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Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 17 April 2019
Appleton Man Indicted for Armed Bank Robbery and Firearms OffensesRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on April 16, 2019, a federal grand jury returned a three-count indictment charging Xengxai Yang (age: 19) of Appleton with armed robbery.
Count One of the indictment charges Yang with Armed Bank Robbery in violation of 18 U.S.C. § 2113(d). If convicted, Yang faces a maximum of 25 years in prison, up to a $250,000 fine, and up to 3 years of supervised release. Count Two charges Yang with Use of a Short-barreled Firearm During and in Relation to a Crime of Violence in violation of 18 U.S.C. § 924(c). If convicted, Yang faces up to a $250,000 fine, up to 5 years of supervised release, and up to life in prison, with a 10-year mandatory minimum sentence that must be consecutive to any other sentence. Count Three charges Yang with Possession of a Short-barreled Rifle in violation of 26 U.S.C. § 5861(d). If convicted, Yang faces a maximum of 10 years in prison, up to 3 years of supervised release, and up to a $250,000 fine.
According to the indictment, on or about March 15, 2019, the defendant forcefully took money from a federally insured credit union in Appleton and assaulted persons within the facility by the use of a dangerous weapon while committing the robbery. The weapon was a rifle with a barrel less than 16 inches in length.
The Appleton Police Department investigated the case. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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Appalachian Regional Prescription Opioid Strike Force Takedown Results in Charges Against 60 Individuals, Including 53 Medical ProfessionalsRead the Press Release
Roanoke, VIRGINIA – Attorney General William P. Barr, Department of Health and Human Services (HHS) Secretary Alex M. Azar III together with multiple law enforcement partners, today announced enforcement actions involving 60 charged defendants across 11 federal districts, including 31 doctors, 7 pharmacists, 8 nurse practitioners, and 7 other licensed medical professionals, for their alleged participation in the illegal prescribing and distributing of opioids and other dangerous narcotics and for health care fraud schemes. In addition, HHS announced today that since June 2018, it has excluded over 2,000 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes more than 650 providers excluded for conduct related to opioid diversion and abuse. Since July 2017, DEA has issued 31 immediate suspension orders, 129 orders to show cause, and received 1386 surrenders for cause nationwide for violations of the Controlled Substances Act.
“The opioid epidemic is the deadliest drug crisis in American history, and Appalachia has suffered the consequences more than perhaps any other region,” Attorney General William P. Barr said. “But the Department of Justice is doing its part to help end this crisis. One of the Department's most promising new initiatives is the Criminal Division's Appalachian Regional Prescription Opioid Strike Force, which began its work in December. Just four months later, this team of federal agents and 12 prosecutors has charged 60 defendants for alleged crimes related to millions of prescriptions. I am grateful to the Criminal Division, their U.S. Attorney partners, and to the members of the strike force for this outstanding work that holds the promise of saving many lives in Appalachian communities.”
In addition to the cases announced today, Attorney General Barr and U.S. Attorney Thomas T. Cullen announced today that the ARPO Strike Force will expand into the Western District of Virginia, making it the tenth ARPO Strike Force district. ARPO is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for ten federal districts in six states, as well as law enforcement partners at the FBI, HHS Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Tennessee Bureau of Investigation and multiple State Medicaid Fraud Control Units. The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
“The opioid epidemic has ravaged communities throughout the Western District of Virginia,” U.S. Attorney Cullen stated today. “In order to mitigate this crisis, we are working closely with our federal, state, and local partners on targeted and impactful enforcement initiatives, including the prosecution of corrupt health-care providers, drug-trafficking organizations, and those involved in Fentanyl distribution. I am grateful to Attorney General Barr for deploying the ARPO Strike Force into Western Virginia and dedicating additional resources to help us with these critical efforts.”
The charges announced today involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a priority for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
The ARPO Strike Force is made up of prosecutors and data analysts with the HCF Unit, prosecutors with the ten U.S. Attorney’s Offices in the region, including the newly added Western District of Virginia, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in the Cincinnati, Ohio/Northern Kentucky and Nashville, Tennessee, areas, supporting the ten districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Tennessee Bureau of Investigation, State Medicaid Fraud Control Units.
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For any patients impacted by the law enforcement operations, DOJ, DEA, HHS-OIG, HHS’ Substance Abuse and Mental Health Services Administration, CDC’s Opioid Rapid Response Team and all 5 State Departments of Health are deploying federal and state-level strategies to address patient harm and insure continuity of care. Additional information regarding available treatment programs and where patients can turn for assistance is available as follows:
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. The Medicare Fraud Strike Force, including the ARPO Strike Force, has charged more than 200 individuals with opioid-related crimes.
Additional documents related to this announcement are available here:
https://www.justice.gov/opa/documents-and-resources-
Appalachian Regional Prescription Opioid Strike Force TakedownRead the Press Release
Single Largest Prescription Opioid Law Enforcement Operation in History - Charges Brought Against 60 Individuals, Including 53 Medical Professionals
Charges involve over 350 thousand prescriptions for controlled substances and over 32 million pills
CHARLESTON, W.VA. – United States Attorney Mike Stuart joined multiple law enforcement partners today in Cincinnati, Ohio, to announce enforcement actions involving 60 charged defendants across 11 federal districts, including 31 doctors, 7 pharmacists, 8 nurse practitioners, and 7 other licensed medical professionals for their alleged participation in the illegal prescribing and distributing of opioids and other dangerous narcotics and for health care fraud schemes. In addition, the United States Department of Health and Human Services (HHS) announced that since June 2018, it has excluded over 2,000 individuals from participation in Medicare, Medicaid, and all other Federal health care programs which includes more than 650 providers excluded for conduct related to opioid diversion and abuse. Since July 2017, the Drug Enforcement Administration (DEA) has issued 31 immediate suspension orders, 129 orders to show cause, and received 1386 surrenders for cause nationwide for violations of the Controlled Substances Act.
“Today’s is an important day for West Virginia and the nation,” said United States Attorney Mike Stuart. “The single largest prescription opioid law enforcement operation focused solely on Appalachia and the poison peddlers that have wreaked havoc, chaos and despair on our citizens and communities. Today’s effort is only the first of many more significant enforcement efforts to ensure the safety of our citizens. Drug dealers in lab coats are still drug dealers. My office and our dedicated law enforcement partners in the Southern District of West Virginia have been actively engaged in identifying and holding drug dealers accountable and making sure that abusive medical professionals that put profits before patients never write another prescription or treat another patient ever again.”
As part of today’s takedown, Dr. Marc J. Spelar, a psychiatrist in Huntington, West Virginia, was arrested. Spelar is charged by Indictment with 10 counts of unlawful distribution of controlled substances involving more than 800 prescriptions and over 17,000 opioid pills. He distributed Schedule II narcotics including dextroamphetamine, methylphenidate, and amphetamine salt, to a patient who did not have a medical need for the drugs and whom the doctor never examined even though the patient had a history of abusing drugs.
In addition to the cases announced today, Attorney General Barr and U.S. Attorney Thomas T. Cullen announced today that the ARPO Strike Force will expand into the Western District of Virginia, making it the tenth ARPO Strike Force district. ARPO is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for ten federal districts in six states, as well as law enforcement partners at the FBI, HHS Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Tennessee Bureau of Investigation and multiple State Medicaid Fraud Control Units. The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
The charges announced today involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a priority for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
Participating in today’s press conference in Cincinnati, Ohio, were Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky; U.S. Attorney Russell M. Coleman for the Western District of Kentucky; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; U.S. Attorney William J. Powell for the Northern District of West Virginia; U.S. Attorney Michael B. Stuart for the Southern District of West Virginia; U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee; U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee; U.S. Attorney D. Michael Dunavant for the Western District of Tennessee; U.S. Attorney Jay E. Town for the Northern District of Alabama; U.S. Attorney Thomas T. Cullen for the Western District of Virginia; Executive Assistant Director Amy Hess of the FBI’s Criminal, Cyber, Response, and Services Branch; Deputy Inspector General for Investigations Gary L. Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Assistant Administrator John J. Martin of the DEA Diversion Control Division, and Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity (CPI) Alec Alexander.
The ARPO Strike Force is made up of prosecutors and data analysts with the HCF Unit, prosecutors with the ten U.S. Attorney’s Offices in the region, including the newly added Western District of Virginia, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in the Cincinnati, Ohio/Northern Kentucky and Nashville, Tennessee, areas, supporting the ten districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Tennessee Bureau of Investigation, State Medicaid Fraud Control Units.
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. The Medicare Fraud Strike Force, including the ARPO Strike Force, has charged more than 200 individuals with opioid-related crimes.
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For any patients impacted by the law enforcement operations, DOJ, DEA, HHS-OIG, HHS’ Substance Abuse and Mental Health Services Administration, CDC’s Opioid Rapid Response Team and all 5 State Departments of Health are deploying federal and state-level strategies to address patient harm and insure continuity of care. Additional information regarding available treatment programs and where patients can turn for assistance is available as follows:
Alabama: The Alabama Department of Mental Health has a dedicated telephone number to connect those affected by the closure. The toll-free substance abuse number is 1-844-307-1760. Information about substance abuse and opioids is available at the following websites:
http://www.alabamapublichealth.gov/pharmacy/opioid-and-heroin.html
https://mh.alabama.gov/understanding-the-opioid-crisis/
Kentucky: If you are in Kentucky and are suffering with addiction you can find help by calling 833-8KY-HELP or logging in at Findhelpnowky.org
Ohio: If you are seeking help in Ohio, please call the OhioMHAS patient helpline, at 1-877-275-6364
Tennessee: If you are seeking help in Tennessee:
- For a referral to addiction treatment services, call the Tennessee REDLINE: 800-889-9789.
- In a mental health crisis, call the Statewide Crisis Line: 855-CRISIS-1 (855-274-7471).
- For help accessing substance abuse or mental health services call the Tennessee Department of Mental Health and Substance Abuse Services Helpline: 800-560-5767 or 615-532-6700. This line is staffed Monday-Friday, 8 a.m. - 4:30 p.m. CT.
West Virginia: If you are in West Virginia and are suffering with addiction you can find help by calling 1-844-HELP-4WV or logging in at https://HelpandHopeWV.org
For individuals seeking help in other states, please call 1-800-662-HELP
If you, a family member, friend or loved one believe you may be a victim in any of these cases or in connection with any charged defendant, please visit the following website for additional information: https://www.justice.gov/criminal-vns/case/ARPO
Additional documents related to this announcement are available here:
https://www.justice.gov/opa/documents-and-resources-april-17-2019-press-conference
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Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown Results in Charges Against 60 Individuals, Including 53 Medical ProfessionalsRead the Press Release
BIRMINGHAM – Attorney General William P. Barr and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, together with multiple law enforcement partners, today announced enforcement actions involving 60 charged defendants across 11 federal districts, including 31 doctors, 7 pharmacists, 8 nurse practitioners, and 7 other licensed medical professionals, for their alleged participation in the illegal prescribing and distributing of opioids and other dangerous narcotics and for health care fraud schemes. In addition, HHS announced today that since June 2018, it has excluded over 2,000 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes more than 650 providers excluded for conduct related to opioid diversion and abuse. Since July 2017, DEA has issued 31 immediate suspension orders, 129 orders to show cause, and received 1386 surrenders for cause nationwide for violations of the Controlled Substances Act.
“The opioid epidemic is the deadliest drug crisis in American history, and Appalachia has suffered the consequences more than perhaps any other region,” Attorney General William P. Barr said. “But the Department of Justice is doing its part to help end this crisis. One of the Department's most promising new initiatives is the Criminal Division's Appalachian Regional Prescription Opioid Strike Force, which began its work in December. Just four months later, this team of federal agents and 12 prosecutors has charged 60 defendants for alleged crimes related to millions of prescriptions. I am grateful to the Criminal Division, their U.S. Attorney partners, and to the members of the strike force for this outstanding work that holds the promise of saving many lives in Appalachian communities.”
“Reducing the illicit supply of opioids is a crucial element of President Trump’s plan to end this public health crisis,” said HHS Secretary Alex Azar. “It is also vital that Americans struggling with addiction have access to treatment and that patients who need pain treatment do not see their care disrupted, which is why federal and local public health authorities have coordinated to ensure these needs are met in the wake of this enforcement operation. The Trump Administration’s law enforcement and public health leaders will continue to work hand in hand to end this crisis that has hit Appalachia hard and steals far too many lives across America every day.”
“Sometimes the only difference between a drug dealer and a doctor is the white coat,” Town said. “The Department of Justice, DEA, FBI, and other federal, state, and local partners will continue to aggressively address our opioid crisis, from the corner to the clinic, until those responsible for the unlawful distribution of this poison, which too often results in overdose, are brought to justice.”
Attorney General Barr and Secretary Azar were joined in the announcement by Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky; U.S. Attorney Russell M. Coleman for the Western District of Kentucky; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; U.S. Attorney William J. Powell for the Northern District of West Virginia; U.S. Attorney Michael B. Stuart for the Southern District of West Virginia; U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee; U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee; U.S. Attorney D. Michael Dunavant for the Western District of Tennessee; U.S. Attorney Jay E. Town for the Northern District of Alabama; U.S. Attorney Thomas T. Cullen for the Western District of Virginia; Executive Assistant Director Amy Hess of the FBI’s Criminal, Cyber, Response, and Services Branch; Deputy Inspector General for Investigations Gary L. Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Assistant Administrator John J. Martin of the DEA Diversion Control Division, and Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity (CPI) Alec Alexander.
In addition to the cases announced today, Attorney General Barr and U.S. Attorney Thomas T. Cullen announced today that the ARPO Strike Force will expand into the Western District of Virginia, making it the tenth ARPO Strike Force district. ARPO is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for ten federal districts in six states, as well as law enforcement partners at the FBI, HHS Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Tennessee Bureau of Investigation and multiple State Medicaid Fraud Control Units. The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
The charges announced today involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a priority for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Today’s takedown demonstrates the FBI’s unwavering commitment to working alongside our Strike Force partners, including the HHS-OIG and DEA, to fight the opioid epidemic and related criminal activity in the Appalachian region,” said FBI Executive Assistant Director Hess. “We will not stand by and allow the harmful and oftentimes deadly practice of over-prescribing highly addictive drugs to continue unchecked. The FBI will pursue medical personnel who misuse their positions of trust to blatantly disregard others’ very lives for their own financial gain.”
“The opioid crisis has had a devastating impact in the Appalachian region,” said Principal Deputy Inspector General Chiedi. “Addressing this public health issue and ensuring beneficiaries have continuity of care requires a collaborative approach with our federal, state, and local partners. Our commitment is resolute. We will continue working together to protect the health and well-being of all Americans and ending this terrible epidemic.”
“Opioid misuse and abuse is an insidious epidemic, created in large part, by the over-prescribing of potent opioids nationwide, and unfortunately, Appalachia is at the center,” said DEA Assistant Administrator Martin. “Today’s announcement sends a clear message that investigations involving diversion of prescription drugs have been, and continue to be, a priority for DEA.”
“CMS CPI is proud to work very closely everyday with our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and Director of Center for Program Integrity Alexander. “Nowhere is this collaboration more important than in our fight against the opioid crisis in America. This is one of the President’s highest priorities and we are proud to be an important part of the largest prescription opioid enforcement effort ever undertaken. We will continue to work tirelessly through investigation, data coordination and administrative action to protect the health and wellbeing of all Americans.”
The ARPO Strike Force is made up of prosecutors and data analysts with the HCF Unit, prosecutors with the ten U.S. Attorney’s Offices in the region, including the newly added Western District of Virginia, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in the Cincinnati, Ohio/Northern Kentucky and Nashville, Tennessee, areas, supporting the ten districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Tennessee Bureau of Investigation, State Medicaid Fraud Control Units. *********
For the ARPO Strike force locations, in the Southern District of Ohio, six individuals, including two doctors and three registered pharmacists were charged with several counts, including unlawful distribution of controlled substances and conspiracy to obtain controlled substances by fraud. In one case, a doctor who is alleged to have been at one time the highest prescriber of controlled substances in the state, and several pharmacists are charged with operating an alleged “pill mill” in Dayton, Ohio. According to the indictment, between October 2015 and October 2017 alone, the pharmacy allegedly dispensed over 1.75 million pills. These cases were brought with assistance from the FBI, DEA, and HHS-OIG, as well as the Ohio Attorney General's Office, Medicaid Fraud Control Unit; the Ohio Bureau of Workers' Compensation Ohio; the Ohio Board of Pharmacy and the Ohio Medical Board.
In the Western District of Kentucky, a doctor was charged with controlled substance and health care fraud counts in connection with providing pre-signed, blank prescriptions to office staff who then used them to prescribe controlled substances when he was out of the office, and for directing staff at the clinic, including individuals not licensed to practice medicine, to perform medical services on patients. In another case, a doctor, a Florida compounding pharmacy and its owner were charged in connection with a scheme that involved the payment of alleged kickbacks in return for writing prescriptions for compounded drugs that included controlled substances, and for fraudulently inflating the costs for prescriptions that were billed for reimbursement by Medicare and TRICARE. These cases were brought with assistance from the FBI, DEA, HHS-OIG, and the Defense Criminal Investigative Service, as well as the Kentucky State Police, the Louisville Metropolitan Police Department, the Kentucky Office of Inspector General, the Kentucky Department of Insurance, and the Kentucky Medicaid Fraud Control Unit.
In the Eastern District of Kentucky, a total of five people were charged, including three doctors, a dentist and an office assistant who were charged in connection with several health care fraud and/or controlled substance schemes. In one case a doctor operating a clinic that focused on pain management allegedly provided pre-signed, blank prescriptions to office staff who then used them to prescribe controlled substances when he was out of the office. In another case, a solo practitioner who operates a five-clinic family practice focusing on pain management allegedly billed Medicare for urine testing that was not done and for urine testing that was not medically necessary. A dentist was charged for alleged conduct that included writing prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice, removing teeth unnecessarily, scheduling unnecessary follow-up appointments, and billing inappropriately for services. In yet another case, a doctor was charged for allegedly prescribing opioids to Facebook friends who would come to his home to pick up prescriptions, and for signing prescriptions for other persons based on messenger requests to his office manager, who then allegedly delivered the signed prescriptions in exchange for cash. These cases were brought with assistance from the FBI, DEA, HHS-OIG, and the Kentucky Medicaid Fraud Control Unit.
In the Middle District of Tennessee, total of nine individuals including four doctors, a nurse and a pharmacist were charged in six cases, all of which relate to the distribution of controlled substances. Two cases involve doctors who were previously sanctioned by the Tennessee Medical Board in connection with the overprescribing of opioids, one of whom was sanctioned for providing prescriptions to vulnerable patients, while the other allegedly prescribed opioid pills after serving a Board imposed term of probation. Another case alleges that a doctor prescribed opioids and other controlled substances to at least four individuals. In another case, an advanced practice registered nurse at a pain management clinic allegedly wrote prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice. Separately, a pharmacist was charged for allegedly dispensing large amounts of opioids outside the usual scope of professional practice and for no legitimate medical purpose. Finally, a podiatrist was charged with unlawful distribution of controlled substances. In addition to assistance provided by the FBI, DEA, and HHS-OIG, these cases were brought in connection with assistance from the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit; the 18th Judicial District Drug Task Force; the Sumner County District Attorney’s Office; and the District Attorney General for the 22nd Judicial District.
In the Eastern District of Tennessee, at total of eight individuals, including five doctors, a nurse practitioner, a physician’s assistant, and an office manager were charged in four cases. Four doctors, a nurse practitioner and a physician’s assistant were charged with the unlawful distribution of opioids. Two doctors were charged with health care fraud violations. Three of these cases are related to alleged pill mill operations in the Eastern District of Tennessee.
In the Western District of Tennessee, 15 individuals were charged, involving eight doctors and several other medical professionals. In one case, a doctor who branded himself the “Rock Doc,” allegedly prescribed powerful and dangerous combinations of opioids and benzodiazepines, sometimes in exchange for sexual favors; over approximately three years, the doctor allegedly prescribed approximately 500,000 hydrocodone pills, 300,000 oxycodone pills, 1,500 fentanyl patches, and more than 600,000 benzodiazepine pills. In another case, a nurse practitioner charged with conspiracy to unlawfully distribute controlled substances allegedly prescribed over 500,000 Hydrocodone pills, approximately 300,000 Oxycodone pills, and approximately 300,000 benzodiazepine pills (mostly Alprazolam), along with a myriad of other controlled substances. In another case, a physician charged with controlled substances and health care fraud violations allegedly prescribed approximately 300,000 hydrocodone pills, 200,000 oxycodone pills, 2,500 fentanyl patches, and 180,000 benzodiazepine pills, and prescribed medically unnecessary durable medical equipment that was billed to Medicare. Another doctor charged with controlled substances violations allegedly prescribed approximately 4.2 million opioid pills, sometimes in dangerous combinations with other drugs, such as benzodiazepines, and prescribed opioids to known addicts.
In the Northern District of Alabama, multiple individuals were charged in five cases, including four doctors. In one case, the owners and operators of a medical clinic and dispensary were charged with the unlawful distribution of controlled substances and health care fraud. In that case, a doctor allegedly prescribed opioids in high dosages, dangerous combinations, and in many cases, after having knowledge that patients failed drug screens and were addicts, preferring cash payments and charging a “concierge fee” that ranged from approximately $50 per visit or $600 per year. In another case, a doctor allegedly recruited prostitutes and other young women with whom he had sexual relationships to become patients at his clinic, while simultaneously allowing them and their associates to abuse illicit drugs at his house. In yet another case, a doctor allegedly dispensed controlled substances and other prescription drugs directly from the clinic, and prescribed excessive quantities of controlled substances to the same patients several times per month resulting in as many as 15 pills per day for some patients. In that case, the doctor also signed blank prescription forms to be completed by her staff when she was not at the clinic.
In the Northern District of West Virginia, a case was brought against an orthopedic surgeon who allegedly used fraudulent prescriptions to obtain hundreds of tablets of tramadol, acetaminophen-codeine, and diazepam for his own use over the course of approximately two years. To obtain the pills, the surgeon allegedly used the names and DEA numbers of two of his colleagues without their authorization and also wrote out prescriptions in the names of a relative and former patients even though the pills were for his own use, using driver’s licenses that he had stolen from relatives and a colleague to obtain the pills from pharmacies.
In the Southern District of West Virginia, a doctor was charged with allegedly distributing narcotics, including dextroamphetamine, methylphenidate, and amphetamine salt, to a patient who did not have a medical need for the drugs and whom the doctor never examined.
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In addition to the ARPO Strike Force districts, today’s enforcement actions include cases brought in the Eastern District of Pennsylvania, and the Eastern District of Louisiana.
In the Eastern District of Louisiana, a neurologist at an alleged pill mill was charged with conspiracy to dispense controlled substances and conspiracy to commit health care fraud. The defendant allegedly pre-signed prescriptions for controlled substances, including oxycodone, for patients whom he did not personally examine to determine medical necessity for the prescriptions, and pre-signed prescriptions for controlled substances while he was travelling internationally. The defendant allegedly knew that certain of these patients used their Medicare Part D and Medicaid benefits to pay for the medically unnecessary prescriptions.
In the Eastern District of Pennsylvania, a former licensed practical nurse allegedly filled fraudulent prescriptions for oxycodone in her name and in the names of others at a local pharmacy in order to obtain the pills for herself and to distribute to others.
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For any patients impacted by the law enforcement operations, DOJ, DEA, HHS-OIG, HHS’ Substance Abuse and Mental Health Services Administration, CDC’s Opioid Rapid Response Team and all 5 State Departments of Health are deploying federal and state-level strategies to address patient harm and insure continuity of care. Additional information regarding available treatment programs and where patients can turn for assistance is available as follows:
Alabama: If you are seeking help in Alabama, please call: 1-866-264-4073
http://www.alabamapublichealth.gov/pharmacy/opioid-and-heroin.html
https://mh.alabama.gov/understanding-the-opioid-crisis/
For individuals seeking help in other states, please call 1-800-662-HELP
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. The Medicare Fraud Strike Force, including the ARPO Strike Force, has charged more than 200 individuals with opioid-related crimes.
If you, a family member, friend or loved one believe you may be a victim in any of these cases or in connection with any charged defendant, please visit the following website for additional information: https://www.justice.gov/criminal-vns/case/ARPO
Additional documents related to this announcement are available here:
https://www.justice.gov/opa/documents-and-resources-april-17-2019-press-conference
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Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown Results in Charges Against 60 Individuals, Including 53 Medical ProfessionalsRead the Press Release
Attorney General William P. Barr and Department of Health and Human Services (HHS) Secretary Alex M. Azar II, together with multiple law enforcement partners, today announced enforcement actions involving 60 charged defendants across 11 federal districts, including 31 doctors, seven pharmacists, eight nurse practitioners, and seven other licensed medical professionals, for their alleged participation in the illegal prescribing and distributing of opioids and other dangerous narcotics and for health care fraud schemes. In addition, HHS announced today that since June 2018, it has excluded over 2,000 individuals from participation in Medicare, Medicaid and all other Federal health care programs, which includes more than 650 providers excluded for conduct related to opioid diversion and abuse. Since July 2017, DEA has issued 31 immediate suspension orders, 129 orders to show cause, and received 1,386 surrenders for cause nationwide for violations of the Controlled Substances Act.
“The opioid epidemic is the deadliest drug crisis in American history, and Appalachia has suffered the consequences more than perhaps any other region,” Attorney General William P. Barr said. “But the Department of Justice is doing its part to help end this crisis. One of the Department's most promising new initiatives is the Criminal Division's Appalachian Regional Prescription Opioid Strike Force, which began its work in December. Just four months later, this team of federal agents and 14 prosecutors has charged 60 defendants for alleged crimes related to millions of prescription opioids. I am grateful to the Criminal Division, their U.S. Attorney partners, and to the members of the strike force for this outstanding work that holds the promise of saving many lives in Appalachian communities.”
“Reducing the illicit supply of opioids is a crucial element of President Trump’s plan to end this public health crisis,” said HHS Secretary Alex Azar. “It is also vital that Americans struggling with addiction have access to treatment and that patients who need pain treatment do not see their care disrupted, which is why federal and local public health authorities have coordinated to ensure these needs are met in the wake of this enforcement operation. The Trump Administration’s law enforcement and public health leaders will continue to work hand in hand to end this crisis that has hit Appalachia hard and steals far too many lives across America every day.”
Attorney General Barr and Secretary Azar were joined in the announcement by Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky; U.S. Attorney Russell M. Coleman for the Western District of Kentucky; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; U.S. Attorney William J. Powell for the Northern District of West Virginia; U.S. Attorney Michael B. Stuart for the Southern District of West Virginia; U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee; U.S. Attorney Don Cochran for the Middle District of Tennessee; U.S. Attorney D. Michael Dunavant for the Western District of Tennessee; U.S. Attorney Jay E. Town for the Northern District of Alabama; U.S. Attorney Thomas T. Cullen for the Western District of Virginia; Executive Assistant Director Amy Hess of the FBI’s Criminal, Cyber, Response, and Services Branch; Deputy Inspector General for Investigations Gary L. Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Assistant Administrator John J. Martin of the DEA Diversion Control Division, and Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity (CPI) Alec Alexander.
In addition to the cases announced today, Attorney General Barr and U.S. Attorney Thomas T. Cullen announced today that the ARPO Strike Force will expand into the Western District of Virginia, making it the tenth ARPO Strike Force district. ARPO is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for ten federal districts in six states, as well as law enforcement partners at the FBI, HHS Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Tennessee Bureau of Investigation, multiple State Medicaid Fraud Control Units, and other federal and state agencies. The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
The charges announced today involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a priority for the Department. According to the CDC, approximately 130 Americans die every day of an opioid overdose.
“Today’s takedown demonstrates the FBI’s unwavering commitment to working alongside our Strike Force partners, including the HHS-OIG and DEA, to fight the opioid epidemic and related criminal activity in the Appalachian region,” said FBI Executive Assistant Director Hess. “We will not stand by and allow the harmful and oftentimes deadly practice of over-prescribing highly addictive drugs to continue unchecked. The FBI will pursue medical personnel who misuse their positions of trust to blatantly disregard others’ very lives for their own financial gain.”
“The opioid crisis has had a devastating impact in the Appalachian region,” said Principal Deputy Inspector General Chiedi. “Addressing this public health issue and ensuring beneficiaries have continuity of care requires a collaborative approach with our federal, state, and local partners. Our commitment is resolute. We will continue working together to protect the health and well-being of all Americans and ending this terrible epidemic.”
“Opioid misuse and abuse is an insidious epidemic, created in large part, by the over-prescribing of potent opioids nationwide, and unfortunately, Appalachia is at the center,” said DEA Assistant Administrator Martin. “Today’s announcement sends a clear message that investigations involving diversion of prescription drugs have been, and continue to be, a priority for DEA.”
“CMS CPI is proud to work very closely everyday with our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and Director of Center for Program Integrity Alexander. “Nowhere is this collaboration more important than in our fight against the opioid crisis in America. This is one of the President’s highest priorities and we are proud to be an important part of the largest prescription opioid enforcement effort ever undertaken. We will continue to work tirelessly through investigation, data coordination and administrative action to protect the health and wellbeing of all Americans.”
The ARPO Strike Force is made up of prosecutors and data analysts with the HCF Unit, prosecutors with the 10 U.S. Attorney’s Offices in the region, including the newly added Western District of Virginia, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in the Cincinnati, Ohio/Northern Kentucky and Nashville, Tennessee, areas, supporting the 10 districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Tennessee Bureau of Investigation, State Medicaid Fraud Control Units.
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For the ARPO Strike force locations, in the Southern District of Ohio, six individuals, including two doctors and three registered pharmacists were charged with several counts, including unlawful distribution of controlled substances and conspiracy to obtain controlled substances by fraud. In one case, a doctor who is alleged to have been at one time the highest prescriber of controlled substances in the state, and several pharmacists are charged with operating an alleged “pill mill” in Dayton, Ohio. According to the indictment, between October 2015 and October 2017 alone, the pharmacy allegedly dispensed over 1.75 million pills. These cases were brought with assistance from the FBI, DEA, and HHS-OIG, as well as the Ohio Attorney General's Office, Medicaid Fraud Control Unit; the Ohio Bureau of Workers' Compensation Ohio; the Ohio Board of Pharmacy and the Ohio Medical Board.
In the Western District of Kentucky, a doctor was charged with controlled substance and health care fraud counts in connection with providing pre-signed, blank prescriptions to office staff who then used them to prescribe controlled substances when he was out of the office, and for directing staff at the clinic, including individuals not licensed to practice medicine, to perform medical services on patients. In another case, a doctor, a Florida compounding pharmacy and its owner were charged in connection with a scheme that involved the payment of alleged kickbacks in return for writing prescriptions for compounded drugs that included controlled substances, and for fraudulently inflating the costs for prescriptions that were billed for reimbursement by Medicare and TRICARE. These cases were brought with assistance from the FBI, DEA, HHS-OIG, and the Defense Criminal Investigative Service, as well as the Kentucky State Police, the Louisville Metropolitan Police Department, the Kentucky Office of Inspector General, the Kentucky Department of Insurance, and the Kentucky Medicaid Fraud Control Unit.
In the Eastern District of Kentucky, a total of five people were charged, including three doctors, a dentist and an office assistant who were charged in connection with several health care fraud and/or controlled substance schemes. In one case a doctor operating a clinic that focused on pain management allegedly provided pre-signed, blank prescriptions to office staff who then used them to prescribe controlled substances when he was out of the office. In another case, a solo practitioner who operates a five-clinic family practice focusing on pain management allegedly billed Medicare for urine testing that was not done and for urine testing that was not medically necessary. A dentist was charged for alleged conduct that included writing prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice, removing teeth unnecessarily, scheduling unnecessary follow-up appointments, and billing inappropriately for services. In yet another case, a doctor was charged for allegedly prescribing opioids to Facebook friends who would come to his home to pick up prescriptions, and for signing prescriptions for other persons based on messenger requests to his office manager, who then allegedly delivered the signed prescriptions in exchange for cash. These cases were brought with assistance from the FBI, DEA, HHS-OIG, and the Kentucky Medicaid Fraud Control Unit.
In the Middle District of Tennessee, federal indictments were unsealed today charging nine Middle Tennessee medical professionals, including four doctors, four nurse practitioners and a pharmacist, with various charges alleging their participation in illegally prescribing and dispensing opioids and other dangerous narcotics and health care fraud schemes. Two cases involve doctors who were previously sanctioned by the Tennessee Medical Board in connection with the overprescribing of opioids, one of whom was sanctioned for providing prescriptions to vulnerable patients, while the other allegedly prescribed opioid pills after serving a Board imposed term of probation. Another case alleges that a doctor prescribed opioids and other controlled substances to at least four individuals. In another case, an advanced practice registered nurse at a pain management clinic allegedly wrote prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice. Separately, a pharmacist was charged for allegedly dispensing large amounts of opioids outside the usual scope of professional practice and for no legitimate medical purpose. Finally, a podiatrist was charged with unlawful distribution of controlled substances. In addition to assistance provided by the FBI, DEA, and HHS-OIG, these cases were brought in connection with assistance from the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit; the 18th Judicial District Drug Task Force; the Sumner County District Attorney’s Office; and the District Attorney General for the 22nd Judicial District.
In the Eastern District of Tennessee, at total of eight individuals, including five doctors, a nurse practitioner, a physician’s assistant, and an office manager were charged in four cases. Four doctors, a nurse practitioner and a physician’s assistant were charged with the unlawful distribution of opioids. Two doctors were charged with health care fraud violations. Three of these cases are related to alleged pill mill operations in the Eastern District of Tennessee. In addition to assistance provided by the FBI, DEA, and HHS-OIG, these cases were brought in connection with assistance from the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit.
In the Western District of Tennessee, 15 individuals were charged, involving eight doctors and several other medical professionals. In one case, a nurse practitioner who branded himself the “Rock Doc,” allegedly prescribed powerful and dangerous combinations of opioids and benzodiazepines, sometimes in exchange for sexual favors; over approximately three years, the doctor allegedly prescribed approximately 500,000 hydrocodone pills, 300,000 oxycodone pills, 1,500 fentanyl patches, and more than 600,000 benzodiazepine pills. In another case, a nurse practitioner charged with conspiracy to unlawfully distribute controlled substances allegedly prescribed over 500,000 Hydrocodone pills, approximately 300,000 Oxycodone pills, and approximately 300,000 benzodiazepine pills (mostly Alprazolam), along with a myriad of other controlled substances. In another case, a physician charged with controlled substances and health care fraud violations allegedly prescribed approximately 300,000 hydrocodone pills, 200,000 oxycodone pills, 2,500 fentanyl patches, and 180,000 benzodiazepine pills, and prescribed medically unnecessary durable medical equipment that was billed to Medicare. Another doctor charged with controlled substances violations allegedly prescribed approximately 4.2 million opioid pills, sometimes in dangerous combinations with other drugs, such as benzodiazepines, and prescribed opioids to known addicts. In addition to assistance provided by the FBI, DEA, and HHS-OIG, these cases were brought in connection with assistance from the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit, the Tennessee Office of Inspector General, and the West Tennessee Drug Task Force (28th District).
In the Northern District of Alabama, multiple individuals were charged in five cases, including four doctors. In one case, the owners and operators of a medical clinic and dispensary were charged with the unlawful distribution of controlled substances and health care fraud. In that case, a doctor allegedly prescribed opioids in high dosages, dangerous combinations, and in many cases, after having knowledge that patients failed drug screens and were addicts, preferring cash payments and charging a “concierge fee” that ranged from approximately $50 per visit or $600 per year. In another case, a doctor allegedly recruited prostitutes and other young women with whom he had sexual relationships to become patients at his clinic, while simultaneously allowing them and their associates to abuse illicit drugs at his house. In yet another case, a doctor allegedly dispensed controlled substances and other prescription drugs directly from the clinic, and prescribed excessive quantities of controlled substances to the same patients several times per month resulting in as many as 15 pills per day for some patients. In that case, the doctor also signed blank prescription forms to be completed by her staff when she was not at the clinic.
In addition to assistance provided by the FBI, DEA, HHS-OIG, the Defense Criminal Investigative Service and the Food and Drug Administration, Office of Criminal Investigations, these cases were brought in connection with assistance from the Hoover Police Department, the Huntsville Police Department, the Huntsville Area HIDTA Drug Task Force Strategic Counter Drug Team, the Marshall County Drug Task Force, the Alabama Medicaid Fraud Control Unit, and the Madison County Sheriff’s Office.
In the Northern District of West Virginia, a case was brought against an orthopedic surgeon who allegedly used fraudulent prescriptions to obtain tablets of acetaminophen-codeine for his own use. To obtain the pills, the surgeon allegedly wrote out prescriptions using his DEA number, and in the names of a relative even though the pills were for his own use, using a driver’s license that he had stolen from a colleague to obtain the pills from pharmacy. This case was brought in connection with assistance from the DEA and HHS-OIG.
In the Southern District of West Virginia, a doctor was charged with allegedly distributing narcotics, including dextroamphetamine, methylphenidate, and amphetamine salt, to a patient who did not have a medical need for the drugs and whom the doctor never examined. This case was brought in connection with assistance from the DEA and HHS-OIG.
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In addition to the ARPO Strike Force districts, today’s enforcement actions include cases brought in the Eastern District of Pennsylvania and the Eastern District of Louisiana.
In the Eastern District of Louisiana, a neurologist at an alleged pill mill was charged with conspiracy to dispense controlled substances and conspiracy to commit health care fraud. The defendant allegedly pre-signed prescriptions for controlled substances, including oxycodone, for patients whom he did not personally examine to determine medical necessity for the prescriptions, and pre-signed prescriptions for controlled substances while he was travelling internationally. The defendant allegedly knew that certain of these patients used their Medicare Part D and Medicaid benefits to pay for the medically unnecessary prescriptions. In addition to assistance provided by the FBI, DEA, HHS-OIG, these cases were brought in connection with assistance from the U.S. Departments of Veterans Affairs – Office of Investigations.
In the Eastern District of Pennsylvania, a former licensed practical nurse allegedly filled fraudulent prescriptions for oxycodone in her name and in the names of others at a local pharmacy in order to obtain the pills for herself and to distribute to others. In addition to assistance provided by the FBI, DEA, HHS-OIG, the Office of Personnel Management, the U.S. Marshalls Service, these cases were brought in connection with assistance from the Caln Township Police.
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For any patients impacted by the law enforcement operations, DOJ, DEA, HHS-OIG, HHS’ Substance Abuse and Mental Health Services Administration, Centers for Disease Control and Prevention, and all five State Departments of Health are deploying federal and state-level strategies to address patient harm and insure continuity of care. Additional information regarding available treatment programs and where patients can turn for assistance is available as follows:
Alabama: The Alabama Department of Mental Health has a dedicated telephone number to connect those affected by the closure. The toll-free substance abuse number is 1-844-307-1760. Information about substance abuse and opioids is available at the following websites:
http://www.alabamapublichealth.gov/pharmacy/opioid-and-heroin.html
https://mh.alabama.gov/understanding-the-opioid-crisis/
Kentucky: If you are in Kentucky and are suffering with addiction you can find help by calling 833-8KY-HELP or logging in at Findhelpnowky.org
Ohio: If you are seeking help in Ohio, please call the OhioMHAS patient helpline, at 1-877-275-6364
Tennessee: If you are seeking help in Tennessee:
- For a referral to addiction treatment services, call the Tennessee REDLINE: 800-889-9789.
- In a mental health crisis, call the Statewide Crisis Line: 855-CRISIS-1 (855-274-7471).
- For help accessing substance abuse or mental health services call the Tennessee Department of Mental Health and Substance Abuse Services Helpline: 800-560-5767 or 615-532-6700. This line is staffed Monday-Friday, 8 a.m. - 4:30 p.m. CT.
West Virginia: If you are in West Virginia and are suffering with addiction you can find help by calling 1-844-HELP-4WV or logging in at https://HelpandHopeWV.org
For individuals seeking help in other states, please call 1-800-662-HELP
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. The Medicare Fraud Strike Force, including the ARPO Strike Force, has charged more than 200 individuals with opioid-related crimes.
If you, a family member, friend or loved one believe you may be a victim in any of these cases or in connection with any charged defendant, please visit the following website for additional information:
https://www.justice.gov/criminal-vns/case/ARPO
Additional documents related to this announcement are available here:
https://www.justice.gov/opa/documents-and-resources-april-17-2019-press-conference
- For a referral to addiction treatment services, call the Tennessee REDLINE: 800-889-9789.
Appalachian Regional Prescription Opioid (Arpo) Strike Force Takedown Results in Charges Against 60 Individuals, Including 53 Medical ProfessionalsRead the Press Release
WASHINGTON – Attorney General William P. Barr and Department of Health and Human Services (HHS) Secretary Alex M. Azar II, together with multiple law enforcement partners, today announced enforcement actions involving 60 charged defendants across 11 federal districts, including 31 doctors, seven pharmacists, eight nurse practitioners, and seven other licensed medical professionals, for their alleged participation in the illegal prescribing and distributing of opioids and other dangerous narcotics and for health care fraud schemes. In addition, HHS announced today that since June 2018, it has excluded over 2,000 individuals from participation in Medicare, Medicaid and all other Federal health care programs, which includes more than 650 providers excluded for conduct related to opioid diversion and abuse. Since July 2017, DEA has issued 31 immediate suspension orders, 129 orders to show cause, and received 1,386 surrenders for cause nationwide for violations of the Controlled Substances Act.
“The opioid epidemic is the deadliest drug crisis in American history, and Appalachia has suffered the consequences more than perhaps any other region,” Attorney General William P. Barr said. “But the Department of Justice is doing its part to help end this crisis. One of the Department's most promising new initiatives is the Criminal Division's Appalachian Regional Prescription Opioid Strike Force, which began its work in December. Just four months later, this team of federal agents and 14 prosecutors has charged 60 defendants for alleged crimes related to millions of prescription opioids. I am grateful to the Criminal Division, their U.S. Attorney partners, and to the members of the strike force for this outstanding work that holds the promise of saving many lives in Appalachian communities.”
“Reducing the illicit supply of opioids is a crucial element of President Trump’s plan to end this public health crisis,” said HHS Secretary Alex Azar. “It is also vital that Americans struggling with addiction have access to treatment and that patients who need pain treatment do not see their care disrupted, which is why federal and local public health authorities have coordinated to ensure these needs are met in the wake of this enforcement operation. The Trump Administration’s law enforcement and public health leaders will continue to work hand in hand to end this crisis that has hit Appalachia hard and steals far too many lives across America every day.”
Attorney General Barr and Secretary Azar were joined in the announcement by Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky; U.S. Attorney Russell M. Coleman for the Western District of Kentucky; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; U.S. Attorney William J. Powell for the Northern District of West Virginia; U.S. Attorney Michael B. Stuart for the Southern District of West Virginia; U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee; U.S. Attorney Don Cochran for the Middle District of Tennessee; U.S. Attorney D. Michael Dunavant for the Western District of Tennessee; U.S. Attorney Jay E. Town for the Northern District of Alabama; U.S. Attorney Thomas T. Cullen for the Western District of Virginia; Executive Assistant Director Amy Hess of the FBI’s Criminal, Cyber, Response, and Services Branch; Deputy Inspector General for Investigations Gary L. Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Assistant Administrator John J. Martin of the DEA Diversion Control Division, and Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity (CPI) Alec Alexander.
In addition to the cases announced today, Attorney General Barr and U.S. Attorney Thomas T. Cullen announced today that the ARPO Strike Force will expand into the Western District of Virginia, making it the tenth ARPO Strike Force district. ARPO is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for ten federal districts in six states, as well as law enforcement partners at the FBI, HHS Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Tennessee Bureau of Investigation, multiple State Medicaid Fraud Control Units, and other federal and state agencies. The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
The charges announced today involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a priority for the Department. According to the CDC, approximately 130 Americans die every day of an opioid overdose.
“Today’s takedown demonstrates the FBI’s unwavering commitment to working alongside our Strike Force partners, including the HHS-OIG and DEA, to fight the opioid epidemic and related criminal activity in the Appalachian region,” said FBI Executive Assistant Director Hess. “We will not stand by and allow the harmful and oftentimes deadly practice of over-prescribing highly addictive drugs to continue unchecked. The FBI will pursue medical personnel who misuse their positions of trust to blatantly disregard others’ very lives for their own financial gain.”
“The opioid crisis has had a devastating impact in the Appalachian region,” said Principal Deputy Inspector General Chiedi. “Addressing this public health issue and ensuring beneficiaries have continuity of care requires a collaborative approach with our federal, state, and local partners. Our commitment is resolute. We will continue working together to protect the health and well-being of all Americans and ending this terrible epidemic.”
“Opioid misuse and abuse is an insidious epidemic, created in large part, by the over-prescribing of potent opioids nationwide, and unfortunately, Appalachia is at the center,” said DEA Assistant Administrator Martin. “Today’s announcement sends a clear message that investigations involving diversion of prescription drugs have been, and continue to be, a priority for DEA.”
“CMS CPI is proud to work very closely everyday with our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and Director of Center for Program Integrity Alexander. “Nowhere is this collaboration more important than in our fight against the opioid crisis in America. This is one of the President’s highest priorities and we are proud to be an important part of the largest prescription opioid enforcement effort ever undertaken. We will continue to work tirelessly through investigation, data coordination and administrative action to protect the health and wellbeing of all Americans.”
The ARPO Strike Force is made up of prosecutors and data analysts with the HCF Unit, prosecutors with the 10 U.S. Attorney’s Offices in the region, including the newly added Western District of Virginia, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in the Cincinnati, Ohio/Northern Kentucky and Nashville, Tennessee, areas, supporting the 10 districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Tennessee Bureau of Investigation, State Medicaid Fraud Control Units.
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For the ARPO Strike force locations, in the Southern District of Ohio, six individuals, including two doctors and three registered pharmacists were charged with several counts, including unlawful distribution of controlled substances and conspiracy to obtain controlled substances by fraud. In one case, a doctor who is alleged to have been at one time the highest prescriber of controlled substances in the state, and several pharmacists are charged with operating an alleged “pill mill” in Dayton, Ohio. According to the indictment, between October 2015 and October 2017 alone, the pharmacy allegedly dispensed over 1.75 million pills. These cases were brought with assistance from the FBI, DEA, and HHS-OIG, as well as the Ohio Attorney General's Office, Medicaid Fraud Control Unit; the Ohio Bureau of Workers' Compensation Ohio; the Ohio Board of Pharmacy and the Ohio Medical Board.
In the Western District of Kentucky, a doctor was charged with controlled substance and health care fraud counts in connection with providing pre-signed, blank prescriptions to office staff who then used them to prescribe controlled substances when he was out of the office, and for directing staff at the clinic, including individuals not licensed to practice medicine, to perform medical services on patients. In another case, a doctor, a Florida compounding pharmacy and its owner were charged in connection with a scheme that involved the payment of alleged kickbacks in return for writing prescriptions for compounded drugs that included controlled substances, and for fraudulently inflating the costs for prescriptions that were billed for reimbursement by Medicare and TRICARE. These cases were brought with assistance from the FBI, DEA, HHS-OIG, and the Defense Criminal Investigative Service, as well as the Kentucky State Police, the Louisville Metropolitan Police Department, the Kentucky Office of Inspector General, the Kentucky Department of Insurance, and the Kentucky Medicaid Fraud Control Unit.
In the Eastern District of Kentucky, a total of five people were charged, including three doctors, a dentist and an office assistant who were charged in connection with several health care fraud and/or controlled substance schemes. In one case a doctor operating a clinic that focused on pain management allegedly provided pre-signed, blank prescriptions to office staff who then used them to prescribe controlled substances when he was out of the office. In another case, a solo practitioner who operates a five-clinic family practice focusing on pain management allegedly billed Medicare for urine testing that was not done and for urine testing that was not medically necessary. A dentist was charged for alleged conduct that included writing prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice, removing teeth unnecessarily, scheduling unnecessary follow-up appointments, and billing inappropriately for services. In yet another case, a doctor was charged for allegedly prescribing opioids to Facebook friends who would come to his home to pick up prescriptions, and for signing prescriptions for other persons based on messenger requests to his office manager, who then allegedly delivered the signed prescriptions in exchange for cash. These cases were brought with assistance from the FBI, DEA, HHS-OIG, and the Kentucky Medicaid Fraud Control Unit.
In the Middle District of Tennessee, federal indictments were unsealed today charging nine Middle Tennessee medical professionals, including four doctors, four nurse practitioners and a pharmacist, with various charges alleging their participation in illegally prescribing and dispensing opioids and other dangerous narcotics and health care fraud schemes. Two cases involve doctors who were previously sanctioned by the Tennessee Medical Board in connection with the overprescribing of opioids, one of whom was sanctioned for providing prescriptions to vulnerable patients, while the other allegedly prescribed opioid pills after serving a Board imposed term of probation. Another case alleges that a doctor prescribed opioids and other controlled substances to at least four individuals. In another case, an advanced practice registered nurse at a pain management clinic allegedly wrote prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice. Separately, a pharmacist was charged for allegedly dispensing large amounts of opioids outside the usual scope of professional practice and for no legitimate medical purpose. Finally, a podiatrist was charged with unlawful distribution of controlled substances. In addition to assistance provided by the FBI, DEA, and HHS-OIG, these cases were brought in connection with assistance from the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit; the 18th Judicial District Drug Task Force; the Sumner County District Attorney’s Office; and the District Attorney General for the 22nd Judicial District.
In the Eastern District of Tennessee, at total of eight individuals, including five doctors, a nurse practitioner, a physician’s assistant, and an office manager were charged in four cases. Four doctors, a nurse practitioner and a physician’s assistant were charged with the unlawful distribution of opioids. Two doctors were charged with health care fraud violations. Three of these cases are related to alleged pill mill operations in the Eastern District of Tennessee. In addition to assistance provided by the FBI, DEA, and HHS-OIG, these cases were brought in connection with assistance from the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit.
In the Western District of Tennessee, 15 individuals were charged, involving eight doctors and several other medical professionals. In one case, a doctor who branded himself the “Rock Doc,” allegedly prescribed powerful and dangerous combinations of opioids and benzodiazepines, sometimes in exchange for sexual favors; over approximately three years, the doctor allegedly prescribed approximately 500,000 hydrocodone pills, 300,000 oxycodone pills, 1,500 fentanyl patches, and more than 600,000 benzodiazepine pills. In another case, a nurse practitioner charged with conspiracy to unlawfully distribute controlled substances allegedly prescribed over 500,000 Hydrocodone pills, approximately 300,000 Oxycodone pills, and approximately 300,000 benzodiazepine pills (mostly Alprazolam), along with a myriad of other controlled substances. In another case, a physician charged with controlled substances and health care fraud violations allegedly prescribed approximately 300,000 hydrocodone pills, 200,000 oxycodone pills, 2,500 fentanyl patches, and 180,000 benzodiazepine pills, and prescribed medically unnecessary durable medical equipment that was billed to Medicare. Another doctor charged with controlled substances violations allegedly prescribed approximately 4.2 million opioid pills, sometimes in dangerous combinations with other drugs, such as benzodiazepines, and prescribed opioids to known addicts. In addition to assistance provided by the FBI, DEA, and HHS-OIG, these cases were brought in connection with assistance from the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit, the Tennessee Office of Inspector General, and the West Tennessee Drug Task Force (28th District).
In the Northern District of Alabama, multiple individuals were charged in five cases, including four doctors. In one case, the owners and operators of a medical clinic and dispensary were charged with the unlawful distribution of controlled substances and health care fraud. In that case, a doctor allegedly prescribed opioids in high dosages, dangerous combinations, and in many cases, after having knowledge that patients failed drug screens and were addicts, preferring cash payments and charging a “concierge fee” that ranged from approximately $50 per visit or $600 per year. In another case, a doctor allegedly recruited prostitutes and other young women with whom he had sexual relationships to become patients at his clinic, while simultaneously allowing them and their associates to abuse illicit drugs at his house. In yet another case, a doctor allegedly dispensed controlled substances and other prescription drugs directly from the clinic, and prescribed excessive quantities of controlled substances to the same patients several times per month resulting in as many as 15 pills per day for some patients. In that case, the doctor also signed blank prescription forms to be completed by her staff when she was not at the clinic.
In addition to assistance provided by the FBI, DEA, HHS-OIG, the Defense Criminal Investigative Service and the Food and Drug Administration, Office of Criminal Investigations, these cases were brought in connection with assistance from the Hoover Police Department, the Huntsville Police Department, the Huntsville Area HIDTA Drug Task Force Strategic Counter Drug Team, the Marshall County Drug Task Force, the Alabama Medicaid Fraud Control Unit, and the Madison County Sheriff’s Office.
In the Northern District of West Virginia, a case was brought against an orthopedic surgeon who allegedly used fraudulent prescriptions to obtain tablets of acetaminophen-codeine for his own use. To obtain the pills, the surgeon allegedly wrote out prescriptions using his DEA number, and in the names of a relative even though the pills were for his own use, using a driver’s license that he had stolen from a colleague to obtain the pills from pharmacy. This case was brought in connection with assistance from the DEA and HHS-OIG.
In the Southern District of West Virginia, a doctor was charged with allegedly distributing narcotics, including dextroamphetamine, methylphenidate, and amphetamine salt, to a patient who did not have a medical need for the drugs and whom the doctor never examined. This case was brought in connection with assistance from the DEA and HHS-OIG.
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In addition to the ARPO Strike Force districts, today’s enforcement actions include cases brought in the Eastern District of Pennsylvania and the Eastern District of Louisiana.
In the Eastern District of Louisiana, a neurologist at an alleged pill mill was charged with conspiracy to dispense controlled substances and conspiracy to commit health care fraud. The defendant allegedly pre-signed prescriptions for controlled substances, including oxycodone, for patients whom he did not personally examine to determine medical necessity for the prescriptions, and pre-signed prescriptions for controlled substances while he was travelling internationally. The defendant allegedly knew that certain of these patients used their Medicare Part D and Medicaid benefits to pay for the medically unnecessary prescriptions. In addition to assistance provided by the FBI, DEA, HHS-OIG, these cases were brought in connection with assistance from the U.S. Departments of Veterans Affairs – Office of Investigations.
In the Eastern District of Pennsylvania, a former licensed practical nurse allegedly filled fraudulent prescriptions for oxycodone in her name and in the names of others at a local pharmacy in order to obtain the pills for herself and to distribute to others. In addition to assistance provided by the FBI, DEA, HHS-OIG, the Office of Personnel Management, the U.S. Marshalls Service, these cases were brought in connection with assistance from the Caln Township Police.
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For any patients impacted by the law enforcement operations, DOJ, DEA, HHS-OIG, HHS’ Substance Abuse and Mental Health Services Administration, Centers for Disease Control and Prevention, and all five State Departments of Health are deploying federal and state-level strategies to address patient harm and insure continuity of care. Additional information regarding available treatment programs and where patients can turn for assistance is available as follows:
Alabama: The Alabama Department of Mental Health has a dedicated telephone number to connect those affected by the closure. The toll-free substance abuse number is 1-844-307-1760. Information about substance abuse and opioids is available at the following websites:
http://www.alabamapublichealth.gov/pharmacy/opioid-and-heroin.html
https://mh.alabama.gov/understanding-the-opioid-crisis/
Kentucky: If you are in Kentucky and are suffering with addiction you can find help by calling 833-8KY-HELP or logging in at Findhelpnowky.org
Ohio: If you are seeking help in Ohio, please call the OhioMHAS patient helpline, at 1-877-275-6364
Tennessee: If you are seeking help in Tennessee:
• For a referral to addiction treatment services, call the Tennessee REDLINE: 800-889-9789.
• In a mental health crisis, call the Statewide Crisis Line: 855-CRISIS-1 (855-274-7471).
• For help accessing substance abuse or mental health services call the Tennessee Department of Mental Health and Substance Abuse Services Helpline: 800-560-5767 or 615-532-6700. This line is staffed Monday-Friday, 8 a.m. - 4:30 p.m. CT.
West Virginia: If you are in West Virginia and are suffering with addiction you can find help by calling 1-844-HELP-4WV or logging in at https://HelpandHopeWV.org
For individuals seeking help in other states, please call 1-800-662-HELPThe Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. The Medicare Fraud Strike Force, including the ARPO Strike Force, has charged more than 200 individuals with opioid-related crimes.
If you, a family member, friend or loved one believe you may be a victim in any of these cases or in connection with any charged defendant, please visit the following website for additional information: https://www.justice.gov/criminal-vns/case/ARPO
Additional documents related to this announcement are available here:
https://www.justice.gov/opa/documents-and-resources-april-17-2019-press-conference
20 Year-Old Man Sentenced to over 22 Years in Federal Prison for His Role in Lexington Home InvasionRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Quintrell Morris, age 20, of Columbia, South Carolina, was sentenced to over 22 years in federal prison after pleading guilty to conspiracy to commit Hobbs Act robbery, conspiracy to use/carry/possess/brandish firearms during and in relation to and in furtherance of a crime of violence, use/carry/possess/brandish firearms during and in relation to and in furtherance of a crime of violence, and felon in possession of a firearm and ammunition.
Evidence presented to the court showed that in the early morning hours of December 30, 2017, deputies with the Lexington County Sheriff’s Office responded to 911 call referencing a home invasion on Maple View Drive. Upon approaching the residence, deputies noticed the door open, entered the home, and found two armed men, Morris and his co-defendant Brandon Thompson. After detaining both Morris and Thompson, deputies located a female, who had been tied up, and her children, one of whom had called 911. The female advised that they had forced her to open a safe and give them the money from it. Deputies seized a loaded Bushmaster AR-15 .223 caliber assault rifle from Morris and a loaded Smith & Wesson 9mm handgun from Thompson. A ballistic vest was also seized from Thompson’s vehicle, which was located nearby. The investigation revealed that Morris and Thompson went to this home in an effort to rob the homeowners of proceeds from various businesses they operated.
Federal law prohibits both Morris and Thompson from possessing firearms and ammunition based upon their prior state convictions. Morris, a gang member who had just been placed on state probation two months prior to the incident, has prior state convictions for possession of a stolen motor vehicle and unlawful carrying of a weapon. Thompson has prior state convictions for armed robbery and assault with intent to kill. Thompson has also plead guilty in federal court and is awaiting sentencing.
United States District Judge Mary Geiger Lewis sentenced Morris to a total of 272 months in federal prison, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lexington County Sheriff’s Office, and the South Carolina Law Enforcement Division (SLED). This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
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17 Year Fugitive Sentenced to Federal PrisonRead the Press Release
After 17 years on the run, a former Tulsa resident was sentenced to federal prison for violating the terms of his supervised release stemming from a 1999 bank fraud conviction, announced U.S. Attorney Trent Shores.
Senior U.S. District Judge Terence Kern sentenced Steven John McGuire, 54, of Henderson, Nevada, to six months imprisonment in the U.S. Bureau of Prisons followed by 18 months supervised release with the condition that he serve six months in home detention with electronic monitoring.
On Oct. 27, 1999, McGuire was sentenced for the crime of bank fraud. The defendant, who at the time did not have a previous criminal record, was sentenced to six months of home detention with electronic monitoring to be followed by three years of supervised release. He was also ordered to pay restitution to the bank in the amount of $19,747.79. In 2002, authorities discovered that he violated the terms of his supervised release by committing bank fraud again. McGuire fled Oklahoma knowing that he would face a potential prison sentence. United States Probation Officers found McGuire’s residence abandoned, his leased vehicle returned to the dealership, and his telephone accounts disconnected. From July 2002 until his arrest in February 2019, McGuire remained a fugitive.
“Steven McGuire is a con artist. He has not changed. He has a lengthy history of avoiding responsibility as evidenced by his continued fraudulent financial activity after his initial conviction, living as a fugitive under an assumed identity, and most recently, fleeing and violently resisting police officers who were about to discover there was a warrant for his arrest,” said U.S. Attorney Trent Shores. “Justice may have been delayed for 17 years, but today justice has been served.”
During his time as a fugitive, McGuire lived under an assumed identity near Henderson, Nevada. After a routine stop for a traffic violation in February 2019, the Henderson Police Department eventually learned of the warrant for McGuire’s arrest. When McGuire provided identification to the officer during the stop, the officer discovered the identification was false. McGuire then ran from the officer, and after a lengthy foot pursuit and violent struggle, McGuire was taken into custody. The officer later found other fraudulent identification in the car. It wasn’t until McGuire was fingerprinted that his true identity became known.
In 1998, McGuire’s initial crime consisted of depositing a $25,000 temporary check into his business bank account drawn on a different bank account in McKinney, Texas, that in reality only had a balance of $100. On May 14, 1998, the victim bank credited McGuire’s account with the $25,000. This inflated the balance in that account, allowing McGuire to withdraw cash and write checks totaling $22,747.79 prior to the return of the unfunded check. This illegal practice is also known as check kiting. Later on May 28, 1998, McGuire received a legitimate check from a customer for approximately $34,000. Instead of depositing those funds into his account at the victim bank to cover his inflated balance there, McGuire opened yet another bank account at a third bank, and purchased a $33,000 Certificate of Deposit, also known as a CD, to secure a $35,000 line there. He was sentenced on Oct. 27, 1999 for the crime.
On Dec. 16, 1999, the conditions of McGuire’s supervised release were modified to reflect improper conduct on his part. McGuire’s business partner discovered that McGuire had used the working capital that he had supplied to McGuire to pay restitution for his crime instead of paying the expenses of the business. This left the business with a $9,000 debt. The business partner withdrew from the partnership. McGuire then began soliciting investors in violation of the Special Financial Conditions of his Supervised Release.
In 2002, a Petition to Revoke Supervised Release was filed alleging McGuire had committed the same type of bank fraud that had resulted in his conviction in 1999. McGuire had deposited a fraudulent check in his business account at Tulsa Case Federal Employees Credit Union, thereby inflating the balance. McGuire then used funds from the inflated balance to get the bank to issue two unfunded cashier’s checks in the amount of $6,000 and $9,893 so he could pay suppliers to his business.
McGuire remains in the custody of the U.S. Marshals pending transfer to a U.S. Bureau of Prisons facility.
The U.S. Marshal Service of the Northern District of Oklahoma and the District of Nevada, U.S. Probation Office and the Henderson Nevada Police Department conducted the investigation, and Assistant U.S. Attorney Charles McLoughlin prosecuted the case.
Tuesday 16 April 2019
Willimantic Teen Admits Illegally Manufacturing and Selling FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MOHAMMADREZA KAMALI, also known as “Reza,” 18, of Willimantic, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of dealing in firearms without a license.
According to court documents and statements made in court, an investigation into Kamali began after law enforcement learned that Kamali was offering to sell firearms to individuals in Connecticut. In October and November 2018, Kamali sold four AR-15 style firearms, which he had built himself after ordering parts on the internet, to an undercover ATF special agent.
Kamali was arrested on November 2 and has been released on a $50,000 bond since November 29.
Judge Hall scheduled sentencing for July 9, at which time Kamali faces a maximum term of imprisonment of five years.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Willimantic Police Department. The case is being prosecuted by Assistant U.S. Attorney Lauren Clark.
Two Sentenced for Victimizing Many Across the NationRead the Press Release
HOUSTON – A 53-year-old Houston man has just been ordered to prison following his conviction of conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick. James Campbell and co-defendant Hammed Akinola, a Nigerian citizen, entered guilty pleas Oct. 9, 2019.
Today, U.S. District Judge David Hittner sentenced, Campbell, 53, to 90 months in prison. At a hearing April 12, 2019, Judge Hittner upwardly departed from the U.S. Sentencing Guidelines and ordered Akinola to serve 180 months in federal prison.
In handing down the sentences, Judge Hittner noted the defendants ruined the lives of many across the nation in taking or attempting to take large sums of money from approximately 45 victims. Several of such victims included individuals sending money to their title company to close on a home in which, unbeknownst to them, money was fraudulently being transferred to a bank in Houston the defendants controlled. Not only did the victims lose their money, the banks took a large hit as well.
From on or about January 2016 through November 2017, Campbell and Akinola were involved in an international wire fraud conspiracy that consisted primarily of Business Email Compromise (BEC) fraud which targeted businesses and individuals that regularly perform wire transfer payments. They compromised legitimate business e-mail accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds by international co-conspirators.
The international co-conspirators hacked into the victims accounts and sent what appeared to the victims to be legitimate emails from banks or title companies. The victims, tricked into thinking such emails were from the bank or title companies, would then transfer the money to the accounts the defendants controlled, not knowing they were fraudulent emails.
Akinola was working with overseas conspirators who were orchestrating the BEC victimization. Those conspirators needed domestic bank accounts where they could send the funds stolen from the BEC fraud. Akinola and Campbell agreed to work together to open bank accounts and to recruit individuals in and around the Houston area to open bank accounts in order to receive the BEC wires.
Campbell and Akinola then recruited 20 other individuals who did open bank accounts to receive fraudulent funds. The proceeds of the fraud scheme were disbursed between the account holders, Campbell, Akinola and international accomplices.
In total, the Campbell and Akinola’s activity participating in the scheme and laundering its proceeds resulted in victims’ of BEC fraud transferring or attempting to transfer $10.3 million into to accounts they controlled.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspection Service and the FBI conducted the investigation. Assistant U.S. Attorneys Suzanne Elmilady and Melissa Annis are prosecuting the case.
Two People Sentenced for Conspiracy to Counterfeit United States CurrencyRead the Press Release
Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today that Michael Bell, 33 of Granite City, Illinois, and Kelly Seeger, age 37, of O’Fallon, Illinois, were sentenced in United States District Court for conspiring to manufacture United States Currency. A Federal Grand Jury indicted Bell and Seeger on July 18, 2018. The indictment alleged that between November of 2017 and April 8, 2018, the two had manufactured counterfeit currency and possessed items and equipment necessary for counterfeiting.
Bell was sentenced on April 12, 2019 to 15 months of incarceration; Seeger was sentenced on April 11, 2019 to 18 months of incarceration. Both defendants were ordered to serve 3 years of supervised release following their term of incarceration. Seeger’s sentence was higher than that of her codefendant because of Seeger’s more extensive criminal history. The Court, in sentencing the defendants to imprisonment, stated that the nature of criminal activity was serious because of the need to protect the integrity of United States currency but also stated that the defendants’ efforts to counterfeit currency was a symptom of both Bell and Seeger’s downward spiral with the use of methamphetamine.
The Granite City, Illinois, Collinsville, Illinois, O’Fallon, Illinois, Police Departments and the United States Secret Service participated in the investigation. The case was prosecuted by Assistant United States Attorney Ranley R. Killian.
Two Florida Men Sentenced for Their Roles in Multimillion-Dollar Credit Card Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JAMES BECKISH and JOSEPH ANTHONY DEMARIA were sentenced to 48 and 36 months in prison, respectively, for their participation in a conspiracy to commit wire fraud in connection with a fraudulent scheme to place more than $7 million in unauthorized charges on the credit cards of thousands of consumers. BECKISH and DEMARIA were sentenced by United States District Judge Edgardo Ramos.
U.S. Attorney Geoffrey S. Berman said: “Beckish and Demaria operated a scheme in which they purported to sell dietary supplements to consumers online. In lieu of dietary supplements, consumers got nothing but headaches, credit card processors got ripped off, and Beckish and Demaria’s wallets got fatter. Now they have been sentenced to prison and ordered to repay the money they stole.”
According to the Complaint, the Information to which BECKISH and DEMARIA pled guilty, as well as court filings and statements made in public court proceedings:
Between 2013 and 2017, BECKISH, DEMARIA, and others participated in a fraudulent scheme to place recurring and unauthorized charges on thousands of victims’ credit cards. As part of the scheme, the defendants created dozens of shell companies that purported to sell dietary supplements and similar products called “nutraceuticals” over the internet. The defendants and their co-conspirators opened fraudulent bank accounts on behalf of the shell companies and applied for merchant accounts for the shell companies with credit card payment processors, sometimes by submitting fabricated records. The defendants then used their merchant accounts to place unauthorized and recurring charges on thousands of credit cards, often without shipping any product to the cardholders. As a result of the defendants’ criminal scheme, credit card processors paid millions of dollars in refunds for charges associated with the defendants’ companies in an attempt to refund affected consumers.
BECKISH and DEMARIA were the leaders and organizers of this criminal enterprise, controlling the shell companies, overseeing and directing the actions of their co-conspirators, and making the decisions regarding how the scheme would operate and how the conspirators would evade law enforcement detection.
In total, the defendant’s scheme resulted in at least $7,231,878 in fraudulent credit card charges over a one-year period.
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BECKISH and DEMARIA each pled guilty to one count of conspiracy to commit wire fraud on October 11, 2018. In addition to the prison terms, BECKISH and DEMARIA were each sentenced to three years of supervised release and ordered to forfeit $7,231,878 and pay the same amount in restitution.
Mr. Berman praised the investigative work of the United States Secret Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Sassoon, Olga Zverovich, and Michael McGinnis are in charge of the prosecution.
Two Brothers Plead Guilty in Conspiracy to Distribute Opioids Through Sham Medical Clinics and Corrupt DoctorsRead the Press Release
LOS ANGELES – Two San Fernando Valley brothers have pleaded guilty to federal criminal charges, admitting that they conspired to distribute powerful narcotics such as hydrocodone and oxycodone via sham medical clinics that hired corrupt doctors who wrote fraudulent prescriptions to black market customers.
Minas Matosyan, a.k.a. “Maserati Mike,” 38, of Encino, and Hayk Matosyan, 32, of Granada Hills, each pleaded guilty on Monday to one count of conspiracy to distribute a controlled substance. United States District Judge Philip S. Gutierrez has scheduled a July 15 sentencing hearing for the brothers, each of whom faces a statutory maximum sentence of 20 years in federal prison.
The Matosyan brothers were arrested in August 2017 pursuant to a grand jury indictment that charged 12 defendants in a scheme to divert at least 2 million prescription pills for sale on the black market. A September 10 trial date has been scheduled for most of the remaining defendants.
According to his plea agreement, Minas Matosyan admitted to controlling the sham clinics and hiring corrupt doctors who allowed their names to be used on fraudulent prescriptions in exchange for kickbacks. Minas Matosyan also admitted to stealing the identities of other doctors and then issuing prescriptions in those doctors’ names, either by personally acquiring prescription pads in the doctors’ names or by arranging for other co-conspirators to do so. The elder Matosyan also admitted to staffing receptionists at the clinics who would falsely verify the phony prescriptions when pharmacists called to verify them. Minas Matosyan sold narcotic prescriptions to black market customers – either directly or through couriers – and also sold bulk quantities of hydrocodone and oxycodone he had acquired from phony prescriptions filled at pharmacies by other customers.
In May 2016, Minas Matosyan spoke with a doctor and offered him a “very lucrative position” where the doctor would “sit home making $20,000 a month doing nothing,” according to the plea agreement. After the doctor declined the offer, Matosyan stole the doctor’s identity, sending a co-conspirator a text message containing the doctor’s full name, medical license number and national provider identifier number that the co-conspirator used to order prescription pads in the doctor’s name. Over the next two months, Matosyan and his co-conspirators sold fraudulent prescriptions purportedly issued by the victim doctor for at least 9,450 pills of oxycodone and 990 pills of hydrocodone, the plea agreement states.
Hayk Matosyan admitted in his plea agreement that he aided the conspiracy by serving as a courier of oxycodone or related proceeds from the sale of oxycodone.
The investigation in this case is being conducted by the Drug Enforcement Administration; Internal Revenue Service Criminal Investigation; the U.S. Department of Health and Human Services - Office of Inspector General; the Ventura County Sheriff’s Office, Pharmaceutical Crimes Unit; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The primary investigative agencies received substantial assistance from the Los Angeles County Sheriff’s Department, the Los Angeles Police Department, the California Department of Justice, and the Orange Police Department.
This matter is being prosecuted by Assistant United States Attorney Benjamin Barron of the Organized Crime Drug Enforcement Task Force.
Twenty Defendants Indicted on Federal Racketeering and Related Charges at Maryland Correctional Institute JessupRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted 20 defendants on federal racketeering and related charges at the Maryland Correctional Institute Jessup (MCIJ), including correctional officers, employees, contractors, inmates, and outside “facilitators,” for allegedly paying bribes to correctional officers and other staff members to smuggle contraband, including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison. The indictment was returned on March 28, 2019, and made public today upon the arrest of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore, of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Secretary J. Michael Zeigler, of the Maryland Department of Public Safety and Correctional Services.
“Our public officials—including correctional officers and prison staff—must conduct their duties with integrity and professionalism,” said U.S. Attorney Robert K. Hur. “The indictment alleges that prison officials took bribes to smuggle contraband for inmates, and assaulted inmates. Corrupt correctional officers and staff endanger the lives of their co-workers and of the inmates entrusted to their care and supervision, and undermine everyone’s faith in the administration of justice.”
“One of the FBI’s top priorities continues to focus on the detection of corruption,” said FBI Assistant Special Agent in Charge Brian Nadeau. “Today’s arrests are the result of the seriousness the FBI takes regarding unlawful actions conducted by public servants who use their position to enrich themselves.”
“Today’s action brings the number of officers, inmates and citizen accomplices indicted for Maryland prison corruption to close to 200 since Gov. Hogan made it a priority when taking office in 2015,” said Acting Secretary Michael Ziegler of the Maryland Department of Public Safety and Correctional Services. “And we are far from finished in arresting those who cannot live up to their oath to protect the public, our staff and those in our custody.”
According to the indictment, MCIJ was a medium-security prison that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
The 11-count indictment alleges that from in or about 2014, until the present, the COs, employees and contractors conspired with the inmates and outside facilitators to smuggle contraband into MCIJ, including narcotics, cell phones, unauthorized flash drives, and tobacco. According to the indictment, inmates and facilitators paid COs, employees, and contractors for smuggled contraband in cash, money orders, Green Dot cards, and using PayPal and other electronic forms of payment. Inmates were able to use contraband cell phones to pay COs, employees, and contractors directly using PayPal from within MCIJ. Inmates also received payments from other inmates for contraband through PayPal and Green Dot, often with the assistance of facilitators.
Specifically, the indictment alleges that the defendants conspired to smuggle and traffic in narcotics within MCIJ, including heroin, fentanyl, cocaine, MDMA (commonly referred to as “molly” or ecstasy), buprenorphine (commonly referred to as “Suboxone,” a prescription opioid used to treat heroin addiction), marijuana and synthetic cannabinoids (otherwise known as “K2”), and other contraband, including cell phones, unauthorized flash drives, and tobacco, in order to expand their criminal operations. The profits made by the inmates by selling contraband in the prison far exceeded the profits that could be made by selling similar items on the street. For example, defendant inmates could purchase Suboxone strips for $10 each and sell them inside MCIJ for $50 each, a profit of more than 1,000 percent.
According to the indictment, although COs and other MCIJ employees were required to pass through security screening at the entrance to MCIJ, the COs, employees, and contractors were able to hide contraband on their persons. Further, the COs, employees, and contractors took breaks during their shifts and returned to their cars to retrieve contraband. Once the COs had the smuggled contraband inside the facility, they delivered it to inmates in their cells; at the medical facility; in the kitchens during routine deliveries; in private offices where inmates and staff interacted; and at pre-arranged “stash” locations, like the library, among other locations. The indictment alleges that defendant inmates who had jobs that allowed them to move throughout the housing unit and elsewhere in the prison, commonly referred to as “working men,” took orders for contraband from inmates, provided orders to corrupt COs, employees, and contractors, and delivered contraband to inmates.
The indictment alleges that defendant COs had sexual relationships with inmates and exchanged sex for contraband. In addition, these sexual relationships allegedly facilitated smuggling and trafficking relationships between COs and inmates.
Finally, the indictment alleges that between 2005 and 2017, CO Owen Nesmith deprived three inmates of their civil rights by sexually assaulting the inmates. In two cases, the indictment alleges that Nesmith threatened the inmates. Specifically, the indictment alleges that Nesmith threatened that Inmate 1 would be subjected to death and serious bodily injury, and threatened to ensure that Inmate 3 would not receive parole because he would falsely allege that Inmate 3 had assaulted Nesmith. When questioned by law enforcement, the indictment alleges that Nesmith falsely stated that he had never brought drugs into the prison, sold drugs, or had any inappropriate relationships or sexual contact with any inmates while he was at MCIJ.
If convicted, nineteen defendants face a maximum sentence of 20 years in prison for racketeering. Nine defendants face up to 20 years in prison for conspiracy to distribute and possess with intent to distribute drugs; and three defendants up to 20 years in prison for possession with intent to distribute controlled substances. In addition, Nesmith faces a maximum of life in prison for deprivation of rights under color of law for threatening death or serious bodily injury, and one year in prison for the other two counts; and a maximum of five years in prison for making false statements.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
MCIJ Indictment Defendants
Correctional Officers/Employees:
Owen Nesmith, Correctional Officer Lieutenant, age 50, of Baltimore;
Patricia McDaniel, Correctional Dietary Officer, age 26, of Baltimore;
Janel Griffin, Correctional Officer, age 40, of Baltimore;
Robert Doggett, Case Manager Employee, age 53, of Baltimore;
Ricky McNeely, Contract Exterminator, age 39 of Baltimore; and
Joseph Nwancha, Contract Nurse, age 39, of Baltimore.Inmates:
Corey Alston, a/k/a C, age 29;
Jerrard Bazemore, a/k/a Tic, age 34;
Irving Hernandez, a/k/a Irvin, age 25;
Todd Holloway, a/k/a J, age 34;
Schvel Mack, a/k/a Weezy, and L Weezy, age 29;
Larnell Megginson, a/k/a Julio, age 38; and
Tavon Price, a/k/a Tay, age 35.Facilitators:
Aldon Alston, age 55, of Baltimore;
Ashley Alston, age 28, of Baltimore;
Tyirisha Johnson, age 23, of Baltimore;
Jamia Lawson, a/k/a Mia, age 27, of Baltimore;
Jerrell McNeill, a/k/a Rell, age 35, of Baltimore;
India Parker, age 33, of Parkville, Maryland; and
Lekeah Pendleton, a/k/a Keah, age 40, of Catonsville, Maryland.# # #
Tonalea Man Sentenced to Prison for Assault on Family MemberRead the Press Release
PHOENIX – On April 15, 2019, Shane Tyreke Mann, 21, of Tonalea, Ariz., was sentenced by U.S. District Judge Susan M. Brnovich to 33 months’ imprisonment, to be followed by three years of supervised release. Mann had previously pleaded guilty to assault resulting in serious bodily injury.
On May 15, 2018, Mann assaulted a family member, including by kicking the victim in the face and back. As a result, the victim suffered serious injuries that required hospitalization. The assault occurred on the Navajo Nation. Both Mann and the victim are enrolled members of the Navajo Nation.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8221-PCT-SMB
RELEASE NUMBER: 2019-052_Mann
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Thompsontown Man Sentenced to 19 Months in Prison for Defrauding Disabled Veteran of $316,360Read the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Ehrhart, age 48, of Thompsontown, Pennsylvania, was sentenced to 19 months’ imprisonment on April 15, 2019, by Chief United States District Court Judge Christopher C. Conner for defrauding a disabled Veteran, the Veteran’s Administration, and the Social Security Administration. Chief Judge Conner also ordered Jason Ehrhart to pay $316,360 in restitution to his nephew, Aaron Ehrhart.
According to United States Attorney David J. Freed, Jason Ehrhart pleaded guilty on November 20, 2018, to a criminal information charging him with one count of health care fraud. Jason’s former wife, Laurie Ehrhart, age 48, of Newport, Pennsylvania, pleaded guilty on December 7, 2018, to one count of health care fraud and is scheduled to be sentenced on June 6, 2019.
In 1985 while serving in the U.S. Army, a veteran who was a former resident of Perry County, Pennsylvania, was diagnosed with multiple sclerosis. In 1998, the veteran began receiving disability benefits from the Department of Veterans Affairs (VA) and in 2006 began receiving disability benefits from the Social Security Administration (SSA). The veteran was eventually hospitalized on a permanent basis at the VA hospital in Lebanon, Pennsylvania in November of 2004.
In August 2006, the veteran was deemed by the VA to be incompetent to handle his own financial affairs. As a result, on October 2, 2006, Jason Ehrhart applied to serve as the veteran’s VA Fiduciary and Legal Custodian. Under the terms of a Fiduciary Agreement, Jason Ehrhart agreed to use all of the veteran’s VA disability benefits exclusively for the veteran’s benefit. The agreement warned him that the funds were not for his personal use. The Fiduciary Agreement also required Jason Ehrhart to submit an annual accounting to the VA with respect to the amount of money spent on the veteran’s behalf.
While Jason Ehrhart served as the veteran’s VA Fiduciary and Legal Custodian, all of the veteran’s VA benefits, plus most of his Social Security disability checks, were deposited into a checking account Jason opened at The Orrstown Bank. Altogether, $476,260 in federal benefits ($422,828 in VA disability, $48,187 in Social Security disability, and $5,244 in VA clothing allowance) were deposited into the account between January 2009 and August 2016.
At least $316,360 of the $476,260 was misappropriated by Jason and Laurie Ehrhart and converted to their own use between October 2006 and August 2016. Checks totaling $218,832 ($96,202 payable to Jason Ehrhart and $122,630 payable to Laurie Ehrhart), were drawn against the account. Of the $218,832, $157,742 was deposited into Jason and Laurie Ehrhart’s joint checking account at the Juniata Valley Bank (JVB) and at least $23,496 was converted to cash. Thereafter, the funds in the joint JVB account were employed by Jason and Laurie Ehrhart to pay their personal expenses.
Another $7,174 in checks were made payable to Jason and Laurie Ehrhart’s two minor children. Jason Ehrhart instructed the children to take the checks to the bank, cash them, and to surrender the cash to him.
Another $19,890 in checks were made payable to another couple who were Jason and Laurie Ehrhart’s best friends. Jason Ehrhart regularly treated the couple and their children to dinners out and at least two, all-expense paid vacations to Disney World in Florida, purchased two automobiles for the family, and paid for the wife’s dental work.
To conceal his embezzlements, Jason Ehrhart submitted eight false annual accountings to the VA in which he falsely claimed he spent $402,408 on the veteran’s behalf between October 2006 and October 2015. The itemized expenditures in the accountings were grossly inflated. For example, Jason Ehrhart claimed he paid the mortgage on the veteran’s residence ($1,631 per month) plus the veteran’s share of the mortgage on his mother’s residence ($881) after she died in May 2011. However, the lenders against both properties obtained judgments and they were eventually foreclosed and sold.
Jason Ehrhart also falsely claimed in the annual accountings that he spent thousands on miscellaneous expenditures for the veteran, including storage unit rentals, vehicle maintenance bills, state and local taxes, life and auto insurance, and credit card bills. However, in 2016 the veteran’s specially equipped wheelchair van, for which Jason Ehrhart claimed he spent approximately $32,395 for vehicle maintenance, was found broken down and abandoned along a Perry County roadside.
The veteran died at the Lebanon VA Hospital on July 30, 2018.
The Department of Veteran Affairs, the Office of Inspector General, the Pennsylvania State Police, and the Social Security Administration’s Office of Inspector General investigated the case. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Tennessee Man Charged in Scheme to Defraud Consumers by Fraudulently Posing as an AttorneyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of JOHN LAMBERT, a/k/a “Eric Pope,” for wire fraud and conspiracy to commit wire fraud. LAMBERT was arrested earlier today in Bristol, Tennessee, and was presented in the Eastern District of Tennessee.
U.S. Attorney Geoffrey S. Berman stated: “As alleged, John Lambert purported to be a high-powered attorney with an elite law school degree. However, as we allege, Lambert was just a wolf in sheep’s clothing, swindling his victims of their hard-earned money. Now, Lambert is in need of a real attorney as he must answer for his alleged crimes.”
FBI Assistant Director in Charge William F. Sweeney Jr. said: “People typically seek the assistance of an attorney when they feel they’ve been wronged or in preparation for a significant life event that involves financial planning. The fact that Lambert allegedly exploited those who believed he was advocating on their behalf makes his supposed criminal activity even more egregious. While he’s not at risk of losing a law license, it doesn’t mean there won’t be consequences for his actions.”
According to the allegations in the Complaint filed today[1]:
LAMBERT and at least one co-conspirator perpetrated a scheme to defraud consumers of legal advice and services by falsely representing through web-based platforms for freelancing services, websites, emails, phones calls, and other means, that they were experienced attorneys who had attended elite law schools, when in fact they were not attorneys and had never attended law school. Having misled their victims into believing they were highly qualified attorneys, LAMBERT and his co-conspirator then attempted to, and in some cases did, provide legal advice and services to their victims in exchange for which their victims paid money.
At least six individual and corporate victims paid LAMBERT for purported legal advice and services on a wide range of subjects, including issues with their credit reports, drafting a will, corporate and intellectual property law, and a dispute with a former employee. One of the victims withdrew money from the victim’s 401(k) account to pay LAMBERT.
As alleged, LAMBERT used the alias “Eric Pope” when communicating with the victims, and falsely represented to at least some of them that he was an attorney at a law firm called “Pope and Dunn;” had attended an elite law school; was an expert in corporate, finance, and property law; had worked with hundreds of clients, including “tech moguls” and “entrepreneurs” in the United States and Europe; and was located in New York City. But according to the Complaint, LAMBERT was not and had never been an attorney, and was not located in New York City.
* * *
LAMBERT, 23, of Bristol, Tennessee, has been charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of LAMBERT will be determined by a judge.
The charges in the Complaint are merely accusations, and LAMBERT is presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of Special Agents from the U.S. Attorney’s Office for the Southern District of New York and the FBI.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Substitute Teacher and Coach Arrested and Charged with Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Steven Gasiorek, 33, of Cheektowaga, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Elizabeth Moellering, who is handling the case, state that according to the complaint, on April 10, 2019, the Fauquier County, Virginia Sheriff’s Office contacted the Cheektowaga Police Department regarding a 14 year-old-male from Virginia (Victim 1) who had been communicating through Instagram with a person utilizing Instagram account LEXIGURL1015. Victim 1, who was under the impression that LEXIGURL1015 was a teenage girl from California, sent pornographic images of himself to the account.
Subsequent investigation determined that the account belonged to the defendant, who is a substitute teacher and coach at a local high school. A search warrant was executed at the defendant’s Lehigh Street residence this morning. Investigators seized a laptop computer that contains several images constituting child pornography. Further investigation suggests that Gasiorek has been engaged in this sort of activity for several years.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and will be released on conditions.
Members of the public who have information related to this case are asked to call the Federal Bureau of Investigation at 716-843-1616.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Stateless National of the Palestinian Authority Indicted for Visa Fraud and Making False Statements to U.S. Customs and Border Protection OfficialsRead the Press Release
BOSTON – A stateless national was indicted today in federal court in Boston for visa fraud and making false statements regarding acts of violence he committed against the Israeli Defense Force (IDF) along the Gaza-Israel border.
Waad Alzerei, 19, a stateless national of the Palestinian Authority, was indicted on one count of presenting a fraudulent visa and one count of making false statements. On March 20, 2019, Alzerei was arrested and charged by criminal complaint. On April 8, 2019, a federal magistrate judge denied the government’s motion for detention and released Alzerei from federal custody. Alzerei was subsequently taken into custody by U.S. Immigration and Customs Enforcement.
According to the indictment, on Feb. 27, 2019, Alzerei arrived at Boston’s Logan International Airport on a flight from Cairo, Egypt via Paris, France. Shortly thereafter, two Customs and Border Protectioin (CBP) officers interviewed Alzerei to determine whether he met the admissibility requirements to enter the United States. Alzerei, who had his leg amputated above the knee in 2015, identified himself as a Palestinian citizen and presented a non-expired tourist visa. Alzerei allegedly told CBP officers that he lost his leg on Oct. 23, 2015, after he was shot by a stray bullet from the IDF while picking olives in a field near the Gaza-Israel border. Alzerei stated that, at the time he was shot, there were no protests going on and he was not involved in any type of riot, rally, or demonstration. The CBP officers asked Alzerei if he had ever been “involved in any border riots, rallies, or demonstrations” in his life, and Alzerei responded, “No.”
The CBP officers then conducted a search of Alzerei’s cell phone and found numerous images and videos demonstrating a possible affiliation between Alzerei and the Popular Front for the Liberation of Palestine (PFLP) and Hamas, both of which have been designated by the U.S. Government as Foreign Terrorist Organizations since 1997. According to the indictment, the CBP officers also found date-stamped photographs of Alzerei hurling large rocks at the IDF on Oct. 23, 2015, the day he was shot in the leg near the Gaza-Israel border.
After reviewing the images and videos on Alzerei’s phone, CBP officers interviewed Alzerei again. During this interview, Alzerei admitted that the images found on his phone depicted him on Oct. 23, 2015—hours before he was shot—slinging rocks at Israeli troops near the Gaza-Israel border along with members of Hamas. Alzerei allegedly said that he lied on his visa application and to the U.S. Consulate about the circumstances surrounding his injured leg in order to obtain a tourist visa. Alzerei admitted that he knew he would not get a U.S. visa if he told the truth about his activities on Oct. 23, 2015.
The charge of visa fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of making false statements provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; William Ferrara, Director of Field Operations, U.S. Customs and Border Protection; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations, Boston Field Office made the announcement today. The investigation was conducted by the FBI Boston’s Joint Terrorism Task Force with assistance from U.S. Customs and Border Protection. Assistant U.S. Attorneys B. Stephanie Siegmann and Jason Casey of Lelling’s National Security Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southampton Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Southampton man pleaded guilty in federal court in Springfield today to distribution, receipt and possession of child pornography.
Bruce Singer, 72, pleaded guilty to five counts of distribution of child pornography, one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 19, 2019. Singer was indicted in March 2017 and was released on conditions. At today’s hearing, Singer was ordered detained pending sentencing.
On various occasions between April 30, 2013, and June 25, 2015, Singer sent and received child pornography by text and email. When police searched his home in 2015, Singer possessed hundreds of images of child pornography on various electronic devices, including images of several known child victims. Singer exchanged child pornography with others, including James J. Smith, who was convicted in federal court in Springfield of distributing, transporting, receiving, and possessing child pornography. In September 2017, Smith was sentenced to 138 months in federal prison.
The charges of receipt and distribution of child pornography each provide for no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a $250,000 fine. If the plea agreement between the parties is accepted by the Court, Singer will be sentenced to eight years in prison. 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 Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Northampton Police Chief Jody Kasper; and Easthampton Police Chief Robert Alberti made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office and Trial Attorney Leslie Fisher of the U.S. Department of Justice’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
South Boston Man Pleads Guilty to Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
BOSTON – A South Boston man pleaded guilty today in federal court in Boston to illegally possessing a firearm and ammunition.
Jermaine Tindal, 29, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 18, 2019. Tindal was arrested and charged in September 2018 and has been in custody since.
On July 19, 2018, Tindal possessed a Harrington and Richardson 12-gauge shotgun and five rounds of Remington 12-gauge ammunition after previously being convicted in South Carolina of a crime punishable by more than one year in prison. He then sold the shotgun and ammunition to another individual in the Mary Ellen McCormack public housing development.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Sacramento Man Sentenced to over 2 Years for Obstruction of Justice and PerjuryRead the Press Release
SACRAMENTO, Calif. — Joseph Woloszyn, 33, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to two years and three months in prison for obstruction of justice and perjury, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 28, 2017, Woloszyn provided false testimony under oath at a district court evidentiary hearing in the case of United States v. M.W. (2:13‑cr‑067-KJM). Woloszyn testified on behalf of the defendant and provided false statements related to his gang tattoos, nickname, phone number, and contacts with the defendant. Prior to his testimony, during a recorded jail call, Woloszyn told the defendant, “When they come to me, good luck.” Woloszyn further assured the defendant, “I’m going to stay solid all the way through, regardless.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Rockport Man is Sentenced to Four Months for Health Care Fraud and EmbezzlementRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Michael A. Morrison, 42, of Rockland, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to four months in prison and three years of supervised release, including four months of home confinement, for health care fraud and embezzlement from a health care benefit program. He was also ordered to pay about $206,000 in restitution. Morrison pleaded guilty to the charges on December 11, 2018.
According to court documents, between 2005 and 2016, the defendant was the manager of the Trade Winds Health, Swim and Tan Club in Rockland which also operated a physical therapy practice known as Coastal Physical Therapy. From 2014 through 2016, the defendant billed about $175,000 in false claims for reimbursement to Medicare, MaineCare, Anthem Blue Cross and Blue Shield and a Veterans Administration health care program. Some claims were false because the defendant exaggerated the length of time therapists spent with patients. He also made claims for appointments that were cancelled, for services that he provided even though he was not properly licensed, and using the names of therapists who were not working on the dates claimed.
Court documents also show that the defendant embezzled about $31,000 from the Health Club by using a Health Club credit card to pay for personal Amazon.com purchases and by stealing cash that he failed to deposit into the Health Club’s bank account.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Maine Attorney General’s Office, Healthcare Crimes Unit; the Department of Veterans Affairs, Office of Inspector General; and the Rockland Police Department.
Rockford Man Charged with Distribution of Cocaine and Illegal Possession of FirearmsRead the Press Release
ROCKFORD — A Rockford man, BRIAN KOTLIENTHONG, 32, appeared in federal court today following a grand jury indictment charging him with three counts of distributing cocaine and three counts of illegally possessing a firearm as a convicted felon.
Kotlienthong appeared before U.S. Magistrate Judge Iain D. Johnston, who scheduled a detention hearing for April 22, 2019, at 2:00 p.m., in federal court in Rockford.
As alleged in the indictment, Kotlienthong distributed cocaine three times in Rockford in December 2017. The indictment further alleged that Kotlienthong, who had a previous felony conviction, illegally possessed two 9mm pistols and a 9mm rifle.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The investigation was conducted by ATF and the Stateline Area Narcotics Team, which includes law enforcement officers and agents from the Illinois State Police and the Ogle County Sheriff’s Office. The government is represented by Assistant U.S. Attorney Talia Bucci.
Each count of distributing cocaine carries a maximum penalty of up to 20 years in prison, to be followed by a period of supervised release of three years to life, and a fine of up to $1 million. Each count of illegally possessing a firearm carries a maximum penalty of up to ten years in prison, to be followed by up to three years of supervised release, and a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Proposed Class Action Settlement Involving Lenny & Larry’s Cookies Amended to Give Consumers More ValueRead the Press Release
Following objections raised by the United States and others, the parties in a class action matter involving Lenny & Larry’s cookies filed an amended proposed settlement that would direct additional value toward consumer plaintiffs, the Department of Justice today announced.
“Congress passed the Class Action Fairness Act to stop questionable settlements that benefit lawyers instead of injured consumers,” said Principal Deputy Associate Attorney General Jesse Panuccio. “As part of our efforts to protect consumers, the Department of Justice will continue to object to settlements that are not fair, reasonable, and adequate.”
“The Class Action Fairness Act is designed to help ensure that class action settlements do not unreasonably benefit attorneys or third parties at the expense of the consumers involved,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to take action when we see unsuitable class action settlements.”
Plaintiffs in the case, Cowen et al. v. Lenny & Larry’s, Inc., alleged that labels for the defendant’s “The Complete Cookie” product included inaccurate nutritional information. Under the original proposed settlement reached between the parties and filed in October 2018, individual class members would have received pro rata shares of a $350,000 cash fund or up to $30 in free cookies. The defendant also agreed to distribute free cookies worth about $3 million to the general public through giveaways at certain health food stores. Based on the purported total value of the settlement, class counsel sought $1.1 million in attorney’s fees, which the defendant agreed not to oppose.
In a Statement of Interest filed Feb. 15, 2019, the United States argued that the court should reject the settlement because it directed most of its value toward non-class members and attorney’s fees rather than to consumer plaintiffs. The parties thereafter filed an amended proposed settlement on April 2, 2019. Under the amended settlement, individual class members would receive shares of a $889,000 cash fund, or up to $35 in free cookies. Class counsel now seek approximately $410,000 in attorney’s fees. The case is pending in U.S. District Court for the Northern District of Illinois, which must approve any final settlement.
The Class Action Fairness Act of 2005 provides the Attorney General and state officials an opportunity to review federal class action settlements before district courts grant final approval. The United States recently filed an amicus brief in another class action case pending before the Sixth Circuit Court of Appeals, Chapman et al. v. Tristar Products, Inc. The government argued that the Chapman settlement unfairly awarded millions of dollars to attorneys but provided consumers with little more than nearly worthless coupons.
Trial Attorney Kendrack Lewis of the Civil Division’s Consumer Protection Branch represents the United States in the matter. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Pittsburgh Man Sentenced to 3+ Years in Prison for Trafficking Heroin near Playgrounds and Public Housing FacilitiesRead the Press Release
PITTSBURGH, PA – Quinshawn Haynie was sentenced to three years and four months (40 months) in federal prison for conspiring to distribute heroin and fentanyl, and for possessing those drugs 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, age 29 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 his prison term. Prior to imposing the sentence, the Court was informed that Haynie trafficked heroin and fentanyl close to playgrounds and public housing facilities in 2017 while he was on state parole following a 7-year to 14-year state prison sentence for a violent home invasion robbery he committed in 2007.
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 convictions and sentence in this case.
Philadelphia Felon Pleads Guilty to Illegally Possessing Guns and DrugsRead the Press Release
JOHNSTOWN, Pa. – A resident of Philadelphia, Pa., pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Robert L. Green, 41, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 27, 2018, Green possessed with intent to distribute more than 28 grams of cocaine base, commonly known as “crack,” and a quantity of fentanyl. Also, on July 27, 2018, he was found in possession of a Harrington & Richardson .32 caliber revolver and a Smith & Wesson .380 caliber handgun. On April 12, 2004, Green was convicted in the Court of Common Pleas of Philadelphia County, PA, of robbery, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Judge Gibson scheduled sentencing for August 12, 2019, at 1:30 p.m. The law provides for a maximum sentence of 70 years in prison and a fine of $6,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Special Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department conducted the investigation that led to the prosecution of Green.
Palm Bay Man Sentenced to 14 Years for Receipt and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Christopher Ray Faella (34, Palm Bay) to 14 years in federal prison, followed by 10 years of supervised release, for receiving and possessing child pornography. The court also ordered Faella to forfeit a cellphone and micro SD cards, which were used to download and store images of child pornography.
Faella had pleaded guilty on August 15, 2018.
According to court documents, on April 13, 2017, the Palm Bay Police Department initiated an investigation, based on a tip received by the National Center for Missing and Exploited Children (NCMEC), that a Google account under Faella’s name had uploaded files containing child pornography. The tip involved 946 images and 22 videos of child pornography. Google identified Faella’s email address and several internet protocol addresses that were associated with Faella and his residence.
On July 22, 2017, the Palm Bay Police Department executed a search warrant at Faella’s residence. Faella, a known felon with a lengthy criminal history, was in possession of a .22 caliber revolver and several rounds of .22 caliber ammunition, as well as marijuana and drug paraphernalia.
A forensic analysis of Faella’s cellphone revealed 617 images and 3 videos of young children engaged in sexually explicit conduct that had been downloaded through Google Chrome. Faella also had several micro SD cards that contained 1,147 images of child pornography. The images depicted bondage, bestiality, and other acts of sadistic conduct perpetrated against young children, including toddlers. As a result, the Palm Bay Police Department referred the investigation to the FBI for the filing of criminal charges.
This case was investigated by the Palm Bay Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Omaha Man Sentenced for Attempted Bank RobberyRead the Press Release
United States Attorney Joe Kelly announced that Javon Murry, age 26, was sentenced in federal court today in Omaha, Nebraska, for one count of attempted bank robbery. The Honorable Laurie Smith Camp sentenced Murry to 34 months of imprisonment. Murry was also sentenced to 6 months imprisonment, consecutive to the attempted robbery charge, for violating his supervised release on an earlier case in which he had been convicted of giving a false statement to a licensed firearms dealer. After completing his terms of imprisonment, Murry will begin a three-year term of supervised release. There is no parole in the federal system.
On August 30, 2018, two individuals approached the front door of the Mutual 1st Federal Credit Union, 8073 Blondo Street, in Omaha, Nebraska, dressed in dark clothing with their faces concealed. When Murry attempted to open the door, and found that it was locked, he and the other suspect fled the area. Omaha Police officers did a canvass of the area and located the car seen at the attempted robbery. They learned Murry owned the vehicle. After searching for Murry, they made contact with him on August 31. At that time, Murry admitted that he approached the bank with a mask on and went to the bank with the intent to rob it.
The case was investigated by the Federal Bureau of Investigation Great Plains Violent Crimes Task Force and Omaha Police robbery unit.
Ohio Man Sentenced for Attempted Money LaunderingRead the Press Release
TOPEKA, KAN. – An Ohio man who was arrested in Kansas on his way to buy marijuana in Colorado was sentenced today to 12 months and a day in federal prison, U.S. Attorney Stephan McAllister said.
Julian Solorza, 37, Cincinnati, Ohio, pleaded guilty to one count of attempted money laundering. In his plea, he admitted the Kansas Highway Patrol pulled him over in Geary County, Kan. Troopers found $46,828 in cash in 41 separately banded bundles in the car. They also found two empty pieces of luggage containing traces of marijuana. Solorza admitted the cash was the proceeds derived from selling marijuana and he was on his way to Colorado to buy more.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Skip Jacobs for their work on the case.
Obion County Man Indicted for Child Pornography OffensesRead the Press Release
Memphis, TN – A Obion County man has been indicted on charges of production, attempted production and possession of child pornography. U.S. Attorney D. Michael Dunavant announced the indictment today.
According to the two-count indictment, between December 2018 and February 2019, Eric Jobe, 40, of Union City, knowingly used and attempted to use a child under twelve years of age to engage in sexually explicit conduct for the purpose of producing images and/or videos of such conduct. Jobe is also alleged to have possessed a cell phone containing child pornography, including prepubescent minors.
If convicted of both counts, Jobe faces up to fifty years' imprisonment and a $250,000 fine. The United States also seeks criminal forfeiture of any proceeds related to the crime.
U.S. Attorney D. Michael Dunavant said: "Let this indictment serve notice on those who use the internet and electronic means to exploit, abuse, and victimize minor children: You cannot hide, we will track you down, and you will be held accountable for such disturbing and predatory criminal conduct."
This case was investigated by the FBI Memphis Child Exploitation Task Force; Tennessee Bureau of Investigation; Union City Police Department; and the 27th Judicial District Drug Task Force.
Assistant U.S. Attorney Kasey Weiland is prosecuting this case on behalf of the government.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901-747-4300.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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More than 23 Pounds of Meth Sends California Man to PrisonRead the Press Release
WICHITA, KAN. – A California man was sentenced to 75 months in federal prison Monday for smuggling more than 23 pounds of methamphetamine to Kansas, U.S. Attorney Stephen McAllister said.
Juan Beltran, 28, Bell Gardens, Calif., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted that the Kansas Highway Patrol stopped him on I-70 in Russell County, Kan. Troopers found the drugs in the trunk of his car.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Skip Jacobs for their work on the case.
Monett Woman, Mexican National Sentenced for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Monett, Mo., woman and a Mexican national have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine.
Rebecca Castillo, 37, and Heradio Rios-Zarate, 27, a citizen of Mexico, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes on Monday, April 15. Castillo was sentenced to nine years in federal prison without parole. Rios-Zarate was sentenced to 10 years and three months in federal prison without parole.
Castillo and Rios-Zarate have both pleaded guilty to participating in a conspiracy to distribute methamphetamine from March 8 to April 20, 2017.
Castillo admitted that Rios-Zarate was her direct source of supply for methamphetamine. On March 8, 2017, Rios-Zarate transported five plastic containers that contained a total of more than 2.2 kilograms of methamphetamine (4.87 pounds), with a purity level of 98 percent, from Texas. He was stopped for speeding on Interstate 40 in Texas. A police service dog alerted to the presence of drugs in the vehicle. Officers found the methamphetamine in a plastic sack on the floor behind the front passenger seat.
When Rios-Zarate saw one of the officers pull out his handcuffs, he began running into an open field. One officer pursued him on foot and the others followed into the field in their patrol cars. Rios-Zarate was apprehended without further incident. Rios-Zarate admitted that at least one pound of the methamphetamine was to be delivered to Castillo.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Texas Department of Public Safety, the Missouri State Highway Patrol, the Monett, Mo., Police Department, and the Mesa County, Colo., Sheriff’s Department.
Miami-Based Violent Criminal Enterprise Members and Associates Sentenced for RICO Conspiracy, Drug Trafficking, Robbery and Use of FirearmsRead the Press Release
This month, the last of 14 defendants were sentenced for their respective roles in a violent criminal enterprise that operated in the Miami neighborhood of Allapattah for crimes committed as early as the year 2000.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Jorge Colina, Chief, Miami Police Department (MPD), Juan Perez, Director, Miami-Dade Police Department (MDPD), and Daniel Junior, Director, Miami-Dade Corrections and Rehabilitation Department (MDCR), made the announcement as part of the Southern District of Florida Violence Reduction Partnership (VRP).
On September 14, 2018, at the conclusion of a two-month trial before U.S. District Judge Jose E. Martinez, the jury convicted 10 defendants for racketeering and drug-related offenses. On April 12, 2019, Judge Martinez completed the sentencing of the final defendant. The sentences as to the defendants convicted at trial are as follows:
Antonio Glass, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Glass was sentenced to life imprisonment for his conduct, which included the death of a victim arising from the racketeering conspiracy;
Jerimaine Bryant, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and three counts of Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to life imprisonment;
Curtis Bryant, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to life imprisonment for his conduct, which included the death of a victim arising from the racketeering conspiracy;
Samuel Hayes, of Miami, was convicted at trial of one count of Racketeering Conspiracy, two counts of Robbery, and one count of Firearm Possession in Furtherance of a Crime of Violence. Hayes was sentenced to 27 years imprisonment;
Mario Rodriguez, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy, one count of Possession of a Controlled Substance with Intent to Distribute, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Rodriguez was sentenced to 21 years imprisonment;
Michael Walker, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Walker was sentenced to 19 years imprisonment;
Reginald Graham, of Miami, was convicted at trial of one count of Racketeering Conspiracy, Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Graham was sentenced to 19 years imprisonment;
Daniel Jones, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy. Jones was sentenced to 19 years imprisonment;
Levi Bryant, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy and one count of Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to 16 years imprisonment; and
Torivis Reginald Ingram, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy and one count of Possession of a Controlled Substance with Intent to Distribute. Ingram was sentenced to 14 years imprisonment.
The other four defendants, of Miami, pled guilty prior to trial and were sentenced for periods of sixty months to 15 years imprisonment.
During the trial, evidence, that included civilian and law enforcement witness testimony, presented proved how the charged racketeering enterprise, which used names such as the Dub Side Blood Family (DSBF), for over 17 years conducted its unlawful business practices and controlled the South Gwen Cherry Housing Complex in the Allapattah neighborhood of Miami. Witness testimony established how the DSBF members routinely robbed victims at gunpoint and sold narcotics. The enterprise’s criminal spree included five commercial businesses, including MetroPCS locations, a Food Plus store, and the armed robberies of drug dealers.
The evidence at trial showed that the DSBF became so emboldened that it told a future homicide victim’s own mother that her son would be killed. The DBSF followed through on that promise with his subsequent murder. Trial evidence also established that members of the group celebrated after another victim’s murder by posting images of the deceased’s body in a casket. Trial evidence included jailhouse phone calls and private messages, which captured DSBF members discussing the operation of their organization and proposed responses to circumvent law enforcement’s investigation into the criminal enterprise. Trial evidence from the defendants’ social media and cellular phone records demonstrated the group’s ability to continue criminal activity despite periods of time when its members were incarcerated.
U.S. Attorney Fajardo Orshan commended the collaborative investigative efforts of ATF, FBI, DEA, MPD, MDPD, and MDCR, including the following key participants: MPD’s Narcotics Unit, Gun Squad, Gang Intelligence Detail, Homicide Unit, and Robbery Unit; MDPD’s Robbery Bureau, Narcotics Bureau, Homicide Bureau, and Street Violence Task Force. Ms. Fajardo Orshan also thanked the U.S. Marshals Service, U.S. Customs and Border Protection, Homestead Police Department, Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit, and the South Florida High Intensity Drug Trafficking Task Force to include the High Intensity Drug Trafficking Area-Miami-Dade State Attorney’s Gang Strike Force for their support in the investigation.
Through the collaborative VRP, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The sentences announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF), Operation Northern Light. The Northern Light Task Force is a federal multi-agency, multi-jurisdictional task force that was formed to combat organized violent crime in Northern Miami-Dade County. To date the Northern Light Task Force has secured the conviction of 27 defendants involved in complex violent crimes involving homicide, attempted murder, serial robbery, firearms offenses, drug trafficking, and other crimes. The principal mission of the Northern Light Task Force is to identify, disrupt, and dismantle the most serious organized violent criminal conspiracies operating in Miami-Dade County, Florida.
This case was prosecuted by Assistant U.S. Attorneys Ignacio J. Vázquez, Jr. and Ilham A. Hosseini.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Member of Carjacking Conspiracy Pleads GuiltyRead the Press Release
DAYTON – Carlos Raymond Alvarez, aka “Rico Finessegod”, 25, of Dayton, pleaded guilty in U.S. District Court to conspiracy to commit carjacking and gun charges for his role in a scheme that lured a victim through a dating app and stole his car when he showed up for his expected date.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Montgomery County Sheriff Rob Streck, and Colonel Richard S. Fambro of the Ohio State Highway Patrol announced the plea entered yesterday before U.S. District Judge Thomas M. Rose.
A federal grand jury indicted Alvarez along with co-defendants A. Philip Thomas Christian Daugherty, 23, of Dayton, Zy’Lique Anaise Murphy, 19 and Zhaire Simone Chardae Evans, 19, both of Columbus, in November 2018. According to court documents, Evans posted messages on internet dating sites soliciting men to meet her for a date. One of the meetings was set for July 6, 2018 in Harrison Township. When the victim arrived, Alvarez and Daugherty pretended to be jilted boyfriends of Evans and Murphy, beat the victim, stole his keys and his car and drove the car to Columbus. Alvarez fired a handgun he was carrying near the victim as a way to intimidate him.
Alvarez pleaded guilty to one count of conspiracy to commit carjacking, punishable by up to five years in prison and one count of using a firearm during a crime of violence, punishable by a mandatory minimum of ten years and up to life in prison. Judge Rose scheduled a sentencing hearing for Alvarez for July 24. Charges against the other three defendants remain pending.
U.S. Attorney Glassman commended the cooperative investigation by ATF, the Sheriff’s Office and the Ohio Highway Patrol, as well as Assistant United States Attorney Dwight Keller who is representing the United States in the case.
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Maximum sentence removes violent felon from historic Savannah neighborhoodRead the Press Release
SAVANNAH, Ga: A Savannah man has received the maximum federal prison sentence after his conviction for possession of a firearm by a convicted felon.
Calvin James, 32, was sentenced to 10 years in prison by U.S. District Court Judge William T. Moore, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. James, who was convicted after a jury trial in January, also was sentenced to serve three years of supervised release after completion of his sentence, and there is no parole in the federal system.
James’ arrest occurred in March 2018 in Savannah’s Cuyler-Brownsville neighborhood, an area that has received extensive focus from the Savannah Police Department’s Strategic Investigations Unit (SIU) and the U.S. Attorney’s Office through the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). The case also was investigated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives.
James was arrested by members of SIU after he fled on foot and discarded a stolen firearm and several bags of marijuana.
“James’ sentence represents another violent felon removed from the Cuyler-Brownsville neighborhood,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “With our law enforcement partners, we will not stop until every violent criminal is removed from every one of our communities.”
“This inter-agency collaboration and the resulting arrest goes a long way toward addressing gun violence by removing from our streets firearms and those willing to obtain them illegally and potentially use them,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF.
The case was investigated by the Savannah Police Department’s Special Investigative Unit (SIU) and the ATF. The case was prosecuted for the United States by Assistant United States Attorneys Jennifer Kirkland and Joshua Bearden.
Massachusetts Man Pleads Guilty to Multiple Counts of Child Pornography OffensesRead the Press Release
A Massachusetts man pleaded guilty today to distribution, receipt and possession of child pornography charges.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office made the announcement.
Bruce Singer, 72, of Southampton, Massachusetts was charged with five counts of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. Singer was indicted in March 2017. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 19, 2019.
According to admissions made in connection with his plea agreement, on various occasions between April 30, 2013 and June 25, 2015, Singer sent and received child pornography by text and email. Singer engaged in the exchange of child pornography with two other people, including James Smith, a man who was convicted in 2017 in District Court in Springfield, Massachusetts for distributing, transporting, receiving and possessing child pornography. At the time police searched his home in 2015, Singer possessed hundreds of images of child pornography on various electronic devices, including images of several known child victims.
This case was investigated by the FBI, Northampton Police Department, Easthampton Police Department and Massachusetts State Police. Trial Attorney Leslie Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alex J. Grant of the District of Massachusetts are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Marysville Woman Guilty of Distribution of A Controlled Substance and False Statements in Health Care MattersRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Belinda Dietrich, age 62, of Marysville, Pennsylvania, pleaded guilty on April 15, 2019, before U.S. District Court Judge Sylvia H. Rambo to one count of unlawful distribution of a controlled substance and one count of false statements in health care matters.
According to United States Attorney David J. Freed, Dietrich, a former receptionist for a solo dental practitioner in Harrisburg, admitted to forging the signature of her employer on a blank prescription form on February 13, 2017, for oxycodone pills for her mother, a Medicare beneficiary, who was not a patient of the dentist. Dietrich then had the prescription filled at a Harrisburg area pharmacy and received 24 oxycodone pills, who then converted the drugs to her own use. The pharmacy billed the cost of the oxycodone pills to Medicare, which paid the claim.
The guilty plea proceeding revealed that Dietrich’s forgeries were not limited to just one prescription. The government informed the court that between February 17, 2016 and August 2017, Dietrich forged 164 prescriptions for oxycodone and hydrocodone for herself, her family and her friends, who then filled the prescriptions at local pharmacies and shared the controlled substances among themselves. All together, more than 5,022 oxycodone and hydrocodone pill were obtained in this manner.
Judge Rambo ordered a presentence report to be prepared pending sentencing, which will be scheduled at a later date.
The case was investigated by the Harrisburg Offices of the Drug Enforcement Administration, Diversion Division and the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for distribution of a controlled substance is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $1 million fine. The maximum penalty for false statements in health care matters is five years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Man Pleads Guilty to Participating in a Drug Trafficking Conspiracy and Possessing a FirearmRead the Press Release
WASHINGTON –Brian Jenkins, 44, of Brentwood, Md., pled guilty today to trafficking in crack and powder cocaine as part of a nearly year-long narcotics conspiracy in Washington, D.C. and Maryland, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Jenkins pled guilty before the Honorable Richard J. Leon in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and a detectable amount of cocaine. The charge requires a mandatory minimum sentence of five years of incarceration and up to 40 years imprisonment. Judge Leon scheduled Jenkins’ sentencing for July 18, 2019.
As part of his plea agreement, Jenkins accepted responsibility for a firearm possessed in his Maryland residence at the time that he was arrested.
Jenkins was arrested on the morning of March 15, 2018 and his residence was searched pursuant to a warrant. At Jenkins’ residence, the FBI recovered cocaine, $12,900 in U.S. currency, a loaded handgun with multiple magazines, and a crack cocaine manufacturing kit to include two digital scales, a strainer, baking soda, and a Pyrex dish.
Four others have pled guilty to charges in the case. They include Everette Reel, 46, of Upper Marlboro, Md; Jamal Curtis, 41, of Washington, D.C., Derek Holmes, 54, of Washington, D.C., and Russell Harrison, 40, of Temple Hills, Md. Reel, Curtis, and Holmes are now serving sentences and Harrison is to be sentenced on May 1, 2019. Harrison faces a mandatory minimum sentence of five years of incarceration and up to life imprisonment for his possession of multiple firearms in furtherance of his drug trafficking as part of the conspiracy.
The case remains pending against another defendant, Darnell Catlett, 46, of Upper Marlboro, Md.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
In announcing the pleas, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case. They cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Candace Battle and Teesha Tobias, Legal Assistant Emma Atlas, and Assistant U.S. Attorneys Christopher Macchiaroli and Kevin Rosenberg of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and prosecuted the defendants.
Manufacturing Company Owner Pleads Guilty to Crimes Involving Defense Department ContractsRead the Press Release
COLUMBUS, Ohio – Daniel Emerson Norton, 51, of Arlington, Virginia and owner of Torrance, California-based Emerson Company, pleaded guilty in U.S. District Court to conspiracy to commit wire fraud, concealment money laundering and tampering with documents or proceedings in connection with illegally obtaining approximately $2,229,142.40 in Defense Department contracts and providing defective parts made in China instead of U.S.-made critical application items used by the U.S. military.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Leigh-Alistair Barzey, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Services (DCIS), Central Field Office, and William Cheung, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation announced the plea entered yesterday before U.S. District Judge Michael H. Watson.
A trial against Norton began April 8th. He interrupted the trial to enter the pleas of guilty.
“Contractors who provide defective and nonconforming parts place the reliability of U.S. military equipment in jeopardy,” U.S. Attorney Glassman said. “That in turn puts our men and women in uniform in danger. That’s why I think it’s crucial that contractors like Norton and Emerson Company are held accountable for their crimes.”
According to court documents and testimony at trial, the Department of Defense (DOD) barred Emerson Company from doing business with the U.S. Government in 2011. Norton then continued to recruit people who either already had companies or were willing to start companies to do his bidding on solicitations and contract with the military to provide parts for the U.S. military between 2011 and 2013. When one of the companies was awarded a purchase order, Norton directed them to send it to Emerson Company which would buy and ship the part directly to DoD.
Norton bought the parts from manufacturers in China, even though a large number of them were required to be made in the United States. The parts Norton provided had dimensional defects, material substitutions, incorrect or missing markings, incorrect finishes, improper shapes or styles, mislabeled packaging or poor workmanship and thus failed to conform to the contract requirements. Additionally there were contracts that called for an exact part from a specific domestic manufacturer. Rather than obtaining these parts from the specified manufacturer, Norton supplied parts obtained from China. The parts involved a variety of parts utilized on military weapon systems to include aircraft, vessels, vehicles, and nuclear reactor programs.
Once Norton realized he was under investigation in 2013 by both the Defense Logistics Agency (DLA), an agency of the Defense Department, DCIS and the U.S. Attorney’s Office, he took several steps to mislead the government in its investigations. For example, in an effort to avoid an extension of debarment for providing a non-conforming bolt used on a C-130 aircraft engine, Norton submitted false documents to the DLA deflecting blame from Emerson Company as the manufacturer. Norton knew, however, that he had ordered the bolts from a manufacturer in China and they did not conform to the contract requirements. Norton also admitted to falsely communicating information to his attorney, or allowing such information to be communicated, with the intent that it be communicated to the United States as it related to its grand jury investigation, thereby obstructing that investigation.
Norton faces up to ten years in prison for his crimes. He also agreed to make restitution of more than $2 million and to forfeit his $800,000 home in Hawaii and more than $300,000 in proceeds in a bank account. Judge Watson will schedule a date for sentencing.
“IRS criminal investigation followed the flow of money in this case in order to uncover the fraud committed against American taxpayers,” Acting SAC Cheung said. “We are proud to work with our law enforcement and military partners to investigate financial transactions that impact our country and our military.”
U.S. Attorney Glassman commended the investigation of this case by DCIS and the IRS, Assistant United States Attorneys Jessica W. Knight and J. Michael Marous, who prosecuted the case, and Special Assistant U.S. Attorney Christopher St. Pierre.
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Man Sentenced to 58 Months for Darknet Credit Card SchemeRead the Press Release
A Lewisville man who stole more than a thousand credit and debit card numbers was sentenced today to 58 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Odis Edwards, 40, pleaded guilty to conspiracy to commit access device fraud in January.
In plea papers, Mr. Edwards admits he stole more than 1,200 credit and debit card numbers via the darknet and internet chat rooms. He and his co-conspirators used counterfeit cards to book more than $250,000 in rooms and incidentals at hotels around Dallas.
An agent testified in Court on Monday that Mr. Edwards sub-rented the rooms to drug dealers and pimps at a fraction of their true cost.
Hotel personnel became suspicious when multiple people racked up hefty room service bills, all charged to Mr. Edward’s account. Inside the rooms, law enforcement officers found altered credit cards as well as notebooks containing what appeared to be credit card numbers and URLs for digital credit card number generators.
“More and more, we’re seeing perpetrators attempt to cloak themselves in the seeming anonymity of the darknet. But they should know that we prioritize the investigation of illicit activity on the darknet and will vigorously prosecute this unlawful behavior ,” said U.S. Attorney Nealy Cox. “In this case, I applaud the hard work of our Secret Service and police partners, as well as the hotel workers who reached out to law enforcement when they felt something was amiss.”
“The Dallas Field Office and the entire Secret Service is dedicated to the investigation of financial crime,” said William Noonan, Special Agent in Charge of the Secret Service’s Dallas Field Office. “This investigation is a testament to the Secret Service’s commitment to working with our partners on accomplishing our dual mission.”
The U.S. Secret Service conducted the investigation with the assistance of the Colleyville Police Department. Assistant U.S. Attorneys Ryan Raybould and Damien Diggs prosecuted the case.
Man Sentenced for Straw Purchasing Firearms for Convicted FelonRead the Press Release
RICHMOND, Va. – A Chesterfield County man was sentenced today to two and a half years in prison for making false statements when he purchased firearms for a convicted felon.
“Straw purchasers are often literally arming criminals,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This poses a serious threat to public safety and the safety of our law enforcement partners. Simply put, convicted felons have forfeited their Second Amendment right to bear arms, and those who choose to straw purchase firearms for prohibited individuals will be investigated, prosecuted, and may themselves become convicted felons and therefore unable to possess or purchase firearms for themselves or others. We will continue to aggressively pursue these cases, seek to obtain felony convictions, and work with local federally licensed firearms dealers and our partners at the ATF to stop the flow of illegally purchased firearms from hitting the street.”
According to court documents, Jeremy Durand Lewis, 35, purchased seven guns for Abdul Shahid Davis, a convicted felon, at federally licensed firearms dealers in Virginia between July and November 2015. When purchasing these firearms, Lewis falsely stated on forms that he was the actual purchaser of the firearms, when, in fact, he was purchasing them for Davis. Davis then sold those guns to an undercover New York City Police Detective.
“This investigation demonstrates how firearms make it into the hands of convicted felons and onto our streets. Anyone engaged in firearms trafficking should be on notice,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “As shown in this case, ATF works with law enforcement partners throughout the nation to keep firearms out of the hands of those who should not have them. If you lie when you buy a firearm, you will be held accountable. ATF is committed to keeping all of our communities safe and will continue to follow these investigations wherever they lead us.”
Six other defendants have received felony convictions and have been sentenced for making false statements in connection with this scheme:
Name, Age
Hometown
Felony Conviction
Sentence
Cherie Elanda Wyatt, 41
Richmond
False Statement to Acquire Firearm
1 year of probation
Kevin Edward Wilson, 29
Powhatan
False Statement to Acquire Firearm
2 years of probation, 180 days of home detention
Denise Michelle Sinkford, 41
Richmond
False Statement to Acquire Firearm
2 years of probation, 180 days of home detention
Shanta Teisha Brown, 29
Richmond
False Statement to Acquire Firearm
2 years of probation, 60 days of home detention
Evelyn Jean Collins-Chandler, 54
Richmond
Conspiracy to Make False Statements to Acquire Firearm
2 years of probation, 60 days of home detention
Ebony Danielle Clarke, 34
Richmond
False Statement to Acquire Firearm
3 years of probation, 210 days of home detention
Three other defendants have pleaded guilty to making false statements on firearm forms and are awaiting sentencing:
Name, Age
Hometown
Convictions
Sentencing Date
Brandon Andrea Powell, 40
Chester
False Statement to Acquire Firearm
May 31
Jeffrey Quinton Toole, 56
Richmond
False Statement to Acquire Firearm
July 15
Yolanda Lisa Stone, 47
Richmond
False Statement to Acquire Firearm
July 29
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge M. Hannah Lauck imposed sentence. Assistant U.S. Attorneys Michael C. Moore and Kenneth Simon are prosecuting the cases.
Special assistance in this investigation and prosecution was provided by the New York Police Department and the New York County District Attorney’s Office.
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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:18-37, 56, 77, 86, 110, 120, 138, 154, and 3:19-cr-13.
Madera Pharmacist Arrested on Drug Trafficking ChargesRead the Press Release
FRESNO, Calif. — A Madera pharmacist and two others were arrested today in connection with a conspiracy to distribute oxycodone and hydrocodone, U.S. Attorney McGregor W. Scott announced.
On April 11, a federal grand jury returned a 42-count indictment, charging Ifeanyi Vincent Ntukogu, 44, of Fresno, a pharmacist, with one count of conspiracy to distribute and possess with intent to distribute controlled substances and 17 counts of distribution of controlled substances. Kelo White, 38, of Fresno, was charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances and 12 counts of possession with intent to distribute controlled substances. Donald Ray Pierre, 50, of Fresno, was charged with one count of conspiracy to distribute controlled substances, 10 counts of possession with intent to distribute controlled substances, and two counts of identity theft.
According to court documents, Ntukogu owned and operated New Life Pharmacy in Madera. Between December 2014 and November 2018, Ntukogu filled fraudulent prescriptions for oxycodone and hydrocodone, Schedule II controlled substances, then dispensed the controlled substances to White and Pierre.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the California Department of Health Care Services. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Ntukogu was arrested at the New Life Pharmacy in Madera and White and Pierre were arrested at their homes in Fresno.
If convicted, Ntukogu, White and Pierre each face a maximum statutory penalty of 20 years in prison and a $1 million fine in connection with the drug charges. Additionally, Pierre faces a maximum statutory penalty of 20 years in prison and a $250,000 fine in connection with the identity theft charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Loudon Man Sentenced to 120 Months for Participating in Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD - Michael Bean, 33, of Loudon, was sentenced to 120 months in prison for conspiring with others to distribute methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Bean and his girlfriend, Katie-Jo Waters, were members of a conspiracy in which supplier Edward Espejo, of Las Vegas, Nevada, shipped packages of nearly pure methamphetamine to New Hampshire. Bean and Waters received packages containing methamphetamine in Pembroke and distributed the drugs to New Hampshire buyers. Bean and Waters would then wire the proceeds of drugs sales to Espejo in Las Vegas to purchase additional drugs. Between January and May 2018, Bean and Waters wired a total of more than $28,000 to Espejo in Las Vegas to buy methamphetamine. On May 2, 2018, postal inspectors intercepted a package containing a pound of pure methamphetamine that Espejo was sending to Waters.
Bean previously pleaded guilty on September 27, 2018.
Waters and Espejo previously pleaded guilty. Waters was sentenced on Tuesday to serve 72 months in prison. Espejo is awaiting sentencing.
“Highly pure methamphetamine has been appearing with greater frequency in New Hampshire,” said U.S. Attorney Murray. “This dangerous drug presents a serious and growing threat to public health and safety. In order to deter drug traffickers, the law enforcement community will act aggressively to identify, prosecute, and incarcerate those who attempt to distribute methamphetamine in the Granite State.”
“Today’s sentencing is a result of a coordinated effort with our federal law enforcement partners to keep these highly addictive drugs out of our communities,” said U.S. Postal Inspection Service’s Inspector in Charge, Joseph W. Cronin of the Boston Division. “The U.S. Postal Inspection Service continuously works to rid the mail of illicit drug trafficking and the associated violence, preserve the integrity of the mail, and, most importantly, provide a safe environment for postal employees and the American public.”
“This sentence reflects DEA’s strong commitment to bring to justice those that distribute methamphetamine,” said Special Agent in Charge Brian D. Boyle. “DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the DEA and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Long Island Bloods Gang Leader Sentenced to 20 Years in Prison for Narcotics Distribution and Multiple ShootingsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Michael Smith, also known as “Bum Jew,” a high-ranking member of the Nine Trey Bloods street gang, was sentenced by United States District Judge Joseph F. Bianco to 20 years’ imprisonment for conspiracy to distribute crack cocaine, his participation in two shootings and possessing a firearm. Smith had previously pleaded guilty on November 9, 2015.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“With today’s sentence, Smith has been held accountable for his ruthless conduct and for profiting from the human misery he perpetuated in Suffolk County by supplying crack to other Bloods gang members for re-sale as well as directly to addicts himself,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will continue to work tirelessly to dismantle violent street gangs in our communities.” Mr. Donoghue expressed his gratitude to the FBI’s Long Island Gang Task Force for their outstanding work on the case.
“Michael Smith plagued Suffolk County with his distribution of this deadly drug to fellow dealers, gang members, and addicts,” stated FBI Assistant Director-in-Charge Sweeney. “As if drug dealing wasn’t enough of a threat to the community, Smith then compounded this with his violent activity; involving himself in multiple shootings. Today’s sentencing not only brings Smith to justice, but also helps keep our community safe.”
According to court filings and statements made during the guilty plea, between January 2008 and January 2014, Smith utilized his leadership position within the Bloods to purchase, process and distribute kilograms of cocaine base in Suffolk County. Smith sold narcotics to distribution-level drug dealers, some of whom were other Bloods gang members, and directly to drug users. When distributing narcotics, Smith was typically armed with a gun.
On November 24, 2011, Smith engaged in a verbal dispute with one of his drug suppliers in front of a bar in Patchogue. During the dispute, Smith shot the supplier in the chest. On June 16, 2013, Smith and several fellow Bloods members drove to a home in Central Islip, where they confronted another Bloods member about his role in a prior shooting. During the confrontation, Smith displayed a firearm and pointed it at the intended victim. When a bystander restrained Smith, pointing out that there were many women and children present, Smith ordered a Bloods member to shoot the other Bloods member. Both shooting victims survived their wounds.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Mark E. Misorek are in charge of the prosecution.
The Defendant
MICHAEL SMITH (also known as “Bum Jew”)
Age: 33
Residence: Mastic, New YorkE.D.N.Y. Docket No. 14-CR-485 (S-3) (JFB)
Las Vegas Man Sentenced to 35 Years in Prison for Two Violent Takeover Robberies and Assault on A Federal OfficerRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man, Brian Wright, who was convicted for his role in planning and participating in the armed robbery of two jewelry stores while he was on federal supervised release for a conviction related to unlawful possession of a firearm, was sentenced Monday to 328 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada. In a separate case, Wright was previously sentenced to 92 months in prison after a jury convicted him of Assault on a Federal Officer. The Court ordered the 328-month sentence in this case to run consecutive to his sentence in the assault case for a total sentence of 35 years in federal prison.
Brian Wright, 34, was convicted of two counts of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and two counts of brandishing a firearm during and in relation to a crime of violence. In addition to the incarceration, U.S. District Judge Jennifer A. Dorsey sentenced him to three years of supervised release concurrent on each count. Wright has been previously convicted in Nevada of robbery with a deadly weapon, conspiracy to commit robbery, and felon in possession of a firearm, and he has multiple parole and supervised release violations.
“Every time law enforcement takes a gun out of the hands of a violent criminal we are potentially saving lives,” said U.S. Attorney Trutanich. “This significant sentence is the result of our continued efforts to keep the community safe from dangerous repeat offenders by working together with our local and federal law enforcement partners.”
During the six-day trial, the government proved that Wright planned and recruited two gunmen and several getaway drivers to rob a jewelry store located at N. Rainbow Blvd in northwest Las Vegas in January, 2017. On January 3, 2017, the two gunmen, co-conspirators Deandre Nakita Brown and Aquail Harris, entered the jewelry store pointing their firearms at employees and customers, including two young children, forcing them to their knees. Harris physically removed the security guard’s firearm and the robbers took the firearm along with the stolen jewelry. The two gunmen delivered the stolen jewelry and watches valued at over $850,000 to the getaway vehicle driven by two additional co-conspirators, Kendareen Hudson and Safiyyah Christopher. Wright, using a police radio scanner app on his phone, relayed information to his co-conspirators to avoid apprehension. However, shortly following the robbery Las Vegas Metropolitan Police Department officers found and arrested Hudson and Christopher and recovered the stolen merchandise.
Ten days later, Wright recruited co-conspirators Carl Whitley and Deandre Brown to help him rob a jewelry store located at W. Charleston Blvd in Boca Park. Wright provided a gun to Brown to use in the robbery. On January 13, Brown entered the jewelry store pointing a gun at employees and directing them to fill garbage bags with jewelry and watches. Approximately $765,000 worth of jewelry was taken. Brown fled in a getaway vehicle driven by co-conspirator Randy Jerousek. Brown ultimately abandoned the vehicle and the jewelry in the backseat when the it became clear that police were searching for the getaway vehicle. This vehicle driven by co-conspirator Randy Jerousek was quickly located at a casino with the stolen merchandise in it. The co-conspirators were arrested soon thereafter.
Brown, Harris, and Wright met and planned the robberies while each of them were serving on federal supervised release.
Co-defendants Harris, Christopher, Hudson, Jerousek, Whitley, and Brown all pleaded guilty for their involvement in the armed robberies.
The case was investigated by the FBI Safe Streets Task Force and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Alexandra Michael, Nadia Ahmed, and Lisa Cartier Giroux prosecuted the case.
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Laredo Man Sentenced for Multi-Year Drug ConspiracyRead the Press Release
LAREDO, Texas – A 60-year-old resident of Laredo has been ordered to federal prison for his involvement in a multi-year conspiracy involving numerous types of narcotics, announced U.S. Attorney Ryan Patrick. Daniel Martin Huerta pleaded guilty Aug. 22, 2018.
Today, U.S. District Judge Keith P. Ellison sentenced Huerta to 120 months of imprisonment to be immediately followed by a five-year-term of supervised release. At the hearing, he was held accountable for being the leader and organizer of five or more persons during the course of the drug trafficking conspiracy.
Between May 1, 2012, and April 24, 2018, Huerta conspired with persons in his drug trafficking organization to possess with the intent to distribute large amounts of cocaine, methamphetamine, heroin and marijuana. Huerta and his co-conspirators were responsible for importing the controlled substances from Mexico and sending them to Dallas and other cities throughout the United States.
Huerta also laundered money in U.S. bank accounts and smuggled U.S. currency derived from drug proceeds into Mexico. Notably, on April 27, 2013, Huerta directed co-conspirators to smuggle $238,335 in bulk cash into Mexico. Law enforcement seized this load prior to the money exiting the U.S.
On Nov. 24, 2014, local authorities seized 24 kilograms of cocaine in four car batteries after a traffic stop of a flatbed trailer which belonged to Huerta.
Huerta has been in custody since his arrest on May 4, 2018. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force investigation with the assistance of Border Patrol. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.
Kayenta Man Sentenced to Federal Prison for Assault with a Dangerous WeaponRead the Press Release
PHOENIX – On April 15, 2019, Kelsey Dale Benally, 27, of Kayenta, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 63 months in prison, to be followed by three years of supervised release. Benally had previously pleaded guilty to assault with a dangerous weapon. Benally was also sentenced to five months in prison for violating a term of supervised release imposed for a prior criminal conviction in 2017. These sentences were ordered to run consecutively.
On Oct. 31, 2015, Benally stabbed the victim multiple times with a knife, causing the victim to sustain serious bodily injuries. After seriously injuring the victim, Benally also stole a truck the victim had been driving. Officers from the Navajo Nation Police Department apprehended Benally shortly after the assault. The assault happened on the Navajo Indian Reservation. Both Benally and the victim are members of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08019-PCT-JJT
RELEASE NUMBER: 2019-053_Benally
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Justice Department Settles Claims Against Farmersville,Texas, Involving Denial of Islamic CemeteryRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Eastern District of Texas today announced an agreement with the City of Farmersville, Texas, to resolve allegations that the City violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when, in July 2017, it denied an application by the Islamic Association of Collin County (Islamic Association) to build a cemetery.
“Federal law protects the rights of all religious communities to buy or rent land for religious purposes including places of worship, religious schools, charitable activities, and cemeteries without discrimination or the imposition of unwarranted burdens,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to vigorously enforce this important right.”
“There is no place in our community for religious discrimination,” said U.S. Attorney Joseph D. Brown. “Our office is committed to protecting religious freedom.”
The settlement agreement resolves a lawsuit the United States filed today in the U.S. District Court for the Eastern District of Texas. After the City denied the Islamic Association’s application to build a religious cemetery, the United States opened an investigation of the City’s actions in September 2017. In August 2018, the United States notified the City that it had concluded that the City had violated RLUIPA and intended to file suit, and offered the City an opportunity to negotiate a resolution. In September 2018, the City and the Islamic Association entered into a separate agreement allowing for the approval of the cemetery and in December 2018, the City approved the Islamic Association’s application to develop the land as a cemetery.
The United States’ complaint alleges that the City’s denial of the Islamic Association’s application to develop the property as a cemetery imposed a substantial burden on the Islamic Association’s religious exercise and discriminated against the Islamic Association on the basis of religion. The City denies the allegations. As part of the agreement, the City has agreed to provide training to its officials and employees about their obligations under RLUIPA and to notify the public about the City’s compliance with RLUIPA in its zoning and land use actions.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Johnstown Woman Pleads Guilty to Heroin PossessionRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Alissa N. Mosley, 30, pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 27, 2017, Mosley and a co-defendant did possess with intent to distribute more than 100 grams of heroin.
Judge Gibson scheduled sentencing for August 19, 2019, at 10:00 a.m. The law provides for a maximum sentence for Mosley of 40 years in prison and a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Mosley.