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Tuesday 9 April 2019
Laplace Woman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
NEW ORLEANS, LOUISIANA – SANDRA RAVEN, age 53, a resident of Laplace, Louisiana, pled guilty Thursday, April 4, 2019 to one count of wire fraud before the Honorable Barry W. Ashe. Sentencing is scheduled for July 11, 2019 at 1:30 p.m.
According to Court documents, RAVEN owned and operated S & R Tax Service out of her home in LaPlace, Louisiana. Beginning in 2012, RAVEN filed fraudulent tax returns with the IRS in the names of others. The tax returns claimed false wages, and RAVEN directed the tax refunds and tax preparation fees to her custody and control.
RAVEN faces a maximum term of imprisonment of 20 years, a maximum period of (3) three years supervised release and a $250,000 fine.
U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case. The case is being prosecuted by Assistant U. S. Attorney G. Dall Kammer, Supervisor, General Crimes.
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Knoxville Resident Sentenced to 10 Years in Federal Prison for Enticement of a Minor for Illegal Sexual ActivityRead the Press Release
KNOXVILLE, Tenn. – On April 9, 2019, James Michael Hood, 55, of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, U.S. District Court Judge, to serve 10 years and one month in federal prison. Upon his release from prison, Hood will be supervised by the U.S. Probation office for life.
After a jury trial in September 2018, Hood was convicted of enticement of a minor for illegal sexual activity. According to evidence revealed during the trial, in June 2017, Hood attempted to communicate with the 17-year-old female victim by friending her on Facebook. The victim blocked him after less than a day of him sending her inappropriate messages. The victim and her mother reported the inappropriate messages to law enforcement, who initiated an undercover operation posing as the young girl. Hood was provided with a phone number to use if he wanted to text the victim. Believing he was communicating with the young girl, within two minutes of receiving the number, he began texting her. Within 48 hours, he was sending her explicit sexual messages. Hood set up a meeting with the victim; however, instead of being met by the victim, he was met by law enforcement and arrested.
Agencies involved in this investigation included Knoxville Police Department Internet Crimes against Children Task Force, in partnership with the Department of Homeland Security. Jennifer Kolman, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood (PSC), 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 the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.projectsafechildhood.gov.
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KC Man Pleads Guilty to Armed Robbery of Pizza Hut, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to illegally possessing the firearm he used in the armed robbery of a Pizza Hut.
Teandre L. Wilson, 39, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of armed robbery and one count of being a felon in possession of a firearm.
By pleading guilty today, Wilson admitted he robbed the Pizza Hut at 9515 Blue Ridge Blvd., Kansas City, Mo. Wilson entered the Pizza Hut at about 4:30 p.m. on Aug. 12, 2018. He approached the register, made brief small talk with the cashier, then lifted the right side of his shirt to reveal a firearm tucked in his waistband. “Give me your money,” he told the cashier, “or I’ll pop ya.” The cashier emptied the register and handed the money to Wilson, who fled from the premises.
On Aug. 24, 2018, Kansas City police officers responded to a report of gunshots in the area of 6th Street and Benton Boulevard. The caller told officers he heard shots from his residence, then looked out his window and saw a man later identified as Wilson hiding behind a car. Wilson was found by officers in the parking lot of a 7-Eleven store. Wilson was arrested and officers seized a loaded Springfield Armory .45-caliber pistol from his right waistband.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wilson has three prior felony convictions for possessing a controlled substance, and prior felony convictions for robbery, leaving the scene of an accident and distributing marijuana.
Under federal statutes, Wilson is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department to Honor Crime Victim AdvocatesRead the Press Release
The Justice Department will honor 12 individuals and programs for their exceptional service to victims of crime during the annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on Friday, April 12. The Department will also recognize former U.S. Attorney General Ed Meese for a career of outstanding service on behalf of crime victims.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
Each year in April, the Department of Justice observes National Crime Victims’ Rights Week by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ Offices participate in events to bring awareness to the services available to victims. This year’s observance takes place April 7-13, with the theme, “Honoring Our Past. Creating Hope for the Future.”
“Almost 50 years ago, a grassroots movement rose up to support crime victims and survivors, and that movement has grown into a nationwide effort that reaches victims in every corner of our country,” said Matt M. Dummermuth, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “While the Justice Department is making more funding available than ever before to meet victims’ needs, champions like the ones we honor today are offering victims ‘hope for the future.’”
The following award recipients were selected by the Office for Victims of Crime from nominations received from many sources. Individual press releases are available using the included links.
Allied Professional Award recognizes individuals from a specific discipline outside the victim assistance field for their service to victims and/or contributions to the victim assistance field.
- Recipient: Sgt. Amy Dudewicz, Bernalillo County, New Mexico
- Recipient: Diana Faugno, Rancho Mirage, California
Award for Professional Innovation in Victim Services recognizes a program, organization or individual who has helped to expand the reach of victims’ rights and services.
- Recipient: Richard H. Norcross, III, Keasbey, New Jersey
Crime Victims Financial Restoration Award honors individuals, programs or teams that developed innovative ways of funding services for crime victims or instituted innovative approaches for securing financial restoration for crime victims.
- Recipient: Elder and Dependent Adult Protection Team, San Mateo County, California
Crime Victims’ Rights Award honors the dedicated champions throughout our nation whose efforts to advance or enforce crime victims’ rights have benefited victims of crime at the local, state, tribal or national level.
- Recipient: Susan Howley, Washington, D.C.
National Crime Victim Service Award honors extraordinary individuals and programs that provide services to victims of crime.
- Recipient: Eva Velasquez, San Diego, California
- Recipient: Mark Weiner, Newark, Ohio.
Ronald Wilson Reagan Public Policy Award honors those whose leadership, vision and innovation have led to significant changes in public policy and practice that benefit crime victims.
- Recipient: Hallie Bongar White, Tucson, Arizona
- Recipient: Missey Smith, Overland Park, Kansas
Special Courage Award recognizes a victim or survivor who has exhibited exceptional perseverance or determination in dealing with his or her own victimization.
- Recipient: Shari Kastein, Sioux Center, Iowa
- Recipient: James Shaw, Nashville, Tennessee
Volunteer for Victim Award honors individuals for their extraordinary and selfless efforts resulting in positive and lasting changes in the lives of crime victims.
- Recipient: Laura Abbott, Cabot, Arkansas
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
Anchorage, Alaska – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office, District of Alaska, participated in yesterday’s annual Tree Ceremony hosted by Victims for Justice, to honor those affected by violent crime. The ceremony was held at Hostetler Park in Anchorage at 12:00 p.m. yesterday, where guests were invited to tie colored ribbons, signifying ten types of violent crime onto branches to represent themselves or others who have been impacted by violent crime.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“Along with our law enforcement partners, we work every day to bring justice to Alaskans who are victims of crime,” said U.S. Attorney Bryan Schroder. “This week we are especially reminded of the toll that criminals take on our communities and our neighbors. In addition to prosecuting the offenders, we strive to support victims and make sure their voice is heard.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office, District of Alaska’s Victim Witness Program at 907-271-3041.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
KNOXVILLE, Tenn. – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the U.S. Attorney’s Office for the Eastern District of Tennessee will be participating in several events across the district including:
- A bell ringing ceremony to honor victims of crime, “Honoring Our Past – Creating Hope for the Future,” at Chester Foster Park in Chattanooga on Tuesday, April 9, 2019.
- A Crime Victims’ Right Ceremony at the Cocke County Courthouse on Wednesday, April 10, 2019, sponsored by Fourth Judicial District Attorney General James Dunn.
- A Crime Victims’ Tree Planting Ceremony on Friday, April 12, 2019, at Memorial Park Community Center in Johnson City, Tennessee.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“National Crime Victims’ Rights Week is a time to reflect on the history of the victims’ rights movement, celebrate its progress, and renew commitments to ensure all victims of crime have the rights and services they need to recover and receive the justice they deserve,” said U.S. Attorney J. Douglas Overbey. “The U.S. Attorney’s Office has dedicated victim-witness personnel who serve federal crime victims across the district’s 41 counties. Our prosecutors are also committed to supporting and providing service to victims of all federal crimes, including violent crimes, fraud, identity theft, human trafficking, elder abuse and exploitation, and sexual crimes against children.”
Each year in April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Victim Witness Program at 865-545-4167.
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Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
Spokane -- Joseph H. Harrington, United States Attorney for the Eastern District of Washington, joined the Department of Justice in announcing observance of National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
U.S. Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington is committed to serving and protecting victims of federal crimes. We remain resolute to achieving justice for all victims of federal crimes.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the Eastern District of Washington’s Victim Witness Program at (509) 353-2767.
Justice Department Observes National Crime Victims’ Rights WeekRead the Press Release
HAMMOND – United States Attorney Thomas L. Kirsch would like to announce National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/.
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Justice Department Observes National Crime Victims' WeekRead the Press Release
PROVIDENCE, RI – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the District of Rhode Island will join the Rhode Island Attorney General and Family Service of Rhode Island led observance at the annual Victims’ Grove Ceremony.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“Every day, every night, around the clock, law enforcement, prosecutors, and community partners work together to support victims of crime,” said United States Attorney Aaron L. Weisman. “As Attorney General William P. Barr noted, we are committed to ensuring that crime victims have our support and a voice as we hold those who have harmed them responsible for their actions.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the District of Rhode Island’s Victim Witness Program at (401) 709-5023.
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Justice Department Observes National Crime Victims' Rights Week with Events Throughout the CountryRead the Press Release
United States Attorney Mike Stuart Hosts 19th Annual Operation Reach Out Ceremony
CHARLESTON – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the Southern District of West Virginia hosted the 19th Annual Operation Reach Out Opening Ceremony today at the Robert C. Byrd United States Courthouse in Charleston, West Virginia. Operation Reach Out, a collaborative of local advocacy programs, raises awareness of National Crime Victims’ Rights Week, and educates the community on the various organizations that provide services to crime victims.
Guest speakers included Debbie Casto, a survivor of domestic violence, and her brother, Sergeant Anthony Craigo with the Putnam County Sheriff’s Office. Additionally, advocates, law enforcement and prosecutors across the district received recognition for their coordinated community response to domestic violence, sexual assault and stalking crimes.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
“We are so proud to take part in National Crime Victims’ Rights Week to honor the victims of crime and recognize those who provide services to victims,” said United States Attorney Mike Stuart. “The focus of this year’s ceremony is violence against women, including domestic violence, an insidious crime at every level. We strive every day with a sense of urgency to fight for the victims of crime and against the perpetrators of crime. We should never become so calloused from the pursuit of our daily obligations that we forget the purpose of our work – fighting for and being the voice of the victims of crime.”
“In conjunction with the ceremony, I rolled out Project HOPE (Healing, Officers, Prosecutors, Empowerment), a joint federal and local effort to combat violence against women. Project HOPE crystallizes my absolute commitment to rooting out violence against women in every form.”
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office, SDWV, Victim Witness Program at (304) 345-2200.
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Justice Department Honors Kansas Mother, Crime Victim AdvocateRead the Press Release
KANSAS CITY, KAN. – A Kansas woman who founded the Kelsey Smith Foundation after her daughter was murdered will receive an award from the U.S. Department of Justice for her outstanding service to crime victims, U.S. Attorney Stephen McAllister said today.
Missey Smith of Overland Park, Kan., will receive the Ronald Reagan Public Policy Award honoring leadership, vision and innovation to foster changes in public policy and practice that benefit crime victims.
“Missey Smith and others are building a grassroots movement in America to support and protect victims of crime,” said U.S. Attorney Stephen McAllister. “I want to thank them all.”
On June 2, 2007, Smith’s daughter, Kelsey, was abducted from a department store in Overland Park and murdered.
Smith has lobbied for the Kelsey Smith Act, a proposed federal law that would require phone companies to provide cellphone location information to law enforcement officials in an emergency.
Smith is one of 12 people and programs being honored by the Justice Department at the annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on Friday, April 12.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
Judge sentences three in Helena drug-related home invasionRead the Press Release
HELENA—A federal judge today sentenced a man and two women convicted of robbery and firearms charges stemming from a drug-related home invasion, U.S. Attorney Kurt Alme said.
Gabriel Elijah Kane Arkinson, 32, of Billings, was sentenced to 15 years in prison and five years of supervised release, while Jaime Nicole Milsten, 35, of East Helena, was sentenced to 10 years and five months in prison and five years of supervised release. A jury in October found both defendants guilty of of conspiracy to commit robbery affecting commerce, robbery affecting commerce and brandishing a firearm in furtherance of a crime of violence.
A third defendant, Melissa Dawn Shurtliff, 28, of Helena, was sentenced to seven years and nine months in prison and five years of supervised release. Shurtliff pleaded guilty to robbery affecting commerce and possession of a firearm in furtherance of a crime of violence.
Senior U.S. District Judge Charles C. Lovell presided.
Prosecutors at trial presented evidence that Arkinson and Milsten entered the residence of a Helena drug dealer on April 23, 2017 to steal drugs and drug proceeds. Arkinson was armed with a sawed-off shotgun, and Milsten searched the residence for drugs and money. A small amount of methamphetamine, U.S. currency and a cell phone were stolen. Shurtliff planned the robbery and acted as the getaway driver.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the FBI and Montana Regional Violent Crime Task Force.
The 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.
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Joshual Hilton Sentenced to Federal Prison on Drug Trafficking and Gun ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced JOSHUAL HILTON, age 33, of Baton Rouge, Louisiana, to 384 months in federal prison following his convictions after a three-day jury trial in June 2018 for possession with the intent to distribute methamphetamine, marijuana, and promethazine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking offense. The Court also sentenced HILTON to 10 years of supervised release following his term of imprisonment and ordered that the firearms be forfeited.
Evidence at trial showed that HILTON sold marijuana to an individual at his residence in September 2016, and thereafter the East Baton Rouge Parish Sheriff’s Office obtained a search warrant to search the defendant’s residence. Prior to the search, law enforcement officers placed HILTON’s residence under surveillance. Officers observed HILTON leave his residence in his automobile and proceed to meet with several individuals in the Sherwood Forest area and engage in what appeared to be drug transactions from his vehicle. HILTON was observed returning to his residence and entering his house, only to leave again a short time later. A marked unit attempted to stop HILTON; however, HILTON led officers on a high speed chase, exceeding 100 miles per hour in some places, running stop signs and passing vehicles on the shoulder in an attempt to elude arrest. HILTON was observed throwing items out of his vehicle window, which were later recovered and determined to be three bottles of liquid promethazine. HILTON abandoned his vehicle at a dead end street, but was later apprehended as he fled on foot.
Officers returned to HILTON’s residence and executed the search warrant. During the search, officers located 1,948 grams of methamphetamine, over five pounds of marijuana, 22 bottles of liquid promethazine, a digital scale, $42,877 in drug proceeds, and a loaded Glock 23 .40 caliber pistol and magazine.
U.S. Attorney Fremin stated, “This conviction and sentence should send a loud and clear message that our office will not tolerate unrepentant drug dealers who continue to sell dangerous drugs in our communities. Enforcing our drug laws prevents addiction and violence from spreading and will continue to be a priority in this district. This operation could not have been a success without the efforts of our outstanding prosecution team, the ATF, the East Baton Rouge Sheriff’s Office and the Livingston Parish Sheriff’s Office.”
“The East Baton Rouge Sheriff’s Office is proud of the partnership we have with the U.S. Attorney’s Office and appreciate their commitment to prosecute these cases on the federal level,” Sheriff Sid Gautreaux said. “We look forward to continuing working together to combat the drugs that plague our community.”
This conviction is part of Operation All in the Famm, an extensive federal, state, and local investigation aimed at dismantling a large scale drug trafficking network based in East Baton Rouge Parish, Louisiana. As a result of this operation, three individuals with significant drug trafficking, firearm, and conspiracy charges have been convicted. Terrance Hilton pled guilty on April 2, 2019 to possession with the intent to distribute heroin and possession of a firearm by a convicted felon. Damiene Lewis pled guilty on April 19, 2018 to conspiracy to distribute cocaine, distribution of cocaine, and possession of a firearm in furtherance of a drug trafficking offense. Hilton faces a significant term of imprisonment, a fine, and a period of supervised release.
This operation is being handled by the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, and the Livingston Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Jefferson County Man Pleads Guilty to Filing a False Tax Return Omits More than $300,000 in Business IncomeRead the Press Release
BIRMINGHAM - A Jefferson County man pled guilty today in federal court to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman.
According to court documents, LARRY WAYNE BATTLE owned and operated a tax preparation business in Jefferson County, Alabama. On his 2014 tax return, Battle filed a Schedule C for his tax preparation business that reported gross receipts of $128,000. He understated his gross receipts by approximately $321,638, resulting in a tax loss of $163,401.
“There is zero tolerance for tax preparers who cheat on their own income taxes,” said U.S. Attorney Jay E. Town. “Federal prosecutors in this district will continue to make prosecuting these cases a priority.”
“Return preparers have a duty to be honest and truthful on their tax returns they submit throughout the filing season, including their own,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI for the Atlanta Field Office. “This guilty plea is another success in our efforts of defeating the tax cheat and holding them accountable for their actions.”
Sentencing is scheduled for July 30, 2019. Battle faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank joined the Department of Justice’s observance of National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“The U.S. Attorney’s Office for the District of Maine always has in mind the interests of the victims in its cases,” said U.S. Attorney Frank. “We work to keep victims informed of developments in their cases, to give them an opportunity to be heard, to vindicate their rights, to obtain restitution for them, to ensure that they are treated with dignity and respect, and to bring them some relief from the injustice that they have suffered. In recent months, victims have addressed the court during sentencings in cases of child pornography, bank robbery, and drug distribution resulting in death.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the District of Maine’s Victim Witness Program at (207) 780-3257.
Indivior Inc. Indicted for Fraudulently Marketing Prescription OpioidRead the Press Release
WASHINGTON – A federal grand jury sitting in Abingdon, Virginia, has indicted Indivior Inc. (formerly known as Reckitt Benckiser Pharmaceuticals Inc.) and Indivior PLC (Indivior) for engaging in an illicit nationwide scheme to increase prescriptions of Suboxone Film, an opioid drug used in the treatment of opioid addiction, the Department of Justice announced.
According to the indictment, Indivior obtained billions of dollars in revenue from Suboxone Film prescriptions by deceiving health care providers and health care benefit programs into believing that Suboxone Film was safer, less divertible, and less abusable than other opioid-addiction treatment drugs. Indivior also is alleged to have sought to boost profits by using a “Here to Help” program to connect opioid-addicted patients to doctors the company knew were prescribing opioids at high rates and in a clinically unwarranted manner.
“The deadly opioid epidemic continues to devastate communities and families across our nation,” said Principal Deputy Associate Attorney General Jesse Panuccio of the Department of Justice. “The Department of Justice intends to hold accountable those who are in position to know the harm opioid abuse inflicts, but instead choose to profit illegally from the pain of others. Manufacturers, distributors, pharmacies, and doctors should all be on notice that they must follow the law and act responsibly.”
“Opioid addiction is a national epidemic. The indictment alleges that, rather than marketing its opioid-addiction drug responsibly, Indivior promoted it with a disregard for the truth about its safety and despite known risks of diversion and abuse,” said Assistant Attorney General Jody Hunt. “The Department of Justice is committed to holding opioid manufacturers accountable for such unlawful conduct.”
According to the indictment, Indivior developed Suboxone Film around 2007 as a patent-protected alternative to the tablet form of Suboxone, which was then about to face generic drug competition. The primary ingredient in both Suboxone Film and tablets is buprenorphine, a highly potent opioid. Indivior promoted Suboxone Film as safer and less-divertible than its tablet form, even though the company lacked any scientific evidence to support those claims. In particular, Indivior aggressively marketed Suboxone Film, without an established basis, as having a “lower risk of child exposure” and a “less divertible/abusable formulation.” Indivior made these and other false and misleading claims in marketing materials and through representations to physicians, pharmacists, and health care benefit programs throughout the country. The indictment also alleges that, to further its scheme, Indivior announced a “discontinuance” of its tablet form of Suboxone based on supposed “concerns regarding pediatric exposure to” tablets, when in fact Indivior executives knew the primary reason for the discontinuance was to delay the Food and Drug Administration’s approval of generic tablet forms of the drug.
The indictment further alleges that Indivior used its “Here to Help” internet and telephone program as part of its scheme to induce physicians to write prescriptions for Suboxone Film. Touted as a resource for opioid-addicted patients, Indivior used the program in part to connect patients to doctors it knew were prescribing Suboxone and other opioids to more patients than allowed by federal law, at high doses, and in suspect circumstances. The indictment alleges that Indivior executives and employees knew from statistical and numerous firsthand reports that some doctors in the Here to Help referral system were issuing prescriptions in a careless and clinically unwarranted manner.
Indivior’s scheme, as asserted in the indictment, was highly successful, converting thousands of opioid-addicted patients over to Suboxone Film and causing state Medicaid programs to expand and maintain coverage of Suboxone Film at substantial cost to the government. Until earlier this year, when Suboxone Film became subject to generic competition, Indivior retained a high portion of the opioid-addiction treatment market.
The indictment charges Indivior with conspiracy to commit wire fraud, mail fraud, and health care fraud. In addition, the indictment charges the company with one count of health care fraud, four counts of mail fraud, and twenty-two counts of wire fraud. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
“As this case makes clear, our office will aggressively prosecute health care fraud cases and particularly those that target people struggling with opioid addiction,” First Assistant United States Attorney Daniel P. Bubar of the Western District of Virginia said today. “We are grateful for the tireless investigative work of our partners at FDA, Virginia Medicaid Fraud Control Unit, HHS, and the U.S. Postal Service for taking on these types of important investigations.”
“Our indictment alleges a wide-ranging and truly shameful scheme to put profits over the health and well-being of patients trying to manage substance use disorder and opioid dependence,” said Attorney General Mark R. Herring. “It’s incredibly frustrating that while we have been working to remove the stigma around medication-assisted treatment and make it more widely available, Indivior was allegedly conspiring to exploit patients, taxpayers, and the expansion of MAT. My team and I are proud to have helped lead this investigation, and look forward to helping bring it to a just and fair conclusion.”
“Opioid addiction is a public health emergency and medication-assisted opioid treatment options are an important tool for combatting this crisis. This investigation revealed that Indivior tried to mislead FDA and game the system by attempting to bar competition for Suboxone from the market,” said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. “We will continue to pursue and bring to justice those who participate in these schemes to the detriment of public health.”
The United States Attorney’s Office for the Western District of Virginia and the Department of Justice’s Consumer Protection Branch are prosecuting the case. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Virginia Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services’ Office of the Inspector General, and United States Postal Service Office of Inspector General. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Virginia, visit its website at https://www.justice.gov/usao-wdva.
This prosecution is part of a coordinated effort by the Department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to hold opioid manufacturers accountable for unlawful
Indivior Inc. Indicted for Fraudulently Marketing Prescription OpioidRead the Press Release
A federal grand jury sitting in Abingdon, Virginia, has indicted Indivior Inc. (formerly known as Reckitt Benckiser Pharmaceuticals Inc.) and Indivior PLC (Indivior) for engaging in an illicit nationwide scheme to increase prescriptions of Suboxone Film, an opioid drug used in the treatment of opioid addiction, the Department of Justice announced.
According to the indictment, Indivior obtained billions of dollars in revenue from Suboxone Film prescriptions by deceiving health care providers and health care benefit programs into believing that Suboxone Film was safer, less divertible, and less abusable than other opioid-addiction treatment drugs. Indivior also is alleged to have sought to boost profits by using a “Here to Help” program to connect opioid-addicted patients to doctors the company knew were prescribing opioids at high rates and in a clinically unwarranted manner.
“The deadly opioid epidemic continues to devastate communities and families across our nation,” said Principal Deputy Associate Attorney General Jesse Panuccio of the Department of Justice. “The Department of Justice intends to hold accountable those who are in position to know the harm opioid abuse inflicts, but instead choose to profit illegally from the pain of others. Manufacturers, distributors, pharmacies, and doctors should all be on notice that they must follow the law and act responsibly.”
“Opioid addiction is a national epidemic. The indictment alleges that, rather than marketing its opioid-addiction drug responsibly, Indivior promoted it with a disregard for the truth about its safety and despite known risks of diversion and abuse,” said Assistant Attorney General Jody Hunt. “The Department of Justice is committed to holding opioid manufacturers accountable for such unlawful conduct.”
According to the indictment, Indivior developed Suboxone Film around 2007 as a patent-protected alternative to the tablet form of Suboxone, which was then about to face generic drug competition. The primary ingredient in both Suboxone Film and tablets is buprenorphine, a highly potent opioid. Indivior promoted Suboxone Film as safer and less-divertible than its tablet form, even though the company lacked any scientific evidence to support those claims. In particular, Indivior aggressively marketed Suboxone Film, without an established basis, as having a “lower risk of child exposure” and a “less divertible/abusable formulation.” Indivior made these and other false and misleading claims in marketing materials and through representations to physicians, pharmacists, and health care benefit programs throughout the country. The indictment also alleges that, to further its scheme, Indivior announced a “discontinuance” of its tablet form of Suboxone based on supposed “concerns regarding pediatric exposure to” tablets, when in fact Indivior executives knew the primary reason for the discontinuance was to delay the Food and Drug Administration’s approval of generic tablet forms of the drug.
The indictment further alleges that Indivior used its “Here to Help” internet and telephone program as part of its scheme to induce physicians to write prescriptions for Suboxone Film. Touted as a resource for opioid-addicted patients, Indivior used the program in part to connect patients to doctors it knew were prescribing Suboxone and other opioids to more patients than allowed by federal law, at high doses, and in suspect circumstances. The indictment alleges that Indivior executives and employees knew from statistical and numerous firsthand reports that some doctors in the Here to Help referral system were issuing prescriptions in a careless and clinically unwarranted manner.
Indivior’s scheme, as asserted in the indictment, was highly successful, converting thousands of opioid-addicted patients over to Suboxone Film and causing state Medicaid programs to expand and maintain coverage of Suboxone Film at substantial cost to the government. Until earlier this year, when Suboxone Film became subject to generic competition, Indivior retained a high portion of the opioid-addiction treatment market.
The indictment charges Indivior with conspiracy to commit wire fraud, mail fraud, and health care fraud. In addition, the indictment charges the company with one count of health care fraud, four counts of mail fraud, and twenty-two counts of wire fraud. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
“As this case makes clear, our office will aggressively prosecute health care fraud cases and particularly those that target people struggling with opioid addiction,” First Assistant United States Attorney Daniel P. Bubar of the Western District of Virginia said today. “We are grateful for the tireless investigative work of our partners at FDA, Virginia Medicaid Fraud Control Unit, HHS, and the U.S. Postal Service for taking on these types of important investigations.”
“Our indictment alleges a wide-ranging and truly shameful scheme to put profits over the health and well-being of patients trying to manage substance use disorder and opioid dependence,” said Attorney General Mark R. Herring. “It’s incredibly frustrating that while we have been working to remove the stigma around medication-assisted treatment and make it more widely available, Indivior was allegedly conspiring to exploit patients, taxpayers, and the expansion of MAT. My team and I are proud to have helped lead this investigation, and look forward to helping bring it to a just and fair conclusion.”
“Opioid addiction is a public health emergency and medication-assisted opioid treatment options are an important tool for combatting this crisis. This investigation revealed that Indivior tried to mislead FDA and game the system by attempting to bar competition for Suboxone from the market,” said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. “We will continue to pursue and bring to justice those who participate in these schemes to the detriment of public health.
The United States Attorney’s Office for the Western District of Virginia and the Department of Justice’s Consumer Protection Branch are prosecuting the case. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Virginia Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services’ Office of the Inspector General, and United States Postal Service Office of Inspector General. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Virginia, visit its website at https://www.justice.gov/usao-wdva.
This prosecution is part of a coordinated effort by the Department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to hold opioid manufacturers accountable for unlawful practices and to ensure that prescription opioid products are marketed truthfully.
Illegal Alien Pleads Guilty to Unlawful Reentry by an Alien After RemovalRead the Press Release
Gulfport, Miss. – Marco De La Cruz-Martinez, 22, of Mexico, pled guilty yesterday before U.S. District Judge Sul Ozerden to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
De La Cruz-Martinez will be sentenced by Judge Ozerden, on July 8, 2019. He faces a potential maximum penalty of two years in prison followed by one year of supervised release, and a maximum $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On January 28, 2019, an interdiction agent with the South Mississippi Metro Enforcement Team conducted a traffic stop on a GMC Yukon XL with South Carolina license plates on I-10 eastbound in Jackson County. The agent observed eight occupants of the vehicle, including De La Cruz-Martinez. Border Patrol Agents arrived on the scene shortly thereafter, and interviewed the occupants of the vehicle as to their citizenships, determining that none had proper documents and all were illegally present in the United States. The occupants (2 drivers and 6 passengers) were arrested and transported to the Border Patrol Station in Gulfport.
Further investigation by Homeland Security Investigations and the Border Patrol determined that the 6 passengers were being smuggled within the United States and that De La Cruz-Martinez had previously had been ordered removed from the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security-Homeland Security Investigations, the United States Border Patrol, the Jackson County Sheriff’s Department, South Mississippi Metro Enforcement Team, and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Huntington Man Sentenced for Federal Heroin OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who conspired with others to sell heroin in 2017 and 2018 was sentenced today to 41 months in federal prison, announced United States Attorney Mike Stuart. Bryan Michael Adams, 28, previously pled guilty to aiding and abetting the distribution of heroin in federal court in Huntington. Stuart commended the investigative efforts of the FBI Drug Task Force and the Cabell County Sheriff’s Department.
“Heroin dealer after heroin dealer,” said United States Attorney Mike Stuart. “We’re locking them up. We’re united in in fighting the drug epidemic in Huntington through enforcement, prevention and treatment and we’re making tremendous progress.”
On April 4, 2018, a confidential informant contacted Adams to arrange a purchase of heroin. During the telephone call, Adams agreed to sell heroin to the informant and directed the informant to come to the residence he shared with another person located at 4260 U.S. Route 60, Apartment 7 in Huntington. Shortly after, Adams and the other individual met with the informant inside the residence and the other individual distributed heroin to the informant.
As part of his plea agreement, Adams admitted that, from at least November 2017 to April 2018, he conspired with others to distribute heroin in the Huntington area. Adams also admitted to assisting another heroin deal on April 11, 2018, in Huntington and that he was responsible for the distribution of up to 100 grams of heroin during his participation in the conspiracy.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Guatemalan National Living in Rhode Island Sentenced to 42 Months in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARIO RECINOS, 27, a citizen of Guatemala last residing in Central Falls, R.I., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 42 months of imprisonment, followed by five years of supervised, release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from an investigation that began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January 2016. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that Recinos and others supplied Michael Luciano, of New London, with heroin. Luciano distributed the drug through a network of street-level dealers in southeastern Connecticut.
Recinos has been detained since his arrest on November 14, 2017. On that date, investigators executed 12 federal search warrants and seized more than three kilograms of heroin from members of the conspiracy, including more than one-half kilogram from Recinos.
On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging Recinos, Luciano and 19 other individuals with various heroin trafficking offenses.
On November 9, 2018, Recinos pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
Recinos faces immigration proceedings when he is released from prison.
On June 27, 2018, Luciano pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin. On January 29, 2019, he was sentenced to 12 years of imprisonment.
This matter is being investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Geoffrey M. Stone.
Green Bay Tax Return Preparer Sentenced to 21 Months of Imprisonment for Tax FraudRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on April 1, 2019, Catalina Taboada (age 47), of Green Bay, Wisconsin, was sentenced in federal court to 21 months of imprisonment for willfully preparing false income tax returns in violation of Title 26, United States Code, Section 7206(2). Taboada agreed to pay $571,800 in restitution to the Internal Revenue Service.
In 2009, Taboada started her own tax preparation business in Green Bay, Wisconsin, called Taboada & Associates. According to the plea agreement, Taboada committed fraud at her business in several ways. She fraudulently claimed child tax credits for clients whose children lived exclusively in Mexico. She also claimed child tax credits for clients’ nieces, nephews, cousins or other distant relatives. Taboada additionally claimed dependent exemptions for children who were not residents of the United States, Mexico or Canada. Taboada admitted to understanding the qualifying rules for child tax credits and exemptions, but nevertheless said that she made the fraudulent claims to “stimulate the economy.”
“The honest women and men who pay their hard-earned money in taxes deserve to know that unscrupulous people who cheat on their taxes will be investigated, prosecuted, and incarcerated,” said U.S. Attorney Krueger. “Together with the IRS-Criminal Investigation, the Department of Justice will continue to prosecute tax fraud aggressively.”
Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge said, “This sentencing demonstrates the commitment that IRS Criminal Investigation has in ferreting out fraudulent tax return preparers who play by their own rules and use a variety of methods to cheat the system. It is important for taxpayers to know that fraudulent tax preparers will be brought to justice.”
This case was investigated by IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Keith S. Alexander.
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Georgia Man Pleads Guilty to Check Cashing SchemeRead the Press Release
ALBANY, NEW YORK – Alphonso L. Howard, Jr., age 28, of Decatur, Georgia, pled guilty today to creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Acting Superintendent Keith M. Corlett.
Howard pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft.
Howard admitted that he and co-conspirators defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties.
Howard, who has been in custody since September 26, 2018, will be sentenced on August 12, 2019 by Senior United States District Judge Gary L. Sharpe. He faces at least 2 years and up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Howard has also agreed to forfeit $16,660 in cash he possessed at the time of his arrest, and to entry of a money judgment in the amount of $164,077.70.
This case is being investigated by the FBI and the New York State Police-Troop G, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).
Gary Woman Ordered to Pay $195,622 in RestitutionRead the Press Release
HAMMOND – Charlotte Hunter, 69 years old, of Gary, Indiana, was sentenced, on April 2, 2019, by District Court Judge Philip P. Simon on her plea of guilty to health care fraud, announced U.S. Attorney Kirsch.
Hunter was sentenced to time served followed by 2 years supervised release and ordered to pay $195,622.09 in restitution.
According to court documents, Hunter and her co-defendant billed Indiana Medicaid for services not rendered, inflating mileage for trips from Northwest Indiana to Indianapolis by approximately 100 miles per trip.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General in coordination with the Indiana Medicaid Fraud Control Unit and handled by Assistant United States Attorney Diane L. Berkowitz.
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Four More Defendants Sentenced in Drug Conspiracy that Trafficked Crystal Ice, Oxycodone and Other Drugs into Virginia from GeorgiaRead the Press Release
Abingdon, VIRGINIA – Four members of a drug distribution organization that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia were sentenced recently in federal court on drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring announced.
In a hearing last week, Timothy Terrell Peek, 34, of Union Point, Georgia, was sentenced to 108 months’ incarceration. He previously pleaded guilty to one count of conspiracy to distribute methamphetamine, heroin, oxycodone, cocaine, and alprazolam.
Also in recent weeks, Douglas Michael Urnick, 36, of Coeburn, Va., was sentenced to 24 months’ incarceration; Dale August Leichtenberg, 39, of Saint Charles, Va., was sentenced to 5 months’ incarceration; and Rebecca Owens, 58, of Big Stone Gap, Va., was sentenced to a period of three years’ probation. Each defendant previously pleaded guilty to one count of conspiracy to distribute controlled substances, to include methamphetamine, heroin, oxycodone, and alprazolam.
“In 2017, more than 72,000 Americans died from fatal drug overdoses—more than the total number of U.S. troops killed during the Vietnam War,” U.S. Attorney Cullen stated. “Heroin, fentanyl, and other prescription opioids are the leading causes of this death epidemic, which has also devastated the Western District of Virginia. As U.S. Attorney, I am committed to working with our federal, state, and local partners to target individuals and organizations primarily responsible for importing, distributing, and unlawfully prescribing these deadly substances and sending them to federal prison. We are also committed to meaningful prevention and recovery initiatives, recognizing that we can’t arrest our way out of this crisis.”
“Prescription drug abuse remains a concern throughout Virginia and my team and I work diligently with our law enforcement partners to bring those who distribute drugs in the Commonwealth to justice,” Virginia Attorney General Herring said today. “We appreciate the hard work and dedication of our law enforcement partners in connection with this investigation. My office will continue our work to address the prescription drug epidemic in the Commonwealth to make our communities safer.”
In all, 11 individuals are charged as part of this drug trafficking conspiracy. One defendant remains scheduled for sentencing in October 2019. The two lead defendants are scheduled for trial in September 2019.
According to court records and evidence presented at previous hearings by Special Assistant United States Attorney and Virginia Assistant Attorney General Suzanne Kerney-Quillen, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Athens, and Augusta, Georgia, into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 197 grams of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone, with a street value of nearly $30,000.
The investigation of the case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and the U.S. Marshals also assisted with the execution of search warrants and arrests connected with this case. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Former U.S.D.A. Farm Service Agency Loan Officer in Uvalde Sentenced to Two Years in Federal Prison in Farm Loan Fraud CaseRead the Press Release
Barbara Serna Salinas, a 43-year-old former loan officer for the United States Department of Agriculture (USDA) Farm Service Agency (FSA) in Uvalde, was sentenced to two years in federal prison for a farm loan fraud scheme, announced United States Attorney John Bash.
During sentencing yesterday in Del Rio, U.S. District Judge Alia Moses also ordered Serna to pay $166,744.20 in restitution to the USDA and be placed on supervised release for a period of five years after completing her prison term.
On June 28, 2018, Serna pleaded guilty to one count of making a false statement on a loan application. By pleading guilty, Serna admitted she issued multiple fraudulent FSA loans from May 2011 through June 2016. Furthermore, in exchange for approving the loans, Serna accepted cash or other forms of payment from her co-defendants, Ruben James Valadez, age 44 of Uvalde, and Eric Torres Neira, age 44 of San Antonio. According to court documents, a review of USDA loans approved by Serna after 2011 identified several to Neira and Valadez, which totaled more than $150,000.
On December 4, 2018, Judge Moses sentenced Neira to five months imprisonment and ordered him to pay restitution to the USDA, joint and severally with Serna, in the amount of $142,961.94. Valadez is currently awaiting sentencing on October 2, 2019. Neira and Valadez pleaded guilty to the same false statement charge--Neira on March 29, 2018; Valadez on April 26, 2018.
The United States Department of Agriculture Office of Inspector General-Investigations, with the assistance of the Federal Bureau of Investigation, conducted this investigation. Assistant United States Attorney Todd Keagle is prosecuting this case on behalf of the Government.
Former U.S. Army Reserve Employee Pleads Guilty to Wire Fraud and TheftRead the Press Release
A former U.S. Army Reserve employee pleaded guilty today to charges of wire fraud and theft of government money as part of a scheme to steal more than $400,000 from the 63rd Regional Support Command at Moffett Field in Mountain View, California, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Ramon Torry, 54, of Irvine, California, pleaded guilty to one count of wire fraud and one count of theft of government money before U.S. District Judge Beth Labson Freeman in the Northern District of California, San Jose Division. Sentencing has been scheduled for July 30, 2019.
According to the plea documents, Torry devised a scheme to steal money from the 63rd Regional Support Command related to a contract for the creation of a Public Service Announcement (PSA) touting the Command’s accomplishments. In February 2016, Torry began creating fake invoices for work allegedly performed by the Calfornia production company for the production of the PSA as well as for training and other services that were never performed. Torry then directed others in the Command to make payments to the company contracted to produce the PSA by both government purchase card and wire payments. Between December 2015 and October 2017, Torry directed payments from the 63rd to the production company totaling more than $414,000. He then directed Person A at the company to kick back more than $300,000 of those funds to Torry, which he converted to his own use and that of others.
The General Services Administration Office of Inspector General and the U.S. Army Criminal Investigation Command investigated the case. Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section is prosecuting the case. Assistant U.S. Attorney Marissa Harris from the Northern District of California has provided assistance with the case.
Former Tigard Resident Sentenced to Seven Years in Federal Prison for Defrauding Investors in Ohio Gold MineRead the Press Release
PORTLAND, Ore.—Harry Dean Proudfoot III, 79, formerly a resident of Tigard, Oregon, was sentenced today to 84 months in federal prison and three years’ supervised release for running a fraudulent gold mining investment scheme and stealing approximately $4 million from more than 140 investors.
According to court documents and information shared at trial, in 2008, Harry Proudfoot created 3 Eagles Research and Development, a company based in Tigard, that he used from 2008 through 2012 to solicit investors for a purported goldmining operation in Ohio. Harry Proudfoot, along with his adult children, including co-defendant Matthew Proudfoot, falsely promised to use investors’ money to purchase mining equipment and conduct mining operations at two gravel pits in Ohio.
To entice investors, Proudfoot and his children offered high rates of return, typically 10% of gross revenues, payable once the mine became operational. They falsely told investors they had all the necessary legal and business requirements in place for the mining operation.
At the same time, Proudfoot and his children withheld important facts from investors including that Harry Proudfoot had received cease and desist orders from the States of Alaska and Oregon for selling unregistered securities through material misrepresentations in 1992, 1993, and 2003 and that Matthew Proudfoot had filed for bankruptcy in 2010. Rather than using investor money as promised, they diverted it to their personal use, funding living expenses, cars, travel, credit card bills, medical payments, lulling payments and other expenses to keep the scheme afloat.
In 2011, the U.S. Securities and Exchange Commission (SEC) began investigating the group for securities violations. Ultimately, the U.S. District Court for the District of Oregon entered a judgment against Harry Proudfoot, Matthew Proudfoot and the 3 Eagles Research and Development Company in the SEC enforcement action
On December 13, 2018, a federal jury convicted Proudfoot of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.
Proudfoot’s son and co-defendant Matthew Proudfoot pleaded guilty to wire fraud and money laundering on November 1, 2017. He will be sentenced on July 8, 2019.
The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Scott E. Bradford and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.
Former Philadelphia Police Officer Sentenced to Prison for Fraud and Ordered to Forfeit over $653,000 in Ill-Gotten GainsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Victor Gates, 72 of Philadelphia, PA, a retired 30-year veteran of the Philadelphia Police Department, was sentenced today to serve 40 months in prison, followed by two years’ supervised release, and to pay a $15,000 fine. Gates was also ordered to forfeit $653,319.10 in proceeds from his crimes. The sentence was imposed by the Honorable Wendy Beetlestone of the United States District Court for the Eastern District of Pennsylvania.
Gates was convicted at trial of one count of conspiracy to commit honest services fraud, fourteen counts of honest services mail fraud, and two counts of lying to federal investigators. The charges arose from Gates’s orchestration of a seven-year bribery scheme during which he paid a Philadelphia Police detective for special access to law enforcement databases in order to build up Gates’ lucrative towing business. The evidence at trial showed that Gates’s business made monthly bribe payments by check since at least May 2008. In total, Gates paid the detective $25,200 to abuse his access to law enforcement databases. The jury also found that during the investigation, Gates lied on two occasions to federal investigators about the corrupt arrangement.
“Through his corruption and criminality, Gates has disgraced himself, embarrassed his former colleagues, and corrupted a former police detective who viewed Gates as a mentor,” said U.S. Attorney McSwain. “The sentence imposed today should send a message that such corruption will be vigorously prosecuted and the offenders held to account, no matter who they are or what position they hold.”
“After 30 years on the force, Victor Gates knew well that bribing a police officer was an egregious crime,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Nonetheless, he stuck with his scheme, ensnaring a former colleague and ignoring all ethical boundaries in order to make a buck. What a shame. Know that the FBI will continue to tenaciously investigate such corruption, and bring those involved to justice.”
“While we are saddened that a former law enforcement officer has engaged in such egregious conduct, we certainly appreciate the efforts of our federal law enforcement partners in bringing Mr. Gates to justice,” said Philadelphia Police Commissioner Richard Ross. “The investigation, arrest, and successful prosecution of Mr. Gates serves as an emphatic reminder that no one may operate outside the law, regardless of position or affiliations.”
The case was investigated by the Federal Bureau of Investigation and the Internal Affairs Division of the Philadelphia Police Department and was being prosecuted by Assistant United States Attorney Eric L. Gibson.
Former McKees Rocks Man Pleads Guilty to Possessing FentanylRead the Press Release
PITTSBURGH, PA –A former resident of McKees Rocks, PA, has pleaded guilty to possessing with the intent to distribute a quantity of fentanyl, United States Attorney Scott W. Brady announced today.
Terrance Murphy, 46, entered a guilty plea before United States District Judge Cathy Bissoon to one count of possession with intent to distribute a quantity of fentanyl. Murphy has been detained since his initial appearance and will remain detained pending sentencing. Sentencing is scheduled for August 9, 2019 at 10 a.m.
According to information presented to the court, on or about November 8, 2017, the FBI Opioid Task Force was conducting an investigation into Murphy. On that same date, members of the Task Force observed Murphy leave his home in McKees Rocks and enter an SUV. A traffic stop was later conducted on the SUV Murphy was driving and a search of the vehicle revealed approximately 26 grams of fentanyl. Murphy would later admit to FBI investigators that he was a fentanyl distributor and would buy and sell fentanyl in the Pittsburgh area.
The law provides for a maximum sentence of up to 20 years in prison, a fine of $1,000,000, 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.
Assistant United States Attorneys Timothy M. Lanni and Jeffrey R. Bengel are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, Stowe Township Police Department, McKees Rocks Police Department, and Pennsylvania Attorney General’s Office.
Former Donna ISD Police Officer Heads to Prison for Assisting “Rip Crew”Read the Press Release
McALLEN, Texas – A 40-year-old Donna man has been ordered to federal prison following his conviction of conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Juan Fernando Mata pleaded guilty Jan. 9, 2019.
Today, U.S. District Judge Micaela Alvarez ordered Mata to serve 130 months in federal prison to be immediately followed by four years of supervised release.
At the hearing, Judge Alvarez considered Mata’s role in assisting members of a “rip crew” by conducting fraudulent traffic stops on drug load vehicles so that members of that crew could steal the controlled substances.
Specifically, the court considered Mata’s role in conducting traffic stops in January 2016 and another in May 2017, to assist members in stealing approximately nine kilograms of cocaine and approximately 400 pounds of marijuana, respectfully,
The court also heard allegations were made about Mata assisting members of a second “rip crew” by conducting similar activity.
In pronouncing the sentence today, Judge Alvarez noted that while the rip crew members’ conduct in conducting home invasions and carjackings was reprehensible, Mata’s conduct could also be described as such. The court stated how Mata’s actions eroded the public trust and the sense of security in knowing that law enforcement officers are individuals that can be turned to in the event of a home invasion or other criminal conduct. Judge Alvarez noted that when any law enforcement officer commits criminal conduct, it effects law enforcement as a whole and gives the area a bad name.
In considering the many letters of support for Mata, including the City of Donna Mayor and employees of Donna Independent School District, the court noted its concern with individuals viewing him as a role model. She stated that it speaks to poor principles when someone sworn to uphold and enforce the law completely disregards it.
Mata was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade prosecuted the case.
Former Director of Financial Aid at New York Graduate School and Two Former Students Sentenced to Prison for Bribery and Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MELANIE WILLIAMS-BETHEA, the former director of financial aid at Teachers College, Columbia University, and two former Teachers College students, MAWULI HORMEKU and CARMEN CANTY, were sentenced to prison terms for their respective roles in illicitly obtaining hundreds of thousands of dollars from Teachers College through a years-long bribery and kickback scheme. WILLIAMS-BETHEA was sentenced today by U.S. District Judge Alison J. Nathan, who previously sentenced HORMEKU and CANTY. The defendants received the following sentences:
MELANIE WILLIAMS-BETHEA
40 months in prison
MAWULI HORMEKU
12 months and one day in prison
CARMEN CANTY
3 months in prison
WILLIAMS-BETHEA pled guilty to conspiracy to commit bribery on October 17, 2018; HORMEKU pled guilty to committing bribery on July 26, 2018; and CANTY pled guilty to committing bribery on July 31, 2018. Two additional students who participated in the scheme, ANNICE KPANA and KYLA THOMAS, also have pled guilty and are scheduled to be sentenced later this month.
U.S. Attorney Geoffrey S. Berman said: “These defendants exploited and stole from an institution of higher learning, taking money that was intended to help provide opportunities for individuals training to teach future generations. They cumulatively pocketed more than $2 million, and their prison sentences reflect the significant harm caused by their conduct.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court at the sentencings:
From 2008 through 2017, the defendants engaged in bribery and kickback schemes resulting in the loss of more than $2 million from Teachers College. WILLIAMS-BETHEA, who was employed by Teachers College as the director of financial aid during the relevant time period, perpetrated the scheme by approving aid payments to HORMEKU, CANTY, KPANA, and THOMAS (collectively, the “Students”) far in excess of their actual need, and then obtaining portions of the unjustified aid allotments she approved as kickback payments from the Students.
Specifically, WILLIAMS-BETHEA approved excessive “cost of attendance” figures for the Students that did not comport with their actual needs or costs of living, which had the effect of increasing the amount of financial aid they were eligible to receive, and by then approving stipends for the Students up to – and at times exceeding – these inflated amounts. To facilitate some of the stipends, WILLIAMS-BETHEA created fraudulent stipend request forms for financial awards to the Students, which gave the appearance that professors or other administrators had requested stipends, when in fact they had not, and then approved the fraudulently requested stipends herself.
After WILLIAMS-BETHEA facilitated these awards of unjustified financial aid, HORMEKU, CANTY, KPANA, and THOMAS paid WILLIAMS-BETHEA nearly $1 million in kickbacks.
* * *
In addition to the prison terms, Judge Nathan ordered WILLIAMS-BETHEA, 49, to pay restitution and forfeiture in the amount of $2,067,349; ordered HORMEKU, 39, to pay restitution and forfeiture in the amount of $620,010; and ordered CANTY, 40, to pay restitution and forfeiture in the amount of $166,105.
Mr. Berman praised the investigative work of the Department of Education, Office of the Inspector General in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Thomas McKay and Alex Rossmiller are in charge of the prosecution.
Former Councilman Larry Duncan Sentenced to 6 Months’ House Arrest in Public Corruption ProbeRead the Press Release
Former Dallas City Councilman Larry Duncan was sentenced this morning on charges stemming from the public corruption investigation into Dallas County Schools (DCS), announced U.S. Attorney Erin Nealy Cox.
A former DCS Board of Trustees President, Mr. Duncan, 73, pleaded guilty in October to one count of tax evasion, admitting he failed to pay income tax on campaign contributions from a DCS vendor. He was sentenced this morning to six months of home confinement and three years of probation; he will also be required to repay more than $45,000 in back taxes and interest and perform community service for the City of Dallas.
“This particular investigation has netted six convictions to date,” said U.S. Attorney Nealy Cox. “We expect elected officials to be absolutely fastidious with money they receive as a result of their official position. When public officials behave unscrupulously, North Texas can count on federal prosecutors to intervene. We hope officials will heed our commitment to exposing corruption in any form it takes, and act accordingly.”
According to plea papers, between 2012 and 2016, Mr. Duncan accepted nearly a quarter of a million dollars in campaign contributions from Force Multiplier Solutions president Robert Leonard, who happened to be pursuing lucrative stop-arm camera contracts with DCS.
Instead of putting Mr. Leonard’s money towards legitimate campaign expenses associated with his DCS re-election bid, Mr. Duncan admits he used at least $184,726.03 for personal benefit, taking out cash withdrawals, passing on money to his wife, and even using funds to pay car-related expenses.
He then failed to disclose the money he diverted from the campaign on his tax returns, hiding the income from the IRS.
Mr. Duncan’s campaign contributor, Mr. Leonard, along with former Mayor Pro Tem Dwaine Caraway, pleaded guilty in August to conspiracy to commit honest services wire fraud, after the DCS investigation revealed that Mr. Leonard had funneled over $3 million in bribes to Caraway and Dallas County Schools Superintendent Ricky Sorrells. Mr. Sorrells pleaded guilty in April to conspiracy to commit honest services wire fraud. Another defendant, Slater Swartwood, who operated the shell companies used to conceal the bribes, admitted in December 2017 to conspiring to launder money.
Dallas County Schools, an agency that collected property taxes to fund its fleet of around 2,000 buses, was shuttered in November 2017, saddled with approximately $103 million in debt.
The Internal Revenue Service Criminal Investigation unit (IRS-CI) and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Andrew Wirmani, NDTX’s Public Corruption Coordinator, Marcus Busch, and Chad Meacham prosecuted the case.
Former City of Detroit Building Authority Official and Former Executive at Adamo Group Plead Guilty to Bribery Conspiracy in Connection with the Detroit Demolition ProgramRead the Press Release
The former Field Operations Manager for the City of Detroit Building Authority overseeing the demolition program in Detroit and a former executive at a Detroit demolition firm pleaded guilty today to conspiracy to commit bribery and conspiracy to commit honest services fraud in connection with the Detroit Demolition Program, announced First Assistant U.S. Attorney Saima Mohsin and Makan Delrahim, Assistant Attorney General of the Antitrust Division of the Department of Justice.
Joining in the announcement were Christy Romero, the Special Inspector General of the Troubled Asset Relief Program (SIGTARP), and Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation (FBI).
Aradondo Haskins, 48, pleaded guilty today before the Honorable Victoria Roberts to conspiring with a contractor to take bribes on city contracts as a public official and to commit honest services fraud by taking bribes while he was employed as an executive at Adamo Group (Adamo) between 2013 and 2016 in connection with the Blight Elimination Program (BEP) in Detroit.
Anthony Daguanno, 62, also pleaded guilty today before the Honorable Victoria Roberts to conspiring with a contractor to commit honest services fraud by taking bribes while he was employed as an executive at Adamo Group.
The United States Treasury Department created the BEP, which focused on helping communities demolish vacant houses. The program was paid for through the Hardest Hit Fund (HHF), a housing support program intended to protect home values, preserve home ownership, and promote economic growth. The City of Detroit was one of the recipients of this HHF money. Approximately $258,656,459 in Hardest Hits Funds have been allocated to the City of Detroit since October 7, 2013.
As stated during Haskins’s guilty plea, from January 2013 through April 2015, Haskins was employed as an “estimator” with Adamo. Adamo is a private, “for profit,” company which provides demolition services throughout the United States and Canada, including the City of Detroit. Haskins’s responsibilities at Adamo included assembling bid packages in response to “Requests for Proposals” (RFPs) issued by the City of Detroit. Adamo responded to the RFPs by submitting bids to the City hoping to secure demolition contracts by being the lowest bidder. In assembling the bid packages, Haskins contacted various subcontractors requesting bids for work to be included in Adamo’s submissions. “Contractor A” was one of the subcontractors who received Haskins’s invitation to bid. On several occasions, Contractor A paid Haskins money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Haskins disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. Haskins accepted bribes on at least eight occasions while he worked at Adamo totaling approximately $14,000.00.
According to the plea, due in large part to his experience at Adamo, Haskins was hired by the City of Detroit Building Authority (DBA) as a “Field Operations Manager” for its demolition program. As an official of the City of Detroit, Haskins was the primary point of contact for demolition contractors and he opened and read bids contractors submitted in response to RFPs. Contractor A, knowing that Haskins was still in a position to influence the demolition contract bidding process, continued to pay Haskins to use his official authority to influence the awarding of demolition related contracts to Contractor A. Haskins accepted the cash bribe payments from Contractor A in exchange for providing Contractor A confidential information about bids submitted to the DBA. With the confidential information, Contractor A was able to submit bids low enough to ensure that Contractor A was awarded City of Detroit demolition related contracts. In total, Haskins accepted approximately $11,500 in bribes from Contractor A. After his employment with the City of Detroit, Haskins accepted an additional approximately $1,000 from Contractor A for information Contractor A received while Haskins was employed with the City.
As stated during Daguanno’s guilty plea, from January 2013 through January 2019, Daguanno was employed as a “Senior Estimator” at Adamo. Daguanno’s responsibilities at Adamo included soliciting bids from subcontractors, assembling bid packages in response to RFPs issued by the City of Detroit, and communicating with subcontractors. In assembling the bid packages submitted to the City of Detroit, Daguanno communicated regularly with various subcontractors and kept track of the bids they submitted. “Contractor A” was one of the subcontractors with whom Daguanno communicated. On numerous occasions, Contractor A paid Daguanno money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Daguanno disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. In total, Daguanno accepted over $372,000 in bribes and kickbacks on seventy-one occasions over eight years.
Haskins and Daguanno are the first defendants to plead guilty in connection with the criminal investigation into the demolition program in the City of Detroit. The government, as of today’s date, does not anticipate charging any additional public officials.
First Assistant U.S. Attorney Saima Mohsin and Assistant Attorney General Makan Delrahim commended the outstanding work of SIGTARP and the FBI in conducting a comprehensive criminal investigation into the demolition program.
“The City of Detroit and its demolition program were entrusted with millions of taxpayer dollars to tear down abandoned houses in Detroit’s neighborhoods. The corruption of the government contracting process by these two individuals damaged the integrity of the demolition program and broke the public trust. This prosecution serves as a warning to other public officials, as well as to private sector companies working with public officials, that soliciting or accepting bribes will be punished and as a promise to the taxpaying public that such violations of the public trust will not be tolerated,” said First Assistant U.S. Attorney Saima Mohsin.
The guilty pleas today demonstrate the Antitrust Division’s commitment to prosecuting conduct that subverts the competitive process and to protecting taxpayer funds.
“When the bidding process on federally funded contracts is corrupted through bribery and fraud by public officials and contractors, it undermines the public’s confidence and eliminates the benefits of open competition,” said Assistant Attorney General Makan Delrahim. “When bribery tips the scales in favor of corrupt bidders, free market competition is harmed to the loss of taxpayers and honest bidders. The harms didn’t end there, they continue to affect cities like Detroit and states like Michigan. The Antitrust Division will continue to work with the U.S. Attorney’s Office and our investigative partners to uncover and prosecute such conduct.”
“There is no place for corruption in a federal government program like TARP’s Hardest Hit Fund,” said Special Inspector General Christy Goldsmith Romero of SIGTARP. “The convictions announced today detail how two employees of a demolition company deprived the government and taxpayers of full and open competition in the Hardest Hit Fund by providing a contractor confidential information about the lowest bid in exchange for bribes. The bribery continued when one employee later worked for the Detroit Building Authority. I thank First Assistant U.S. Attorney Saima Mohsin, and Assistant Attorney General Makan Delrahim for working with SIGTARP to fight corruption in this program.”
“Mr. Daguanno and Mr. Haskins admitted in federal court today to corrupting the bidding process while seeking contracts through a federally-funded program. Mr. Haskins' illegal behavior continued after he was hired by the City of Detroit,” said SAC Slater. “The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323.”
The case is being prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen and Karen Reynolds, and DOJ Antitrust Trial Attorney Matthew Stegman.
Former Associate General Counsel of Seaworld Entertainment, Inc. Pleads Guilty to Insider TradingRead the Press Release
The former associate general counsel and assistant secretary of SeaWorld Entertainment Inc. (SeaWorld), a publicly traded amusement park corporation headquartered in Orlando, Florida, pleaded guilty today for his role in an insider-trading scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI)’s New York Field Office made the announcement.
Paul B. Powers, 60, of Winter Park, Florida, pleaded guilty to one count of insider trading before U.S. Magistrate Judge Leslie R. Hoffman of the Middle District of Florida. Sentencing before U.S. District Judge Carlos E. Mendoza of the Middle District of Florida has not yet been set.
As part of his guilty plea, Powers admitted that he received material nonpublic information about SeaWorld’s financial performance through his position as assistant general counsel and assistant secretary in June, July and August 2018. Specifically, Powers admitted that beginning in June 2018, he received information that had been prepared for an upcoming meeting of SeaWorld’s Revenue Committee showing that SeaWorld anticipated both attendance and revenue to increase in the first half of 2018 by approximately eight percent as compared to the first half of 2017. Powers acknowledged that he later attended Revenue Committee meetings at which the increase in attendance and revenue was discussed, and took notes of the meetings in his capacity as SeaWorld’s assistant secretary. Powers further admitted that on Aug. 1, 2018, he received materials prepared for an upcoming Audit Committee meeting that included a draft earnings release reporting the increased revenue and attendance figures for the first half of 2018, and also reporting that one of SeaWorld’s key earnings metrics (earnings before interest, tax, depreciation and amortization, or EBITDA) had improved 59.1 percent in the first half of 2018 as compared to the first half of 2017. In addition, Powers received a draft U.S. Securities and Exchange Commission (SEC) Form 10-Q reflecting that SeaWorld had “reached an agreement in principle with the SEC Enforcement Staff to settle, without admitting or denying, charges against SeaWorld arising out of the previously disclosed SEC investigation and that SeaWorld recorded an estimated liability of $4.0 million related to this matter.” On Aug. 3, 2018, Powers attended a meeting of the Audit Committee at which the draft earnings release and SEC Form 10-Q were discussed, and took notes of the meeting in his capacity as assistant secretary, he admitted.
“Paul Powers admitted today that he used information gained through his position as a senior executive at SeaWorld to unlawfully profit from trades in hundreds of thousands of dollars’ worth of SeaWorld securities,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law-enforcement partners will hold executives accountable for their criminal conduct, particularly conduct that threatens the integrity of our capital markets.”
“While employed by SeaWorld, Powers benefited from revenue information not accessible to the public, to make a quick profit, contrary to law and SeaWorld’s trading policies,” said Special Agent in Charge Melendez. “HSI’s El Dorado Task Force remains fully committed to protect the U.S. financial markets from such egregious practices.”
After Powers obtained the foregoing material nonpublic information, he liquidated all of the equities in his personal TD Ameritrade account and purchased 18,000 shares of SeaWorld stock on Aug. 2, 2018 at a cost of approximately $385,592, he admitted. Powers further admitted that when he purchased the shares, he was prohibited from trading in SeaWorld stock pursuant to SeaWorld’s trading policies. After SeaWorld announced the better-than-expected attendance, revenue and EBITDA results, the price of SeaWorld shares spiked approximately 17 percent—from $21.13 per share at the close of trading on Friday, Aug. 3, 2018, to $25.40 per share when the market reopened on Monday, Aug. 6, 2018. Powers admitted that he then capitalized on the increase in share price by selling all 18,000 shares, realizing gross proceeds of approximately $450,237 and a net profit of approximately $64,645.
HSI New York investigated the case. Deputy Chief Henry Van Dyck and Trial Attorney Mark Cipolletti of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission also provided assistance in this matter.
Florida Executive Sentenced to 20 Years in Prison for Orchestrating $150 Million International Ponzi SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ANTONIO CARLOS DE GODOY BUZANELI, 57, to 240 months in prison for his role in a $150 million investment fraud scheme involving Brazilian factoring. BUZANELI, who entered his guilty plea on April 19, 2018, was sentenced today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. BUZANELI’S co-conspirators, JOSE MANUEL ORDOÑEZ, JR., 48, was sentenced on January 23, 2019, to 120 months in prison and JULIO ENRIQUE RIVERA, 62, will be sentenced on April 16, 2019.
U.S. Attorney Erica MacDonald said, “Antonio Buzaneli was the primary architect of a $150 million Ponzi scheme that targeted hundreds of victims worldwide, many of whom were elderly and vulnerable. Some victims lost their retirement savings, others lost the ability to provide a college education to their children or grandchildren. For these egregious crimes, Mr. Buzaneli will spend the next 20 years behind bars. I applaud our law enforcement partners for their steadfast efforts in seeking justice for the victims.”
“No matter how complex the scheme, the FBI is committed to stopping fraudsters like these from preying on people, especially elderly investors who may have lost their life savings in this case,” said Jill Sanborn, Special Agent in Charge of the FBI's Minneapolis Division. “We are grateful for our partners at the U.S. Attorney’s Office, the United States Postal Inspection Service and the Minnesota Commerce Fraud Bureau for thoroughly investigating this global scheme and bringing these criminals to justice; and we believe this matter further illuminates the need for citizens to be wary of those peddling these kinds of fraudulent business investments.”
“Our securities enforcement unit and the Commerce Fraud Bureau began investigating this scheme after receiving a tip about a suspicious investment opportunity being offered in Minnesota,” said Steve Kelley, Commissioner of the Minnesota Department of Commerce. “We are proud that the Commerce Fraud Bureau collaborated successfully with federal authorities, bringing to justice a far-reaching operation that deceived Minnesotans.”
According to his guilty plea, BUZANELI, along with his co-conspirators, ORDOÑEZ and RIVERA, were the principals of Providence Holdings International, Inc., a company based in Key Biscayne, Florida. BUZANELI and ORDOÑEZ became principals of Providence Financial Investments, Inc. and Providence Fixed Income Fund LLC (collectively, along with Providence Holdings International, Inc., “Providence”) in order to raise money from investors.
According to BUZANELI’s guilty plea and documents filed in court, from about 2010 until June 2016, Providence raised approximately $150 million from investors worldwide by representing that Providence would invest the money in Brazilian factoring. “Factoring” is a financial transaction in which accounts receivable are purchased at a discount. Providence’s marketing materials explained that in Brazil consumers write ten separate post-dated checks for $100 – one per month – to pay for $1,000 in retail items such as consumer electronics or groceries. The retailer then sells the post-dated checks to Providence for approximately $820, and Providence earns $180 over ten months as the checks mature. As a result, Providence claimed to make a 48 percent annual return on money invested in Brazil.
According to BUZANELI’s guilty plea and documents filed in court, Providence raised more than $64 million from U.S. investors by employing a network of brokers who sold promissory notes bearing annual interest rates between 12 percent and 24 percent. Investors were told their money would be used to factor accounts receivable in Brazil. BUZANELI, ORDOÑEZ and RIVERA provided the brokers with an Executive Memorandum to show investors that their money would be used to factor accounts receivable in Brazil. The Executive Memorandum falsely stated that funds would be used “for the sole purpose” of making loans to a Brazilian subsidiary of Providence “which will use the proceeds of the loan to acquire receivables or financial instruments such a post-dated checks and/or Duplicatas in the Brazilian Factoring Market.”
According to the defendant’s guilty plea and documents filed in court, BUZANELI and ORDOÑEZ instead used a significant amount of the investors’ funds to make Ponzi-style payments to other investors and to make commission payments to Providence’s nationwide network of brokers. BUZANELI and ORDOÑEZ also diverted investor funds to other companies they controlled, including an import/export company, a travel company, a realty company, a credit rehabilitation company, and a catering company and food truck operated by BUZANELI’S wife.
According to the defendant’s guilty plea and documents filed in court, BUZANELI and ORDOÑEZ also opened Providence offices and affiliates in locations around the world, including London, Taipei, Shanghai, Singapore, Vancouver, and Panama. For example, in 2011 and 2012, BUZANELI and ORDOÑEZ opened Providence affiliates in the Bailiwick of Guernsey and in Hong Kong, through which they raised approximately $85 million from offshore investors based on the same lies they told investors in the United States – that their money would be used to invest in Brazilian factoring. Instead, much of the investors’ money was transferred to other Providence-controlled entities around the world as well as to bank accounts controlled by BUZANELI and ORDOÑEZ, where the money was used for payments unrelated to Brazilian factoring, including to pay commissions to U.S. brokers and to make interest payments to American investors in Providence’s U.S.-based entities. As a result of the fraud scheme, Providence investors worldwide – including more than 500 victims in the United States alone – lost a total of more than $100 million.
This case was the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Minnesota Commerce Fraud Bureau. United States Attorney MacDonald would also like to thank the Securities and Exchange Commission for their assistance on this case.
Assistant U.S. Attorneys Kimberly A. Svendsen and Joseph H. Thompson prosecuted this case.
Defendant Information:
ANTONIO CARLOS DE GODOY BUZANELI, 57
Coral Gables, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
Sentenced:
- 240 months in prison
- $51,353,861.45 in restitution
- Three years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Final Gang Defendant in Federal Hate Crimes Indictment Pleads Guilty in Firebombing of African-American ResidencesRead the Press Release
LOS ANGELES – The lead defendant in a federal hate crimes indictment has pleaded guilty to five charges and admitted he organized a group of street gang members who firebombed African-American residences inside the Ramona Gardens Housing Development in Boyle Heights “in order to force the African-American victims to move from the [development].”
Carlos Hernandez, also known as “Rider,” 34, pleaded guilty Monday to five felonies that carry a mandatory minimum sentence of 15 years in federal prison.
On the night of May 11, 2014, which was Mother’s Day, eight members of the Big Hazard street gang – including Hernandez, who was orchestrating the group’s activities – agreed to firebomb several apartments in Ramona Gardens because the residents were African Americans and living in the housing complex. In his plea agreement, Hernandez admitted that he organized the participants, gave each specific roles in the attacks and provided them with items to be used, including masks to conceal their identity and a hammer to break windows.
Once the gang members located their pre-selected targets, they smashed the windows of four apartments to allow for cleaner entry of the firebombs to maximize damage and threw lit Molotov cocktails into the residences, according to court documents. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack.
“Hernandez told the other codefendants who were present that the African-American victims were being targeted for firebombing because of their race,” according to his plea agreement, in which Hernandez admitted that he “and the codefendants knew that throwing firebombs into occupied residences after midnight created a substantial likelihood of causing serious bodily injury” to the African-American families.
“This defendant oversaw a scheme designed to send African-American residents a potentially deadly message – you are not welcome here,” said United States Attorney Nick Hanna. “As this successful prosecution clearly demonstrates, we simply will not tolerate acts of violence and hate calculated to deprive people of their civil rights.”
“The defendant and his fellow gang members targeted and attacked families sleeping in their homes because of their race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to investigate and prosecute these violent acts of hate.”
“Many resources were devoted to the investigation of this hate crime which inexplicably targeted residents based on the color of their skin, including vulnerable children,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Any crime that violates an individual’s civil rights will not be tolerated and will be vigorously investigated by the FBI and our partners.”
Hernandez pleaded guilty to conspiracy to violate civil rights, violent crime in aid of racketeering, using fire and carrying explosives to commit another federal felony, using and possessing a firearm in a crime of violence, and violating the Fair Housing Act.
United States District Judge Christina A. Snyder is scheduled to sentence Hernandez on October 7, at which time he will face a statutory maximum penalty of life in prison.
Previously in this case, seven other defendants who were charged in 2016 pleaded guilty to federal hate crime and related offenses. All of those defendants also admitted that they participated in the firebombings because of the victims’ race and color and with the intent to force the victims to move away from the federally funded housing complex. Those seven defendants are scheduled to be sentenced later this year.
The investigation into the firebombing was conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section; and Assistant United States Attorney MiRi Song of the General Crimes Section.
Final Defendant in East L.A. Street Gang Pleads Guilty to Federal Charges Stemming from Firebombing of African-American ResidencesRead the Press Release
The lead defendant in a federal hate crimes indictment pleaded guilty yesterday to five charges and admitted he organized a group of street gang members who firebombed African-American residences inside the Ramona Gardens Housing Development “in order to force the African-American victims to move from the [development].”
Carlos Hernandez, also known as “Rider,” 34, pleaded guilty yesterday to five felonies that carry a mandatory minimum sentence of 15 years in federal prison.
“The defendant and his fellow gang members targeted and attacked families sleeping in their homes because of their race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to investigate and prosecute these violent acts of hate.”
“This defendant oversaw a scheme designed to send African-American residents a potentially deadly message – you are not welcome here,” said United States Attorney Nick Hanna. “As this successful prosecution clearly demonstrates, we simply will not tolerate acts of violence and hate calculated to deprive people of their civil rights.”
“Many resources were devoted to the investigation of this hate crime which inexplicably targeted residents based on the color of their skin, including vulnerable children,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Any crime that violates an individual’s civil rights will not be tolerated and will be vigorously investigated by the FBI and our partners.”
On the night of Mother’s Day, May 11, 2014, eight members of the Big Hazard street gang – including Hernandez, who was orchestrating the group’s activities – agreed to firebomb several apartments in Ramona Gardens because the residents were African Americans and living in the housing complex. In his plea agreement, Hernandez admitted that he organized the participants, gave each specific roles in the attacks and provided them with items to be used, including masks to conceal their identity and a hammer to break windows.
Once the gang members located their pre-selected targets, they smashed the windows of four apartments to allow for cleaner entry of the firebombs to maximize damage and threw lit Molotov cocktails into the residences, according to court documents. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack.
“Hernandez told the other codefendants who were present that the African-American victims were being targeted for firebombing because of their race,” according to his plea agreement, in which Hernandez admitted that he “and the codefendants knew that throwing firebombs into occupied residences after midnight created a substantial likelihood of causing serious bodily injury” to the African-American families.
Hernandez pleaded guilty to conspiracy to violate civil rights, violent crime in aid of racketeering, using fire and carrying explosives to commit another federal felony, using and possessing a firearm in a crime of violence, and violating the Fair Housing Act.
United States District Judge Christina A. Snyder is scheduled to sentence Hernandez on Oct. 7 where he will face a statutory maximum penalty of life in prison.
Previously in this case, the other seven defendants who were charged in 2016 pleaded guilty to federal hate crime and related offenses. All of those defendants also admitted that they participated in the firebombings because of the victims’ race and color and with the intent to force the victims to move away from the federally funded housing complex in the Boyle Heights section of Los Angeles. Those seven defendants are scheduled to be sentenced later this year.
The investigation into the firebombing was conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section; and Assistant United States Attorney MiRi Song of the General Crimes Section.
For more information about DOJ’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to DOJ hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Felon Sentenced to Prison for Firearm and Obstruction of Justice ChargesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to more than four and a half years in prison for being a felon in possession of a firearm and conspiracy to obstruct justice.
According to court documents, in April 2018, Richmond Police Officers performed a traffic stop on the vehicle of Keith Gasque, 26, for suspicion of illegal tint. During the stop, officers learned that Gasque had a suspended license and asked him to step out of the vehicle while the officers continued to ask him questions. Gasque then agreed to allow the officers to perform a protective sweep of his vehicle, leading to the officers finding a loaded magazine in the center console. When officers attempted to place him in handcuffs, Gasque fled on foot, circled back to vehicle and again fled in the vehicle, nearly striking one of the officers. After officers eventually apprehended Gasque and fully searched the vehicle, they found two loaded firearms in a backpack belonging to Gasque, and learned that the original magazine found in the center console did not fit either of the two firearms. Further investigation led law enforcement to learn that Gasque had recruited others to straw purchase the firearms on his behalf.
After Gasque was charged and detained in the Richmond City Jail, Gasque and his mother, Regina Gasque, agreed to recruit some of Gaque’s friends to falsely take responsibility for having owned the firearms officers found in Gasque’s vehicle. One of those friends, Trammel Lewis, is also one of the individuals who straw purchased one of the found firearms. During phone calls that Gasque made while in jail, Gasque spoke directly with Lewis about the false statements that Gasque wanted Lewis to make to law enforcement, including what Lewis was supposed to convey to a federal Grand Jury. Both Regina Gasque and Lewis are co-defendants in this case, and are scheduled to be sentenced later this month.
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 sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of theDistrict Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-135.
Felon Sentenced for Heroin Trafficking, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man still on supervised release from a prior felony conviction was sentenced in federal court today for possessing heroin to distribute and illegally possessing a firearm.
Vernon Deandre Jordan, 34, was sentenced by U.S. District Judge Stephen R. Bough to nine years in federal prison without parole. Today’s sentence includes a two-year term for violating his supervised release in an unrelated case.
On Jan. 31, 2019, Jordan pleaded guilty to possessing heroin to distribute and using a firearm in furtherance of a drug-trafficking crime. Jordan also pleaded guilty to violating the terms of his supervised release by committing those offenses. In that earlier case, Jordan pleaded guilty on Aug. 11, 2015, to being a felon in possession of a firearm and was sentenced to two years in federal prison, followed by two years of supervised release.
Probation officers conducted a search of Jordan’s residence on Nov. 15, 2017, based upon Jordan’s conditions of supervised release. Jordan asked for a coat from his closet, and one of the officers searched the coat before handing it to him. Inside the coat pockets, an officer found a handcuff key, approximately 25.2 grams of heroin, and $888.
Inside the top drawer of a nightstand, officers also found a loaded Glock .45-caliber semi-automatic pistol, a box that contained 47 rounds of 9mm ammunition, and approximately 50 grams of heroin separated into two plastic baggies.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Probation Office and the Boone County, Mo., Sheriff’s Department.
Federal Investigation of Portland Drug Trafficking Organization Reveals Black Market Peso Exchange SchemeRead the Press Release
PORTLAND, Ore.—Esteban Guillen Ramirez, 53, of Guadalajara, Jalisco, Mexico, was sentenced today to one year in federal prison and three years’ supervised release for his role in a complex black market peso exchange money laundering scheme. The scheme was uncovered in 2015 following a lengthy investigation by the U.S. Drug Enforcement Administration (DEA) into a Portland-based heroin trafficking organization.
In February 2015, the DEA executed multiple search warrants throughout the Portland and Vancouver, Washington metropolitan area following a long-term heroin trafficking investigation. Agents arrested over twenty drug trafficking defendants, seized multiple kilos of heroin and seized over $400,000 in bulk cash. At one search location, agents seized evidence of bank deposit slips and deposit instructions, in which heroin traffickers deposited drug proceeds into multiple wholesale businesses in the Los Angeles Fashion District.
Agents began a money laundering investigation. Bank records showed that the majority of cash deposits made by Portland heroin traffickers into the Los Angeles wholesale business bank accounts were systematically structured to avoid detection by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
In November 2015, agents executed 14 federal search warrants in the Los Angeles Fashion District. At four separate wholesale businesses, agents seized financial records identifying Stefano Fashions as the beneficiary of the cash deposits made by the Portland heroin traffickers. Stefano Fashions, owned by Guillen Ramirez, is a successful Guadalajara business engaged in the sale of women’s accessories and cosmetics. Financial investigators found evidence of a high volume of structured cash deposits and large quantities of bulk cash delivered to the wholesale businesses on behalf of Stefano Fashions. While this financial activity was highly unusual for a U.S. wholesale business, it was a telltale sign the Los Angeles Fashion District businesses and Stefano Fashions were participating in a black market peso exchange scheme to launder the drug proceeds of a Mexican drug trafficking organization.
A black market peso exchange is a trade based money laundering scheme commonly used by Mexican drug trafficking organizations to obtain pesos in exchange for U.S. dollars acquired from narcotics sales in the U.S. This complex money laundering scheme involves money derived from the sale of drugs in the United States that is laundered through wholesale business in the Los Angeles Fashion District in order to repatriate the drug proceeds back to Mexican drug trafficking organizations.
In July 2018, federal agents arrested Guillen Ramirez in Las Vegas, Nevada. Guillen Ramirez pleaded guilty to one count of conspiracy to commit money laundering on December 13, 2018. Five Los Angeles wholesale business owners and one former CEO pled guilty to money laundering, tax and structuring related crimes. Each of the business owners that has been sentenced was required to a serve prison term and more than $2 million has been seized, forfeited or applied to restitution.
Following this money laundering investigation, the national bank used by the drug traffickers to deposit proceeds, changed its policy governing third party cash deposits. Prior to this investigation, this national bank allowed third parties to make cash deposits under $10,000 into personal bank accounts without providing identification. The bank now requires individuals making cash deposits into third party accounts to provide identification and be an authorized user of the account.
This case was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), IRS-Criminal Investigation, and the U.S. Marshals Service. The money laundering prosecution was led by Steven T. Mygrant, Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. In 2018, the case was recognized nationally by OCDETF with the Outstanding Investigation Award for the Financial Investigation of an Opioid Network.
OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Federal Indictments and Law Enforcement Actions in One of the Largest Health Care Fraud Schemes Involving Telemedicine and Durable Medical Equipment Marketing Executives Results in Charges Against 24 Individuals Responsible for over $1.2 Billion in LossesRead the Press Release
WASHINGTON – One of the largest health care fraud schemes investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice resulted in charges against 24 defendants, including the CEOs, COOs and others associated with five telemedicine companies, the owners of dozens of durable medical equipment (DME) companies and three licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $1.2 billion in loss, as well as the execution of over 80 search warrants in 17 federal districts. In addition, the Center for Medicare Services, Center for Program Integrity (CMS/CPI) announced today that it took adverse administrative action against 130 DME companies that had submitted over $1.7 billion in claims and were paid over $900 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Sherri A. Lydon of the District of South Carolina, U.S. Attorney Craig Carpenito of the District of New Jersey, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chief Don Fort of the IRS Criminal Investigation (CI) and Deputy Administrator and Director of CPI Alec Alexander of the CMS/CPI made the announcement.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Districts of South Carolina, New Jersey and the Middle District of Florida. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-CI and other federal law enforcement agencies participated in the operation.
The charges announced today target an alleged scheme involving the payment of illegal kickbacks and bribes by DME companies in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for back, shoulder, wrist and knee braces that are medically unnecessary. Certain of the defendants allegedly controlled an international telemarketing network that lured over hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America. The defendants allegedly paid doctors to prescribe DME either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen. The proceeds of the fraudulent scheme were allegedly laundered through international shell corporations and used to purchase exotic automobiles, yachts and luxury real estate in the United States and abroad.
“These defendants — who range from corporate executives to medical professionals — allegedly participated in an expansive and sophisticated fraud to exploit telemedicine technology meant for patients otherwise unable to access health care,” said Assistant Attorney General Benczkowski. “This Department of Justice will not tolerate medical professionals and executives who look to line their pockets by cheating our health care programs. I commend the Criminal Division prosecutors and our partners from U.S. Attorney’s Offices and law enforcement agencies across the country for their unrelenting efforts to stop this alleged fraud before more money was stolen from American taxpayers.”
“Simply put, the law applies equally to all in South Carolina,” said U.S. Attorney Sherri Lydon. “The same spoon that serves indictments on drug dealers, felons in possession of firearms, and corrupt officials will also feed those companies and individuals who engage in Medicare fraud. White collar crime is not victimless. All taxpayers will endure the rising cost of health care premiums and out-of-pocket costs as a result of fraud on our Medicare system. I am honored to stand with our partners at the FBI, HHS-OIG, and IRS-CI, who led this outstanding and nationally significant investigation from right here in South Carolina.”
“The indictments we are unsealing today charge the defendants with running a complex, multilayered scheme to defraud our Medicare system and avoid detection by government regulators,” said U.S. Attorney Craig Carpenito. “The defendants took advantage of unwitting patients who were simply trying to get relief from their health concerns. Instead, the defendants preyed upon their weakened state and pushed millions of dollars’ worth of unnecessary medical devices, which Medicare paid for, and then set up an elaborate system for laundering their ill-gotten proceeds. We are proud to join our law enforcement partners in New Jersey and around the country to put a stop to this unscrupulous criminal activity.”
“Protecting the integrity of America’s health care programs is necessary to ensure that our citizens receive the care they have paid for and deserve,” said U.S. Attorney Chapa Lopez. “The mammoth coordination and cooperation demonstrated among the various offices, districts, and agencies involved in this case leaves no doubt. We will leverage the full weight of our resources to combat fraud and abuse, wherever it is found.”
“Today, one of the largest health care fraud schemes in U.S. history came to an end thanks to close collaboration and coordination between the FBI and partners including HHS-OIG and IRS-CI,” said FBI Assistant Director Robert Johnson. “Health care fraud causes billions of dollars in losses, it deprives real patients of the critical health care services they need, and it can endanger the lives of real patients so individuals like those arrested today can profit from their criminal activity. Through today’s coordinated national effort, we put an end to this egregious and costly health care fraud scheme, and the public can rest assured the FBI will continue to make health care fraud investigations a top priority.”
“Our law enforcement officers are focused on preventing and uprooting health care fraud schemes like those alleged today,” said Deputy Inspector General for Investigations Gary Cantrell. “These schemes divert money from taxpayer-funded federal health care programs into the hands of criminals. Working closely with our law enforcement partners, our agency will continue to investigate and disrupt attempts to undermine Medicare and target beneficiaries.”
“The breadth of this nationwide conspiracy should be frightening to all who rely on some form of healthcare,” said IRS-CI Chief Don Fort. “The conspiracy described in this indictment was not perpetrated by one individual. Rather, it details broad corruption, massive amounts of greed, and systemic flaws in our healthcare system that were exploited by the defendants. We all suffer when schemes like this go undiscovered and I’m proud of the work our agents did in working with our partners to uncover this complex scheme.”
“The Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity (CPI) is proud to work very closely everyday with our law enforcement partners to stop exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and CPI Director Alec Alexander. “In this case CMS has taken swift administrative action and has suspended payments to 130 distinct providers thereby likely preventing billions of additional dollars in losses. CMS remains committed to protecting the millions of beneficiaries we are honored to serve and to preventing fraud of all sorts in the Medicare and Medicaid programs.”
According to allegations in court documents, some of the defendants obtained patients for the scheme by using an international call center that advertised to Medicare beneficiaries and “up-sold” the beneficiaries to get them to accept numerous “free or low-cost” DME braces, regardless of medical necessity. The international call center allegedly paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these Medicare beneficiaries. The telemedicine companies then allegedly paid physicians to write medically unnecessary DME orders. Finally, the international call center sold the DME orders that it obtained from the telemedicine companies to DME companies, which fraudulently billed Medicare. Collectively, the CEOs, COOs, executives, business owners and medical professionals involved in the conspiracy are accused of causing over $1 billion in loss.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Amongst those charged by Strike Force attorneys include:
In the District of New Jersey, charges were brought against Creaghan Harry, 51, of Highland Beach, Florida; Lester Stockett, 51, of Deefield Beach, Florida; and Elliot Loewenstern, 56, of Boca Raton, Florida; the owner, CEO and VP of marketing, respectively, of purported call centers and telemedicine companies, for their alleged participation in a $454 million illegal health care kickback and international money laundering scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. In addition, Joseph DeCoroso, M.D., 62, of Toms River, New Jersey, was charged in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for DME, in many instances without ever speaking to the patients, while working for two telemedicine companies. The cases are being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
In the Middle District of Florida, charges were brought against Willie McNeal, 42, of Spring Hill, Florida, the owner and CEO of two purported telemedicine companies, for his alleged participation in a $250 million scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. The case is being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorneys John Michelich, Catherine Wagner and Sara Clingan.
In the Northern District of Texas, charges were brought against Leah Hagen, 48, and Michael Hagen, 51, of Dalworthington Gardens, Texas, owners and operators of two DME companies, for their alleged participation in a $17 million illegal health care kickback scheme related to the payment of kickbacks in exchange for the referral of medically unnecessary DME orders. The case is being prosecuted by Fraud Section Trial Attorneys Brynn Schiess and Carlos Lopez.
In the Western District of Texas, Christopher O’Hara, 54, of Kingsbury, Texas, the owner of a purported telemedicine company, was charged in an $40 million scheme related to the alleged solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. The case is being prosecuted by Fraud Section Trial Attorney Kevin Lowell.
In the Eastern District of Pennsylvania, Randy Swackhammer, M.D., 60, of Goldsboro, North Carolina, was charged for an alleged $5 million conspiracy to commit health care fraud that involved writing medically unnecessary orders for DME while working for a telemedicine company, in many instances with only a brief telephonic conversation with the patients. The case is being prosecuted by Fraud Section Trial Attorney Adam Yoffie.
In the Central District of California, charges were brought against Darin Flashberg, 41, of Glendora, California, and Najib Jabbour, 47, of Glendora, California, owners of seven DME companies, for their alleged participation in a $34 million scheme related to their payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The case is being prosecuted by Fraud Section Trial Attorney Robyn Pullio.
In addition to the Strike Force prosecutions, other enforcement actions were taken, including the execution of search warrants to support related investigative efforts in seven additional U.S. Attorney’s Offices to include in various investigations conducted by the District of New Jersey, District of South Carolina, Southern District of California, District of Nebraska, Middle District of Florida, Eastern District of Missouri and Western District of Washington.
In the District of South Carolina, charges were brought against Andrew Chmiel, 43, of Mt. Pleasant, South Carolina, owner of over a dozen companies involved in the scheme, for his alleged participation in a $200 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Assistant U.S. Attorneys Jim May and Will Lewis of the District of South Carolina.
In the District of New Jersey, charges were brought against Neal Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 39, of Englishtown, New Jersey, owners of approximately 25 DME companies, for their alleged participation in a $150 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. Albert Davydov, 26, of Rego Park, New York, was also charged for his alleged participation in a $35 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Assistant U.S. Attorneys Brian Urbano and Stephen Ferketic of the District of New Jersey.
In the Middle District of Florida, search and seizure warrants are being executed at 20 different business locations, including numerous DME companies and a fraudulent telemarketing company. The search and seizures are being executed by over 100 law enforcement officers from six federal agencies, including HHS-OIG, FBI, IRS-CI, VA-OIG, SSA-OIG, and USPS-OIG. In addition to the 20 search warrants, millions of dollars and other assets tied to the conspiracy are being seized and/or frozen, including through a civil injunction naming 13 defendants as authorized under 18 U.S.C. § 1345.
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with MFSF teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the District of New Jersey, District of South Carolina, Southern District of California, District of Nebraska, Middle District of Florida, Eastern District of Missouri and Western District of Washington; and agents from the FBI, HHS-OIG, IRS-CI and other federal law enforcement agencies.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Video Doctor USA, AffordADoc, Web Doctors Plus, Integrated Support Plus and First Care MD – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
Additional documents related to this announcement will shortly be available here: https://www.justice.gov/opa/documents-and-resources-april-9-2019-press-release-health-care-fraud.
Federal Indictments & Law Enforcement Actions in One of the Largest Health Care Fraud Schemes Involving Telemedicine and Durable Medical Equipment Marketing Executives Results in Charges Against 24 Individuals Responsible for over $1.2 Billion in LossesRead the Press Release
One of the largest health care fraud schemes investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice resulted in charges against 24 defendants, including the CEOs, COOs and others associated with five telemedicine companies, the owners of dozens of durable medical equipment (DME) companies and three licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $1.2 billion in loss, as well as the execution of over 80 search warrants in 17 federal districts. In addition, the Center for Medicare Services, Center for Program Integrity (CMS/CPI) announced today that it took adverse administrative action against 130 DME companies that had submitted over $1.7 billion in claims and were paid over $900 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Sherri A. Lydon of the District of South Carolina, U.S. Attorney Craig Carpenito of the District of New Jersey, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chief Don Fort of the IRS Criminal Investigation (CI) and Deputy Administrator and Director of CPI Alec Alexander of the CMS/CPI made the announcement.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Districts of South Carolina, New Jersey and the Middle District of Florida. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-CI and other federal law enforcement agencies participated in the operation.
The charges announced today target an alleged scheme involving the payment of illegal kickbacks and bribes by DME companies in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for back, shoulder, wrist and knee braces that are medically unnecessary. Some of the defendants allegedly controlled an international telemarketing network that lured over hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America. The defendants allegedly paid doctors to prescribe DME either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen. The proceeds of the fraudulent scheme were allegedly laundered through international shell corporations and used to purchase exotic automobiles, yachts and luxury real estate in the United States and abroad.
“These defendants — who range from corporate executives to medical professionals — allegedly participated in an expansive and sophisticated fraud to exploit telemedicine technology meant for patients otherwise unable to access health care,” said Assistant Attorney General Benczkowski. “This Department of Justice will not tolerate medical professionals and executives who look to line their pockets by cheating our health care programs. I commend the Criminal Division prosecutors and our partners from U.S. Attorney’s Offices and law enforcement agencies across the country for their unrelenting efforts to stop this alleged fraud before more money was stolen from American taxpayers.”
“Simply put, the law applies equally to all in South Carolina,” said U.S. Attorney Sherri Lydon. “The same spoon that serves indictments on drug dealers, felons in possession of firearms, and corrupt officials will also feed those companies and individuals who engage in Medicare fraud. White collar crime is not victimless. All taxpayers will endure the rising cost of health care premiums and out-of-pocket costs as a result of fraud on our Medicare system. I am honored to stand with our partners at the FBI, HHS-OIG, and IRS-CI, who led this outstanding and nationally significant investigation from right here in South Carolina.”
“The indictments we are unsealing today charge the defendants with running a complex, multilayered scheme to defraud our Medicare system and avoid detection by government regulators,” said U.S. Attorney Craig Carpenito. “The defendants took advantage of unwitting patients who were simply trying to get relief from their health concerns. Instead, the defendants preyed upon their weakened state and pushed millions of dollars’ worth of unnecessary medical devices, which Medicare paid for, and then set up an elaborate system for laundering their ill-gotten proceeds. We are proud to join our law enforcement partners in New Jersey and around the country to put a stop to this unscrupulous criminal activity.”
“Protecting the integrity of America’s health care programs is necessary to ensure that our citizens receive the care they have paid for and deserve,” said U.S. Attorney Chapa Lopez. “The mammoth coordination and cooperation demonstrated among the various offices, districts, and agencies involved in this case leaves no doubt. We will leverage the full weight of our resources to combat fraud and abuse, wherever it is found.”
“Today, one of the largest health care fraud schemes in U.S. history came to an end thanks to close collaboration and coordination between the FBI and partners including HHS-OIG and IRS-CI,” said FBI Assistant Director Robert Johnson. “Health care fraud causes billions of dollars in losses, it deprives real patients of the critical health care services they need, and it can endanger the lives of real patients so individuals like those arrested today can profit from their criminal activity. Through today’s coordinated national effort, we put an end to this egregious and costly health care fraud scheme, and the public can rest assured the FBI will continue to make health care fraud investigations a top priority.”
“Our law enforcement officers are focused on preventing and uprooting health care fraud schemes like those alleged today,” said Deputy Inspector General for Investigations Gary Cantrell. “These schemes divert money from taxpayer-funded federal health care programs into the hands of criminals. Working closely with our law enforcement partners, our agency will continue to investigate and disrupt attempts to undermine Medicare and target beneficiaries.”
“The breadth of this nationwide conspiracy should be frightening to all who rely on some form of healthcare,” said IRS-CI Chief Don Fort. “The conspiracy described in this indictment was not perpetrated by one individual. Rather, it details broad corruption, massive amounts of greed, and systemic flaws in our healthcare system that were exploited by the defendants. We all suffer when schemes like this go undiscovered and I’m proud of the work our agents did in working with our partners to uncover this complex scheme.”
“The Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity (CPI) is proud to work very closely everyday with our law enforcement partners to stop exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and CPI Director Alec Alexander. “In this case CMS has taken swift administrative action and has suspended payments to 130 distinct providers thereby likely preventing billions of additional dollars in losses. CMS remains committed to protecting the millions of beneficiaries we are honored to serve and to preventing fraud of all sorts in the Medicare and Medicaid programs.”
According to allegations in court documents, some of the defendants obtained patients for the scheme by using an international call center that advertised to Medicare beneficiaries and “up-sold” the beneficiaries to get them to accept numerous “free or low-cost” DME braces, regardless of medical necessity. The international call center allegedly paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these Medicare beneficiaries. The telemedicine companies then allegedly paid physicians to write medically unnecessary DME orders. Finally, the international call center sold the DME orders that it obtained from the telemedicine companies to DME companies, which fraudulently billed Medicare. Collectively, the CEOs, COOs, executives, business owners and medical professionals involved in the conspiracy are accused of causing over $1 billion in loss.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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Amongst those charged by Strike Force attorneys include:
In the District of New Jersey, charges were brought against Creaghan Harry, 51, of Highland Beach, Florida; Lester Stockett, 51, of Deefield Beach, Florida; and Elliot Loewenstern, 56, of Boca Raton, Florida; the owner, CEO and VP of marketing, respectively, of purported call centers and telemedicine companies, for their alleged participation in a $424 million illegal health care kickback and international money laundering scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. In addition, Joseph DeCorso, M.D., 62, of Toms River, New Jersey, was charged in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for DME, in many instances without ever speaking to the patients, while working for two telemedicine companies. The cases are being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
In the Middle District of Florida, charges were brought against Willie McNeal, 42, of Spring Hill, Florida, the owner and CEO of two purported telemedicine companies, for his alleged participation in a $250 million scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. The case is being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorneys John Michelich, Catherine Wagner and Sara Clingan.
In the Northern District of Texas, charges were brought against Leah Hagen, 48, and Michael Hagen, 51, of Dalworthington Gardens, Texas, owners and operators of two DME companies, for their alleged participation in a $17 million illegal health care kickback scheme related to the payment of kickbacks in exchange for the referral of medically unnecessary DME orders. The case is being prosecuted by Fraud Section Trial Attorneys Brynn Schiess and Carlos Lopez.
In the Western District of Texas, Christopher O’Hara, 54, of Kingsbury, Texas, the owner of a purported telemedicine company, was charged in an $40 million scheme related to the alleged solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. The case is being prosecuted by Fraud Section Trial Attorney Kevin Lowell.
In the Eastern District of Pennsylvania, Randy Swackhammer, M.D., 60, of Goldsboro, North Carolina, was charged for an alleged $5 million conspiracy to commit health care fraud that involved writing medically unnecessary orders for DME while working for a telemedicine company, in many instances with only a brief telephonic conversation with the patients. The case is being prosecuted by Fraud Section Trial Attorney Adam Yoffie.
In the Central District of California, charges were brought against Darin Flashberg, 41, of Glendora, California, and Najib Jabbour, 47, of Glendora, California, owners of seven DME companies, for their alleged participation in a $34 million scheme related to their payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The case is being prosecuted by Fraud Section Trial Attorney Robyn Pullio.
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In addition to the Strike Force prosecutions, other enforcement actions were taken, including the execution of search warrants to support related investigative efforts in seven additional U.S. Attorney’s Offices to include in various investigations conducted by the District of New Jersey, District of South Carolina, Southern District of California, District of Nebraska, Middle District of Florida, Eastern District of Missouri and Western District of Washington.
In the District of South Carolina, charges were brought against Andrew Chmiel, 43, of Mt. Pleasant, South Carolina, owner of over a dozen companies involved in the scheme, for his alleged participation in a $200 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Assistant U.S. Attorneys Jim May and Will Lewis of the District of South Carolina.
In the District of New Jersey, charges were brought against Neal Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 39, of Englishtown, New Jersey, owners of approximately 25 DME companies, for their alleged participation in a $150 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. Albert Davydov, 26, of Rego Park, New York, was also charged for his alleged participation in a $35 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Assistant U.S. Attorneys Brian Urbano and Stephen Ferketic of the District of New Jersey.
In the Middle District of Florida, search and seizure warrants are being executed at 20 different business locations, including numerous DME companies and a fraudulent telemarketing company. The search and seizures are being executed by over 100 law-enforcement officers from six federal agencies, including HHS-OIG, FBI, IRS-CI, VA-OIG, SSA-OIG, and USPS-OIG. In addition to the 20 search warrants, millions of dollars and other assets tied to the conspiracy are being seized and/or frozen, including through a civil injunction naming 13 defendants as authorized under 18 U.S.C. § 1345.
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with MFSF teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the District of New Jersey, District of South Carolina, Southern District of California, District of Nebraska, Middle District of Florida, Eastern District of Missouri and Western District of Washington; and agents from the FBI, HHS-OIG, IRS-CI and other federal law enforcement agencies.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Video Doctor USA, AffordADoc, Web Doctors Plus, Integrated Support Plus and First Care MD – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
Additional documents related to this announcement will shortly be available here: https://www.justice.gov/opa/documents-and-resources-april-9-2019-press-release-health-care-fraud.
Federal Grand Jury Indicts Sylacauga Man for Attempted Child EnticementRead the Press Release
BIRMINGHAM - A federal grand jury in March indicted a Sylacauga man for attempted coercion and enticement of a minor announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
JERRY WAYNE HAMILTON, 49, is charged in an indictment filed in the U.S. District Court with attempting to coerce and entice an alleged 15 year old girl to meet him for sexual acts. When Hamilton drove to meet the minor child for a sexual encounter, he was instead met by law enforcement.
“Our office along with our federal and state law enforcement partners stand committed to see child predators brought to justice,” Town said. “The tolerance for those who prey on innocent children is none.”
The penalty for attempted coercion and enticement of a minor is 10 years to life in prison.
FBI Birmingham Division Child Exploitation Task Force along with Mountain Brook Police Department investigated the case. Assistant U.S. Attorney R. Leann White is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts Birmingham College Student on Child Pornography ChargesRead the Press Release
BIRMINGHAM - A federal grand jury in March indicted a Birmingham college student for Advertisement, Sale, and Possession of Child Pornography announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
A five-count indictment filed in the U.S. District Court, charges DAVID DRAKE, 19, with advertising child pornography on the internet and selling those images and videos on the internet. Drake is charged with 1-count of advertisement of child pornography and 2-counts of sale of child pornography. Drake is also charged with 2 counts of possession of child pornography.
“Our law enforcement will continue to vigilantly monitor the internet using all available resources available to uncover child exploitation and abuse,” Town said. “These predators need to know that they will be arrested, prosecuted and once convicted, sentenced to time in a federal prison where there is no possibility for parole.”
The maximum penalty for advertisement of child pornography is a maximum of 30 years in prison.
The maximum penalty for the sale of child pornography is 20 years in prison.
The maximum penalty for possession of child pornography is 20 years in prison since the collection of images and videos include children under the age of 12 years.
FBI Birmingham Division Child Exploitation Task Force along with ALEA investigated the case. Assistant U.S. Attorney R. Leann White is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Father of a Huntsville Elementary School Shooting Victim SentencedRead the Press Release
BIRMINGHAM – A federal judge on Monday sentenced the father of a Huntsville elementary school shooting victim, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Karen O. Bowdre sentenced LETROY COLE, JR, 41 to 26 months in prison and three years of supervised release.
Letroy Cole Jr., 41, pled guilty in November to the federal charge of being a convicted felon in possession of firearm. Cole possessed a Kel Tec model P-32 .32-caliber semi-automatic pistol. Cole’s son, a second-grader, found the gun hidden in their home and took it to school to show it to a friend. On September 17, 2018, the second-grader accidently shot himself while showing it to a friend, in a restroom at Blossomwood Elementary school.
“Felons in unlawful possession of firearms are not only a threat to all of us when those weapons are illegally in their hands, but made worse when those weapons get into the hands of children”, Town said. “A child was shot and injured with the handgun that Cole illegally possessed. This situation could have been much worse. We are thankful for the efforts of the Madison County District Attorney, Huntsville Police Department, and the ATF in once again assuring the public with this federal prosecution that illegal gun crimes are taken seriously.”
“ATF Crime Gun Intelligence Centers are the driving force to reduce the potential for violent crime and disrupting the shooting cycle that plagues our neighborhoods, to include firearms recovered in the school systems.” Watson said.
ATF investigated the case, in partnership with the Huntsville Police Department and the Madison County District Attorney’s Office. Assistant U.S. Attorney Robert J. Becher Sr. prosecuted the case.
Fayetteville Resident Sentenced to 15 Years in Prison for Methamphetamine Trafficking in Northwest ArkansasRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas; announced that on yesterday Martin Castillo-Tovar of Mexico, who was residing in Fayetteville, Arkansas, was sentenced to 15 years in the United States Bureau of Prisons for trafficking methamphetamine in Fayetteville, Arkansas. Additionally, Castillo-Tovar was ordered to pay $2,000 in fines and associated court fees and to be supervised by the United States Probation Office for five years after release from prison. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville today.
According to court records, Castillo-Tovar was charged by Indictment on September 12, 2018 with six counts of drug-trafficking related charges, including the distribution of methamphetamine and possessing additional methamphetamine with the intent to later distribute it. Castillo-Tovar was convicted on December 12, 2018 of selling 55.8 grams of methamphetamine to a DEA informant on June 14, 2018. Cumulatively, the DEA’s investigation into Castillo-Tovar resulted in the seizure of over a pound of methamphetamine and a shotgun with an illegally-modified barrel.
This prosecution was part of the Western District of Arkansas’ “Operation Ozark Express,” which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This OCDETF case was investigated by the Drug Enforcement Administration in Fayetteville, Arkansas and the Fayetteville Police Department. Assistant United States Attorney Brandon Carter prosecuted the case for the Western District of Arkansas.
East Bay Drug Traffickers Sentenced to 15 Years and 10 Years in PrisonRead the Press Release
OAKLAND – Michael Vicochea was sentenced to 15 years in prison, and Christian Vanleer was sentenced to 10 years in prison, for their respective roles in a drug distribution conspiracy and related crimes, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Chris Nielsen. The sentences were handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Vicochea, 26, of Tracy, Calif., pleaded guilty on August 20, 2018, to drug trafficking, weapons, and money laundering charges. According to his plea agreement, Vicochea conspired with co-defendant Oscar Escalante and others to distribute heroin and multiple pounds of methamphetamine. For example, Vicochea admitted that in July and August of 2016, Escalante supplied him with methamphetamine. On August 24, 2016, Vicochea’s nephew, Christian Vanleer, 26, of Oakland, possessed a pound of the drugs that Vicochea acknowledged he was responsible for selling. Vicochea also was responsible for giving to Escalante part of the proceeds of the sales after the drugs were sold. Vicochea also admitted that beginning in September 2014, he operated an indoor marijuana grow at his house that resulted in about 80 plants per harvest every 60-72 days. In addition, Vicochea admitted he assisted with the operations of other grow houses operated by his co-defendants and that he distributed marijuana from the operations in Alabama, Georgia, Tennessee, and Florida.
With respect to the firearms charges, Vicochea admitted he possessed a red Sig Sauer P220 pistol in furtherance of the drug trafficking crimes. He acknowledged that he possessed the firearm in order to protect himself and the marijuana grow at his house.
Further, Vicochea admitted he helped Escalante launder proceeds of the drug distribution. For example, in December of 2015, he deposited $46,100 in cash to accounts controlled by Escalante. To evade reporting requirements and to conceal that the funds were the proceeds of drug trafficking, Vicochea made deposits in amounts of $9,000 or less and at multiple bank branches in Tuscaloosa, Ala. Vicochea acknowledged depositing more than $165,000 into various bank accounts in furtherance of the money laundering scheme.
On December 15, 2016, a federal grand jury returned a Superseding Indictment charging Vicochea with the following crimes: conspiracy to manufacture, distribute and possess with intent to distribute 100 or more marijuana plants, in violation of 21 U.S.C. § 846; conspiracy to manufacture, distribute and possess with intent to distribute 100 grams or more of heroin and 50 grams or more of methamphetamine, in violation of 21 U.S.C. § 846; possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c); conspiracy to launder drug proceeds, in violation of 18 U.S.C. § 1956(h); possession and transfer of a machine gun, in violation of 18 U.S.C. § 922(o); distribution and possession with intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. § 841(a)(1); and money laundering by concealment, in violation of 18 U.S.C. § 1956(a)(1). Vicochea pleaded guilty to four counts and the remaining counts were dismissed.
Vanleer pleaded guilty to his role in the conspiracy on November 19, 2018, pursuant to a two-count Superseding Information, alleging conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, and 50 grams or more of a mixture or substance containing methamphetamine, in violation of 21 U.S.C. § 846; and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c).
According to his plea agreement, as early as December 2, 2015, and until August 24, 2016, Vanleer conspired with his codefendants to distribute cocaine, heroin, alprazolam, and methamphetamine. His role was to engage in street-level sales, take his share of the proceeds, and transmit the remainder of the proceeds to his co-conspirators. On August 24, 2016, law enforcement officers seized a pound of methamphetamine from a backpack Vanleer was carrying. Vanleer acknowledged that he had allowed Vicochea to store the methamphetamine at Vanleer’s apartment in Oakland. Vanleer further admitted that, along with the methamphetamine, he had a pistol in the backpack to protect himself and the drugs.
In addition to the prison terms, Judge Gilliam also ordered Vicochea and Vanleer to serve 5 years and 4 years of supervised release, respectively. Vanleer was ordered to pay a fine of $25,100 representing money paid to him by an undercover officer during controlled buy operations in 2016.
In addition to Vicochea and Vanleer, Judge Gilliam has sentenced the following defendants in connection with the conspiracy:
Defendant
Age
Charges
Sentence of Imprisonment
Oscar Escalante
43
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)—Heroin and Methamphetamine Trafficking Conspiracy; 18 U.S.C. § 924(c) – Possession of a Firearm in Furtherance of Drug Trafficking; 18 U.S.C. § 1956(h) – Money Laundering Conspiracy
235 months
David Vigil
46
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A) – Heroin and Methamphetamine Trafficking Conspiracy
121 months
Phillip Jiunti
43
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; supervised release violation in separate 18 U.S.C. § 922(g)(1) – Felon in Possession of Firearm case
70 months
Daniel Medina
25
21 U.S.C. §§ 841(a)(1), (b)(1)(C) – Distribution of Heroin; 18 U.S.C. § 924(c) – Possession of a Firearm in Furtherance of Drug Trafficking
66 months
Oswaldo Escalante
46
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; 18 U.S.C. § 1956(h) – Money Laundering Conspiracy
65 months
Jorge Gomez
39
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy
60 months
Ignacio Gonzalez
31
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(C) – Marijuana Trafficking Conspiracy; 18 U.S.C. § 924(c) – Possession of a Firearm in Furtherance of Drug Trafficking
60 months
Adan Gonzalez
47
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy
60 months
James Hinkle
38
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy
12 months, 1 day
Claudia Munoz
37
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Marijuana Trafficking Conspiracy; 18 U.S.C. § 1956(h) – Money Laundering Conspiracy
Time served, 3 years supervised release
Melina Escalante
40
18 U.S.C. § 1956(h) – Money Laundering Conspiracy
Time served, 3 years supervised release
Assistant U.S. Attorneys Frank Riebli and Katherine Wawrzyniak are prosecuting the case with the assistance of Rebecca Shelton. The prosecution is the result of an investigation by the DEA. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Crawford County Man Charged with Illegally Possessing MachinegunsRead the Press Release
ERIE, Pa. - A resident of Cochranton, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The two-count indictment named Theodore D. Brown, 60, as the sole defendant.
According to the indictment presented to the court, on March 22, 2019, Brown possessed machineguns which are unlawful to own and were not registered to him in the National Firearms Registration and Transfer Record.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing 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.
The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Colombian Pleads Guilty in Robbery of $500K in Gems and Jewelry from Traveling Salesman in Pittsburgh’s North HillsRead the Press Release
PITTSBURGH - A resident of Bogota, Colombia, pleaded guilty in federal court to a charge of conspiracy to violate federal robbery laws. The announcement was made by United States Attorney Scott W. Brady, FBI Special Agent in Charge Robert Jones, and Chief Robert T. Amann of the Northern Regional Police Department.
Oscar Javier Rodriguez Roa, 36, of Bogota, Colombia, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that Roa was a member of an organized South American theft ring that targeted traveling jewelry salespersons in the United States and elsewhere. On May 5, 2013, Roa and his accomplices drove from Lawrenceville, Georgia to Western Pennsylvania in a rented car to set up the heist. On May 8, 2013, in Wexford, Pennsylvania, Roa and his three accomplices accosted a traveling jewelry salesman from New York City as the salesman exited his car in the parking lot of a Wexford jewelry store. Roa smashed the rear driver’s side window of the salesman’s car, reached inside the car, and stole a black shoulder bag containing approximately $500,000 worth of gemstones and jewelry while the other robbers punctured the rear driver’s side tire of the salesman’s car, kept an eye on the salesman, and drove the Nissan Maxima getaway car. Prior to the robbery, the accomplices obscured the Maxima’s license plate using a vanity plate. Witnesses to the robbery followed the Nissan Maxima to a church parking lot. After realizing they had been followed, Roa and his accomplices drove to nearby muffler shop where they abandoned the Nissan Maxima and fled on foot to a nearby CVS pharmacy. CVS pharmacy video surveillance, obtained by law enforcement, showed Oscar Javier Rodriguez Roa and one accomplice entering the store while the two remaining accomplices waited outside. Roa was seen talking on a cell phone as he entered the store, while Roa’s accomplice was seen carrying the black shoulder bag containing the gemstones and jewelry. Forensic analysis revealed Roa’s fingerprints on the front passenger door of the Nissan Maxima and on a video game console found in the trunk of the car. Flight records showed that Roa, who is not a citizen of the United States, fled the United States on May 16, 2013, by boarding a flight in Houston, Texas destined for Bogota, Colombia.
"Thanks to the excellent police work of the Northern Regional Police Department, the FBI and the tenacious efforts of the United States Department of Justice’s Office of International Affairs, this international criminal has been brought to justice," said U.S. Attorney Scott W. Brady. "This prosecution should send a message to would-be international criminals, if you commit crimes against Americans, we will find you and you will be brought to answer for your actions in the United States."
Judge Ambrose scheduled sentencing for August 12, 2019 at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle and Trial Attorney Leshia Lee Dixon of the Criminal Division’s Organized Crime and Gang Section are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Northern Regional Police Department conducted the investigation that led to the prosecution of Oscar Javier Rodriguez Roa. The Justice Department’s Office of International Affairs provided significant assistance with Roa’s extradition from Colombia to Pittsburgh.
Charleston Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Charleston man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Michael Pittman, 38, entered a guilty plea to an indictment charging him with possession with intent to distribute methamphetamine and heroin.
“Meth and heroin,” said United States Attorney Mike Stuart. “What else needs said?”
On October 9, 2018, officers with the Huntington Police Department were dispatched to the intersection of 18th Street West and Jefferson Avenue for a report of a man down. When they arrived on scene, they found Pittman laying in the middle of the road with no shirt or shoes on. Pittman told officers he had just injected heroin. Officers found approximately 53 grams of methamphetamine and approximately 9 grams of heroin in Pittman’s truck. Pittman admitted he intended to sell the methamphetamine and heroin.
Pittman faces up to twenty years in federal prison when he is sentenced on July 29, 2019.
The Huntington Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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