel (Acthar) from 2010 through 2014.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, 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 serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
The government alleges that Mallinckrodt used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients while increasing its price. Mallinckrodt allegedly paid these illegal subsidies through three funds that Mallinckrodt had a foundation set up to pay Acthar Medicare copays to the exclusion of other drugs. The government alleges that Mallinckrodt then routed patients with Acthar prescriptions to these funds. Mallinckrodt allegedly made continuing payments as the sole “donor” to these funds, to keep subsidizing Acthar Medicare copays as it expanded its sales of the drug. The government alleges that the Company paid these subsidies to induce Medicare-reimbursed purchases of Acthar at its ever-increasing price, and used the subsidies to counteract doctor and patient concerns about the drug’s high cost and to market the drug as “free.” The government further alleges that since its acquisition of Acthar in 2001, Mallinckrodt had raised its price from approximately $50 to over $32,200 per 5 milliliter vial by the end of 2014.
“Illegal inducements increase the costs paid by the American taxpayer and distort the market forces that otherwise could control those costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit and prior enforcement actions make clear that the Department will hold accountable drug companies that pay illegal kickbacks to facilitate increased drug prices.”
“Medicare Part D is an important program that our nation instituted to help seniors cover prescription drug costs, and Congress enacted safeguards to ensure Part D’s fiscal viability for those citizens,” said United States Attorney William M. McSwain. “In my office’s continued commitment to fighting health care fraud, we will not allow drug companies to use so-called charitable patient assistance funds to do what they otherwise cannot do – pay patients’ co-pays to circumvent these safeguards and increase their profits.”
"Medicare rules are designed to protect beneficiaries and taxpayer dollars," said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. "HHS-OIG and the U.S. Attorney's Office will continue to work together to fight health care fraud and investigate allegations of co-pay and kickback violations."
The allegations that are the subject of the government’s complaint were originally brought in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases here, which are captioned United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.), and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The claims asserted by the United States are allegations only and there has been no determination of liability.
United States Files Lawsuit Against Drug Maker That Jacked up Drug Prices from $50 to $32,000Read the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that the United States filed a complaint under the False Claims Act against Mallinckrodt ARD LLC, formerly known as Questcor Pharmaceuticals, Inc. (“Mallinckrodt”), in the U.S. District Court for the Eastern District of Pennsylvania. The government alleges that Mallinckrodt violated the False Claims Act by using a foundation as a conduit to pay kickbacks in connection with its drug H.P. Acthar Gel (“Acthar”) from 2010 through 2014 in a scheme that was designed to enable Mallinckrodt to raise the price of a vial of Acthar from $50 to $32,000. Acthar is a drug available to treat certain conditions including acute exacerbations in multiple sclerosis, lupus, and rheumatoid arthritis.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, 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 serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
The government alleges that Mallinckrodt used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar, so it could market the drug as “free” to doctors and patients despite increasing Acthar’s price astronomically. Mallinckrodt allegedly paid these illegal subsidies through three funds that it established at the foundation to the exclusion of other drugs. The government alleges that Mallinckrodt was the sole “donor” to these funds and routed Acthar patients there to receive virtually guaranteed copay subsidies to counteract doctor and patient concerns about the drug’s high cost. By doing so, Mallinckrodt marketed Acthar as “free” to patients and caused the submission of millions of dollars in false Acthar claims to Medicare. The subsidies it routed through these funds drove Acthar prescribing and was a proven method that negated concerns about the cost of the drug, allowing Mallincrkodt to continually raise its price.
From the time of Mallinckrodt’s acquisition of the drug Acthar in 2001, Mallinckrodt raised the price from approximately $50 per vial to over $32,000 per vial by the end of 2014.
“Drug companies are not allowed to pay patients’ co-pays. That rule is designed to prevent the very thing Mallinckrodt allegedly did here – outrageously jack up Acthar’s price and leave the government with the entire bill,” said U.S. Attorney McSwain. “We will not allow drug companies to use so-called charitable patient assistance funds to do what they otherwise are not allowed to do. That’s an illegal kickback and undermines the viability of Medicare Part D, which our nation instituted to help seniors cover prescription drug costs.”
“Illegal inducements increase the costs paid by the American taxpayer and distort the market forces that otherwise could control those costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit and prior enforcement actions make clear that the Department will hold accountable drug companies that pay illegal kickbacks to facilitate increased drug prices.”
“Medicare rules are designed to protect beneficiaries and taxpayer dollars,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “HHS-OIG and the U.S. Attorney's Office will continue to work together to fight health care fraud and investigate allegations of co-pay and kickback violations.”
The allegations in this case were brought in two lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.
“We sincerely thank the relators in this case. Together with their lawyers, these three citizens provided essential assistance to the government throughout its investigation. Without their willingness to shed light on allegations of fraud, preserving government program funds would be far more challenging,” said U.S. Attorney McSwain.
This matter was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania in conjunction with Civil Division’s Commercial Litigation Branch, and the U.S. Department of Health and Human Services Office of Inspector General. For the U.S. Attorney’s Office, this case is handled by Assistant United States Attorney Colin Cherico and Auditor George Niedzwicki.
The cases are captioned United States of America ex rel. Charles Strunck et al. v. Questor Pharmaceuticals, Inc., No. 12-CV-0175 (E.D. Pa.) and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The United States filed a notice of intervention in these two cases on March 6, 2019.
The claims asserted against defendant are allegations only and there has been no determination of liability.
United States Files Complaint Against 21 Corporations for Environmental Violations at 13 N.Y. and N.J. Gas StationsRead the Press Release
CENTRAL ISLIP, N.Y. – Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against Genesis Petroleum, Inc., and 20 of its associated companies, (collectively, “Defendants”), for violating the Resource Conservation and Recovery Act (“RCRA”) at 13 separate gas stations within the Eastern District of New York and the District of New Jersey. The violations alleged in the complaint involve Defendants’ improper management of 38 underground storage tanks at 13 of Defendants’ gas stations. These tanks typically contain gasoline and diesel fuel and can cause serious environmental damage if allowed to leak.
The lawsuit seeks injunctive relief to assure Defendants’ future compliance with RCRA and an order imposing civil penalties for Defendants’ violations of up to $16,000 per tank for each day of violation.
As alleged in the complaint filed today in federal court in Central Islip, New York, Defendants repeatedly violated RCRA and its related regulations at various times from 2012 to 2016. These violations included failing to install spill and overfill prevention equipment, failing to perform release (i.e., leak or spill) detection and failing to maintain and provide records of release detection monitoring. In some instances, Defendants failed to secure underground storage tanks that were temporarily closed, and failed to investigate or report suspected releases. In another instance, EPA inspectors observed a visibly corroded storage tank at one of Defendants’ stations. At times, Defendants also failed to cooperate with the EPA by refusing to permit station inspections and by failing to respond to the EPA’s requests for information about the underground storage tanks that they owned and/or operated.
“The Defendants’ repeated violations of the Resource Conservation and Recovery Act put groundwater at risk of contamination, potentially endangering the health and safety of residents of Nassau and Suffolk Counties in New York as well as residents of New Jersey,” stated United States Attorney Donoghue. “We are committed to enforcing the laws protecting our residents from hazardous wastes and the dangers they pose.”
“Failure to monitor and maintain tanks to prevent leaks can pose a serious safety risk, as the leaking underground tanks can release toxic components that can seep into the soil and the groundwater,” said EPA Regional Administrator Peter D. Lopez. “These violations are all too common, and EPA is working to ensure that we hold the companies responsible for properly managing their tanks to reduce these risks where these gas stations are located.”
While the violations alleged in the complaint do not pose an immediate threat to the drinking water of the areas’ residents, compliance with the RCRA’s leak prevention regulations for underground storage tanks is vital to ensure the integrity of tanks and prevent the release of petroleum product to soil and groundwater. Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health. When operated conscientiously and monitored closely, underground storage tanks are a safe and effective means to store gasoline. But when tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking petroleum into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions. EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks and monitor for leaks so they can promptly be addressed.
The matter is being handled by Assistant U.S. Attorney Jolie Apicella of the United States Attorney’s Office for the Eastern District of New York, working with Lee Spielmann, Assistant Regional Counsel, EPA Region 2, and Paul Sacker, Senior Enforcement Officer, EPA Region 2.
The Defendants:
Genesis Petroleum, Inc.
Technic Management, Inc.
Gulden Inc.
2664 RT 112 Realty Corp.
607 Station Road Realty Inc.
1000 Motor Parkway Central Islip LLC
616 Broadway LLC
Freeport Realty LLC
199 E. Sunrise Highway Realty Corp.
465 Nassau Road Realty Corp.
Camlica, Inc.
Kucukbey Corp.
North Country Road Realty LLC
Elizabeth NJPO LLC
Elizabeth NJPG LLC
Perth Amboy NJPO LLC
Perth Amboy NJPG LLC
Newark NJPO LLC
Newark NJPG LLC
North Bergen NJPO LLC
North Bergen NJPG LLC
Gas Station Locations:
- 2664 Route 112, Medford, New York
- 607 Station Road, Bellport, New York
- 87 North Country Road, Miller Place, New York
- 616 Route 110, Amityville, New York
- 6077 Jericho Turnpike, Commack, New York
- 199 E. Sunrise Highway, Freeport, New York
- 131 West Merrick, Freeport, New York
- 465 Nassau Road, Roosevelt, New York
- 261 East Merrick Road, Freeport, New York
- 507 Bayway Avenue, Elizabeth, New Jersey
- 163 Fayette Street, Perth Amboy, New Jersey
- 66-80 Bloomfield Avenue, Newark, New Jersey
- 8012 Tonnelle Avenue, North Bergen, New Jersey
Two Men Indicted for Firearms OffensesRead the Press Release
BOSTON – A Boston man and a Randolph man were indicted today in federal court in Boston with conspiring to deal firearms illegally.
Charles A. Slayden, Jr., 25, of Boston, was charged with conspiracy to deal in firearms without a license. Levenson Merilus, 28, of Randolph, was charged with one count of conspiracy to deal in firearms without a license and one count of making false statements to acquire firearms from a licensed dealer.
According to court documents, Slayden and Merilus conspired to purchase firearms from a licensed dealer and re-sell them for profit to individuals in Boston. In furtherance of this conspiracy, Merilus purchased at least seven guns from a licensed dealer, falsely claiming to be purchasing them for himself.
The charge of conspiring to deal in firearms without a license provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of making false statements to acquire firearms from a licensed dealer provides for a sentence of no greater than ten years in prison, three years of supervised release and a fine of $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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today.
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. PSN is 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.
Towaoc Man Sentenced to over 10 Years in Federal Prison for Attempted Murder of a Police OfficerRead the Press Release
DURANGO – Wendell Mills, Jr., age 21, of Towaoc, Colorado, was sentenced yesterday by U.S. District Court Judge Robert E. Blackburn to serve over 10 years (121 months) in federal prison, followed by 3 years on supervised release for attempting to murder a federal police officer, announced U.S. Attorney Jason Dunn and FBI Denver Special Agent in Charge Dean Phillips. Mills appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Mills was indicted by a federal grand jury on April 13, 2018, on a charge of Attempted Murder in the Second Degree of a Federal Officer. According to court documents, as well as facts presented during sentencing, on April 8, 2018, Mills tackled a Bureau of Affairs Police Officer who was attempting to effectuate an arrest in Towaoc, Colorado, on the Ute Mountain Ute Indian Reservation. On the ground, Mills and another individual attempted to choke the officer while yelling “goodnight officer!” During the struggle, Mills grabbed the officer’s holstered pistol, causing the gun to discharge into the officer’s leg. As Mills took control of the weapon, the officer was able to release the gun’s magazine. Mills pointed what he believed was a loaded gun at the officers head and pulled the trigger. When the gun failed to discharge, Mills “racked” the slide, and again tried to fire it at the head of the officer. A bystander intervened long enough for the officer to deploy his taser and subdue Mills.
“The brave men and women serving as federal agents and officers routinely accept risk to themselves to protect us and our communities,” said U.S. Attorney Jason Dunn. “Violence against our law enforcement community will simply not be tolerated.”
“This sentence represents the FBI's commitment to prosecute to the fullest extent of the law anyone who seeks to assault or kill any of our law enforcement partners,” said FBI Special Agent in Charge Dean Phillips.
This case was investigated by the FBI and the Bureau of Indian Affairs. The defendant was prosecuted by Assistant U.S. Attorney Jeff Graves.
Toledo woman who served on the board of Lucas County Children Services sentenced to nearly two years in prison for making false statements as part of investigation into the sex trafficking of minorsRead the Press Release
A Toledo woman was sentenced to nearly two years in prison for making false statements as part of investigation into the sex trafficking of minors.
Laura Lloyd-Jenkins, 44, was sentenced to 21 months in federal prison. She previously pleaded guilty to one count making a false statement.
“This defendant held a position of trust in the community. Instead of reporting the exploitation of children to the police when she learned about it, she kept the information to herself and then lied when asked about it,” U.S. Attorney Justin Herdman said.
"We are pleased with the sentence Ms. Lloyd-Jenkins has received for the untruths she told to law enforcement and for the efforts she engaged in to cover up abuses of an under-aged female being trafficked for sex,” said FBI Special Agent in Charge Eric B. Smith. “In a public position of trust , Ms. Lloyd-Jenkins was held at a higher standard. We encourage the public to report any suspicions of child exploitation to law enforcement."
Lloyd-Jenkins was charged as part of a 13-count indictment in which Kenneth Butler, Cordell Jenkins, and Anthony Haynes, are all charged with conspiracy to sex traffic children.
Lloyd-Jenkins obstructed a sex trafficking investigation by notifying a defendant of the forthcoming investigation on March 29, 2017, according to court documents.
Lloyd-Jenkins made false statements to law enforcement on April 12, 2017, about her knowledge of the sexual exploitation of a minor, according to court documents.
Lloyd-Jenkins was the Lucas County Administrator and served on the board of Lucas County Children Services at the time of the crimes, according to court documents and statements.
Haynes, Butler and Jenkins sexually assaulted a juvenile girl beginning in 2014 through 2017, according to court documents.
The girl was 14 when the conduct began and she was in the custody of Hayne. Some of this conduct took place at Greater Life Christian Center in Toledo, where Haynes was pastor at the time. Haynes used his cellular telephone to record these sexual assaults, according to court documents.
Haynes routinely gave the victim money after the acts and told her not to say anything. He told her that if she said anything, it would ruin his family and his church, according to court documents.
Haynes also facilitated the victim being sexually exploited by several other men, including Jenkins, according to court documents.
Jenkins repeatedly sexually exploited the minor at his home on Barrington Drive, at his office at Abundant Life Ministries and at a motel in Toledo. He paid her and referred to the payment as “hush money.” He often recorded these interactions with his cellular telephone, according to court documents.
Jenkins also caused another juvenile girl to engage in commercial sex acts in March 2017, according to the indictment
Butler also caused another juvenile girl to engage in commercial sex acts from 2015 through 2017, according to indictment.
Jenkins was sentenced to life in prison. Butler was sentenced to more than 17 years in prison. Haynes is scheduled to be sentenced later this month.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Alissa Sterling following an investigation by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Timothy J. Downing Sworn in as United States AttorneyRead the Press Release
OKLAHOMA CITY – Timothy J. Downing has taken the oath of office as United States Attorney for the Western District of Oklahoma. Chief U.S. District Judge Joe Heaton administered the oath this morning in chambers so Mr. Downing could take up his duties immediately. A formal investiture will be announced at a later date.
President Trump nominated Mr. Downing as U.S. Attorney on March 5. After passing through the Senate Judiciary Committee on May 9, the full Senate confirmed him by voice vote on May 23. The President signed his commission yesterday.
As the United States Attorney, Mr. Downing is the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States in the Western District of Oklahoma, which the largest of three judicial districts in Oklahoma and includes 40 of the state’s 77 counties.
Prior to his appointment as United States Attorney, Mr. Downing served as Counselor to the Oklahoma Secretary of State. From 2016 to 2018, he served in the Oklahoma House of Representatives, where he was an Assistant Majority Floor Leader, an Assistant Majority Whip, and Vice-Chair of the Judiciary Committee. From 2011 to 2016, Mr. Downing was an Assistant Attorney General for Oklahoma, where he represented the State of Oklahoma in criminal appeals, was a member of the Opinion Conference, and was Director of Legislative Affairs. Since 2011, Mr. Downing has also served as a Judge Advocate in the United States Army Reserve. From 2013 to 2014, he served in this capacity as a Special Assistant United States Attorney at Fort Hood, Texas, working with the United States Attorney’s Office for the Western District of Texas.
Mr. Downing received his Juris Doctor from Regent University School of Law, his Master of Management from Oral Roberts University, and his B.A. in Public Affairs and Administration from the University of Oklahoma.
Mr. Downing takes the reins from First Assistant U.S. Attorney Robert J. Troester, who led the office as Acting U.S. Attorney from February to August of 2018 and continued to run the office after August 2018 with the title of First Assistant. Mr. Troester will continue to have an important leadership role under Mr. Downing.
"Ensuring public safety and the fair and impartial administration of justice are sacred duties," said U.S. Attorney Downing. "It is an honor to join the team of exceptional men and women serving in the Western District of Oklahoma."
Texas Personal Assistant Charged with Fraud for Stealing from her Elderly ClientRead the Press Release
HOUSTON – A 40-year-old Richmond woman has been indicted for fraud and making false statements regarding her participation in a scheme to defraud her 94-year-old client who is now legally blind, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI and Harris County Precinct One Constable Alan Rosen.
A federal grand jury returned the four-count indictment against Amy Anglin aka Amy Powell May 30, 2019. Today, law enforcement took her into custody. She is expected to make her initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m. today.
“Because of the complex nature of these case, the Department of Justice is uniquely suited to investigate and prosecute elder fraud,” said Patrick. “As the Attorney General has stressed, elder fraud will not be taken lightly and sadly this is just one of many similar allegations that we see routinely. I thank the family for bringing this case to the attention of law enforcement and we will do everything in our power to make sure justice is served on Ms. Anglin.”
Anglin is charged with two counts of fraud and two counts of making false statements to federal employees.
“Our investigators worked tirelessly on this appalling case to ensure Ms. Anglin was brought to justice for her alleged crimes,” said Assistant Special Agent in Charge Darryl Wegner. “Ms. Anglin allegedly capitalized on an elderly man’s vulnerability without any regard for his well-being. The FBI, alongside its local, state and federal partners, will continue to work every day to protect our elderly neighbors from fraud and abuse. We urge anyone with information about elder fraud or abuse to contact law enforcement immediately.”
The indictment alleges Anglin began working for a successful real estate developer in Houston in approximately 2015 when he 91 years old and his eyesight was beginning to fail. Anglin allegedly took advantage of the victim’s poor health and began to steal money from his bank accounts and misused his credit cards to purchase, among other things, airline tickets for herself and her family. Anglin would get her elderly victim to sign checks he believed were legitimate and authorized expenditures, according to the charges. She would then allegedly have the funds deposited into her personal bank account.
“I cannot articulate how disturbed I am by allegations in this case,” said Constable Alan Rosen. “I take seriously any possible crimes against the elderly, particularly those who are disabled. This woman is charged with taking advantage of a man who is 54 years her senior. I appreciate the collaborative efforts of the FBI and U.S. Attorney's Office in pursuing this case and ensuring justice is served.”
Anglin would also illegally convert the victim’s assets by use of both his bank account and his credit cards, according to the indictment. In addition to using her access to the victim’s banking accounts and business credit cards, the charges allege Anglin wired herself large amounts of money and used Western Union to transfer the victim’s money to her friends and acquaintances. Anglin allegedly transferred funds from the victim’s accounts to pay for vacations in Las Vegas, resorts in Hawaii and trips to her hometown. Anglin also used the stolen money to pay for country club memberships, golf lessons, overdue child support payments and major home improvements, including a hot tub, according to the indictment.
The charges further allege that at no time during the fraud scheme was Anglin authorized to make these transfers or payments.
Anglin’s scheme was uncovered when the victim’s family began to question certain payments associated with his accounts, according to the indictment.
With the help of a Houston-based attorney, the family has estimated the total amount of fraud associated with Anglin’s scheme to be more than $550,000.
The scheme allegedly began in late 2015 and continued until approximately December 2018.
If convicted of wire fraud, Anglin faces up to 20 years in federal prison, while a conviction for making false statements, carries a potential five-year-prison term.
The FBI and Harris County Precinct One Constable’s Office conducted the investigation. Assistant U.S. Attorneys Heyward Carter and Steve Mellin are prosecuting the case.
The charges are the result of a renewed effort by law enforcement to protect America’s older citizens from elder abuse.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, The Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past February the Attorney General announced the largest elder fraud enforcement action in American history, charging more than 200 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Elder justice refers to a society’s response to elder abuse, which includes physical abuse, caregiver neglect, financial exploitation, psychological abuse, sexual abuse and abandonment.
Elder fraud complaints may be filed with the FTC or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.