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30 May 2019
Pittsburgh Woman Sentenced to Prison for Dealing Drugs from Public Housing and Across from a PlaygroundRead the Press Release
PITTSBURGH – Dara Haynie was sentenced to 16 months in federal prison for possessing heroin, fentanyl, or butyryl fentanyl with intent to distribute within 1,000 feet of a playground and a public housing facility, United States Attorney Scott W. Brady announced today.
Haynie, 28, of Pittsburgh, was sentenced by United States District Court Judge David S. Cercone. Haynie was also sentenced to serve six years of supervised release following her prison term.
Haynie was convicted at the conclusion of a jury trial in January 2019. The evidence presented during the jury trial established that she teamed up with her husband, Quinshawn Haynie, to deal fentanyl and heroin in February and March 2017. They did so from public housing and across the street from a playground in Pittsburgh’s Garfield neighborhood.
The Haynies spent at least part of their drug trafficking proceeds on marijuana to smoke together, cigarettes, and alcohol.
Quinshawn Haynie was sentenced to three years and four months (40 months) in prison in April.
Assistant United States Attorneys Christy C. Wiegand and Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania Board of Probation and Parole conducted the investigation leading to the conviction and sentence in this case.
Phone Provider Found Guilty for Role in $11 Million International Telemarketing SchemeRead the Press Release
CHARLOTTE, N.C. – An Ohio man was found guilty late yesterday for his role in a $7 million telemarketing scheme that defrauded primarily elderly victims in the United States from call centers in Costa Rica.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina, Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s Charlotte Divison, Acting Special Agent in Charge William Cheung of the IRS Criminal Investigation’s (CI) Cincinnati Field Office, Special Agent in Charge Matthew D. Line of the IRS CI Charlotte Field Office and Special Agent in Charge John Strong of the FBI’s Charlotte Field Office made the announcement.
Following a five-day jury trial, Donald Dodt, 76, originally of Cleveland, Ohio, was convicted of one count of conspiracy to commit wire fraud and mail fraud, two counts of mail fraud, eight counts of wire fraud, one count of conspiracy to commit international money laundering and 10 counts of international money laundering.
According to evidence presented at trial, Dodt worked in a call center in Costa Rica in which co-conspirators, who posed as representatives of the District of Columbia Department of Consumer and Regulatory Affairs and federal agencies, including the U.S. Federal Trade Commission, and who also posed as federal judges, contacted victims in the United States — primarily senior citizens – to tell them that that they had supposedly won a substantial “sweepstakes” prize. After convincing victims that they stood to receive a significant financial reward, the co-conspirators told victims that they needed to make a series of up-front cash payments before collecting, purportedly for items like insurance fees, taxes and import fees. Co-conspirators used a variety of means to conceal their true identity, such as Voice over Internet Protocol (VoIP) services provided by Dodt that made it appear that they were calling from Washington, D.C., and other places in the United States.
As the evidence presented at trial illustrated, Dodt was an integral part of this scheme in that he knowingly provided services that were necessary for the scheme to operate and that facilitated the concealment and, ultimately, success of the scheme for many years. Specifically, Dodt provided and maintained VoIP phone technology and assigned phone numbers associated with locations in the United States through which members of the conspiracy were able to make the fraudulent calls to victims in the United States and conceal their identities and location. Dodt specifically assigned virtual phone numbers with area codes associated with Washington, D.C., to make it appear that the calls originated from within the United States and that also bolstered conspirators’ misrepresentations that they were representatives of government agencies located in Washington. Dodt also warned the co-conspirators if certain numbers were “hot” – i.e., there were customer complaints or law enforcement inquiries – and replaced those phone numbers with new phone numbers that the co-conspirators then used in furtherance of the scheme, the evidence showed.
Dodt and his conspirators stole more than $7 million from victims, the evidence showed.
This case was investigated by the U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation and the FBI with assistance from the Federal Trade Commission and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Fraud Section Trial Attorneys William Bowne, Jennifer Farer and Philip Trout. The U.S. Attorney’s Office for the Western District of North Carolina provided substantial assistance with this matter.
The Western District’s Elder Justice Initiative
In March 2019, the U.S. Attorney’s Office and the FBI in North Carolina announced the Western District’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid getting ripped off by scammers; and promote greater coordination with law enforcement partners.
In addition to the criminal prosecution of perpetrators, the Elder Justice Initiative aims to raise awareness through outreach, including a series of seminars to educate older adults and prevent victimization. Our next such seminar is scheduled for June 10, 2019, at 10:00 a.m. at the Tyvola Senior Center. This seminar is free of charge.
Flyer for Seminar at Tyvola Senior CenterAmong the topics covered will be financial fraud and scams targeting seniors, including:
- Lottery phone scams – in which the callers convince seniors that a large fee or taxes must be paid before they can receive lottery winnings.
- Grandparent scams – which convince seniors that their grandchildren are in trouble and need money to make rent, repair a car, or even money for bail.
- Romance scams – which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose.
- IRS imposter scams – which defraud victims by posing as IRS agents and claiming that victims owe back taxes.
- Sham business opportunities – which convince victims to invest in lucrative business opportunities or investments.
The seminar will also focus on prevention and how to avoid falling victim to a financial scam. Some of such tips on preventing becoming a victim of fraud are:
- Don’t share personal information with anyone you don’t know.
- Don’t pay a fee for a prize or lottery winning.
- Don’t click on pop-up ads or messages.
- Delete phishing emails and ignore harassing phone calls.
- Don’t send gift cards, checks, money orders, wire money, or give your bank account information to a stranger.
- Don’t fall for a high-pressure sales pitch or a lucrative business deal.
- If a scammer approaches you, take the time to talk to a friend or family member.
- Keep in mind that if you send money once, you’ll be a target for life.
- Remember, it’s not rude to say, “NO.”
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
For more information about the Elder Justice Initiative, please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative. To view our Public Service Announcement, please visit: https://youtu.be/qBGGAA7Mxbo
Philadelphia man sentenced for role in a methamphetamine distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Oscar Aaron Watkins, of Philadelphia, Pennsylvania, was sentenced today to 156 months incarceration for his involvement in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Watkins, also known as Eric Oscar Watkins, age 58, pled guilty to one count of “Conspiracy to Distribute Controlled Substances” in February 2019. Watkins admitted to participating in a drug distribution operation in October 2018 in Monongalia County.Watkins was also ordered to forfeit $9,820.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Parkersburg man sentenced for drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jesse N. Perez, of Parkersburg, West Virginia, was sentenced to 30 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Perez, age 36, pled guilty to one count of “Conspiracy to Distribute and to Possess With the Intent to Distribute Controlled Substances” in February 2019. Perez admitted to distributing methamphetamine, heroin, cocaine, and cocaine base in Wetzel County, as well as the Southern District of West Virginia, Ohio, and Georgia from 2016 to April 2018.
Perez was also ordered to forfeit $2,000 in cash.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
O.C. Businessman Sentenced to 46 Months in Prison for Selling Counterfeit Integrated Circuits with Military and Commercial UsesRead the Press Release
SANTA ANA, California – The owner of PRB Logics Corporation, an Orange County-based seller of electronic components, was sentenced today to more than three years in federal prison for selling counterfeit integrated circuits he obtained from China, some of which were purchased by defense contractors for military use.
Rogelio Vasquez, 44, a.k.a. “James Harrison,” of Orange, was sentenced by United States District Judge Josephine L. Staton, who said, “Simply put, the scheme was endangering lives for the sake of illicit profit.” Judge Staton also ordered Vasquez to pay $144,000 in restitution.
On January 17, Vasquez pleaded guilty to four felonies: one count of wire fraud, two counts of trafficking in counterfeit goods, and one count of trafficking in counterfeit military goods.
From July 2009 until May 2016, Vasquez acquired old, used and/or discarded integrated circuits from Chinese suppliers that had been repainted and remarked with counterfeit logos. The devices were further remarked with altered date codes, lot codes or countries of origin to deceive customers and end users into thinking the integrated circuits were new, according to court documents. Vasquez knew that the integrated circuits he sold were old, used or discarded and that his Chinese suppliers had pulled the circuits off of discarded circuit boards in China, sanded off all of the markings, and then remarked them in a process commonly referred to as “blacktopping.” Vasquez then sold the counterfeit electronics to appear as new parts made by manufacturers such as Xilinx, Analog Devices and Intel.
In furtherance of the scheme, in August 2012, Vasquez purchased counterfeit circuits from China and sold them to a defense subcontractor located in the United States, which, in turn, supplied the parts to a defense contractor. The counterfeit parts ended up in a classified weapon system used by the U.S. Air Force.
Between November 2015 and May 2016, Vasquez, using the alias “James Harrison,” sold a total of 106 counterfeit integrated circuits to an undercover federal agent. Vasquez admitted in his plea agreement that in April 2016, he sold eight counterfeit integrated circuits that he believed would be used by the United States military in the B-1 Lancer Bomber military aircraft.
Vasquez admitted he instructed his Chinese suppliers to remark ICs and also instructed a testing laboratory in China to provide two versions of its report – one of which accurately showed integrated circuit test results and the second of which was a “sanitized version” that did not contain results of “any visual inspection and permanency or other marking tests, which would have revealed that the ICs were used, remarked and/or in poor condition.”
Vasquez has agreed to forfeit $97,362 in cash and 169,148 counterfeit integrated circuits that were seized during the investigation, according to the government’s forfeiture brief. Vasquez also admitted that over the course of seven years, he trafficked more than 9,000 integrated circuits with a total infringement value of $894,218.
“This defendant obtained and sold counterfeit integrated circuits which ended up in systems used by the United States military,” said United States Attorney Nick Hanna. “The sentence imposed today is the direct result of Mr. Vasquez’s conduct, which was designed to line his pockets while potentially exposing members of our armed services to unnecessary risk from counterfeit electronic parts.”
“America’s warfighters depend upon the reliability of Department of Defense weapons systems. The intentional substitution of counterfeit and defective parts in these systems impacts our national security, and places our military at risk,” said Special Agent in Charge, Michael Mentavlos, Defense Criminal Investigative Service, Southwest Field Office. “We will not tolerate this criminal behavior, and will aggressively bring to justice all those who would perpetrate these acts on our nation. Today’s sentencing serves as a stark reminder to those who would endanger our national security that DCIS, in concert with our partner agencies, HSI and NRO-OIG, will remain vigilant; ready at a moment’s notice to protect our warfighters.”
“The National Reconnaissance Office, Office of Inspector General is committed to keeping counterfeit parts out of sensitive, high-technology systems relied upon by the NRO and other government agencies in support of national security priorities. Detecting counterfeit parts and bringing their producers to justice remains a priority for the NRO-OIG in light of the potential harm caused by this type of fraud,” said Eric Beatty, Assistant Inspector General for Investigations, National Reconnaissance Office, Office of Inspector General.
“As this sentence makes clear, military procurement fraud is a serious crime that extends far beyond the financial losses to the DOD and U.S. taxpayers,” said Joseph Macias, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Los Angeles. “This defendant committed a crime that seriously threatens the safety and readiness of our nation’s warfighters simply to line his own pockets. HSI will continue to aggressively target and investigate those who knowingly jeopardize our nation’s security or the welfare of those devoted to protecting it.”
The investigation into Vasquez and PRB Logics was conducted by U.S. Department of Defense, Office of Inspector General – Defense Criminal Investigative Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the National Reconnaissance Office, Office of Inspector General.
This matter is being prosecuted by Assistant United States Attorneys Lisa E. Feldman of the Cyber & Intellectual Property Crimes Section and Steven R. Welk, Chief of the Asset Forfeiture Section.
North Carolina Tax Return Preparer Convicted of Filing False Income Tax ReturnsRead the Press Release
A federal jury in Charlotte, North Carolina, convicted a former tax return preparer of filing false tax returns for her clients and herself, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
“Tax return preparers who, for themselves or others, prepare fraudulent returns and otherwise manipulate our tax system will be prosecuted for their conduct and be held accountable,” said Principal Deputy Assistant Attorney General Zuckerman.
“For more than three years, Smith used false entries, including fabricated wages and business expenses, to capitalize on the Earned Income Tax Credit, which resulted in higher refunds for her clients. Smith earned more than $300,000 between 2013 and 2015 for preparing tax returns and failed to report the bulk of that income on her own tax returns. We are committed to protecting the integrity of our tax system by prosecuting tax return preparers, who use their knowledge to cheat the system and commit tax crimes,” said U.S. Attorney Murray.
“Knowingly preparing and filing fraudulent tax returns is a crime,” said Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge Matthew D. Line. “IRS Criminal Investigation is committed to pursuing dishonest return preparers to hold them accountable to the fullest extent of the law.”
According to court documents and evidence presented at trial, Aminta Smith, 32, of Charlotte prepared income tax returns for clients that claimed false education credits, false W-2 wages, and false Schedule C businesses to inflate the refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Smith falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013- 2015 and failing to disclose that she was in engaged in the operation of a tax preparation business.
U.S. District Judge Max O. Cogburn of the Western District of North Carolina set sentencing for a later date. The defendant faces as a maximum possible sentence of three years prison on each count, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Caryn Finley and Trial Attorney Allison Garnett of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Tax Return Preparer Convicted of Filing False Income Tax ReturnsRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte, North Carolina, convicted a former tax return preparer, Aminta Smith, 32, of Charlotte, of filing false tax returns for her clients and herself, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
“Tax return preparers who, for themselves or others, prepare fraudulent returns and otherwise manipulate our tax system will be prosecuted for their conduct and be held accountable,” said Principal Deputy Assistant Attorney General Zuckerman.
“For more than three years, Smith used false entries, including fabricated wages and business expenses, to capitalize on the Earned Income Tax Credit, which resulted in higher refunds for her clients. Smith earned more than $300,000 between 2013 and 2015 for preparing tax returns and failed to report the bulk of that income on her own tax returns. We are committed to protecting the integrity of our tax system by prosecuting tax return preparers, who use their knowledge to cheat the system and commit tax crimes,” said U.S. Attorney Murray.
“Knowingly preparing and filing fraudulent tax returns is a crime,” said Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge Matthew D. Line. “IRS Criminal Investigation is committed to pursuing dishonest return preparers to hold them accountable to the fullest extent of the law.”
According to court documents and evidence presented at trial, Smith prepared income tax returns for clients that claimed false education credits, false W-2 wages, and false Schedule C businesses to inflate the refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Smith falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013- 2015 and failing to disclose that she was in engaged in the operation of a tax preparation business.
A sentencing date has not been set. Smith faces as a maximum possible sentence of three years prison on each count, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Caryn Finley and Trial Attorney Allison Garnett of the Tax Division, who are prosecuting the case.
New Orleans Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that WALTER OLIVER, age 28, of New Orleans, pled guilty as charged to a one count federal indictment for being a felon in possession of a firearm. Federal law prohibits individuals who have been convicted of certain crimes from possessing firearms after being convicted.
OLIVER faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000.00, a period of supervised release of 3 years, and a mandatory special assessment of $100.00. The Honorable Jane Triche Milazzo will sentence OLIVER on September 4, 2019.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
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New Bedford Man Indicted for Federal Drug OffensesRead the Press Release
BOSTON – A New Bedford man was charged yesterday in federal court in Boston with distributing cocaine and marijuana.
Luis Mendez, 37, was indicted on one count of possession with intent to distribute cocaine and marijuana. Mendez has been in state custody since his arrest on Feb. 7, 2019.
According to the charging document, on Feb. 7, 2019, after an investigation into drug distribution in and around New Bedford, law enforcement officers executed a search warrant at Mendez’s apartment, where Mendez was found in possession of approximately 15 grams of cocaine and 500 grams of marijuana. Mendez has prior felony convictions for narcotics distribution.
The charge of distribution of a controlled substance provides for a sentence of no greater than 30 years in prison, up to a lifetime of supervised release, and a maximum fine up to $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Montgomery Nurse Practitioner Receives 10-Year SentenceRead the Press Release
Montgomery, Alabama – On Wednesday, May 29, 2019, a Montgomery, Alabama nurse practitioner, Lilian Ifeoma Akwuba, 40, received a 10-year sentence for her part in helping run two separate “pill mill” operations in Montgomery over a four-year period, announced United States Attorney Louis V. Franklin, Sr., Assistant Special Agent in Charge Clay Morris with the Drug Enforcement Administration, Special Agent in Charge Derrick L. Jackson with the U.S. Department of Health and Human Services, Office of Inspector General, and Special Agent in Charge Thomas J. Holloman with the IRS Criminal Investigation, Atlanta Field Office The sentence followed her convictions for drug distribution and health care fraud. Specifically, in October of 2018, a federal jury convicted Akwuba on 17 counts of unlawfully distributing controlled substances, four counts of health care fraud, one count of conspiring to distribute controlled substances, and one count of conspiring to commit health care fraud.
The trial evidence showed that, from 2013 through 2016, Akwuba worked at Family Practice, a Montgomery medical practice located at 4143 Atlanta Highway. Her supervisor there was the practice’s owner, Dr. Gilberto Sanchez. Working under Sanchez, Akwuba issued and caused to be issued unnecessary and illegitimate prescriptions for a variety of controlled substances, including fentanyl, hydrocodone (commonly known as “Norco” or “Lortab”), oxycodone (commonly known as “Percocet”), alprazolam (commonly known as “Xanax”), and methadone. Akwuba and Sanchez also required these patients to return approximately every month to obtain their prescriptions. These unnecessary office visits and unlawful prescriptions were ultimately billed to the insurance companies, which paid the claims.
In 2016, Akwuba left Family Practice and opened her own practice, Mercy Family Health Care, located at 128 Mytilene Park Drive in east Montgomery. At her new practice, Akwuba continued the prescribing patterns she developed while working at Family Practice. Because Akwuba was a nurse practitioner and not a physician, she was not able to issue prescription refills on Schedule II controlled substances without a physician’s approval. Akwuba skirted this rule by, in many instances, forging physicians’ signatures on prescriptions for controlled substances.
At the sentencing hearing, the federal judge found that Akwuba testified falsely at trial. As a result, Akwuba received a sentencing enhancement for obstructing justice. Additionally, Akwuba received an enhancement for abusing the trust society placed in her when it allowed her to practice nursing. Before imposing sentence, the judge described Akwuba as a “highly educated drug dealer” and also noted that Akwuba had demonstrated no remorse for the immeasurable harm caused by the prescriptions she signed.
“Far too many of us have been touched by this crisis of over-medication,” stated United States Attorney Franklin. “It is a problem that we hear about on the news and deal with in our own homes. My office and our law enforcement partners are making progress in addressing the issue. Due to the position she held as a medical professional and the air of legitimacy that it comes with, I consider Ms. Akwuba’s actions to be, in many ways, worse than a street-level drug dealer. I hope that the sentence imposed in this case will deter other prescribers from following in her footsteps and causing harm to their patients.”
“Today's sentencing effectively ends the unlawful distribution of controlled substances by Akwuba, a licensed nurse practitioner,” stated Assistant Special Agent in Charge Clay Morris with DEA. “Anyone who preys on the addiction of others will bear the full force of the DEA and our law enforcement partners. We will not tolerate those who unlawfully distribute drugs regardless of their position in life. Healthcare professionals who violate our trust and cause harm to our communities will be held accountable for their criminal activities. The safety of the citizens of Alabama and the United States is our most important priority.”
"Nurse practitioner Lilian Akwuba abandoned her obligation to protect the health and well-being of patients, instead taking advantage of people suffering from addiction to opioids in order to enrich herself," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “We will continue to work with our law enforcement partners to protect patients and the health care programs intended to serve them.”
"Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions," said Thomas J. Holloman, Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “This sentencing is another step in our ongoing effort to combating the opioid epidemic, healthcare fraud and profiteering in the trafficking of legal drugs. IRS-CI will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”
The case was investigated Drug Enforcement Administration, Health and Human Services-Office of the Inspector General, and Internal Revenue Service-Criminal Investigation. The Alabama Law Enforcement Agency, the Opelika, Alabama Police Department, the Montgomery, Alabama Police Department, and the Alabama Board of Medical Examiners all assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross, Megan A. Kirkpatrick, and Rand Neeley prosecuted the case.
Montgomery Business Man Sentenced for Bank Fraud, Mail Fraud and Drug ChargesRead the Press Release
Montgomery, Alabama – On Wednesday, May 29, 2019, Gene Earl Easterling, 47, of Montgomery, Alabama, was sentenced to 63 months of imprisonment for bank fraud, mail fraud, and drug charges, announced U.S. Attorney Louis V. Franklin, Sr., Postal Inspector in Charge Adrian Gonzalez of the Houston Division, and Assistant Special Agent in Charge Clay Morris with the Drug Enforcement Administration. Easterling’s five year and three month prison term will be followed by three years of supervised release. There is no parole in the federal system. The judge also ordered Easterling to pay restitution to his financial institution victims.
The mail and bank fraud charges stemmed from a scheme in which Easterling others submitted a series of fraudulent loan applications and received payment. Specifically, evidence showed that from March 2015 through October 2017, Easterling represented to several Montgomery banks and credit unions that he owned a car dealership in Montgomery, Alabama named “Next-in-Line, Inc.” He and others working with him would submit applications for auto loans to pay for cars from his lot. However, Easterling never owned a car lot or actually sold cars. Investigators confirmed that Next-In-Line was never issued an auto-dealer’s license, and in fact, according to Next-In-Line’s business license, it was a computer/gaming repair company.
Once the loans were approved and checks were sent to the applicant through the United States mail, Easterling and his co-conspirators would take them to a bank to cash. Easterling would keep a portion of the check and give a portion to his accomplices. Ultimately, no vehicles were ever purchased. Furthermore, once the loan checks were received Easterling and his co-conspirators would make one or two payments on the loan, then stop paying and attempt to discharge their debt through the bankruptcy courts.
In total, sixteen fraudulent loans checks were approved and resulted in a loss of $682,980 to the financial institutions. Easterling and his co-conspirators also submitted other applications which were not approved in the amount of $253,500. His co-conspirators also have pending cases.
As to his drug offense, Easterling was also found to be in possession of cocaine with intent to distribute.
“When criminals lie to banks for their own personal gain, it hurts everyone. When they are also selling drugs, it is even more alarming,” said U.S. Attorney Franklin. “Unfortunately, there is no shortage of crooks out there trying to defraud individuals, financial institutions, and government agencies. My office will continue to work with our law enforcement partners to protect the community from this type of criminal activity.”
“Gene Easterling’s conspiracy was motivated by pure greed,” said Postal Inspector in Charge Adrian Gonzalez. “Using false business practices, Easterling shamelessly enriched himself by taking advantage of the goodwill of credit unions and banks. Because he also violated the sanctity of the U.S. Mail to further his crimes, Postal Inspectors diligently worked with our law enforcement partners to hold Easterling accountable for his actions.”
“This investigation is a clear example of the connections between drug trafficking and other crimes,” said Assistant Special Agent in Charge Clay Morris. “Often times, criminal organizations distribute drugs as a means to finance other criminal enterprises. Today’s sentencing should send a clear message to drug dealers that if you sell poison in our communities, DEA and our law enforcement partners will relentlessly investigate you and bring you to justice.”
The case was investigated by the United States Postal Inspection Service and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Denise O. Simpson and Curtis Ivy.
Monongalia County woman sentenced for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tina Hart of Glenville, West Virginia, was sentenced to two years probation for a drug charge, United States Attorney Bill Powell announced.
Hart, age 40, pled guilty to one count of “Unlawful Use of Communication Facility” in February 2019. Hart admitted to using a phone to distribute a controlled substance in April 2018 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Monongalia County man sentenced for role in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Payne, of Morgantown, West Virginia, was sentenced today to 12 months and one day incarceration for his involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Payne, age 34, pled guilty to one count of “Aiding and Abetting Distribution of Heroin” in February 2019. Payne admitted to selling heroin in July 2017 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Mexican Truck Driver Pleads Guilty to Importing Drugs in AvocadosRead the Press Release
LAREDO, Texas – A 44-year old truck driver from Michoacan, Mexico, has entered a guilty plea for conspiring to import methamphetamine and cocaine, announced U.S. Attorney Ryan K. Patrick.
On March 12, 2013, Carlos Gaona-Zaragoza attempted entry at the Colombia Solidarity Bridge in Laredo driving a tractor-trailer. He presented his Border Crossing Card and said he was hauling a load of avocados.
He was referred to secondary inspection, at which time authorities conducted an x-ray examination and soon discovered anomalies in a spare tire located underneath the trailer. A drug detection dog also alerted to the possible presence of a narcotic odor emitting from the tire.
Further inspection of the tire revealed a total of 41 bundles, 40 of which field-tested positive for methamphetamine with a total gross weight of 41.56 kilograms. One contained cocaine with a weight of 1.12 kilograms.
Gaona-Zaragoza initially claimed he transported the narcotics under threat of harm to his family. However, he later admitted he had agreed to transport the narcotics for 15,000 Mexican pesos.
Sentencing will be set at a later date before U.S. District Judge Diana Saldaña.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
Mexican National Imprisoned for Returning to the United States Following DeportationRead the Press Release
The United States Attorney for the District of Vermont announced that Miguel Lopez-Castillo, 35, a Mexican national, was sentenced today in United States District Court in Burlington to a year and one day of imprisonment following his guilty plea to a charge that he was found in the United States after having been previously deported.
According to the indictment, Lopez-Castillo has twice been deported from the United States: first in 2008 and again in 2012. In late May 2018, agents with the Department of Homeland Security learned that Lopez-Castillo had at some point returned to the United States illegally, without having obtained authorization from the Attorney General to do so. At the time of his indictment this past August, Lopez-Castillo was in the custody of the Vermont Department of Corrections following his arrest in Burlington. That state case ended with Lopez-Castillo’s guilty plea and time-served sentence. Agents then took the defendant into federal custody. He pled guilty to the immigration charge this past February.
Lopez-Castillo is represented by Assistant Federal Public Defender Barclay Johnson. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Mason City Car Dealer Sentenced to Federal Prison for Money LaunderingRead the Press Release
A Mason City car dealer who laundered what he believed to be drug proceeds by selling a car for cash and not reporting the sale as he was required to do was sentenced today to more than a year in federal prison.
Jerry Flaherty, age 54, from Mason City, Iowa, received the prison term after an October 25, 2018 guilty plea to money laundering.
Information disclosed at sentencing and in a written plea agreement showed that in the spring of 2014, an undercover law enforcement officer met Flaherty at his car dealership, Wheel Man Auto, LLC in Mason City. During one meeting, the law enforcement officer purported to be a drug dealer and told Flaherty, among other things, that “I just don’t want the government forms to file” and “I just don’t want anything in my name.” During a second meeting, the undercover officer agreed to buy a car for $20,500 in cash, but Flaherty agreed to record the sale as a $15,000 credit card sale. During the meeting, the undercover officer told Flaherty “You know my deal. You know I sell cocaine and my thing is I just don’t need no, them government forms.” After the sale was completed, Flaherty never filed a form he was required to file under federal law documenting the sale.
Flaherty was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Flaherty was sentenced to 18 months’ imprisonment. He was also fined $25,000. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Flaherty was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3016.
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Maryland Man Sentenced to 5 Years Imprisonment in Federal Bank Fraud CaseRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that William Cook, age 63, of Berlin, Maryland was sentenced today by U.S. District Court Judge Colm F. Connolly to five years of imprisonment on federal bank fraud, false statement, and money laundering charges.
After a five-day trial in January, 2019, a federal jury found Cook guilty of bank fraud, four counts of false statements to Artisans’ Bank, and money laundering. According to evidence introduced and arguments presented during trial and at sentencing, Cook opened a business line of credit with Delaware-based Artisans’ Bank beginning in 2008. As part of his loan agreement, Cook submitted weekly certificates to Artisans’ Bank certifying open customer debts; Artisans’ Bank used these certificates to determine how much money it was willing to lend Cook’s business. Cook began falsifying these certificates in or around January 2009, which allowed him to access more money from Artisans’ Bank. His weekly fraud continued through May 2013. During this time, Cook used the money lent to his business by Artisans’ Bank for purposes not permitted under his loan agreement. When Artisans’ Bank learned of the fraud in July 2013, Cook had no money left to pay the $4.2 million that was still outstanding on his business loans. As part of its sentence, the Court ordered Cook to pay Artisans’ Bank the full $4.2 million in restitution, because Artisans’ Bank’s loss was caused by Cook’s fraud.
U.S. Attorney Weiss said, “The defendant lied to a local Delaware bank on a weekly basis so that he could use its money as he saw fit, and in a manner contrary to the terms of the loan agreement. As a result of his four-year fraud, Artisans’ Bank lost $4.2 million. Cook violated the trust required for lending arrangements to succeed - both for banks and the small businesses they support. My office remains committed to investigating and prosecuting fraudulent conduct, like defendant’s, that damages the integrity of our financial system. Because the money a bank lends belongs to its depositors, we cannot ignore conduct that places those funds at risk and the people who think the rules simply do not apply to them. The Court’s five-year sentence today rightly punishes the defendant for his long-term fraud.”
Acting U.S. Postal Inspector-in-Charge of the Philadelphia Division, John Walker said, “We will continue to work with our partners at the IRS, and the U.S. Attorney's Office to combat this type of financial fraud. Postal Inspectors work diligently to protect financial institutions from falling victim to these types of schemes. In the end, these schemes negatively impact all of us.”
“IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex fraud and money laundering schemes,” said IRS-CI Special Agent in Charge Guy Ficco. “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and to help put a stop to this and other types of white collar crime."
This case was investigated by the U.S. Postal Inspection Service and the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Whitney Cloud and Lesley F. Wolf.
Marshall County man sentenced for methamphetamine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Jacob Henry, of Moundsville, West Virginia, was sentenced today to 15 months incarceration for methamphetamine distribution, United States Attorney Bill Powell announced.
Henry, age 45, pled guilty to one count of “Distribution of Methamphetamine” in January 2019. Henry admitted to selling methamphetamine in April 2018 in Marshall County.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, A HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Marion County man sentenced for drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sanford Austin Mays, of Fairmont, West Virginia, was sentenced today to 90 months incarceration for drug possession and firearms charges, United States Attorney Bill Powell announced.
Mays, age 40, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of Firearms” in January 2019. Mays admitted to possessing methamphetamine in Marion County in June 2018. Mays, having been previously convicted of multiple felonies, is also accused of having a .45 caliber pistol in Marion County in June 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the White Hall Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Mansfield man indicted on child pornography chargesRead the Press Release
A Mansfield man was indicted on child pornography charges.
Christian K. Smith, Jr., 44, was was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Smith knowingly received, attempted to receive and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between May 9, 2014 through May 2, 2019, according to the indictment.
The indictment also charges that on or about May 2, 2019, Smith possessed two cellular phones and a laptop computer that contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by the Federal Bureau of Investigation Child Exploitation Task Force in Mansfield Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manitowoc Man Sentenced to 84 Months in Federal Prison for $3,100,000 Ponzi Scheme That Defrauded Elderly VictimsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on May 29, 2019, James A. Nickels (age 68), of Manitowoc, Wisconsin was sentenced to 84 months in federal prison for carrying out a $3,100,000 Ponzi scheme that defrauded 37 victims, most of whom were elderly. Nickels had earlier pleaded guilty to one count of wire fraud in violation of 18 U.S.C. § 1343, and one count of money laundering in in violation of 18 U.S.C. § 1957.
The information presented at the sentencing hearing showed that Nickels was a prominent member of the Manitowoc community for many years, and used that status to solicit family, friends, and neighbors, many of whom were elderly, to “invest” in his business, which was largely a Ponzi scheme. Twelve persons who had lost money, or whose deceased family members had lost money due to the fraud, gave in-person statements at the sentencing, explaining the financial and emotional harm and sense of betrayal that the defendant’s actions caused them.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach described the defendant’s actions as “a scam” whose victims were vulnerable. He stated that the defendant had committed an “evil, horrible” crime that was “grotesque” and had “high impact.” The Chief Judge further reprimanded the defendant for a lack of remorse, saying that this was not a matter of business plans not working out, but a “deliberate, sophisticated effort to defraud” that was “not an aberration.” The Chief Judge further stated that Nickels’ conduct was a “betrayal of trust” of friends and family that gained him a great benefit, and that the magnitude of the offense was a “huge aggravating factor” requiring a sentence that both punished and deterred.
“As a society, we have an obligation to protect our older members from predators,” said U.S. Attorney Krueger. “This seven-year sentence sends a clear message that taking advantage of elderly persons will be met with severe punishment. This case highlights the Department of Justice’s commitment to working with state and local partners to combat elder fraud.”
“When scammers like James Nickels take advantage of honest citizens who are simply looking to invest their hard-earned savings and retirement funds for a better life, it’s not only reprehensible, but devastating,” stated Special Agent in Charge Tara Sullivan of IRS Criminal Investigation, Chicago Field Office. “Today’s 84-month sentencing demonstrates how federal law enforcement works together to help stop the criminal behavior of those who prey on innocent investors in order to enrich themselves.”
IRS Criminal Investigation and the Wisconsin Department of Financial Institutions investigated the case. Jan Klika provided victim-witness support. Assistant U.S. Attorneys Zachary J. Corey and Stephen A. Ingraham prosecuted the case.
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Mandeville, Louisiana Neurologist Pleads Guilty for Role in Scheme to Unlawfully Dispense Controlled Substances and to Commit Health Care FraudRead the Press Release
A neurologist from Mandeville, Louisiana, pleaded guilty today for his role in a scheme to unlawfully prescribe controlled substances, namely oxycodone and hydrocodone, without performing required face-to-face examinations, and his role in a scheme to commit health care fraud.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Anil Prasad, M.D., 62, pleaded guilty before U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana to one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of conspiracy to commit health care fraud. Sentencing is set for Sept. 4, 2019, before Judge Milazzo.
In pleading guilty, Prasad admitted that he conspired with others to unlawfully distribute and dispense controlled substances at a medical clinic that was, in actuality, a pill mill. Prasad admitted that he rarely performed face-to-face examinations of patients at the clinic to determine whether any medical necessity existed for the controlled substances that he dispensed to them. Instead, Prasad admitted he pre-signed prescriptions for controlled substances for patients. Those patients then picked up the prescriptions from the clinic after making a cash payment to the clinic. Prasad also admitted that he pre-signed prescriptions before traveling internationally, and that patients would pick up those prescriptions while he was out of the country. Further, Prasad admitted that he knew certain patients who received the pre-signed prescriptions used their Medicare and Medicaid benefits to fill the prescriptions at area pharmacies. In total, Medicare and Medicaid paid approximately $1,657,461.15 for those prescriptions, Prasad admitted.
This case was investigated by the FBI, HHS-OIG, the Drug Enforcement Administration, the U.S. Department of Veterans Affairs and the Louisiana Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorney Jared Hasten of the Fraud Section and Assistant U.S. Attorney Sharan Lieberman of the Eastern District of Louisiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Mandeville, Louisiana Neurologist Pleads Guilty for Role in Scheme to Unlawfully Dispense Controlled Substances and to Commit Health Care FraudRead the Press Release
WASHINGTON – A neurologist from Mandeville, Louisiana, pleaded guilty today for his role in a scheme to unlawfully prescribe controlled substances, namely oxycodone and hydrocodone, without performing required face-to-face examinations, and his role in a scheme to commit health care fraud.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
Anil Prasad, M.D., 62, pleaded guilty before U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana to one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of conspiracy to commit health care fraud. Sentencing is set for Sept. 4, 2019, before Judge Milazzo.
In pleading guilty, Prasad admitted that he conspired with others to unlawfully distribute and dispense controlled substances at a medical clinic that was, in actuality, a pill mill. Prasad admitted that he rarely performed face-to-face examinations of patients at the clinic to determine whether any medical necessity existed for the controlled substances that he dispensed to them. Instead, Prasad admitted he pre-signed prescriptions for controlled substances for patients. Those patients then picked up the prescriptions from the clinic after making a cash payment to the clinic. Prasad also admitted that he pre-signed prescriptions before traveling internationally, and that patients would pick up those prescriptions while he was out of the country. Further, Prasad admitted that he knew certain patients who received the pre-signed prescriptions used their Medicare and Medicaid benefits to fill the prescriptions at area pharmacies. In total, Medicare and Medicaid paid approximately $1,657,461.15 for those prescriptions, Prasad admitted.
This case was investigated by the FBI, HHS-OIG, the Drug Enforcement Administration, the U.S. Department of Veterans Affairs and the Louisiana Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorney Jared Hasten of the Fraud Section and Assistant U.S. Attorney Sharan Lieberman of the Eastern District of Lousiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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Manchester Man Sentenced to 198 Months in Prison for Assaulting and Robbing a Victim During a Gun TransactionRead the Press Release
CONCORD- Anthony R. Farmer, 26, of Manchester, New Hampshire, was sentenced to 198 months in prison for assaulting and robbing an individual who was seeking to purchase firearms, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 21, 2017, the defendant and two co-defendants participated in the assault and robbery at gunpoint of a person who was assisting the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant and his co-defendants arranged for the victim to come to a residence in Nashua on the pretext that they would be illegally selling firearms to the victim. They then assaulted and robbed the victim of the money that was for the gun purchase. Because the victim was assisting federal agents, the victim had been equipped with audio and video surveillance equipment that recorded the robbery and assault. Soon after the crime occurred, the defendant and his co-defendants were arrested. They each had some of the money that had been taken from the victim.
Farmer pleaded guilty on August 20, 2018, to conspiracy, robbery, assault, use of a firearm during a crime of violence, and possession of a firearm by a convicted felon.
Co-defendant Raymond Perez was sentenced to 51 months. The third co-defendant, Aaron Sperow, was sentenced to 102 months in prison.
“Violent crime involving firearms is a grave threat to the safety of the public,” said U.S. Attorney Murray. “This substantial sentence shows that there will be serious consequences for those who choose to participate in crimes of violence. Through Project Safe Neighborhoods, we will continue to work with our law enforcement partners to protect our cities and towns from gun violence.”
“Today’s sentencing demonstrates law enforcement’s commitment to protect our communities from violent crime,” said ATF Special Agent in Charge Kelly D. Brady, ATF Boston Field Division. “ATF will continue to collaborate with our law enforcement partners to eradicate violent gun related crime and keep our neighborhoods safe.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nashua Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Dronzek.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Little Rock Man Pleads Guilty to Lying on Loan Applications, Lenders Lose $3.3 MillionRead the Press Release
LITTLE ROCK – A Little Rock man pleaded guilty today to making false statements on loan applications, costing banks and lenders over $3.3 million. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced the guilty plea of Marcus Shane Sweetin, 46, of Little Rock. Sweetin entered his plea earlier today before United States District Judge James M. Moody, Jr.
Sweetin pleaded guilty Thursday to an Information charging him with one count of making a false statement on a loan application. Sweetin operated Sweetin Farms LLC, which farmed two parcels of land in Arkansas County and Prairie County. In April 2013, Sweetin applied for a loan from AgHeritage Farm Credit Services that sought to recoup money his company allegedly spent acquiring a Case 290 Magnum Tractor. The tractor itself was to serve as collateral, and in support of the loan, Sweetin gave AgHeritage an invoice from an equipment dealer reflecting the tractor had been purchased outright and a copy of the company check that had supposedly been used to pay.
The tractor had not been purchased outright but had actually been financed through another lender. The real tractor bore a different serial number, and the check and invoice Sweetin provided in support of the loan were both fabricated. During his plea hearing, Sweetin acknowledged this was only one of several instances where he lied to lenders in order to secure loans for his farming operation. At various points, he sought purchase money for farming equipment financed elsewhere using fictitious serial numbers and invoices, he overstated farmable acreage and understated debt to secure crop loans, and he double pledged collateral. All told, these false statements secured loans that occasioned over $3.3 million in losses to AgHeritage, BancorpSouth, and Regions Bank.
Judge Moody will sentence Sweetin at a later date. Making false statements on loan applications is punishable by up to 30 years’ imprisonment. The case was investigated by the FBI and prosecuted by Assistant United States Attorney Alexander D. Morgan.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at http://www.justice.gov/edarTwitter: @EDARNEWS
Lead defendant gets 20-year sentence in major drug trafficking investigationRead the Press Release
SAVANNAH, GA: The lead defendant in a Statesboro drug trafficking conspiracy has been sentenced to 20 years in federal prison.
Natividad Dias, a/k/a as “Nat,” “Nate,” “Amigo” or “Huevos,” 46, a Mexican national who lived in Sylvania, Ga., was sentenced to 240 months in federal prison by Chief U.S. District Court Judge J. Randal Hall after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Dias also must pay a $10,000 fine and will serve an additional five years of supervised release after completion of his sentence. There is no parole in the federal system.
“By operating a pipeline of illegal narcotics from Atlanta, California and Mexico, this conspiracy polluted these small communities of the Southern District as surely as if it had dumped toxic waste in the neighborhoods,” said Christine. “The law-abiding residents saw something and said something – so we did something by bringing these drug traffickers to justice.”
Evidence in the case showed that Dias was a leader, organizer and recruiter of the conspiracy that distributed multi-kilogram quantities of methamphetamine, powder cocaine, and marijuana. During the operation, investigators seized kilograms of methamphetamine and multiple pounds of marijuana, along with multiple firearms.
Operation Icehawk, a joint federal, state and local investigation began in 2015, after citizens complained about drug trafficking and violent crime in Screven County, Ga., and soon uncovered a conspiracy to distribute methamphetamine and marijuana in Screven, Effingham, Jenkins, Bulloch and Evans counties.
In addition to Dias, other defendants in the operation include:
John Timothy Collins, 48, of Sylvania, Ga.;
John Kenneth Joyner, 47, of Sylvania, Ga.;
Palmer Alton Bazemore III, 51, of Sylvania, Ga.;
Cassie Jo Barbee, 36, of Sylvania, Ga.;
Jaime Elton Newsome, 39, of Statesboro, Ga.;
Megan Nicole Bazemore, 30, of Millen, Ga.;
Christina Elizabeth Davis, 32, of Sylvania, Ga.;
Derrick Riggs, 42, of Statesboro, Ga.;
Gary Paul Joyner, 51, of Sylvania, Ga.;
Monica Isabell Jimenez, 22, of Statesboro, Ga.;
Zackary Allen Durrence, 26, of Statesboro, Ga.;
John Dillon Joyner, 25, of Sylvania, Ga.;
Jonathan Travis Oliver, 36, of Sylvania, Ga.;
Michael Shane Bishop, 44, of Claxton, Ga.;
Jonathon Evan Oglesby, 27, of Millen, Ga.;
Alfred Anthony Woods, 28, of Sylvania, Ga.; and,
Noah Quinn Pope, 25, of Sylvania, Ga.
The 19th defendant named in the indictment currently is undergoing a medical evaluation.
“We are fortunate in the Southern District of Georgia to have such a hard-charging group of local, state and federal personnel pursuing the real bad guys,” said Jamie Jones, Special Agent in Charge of the Georgia Bureau of Investigation (GBI) Southeastern Regional Drug Enforcement Office. “Drug distributors poison and disrupt families across the state daily. This organization has been terminated, and hopefully some families will benefit from their demise.”
Robert J. Murphy, the Special agent in Charge of the Drug Enforcement Agency Atlanta Field Division stated, “This defendant infested a number of small communities with more than methamphetamine and marijuana. His drug trafficking activities also led to the spread of violent crime. Thanks to our federal, state and local law enforcement partners who responded to this small communities’ call for help. As a result, this poly-drug trafficker was removed from the streets and will spend well-deserved time in prison. This case is a shining example of how success can be achieved when local, state, federal law enforcement agencies and the U.S. Attorney’s Office work together make our communities safer.”
“This case is collaborative effort to rid violent narcotics traffickers from Screven County,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Methamphetamine and other drugs have devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area,” said Homeland Security Investigations (HSI) Atlanta Special Agent in Charge Nick S. Annan. “This sentencing stems from an extensive collaborative effort between federal, state and local enforcement partners to disrupt a drug trafficking organization responsible for flooding southern Georgia with these dangerous substances. This operation is a testament to the seamless partnership between federal, state and local law enforcement agencies serving the citizens and communities of Georgia.”
This case is being prosecuted as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, the premier U.S. Department of Justice program utilized to dismantle multi-jurisdictional drug trafficking organizations.
The investigation was a joint operation of federal agencies including the DEA, HIS, ATF, and the U.S. Postal Inspection Service (USPIS). Participating state agencies included the GBI, Georgia State Patrol, Georgia Department of Natural Resources, and the Ogeechee Judicial Circuit District Attorney’s Office. Local law enforcement included the Screven County Sheriff’s Office, Sylvania Police Department, Effingham County Sheriff’s Office, Jenkins County Sheriff’s Office, Bulloch County Sheriff’s Office, Evans County Sheriff’s Office; and the Claxton Police Department.
Assistant United States Attorney Marcela C. Mateo is prosecuted the case for the United States.
Law enforcement and a community member honored by U.S. Attorney at awards ceremonyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eight law enforcement entities and one community member were recognized today for their outstanding work in the greater Clarksburg/Elkins area.
United States Attorney Bill Powell recognized U.S. Probation Officer Jill Henline, ATF Special Agent Steve Worthy, U.S. Postal Inspection Service Inspector Ryan Amstone, several other law enforcement professionals, and a community member with U.S. Attorney Awards for their contributions to create safer communities.
“I have the great pleasure to work many law enforcement and other community based professionals. We honor these individuals and groups today because they are “difference makers” in our communities. They represent the best of us, and our communities are better because of their extraordinary work,” said Powell.
United States Probation Officer Jill Henline was recognized for her work to ensure that a defendant paid her restitution after committing a crime. Loretta Reckart was convicted and sentenced for defrauding WVU out of a substantial amount of money. She was ordered to pay restitution in excess of $80,000. She was sentenced to probation and Jill Henline is her probation officer. Henline has went above and beyond to ensure that Reckart’s restitution is paid sooner, rather than later. Henline was the recipient of the U.S. Attorney Award for Outstanding Financial Investigation.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent Steve Worthy has been involved in three multi-defendant Organized Crime Drug Enforcement Task Force Program (OCDETF) cases. Agent Worthy assisted other investigators in OCDETF’s Ice Mountain investigation, which resulted in a 2016 Elkins Division multi-defendant gun and drug trafficking indictment. He took a leading role in OCDETF’s Shattered Glass investigation, which resulted in two 2017 Elkins Division multi-defendant gun and drug trafficking indictments. He was the case agent at the trial of interstate drug trafficker Rocky Idleman, sentenced to life earlier this year. And Agent Worthy took the leading role in 2018’s ICE Dragon investigation which resulted in a 2018 multi-defendant Clarksburg Division gun and drug trafficking indictment. Agent Worthy’ was the recipient of the 2019 Outstanding Investigative Effort Award.
United States Postal Inspection Service Inspector Ryan Amstone has been working with the U.S. Attorney’s Office for the Elder Justice Initiative’s focus on money mules. With Ryan’s assistance, the office has identified people as money mules. Ryan has done six knock-and-talks on these individuals and explained to them that they may be a victim of a scam and to stop sending money. Amstone has been doing excellent work in this area as the Elder Justice Initiative is one of the Department’s priorities. Amstone was awarded the 2019 Outstanding Initiative Support Award for his efforts.
The case against Meylan Montalvo Gomez, et al, with an investigation conducted jointly by the FBI, the USSS, the DHS, the WVSP, and the Monongalia County Sheriff’s Office, discovered what has become known as a gas station skimmer scheme. The victim cardholders were reimbursed by their banks, causing nine banks to be owed over $100,000. Because of the substantial work on this case, the 2019 Outstanding Fraud Investigative Effort Award was given to:
- Detective William “Pete” Tennant, Monongalia County Sheriff’s Office
- Sgt. David Simmons, West Virginia State Police
- Task Force Officer Jason Webber, the FBI/Clarksburg Police Department
- Task Force Officer Jeremy Thompson, the United States Secret Service/South Charleston Police Department
- Special Agent Scott Fell, Department of Homeland Security
A victim’s mother was also honored with the 2019 Outstanding Community Service Award for her efforts in an opioid case.
The ceremony was held in U.S. Bankruptcy Judge Patrick M. Flatley’s courtroom and included remarks from U.S. Attorney Bill Powell and the presence of many local, state and federal law enforcement leaders from throughout West Virginia.
Law Enforcement Officers Indicted for Extortion and FraudRead the Press Release
BROWNSVILLE, Texas – Two former deputies with the Cameron County Precinct 5 Constable’s Office have been arrested and charged with conspiracy to commit extortion under color of official right and wire fraud, announced U.S. Attorney Ryan K. Patrick.
Benito De La Cruz Jr., 45, of San Benito, and Armando Gonzalez Jr., 31, of Weslaco, are still in law enforcement but not currently affiliated with Precinct 5.
A federal grand jury returned the 12-count indictment under seal May 28. They were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Ronald Morgan at 10:30 a.m. tomorrow.
The indictment alleges the De La Cruz and Gonzalez unlawfully ran license plate and criminal history checks. They allegedly performed or asked others to perform these law enforcement database checks in return for money or gifts.
De La Cruz is also charged with five counts of making false statements to federal officers. The indictment alleges he was not truthful when the FBI special agent interviewed him about the scheme. De La Cruz allegedly made these false statements in five separate instances during his interview.
If convicted, the men face up to 20 years in federal prison for extortion or wire fraud and a maximum five years for the conspiracy. De La Cruz also faces a potential sentence of five years for each count of making false statements, upon conviction. The charges also carry a potential $250,000 maximum fine.
The FBI, Cameron County District Attorney’s Office, Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and the Texas Rangers conducted the Organized Crime Drug Enforcement Task Force investigation. The Harlingen Police Department also assisted with the arrests. Assistant U.S. Attorneys Jody Young, Oscar Ponce and Robert Johnson are 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.Larry Steven Covington Jr. Sentenced to Serve 15 Years in Federal Prison for Assaulting a Federal Officer, Illegally Possessing a Firearm and Failure to SurrenderRead the Press Release
KNOXVILLE, Tenn. - On May 29, 2019, Larry Steven Covington Jr., 40, of Knoxville, Tennessee, was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Court Judge, to serve 180 months in federal prison. Covington pleaded guilty on May 28, 2019, to an information charging him with assault upon a federal officer, possession of a firearm by a convicted felon and failure to surrender for service of sentence.
According to the plea agreement on file with U.S. District Court, in April 2018, Covington was sentenced in U.S. District Court to serve 46 months in federal prison. He was released on bond pending designation by the federal Bureau of Prison (BOP). A few days after his sentencing hearing, he received a letter from BOP instructing him to report to FCI Berkley in West Virginia on May 2, 2018. Covington signed the letter at the U.S. Marshals Service acknowledging his report date. However, on May 2, 2018, Covington failed to report to FCI Berkley and a warrant was issued for his arrest.
On July 2, 2018, Covington and his girlfriend, Pennie Smith, drove to the U.S. Post Office on Weisgarber Road in Knoxville to pick up a package. Smith had been harboring Covington since he failed to report to BOP custody. Deputy U.S. Marshals had previously received a tip that Covington would be at the post office and were surveilling the parking. Smith went into the post office to retrieve the package while Covington waited in the vehicle. Deputy U.S. Marshals surrounded the vehicle, identified themselves as law enforcement, and ordered Covington out of the car. Instead of exiting, Covington drove forward onto the sidewalk in an attempt to get away. A Deputy U.S. Marshal blocking the sidewalk was forced to jump out of the direct line of the vehicle to avoid being struck. Covington fled in the vehicle and drove at speeds close to 100 mph until he reached his mother’s neighborhood and fled to a friend’s house who allowed him to hide in his crawl space. Covington was ultimately located in the crawl space by law enforcement and taken into custody. A search of his vehicle turned up three guns and ammunition.
This investigation was conducted by the U.S. Marshal Service and FBI. Assistant U.S. Attorney Jennifer Kolman represented the United States in court proceedings.
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Kansas Cardiologist and His Practice Pay $5.8 Million to Resolve Alleged False Billings for Unnecessary Cardiac ProceduresRead the Press Release
Joseph P. Galichia M.D., a Wichita, Kansas, cardiologist, has agreed to pay $5.8 million to resolve allegations that he and his medical group, Galichia Medical Group, P.A. (GMED), violated the False Claims Act by improperly billing federal health care programs for medically unnecessary cardiac stent procedures, the Department of Justice announced. Galichia also agreed to a three-year period of exclusion from participation in any federal health care program. The settlement relates to a lawsuit in which the United States intervened on Dec. 12, 2014.
“This settlement reflects the Department of Justice’s commitment to ensuring the safety of federal health care program beneficiaries and that taxpayer monies are properly spent,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.
“Patient safety is critically important,” said U.S. Attorney Stephen McAllister for the District of Kansas. “Performing medically unnecessary procedures puts patients at risk and defrauds federal health care programs.”
“When a physician bills the government for medically unnecessary procedures, both patients’ health and taxpayers can end up paying the price,” said Special Agent in Charge Steve Hanson of the Office of Inspector General for the U.S. Department of Health and Human Services. “OIG is excluding Dr. Galichia from participation in Medicare, Medicaid, and other federal health care programs, and we will continue to work with our partners to protect the health and welfare of Medicare beneficiaries.”
The government contended that Galichia and GMED knowingly submitted false billings from Jan. 1, 2008, through Dec.31, 2014, for surgical procedures in which Galichia implanted coronary stents that were not medically necessary. The allegedly false billings were submitted to Medicare, the Defense Health Agency, and the Federal Employees Health Benefits Program.
This is the government’s third False Claims Act settlement with Galichia and GMED. In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation. In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted claims for a higher level of service than provided, billed twice for the same services, and billed for services not provided.
The settlement announced resolves allegations in a lawsuit filed by Aly Gadalla M.D., in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Dr. Gadalla will receive approximately $1.16 million.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the U.S. Attorney’s Office for the District of Kansas and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG, the FBI, the Defense Health Agency on behalf of the TRICARE program, the Defense Criminal Investigative Service of the Inspector General for the Department of Defense, and the Office of Personnel Management, Office of Inspector General.
The case is captioned United States ex rel. Gadalla v. Dr. Joseph Galichia, et al., Case No. 12-1259 (D. Kan.). The claims resolved by the settlements are allegations only and there has been no determination of liability
Kansas Cardiologist and His Practice Pay $5.8 Million to Resolve Alleged False Billings for Unnecessary Cardiac ProceduresRead the Press Release
Joseph P. Galichia M.D., a Wichita, Kansas, cardiologist, has agreed to pay $5.8 million to resolve allegations that he and his medical group, Galichia Medical Group, P.A. (GMED), violated the False Claims Act by improperly billing federal health care programs for medically unnecessary cardiac stent procedures, the Department of Justice announced. Galichia also agreed to a three-year period of exclusion from participation in any federal health care program. The settlement relates to a lawsuit in which the United States intervened on Dec. 12, 2014.
“This settlement reflects the Department of Justice’s commitment to ensuring the safety of federal health care program beneficiaries and that taxpayer monies are properly spent,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.
“Patient safety is critically important,” said U.S. Attorney Stephen McAllister for the District of Kansas. “Performing medically unnecessary procedures puts patients at risk and defrauds federal health care programs.”
“When a physician bills the government for medically unnecessary procedures, both patients’ health and taxpayers can end up paying the price,” said Special Agent in Charge Steve Hanson of the Office of Inspector General for the U.S. Department of Health and Human Services. “OIG is excluding Dr. Galichia from participation in Medicare, Medicaid, and other federal health care programs, and we will continue to work with our partners to protect the health and welfare of Medicare beneficiaries.”
The government contended that Galichia and GMED knowingly submitted false billings from Jan. 1, 2008, through Dec.31, 2014, for surgical procedures in which Galichia implanted coronary stents that were not medically necessary. The allegedly false billings were submitted to Medicare, the Defense Health Agency, and the Federal Employees Health Benefits Program.
This is the government’s third False Claims Act settlement with Galichia and GMED. In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation. In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted claims for a higher level of service than provided, billed twice for the same services, and billed for services not provided.
The settlement announced resolves allegations in a lawsuit filed by Aly Gadalla M.D., in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Dr. Gadalla will receive approximately $1.16 million.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the U.S. Attorney’s Office for the District of Kansas and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG, the FBI, the Defense Health Agency on behalf of the TRICARE program, the Defense Criminal Investigative Service of the Inspector General for the Department of Defense, and the Office of Personnel Management, Office of Inspector General.
The case is captioned United States ex rel. Gadalla v. Dr. Joseph Galichia, et al., Case No. 12-1259 (D. Kan.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
KC Man Sentenced to 14 Years for Heroin TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin.
Michael R. Davis, also known as “OG Mike,” 73, was sentenced by U.S. District Judge Greg Kays to 14 years and two months in federal prison without parole.
On May 4, 2018, Davis pleaded guilty to participating in a conspiracy to distribute heroin from October 2012 to September 2016. The drug quantity attributable to Davis is at least one kilogram but less than three kilograms of heroin. (The street value of heroin during this time was approximately $100 to $200 per gram).
Davis was seated in the driver’s seat of a vehicle parked in front of a Kansas City, Mo., residence on Nov. 5, 2015, when police officers conducted a car check. Co-defendant Barbara A. Chinneth, 68, of Kansas City, Mo., was standing at the driver’s side door of the vehicle. She was in possession of 32 baggies of heroin – four baggies in her front right small jeans pocket and 28 baggies in her mouth – that weighed a total of 16.01 grams. Inside the vehicle, officers found three baggies that contained a total of 1.71 grams of heroin and a white plastic bag that contained $1,146. Both Davis and Chinneth were arrested.
Davis has 14 prior criminal convictions, including two federal drug trafficking convictions and a bank robbery in which the bank president was shot in the arm and another individual was fatally shot in the head.
Davis is the final defendant among five defendants who pleaded guilty and have been sentenced in this case. Chinneth was sentenced to nine years in federal prison without parole. Sidney A. Williams, 65, of Kansas City, Mo., was sentenced to 15 years and eight months in federal prison without parole (followed by a lifetime of supervised release). Scheronn Scott, also known as “Mo,” 53, of Kansas City, Mo., was sentenced to 17 years in federal prison without parole. Lloyd Taylor, also known as “Tulu,” 68, of Kansas City, Mo., was sentenced to five years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Justice Department Requires Amcor to Divest Medical Flexible Packaging Assets in Order to Proceed with Bemis AcquisitionRead the Press Release
The Department of Justice announced today that Amcor Limited will be required to divest three manufacturing facilities and other assets in order to proceed with its $6.8 billion acquisition of Bemis Company Inc. The Department said that, without the divestiture, the proposed acquisition would eliminate competition between two of only three significant suppliers of three medical packaging products that are critical to the safe transportation and use of medical devices.
The Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.
“The medical packaging products that Amcor and Bemis manufacture are integral to the safe sterilization, transportation, and use of medical devices in hospitals, medical offices, and labs around the country,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement, which requires Amcor to divest its medical flexible packaging business at these three facilities, will ensure that medical care providers continue to benefit from competition for these critical products.”
According to the Department’s complaint, Amcor and Bemis both supply three types of heat-seal, coated medical packaging products critical to the safe transportation and use of medical devices: medical-grade Tyvek rollstock, medical-grade paper rollstock, and medical-grade Tyvek die-cut lidding. Due to Amcor’s and Bemis’s collective overall expertise in meeting the needs of doctors and hospitals, Amcor and Bemis are two major competitors supplying these products. According to the complaint, the combination of Amcor and Bemis would eliminate head-to-head competition between the companies in the markets for these products and threaten the benefits that medical care providers have realized from that competition in the form of lower prices and better service.
Under the terms of the proposed settlement, Amcor must divest manufacturing facilities located in Ashland, Massachusetts; Milwaukee, Wisconsin; and Madison, Wisconsin; along with certain related assets, to Tekni-Plex Inc., or an alternate acquirer approved by the United States. Tekni-Plex is an international leader in flexible films and medical supplies.
Amcor, headquartered in Zurich, Switzerland, had total sales of over $9 billion in 2018, including approximately $288 million in sales of flexible packaging for medical use in the United States.
Bemis, a Missouri corporation headquartered in Neenah, Wisconsin, had total sales of over $4 billion in 2018, including approximately $260.9 million in sales of flexible packaging for medical use in the United States.
As required by the Tunney Act, the proposed consent decree, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Indictment: So-called ‘Glock switches’ Would have Turned Pistols into Machine GunsRead the Press Release
TOPEKA, KAN. – A Topeka man is facing federal charges after he imported devices from China that for $19 a piece can turn a Glock pistol into a fully automatic machine gun, U.S. Attorney Stephen McAllister said today.
The defendant was indicted yesterday in U.S. District Court in Topeka.
Jacob Gragg, 33, Topeka, Kan., is charged in a four-count indictment with one count of unlawful possession of a machine gun, one count of unlawful possession of an unregistered machinegun, one count of unlawful possession of an explosive and one count of possession with intent to distribute marijuana.
The indictment alleges investigators seized seven so-called “Glock switches” and half a pound of Tannerite, which is a binary explosive, from Gragg. Gragg bought the Glock switches from a company in Shenzhen, Gaundong Province, China. On a website, the company advertised the “Glock Auto Switch,” saying the product would convert all models of Glock pistols to “Full Auto.” The device operates by applying force to the trigger bar to prevent it from limiting the weapon to firing only one round each time the trigger is depressed.
The indictment alleges Gragg was prohibited from possessing the explosive because he had prior felony convictions in Shawnee County District Court and Morris County District Court.
If convicted, he faces the following penalties:
Unlawful possession of a machine gun (count one) and unlawful possession of an explosive by a prohibited person (count three): Up to 10 years in federal prison and a fine up to $250,000
Possession of an unregistered machine gun (count two): Up to 10 years and a fine up to $10,000.
Possession with intent to distribute marijuana: Up to five years and a fine up to $250,000.
Investigating agencies included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Topeka Police Department and the Shawnee County Sheriff’s Office. Assistant U.S. Attorney Skip Jacobs is prosecuting.
OTHER INDICTMENTs
Omar Urista, 22, Topeka, Kan., is charged with one count of carjacking. The crime is alleged to have occurred April 4, 2019.
The indictment alleges Urista used force to steal a 2003 Chevrolet Tahoe from its owner.
If convicted, he faces up to 15 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment: Kansas Couple Stole Millions in Check Kiting SchemeRead the Press Release
TOPEKA, KAN. - The owners of the Plainville Livestock Commission in Rooks County are charged with carrying out a check kiting scheme that cost banks millions of dollars, U.S. Attorney Stephen McAllister said today.
A grand jury in Topeka returned the indictment Wednesday.
Tyler Gillum, 47, and his wife, Camden Gillum, 50, both of Plainville, Kan., are charged with 31 counts of bank fraud, one count of making a false statement to the Small Business Administration in an application for a $1.5 million loan, and one count of making a false statement to Almena State Bank in an application for a $500,000 line of credit.
The indictment alleges the Gillums defrauded Almena State Bank in Almena, Kan., Landmark Bank in Manhattan, Kan., Colorado East Bank and Trust in Lamar, Colo., Astra Bank in Scandia, Kan., TBK Bank in Dallas, Guaranty State Bank in Beloit and The Bank in Oberlin, Kan.
The indictment alleges investigators examined unfunded checks and wire transfers totaling more $2 billion sent by Tyler Gillum as part of the scheme. That included 409 wire transfers and 7,584 checks. Tyler Gillum, formerly a loan officer for Montezuma State Bank, owned and operated with his wife Plainville Livestock Commission. In advertisements for the business, they said: “The sale barn facility was first established in 1950 and is situated in the heart of Cow-Calf Country. We pride ourselves in offering individualized attention to marketing your livestock.”
The indictment defines check kiting as a form of check fraud that takes advantage of the time between presentment of a check and the actual receipt of funds (“the float”) to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow written checks to clear that otherwise would bounce.
Investigating agencies included the U.S. Department of Agriculture – Office of Inspector General, the FBI, the Federal Deposit Insurance Corporation – Officer of Inspector General, the Federal Housing Finance Agency – Office of Inspector General and the U.S. Small Business Administration – Office of Inspector General. Assistant U.S. Attorney Rich Hathaway is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indian National Sentenced to More Than Seven Years in Federal Prison for Call Center ScamRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Sharvil Patel (23, Tampa) to seven years and six months in federal prison for conspiracy to commit wire fraud, relating to his participation in an India-based call center scam. As part of his sentence, the court also entered a money judgment of $80,000.
Patel had pleaded guilty on February 6, 2019.
According to court documents, from 2014 through at least 2016, Patel conspired with U.S.-based coconspirators and India-based call centers to extort money from U.S. residents by impersonating IRS officers and misleading victims to believe that they owed money to the IRS and would be arrested and fined if they did not pay their alleged back taxes immediately. The conspirators collected the fraud proceeds by (1) withdrawing cash from prepaid cards purchased and funded by victims; (2) hiring other conspirators (runners) to retrieve money wired by the victims to those runners; and/or (3) hiring runners to open bank accounts into which victims deposited fraud proceeds. The defendants collected the proceeds by providing the runners with the victims’ names, locations, and amounts paid. The runners were directed to retrieve the fraud proceeds in cash and turn the funds over to the defendants, often less a payment to the runner for opening the account or conducting the transaction.
Four others previously pleaded guilty for their roles in the scheme. In March 2019, Alejandro Juarez was sentenced to 15 months in federal prison and Nishitkumar Patel was sentenced to 8 years and 9 months in federal prison. In April 2019, Hemalkumar Shah was sentenced to 8 years and 6 months in federal prison and Brenda Dozier was sentenced to 21 months in federal prison.
“As a proud IRS Special Agent of 20 years, this fraud infuriates me,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigations Tampa Field Office. “We here at IRS CI recognize the heartache and concern these crooks cause innocent people. This is why we are eager to team up with our law enforcement partners to track down these impersonators in whatever corner of the globe they may be hiding.”
“This terrible scam took advantage of people who wanted to comply with what they thought were proper authorities,” said FDLE’s Tampa Special Agent in Charge Mark Brutnell. “Thank goodness, investigators from several agencies were able to put an end to it and those responsible will no longer be able to mislead innocent people.”
“Over the last several years, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees,” said J. Russell George, Treasury Inspector General for Tax Administration. “Victimizing taxpayers by impersonating IRS employees is a serious crime,” George continued. “TIGTA and our law enforcement partners will continue working to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. This significant sentencing should serve notice to those who engage in this type of criminal activity that they will be held accountable.”
This case was investigated by the Treasury Inspector General for Tax Administration, the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, Homeland Security Investigations, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
Independence Woman Sentenced for Fraud Scheme, Identity TheftRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., woman was sentenced in federal court today for stealing the identities of relatives and acquaintances to file fraudulent tax returns.
Sheryl D. Hughes, 41, was sentenced by U.S. District Judge Howard F. Sachs to three years in federal prison without parole. The court also ordered Hughes to pay $7,045 in restitution to her victims.
On June 8, 2018, Hughes pleaded guilty to one count of mail fraud and one count of aggravated identity theft.
Hughes obtained Social Security numbers from several relatives and acquaintances and used them to prepare false and fraudulent individual income tax returns. The income tax returns included false information concerning, among other things, income earned, federal income tax withheld, false education credits, and false and fraudulent claims for income tax refunds. Hughes also used false addresses to have the tax refund checks mailed to an address accessible to her, or for refunds to be made by electronic transfers to debit cards or bank accounts accessible to her.
This case was prosecuted by Assistant U.S. Attorney Tom Larson. It was investigated by IRS-Criminal Investigation.
Illegal Alien Sentenced After Sixth Illegal Entry into the U.S.Read the Press Release
ALEXANDRIA, Va. – A Guatemalan man who has illegally entered the United States six times, was sentenced today to prison for his second conviction for illegally entering the United States.
“Sanchez-Velasquez has illegally crossed the southern border of the United States six times in under two years,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Undeterred by numerous prior illegal reentry convictions, Sanchez-Velasquez has clearly demonstrated his total disregard for our nation’s laws and continues to break them time and time again.”
According to court documents, Alexis Leonel Sanchez-Velasquez, 26, reentered the United States after having been removed on five prior occasions. On April 7, 2013, Sanchez-Velasquez was apprehended by U.S. Border Patrol near La Joya, Texas, for illegally entering the United States. He was removed at taxpayers’ expense on April 12, 2013. On June 5, 2013, Sanchez-Velasquez was again encountered crossing the border near Loredo, Texas, not two months since being removed to Guatemala. He was again removed to Guatemala on June 17, 2013. He illegally returned again three months later and was subsequently removed to Guatemala on Sept. 24, 2013. Three months later, Sanchez-Velasquez was apprehended yet again for illegal reentry and removed on Dec. 27, 2013, for the fourth time. He was removed for a fifth time in July 2014 after illegally reentering a month prior.
He reentered the United States sometime after July 2014 and worked illegally for the past five years. On March 29, Sanchez-Velasquez was arrested for driving under the influence and was later convicted of that offense.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. District Judge Liam O’Grady sentenced Sanchez-Velasquez to 60 days in prison. Assistant U.S. Attorney Carina A. Cuellar and Special Assistant U.S. Attorney Patrick D. Reid prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-004.
Hyperbaric Oxygen Therapy Facility Agrees to Pay the United States over $400,000 to Settle False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – HyperHeal Hyperbarics, Inc. (“HyperHeal”) has agreed to pay $414,640.25 to settle claims that it submitted false claims to the United States for physician services that were not rendered and for medically unnecessary hyperbaric oxygen therapy. HyperHeal is a hyperbaric oxygen therapy facility that provides hyperbaric oxygen therapy to patients at multiple locations in Maryland.
The settlement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Services, Mid-Atlantic Division.
“The U.S. Attorney’s Office for the District of Maryland is committed to thoroughly investigating claims of fraud and holding health care providers accountable when they subject their patients to unnecessary medical treatment and waste taxpayer dollars.” said U.S. Attorney Robert K. Hur.
According to the settlement agreement, the United States contends that from March 2013 to November 2014, HyperHeal submitted claims for one patient to TRICARE for hyperbaric oxygen therapy as if that therapy were supervised by a physician when, in fact, no physician supervised the therapy. HyperHeal, through its former president and part-owner, Eric Shapiro, prepared bills indicating that the therapy was supervised by a physician when it was not supervised by a physician. During the same time period and for the same patient, HyperHeal submitted claims to TRICARE for medically unnecessary hyperbaric oxygen therapy. No qualified medical professional evaluated the patient’s condition throughout the treatment. Instead, Shapiro, who was a hyperbaric oxygen therapy technician, directed the patient’s treatment and obtained authorization for continued treatment by sending misleading documents to TRICARE.
The settlement resolves a lawsuit brought by whistleblowers, Lesa Schrum and Juliette Skelton, who are former employees of HyperHeal. The lawsuit, which was filed in the District of Maryland in 2016, alleges that HyperHeal and Shaprio submitted or caused the submission of false claims to the United States for hyperbaric oxygen therapy services that were not medically necessary, for hyperbaric oxygen therapy services that were not properly supervised by a physician, and for hyperbaric treatment which was not provided. As part of the settlement, the whistleblowers will receive $74,635.25.
The claims resolved by this settlement are allegations only. The settlement is not an admission of liability by HyperHeal, nor a concession by the United States that its claims are not well founded.
U.S. Attorney Robert K. Hur commended the Defense Criminal Investigative Service for its investigation and thanked Assistant United States Attorneys Matthew P. Phelps and Roann Nichols, who handled the case.
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Honduran National Pleads Guilty to False Statement in Passport ApplicationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO, age 41, a citizen of Honduras, pled guilty to a one-count bill of information with making a false statement in a U.S. passport application, in violation of 18 U.S.C. ' 1542.
According to the bill of information, WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO falsely stated in the application that his name was Omar Orlando Cuadrado when in fact he is Wilmer Adonys Osorto.
WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for June 13, 2019.
U.S. Attorney Strasser praised the work of the United States Department of State Diplomatic Security Service in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Hoboken Man Admits Conspiring to Promote A Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, man today admitted his role in a conspiracy to promote a voter bribery scheme during a municipal election, U.S. Attorney Craig Carpenito announced.
Dio Braxton, 43, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiring with Frank Raia and others to use the mail to promote a voter bribery scheme during the 2013 municipal election in Hoboken.
According to documents filed in this case and statements made in court:
Braxton and others, at Raia’s direction, participated in a scheme to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots in support of Raia’s city council campaign and a rent control referendum that Raia supported. Braxton and others working for Raia provided voters with vote-by-mail applications and then either mailed or delivered the completed applications to the Hudson County Clerk’s office. After the voters completed mail-in ballots, Braxton and others working for Raia either mailed or delivered them to the Hudson County Clerk’s Office.
After the election, Braxton and others handed out $50 checks to voters from an entity hired by Raia’s Political Action Committee. Before handing the checks to voters, Braxton and others working for Raia required the voters to sign declarations stating that they had worked for the campaign. In reality, many of these voters never actually worked for the campaign and these declarations were merely a way for Braxton, Raia, and others to hide the fact that the voters had been paid for their votes.
Braxton faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 10, 2019.
Raia was previously indicted on the same charge and is awaiting trial. The charge against him is merely an accusation, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, 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 Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Vincent J. LaPaglia Esq., Hoboken
High-Level Member of Chicago Gang Arrested on Federal Drug ChargesRead the Press Release
CHICAGO — A high-level member of the Four Corner Hustlers street gang has been arrested on federal drug charges for allegedly selling wholesale quantities of heroin on the West Side of Chicago.
RAYMOND BETTS, 52, of Riverdale, is charged with conspiracy to possess a controlled substance with the intent to distribute. A criminal complaint filed in federal court in Chicago accuses Betts of selling or directing sales of heroin on eight occasions from December 2018 to March 2019. Seven of the alleged sales occurred in the Austin neighborhood of Chicago, while one deal was allegedly conducted in south suburban Riverdale.
Two other alleged members of the gang are also charged in the conspiracy: ANGELA BELL, 48, of Chicago, and MAURICE WILLIAMS, 50, of Riverdale. All three defendants were arrested Wednesday. Bell will appear for a detention hearing on Friday at 1:30 p.m. before U.S. Magistrate Judge Sunil R. Harjani in Chicago. Judge Harjani scheduled detention hearings for Williams and Betts for Monday at 2:45 p.m.
The charges and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Thomas J. Dart, Cook County Sheriff; and Eddie Johnson, Superintendent of the Chicago Police Department. Assistant U.S. Attorneys Katie M. Durick and Kalia Coleman represent the government.
The multi-year investigation was conducted with the Organized Crime Drug Enforcement Task Force (OCDETF) and the High Intensity Drug Trafficking Area Task Force (HIDTA). The mission of the task forces, which are comprised of agents and officers from numerous federal, state and local law enforcement agencies, is to identify, disrupt, and dismantle the most serious drug trafficking organizations.
According to the complaint, Betts operates a drug trafficking organization comprised of members or associates of the Four Corner Hustlers. Betts is a high-ranking member of the gang and the only one to hold the title of “Prince,” according to the complaint. Betts is also the founder and leader of an enforcement or security faction of the Four Corner Hustlers known as the “Body Snatchers,” the complaint states.
The complaint describes eight transactions for a total of approximately 136 grams of heroin. The seven deals in Chicago allegedly occurred in the 5300 block of West Washington Boulevard, while the Riverdale transaction occurred in an alley near the 13800 block of South Edbrooke Avenue in the south suburb, according to the complaint. Unbeknownst to the defendants, the buyer was confidentially working on behalf of law enforcement, the complaint states.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy charge is punishable by up to 40 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Henry County man charged with coercion and/or enticement for allegedly attempting to persuade several Asian minors he met online to engage in sexual activityRead the Press Release
A Henry County man was charged in federal court with one count of coercion and/or enticement for allegedly attempting to persuade several Asian minors he met online to engage in sexual activity.
Thomas E. Oberhaus, 56, of Napoleon, is accused of engaging in this behavior between 2013 and 2016, according to the criminal information.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
An information is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Gulfport Man Pleads Guilty to Drug Conspiracy and Possession of a Firearm by a FelonRead the Press Release
Gulfport, Miss. – Anthony Derrick Hayes, 57, of Gulfport, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr. to conspiracy to distribute oxycodone and to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration.
On November 20, 2018, Hayes was stopped in a vehicle after agents learned that he was on his way to distribute oxycodone painkillers. Hayes refused to exit the vehicle and began fumbling with his waistband. Officers retrieved a pistol from his waistband. Hayes, who has multiple prior felony convictions, was transported to the Harrison County Adult Detention Center and began making a series of phone calls to other individuals to complete oxycodone transfer deals.
On January 25, 2019, Hayes was charged in a federal criminal indictment.
Hayes will be sentenced on August 22, 2019 by Judge Guirola, and faces a maximum penalty of 30 years in prison and a $1,250,000 fine.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.
Guatemalan citizen living in New Philadelphia previously convicted of creating fake identity documents indicted for making false claim of citizenship and illegally reentering the U.S.Read the Press Release
A Guatemalan man living in New Philadelphia was indicted for making a false claim of United States citizenship, as well as illegally reentering the country.
Julio Tzip-Yac, 40, aka Jean Carlos Mercado-Alvarez and Luis O. Hernandez, falsely represented himself to be a U.S. citizen on May 25, 2018. He was able to obtain an Ohio driver’s license while falsely using the identity of an individual in Puerto Rico, according to court documents.
Tzip-Yac was found to be in New Philadelphia on May 25, 2018, despite having been previously deported. Tzip-Yac was previously sentenced to more than three years in federal prison after being found guilty of one count of possession of a document making implement and four counts of transfer of identification documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Damoun Delaviz following an investigation by the Immigration and Customs Enforcement -- Homeland Security Investigations, with assistance from the U.S. Citizenship and Immigration Services, Ohio State Highway Patrol, Federal Bureau of Investigation and New Philadelphia Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Goffstown Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Jonathan Felch, 37, of Goffstown, pleaded guilty in federal court to participating in a fentanyl drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing drug trafficking investigation that included court-authorized wiretaps, agents and task force officers with the Drug Enforcement Administration learned that Felch regularly obtained fentanyl from a source in Lawrence, Massachusetts and then sold the fentanyl in New Hampshire.
On April 6, 2018, investigators learned that Felch intended to travel from New Hampshire to Lawrence to purchase drugs. Agents conducted surveillance of Felch and observed him meet with another individual in Lawrence. Later that day, Felch returned to New Hampshire in a vehicle that was stopped in Manchester for a motor vehicle violation. Officers later located approximately 18 grams of fentanyl and a digital scale in the vehicle.
Felch is scheduled to be sentenced on September 12, 2019.
“Interstate fentanyl traffickers make a deadly drug available for sale in New Hampshire,” said U.S. Attorney Murray. “The results have been disastrous. It is imperative that we stop the flow of fentanyl into the Granite State by arresting and prosecuting those who engage in this dangerous activity .”
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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Four People Charged with Credit Card ‘Bust Out’ Scheme to Defraud BanksRead the Press Release
NEWARK, N.J. – Four people were arrested today in connection in a scheme to defraud banks by using stolen and altered identities to fraudulently obtain credit cards and then using those cards to make over $2.5 million in charges that were never repaid, U.S. Attorney Craig Carpenito announced.
Shahid Akhtar, 42, of Linden, New Jersey; Tassadiq Hussain, 70, of Sayreville, New Jersey; Asif Ali, 39, of Carteret, New Jersey; and Mohammad Mushtaq, 54, of Valley Stream, New York; are each charged by complaint with one count of conspiring to defraud financial institutions. The defendants are scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to documents filed in this case and statements made in court:
The defendants engaged in a scheme to use stolen and altered identities to obtain credit cards from financial institutions and then use those credit cards to make purchases that they had no intention to repay, leaving the financial institutions to bear the losses.
The defendants and their conspirators used the personally identifying information of actual people, including dates of birth, drivers’ license numbers, and Social Security numbers, to create “synthetic identities,” sometimes by pairing the name and Social Security number of actual person with a fictitious birthdate, and sometimes by pairing the person’s Social Security number with a fictitious name and birthdate. They often used the name and Social Security number of a minor and altered the birthdate to make the identity appear to be that of an adult.
The defendants and their conspirators then used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at financial institutions (the “fraud cards”). The fraud cards were maintained in good standing with the financial institutions long enough to establish the creditworthiness of the stolen and synthetic identities. The defendants and their conspirators then “busted out” the fraud cards by making large purchases and never repaying the debts.
The defendants and their conspirators also incorporated and registered in various states numerous purported companies that did little or no legitimate business (the “sham companies”). The sham companies typically reported mailing addresses that were not brick-and-mortar business locations but were in fact “virtual mailboxes” offered by a company that provides mail receiving and forwarding services, as well as virtual office space, for a fee. The defendants and their conspirators used these sham companies to make hundreds of thousands of dollars’ worth of charges to the fraud cards, which were then deposited in bank accounts opened in the sham companies’ names. The defendants and their conspirators then withdrew these funds in cash.
The defendants and their conspirators routinely used “drop addresses” in New Jersey, New York, and elsewhere as the purported mailing addresses for the fraud cards and the sham companies. These drop addresses were typically not residential locations, but rather mailboxes offered for lease for the receipt of mail by a commercial package delivery company. In most cases, the defendants and their conspirators rented these mailboxes using fraudulent identification documents created using stolen and altered identities. The drop addresses were then maintained for the purpose of receiving mail sent in connection with the fraud cards and the sham companies.
The charge of conspiring to defraud financial institutions carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s arrests.
The charges in the complaint are merely allegations, and the defendants are presumed to be innocent unless and until convicted.
The government is represented by First Assistant U.S. Attorney Rachael A. Honig.
Four Charged in Drug Trafficking ConspiracyRead the Press Release
BOSTON – Four individuals were arrested and charged today in federal court in Boston in a drug trafficking conspiracy.
On May 30, 2019, Jose Perez Felix, a/k/a “Eugenio Piedraita-Rivera,” a/k/a “Roberto Patricio Ramirez,” a/k/a “Grande,” 41, of Dorchester; Edward Chapman, 51, of Pittsfield; Anthony Tsina, 35, of Quincy; and Yonatan Lara, 34, of Boston, were each charged with one count of conspiracy to distribute and possession with intent to distribute heroin, fentanyl, cocaine and oxycodone. The four men appeared in federal court today and were each ordered detained pending a detention hearing.
According to the charging document, in 2018, federal and state law enforcement began investigating members of a drug trafficking organization in and around the Boston area. Their investigation revealed that Perez Felix distributed large quantities of narcotics, including heroin, fentanyl, and cocaine, from a base of operations in Boston. Over the course of the investigation, other members of Perez Felix’s drug cell were identified, including Lara. Furthermore, Chapman and Tsina were identified as significant drug traffickers supplied by Perez Felix.
On May 30, 2019, agents executed several search warrants, which resulted in the seizure of cell phones, materials commonly used to package drugs for street level sale, digital scales, and over 100 grams of suspected heroin and/or fentanyl.
The charge of conspiracy to distribute and possession with intent to distribute heroin, fentanyl, cocaine, and oxycodone provides for a sentence of no greater than 20 years in prison, a minimum of 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
Fort Wayne Resident Sentenced to 68 Months in PrisonRead the Press Release
FORT WAYNE – Tyshon Powell, 24years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to possessing with intent to distribute a controlled substance and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Powell was sentenced to 68 months in prison followed by 2 years of supervised release.
According to documents in this case, on March 28, 2018, Powell possessed with intent to distribute less than 50 kilograms of marijuana and did so while possessing a firearm in furtherance of his drug trafficking offense.
This case was investigated by the FBI’s Fort Wayne Safe Streets Gang Task Force with the assistance of the Fort Wayne Police Department, Allen County Sheriff’s Department and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorneys Anthony W. Geller and Stacey R. Speith.
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Former State Employee Sentenced to Prison for Role in Medicaid Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TOSHIREA JACKSON, 50, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for her role in a health care fraud scheme.
According to court documents and statements made in court, beginning in January 2012, Jackson and Juliet Jacob operated two businesses, Transitional Development And Training (TDAT), and It Takes A Promise (ITAP), both located at 360 Fairfield Avenue in Bridgeport, which provided social and psychotherapy services. The investigation revealed that Jackson and Jacob used ITAP and TDAT to bill Medicaid for psychotherapy services that were never provided. As part of their scheme, Jackson and Jacob used the Medicaid provider numbers of two licensed health care providers who had neither rendered nor supervised any of the psychotherapy services that Jackson and Jacob billed to Medicaid. Jackson, and the two licensed providers, were employees of the Connecticut Department of Mental Health and Addiction Services (DMHAS). The two providers did not authorize Jackson or Jacob to obtain provider numbers for them at TDAT or ITAP, and were not aware that TDAT or ITAP were billing Medicaid as if the providers had personally rendered the psychotherapy services.
The investigation further revealed that, in March 2012, Nikkita Chesney, who was employed by a health care provider that provided substance abuse treatment, including a detoxification program in Bridgeport, began to steal the personal identification information of Medicaid clients who were patients of her employer. The personal identifying information included the patients’ Medicaid identification number, Social Security Numbers and dates of birth. Jackson, Jacob, and Chesney then used the stolen identity information to bill Medicaid for psychotherapy services purportedly provided by TDAT and ITAP, when the Medicaid clients had never received any such services from TDAT or ITAP.
Jackson has admitted that the scheme involved stealing the identity of more than 150 Medicaid clients, and that she and her co-conspirators successfully billed Medicaid for approximately half of those clients. Jackson further admitted that she and her co-conspirators also billed Medicaid for services to other clients that were never provided to those clients.
Judge Bolden ordered Jackson to pay $2,496,618 in restitution.
On December 13, 2018, Jackson pleaded guilty to one count of health care fraud.
Jackson, who is released on a $25,000 bond, is required to report to prison on July 12, 2019.
On October 18, 2018, Jacob pleaded guilty to one count of health care fraud for her role in this scheme and a separate Medicaid fraud scheme. On October 23, 2018, Chesney pleaded guilty to one count of health care fraud and one count of aggravated identity theft. Both await sentencing.
Five other individuals have been charged and convicted of health care fraud offenses as a result of this and related investigations.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
This case is being jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Federal Bureau of Investigation, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.