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5 June 2019
South Texas Man Charged with Child Exploitation via Social Media AppsRead the Press Release
McALLEN, Texas — A 21-year-old Harlingen man has been indicted for coercion and enticement of a minor, announced U.S. Attorney Ryan K. Patrick.
Alejandro Moya was originally charged by criminal complaint as he arrived at a local motel to meet whom he thought was a 13-year-old female. Today, a federal grand jury returned the indictment. He is expected to appear in court June 13 for his arraignment before U.S. Magistrate Judge J. Scott Hacker.
The complaint alleges that beginning May 9, 2019, Moya enticed an individual he believed to be a 13-year-old female on the social media apps Kik and Whisper. Moya allegedly sent multiple unsolicited sexually explicit images and videos of himself, requesting to meet at a motel in Pharr. The charges allege that in those conversations, he described sexual acts he desired upon meeting.
He was taken into custody as he arrived at the motel.
Moya has been in custody since his arrest. At a detention hearing May 17, the court found he was a danger to the community and ordered he remain in custody.
If convicted, Moya faces a minimum of 10 years in federal prison.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation as part of the Rio Grande Valley Child Exploitation Investigations Task Force.
Assistant U.S. Attorneys Steven Belt and Andrew Henning are prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Six Individuals with Ties to National Gang Charged with Hobbs Act Conspiracy, Narcotics and Firearms OffensesRead the Press Release
BOSTON – Six men were charged in federal court in Worcester today with various narcotics, firearms and conspiracy offenses.
According to the charging documents, Junior Melendez, Shaun Walker, and Keith Johnson, all of Worcester, conspired to rob a high end glass pipe dealer in Rockland in March 2019. That attempt was thwarted by law enforcement, who arrested Johnson and Walker for possession of a firearm. Melendez was also charged for conspiring with Angel Cordova, Juan Rodriguez, and Antoine Mack to possess with intent to distribute, and to distribute, cocaine and crack cocaine. Mack was also charged as a felon in possession of a firearm after he was arrested in Worcester on May 24, 2019, in possession of a loaded .380 caliber handgun.
As alleged in court documents, Melendez is a convicted felon, and has previously served 109 months in federal prison for drug and firearms violations. Melendez is the alleged leader of the Massachusetts chapter of the Almighty Vice Lords street gang. Several of the men arrested also allegedly have ties to the gang.
The defendants are charged by criminal complaint are:
- Junior Melendez, 39, of Worcester, arrested and charged with Hobbs Act conspiracy to interfere with commerce by robbery; conspiracy to use or carry a firearm during and in relation to a crime of violence; and conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base;
- Keith Johnson, 38, of Worcester, presently in state custody and charged federally with Hobbs Act conspiracy to interfere with commerce by robbery; conspiracy to use or carry a firearm during and in relation to a crime of violence; and felon in possession of a firearm;
- Shaun Walker, 42, of Worcester, arrested and charged with Hobbs Act conspiracy to interfere with commerce by robbery;
- Antoine Mack, 37, of Pawtucket, R.I., presently in state custody and charged federally with conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base and felon in possession of a firearm;
- Juan Rodriguez, 28, of Worcester, arrested and charged with conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base;
- Angel Cordova, 35, of Worcester, arrested and charged with conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base.
This morning, agents executed numerous search warrants, which resulted in the seizure of five firearms, 600 rounds of ammunition, approximately $10,000 cash, as well as various amounts of cocaine and crack cocaine.
The charge of Hobbs Act conspiracy to interfere with commerce by robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $1 million. The charge of conspiracy to use or carry a firearm during and in relation to a crime of violence provides for a sentence of no greater than ten years in prison, three years of supervised release and a fine of up to $250,000. The crime of being in felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on 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; Worcester Police Chief Steven M. Sargent; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Colonel Christopher Wagner, Superintendent of the New Hampshire State Police; Worcester Sheriff Lewis G. Evangelidis; Shrewsbury Police Chief James Hester, Jr.; and Pawtucket Police Chief Tina Goncalves, made the announcement today. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rockford Man Sentenced to More Than 11 Years in Prison for Attempted Robbery and Firearm ChargesRead the Press Release
ROCKFORD — A Rockford man was sentenced Tuesday by U.S. District Judge Philip G. Reinhard to 139 months in prison for attempted robbery and using, carrying, and brandishing a firearm during a crime of violence.
DARNELL LEAVY, 28, admitted in a written plea agreement that at approximately 7:00 p.m. on Nov. 5, 2015, he and others attempted to rob the Zake Convenience store, 824 7th St. in Rockford. As stated in Leavy's plea agreement, co-defendant RICKEY CLAYBRON, 33, of Rockford, entered the store first with a gun pointed at two clerks who were behind a glass enclosure. Leavy then entered and also began pointing a gun at the clerks. A third individual entered the store carrying a bag meant for the proceeds of the robbery. The employees of the store barricaded themselves in the glassed-in area where the registers were located. Leavy's plea agreement further states that Leavy tried to kick the door open, but was unsuccessful. In the meantime, Claybron came around the front of the glass enclosure and pointed his gun through the small hole in the front that is used to conduct business with customers, Leavy's plea agreement states. Eventually, Leavy and the other robbers gave up on the robbery and walked out of the store.
Leavy pleaded guilty to the charges on Feb. 22, 2019.
Leavy's sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Claybron is charged with one count of conspiracy to commit robbery, three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence. Also charged in the case is DEANDRE R. HAYWOOD, also known as "Duke," 28, of Rockford. Haywood is charged with one count of conspiracy to commit robbery, three counts of robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence. Claybron and Haywood have pleaded not guilty to the charges and are in custody pending trial. The public is reminded that an indictment contains only charges and is not evidence of guilt. Claybron and Haywood are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Reno Man Pleads Guilty to Possessing Nearly 4,800 Images and Videos of Child PornographyRead the Press Release
RENO, Nev. – A Reno man pleaded guilty today in federal court to possessing thousands of child pornography images and hundreds of videos, including prepubescent minors involved in sexually explicit conduct and sadistic and masochistic conduct, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Daren W. Phillips, 50, pleaded guilty to one count of possession of child pornography before United States District Judge Miranda Du. A sentencing hearing has been set for September 9, 2019.
Phillips admitted that, from 2016 to April 2018, he possessed 4,753 images and 538 videos of child pornography on his laptop computer. Some of the sexually explicit images and videos depicted sadistic and masochistic conduct. Other images and videos depicted prepubescent minors involved in sexually explicit conduct. Phillips admitted he possessed some of the child pornography on his laptop prior to his move from the Savannah, Georgia area to the Reno, Nevada area, and that he had accessed child pornography in Nevada as recently as April 9, 2018.
If the Court accepts the plea agreement, Phillips faces 63 months’ imprisonment and not less than 20 years and up to lifetime supervised release. In addition, under the Sex Offender Registration Notification Act (SORNA), Phillips will be required to register as a sex offender.
The case was investigated by the Northern Nevada Child Exploitation Task Force, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. Assistant United States Attorney James Keller is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Pottawattamie County Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on June 4, 2019, Luke Harrison Bird, II, age 31, was sentenced by United States District Court Judge Stephanie M. Rose for Prohibited Person in Possession of a Firearm. Bird was sentenced to a prison term of 90 months to be followed by a term of supervised release of three years. This sentence will run consecutively to Bird’s state prison sentence for a parole violation.
Bird was released from the Iowa State Penitentiary in January 2018 after serving state prison time for intimidation with a dangerous weapon, going armed with intent, felon in possession of a firearm, assault while participating in a felony, and eluding. On July 15, 2018, Iowa 4th Judicial District Probation Officers were conducting routine random home visits. The Probation Officer searched Bird’s room and located a loaded sawed off shotgun and ammunition.
This case was investigated by the Iowa 4th Judicial District Probation Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Council Bluffs Police Department and the Pottawattamie County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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.
Pittsburgh Man Sentenced to More than 5 Years in Prison for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, was sentenced today in federal court to 70 months’ imprisonment followed by three years’ supervised release on his conviction for violating the federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Daelon Hill-Johnson, 21, for the crimes of possession with intent to distribute a quantity of fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the Court, on or about April 5, 2017, Hill-Johnson possessed with the intent to distribute a quantity of fentanyl, a Schedule II controlled substance. Further, on that same date, Hill-Johnson possessed a Glock 9mm pistol in furtherance of his drug trafficking crime.
Assistant United States Attorneys Heidi M. Grogan and Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania Office of Attorney General, and the Wilkinsburg Police Department for the investigation leading to the successful prosecution of this case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pittsburgh Man Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of theft of government money, Social Security fraud, and Social Security representative payee misuse, United States Attorney Scott W. Brady announced today.
The four-count Indictment, returned June 4, named John Robert Mahoney, 53, as the sole defendant.
According to the Indictment presented to the court, from October 2015 to December, 2017, Mahoney, while acting as a representative payee for a beneficiary, converted to his own use over $1,000 in Title XVI Social Security benefits. Mahoney is further alleged to have falsely represented to the Social Security Administration that the beneficiary was residing with him and to have failed to disclose that the beneficiary was not residing with him. Additionally, the Indictment alleges that from October 2015 to April 2018, Mahoney converted Title II Social Security benefits intended for the use and benefit of another.
For the offense of theft of government property, the law provides for a maximum sentence of not more than 10 years in prison, a fine of $250,000, or both. For each offense of Social Security fraud and Social Security representative payee misuse, the law provides for a maximum sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The U.S. Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pasco County Man Who Threatened Iraqi-American Family Arrested and Charged with Criminal Civil Rights Violation, Obstruction of JusticeRead the Press Release
Tampa, Florida – David Allen Boileau (58, Holiday) has been arrested on a federal criminal complaint charging him with criminal interference with a right to fair housing and obstruction of justice though witness tampering. If convicted, Boileau faces a maximum penalty of 1 year in prison for the criminal civil rights violation and up to 20 years’ imprisonment for witness tampering.
According to the
complaint , over the course of several months, Boileau engaged in a course of conduct intended to threaten and intimidate an Iraqi-American family so that they would move out of their neighborhood and, more broadly, leave the United States. The family, now naturalized United States citizens, had immigrated to the United States from Iraq in 2015, through a refugee visa.According to court documents, Boileau threw screws at a car parked on the family’s property, broke into their house, and went through the family’s mail. Boileau also made several bigoted statements regarding the family’s national origin and religion, referring to them as “ISIS” and an “eyesore to this country,” further adding that he disliked people of Middle Eastern descent. Witnesses reported that on one occasion, Boileau yelled at the family to get out of his neighborhood and country. Boileau said that his goal was to “take care of that family” and to “clean up America.” Boileau also threatened to physically harm witnesses who reported his conduct to local law enforcement authorities.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Frank Murray.
Oral Roberts University to Pay over $300,000 for Allegedly Violating Ban on Incentive CompensationRead the Press Release
Oral Roberts University (ORU), based in Tulsa, Oklahoma, will pay $303,502 to resolve allegations under the False Claims Act of submitting false claims to the U.S. Department of Education in violation of the federal ban on incentive-based compensation, the Department of Justice announced.
Title IV of the Higher Education Act (HEA) prohibits any institution of higher education that receives federal student aid from compensating student recruiters with a commission, bonus, or other incentive payment based on the recruiters’ success in securing student enrollment. The incentive compensation ban protects students against admissions and recruitment practices that serve the financial interests of the recruiter rather than the educational needs of the student.
“The integrity of our system of higher education is founded on allowing students to make enrollment decisions based on their own educational interests,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will not allow these important decisions to be compromised by educational institutions offering recruiters financial incentives to enroll students.”
“Our higher education system should prioritize the educational interests of students, not the financial interests of schools and recruiters,” said U.S. Attorney Sherri A. Lydon for the District of South Carolina. “The U.S. Attorney’s Office will fight to protect against misuse of federal taxpayer dollars intended to serve students’ educational needs.”
The settlement resolves allegations that between 2014 and 2016, ORU hired Joined Inc. to recruit students to ORU. ORU allegedly compensated Joined in part with a share of the tuition that ORU received from the enrollment of recruited students, in violation of the prohibition on incentive compensation.
“The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. This settlement is an example of our commitment to this mission,” said Neil Sanchez, Special Agent in Charge of the U S. Department of Education Office of Inspector General’s Southern Regional Office. “The OIG will continue to work with our law enforcement colleagues and pursue allegations of violations of the False Claims Act in carrying out our important public service.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Maurice Shoe, the co-owner of Joined. The Act permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. Mr. Shoe will receive $45,000.
This matter was investigated by the U.S. Attorney’s Office for the District of South Carolina and the Civil Division’s Commercial Litigation Branch. Investigative assistance was provided by the Office of Inspector General of the Department of Education.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Shoe v. Oral Roberts University, No. 6:16-cv-01570 (D.S.C.).
Opioid Manufacturer Insys Therapeutics Agrees to Enter $225 Million Global Resolution of Criminal and Civil InvestigationsRead the Press Release
LOS ANGELES – Opioid manufacturer Insys Therapeutics agreed to a global resolution to settle the government’s separate criminal and civil investigations, the Department of Justice announced today.
As part of the civil resolution, Insys agreed to pay $195 million to settle allegations that it violated the False Claims Act. As part of the criminal resolution, Insys will enter into a deferred prosecution agreement with the government, Insys’s operating subsidiary will plead guilty to five counts of mail fraud, and the company will pay a $2 million fine and $28 million in forfeiture.
Both the criminal and civil investigations stemmed from Insys’s payment of kickbacks and other unlawful marketing practices in connection with the marketing of Subsys. Insys’s drug Subsys is a sublingual fentanyl spray, a powerful, but highly addictive, opioid painkiller. In 2012, Subsys was approved by the Food and Drug Administration for the treatment of persistent breakthrough pain in adult cancer patients who are already receiving, and tolerant to, around-the-clock opioid therapy.
In April 2018, the United States intervened in five qui tam lawsuits accusing Insys of violating the False Claims Act. In its complaint, the United States alleged that Insys, headquartered in Arizona, paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients. Many of these kickbacks took the form of speaker program payments for speeches to physicians that were, in fact, shams; jobs for the prescribers’ relatives and friends; and lavish meals and entertainment. The United States also alleged that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and lied to insurers about patients’ diagnoses in order to obtain reimbursement for Subsys prescriptions that had been written for Medicare and TRICARE beneficiaries.
Today, an information charging Insys and its operating subsidiary with five counts of mail fraud was filed by the United States Attorney’s Office for the District of Massachusetts. According to the charging document, from August 2012 to June 2015, Insys began using “speaker programs” purportedly to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners.
However, the programs were actually used as a vehicle to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions to patients and for increased dosage of those prescriptions. One practitioner targeted by Insys was a physician’s assistant who practiced with a pain clinic in Somersworth, New Hampshire. During the first year that Subsys was on the market, the physician’s assistant did not write any Subsys prescriptions for his patients. In May 2013, the physician’s assistant joined Insys’s sham speaker program knowing that it was a way to receive kickbacks for writing Subsys prescriptions. After joining the sham speaker program, the physician’s assistant wrote approximately 672 Subsys prescriptions for his patients – many of which were medically unnecessary – and in turn, received $44,000 in kickbacks from Insys.
As part of the criminal resolution, Insys agreed to a detailed statement of facts outlining its criminal conduct with respect to the illegal marketing of Subsys. Insys will enter into a five-year deferred prosecution agreement with the government, while Insys’s operating subsidiary will plead guilty to five counts of mail fraud pursuant to the plea agreement that will be filed in the District of Massachusetts. According to the terms of the criminal resolution, Insys will pay a criminal fine of $2 million and forfeiture of $28 million. The Court has not yet scheduled the plea hearing. Last month, five former Insys executives were convicted after trial of racketeering conspiracy in connection with the marketing of Subsys. In total, eight company executives have now been convicted in Boston for crimes relating to the illegal marketing of Subsys.
“Today’s settlement underscores our determination to hold opioid manufacturers accountable for pushing these highly addictive narcotics on the public via kickbacks to doctors and nurses, and other illegal means,” said United States Attorney for the Central District of California Nick Hanna. “Our goal is to bring about an end to the tragic epidemic of opioid addiction and to go after those who profit from that epidemic.”
“The Department of Justice is committed to taking steps to address the opioid epidemic,” said Principal Deputy Associate Attorney General Claire Murray. “Illegal conduct by pharmaceutical manufacturers, especially in the midst of the opioid crisis, will not be tolerated. We will continue to investigate and vigorously prosecute these types of allegations and hold opioid manufacturers accountable under the law.”
“The opioid epidemic is a plague that has devastated communities and ravaged families across this country,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice is committed to using the legal tools at our disposal to combat the illegal marketing and distribution of opioids, including fentanyl. Today’s settlement sends a strong message to pharmaceutical manufacturers that the kinds of illegal conduct that we have alleged in this case will not be tolerated. I want to assure the families and communities ravaged by this epidemic that the Department of Justice will continue to act forcefully to hold opioid manufacturers accountable for their actions.”
“The first step towards holding this pharmaceutical company responsible for its role in fueling the opioid epidemic was the conviction of top Insys executives,” said United States Attorney for the District of Massachusetts Andrew E. Lelling. “The second step is holding the company itself accountable for prolonged, illegal conduct that prioritized profits over patient health. This global resolution is the culmination of years of work by prosecutors and agents, and these successful prosecutions and civil enforcement efforts should be a model for confronting Corporate America’s role in the opioid epidemic.”
“The announced settlement is a vivid example of the Department of Defense's dogged efforts to protect the integrity of the U.S. military’s health care system and its beneficiaries” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney’s Office to combat health care fraud, especially when pharmaceutical companies use taxpayers' dollars to induce physicians with bribes and kickbacks to prescribe their drugs for unauthorized off-label usage that may very well endanger the recipient's health and safety.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold pharmaceutical companies accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“Paying bribes and providing other incentives to prescribe opioids with little regard to patient welfare surely signals a company is more concerned with profits than patients,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s settlement reaffirms our commitment to ensuring that companies pay a very heavy price for attacking vital government health programs.”
Insys entered into an unprecedented 5-year Corporate Integrity Agreement (CIA) and Conditional Exclusion Release with OIG. Because of the extensive cooperation provided by Insys in the prosecution of culpable individuals and its agreement to enhanced CIA requirements, OIG elected not to pursue exclusion of Insys at this time. The CIA includes several novel provisions, including enhanced material breach provisions, designed to protect Federal health care programs and beneficiaries. In addition, Insys admitted to a Statement of Facts and acknowledged that the facts provide a basis for permissive exclusion. OIG did not release its permissive exclusion authority, as it generally does for CIA parties in False Claims Act settlements. Instead, OIG will provide such a release only after Insys satisfies its obligations under the CIA.
The allegations resolved by the settlement stem from five lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The lawsuits are: United States, et al., ex rel. Guzman v. Insys Therapeutics, Inc., et al., 13-cv-5861; United States ex rel. Andersson v. Insys Therapeutics, Inc., 14-cv-9179; United States ex rel. John Doe and ABC, LLC v. Insys Therapeutics, Inc., et al., 14-cv-3488; United States ex rel. Erickson and Lueken v. Insys Therapeutics, Inc., 16-cv-2956; and United States ex rel. Jane Doe, et al. v. Insys Therapeutics, et al., 16-cv-7937. The whistleblowers’ share of the settlement announced today has not yet been determined.
These matters were handled by the United States Attorney’s Office for the Central District of California; the Department of Justice’s Civil Division; the United States Attorney’s Office for the District of Massachusetts; and the Department of Health and Human Services, Office of Inspector General.
Investigations were conducted by the Federal Bureau of Investigation, Boston Field Division; the Food and Drug Administration, Office of Regulatory Affairs; the Drug Enforcement Administration, New England Field Division; Department of Defense, Defense Criminal Investigative Service; U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; U.S. Postal Inspection Service’s Boston Division; United States Postal Service, Office of Inspector General, Northeast Area Field Office; Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division; Office of Personnel Management, Office of Inspector General; and the Defense Health Agency.
Opioid Manufacturer Insys Therapeutics Agrees to Enter $225 Million Global Resolution of Criminal and Civil InvestigationsRead the Press Release
Opioid manufacturer Insys Therapeutics agreed to a global resolution to settle the government’s separate criminal and civil investigations, the Department of Justice announced today. As part of the criminal resolution, Insys will enter into a deferred prosecution agreement with the government, Insys’s operating subsidiary will plead guilty to five counts of mail fraud, and the company will pay a $2 million fine and $28 million in forfeiture. As part of the civil resolution, Insys agreed to pay $195 million to settle allegations that it violated the False Claims Act. Both the criminal and civil investigations stemmed from Insys’s payment of kickbacks and other unlawful marketing practices in connection with the marketing of Subsys. Insys’s drug Subsys is a sublingual fentanyl spray, a powerful, but highly addictive, opioid painkiller. In 2012, Subsys was approved by the Food and Drug Administration for the treatment of persistent breakthrough pain in adult cancer patients who are already receiving, and tolerant to, around-the-clock opioid therapy.
Today, the U.S. Attorney’s Office for the District of Massachusetts filed an Information charging Insys and its operating subsidiary with five counts of mail fraud. According to the charging document, from August 2012 to June 2015, Insys began using “speaker programs” purportedly to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners. However, the programs were actually used as a vehicle to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions to patients and for increased dosage of those prescriptions. One practitioner targeted by Insys was a physician’s assistant who practiced with a pain clinic in Somersworth, New Hampshire. During the first year that Subsys was on the market, the physician’s assistant did not write any Subsys prescriptions for his patients. In May 2013, the physician’s assistant joined Insys’s sham speaker program knowing that it was a way to receive kickbacks for writing Subsys prescriptions. After joining the sham speaker program, the physician’s assistant wrote approximately 672 Subsys prescriptions for his patients – many of which were medically unnecessary – and in turn, received $44,000 in kickbacks from Insys.
As part of the criminal resolution, Insys agreed to a detailed statement of facts outlining its criminal conduct with respect to the illegal marketing of Subsys. Insys will enter into a five-year deferred prosecution agreement with the government, while Insys’s operating subsidiary will plead guilty to five counts of mail fraud pursuant to the plea agreement that will be filed in the District of Massachusetts. According to the terms of the criminal resolution, Insys will pay a criminal fine of $2 million and forfeiture of $28 million. The Court has not yet scheduled the plea hearing. Last month, five former Insys executives were convicted after trial of racketeering conspiracy in connection with the marketing of Subsys. In total, eight company executives have now been convicted in Boston for crimes relating to the illegal marketing of Subsys.
In April 2018, the United States intervened in five qui tam lawsuits accusing Insys of violating the civil False Claims Act. In its Complaint, the United States alleged that Insys, headquartered in Arizona, paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients. In addition to payments for sham speaker program speeches, the kickbacks also allegedly took the form of jobs for the prescribers’ relatives and friends, and lavish meals and entertainment. The United States also alleged that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and lied to insurers about patients’ diagnoses in order to obtain reimbursement for Subsys prescriptions that had been written for Medicare and TRICARE beneficiaries.
“The Department of Justice is committed to taking steps to address the opioid epidemic,” said Principal Deputy Associate Attorney General Claire Murray. “Illegal conduct by pharmaceutical manufacturers, especially in the midst of the opioid crisis, will not be tolerated. We will continue to investigate and vigorously prosecute these types of allegations and hold opioid manufacturers accountable under the law.”
“The opioid epidemic has devastated communities and ravaged families across this country,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice is committed to using the legal tools at our disposal to combat the illegal marketing and distribution of opioids, including fentanyl. Today’s settlement sends a strong message to pharmaceutical manufacturers that the kinds of illegal conduct that we have alleged in this case will not be tolerated. I want to assure the families and communities ravaged by this epidemic that the Department of Justice will hold opioid manufacturers accountable for their actions.”
“This criminal resolution today with Insys, coupled with the convictions of the eight executives, shows this Office’s resolve to hold both corporations and individuals accountable for their crimes,” said United States Attorney for the District of Massachusetts Andrew E. Lelling.“For years, Insys engaged in prolonged, illegal conduct that prioritized its profits over the health of the thousands of patients who relied on it. Today, the company is being held responsible for that and for its role in fueling the opioid epidemic. This global resolution is the culmination of years of work by prosecutors and agents, and these successful prosecutions and civil enforcement efforts should be a model for confronting corporate criminal activity.”
“Today’s settlement underscores our determination to hold opioid manufacturers accountable for pushing these highly addictive narcotics on the public via kickbacks to doctors and nurses, and other illegal means,” said United States Attorney for the Central District of California Nick Hanna. “Our goal is to bring about an end to the tragic epidemic of opioid addiction and to go after those who profit from that epidemic.”
“Paying bribes and providing other incentives to prescribe opioids with little regard to patient welfare surely signals a company is more concerned with profits than patients,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s settlement reaffirms our commitment to ensuring that companies pay a very heavy price for attacking vital government health programs.”
Insys entered into an unprecedented 5-year Corporate Integrity Agreement (CIA) and Conditional Exclusion Release with OIG. Because of the extensive cooperation provided by Insys in the prosecution of culpable individuals and its agreement to enhanced CIA requirements, OIG elected not to pursue exclusion of Insys at this time. The CIA includes several novel provisions, including enhanced material breach provisions, designed to protect Federal health care programs and beneficiaries. In addition, Insys admitted to a Statement of Facts and acknowledged that the facts provide a basis for permissive exclusion. OIG did not release its permissive exclusion authority, as it generally does for CIA parties in False Claims Act settlements. Instead, OIG will provide such a release only after Insys satisfies its obligations under the CIA.
“The announced settlement is a vivid example of the Department of Defense's dogged efforts to protect the integrity of the U.S. military’s health care system and its beneficiaries” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney’s Office to combat health care fraud, especially when pharmaceutical companies use taxpayers' dollars to induce physicians with bribes and kickbacks to prescribe their drugs for unauthorized off-label usage that may very well endanger the recipient's health and safety.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold pharmaceutical companies accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
The allegations resolved by the settlement stem from five lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The lawsuits are: United States, et al., ex rel. Guzman v. Insys Therapeutics, Inc., et al., 13-cv-5861; United States ex rel. Andersson v. Insys Therapeutics, Inc., 14-cv-9179; United States ex rel. John Doe and ABC, LLC v. Insys Therapeutics, Inc., et al., 14-cv-3488; United States ex rel. Erickson and Lueken v. Insys Therapeutics, Inc., 16-cv-2956; and United States ex rel. Jane Doe, et al. v. Insys Therapeutics, et al., 16-cv-7937. The whistleblowers’ share of the settlement announced today has not yet been determined.
These matters were handled by the Department of Justice’s Civil Division, the United States Attorney’s Office for the District of Massachusetts, the United States Attorney’s Office for the Central District of California, and the Department of Health and Human Services, Office of Inspector General. Investigations were conducted by the FBI, Boston Field Division; the Food and Drug Administration, Office of Regulatory Affairs; the Drug Enforcement Administration, New England Field Division; Department of Defense, Defense Criminal Investigative Service; U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; U.S. Postal Inspection Service’s Boston Division; United States Postal Service, Office of Inspector General, Northeast Area Field Office; Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division; Office of Personnel Management, Office of Inspector General; and the Defense Health Agency.
Omaha Man Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on June 4, 2019, William Labenz, age 38, was sentenced to five years in prison to be followed by five years of supervised release by United States District Court Judge Stephanie M. Rose for Conspiracy to Distribute Methamphetamine .
In late 2017, the Iowa Division of Narcotics Enforcement with the Federal Bureau of Investigation Safe Streets Task Force investigated a large drug trafficking organization responsible for transporting large quantities of methamphetamine to and around the western Iowa and eastern Nebraska areas.
On March 4, 2018, law enforcement conducted a traffic stop and the driver, William Labenz, was arrested for driving under suspension. Inside the vehicle’s trunk one quarter pound of methamphetamine was located. On April 26, 2018, in a search of Labenz’s home, additional methamphetamine, scales and baggies were found. The investigation revealed Labentz was transporting methamphetamine for the drug trafficking organization.
This case was investigated by Iowa Division of Narcotics Enforcement, Federal Bureau of Investigation’s Safe Streets Task Force, Omaha Police Department, Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Norwood Woman Charged with Distributing Synthetic Marijuana into State Correctional FacilitiesRead the Press Release
BOSTON – A Norwood woman was arrested this morning and charged in federal court in Worcester with distributing synthetic marijuana into state correctional facilities.
Caitlin Marcey, 27, was charged by criminal complaint with distribution of a controlled substance. Marcey was released on conditions following an initial appearance.
According to charging documents, on two separate occasions, Marcey mailed papers soaked in synthetic marijuana, or “K2,” to Massachusetts correctional facilities. Massachusetts jails combat the illegal introduction of synthetic marijuana –often referred to as “K2” – into the facilities. The most common means of doing so is by soaking or spraying synthetic marijuana onto documents and then transporting those documents, either in person or by mail, into the jail, where they can be smoked. It is common to attempt to include documents soaked in synthetic marijuana in mailings disguised as legal mail, as this mail is generally not subjected to rigorous screening due to attorney-client privilege.
In November 2018, investigators at the Souza Baranowksi Correctional Center (SBCC) in Lancaster, Mass., monitored recorded jail calls during which Marcey allegedly arranged for the delivery of synthetic marijuana. Investigators subsequently intercepted mail sent by Marcey that purport to be an attorney mailing to an SBCC inmate. The records inside the mailing tested positive for synthetic marijuana.
Similarly, in December 2018, Marcey was allegedly caught on U.S. Post Office security video mailing a package disguised as being sent by an attorney to an inmate at the Worcester County House of Corrections. The contents of that mailing also tested positive for the presence of synthetic marijuana.
The charge of distribution of a controlled substance provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on 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; Commissioner Carol Mici of the Massachusetts Department of Correction; Worcester County Sheriff Lew Evangelidis; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Sentenced to 100 Months in Heroin Conspiracy CaseRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that EUGENE MCGEE, age 28, of New Orleans, was sentenced today after previously pleading guilty for his role in a conspiracy to distribute heroin in the New Orleans metropolitan area.
According to court documents, on January 9, 2019, MCGEE pled guilty to Count One of the Indictment, which charged him and two other individuals with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin. The defendants were members of a drug conspiracy that distributed heroin throughout the New Orleans metropolitan area beginning from on or about June 2015 through June 2017. The investigation into this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration’s High-Intensity Drug Trafficking Area (HIDTA) group, including taps of cell phones used by Akeem Fleming to communicate with customers and other co-conspirators.
U.S. District Judge Martin L.C. Feldman sentenced MCGEE to 100 months imprisonment on the heroin distribution charge, to be followed by a 4-year term of supervised release. MCGEE was also ordered to pay restitution in the amount of $1,434.49 to the Jefferson Parish Sheriff’s Office for damages caused to law enforcement vehicles when he attempted to evade arrest on October 26, 2016.
On April 3, 2019, Judge Feldman sentenced MCGEE’s co-defendants, Akeem Fleming and Terrance Milton, to 131 and 60 months imprisonment, respectively.
U.S. Attorney Strasser praised the work of the HIDTA Task Force Group of the Drug Enforcement Administration in investigating this matter. Assistance was also provided by Narcotics Group IV at the Jefferson Parish Sheriff’s Office, Gretna Major Crimes Task Force, and Louisiana State Police. Assistant United States Attorneys Shirin Hakimzadeh and André Jones were in charge of the prosecution.
Nassau Pharmacist to Pay $100,000 for Submitting False Claims to Medicare and MedicaidRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith and New York State Attorney General Letitia James announced today that Cathy Grossman, the owner and pharmacist-in-charge of Nassau Pharmacy, Inc., will pay $100,000 to resolve allegations that she and Nassau Pharmacy violated the federal and New York False Claims Acts by billing the federal and state governments for prescription drugs that Grossman and her staff never dispensed.
“When pharmacists submit false claims to Medicare and Medicaid, hard-working taxpayers foot the bill,” said United States Attorney Jaquith. “We will continue to protect the public fisc and the integrity of our health care programs by holding health care professionals responsible when they line their pockets improperly.”
“Fraudulently billing Medicare and Medicaid for personal gain is both illegal and immoral,” said Attorney General Letitia James. “Not only did Cathy Grossman steal from government programs intended to support vulnerable populations, but she saddled taxpayers with the bills of this dishonest activity. We will continue to work to root out Medicaid fraud throughout New York State.”
As part of today’s settlement, Grossman admitted that, from March 2010 through March 2017, she submitted or caused others to submit false claims for payment to Medicare and Medicaid for prescription drugs that she and the staff at Nassau Pharmacy never dispensed. In some instances, she billed Medicare and Medicaid for drugs that patients never ordered or never picked up from Nassau Pharmacy. In other instances, Grossman billed the government for brand name drugs but dispensed to her patients less expensive generic alternatives.
“Health care professionals must be held to a high standard of ethical behavior,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”). “Along with our law enforcement partners, HHS-OIG will continue to ensure that those individuals and entities that bill federal health care programs do so in an honest manner.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $22,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 1:16-cv-1338.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, HHS-OIG, and the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Adam J. Katz and New York State was represented by Special Assistant Attorney General Jill D. Brenner.
Mishawaka, Indiana Man Sentenced to 41 Months in PrisonRead the Press Release
SOUTH BEND – James Kindig, age 53, of Mishawka, Indiana, was sentenced before United States District Court Judge Jon E. DeGuilio upon his plea of guilty to possession of child pornography, announced U.S. Attorney Kirsch.
Kindig was sentenced to 41 months in prison followed by 5 years of supervised release and ordered to pay $48,750 in restitution.
According to documents in this case, in November 2017 Kindig possessed approximately 472 images and 262 videos that portrayed child pornography. Some of these contained sadistic images and prepubescent children or children under the age of 12.
This case was investigated by FBI with assistance from the St. Joseph County High Tech Crimes Task Force. The case was handled by Assistant U.S. Attorney John Maciejczyk.
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Mingo County Woman Sentenced for Theft of Social Security Income BenefitsRead the Press Release
Defendant fraudulently obtained over $90,000
CHARLESTON, W.Va. – A Mingo County woman was sentenced to six months of federal incarceration for fraudulently obtaining Social Security Income benefits, announced United States Attorney Mike Stuart. Elizabeth Muncy, 43, of Kermit, Mingo County, West Virginia was further placed on supervised release for three years once she is released from custody. She was also ordered to pay restitution to the Social Security Administration in the amount of $91,683. United States Attorney Mike Stuart praised the work of the Social Security Administration-Office of Inspector General and the United States Social Security Administration.
“Stealing social security benefits is despicable – truly despicable,” said United States Attorney Mike Stuart. “I have no sympathy whatsoever for anyone ripping off social security and hard-working taxpayers by fraudulently stealing public benefits. It is truly a despicable, disgraceful act.”
Muncy applied for Title XVI Social Security benefits in 1987. These Social Security benefits are based on income and living arrangements, and create a duty on the recipient to report a change in income or living arrangements. In 2008, Muncy indicated that she was married, but claimed she was not residing with her spouse. In fact, Muncy was residing with her spouse and had been married and living together since 2006. Their combined income would have lowered the amount of money she was receiving every month from the Social Security Administration. From October 2006 through October 17, 2017, Muncy received $91,683 in Social Security benefits in excess of the amount she was due. On April 18, 2018, Muncy gave a detailed statement to federal investigators with the Office of Inspector General admitting that she was living with her spouse the entire time and knew that she was receiving money that she was not entitled to receive.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Erik S. Goes handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Milwaukee Man Indicted for Offenses Involving Heroin, Fentanyl, Cocaine, and FirearmsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that a federal grand jury had indicted Jonathan C. Copeland (age 57) for possession with intent to distribute at least 100 grams of heroin, at least 40 grams of fentanyl, cocaine, and marijuana. In addition, the indictment charges Copeland with possessing firearms in furtherance of his drug trafficking crime and possessing firearms after having been convicted of multiple felonies.
If convicted of the drug charge, Copeland faces a mandatory minimum of five years’ imprisonment with a maximum of 40 years in prison, a $5,000,000 fine, and at least 4 years on supervised release. If convicted of possessing firearms in furtherance of his drug trafficking, Copeland faces a mandatory minimum of five years and a maximum of life in prison, which must run consecutively to any other sentence. Finally, if convicted of being a felon in possession of a firearm, because his criminal history qualifies him as an Armed Career Criminal, Copeland faces a mandatory minimum of 15 years in prison.
The investigation of this case was conducted by the Federal Bureau of Investigation (FBI) Southeastern Wisconsin Regional Gang Task Force, which includes Task Force Officers from the Milwaukee Police Department – District Five. This case is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
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Mexican National Guilty of Transporting Illegal AliensRead the Press Release
BEAUMONT, Texas – A 25-year-old Mexican national illegally in the United States, has pleaded guilty to immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joel Sanchez-Guzman pleaded guilty to transporting illegal aliens and illegally reentering the United States after having been deported. The plea was entered today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on Feb. 16, 2019, law enforcement officers discovered Sanchez-Guzman transporting eight individuals he knew to be illegally in the United States. Further investigation revealed Sanchez-Guzman had been paid to transport the illegal aliens through Texas to the northeastern United States. They also determined that Sanchez-Guzman had transported illegal aliens in this manner on prior occasions.
Under the federal statute, Sanchez-Guzman faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office
This case was investigated by Homeland Security Investigations/Immigration and Customs Enforcement HSI/ICE, the Nacogdoches Police Department and the Lufkin Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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Mexican National Charged with Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JOSE LUIS RAMIREZ-HERNANDEZ, age 38, a citizen of Mexico, was charged Monday, June 3, 2019 in a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the bill of information, JOSE LUIS RAMIREZ-HERNANDEZ reentered the United States in or about 2018, after having been previously removed therefrom on or about September 20, 2017.
If convicted, JOSE LUIS RAMIREZ-HERNANDEZ faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Mandeville Resident and Former Department of Energy Contractor Charged with Accessing a Protected Computer without Authorization and Recklessly Causing DamageRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GARY PETER SIMON, JR., age 56, a resident of Mandeville, Louisiana, was charged today in a one-count bill of information with intentionally accessing a protected computer without authorization and recklessly causing damage resulting in loss of more than $5,000 during one year, in violation of 18 U.S.C. '' 1030(a)(5)(B) and 1030(c)(4)(A).
According to the bill of information, on about October 21, 2018, SIMON, intentionally accessed and attempted to access a protected computer without authorization, and as a result of such conduct, recklessly caused damage, namely loss to the United States Department of Energy-Strategic Petroleum Reserve Office, in the amount of at least $5,000.
If convicted, SIMON faces a maximum term of five (5) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, is in charge of the prosecution.
Man Pleads Guilty to Assaulting and Attempting to Kill Federal Agents in Delaware CountyRead the Press Release
A man who fired his weapon at FBI agents attempting to arrest him in Delaware County, in October 2018, pleaded guilty Wednesday to assaulting federal officers, announced U.S. Attorney Trent Shores.
Brian Kirk Marshall, 50, of Pattonsburg, Missouri, pleaded guilty in U.S. District Court to assaulting federal officers, obstruction of justice by attempting to kill witnesses, and carrying, using and discharging a firearm during and in relation to a crime of violence. U.S. District Judge Claire V. Eagan accepted Marshall’s plea and set sentencing for Aug. 27, 2019.
“The patience, professionalism, and excellence of the FBI Special Weapons and Tactics Team were on full display in the arrest of Brian Marshall, a self-described “cop killer.” Marshall was a fugitive from justice hiding in rural northeastern Oklahoma. For more than 40 minutes, an FBI negotiator tried to talk Marshall into surrendering peacefully. Instead, Marshall opened fire on the FBI agents. Marshall was ultimately taken into custody,” said U.S. Attorney Shores. “Today’s change of plea is a culmination of months of diligent work by FBI special agents and federal prosecutors. When criminals shoot at law enforcement, they can expect to receive the full weight of a federal prosecution.”
During the plea hearing, Marshall admitted to firing shots at FBI agents after the FBI SWAT Team had appropriately identified themselves and attempted to call all occupants safely out of the residence. The FBI returned fire in accordance with protocol, resulting in Marshall surrendering to authorities. In total, Marshall admitted to firing eight rounds at FBI agents. At the time of the incident, the FBI was attempting to execute a search warrant for Marshall’s Delaware County residence; as well as an arrest warrant for interstate communication of threats Marshall allegedly made, in which he threatened to kill police officers.
Marshall remains in the custody of the U.S. Marshals Service while awaiting sentencing.
The FBI is the investigative agency. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Man Convicted of Hope Mills and Fayetteville RobberiesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that, EDWARD MOORE, JR., of Fayetteville, North Carolina, was convicted in federal court following a two-day jury trial before Chief United States District Judge Terrence W. Boyle. MOORE was convicted of interference with commerce by robbery, 2-counts of armed bank robbery, 3-counts of discharging a firearm in furtherance of a crime of violence, and 4-counts of possession of firearm by a convicted felon.
The jury heard evidence that MOORE robbed the One Main Financial Bank in Fayetteville and a Bank of America in Hope Mills twice. During each of the robberies MOORE fired a shot into the ceiling and pointed the firearm at customers and employees and stole approximately $64,000.
MOORE faces a minimum sentence of 75 years imprisonment and a maximum of life imprisonment at his sentencing date to be determined.
The prosecution of MOORE is part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this enforcement operation was conducted by the Fayetteville Police Department, the Hope Mills Police Department, the Cumberland County Sheriff’s Office and the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Barbara Kocher and Gabriel Diaz represented the government.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on June 5, 2019, Nicole L. Enck, 35, of Lincoln, Nebraska was sentenced to 73 months’ imprisonment for conspiring to distribute 500 grams or more of a mixture containing methamphetamine. Following the prison term, Enck will serve three years on supervised release. Chief United States District Court Judge John M. Gerrard presided over this case.
Enck and a few other people worked together to sell methamphetamine between January 1, 2017, and August 31, 2017.
This case was investigated by the Lincoln/Lancaster County Drug Task Force, which is composed of members from the Lincoln Police Department, the Lancaster County Sheriff’s Department, the Nebraska State Patrol, and the University of Nebraska Police Department.
Lexington Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on June 5, 2019, Jose Donato, 25, of Lexington, Nebraska was sentenced to 87 months in prison for conspiracy to distribute more than 50 grams of pure methamphetamine. Following the prison term, Donato will serve three years on supervised release. The Honorable John M. Gerrard presided over this case.
Between July 1, 2017 and September 30, 2018, with the assistance of a confidential informant, law enforcement officers completed a series of nine controlled purchases of methamphetamine from Donato and his co-defendants, Rodrigo Bolanos and Arturo Garcia.
This case was investigated by Central Nebraska Drug and Safe Streets Task Force, which his composed of members from the Federal Bureau of Investigation, the Department of Homeland Security, the Nebraska State Patrol, the Grand Island Police Department, the Hall County Sheriff’s Department, the Adams County Sheriff’s Department, the Hastings Police Department, and the Kearney Police Department.
Leader of Bronx Drug Distribution Organization Sentenced to 188 Months in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that HECTOR PALERMO was sentenced today by United States District Judge Gregory H. Woods to 188 months in prison for leading a drug trafficking conspiracy that operated in the Hunts Point section of the Bronx. PALERMO pled guilty before U.S. Magistrate Judge Henry B. Pitman on November 19, 2018.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Today’s sentence sends a message that destructive drug trafficking in our communities will not be tolerated. We continue our daily work with our law enforcement partners to keep the streets free of dangerous narcotics.”
According to the allegations in the Indictment, and statements made in court filings and during court proceedings:
Between approximately 2014 and 2017, PALERMO was one of the leaders of a violent drug trafficking organization that controlled the distribution of large amounts of crack cocaine in the Hunts Point section of the Bronx. PALERMO managed all aspects of the organization, from the preparation of narcotics to the supervision of individuals who conducted hand-to-hand sales of narcotics.
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In addition to his prison sentence, PALERMO, 37, was sentenced to five years of supervised release.
Mr. Berman praised the excellent work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, and the New York City Police Department. Mr. Berman also thanked the Bronx County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Sarah Krissoff is in charge of the prosecution.
Lawrence Man Sentenced to 170 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Julio Pizzini, 25, of Lawrence, Massachusetts, was sentenced on Tuesday to serve 170 months in prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, a drug trafficking organization, which authorities allege was led by Sergio Martinez, employed Pizzini and others to sell fentanyl to customers from various New England states, including New Hampshire. On each date that Pizzini worked, the Martinez organization provided him with at least one 200-gram bag of fentanyl and expected him to sell it and return approximately $6,000 in proceeds.
Pizzini previously pleaded guilty on February 15, 2019.
“Fentanyl trafficking is a crime that has had deadly consequences for many citizens of New Hampshire,” said U.S. Attorney Murray. “The transportation of illegal drugs into the Granite State must be stopped. In order to save lives, we will continue to work closely with all of our law enforcement partners to identify, prosecute, and incarcerate those who are responsible for distributing this dangerous substance.”
“Those individuals who choose to distribute fentanyl in our communities endanger the lives of their customers and the residents of our communities,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence holds Mr. Pizzini accountable for his actions. We will continue to work with our law enforcement partners to hold those who distribute fentanyl accountable for the drug-related offenses they have committed.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant U.S. Attorneys Georgiana L. Konesky and Seth R. Aframe.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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LaVista, Neb.Woman Sentenced to Prison for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on June 4, 2019, Jessica L. Snavely, age 26, was sentenced by United States District Court Judge Stephanie M. Rose for Conspiracy to Distribute Methamphetamine. Snavely was sentenced to ten years in prison to be followed by five years of supervised release.
In late 2017, the Iowa Division of Narcotics Enforcement with the Federal Bureau of Investigation Safe Streets Task Force investigated a large drug trafficking organization responsible for transporting large quantities of methamphetamine to and around western Iowa and eastern Nebraska. During the investigation, law enforcement received information that a large amount of methamphetamine was distributed out of a motel in Council Bluffs.
On April 26, 2019, law enforcement searched a room at the Red Roof Inn in Council Bluffs and recovered over a pound and a half of methamphetamine, along with a stolen handgun and other drug trafficking paraphernalia. It was determined Jessica Snavely received and distributed methamphetamine from the Red Roof Inn motel room.
This case was investigated by the Iowa Division of Narcotics Enforcement, Federal Bureau of Investigation’s Safe Streets Task Force, Omaha Police Department, Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Kenner Woman Charged with Failure to Pay Employment TaxesRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced yesterday that a two-count Bill of Information was filed against defendant MARTHA BUEZO MARTINEZ, age 48, of Kenner, LA, for failing to account for and pay over employment taxes to the Internal Revenue Service, in violation of Title 26, United States Code, Section 7202. MARTINEZ faces a maximum term of imprisonment of five (5) years, a $10,000 fine, three years supervised release following any term of imprisonment, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that a Bill of Information is merely an accusation and that the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigation in investigating this matter. Assistant United States Attorney Duane A. Evans is prosecuting the case.
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KC Woman Sentenced for Fraud Scheme, ID TheftRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman was sentenced in federal court today for a fraud scheme in which she used stolen identity information to apply for Supplemental Nutrition Assistance Program (SNAP) benefits, then sold the Electronic Benefit Transfer (EBT) cards to others.
Eibony Bowers, 36, was sentenced by U.S. District Judge Greg Kays to six years and two months in federal prison without parole. The court also ordered Bowers to pay $51,685 in restitution.
On Nov. 27, 2018, Bowers pleaded guilty to one count of mail fraud, two counts of misusing a Social Security number, and one count of aggravated identity theft.
Bowers began receiving Supplemental Nutrition Assistance Program (SNAP) benefits for herself and her four children in 2014. SNAP benefits assist low-income individuals in purchasing groceries to feed themselves and their families. SNAP recipients receive Electronic Benefit Transfer (EBT) cards preloaded with approved benefits, and can then utilize the EBT cards to purchase food.
Bowers admitted that she submitted 11 additional applications for SNAP benefits under the names of other persons from March to December 2016. Nine of those applications used the personal identity information (including fraudulent copies of driver’s licenses and Social Security cards) of actual persons without their consent. Two of those applications used the personal identity information of fictitious individuals. Each application included five to seven additional household members. During those nine months, she collected a total of $51,685 in SNAP benefits.
Bowers frequently communicated with state officials though three fax accounts she opened and operated through j2 Cloud Services. Based on the fraudulent information she provided to the Department of Social Services, the agency approved SNAP benefits for all of the applications. After approving each application, the Department of Social Services mailed an EBT card to addresses Bowers provided.
Bowers then sold the EBT cards with the SNAP benefits to other individuals. Buyers paid 50 cents on the dollar for the benefits preloaded on the cards, then returned them after making their purchases.
According to court documents, Bowers was submitting one fraudulent application each month from March to August 2016, then began submitting four a month in September 2016. Her fraud scheme was stopped when law enforcement officers executed a search warrant on her hotel room on Dec. 1, 2016. During the execution of the search warrant, officers found her cell phone, a tablet, paperwork with various names and Social Security numbers, receipts with transactions linked to various EBT cards, credit cards, six EBT cards, and multiple Social Security cards.This case was prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the Missouri Department of Social Services.
Justice Department Reaches Agreement with City of Eastpointe, Michigan, Under the Voting Rights ActRead the Press Release
The Department of Justice announced today that it has entered into an agreement to settle a voting rights lawsuit with the City of Eastpointe, Michigan. The Department’s lawsuit challenges the method of electing the city council in Eastpointe under Section 2 of the Voting Rights Act. Under this agreement, the city will change its method of electing its city council to ensure compliance with the protections of Section 2.
The agreement, which must be approved by the federal district court in Detroit, was entered into by the parties to resolve the Department’s lawsuit with the City of Eastpointe filed in 2017. The Department’s complaint alleges the current method of election for the Eastpointe City Council results in black citizens in Eastpointe having less opportunity than white citizens to participate in the political process and to elect candidates of their choice to the city council, in violation of Section 2 of the Voting Rights Act.
Subject to court approval, the agreement will alter the method of electing the Eastpointe City Council, from a traditional at-large method of election to one that utilizes ranked choice voting beginning with the November 2019 election. Under the agreement, the city councilmembers will continue to be elected on a citywide basis, but under the new ranked choice voting system, Eastpointe voters will rank city council candidates in their order of preference. The agreement provides that the city will conduct a robust voter education program for the new method of election.
“This agreement reflects the Department’s resolute commitment to vigorous enforcement of the Voting Rights Act to protect the right to vote in all elections,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We are pleased that the City of Eastpointe has worked cooperatively with the Department to adopt a solution that safeguards the right to vote.”
“Voting is the cornerstone of our Republic, and the Justice Department is committed to protecting and strengthening the right to vote,” stated United States Attorney for the Eastern District of Michigan Matthew Schneider. “This settlement reflects the desire of all of the parties to ensure the citizens of Eastpointe have a meaningful opportunity to choose their elected representatives.”
More information about the Voting Rights Act and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section.
Justice Department Reaches Agreement with City of Eastpointe, Michigan, Under the Voting Rights ActRead the Press Release
The Department of Justice announced today that it has entered into an agreement to settle a voting rights lawsuit with the City of Eastpointe, Michigan. The Department’s lawsuit challenges the method of electing the city council in Eastpointe under Section 2 of the Voting Rights Act. Under this agreement, the city will change its method of electing its city council to ensure compliance with the protections of Section 2.
The agreement, which must be approved by the federal district court in Detroit, was entered into by the parties to resolve the Department’s lawsuit with the City of Eastpointe filed in 2017. The Department’s complaint alleges the current method of election for the Eastpointe City Council results in black citizens in Eastpointe having less opportunity than white citizens to participate in the political process and to elect candidates of their choice to the city council, in violation of Section 2 of the Voting Rights Act.
Subject to court approval, the agreement will alter the method of electing the Eastpointe City Council, from a traditional at-large method of election to one that utilizes ranked choice voting beginning with the November 2019 election. Under the agreement, the city councilmembers will continue to be elected on a citywide basis, but under the new ranked choice voting system, Eastpointe voters will rank city council candidates in their order of preference. The agreement provides that the city will conduct a robust voter education program for the new method of election.
“This agreement reflects the Department’s resolute commitment to vigorous enforcement of the Voting Rights Act to protect the right to vote in all elections,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We are pleased that the City of Eastpointe has worked cooperatively with the Department to adopt a solution that safeguards the right to vote.”
“Voting is the cornerstone of our Republic, and the Justice Department is committed to protecting and strengthening the right to vote,” stated United States Attorney for the Eastern District of Michigan Matthew Schneider. “This settlement reflects the desire of all of the parties to ensure the citizens of Eastpointe have a meaningful opportunity to choose their elected representatives.”
More information about the Voting Rights Act and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section.
Johnstown Man Pleads Guilty to Heroin and Fentanyl ChargeRead the Press Release
ALBANY, NEW YORK – Victor M. Diaz, age 29, of Johnstown, New York, pled guilty yesterday to possessing and intending to distribute more than 100 grams of heroin mixed with fentanyl.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and City of Amsterdam Police Chief Gregory J. Culick.
On March 7, 2019, DEA agents and other law enforcement officers executed a federal warrant at Diaz’s Johnstown residence. They found him home, alone, and sitting near a suitcase containing 1,740 small glassine bags. The bags contained a total of approximately 89 grams of heroin mixed with fentanyl. Law enforcement also found, in a plastic container, an additional 53.5 grams of heroin mixed with fentanyl.
Diaz faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life, when he is sentenced on October 4, 2019 by Senior United States District Judge Norman A. Mordue. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and the Amsterdam Police Department, with assistance from the New York State Police and the Gloversville Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Insys Therapeutics Agrees to Enter into $225 Million Global Resolution of Criminal and Civil InvestigationsRead the Press Release
BOSTON – Opioid manufacturer Insys Therapeutics agreed to a global resolution to settle the government’s separate criminal and civil investigations, the Department of Justice announced today. As part of the criminal resolution, Insys will enter into a deferred prosecution agreement with the government, Insys’s operating subsidiary will plead guilty to five counts of mail fraud, and the company will pay a $2 million fine and $28 million in forfeiture. As part of the civil resolution, Insys agreed to pay $195 million to settle allegations that it violated the False Claims Act.
Both the criminal and civil investigations stemmed from Insys’s payment of kickbacks and other unlawful marketing practices in connection with the marketing of Subsys. Insys’s drug Subsys is a sublingual fentanyl spray, a powerful, but highly addictive, opioid painkiller. In 2012, Subsys was approved by the Food and Drug Administration for the treatment of persistent breakthrough pain in adult cancer patients who are already receiving, and tolerant to, around-the-clock opioid therapy.
Today, the U.S. Attorney’s Office for the District of Massachusetts filed an Information charging Insys and its operating subsidiary with five counts of mail fraud. According to the charging document, from August 2012 to June 2015, Insys began using “speaker programs” purportedly to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners. However, the programs were actually used as a vehicle to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions to patients and for increased dosage of those prescriptions. One practitioner targeted by Insys was a physician’s assistant who practiced with a pain clinic in Somersworth, N.H. During the first year that Subsys was on the market, the physician’s assistant did not write any Subsys prescriptions for his patients. In May 2013, the physician’s assistant joined Insys’s sham speaker program knowing that it was a way to receive kickbacks for writing Subsys prescriptions. After joining the sham speaker program, the physician’s assistant wrote approximately 672 Subsys prescriptions for his patients – many of which were medically unnecessary – and in turn, received $44,000 in kickbacks from Insys.
As part of the criminal resolution, Insys agreed to a detailed statement of facts outlining its criminal conduct with respect to the illegal marketing of Subsys. Insys will enter into a five-year deferred prosecution agreement, while Insys’s operating subsidiary will plead guilty to five counts of mail fraud pursuant to the plea agreement that will be filed in the District of Massachusetts. According to the terms of the criminal resolution, Insys will pay a criminal fine of $2 million and forfeiture of $28 million. The Court has not yet scheduled the plea hearing. Last month, five former Insys executives were convicted after trial of racketeering conspiracy in connection with the marketing of Subsys. In total, eight company executives have now been convicted by the U.S. Attorney’s Office in Massachusetts for crimes relating to the illegal marketing of Subsys.
In April 2018, the United States intervened in five qui tam lawsuits accusing Insys of violating the False Claims Act. In its civil complaint, the United States alleged that Insys, headquartered in Arizona, paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients. Many of these kickbacks took the form of speaker program payments for speeches to physicians that were, in fact, shams; jobs for the prescribers’ relatives and friends; and lavish meals and entertainment. The United States also alleged that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and lied to insurers about patients’ diagnoses in order to obtain reimbursement for Subsys prescriptions that had been written for Medicare and TRICARE beneficiaries.
Insys also entered into a 5-year Corporate Integrity Agreement (CIA) and Conditional Exclusion Release with the U.S. Department of Health and Human Services, Office of Inspector General. Because of the extensive cooperation provided by Insys in the prosecution of culpable individuals and its agreement to enhanced CIA requirements, OIG elected not to pursue exclusion of Insys at this time. The CIA includes several novel provisions, including enhanced material breach provisions, designed to protect federal health care programs and beneficiaries. In addition, Insys admitted to a Statement of Facts and acknowledged that the facts provide a basis for permissive exclusion. OIG did not release its permissive exclusion authority, as it generally does for CIA parties in False Claims Act settlements. Instead, OIG will provide such a release only after Insys satisfies its obligations under the CIA.
“This criminal resolution today with Insys, coupled with the convictions of the 8 executives, shows this Office’s resolve to hold both corporations and individuals accountable for their crimes,” said United States Attorney for the District of Massachusetts Andrew E. Lelling. “For years, Insys engaged in prolonged, illegal conduct that prioritized its profits over the health of the thousands of patients who relied on it. Today, the company is being held responsible for that and for its role in fueling the opioid epidemic. This global resolution is the culmination of years of work by prosecutors and agents, and these successful prosecutions and civil enforcement efforts should be a model for confronting corporate criminal activity.”
“The opioid epidemic is a plague that has devastated communities and ravaged families across this country,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice is committed to using the legal tools at our disposal to combat the illegal marketing and distribution of opioids, including fentanyl. Today’s settlement sends a strong message to pharmaceutical manufacturers that the kinds of illegal conduct that we have alleged in this case will not be tolerated. I want to assure the families and communities ravaged by this epidemic that the Department of Justice will continue to act forcefully to hold opioid manufacturers accountable for their actions.”
“Today’s settlement underscores our determination to hold opioid manufacturers accountable for pushing these highly addictive narcotics on the public via kickbacks to doctors and nurses, and other illegal means,” said United States Attorney for the Central District of California Nick Hanna. “Our goal is to bring about an end to the tragic epidemic of opioid addiction and to go after those who profit from that epidemic.”
“Paying bribes and providing other incentives to prescribe opioids with little regard to patient welfare surely signals a company is more concerned with profits than patients,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s settlement reaffirms our commitment to ensuring that companies pay a very heavy price for attacking vital government health programs.”
“The announced settlement is a vivid example of the Department of Defense's dogged efforts to protect the integrity of the U.S. military’s health care system and its beneficiaries,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney’s Office to combat health care fraud, especially when pharmaceutical companies use taxpayers’ dollars to induce physicians with bribes and kickbacks to prescribe their drugs for unauthorized off-label usage that may very well endanger the recipient's health and safety.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold pharmaceutical companies accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
The allegations resolved by the civil settlement stem from five lawsuits that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims and share in any recovery. The lawsuits are: United States, et al., ex rel. Guzman v. Insys Therapeutics, Inc., et al., 13-cv-5861; United States ex rel. Andersson v. Insys Therapeutics, Inc., 14-cv-9179; United States ex rel. John Doe and ABC, LLC v. Insys Therapeutics, Inc., et al., 14-cv-3488; United States ex rel. Erickson and Lueken v. Insys Therapeutics, Inc., 16-cv-2956; and United States ex rel. Jane Doe, et al. v. Insys Therapeutics, et al., 16-cv-7937. The whistleblowers’ share of the settlement announced today has not yet been determined.
These matters were handled by the United States Attorney’s Office for the District of Massachusetts; the Justice Department’s Civil Division; the United States Attorney’s Office for the Central District of California; and the Department of Health and Human Services, Office of Inspector General. Investigations were conducted by the Federal Bureau of Investigation, Boston Field Division; the Food and Drug Administration, Office of Regulatory Affairs; the Drug Enforcement Administration, New England Field Division; Department of Defense, Defense Criminal Investigative Service; U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; U.S. Postal Inspection Service’s Boston Division; United States Postal Service, Office of Inspector General, Northeast Area Field Office; Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division; Office of Personnel Management, Office of Inspector General; and the Defense Health Agency.
Indictment: Defendants Went Shopping with Counterfeit $100 BillsRead the Press Release
KANSAS CITY, KAN. – Four defendants were charged today in an indictment alleging they “washed” $1 bills to produce counterfeit $100 bills that they passed during a shopping spree, U.S. Attorney Stephen McAllister said.
Steven Shane Escamilla, 30, Laguna Hills, Calif., Courtney Campbell, 37, Bouse, Ariz., John Sebestyen, 50, Mission Viejo, Calif., and Jonathan Washington, 33, no known address, are charged with conspiracy to commit counterfeiting. In addition, Escamilla is charged with one count of possessing counterfeit bills and one count of possessing methamphetamine; Campbell is charged with one count of possessing counterfeit bills and one count of possessing methamphetamine; Sebestyen is charged with one count of possessing counterfeit bills and one count of possessing methamphetamine and heroin; and Washington is charged with one count of possession with intent to distribute methamphetamine.
According to documents filed with the court, an employee at a hotel in Overland Park contacted police to report that the defendants were acting suspiciously. They deposited trash in containers away from their rooms that contained evidence of criminal activity.
The indictment alleges that in some cases defendants purchased goods with counterfeit cash and then returned the goods for a refund at another branch of the same store.
Upon conviction, the crimes carry the following penalties:
Conspiracy: Up to five years in federal prison and a fine up to $250,000.
Possessing counterfeit cash: Up to 20 years and a fine up to $250,000.
Possession with intent to distribute methamphetamine: Not less than five years and not more than 40 years and a fine up to $4 million.
Possessing a controlled substance: Up to a year and a fine up to $1,000.
The Overland Park Police Department and the U.S. Secret Service investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran National Charged with Smuggling Child into the U.S.Read the Press Release
McALLEN, Texas - A 24-year-old illegal alien from Honduras has been indicted on charges of human smuggling and making a false family claim, announced U.S. Attorney Ryan K. Patrick.
Starlin Alfredo Martinez-Morales was originally charged by criminal complaint May 10, 2019. Today, a federal grand jury returned the two-count indictment. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future.
On May 7, 2019, Martinez-Morales allegedly crossed the Rio Grande River near Los Ebanos with a three-year-old child, also of Honduras. Martinez claimed to be traveling with his son and presented a fraudulent birth certificate for the juvenile, according to the charges.
The criminal complaint indicates he was not the father of the child and only traveling with him to successfully gain entry into the United States.
He faces up to five years in federal prison if convicted of either of the charges.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hoboken-Based Accountant Admits Tax EvasionRead the Press Release
NEWARK, N.J. – A Hoboken-based accountant today admitted failing to pay more than $914,000 in taxes on income generated from his accounting firm and various rental properties he owned, U.S. Attorney Craig Carpenito announced.
Louis Picardo, 64, of Hoboken, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler to one count of an information charging him with federal income tax evasion.
According to documents filed in this case and statements made in court:Picardo served as the tax collector in Hoboken between 1973 and 2008 and was a partner in Cannarozzi & Picardo LLC, a Hoboken-based accounting firm. Picardo also was a member of multiple entities (the “Picardo Entities”) that managed both commercial and residential properties in Hudson County.
Picardo failed to report $3,725,853 in taxable income that he collected from Cannarozzi & Picardo and the Picardo Entities on federal income tax returns he filed with the IRS for the tax years 2012 to 2015, resulting in a tax loss to the United States of $914,908.
The tax evasion charge is punishable by a maximum penalty of five years in prison and potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 25, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Peter Willis Esq., Jersey City
Guatemalan National Man Pleads Guilty to Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Guatemalan national man pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Baltazer Victorino-Tulul-Ajqui, 30, will be sentenced on September 11, 2019. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“Two prior removals,” said United States Attorney Mike Stuart. “We will keep sending line skippers back until they enter the country the right way.”
On May 1, 2019, Tulul-Ajqui was found in Charleston, Kanawha County, West Virginia by ICE agents who received a tip that he was working illegally in the United States. ICE agents located Tulul-Ajqui’s residence and arrested him when he confirmed that he was in the United States illegally. Tulul-Ajqui had no identification documents permitting him legal status in the United States.
Fingerprinting matched Tulul-Ajqui to two prior removals from the United States in 2010 and 2015. In both cases, Tulul-Ajqui was found by immigration judges to be in the United States illegally and he was deported to Guatemala. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Tulul-Ajqui further admitted to ICE agents that he was a Guatemalan citizen.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
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Guatemalan National Guilty of Transporting Illegal AliensRead the Press Release
BEAUMONT, Texas – A 27-year-old Guatemalan national illegally in the United States, has pleaded guilty to immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jorge Gonzalez-Ramirez pleaded guilty to transporting illegal aliens and illegally reentering the United States. The plea was entered today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on Feb. 12, 2019, Gonzalez-Ramirez was stopped for a traffic violation in Corrigan, Texas. During the traffic stop, it was discovered that Gonzalez-Ramirez and his six passengers were all in the United States illegally. Among the passengers, was a seven-year-old child traveling with a purported relative, without proper safety restraints. Federal immigration agents arrived at the Corrigan Police Department and took custody of all individuals and transported them to the Montgomery Processing Center in Conroe, Texas. Their investigation determined that some of the passengers, including the minor, had traveled through Mexico from Guatemala, crossed into the United States illegally, and then illegally transported to Houston. Gonzalez-Ramirez admitted that he picked up the illegal aliens from an apartment in Houston and was promised money for transporting them. Gonzalez-Ramirez had previously been deported from the United States to Guatemala in March 2011, and had reentered the United States illegally.
Under federal statutes, Gonzalez-Ramirez faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentence will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office
This case was investigated by Homeland Security Investigations/Immigration, Customs Enforcement HSI/ICE, and the Corrigan Police Department, and prosecuted by Assistant U.S. Attorney Randall L. Fluke and Special Assistant U.S. Attorney Tommy Coleman.
Groveton Woman Sentenced to 65 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Meredith Willey, 38, of Groveton, New Hampshire, was sentenced on Tuesday to serve 65 months in prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 1, 2018, an individual intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase 250 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed a known drug trafficker get in the back seat of the car and exit a few minutes later. The vehicle left Massachusetts and agents followed it directly to New Hampshire.
The agents informed a New Hampshire State Trooper patrolling Interstate Route 93 about their surveillance observations. The trooper stopped the vehicle for traffic violations and identified Willey as the driver. Willey subsequently admitted that she and her co-conspirator went to Lawrence to buy “dope.” Willey consented to a search of the car and signed a consent to search form. The troopers found a hidden compartment containing approximately 240 grams of fentanyl. Willey admitted that she and the co-conspirator purchased fentanyl in Lawrence and resold the drug in New Hampshire. After a consent search of the defendant’s and her co-conspirator’s residence, law enforcement seized $11,000 in drug proceeds and five firearms.
Willey previously pleaded guilty on September 24, 2018.
“Interstate fentanyl traffickers will be arrested, prosecuted and sentenced to prison terms,” said U.S. Attorney Murray. “The law enforcement community in New Hampshire is united in its determination to stop the flow of fentanyl into the Granite State. By aggressively prosecuting the traffickers who bring this deadly drug into New Hampshire, we are seeking to protect all of our state’s citizens.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Ms. Willey accountable for her crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
These indictments have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Chippewa County Man Charged with Drug & Gun Crimes
Joshua Stein, 29, Cornell, Wisconsin, is charged with three counts of distributing methamphetamine, with one count alleging distribution of 50 grams or more; one count of possessing 50 grams or more of methamphetamine with the intent to distribute; and with possessing two firearms in furtherance of a drug trafficking crime. The indictment alleges that he distributed methamphetamine in February 2019, and that on April 8, 2019, he possessed two handguns and 50 grams or more of methamphetamine with the intent to distribute.
If convicted, Stein faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the two counts alleging 50 grams or more of methamphetamine, and a maximum of 20 years on the other two drug charges. The charge alleging the possession of firearms in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years, and federal law requires that any penalty imposed for this charge be served consecutive to any sentence imposed on the other charges.
The charges against Stein are the result of an investigation by the West Central Drug Task Force and the Cornell Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Robert A. Anderson.
Madison Man Charged with Drug & Gun Crimes
Martell Norris, 37, Madison, Wisconsin, is charged with one count of possessing 28 grams or more of crack cocaine with intent to distribute, one count of possessing cocaine with intent to distribute, possessing a loaded firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. The indictment alleges that he possessed the crack cocaine, cocaine, and a loaded semi-automatic handgun on May 16, 2019.
If convicted, Norris faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the count alleging 28 grams or more of crack cocaine, and a maximum of 20 years on the other drug charge. The charge alleging the possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years, and federal law requires that that any penalty imposed for this charge be served consecutive to any sentence imposed on the other charges. The charge of being a felon in possession of a firearm has a maximum penalty of 10 years.
The charges against Norris are the result of an investigation by the Drug Enforcement Administration and the Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of this case is being handled by First Assistant U.S. Attorney Timothy M. O’Shea.
Madison Man Charged with Gun Crimes and Drug Crime Involving Heroin & Crack Cocaine
Demarious Gray, 28, Madison, Wisconsin, is charged with being a felon in possession of a firearm and ammunition, with possessing a firearm in furtherance of a drug trafficking crime, and with possessing heroin and crack cocaine with the intent to distribute. The indictment alleges that on October 9, 2017, he possessed a loaded .40 caliber handgun, heroin, and crack cocaine.
If convicted, Gray faces a maximum penalty of 10 years in federal prison on the felon in possession of a firearm charge, 20 years on the drug charge, and a mandatory minimum penalty of five years on the charge of possessing a firearm in furtherance of a drug trafficking crime. Federal law requires that that any penalty imposed for the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any sentence imposed on the other charges.
The charges against Gray are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Corey C. Stephan.
Madison Man Charged with Armed Robbery of Oregon Gas Station
Willie Champ, 18, Madison, Wisconsin, is charged with the armed robbery of a business in Oregon, Wisconsin. The indictment alleges that on May 24, 2019, he robbed the Kwik Trip gas station on Janesville Street in Oregon, and that during the robbery he brandished a weapon at an employee and demanded money.
If convicted, Champ faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Oregon, Fitchburg and Madison Police Departments, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Corey C. Stephan.
Ashland Man Charged with Being a Felon in Possession of Firearm & Ammunition
Jeremy W. Strobel, 41, Ashland, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on April 20, 2019, he possessed a .38 caliber revolver and ammunition.
If convicted, Strobel faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Ashland Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Corey C. Stephan.
Beloit Man Charged With Gun Crime
Randell Thomas, 39, Beloit, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on May 16, 2019, he possessed a loaded 9 mm pistol.
If convicted, Thomas faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Beloit Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
Grand Island Man Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on June 5, 2019, Chief United States District Court Judge John M. Gerrard sentenced Phillip Smith, 41, of Grand Island, to 10 years and 5 months in prison for distribution of methamphetamine. Following the prison term, Smith will serve five years on supervised release.
On October 18, 2017, Smith sold approximately 1 ounce of methamphetamine to a confidential informant in Grand Island, Nebraska.
This case was investigated by Central Nebraska Drug and Safe Streets Task Force, which is composed of members from the Federal Bureau of Investigation, the Department of Homeland Security, the Nebraska State Patrol, the Grand Island Police Department, the Hall County Sheriff’s Department, the Adams County Sheriff’s Department, the Hastings Police Department, and the Kearney Police Department.
Georgia Man Sentenced to 151 Months in Federal Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Georgia man was sentenced today to 151 months in federal prison, announced United States Attorney Mike Stuart. Clifford Allen Angle, 32, previously pled guilty to possession with intent to distribute methamphetamine.
“151 months. Over 12 years in federal prison,” said United States Attorney Mike Stuart. “Drug dealers need to understand, West Virginia isn’t the place to bring your drugs and guns.”
Angle was arrested on August 1, 2017, in downtown Charleston with a firearm and a quantity of methamphetamine. Pursuant to his plea agreement, he admitted that he traveled from Georgia with approximately two ounces of methamphetamine to distribute in West Virginia. He also admitted that he has two prior drug trafficking convictions.
United States District Judge Joseph R. Goodwin imposed the sentence. In imposing the sentence, Judge Goodwin noted the severity of the sentence and stated it was appropriate based on Angle’s extensive criminal history, and the “remarkably and appallingly” lenient sentences previously imposed upon him in state court.
The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Steve Loew handled the prosecution.
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Franklin Police Officer Pleads Guilty in Federal CourtRead the Press Release
BOWLING GREEN, Ky. – A Franklin Police Department officer has waived Indictment and pleaded guilty in federal court to a felony Information charging her with conspiracy to obstruct an official proceeding, announced United States Attorney Russell Coleman.
According to a plea agreement, Vickie M. Kristiansen, age 43, of Franklin, Kentucky, participated in a local drug task force while employed with the Franklin Police Department. During the course of Kristiansen’s work, she became aware of a federal investigation into “Dr. John Doe” for unlawful prescription of controlled substances in the course of his medical practice. The defendant also became aware of steps that were being taken in the investigation.
Around February 2013, Kristiansen met with Dr. Doe and told him he was being investigated for the purpose of helping Dr. Doe avoid being charged federally. She informed him the investigators would send undercover agents to attempt to obtain controlled substances from Dr. Doe, and advised Dr. Doe not to accept any new patients. Kristiansen told Dr. Doe he should shred documents and avoid putting his trash out on the curb until trash day, to avoid law enforcement trash pulls. She promised to inform Dr. Doe if she learned “something major” was going to happen concerning the investigation. The defendant emphasized the importance of the secrecy of their conversation, stating she could lose her job for tipping off Dr. Doe. After this conversation, Kristiansen continued to participate in the investigation of Dr. Doe, which included unsuccessful attempts at sending undercover officers to make purchases from Dr. Doe and eventual seizure of documents. Kristiansen concealed her conversation with Dr. Doe. One of the primary objectives of the conspiracy was thwarted when Dr. Doe was federally charged in November 2015.
Assistant United States Attorney Amanda Gregory is prosecuting the case, and the Federal Bureau of Investigation conducted the investigation.
Franklin Man Sentenced to 60 Months for Attempted Escape and Witness TamperingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Brian Sanborn, 54, of Franklin, New Hampshire, was sentenced to 60 months in prison for attempted escape and witness tampering.
According to court documents and statements made in court, on May 14, 2018, Sanborn called his girlfriend from the Strafford County House of Corrections. At the time, Sanborn was detained on federal charges related to the distribution of fentanyl and methamphetamine. Sanborn was scheduled to go to federal court the next day, May 15, 2018, to plead guilty. During the recorded phone call, Sanborn instructed his girlfriend to call his mother and to follow the transport van to and from Strafford on May 15 because “something might fall out of that . . . van and you might need to pick something up.”
On May 15, 2018, after pleading guilty to distributing methamphetamine and while being transported back to the Strafford County House of Corrections, Sanborn attempted to escape the transport van by prying open the door to the cage inside the van with a six-inch piece of metal that he had smuggled into the van. Sanborn’s actions were recorded on video cameras in the van and the deputies transporting Sanborn apprehended him before he could flee. Sanborn called his mother the next day and said, in a recorded phone call, that he “fell out of the back of the van and will probably be facing escape charges.”
Another inmate was in the transport van with Sanborn when he attempted to escape. At Strafford, Sanborn sent the inmate a note that said that Sanborn knew his name and knew that the inmate had a girlfriend and child. In the note, Sanborn also offered to pay the inmate to keep quiet about what he saw in the van. The inmate informed Sanborn that he was not interested in Sanborn’s help and wanted nothing to do with the situation. After this, other inmate associates of Sanborn began to harass the inmate and told him, among other things, that he was a “rat” and threatened to beat him up or kill him.
Sanborn pleaded guilty to these charges on March 1, 2019. He previously was sentenced in September to serve 102 months in prison for methamphetamine trafficking.
“I am grateful for the fine work of the law enforcement officers whose quick thinking stopped this felon’s escape efforts,” said U.S. Attorney Murray. “In order to maintain the integrity of the judicial system and promote public safety, we will aggressively prosecute crimes such as witness tampering and escape attempts.”
“The outstanding and professional work of the Strafford County Sheriff Deputies to prevent the escape was validated today by the strong sentence sought and secured by the diligent work of the U.S. Attorney’s Office,” said U.S. Marshal Nick Willard.
This matter was investigated by the Strafford County Sherriff’s Office and the United States Marshals Service. The case was prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter.
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Four International Hacking Suspects Charged with RacketeeringRead the Press Release
WASHINGTON – A criminal indictment and four arrest warrants were unsealed today charging an American, a Slovenian, a Serbian, and a Spaniard with a racketeering conspiracy to develop and distribute malware through the major computer hacking forum known as Darkode.
U.S. Attorney Jessie K. Liu for the District of Columbia, and John Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office made the announcement.
Thomas McCormick, aka fubar, 26, of Washington state, in the United States; Matjaz Skorjanc, aka iserdo aka serdo, 32, of Maribor, Slovenia; Florencio Carro Ruiz, aka NeTK aka Netkairo, 40, of Vizcaya, Spain; and Mentor Leniqi, aka Iceman, 35, of Gurisnica, Slovenia, are each charged with racketeering conspiracy and conspiracy to commit wire fraud and bank fraud. The racketeering conspiracy charge includes conspiracy to commit bank, wire, and access device fraud, identity theft, hacking, and extortion. McCormick is also charged with five counts of Aggravated Identity Theft. The indictment was filed under seal on Dec. 4, 2018, in the U.S. District Court for the District of Columbia. McCormick was arrested on Dec. 10, 2018, at the FBI’s Washington Field Office in Washington, D.C. Skorjanc, Leniqi, and Ruiz remain fugitives.
As alleged in the charging documents, Darkode was a criminal organization centered around an online, password-protected criminal forum where high-level international hackers and other cyber-criminals convened to develop, buy, sell, trade, and share hacking tools, information, and ideas. Before becoming a member of Darkode, prospective members were vetted through a process in which an existing member invited a prospective member to the forum to present the skills or products that he or she could bring to the group. Darkode members allegedly used each other’s skills and products to infect computers and electronic devices of victims around the world with malware and, thereby gain access to, and control over, those devices.
The charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for a racketeering conspiracy to commit bank fraud is 20 years of incarceration. The maximum penalty for conspiracy to commit wire fraud and bank fraud is 30 years of incarceration. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office with assistance from Europol and their European Cyber Crime Center (EC3).
Assistant U.S. Attorneys John P. Dominguez and Peter V. Roman of the Cyber Crime Section of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. The Computer Crime and Intellectual Property Section, Organized Crime and Gangs Section, and the Office of International Affairs of the Department of Justice’s Criminal Division provided significant assistance.
Fort Lupton Man Pleads Guilty to Selling OxycodoneRead the Press Release
DENVER – A Fort Lupton man pled guilty yesterday before U.S. District Court Judge John L. Kane to distribution and possession with intent to distribute oxycodone, a Schedule II controlled substance, announced U.S. Attorney Jason Dunn, FBI Denver Special Agent in Charge Dean Phillips, and U.S. Department of Health and Human Services, Office of the Inspector General, Special Agent in Charge Steven Hanson. The defendant, Ramon Hernandez, IV, age 35, appeared at the court hearing free on bond. He is scheduled to be sentenced by Judge Kane on September 4, 2019.
Hernandez was first charged by complaint on January 24, 2019. He was indicted by a federal grand jury in Denver on February 5, 2019. The defendant pled guilty yesterday, June 4, 2019.
According to the stipulated facts contained in the plea agreement, defendant Hernandez obtained controlled substances, including oxycodone from a family physician for the past several years. Since April 2017, Hernandez has been prescribed and has obtained 60 oxymorphone, 150 oxycodone 20-milligram pills, and 300 oxycodone 30-milligram pills per month.
During the course of the investigation, it was determined that the defendant did not consume all of the pills he obtained by prescription, but instead traded pills with another individual and also gave that individual pills to sell on his behalf. Hernandez sold as many as 150 pills per month for $2,000. Hernandez received all of the money from the sale of the drugs.
Hernandez faces not more than 20 years in federal prison, although the actual sentence will be determined by Judge Kane.
This case was investigated by the FBI and the Department of Health and Human Services Office of the Inspector General.
Former supervisor at Louisiana correctional facility sentenced for role in conspiracy to violate civil rights of inmatesRead the Press Release
MONROE, La. – A former captain at the Richwood Correctional Center was sentenced today for his role in a conspiracy to violate the civil rights of five inmates. Roderick Douglas, 38, of Monroe, Louisiana, previously pleaded guilty to conspiring with five other corrections officers to violate the Constitutional prohibition against cruel and unusual punishment. According to the defendant’s plea agreement and admission in court, Douglas and other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Following that abuse, the officers conspired to hide their conduct by submitting false reports.
Douglas was sentenced to serve 60 months in prison by U.S. District Judge Terry A. Doughty of the Western District of Louisiana. United States Attorney for the Western District of Louisiana David C. Joseph and Assistant Attorney General Eric Dreiband for the Civil Rights Division made the announcement.
“Correctional officers deserve our respect for the jobs they do, but we must also hold them accountable when they willfully break the law and cover up the abuse of inmates,” said U.S. Attorney David C. Joseph. “The defendant in this case ignored his role as a caretaker for prisoners and violated the rights of those he was sworn to protect. My office is committed to upholding the laws of our land and the rights of all.”
“This blatant abuse of power will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband. “Today’s sentencing demonstrates the commitment of the Civil Rights Division to vigorously prosecute those who inflict cruel and unusual punishment against inmates under their care.”
Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, prosecuted the case. The Monroe Division of the FBI investigated the case.
Former Supervisor at Louisiana Correctional Facility Sentenced for Role in Conspiracy to Violate Civil Rights of InmatesRead the Press Release
A former captain at the Richwood Correctional Center was sentenced today in U.S. District Court in Monroe, Louisiana, for his role in a conspiracy to violate the civil rights of five inmates. Roderick Douglas, 38, of Monroe, Louisiana, previously pleaded guilty to conspiring with five other corrections officers to violate the Constitutional prohibition against cruel and unusual punishment. According to the defendant’s plea agreement and admission in court, Douglas and other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Following that abuse, the officers conspired to hide their conduct by submitting false reports.
Douglas was sentenced to serve 60 months in prison by U.S. District Judge Terry A. Doughty of the Western District of Louisiana. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.
“This blatant abuse of power will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband. “Today’s sentencing demonstrates the commitment of the Civil Rights Division to vigorously prosecute those who inflict cruel and unusual punishment against inmates under their care.”
“Correctional officers deserve our respect for the jobs they do, but we must also hold them accountable when they willfully break the law and cover up the abuse of inmates,” said U.S. Attorney David C. Joseph. “The defendant in this case ignored his role as a caretaker for prisoners and violated the rights of those he was sworn to protect. My office is committed to upholding the laws of our land and the rights of all.”
Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, prosecuted the case. The Monroe Division of the FBI investigated the case.
Former Substance Abuse Treatment Counselor Sentenced for Distribution of FentanylRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that David Reeves, 51, of Beckley, a former substance abuse treatment counselor, was sentenced to 16 months in prison for illegally distributing fentanyl to a substance abuse treatment patient. Stuart commended the investigative work of the Drug Enforcement Administration.
“Tragic – an employee of a substance abuse treatment center distributing fentanyl to a patient being treated for opioid use disorder,” said United States Attorney Mike Stuart.
As part of his plea, Reeves admitted that he had an inappropriate relationship with a patient at Charleston Treatment Center (CTC), where he worked as a counselor from 2016 through October 2018. Reeves admitted to giving the patient fentanyl patches he had stolen from his wife’s supply, and at the time he gave the patient the fentanyl, he knew the patient was being treated for opioid use disorder at CTC. The evidence also showed that Reeves sold fentanyl to a different patient of CTC.
United States District Judge Irene C. Berger presided over the case. Assistant United States Attorney Haley Bunn handled the prosecution.
This prosecution is the result of the formation of the Opioid Fraud Abuse and Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
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