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Thursday 4 April 2019
United States Attorney’s Office Supports Advocacy Day for Access and IndependenceRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that, in its continued efforts to support the commitments in the Americans with Disabilities Act (ADA), the U.S. Attorney’s Office participated in Advocacy Day for Access and Independence 2019.
This annual event was led by Able SC, which is a Center for Independent Living organization, whose mission includes empowering people with disabilities to live active and self-determined lives. There were several speakers on the State House grounds for today’s event including members of the SC General Assembly, various South Carolina departments, disability advocates, non-profit entities, and members of the disability community. Support groups from around the state participated and hundreds of people attended the event.
First Assistant United States Attorney Lance Crick provided remarks on behalf of the U.S. Attorney’s Office. In South Carolina, the U.S. Attorney’s Office and Department of Justice have conducted several reviews of local and state governmental ADA compliance since 1994, resulting in several agreements with all levels of local government. Crick said that these ADA reviews in South Carolina have generally been positive and most governmental entities have responded cooperatively. He further noted that the majority of officials are aware of their ADA obligations and have made progress in meeting them.
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United States Attorney Mike Stuart and Law Enforcement Officials Including the FBI and the West Virginia State Police Announce Results of Efforts to Fight Child ExploitationRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart, joined by FBI Assistant Special Agent in Charge Nick Boshears, Pittsburgh Field Office, FBI Assistant Section Chief Brian Herrick, Violent Crimes Against Children, and West Virginia State Police Sergeant James Kozik, Internet Crimes Against Children (ICAC) Task Force, announced the results of multiple investigations regarding child exploitation in the Southern District of West Virginia (SDWV) through the West Virginia Child Exploitation and Human Trafficking Task Force. The task force provides resources to identify, investigate and prosecute individuals who exploit our children for sex, child pornography and human trafficking. The task force partners in the Southern District of West Virginia are: West Virginia State Police, Parkersburg Police Department, Raleigh County Sheriff’s Office and Kanawha County Sheriff’s Office.
“Protecting our children from exploitation and violence is a priority for me and my office,” said United States Attorney Mike Stuart. “Although due to the nature of these cases, we don’t often ‘advertise’ our work, you can rest assured we have been aggressively engaged 24 hours a day, 7 days a week to do all we can to protect our children from predators and monsters that prey on our children’s innocence, vulnerabilities and trust. Child exploitation is an epidemic in America today and West Virginia is not immune from the predators that prey on our children.”
"It’s not enough to just identify the crimes against children anymore, we have to work to prevent exploitation," said Special Agent in Charge Robert Jones. "Having a dedicated task force with our law enforcement partners to address these issues in West Virginia gives us more resources to identify, investigate and arrest online predators. The FBI will continue to pursue these vicious criminals to protect our children."
Over the past 6 months, the task force has made 19 arrests, executed 27 search warrants, had 10 indictments including three pending and 9 convictions in specific proactive efforts in the Southern District of West Virginia.
In addition to the multiple investigations involving the task force, the United States Attorney’s Office, SDWV, has prosecuted nearly a dozen additional cases related to child exploitation and internet pornography.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Two Oregon Tribes Receive Justice Department Grant Supporting Native American Crime VictimsRead the Press Release
WASHINGTON— The Office of Justice Programs’ Office for Victims of Crime today awarded more than $8 million to support crime victims in Native American communities in six states: Alaska, California, Maine, Oregon, Washington and Wisconsin. The group of 13 awards is the third in a series of grants being made by OVC to American Indian and Alaska Native communities. OVC has now awarded more than $17 million of nearly $100 million to support tribal victim service programs.
The awards—30 in total so far—will fund critical crime victim services, such as counseling, transitional housing, emergency services and transportation. The grants are supported by the Crime Victims Fund, a repository of federal criminal fines, fees and special assessments. The fund includes zero tax dollars.
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said OJP’s Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
“One of our priorities in the District of Oregon is our unwavering commitment to members of tribal communities. Our office stands firmly on the side of tribal victims and will continue to work tirelessly pursuing justice on their behalf,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The Justice Department’s tribal grant programs ensure all tribes have the resources necessary to support victims and keep their communities safe.”
According to OJP’S Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crime at rates far greater than the general population.
Two Oregon tribes were among the 13 receiving grant awards today. Nearly 170 tribes are expected to receive funding this spring to help their communities support crime victims over the next three years:
- The Klamath Tribes of Oregon (Oregon) was awarded $396,793 to enhance existing services and outreach to victims of domestic violence, sexual assault, stalking, sex trafficking, and dating violence.
- The Cow Creek Band of Umpqua Tribe of Indians (Oregon) was awarded $714,783 to offer longer term transitional housing to provide stability for families and individuals while they receive restorative services.
- Aroostook Band of Micmacs (Maine) was awarded $569,086 to expand the existing victim services program by providing 24/7 staffing of the emergency shelter.
- Bad River Band of Lake Superior Tribe of Chippewa Indians (Wisconsin) was awarded $699,925 to create a central location for the victim services program, currently located in multiple locations on the reservation, and expand their crime victim services to include children and elders.
- The Jamestown S'Klallam Tribe (Washington) was awarded $369,176 to establish a satellite Children’s Advocacy Center at the Jamestown Tribe to increase accessibility to culturally relevant services; state-of-the-art recording equipment; and skilled, trained forensic interviewers.
- The Scotts Valley Band of Pomo Indians (California) was awarded $546,586 to build a culturally relevant, long-term strategic plan to improve services to victims; and develop programming around the concept of historical intergenerational trauma therapy using a practice-based curriculum.
- The Karuk Tribe (California) was awarded $719,970 to improve access to, and delivery of, services to victims of crime by establishing a Victim Services Access Center, which will include secure space for a victim interview room and a private waiting area for victims.
- The Bishop Paiute Tribe (California) was awarded $715,750 to enhance services provided through Relief After Violent Encounters by expanding the victim service program to include direct emergency supportive services.
- The Central Council Tlingit & Haida Indian Tribes of Alaska (Alaska) was awarded $1,413,000 to implement a culturally appropriate response to address elder abuse and provide crime victim services for the Native older adult population within the Juneau urban area, and also serve victims in the villages.
- The Puyallup Tribe of Indians (Washington) was awarded $407,448 to expand existing services by strengthening their continuum of care for homeless victims of crime and for victims with alcohol and substance abuse issues. Funding will also support culturally appropriate inpatient treatment services at a local or regional treatment center.
- The Big Valley Rancheria Band of Pomo Indians (California) was awarded $670,443 to conduct a community needs assessment and develop a strategic plan to help inform the implementation of crisis intervention services for men, boys, and elders who are victims of crime. The tribe will also improve case management, incorporate healing and cultural practices into their victim advocacy services, and expand community outreach and education to help connect victims to vital resources.
- The Tetlin Tribal Council (Alaska) was awarded $513,865 to conduct a community needs assessment and create a strategic plan that will guide the development, implementation, and expansion of victim services.
- The Aleut Community of St. Paul Island Tribal Government (Alaska) was awarded $562,200 to expand existing services and develop additional services for victims of crime through strategic planning and enhanced training of program staff.
“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
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.
Two Additional Kingsmen Motorcycle Club Members Sentenced for RICO ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - James P. Kennedy, Jr. today that announced today that two more members of the Kingsmen Motorcycle Club (KMC), who were convicted of RICO conspiracy, were sentenced by U.S. District Judge Elizabeth A. Wolford. Thomas Koszuta was sentenced to serve 57 months in prison, and Robert Osborne was sentenced to time served and three years supervised release.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who are handling the case, stated that the defendants admitted to being a member of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such crimes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence.
Defendant Koszuta further admitted that the Kingsmen operated by a strict chain of command serving under the direction of Kingsmen National President, David Pirk. On June 7, 2013, KMC forcibly shut down the Springville Chapter and strip members of their colors because they were non-compliant members. While others possessed firearms, the defendant struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug which contained blood. Also, on August 3, 2013, the defendant and other Kingsmen members conducted a drive-by shooting targeting former Springville Kingsmen members. Two shots were fired from a shotgun, one of which struck a vehicle parked near one of the targeted victims.
Defendant Osborne was at various times a KMC Olean Chapter President, Vice President, and regular full-patch KMC member. In September 2014, he erased video footage that showed member Andre Jenkins inside the Olean Chapter clubhouse both days before and after Jenkins murdered KMC members Paul Maue and Daniel "DJ" Szymanski behind the North Tonawanda Chapter clubhouse on September 6, 2014.
In December 2014, Osborne and Emmett Green assaulted a fellow KMC member by punching the victim repeatedly for violating KMC rules by stealing money from the Olean Chapter clubhouse.
A total of 16 defendants were charged and convicted in this case, including KMC National President David Pirk and Andrew Jenkins who were each sentenced to serve multiple terms of life in prison.
Today’s sentencings are the culmination of an investigation led by the FBI’s Safe Streets Task Force. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the North Tonawanda Police Department; the Niagara County Sheriff’s Office; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier
Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department.
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Turtle Creek Felon Sentenced to 4+ Years in Prison on Firearms ChargesRead the Press Release
PITTSBURGH, PA – A resident of Turtle Creek, Pennsylvania, was sentenced to four years and three months (51 months) of imprisonment and three years of supervised release in federal court for two charges of possession of a firearm or ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
Iklas Richard Davis, 38, was sentenced by United States District Judge Nora Barry Fischer.
In November of last years, Davis pleaded guilty after three days of trial and after the government rested its case. In connection with the trial and guilty pleas, the court was advised that, on or about July 27, 2016 and October 12, 2017, Davis, who has a prior felony conviction in Pennsylvania, knowingly possessed several firearms and ammunition. Law enforcement officers discovered the firearms and ammunition during the execution of a search warrant of Davis’s home and vehicle in 2016. One of the firearms was an AR-15 assault rifle engraved with the phrase "Let it Rain" and included graphics of skulls. Some of the ammunition were forty rounds contained in an extended magazine compatible with the AR-15. Davis shared that home with Quinyahta Rochelle, who has pleaded guilty to celebrity hacking, identity theft and firearms offenses.
After the 2016 search warrant, Davis was charged by Wilkins Township Police Department and released on bond. However, United States Secret Service agents, working with the Allegheny County Police, subsequently developed evidence that Rochelle and Davis were engaged in various identity-theft related activities. Thus, Rochelle and Davis were both federally indicted for firearms-related offenses based on the 2016 search warrant, and law enforcement executed both the arrest warrants, which were for firearms-related offenses based on the 2016 search warrant, and new search warrants seeking evidence of identity-theft related offenses, on October 12, 2017. During that search, agents recovered another loaded firearm in the master bedroom closet, along with numerous rounds of ammunition and a bulletproof vest. Davis admitted to possessing that firearm, and he was federally indicted a second time for being a Felon in Possession of a Firearm. The two firearm cases – one based on the 2016 search warrant and the other based on the 2017 search warrant – were consolidated for trial, which began on November 5, 2018.
Assistant United States Attorneys Brendan T. Conway and Nicole Vasquez Schmitt are prosecuting this case on behalf of the government.
The United States Secret Service, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Police Department, and the Wilkins Township Police Department conducted the investigation that led to the prosecution of Davis.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Three Pharmaceutical Companies Agree to Pay a Total of over $122 Million to Resolve Allegations that they Paid Kickbacks Through Co-Pay Assistance FoundationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that three pharmaceutical companies –Jazz Pharmaceuticals plc (Jazz), Lundbeck LLC (Lundbeck), and Alexion Pharmaceuticals, Inc. – have agreed to pay a total of $122.6 million to resolve allegations that they violated the False Claims Act by paying kickbacks to Medicare and Civilian Health and Medical Program (ChampVA) patients through purportedly independent charitable foundations.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, co-pays). Similarly, under ChampVA, patients may be required to pay a co-pay for medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can set for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare or VA patients to purchase the companies’ drugs.
“We are committed to ensuring that pharmaceutical companies do not use third-party foundations to pay kickbacks masking the high prices those companies charge for their drugs,” said United States Attorney Andrew E. Lelling. “This misconduct is widespread, and enforcement will continue until pharmaceutical companies stop circumventing the anti-kickback laws to artificially bolster high drug prices, all at the expense of American taxpayers.”
“Pharmaceutical companies undercut a key safeguard against rising drug costs when they create assistance funds to serve as conduits for the companies to subsidize the copays of their own drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“These settlements demonstrate the FBI’s commitment to safeguarding the Medicare program and ensuring that patients receive treatment solely based on their medical needs,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Not only did these companies undermine a program that was set up to assist patients in decreasing the cost of their drugs, but they threatened the financial integrity of the Medicare program to which we all contribute and on which we all depend.”
“Kickback schemes undermine the integrity our nation’s healthcare system, including healthcare benefits administered by the U.S. Department of Veterans Affairs,” said Special Agent-in-Charge Sean Smith, VA Office of Inspector General, Northeast Field Office. “The VA Office of Inspector General, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts to uncover these schemes.”
The government’s allegations in the three settlements announced today are as follows:
Jazz. Jazz sells Xyrem, a treatment for narcolepsy, and Prialt, a non-opioid treatment for management of severe chronic pain. The government alleges that, in 2011, Jazz asked a foundation to create a fund that would cover the co-pays of Xyrem patients. The foundation then created a fund that would ostensibly cover the co-pays of patients taking any narcolepsy drug, but that, through May 2014, almost exclusively assisted patients taking Xyrem. During this period, Jazz raised the price of Xyrem at over 24 times the rate of overall inflation in the United States. The government further alleges that Jazz asked the same foundation to create a fund that would purportedly cover the co-pays of patients taking any drug for severe chronic pain, but that, through May 2014, almost exclusively assisted patients taking Prialt. The foundation told Jazz that, when severe chronic pain patients seeking assistance with drugs other than Prialt contacted the foundation, the foundation would refer them elsewhere. Furthermore, as Jazz knew, the foundation did not advertise the severe chronic pain fund on its website, so that Jazz itself was the principal source referrals to the fund. Jazz has agreed to pay $57 million to resolve the government’s allegations.
Lundbeck. Lundbeck sells Xenaxine, a treatment for chorea associated with Huntington’s Disease. The government alleges that, beginning in 2011, Lundbeck donated millions of dollars to a foundation’s fund that, ostensibly, covered the co-pays of patients with Huntington’s Disease, but that, in fact, simply covered the co-pays of patients taking Xenazine, regardless of the condition the drug was being used to treat. After May 2014, when HHS-OIG published a document entitled “Supplemental Special Advisory Bulletin: Independent Charity Assistance Programs,” Lundbeck and the foundation agreed that the foundation would continue to pay the Xenazine co-pays for non-Huntington’s Disease patients out of a “general fund” that the foundation would use for this purpose. When Lundbeck asked the foundation whether there was a “risk” that HHS-OIG would not view this practice as compliant, the foundation replied, “[t]hey don’t know what we use the general fund for.” This conduct continued through 2016. During the period of the alleged misconduct, Lundbeck raised the price of Xenazine at over 22 times the rate of overall inflation in the United States. Lundbeck has agreed to pay $52.6 million to resolve the government’s allegations.
Jazz and Lundbeck each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
“These kickback schemes harm Medicare and the public,” said Gregory E. Demske, Chief Counsel to the Inspector General. “OIG CIAs, such as those with Jazz and Lundbeck, are designed to reduce future risks to patients and taxpayer-funded programs. OIG decided not to require a CIA with Alexion because it made sweeping and fundamental organizational changes following the bad conduct. The changes included hiring a new eight-member executive leadership team and changing half of the members of its Board of Directors. In addition, forty percent of Alexion’s employees are new and the company relocated its corporate headquarters.”
Alexion. Alexion sells Soliris, a drug that is approved to treat patients with paroxysmal nocturnal hemoglobinuria (PNH) and to treat patients with atypical hemolytic uremic syndrome (aHUS). Soliris can cost over $500,000 per year. Alexion allegedly knew that the price it set for Soliris could pose a financial burden to patients. In January 2010, the government alleges, Alexion requested that a foundation create a “Complement-Mediated Disease” (“CMD”) fund. Over the next several months, Alexion and the foundation allegedly discussed the coverage parameters that Alexion desired for the fund, including Alexion’s desire that the fund “not support a patient with any of these [CMD] diagnoses for other reasons tha[n] Soliris therapy.” The government alleges that, after the fund opened, Alexion—the sole donor to the fund—understood that the fund’s provision of financial assistance to a patient was contingent on the patient taking Soliris. Alexion allegedly noted internally that it needed to be diligent in notifying the foundation if a patient had stopped taking Soliris so that Alexion’s donations would not be used on patients who were not starting or maintaining Soliris therapy. Alexion has agreed to pay $13 million to resolve the government’s allegations.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG Chief Counsel Demske, FBI SAC Bonavolonta, and VA OIG SAC Sean Smith made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Abraham George, of Lelling’s Affirmative Civil Enforcement Unit, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Three Pharmaceutical Companies Agree to Pay a Total of over $122 Million to Resolve Allegations That They Paid Kickbacks Through Co-Pay Assistance FoundationsRead the Press Release
The Department of Justice today announced that three pharmaceutical companies – Jazz Pharmaceuticals plc (Jazz), Lundbeck LLC (Lundbeck), and Alexion Pharmaceuticals Inc. (Alexion) – have agreed to pay a total of $122.6 million to resolve allegations that they each violated the False Claims Act by illegally paying the Medicare or Civilian Health and Medical Program (ChampVA) copays for their own products, through purportedly independent foundations that the companies used as mere conduits.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Similarly, under ChampVA, patients may be required to pay a copay for medications. Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce Medicare or ChampVA patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
“Pharmaceutical companies undercut a key safeguard against rising drug costs when they create assistance funds to serve as conduits for the companies to subsidize the copays of their own drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“We are committed to ensuring that pharmaceutical companies do not use third-party foundations to pay kickbacks masking the high prices those companies charge for their drugs,” said U.S. Attorney Andrew E. Lelling. “This misconduct is widespread, and enforcement will continue until pharmaceutical companies stop circumventing the anti-kickback laws to artificially bolster high drug prices, all at the expense of American taxpayers.”
Jazz and Lundbeck each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
“These kickback schemes harm Medicare and the public,” said Gregory E. Demske, Chief Counsel to the Inspector General. “OIG CIAs, such as those with Jazz and Lundbeck, are designed to reduce future risks to patients and taxpayer-funded programs. OIG decided not to require a CIA with Alexion because it made sweeping and fundamental organizational changes following the bad conduct. The changes included hiring a new eight-member executive leadership team and changing half of the members of its Board of Directors. In addition, 40 percent of Alexion’s employees are new and the company relocated its corporate headquarters.”
“These settlements demonstrate the FBI’s commitment to safeguard the Medicare program and ensure that patients receive treatment solely based on their medical needs,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Not only did these companies undermine a program that was set up to assist patients in decreasing the cost of their drugs, but they threatened the financial integrity of the Medicare program to which we all contribute and on which we all depend.”
“Kickback schemes undermine the integrity our nation’s healthcare system, including healthcare benefits administered by the U.S. Department of Veterans Affairs,” said Special Agent-in-Charge Sean Smith, VA Office of Inspector General, Northeast Field Office. “The VA Office of Inspector General, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts to uncover these schemes.”
The government’s allegations in the three settlements being announced today are as follows:
Jazz: Jazz sells Xyrem, a narcolepsy medication with Gamma Hydroxybutyrate (GHB)—a central nervous system depressant and controlled substance—as its main active ingredient. The government alleged that, in 2011, Jazz asked a foundation to create a fund that would pay the copays of Xyrem Medicare patients and that the foundation agreed to establish a “Narcolepsy Fund,” to which Jazz became the sole donor. The government alleged that Jazz knew that, although Xyrem accounted for a small share of the overall narcolepsy market, the fund almost exclusively used Jazz’s donations to pay copays for Xyrem and required non-Xyrem patients on competing products to obtain a denial letter from another assistance plan before helping them. The government further alleged that, in conjunction with establishing this fund, Jazz made Medicare patients ineligible for Jazz’s free drug program and instead referred Xyrem Medicare patients to the foundation, enabling Jazz to generate revenue from Medicare and induce purchases of the drug, rather than continuing to provide these patients with free drugs. Meanwhile, Jazz raised the price of Xyrem by over 150 percent from 2011 through the end of the relevant time period.
Jazz also sold Prialt, an injectable severe chronic pain medication. The government alleged that Jazz asked the same foundation to create a fund ostensibly to assist patients with the co-pays of any severe chronic pain drugs, but which, in practice, almost exclusively paid Prialt Medicare copays. Shortly after creating the fund, the foundation allegedly told Jazz that when severe chronic pain patients seeking assistance with other drugs contacted the foundation, it would refer them elsewhere. The government alleged that Jazz was also aware that the fund did not appear on the foundation’s website, thereby minimizing the number of non-Prialt patients seeking assistance from the fund. Jazz has agreed to pay $57 million to resolve the government’s allegations.
Lundbeck: Lundbeck sells Xenazine, the only drug that was approved to treat chorea associated with Huntington’s disease until a generic version became available until 2015. The government alleged that Lundbeck was the sole donor and made millions in payments to a fund at a foundation that ostensibly provided financial support only for patients with Huntington’s Disease. However, Lundbeck allegedly referred Xenazine patients with many other conditions to this foundation, which then paid the Xenazine copays for these unapproved uses from its Huntington’s Disease fund. The government further alleged that, in June 2014, after the foundation determined that its Huntington’s Disease fund would no longer pay the copays of patients taking Xenazine for non-Huntington’s disease uses, Lundbeck agreed to repurpose some of its prior donations to the Huntington’s Disease fund to a “general fund” at the foundation for the purpose of paying these patients’ Xenazine copays, and made subsequent “unrestricted” payments to the foundation with the understanding that the foundation would use these payments to pay Xenazine copays for these same patients. Lundbeck allegedly asked the foundation whether there was a “risk” that this practice would be viewed as not compliant with the foundation’s HHS-OIG Advisory Opinion, and the foundation allegedly replied that “[t]hey don’t know what we use the general fund for.”
The government also alleged that, at the time it was engaged in the foregoing conduct, Lundbeck had a policy of not permitting Medicare or ChampVA patients to participate in its free drug program for Xenazine, which was open to other financially needy patients, even if those Medicare or ChampVA patients could not afford their copays for Xenazine. Instead, in order to generate revenue from Medicare and ChampVA and to induce purchases of Xenazine, Lundbeck allegedly referred financially needy non-Huntington’s Disease Xenazine patients to the foundation, which resulted in claims to Medicare and ChampVA to cover the cost of the drug. Lundbeck has agreed to pay $52.6 million to resolve the government’s allegations.
Alexion: Alexion sells Soliris, which, from Jan. 1, 2010, through June 30, 2016, was indicated for certain uses to treat patients with paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). The cost of Soliris, based upon its list price and indicated dosing recommendation, can be approximately $500,000 per year. The government alleged that Alexion made donations to a “Complement-Mediated Disease” (CMD) fund at a foundation to pay the Medicare copay obligations of patients taking Soliris and to induce those patients’ purchases of Soliris. Alexion allegedly knew that the price it set for Soliris could pose a barrier to patients’ purchases of it. In particular, the government alleged that Alexion approached the foundation in January 2010 to request that it create a fund to provide financial assistance to Soliris patients, including by paying patients’ Soliris Medicare copays and other medical expenses for Soliris patients. Over the next several months, Alexion and the foundation allegedly discussed the coverage parameters for the fund, including Alexion’s desire that the foundation “not support a patient with any of these [CMD] diagnoses for other reasons tha[n] Soliris therapy.” After the fund opened, Alexion—the sole donor to the fund—allegedly understood that the foundation’s provision of financial assistance to a patient was contingent on the patient taking Soliris. Alexion allegedly noted internally that it needed to be diligent in letting the foundation know if a patient had stopped taking Soliris so that Alexion’s donations would not be used on patients who were not starting or maintaining Soliris therapy.
Meanwhile, the government alleged that Alexion had a general practice of not permitting Medicare patients to participate in its free drug program, which was open to other financially needy patients, even if those Medicare patients could not afford their copays for Soliris. Instead, in order to generate revenue from Medicare and induce purchases of Soliris, Alexion allegedly referred Medicare patients prescribed Soliris to the foundation, through the foundation’s “referral portal” software. Allegedly, the “referral portal” reported information back to Alexion confirming those Soliris patients who were approved for copay or other financial assistance from the foundation, and detailed the foundation’s payments to them, which resulted in claims to Medicare to cover the cost of Soliris. Alexion has agreed to pay $13 million to resolve the government’s allegations.
The government’s resolution of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
These investigations were conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the Department of Veterans Affairs, Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Three Indicted for Manufacture of Methamphetamine in MaderaRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Oscar Rene Marrot-Garcia (Marrot), 26, of Chowchilla, and Mexican nationals Jose Monge Ponce (Ponce), 26, and Francisco Alcantar-Miranda (Alcantar), 30, charging them with conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, manufacturing methamphetamine, possessing with intent to distribute methamphetamine, cocaine, heroin, and marijuana, and maintaining drug premises, U.S. Attorney McGregor W. Scott announced.
According to court documents, Marrot rented a rural residence in Madera in December 2018 and set up a methamphetamine lab there. Joined by Ponce and Alcantar, the three assisted in manufacturing methamphetamine and storing large quantities of other drugs at the unoccupied Madera residence. At the end of January law enforcement executed a search warrant at the residence and found all three men there. They also found 22.4 pounds of methamphetamine in solution, 14 pounds of finished methamphetamine, 1 pound of cocaine, 2 pounds of heroin, and 25 pounds of marijuana. A handgun with a fully loaded magazine was also found.
This case is the product of an investigation by the Madera County Narcotic Enforcement Team (MADNET) and the High Intensity Drug Trafficking Area (HIDTA) team, which consists of agents from Homeland Security Investigations, California Department of Justice, California Highway Patrol, Fresno, the Sheriffs’ Offices of Tulare, and King Counties, and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug conspiracy, manufacturing, and possession with the intent to distribute charges, the defendants face a mandatory minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. As to maintaining drug premises, the defendants face a maximum statutory penalty of 20 years in prison and a $500,000 fine. The defendants may also be responsible to pay any cleanup costs associated with the disposal of the hazardous materials. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tahlequah Woman Pleads Guilty to False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Julieann Logsdon, age 33, of Tahlequah, Oklahoma, entered a guilty plea to False Statement, in violation of Title 18, United States Code, Section 1001, punishable by not more than 5 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleges that on or about August 29, 2017, within the Eastern District of Oklahoma, the defendant did willfully and knowingly make a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the executive branch of the government of the United States, by claiming she entered the MailMart and turned off the alarm, at a specific date and time. The statement and representation were false because, as the defendant then and there knew, she did not enter the MailMart and did not turn off the alarm at that time.
The charges arose from an investigation by the Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Staten Island Man Sentenced to 36 Months’ Imprisonment for $2.5 Million Real Estate Investment Scheme Targeting Elderly VictimsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Yevgeniy Braziler was sentenced by United States District Judge Ann M. Donnelly to 36 months’ imprisonment for his role in a scheme targeting investors, including numerous elderly victims, by selling them partnerships in fraudulent real estate companies. The amount of restitution will be determined by the Court at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence.
“Braziler has now been held accountable for fleecing the victims of his fraudulent scheme, many of whom were elderly when they were targeted, and nearly half of whom are now deceased,” stated United States Attorney Donoghue. “The Department of Justice and this Office are committed to protecting investors, especially the most vulnerable, from predators like the defendant.”
“The day of reckoning has finally arrived for Mr. Braziler who lacked the moral compass to do the right thing for his investment clients,” stated USPIS Inspector-in-Charge Bartlett. “In many of these cases, he stole from seniors who worked their entire lives saving for a brighter future. Mr. Braziler will have plenty of time in prison to consider the impact his crimes have had on the victims in this case.”
Braziler and his associates promised potential investors, many of whom were elderly and some of whom suffered from dementia, that real estate companies in Brooklyn that he managed would use investments to purchase, renovate, rent and re-sell residential real estate in and around Buffalo and Niagara Falls, promising high returns for the investors. In response, investors sent him over $1.8 million. Instead of using the money for the promised purposes, Braziler stole most of it. For example, investors sent one of Braziler’s investment vehicles, Buffalo Housing, at least $978,000, but Braziler purchased only one property for approximately $12,000, and kept most of the money for himself and others. In all, Braziler kept at least $323,510 of investors’ money for his own use, which he spent on credit card bills, pet supplies, alcohol, restaurants and his child’s school tuition. The investors lost nearly all of their money.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Matthew S. Amatruda is in charge of the prosecution.
The Defendant:
YEVGENIY BRAZILER
Age: 40
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-385 (AMD)
State Department Contracting Officer Indicted for Bribery and Procurement FraudRead the Press Release
A 17-count indictment was unsealed today charging Zaldy N. Sabino, a contracting officer with the U.S. Department of State, with conspiracy, bribery, honest services wire fraud, and making false statements.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Inspector General Steve A. Linick of the U.S. Department of State and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
According to the indictment, between November 2012 and early 2017, Sabino and the owner of a Turkish construction firm allegedly engaged in a bribery and procurement fraud scheme in which Sabino received at least $239,300 in cash payments from the Turkish owner while Sabino supervised multi-million dollar construction contracts awarded to the Turkish owner’s business partners and while Sabino made over a half million in structured cash deposits into his personal bank accounts. Sabino allegedly concealed his unlawful relationship by, among other things, making false statements on financial disclosure forms and during his background reinvestigation.
The case is being investigated by the Department of State’s Office of Inspector General and the FBI’s Washington Field Office. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Jack Hanly of the Eastern District of Virginia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Woman Admits to Embezzling from Her Employer More Than $2.4 Million Worth of Computer EquipmentRead the Press Release
CHARLOTTE, N.C. – Jolynn Denise McHone, 44, of Fort Mill, South Carolina, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to wire fraud, for embezzling from her employer more than $2.4 million worth of computer equipment, announced Andrew Murray, U.S. Attorney for the Western district of North Carolina.
Special Agent in Charge John A. Strong, of the FBI Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to the filed criminal bill of information and plea documents, from 2006 to 2017, McHone was employed by a Florida-based company as an information technology (IT) procurement manager. In that capacity, McHone was responsible for negotiating IT equipment purchases and lease agreements with the company’s IT vendors, managing IT equipment and purchases for the company and its subsidiaries throughout the United States, including North Carolina, and managing the company’s IT operating budget. McHone admitted in court today that from 2012 to 2017, she engaged in a scheme to defraud her employer by ordering new IT equipment using company funds, and then selling the IT equipment for her own financial gain.
According to court documents, McHone executed the scheme by placing orders for IT equipment to be delivered to a company subsidiary located in Concord, North Carolina, for supposedly legitimate company business. McHone intercepted the deliveries of the equipment, then met a co-conspirator in Charlotte, North Carolina, to whom she sold the equipment for cash, often for as little as 60 percent of the retail value of the equipment. During the relevant time period, McHone admitted that she engaged in dozens of fraudulent IT equipment purchase or lease transactions. Through this scheme, McHone obtained hundreds of fraudulently-acquired pieces of equipment, and caused losses of more than $2.4 million to the company.
McHone pleaded guilty to one count of wire fraud scheme, which carries a maximum penalty of 20 years in prison and a $250,000 fine. McHone has been released on bond. A sentencing date has not been set.
The FBI is in charge of the investigation. Assistant U.S. Attorney Dallas Kaplan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Social Security Employee Facing Federal Indictment for a Scheme to Obtain over $236,000 in Social Security Benefits by Allegedly Submitting Fictitious ClaimsRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Cheikh Ahmet Tidiane Cisse, age 43, of Baltimore, Maryland, on federal charges in connection with a scheme in which Cisse allegedly filed fraudulent claims for Social Security benefits using fictitious identities and the identities of actual individuals, and attempted to collected over $236,000. The indictment was returned on April 3, 2019.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
Cisse was employed by the Social Security Administration (SSA) as a Claims Specialist. The 14-count indictment alleges that between July 2018 and March 2019, Cisse used his position at SSA to create fictitious identities within the SSA’s social security number database in order to file fictitious claims for benefits. The indictment alleges that Cisse used both fictitious identities and the identities of actual individuals to file the fraudulent claims and stole or attempted to steal over $236,000 from SSA.
The indictment alleges that Cisse would input false information into SSA systems indicating that he had witnessed original documents, such as birth certificates, and marriage and divorce decrees, when in fact he had not. In one instance, when SSA withheld payment due to suspected fraud, the indictment alleges that Cisse contacted SSA’s payment center and falsely relayed that the purported beneficiary had called inquiring about the whereabouts of the payment, which caused the payment center to release the funds. Cisse allegedly directed payments on the fraudulent claims into accounts he controlled, then spent the funds through cash withdrawals and retail purchases.
According to the indictment, Cisse caused SSA to pay approximately $87,000 in fraudulent claims through direct deposit, issue approximately $46,000 in checks that were never negotiated, and authorize approximately $103,000 in claims that SSA halted before payments were issued.
If convicted, Cisse faces a maximum sentence of 20 years in prison for each of nine counts of wire fraud; a maximum of 10 years in prison for Social Security fraud and for theft of government property; and a mandatory two years in prison, consecutive to any other sentence imposed, for each of three counts of aggravated identity theft. Cisse was arrested on a related criminal complaint on March 20, 2019, and was released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled yet on the indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the SSA Office of Inspector General for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.
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Sioux Falls Man Pleads Guilty to Aiding and Assisting in the Preparation of False and Fraudulent Tax ReturnsRead the Press Release
United States Attorney Ron Parsons announced that Isaiah H. Rangel, age 50, of Sioux Falls, South Dakota, appeared before District Judge Karen E. Schreier, on April 3, 2019, and pled guilty to an Indictment that charged him with Aiding and Assisting in the Preparation of False and Fraudulent Tax Returns.
The maximum penalty upon conviction is 3 years in federal prison and/or a $100,000 fine, a period of supervised release of not more than 1 year, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Between January 29, 2015, and April 15, 2015, Rangel, a resident of South Dakota, operated a tax preparation business known as 1st Global Tax. Rangel willfully assisted in the preparation of a false and fraudulent Income Tax Return of a taxpayer for calendar year 2014.
The investigation was conducted by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Jeffrey C. Clapper.
A presentence investigation was ordered and a sentencing date was set for June 24, 2019. The defendant was released pending sentencing.
Sinaloa Cartel Money Launderer Pleads Guilty; Admits Laundering $13 Million in Drug MoneyRead the Press Release
NEWS RELEASE SUMMARY – April 4, 2019
SAN DIEGO – Cesar Hernandez-Martinez of Tijuana pleaded guilty in federal court today to managing and supervising an “extensive” international money laundering organization that smuggled $13 million in narcotics proceeds from the United States to Mexico.
The narcotics - multi-kilogram quantities of cocaine, methamphetamine and heroin – were smuggled into the United States from Mexico by a drug-trafficking organization that Hernandez-Martinez acknowledged was a part of, or affiliated with, the Sinaloa Cartel.
Hernandez-Martinez, 29, was extradited from Mexico to the United States in September 2018 to face these charges. Through his plea agreement, Hernandez-Martinez admitted that, from approximately April 2013 until November 2015, he owned and operated currency exchange houses in Tijuana that received smuggled drug proceeds. Hernandez-Martinez further admitted to knowing that money received was from narcotics trafficking activity in the United States. Hernandez-Martinez also coordinated couriers involved in smuggling this currency from the United States to Mexico, ensuring that they picked up the currency from the correct sources who were primarily located in Southern California.
Hernandez-Martinez pleaded guilty before U.S. Magistrate Judge Bernard G. Skomal. Hernandez-Martinez will be sentenced on July 8, 2019 at 9:00 a.m. before U.S. District Judge Roger T. Benitez. Hernandez-Martinez faces up to 20 years in prison and a maximum fine of $26 million (twice the value of the funds involved). Three other defendants previously entered guilty pleas in this case and were sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda).
The U.S. Attorney’s Office is working this matter together with the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice in Washington, D.C.
DEFENDANT Case Number 15-cr-950
Cesar Hernandez-Martinez Age: 29 Tijuana, Mexico
SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED
Hernandez-Martinez
Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).
Maximum Penalties: 20 years in prison; $500,000 fine or twice the value of the funds involved.
Prior Guilty Pleas and Sentences
Joel Acedo-Ojeda: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 135 months custody and $20,000 fine.
Omar Ayon-Diaz: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 120 months custody and $15,000 fine.
Osvaldo Contreras-Arriaga: Pleaded guilty to Conspiracy to import cocaine, in violation of Title 21, U.S.C., Secs. 952, 960 and 963; sentenced to 132 months custody and $1,000 fine.
INVESTIGATING AGENCY
Homeland Security Investigations
Sinaloa Cartel Money Launderer Pleaded Guilty to Laundering $13 Million in Hard Narcotics ProceedsRead the Press Release
A man from Tijuana, Mexico pleaded guilty in federal court today to managing and supervising an “extensive” international money laundering organization that smuggled, from the United States to Mexico, through Southern California and elsewhere, under his direction, $13 million of narcotics proceeds.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert S. Brewer Jr. for the Southern District of California and Special Agent in Charge Dave Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Diego Field Office, made the announcement.
Cesar Hernandez-Martinez, 29, pleaded guilty to conspiracy to commit international money laundering before U.S. Magistrate Judge Bernard G. Skomal. Hernandez-Martinez was extradited from Mexico to the United States in September 2018. The narcotics -- multi-kilogram quantities of cocaine, methamphetamine and heroin – were smuggled into the United States from Mexico by a drug trafficking organization that Hernandez-Martinez acknowledged was a part of, or affiliated with, the Sinaloa Cartel. Through his plea agreement, Hernandez-Martinez admitted that, from approximately April 2013 until November 2015, he owned and operated currency exchange houses in Tijuana that received smuggled proceeds. Hernandez-Martinez further admitted to knowing that these smuggled proceeds were from narcotics trafficking activity in the United States. According to the plea agreement, Hernandez-Martinez also coordinated couriers involved in smuggling this currency from the United States to Mexico, ensuring that they picked up the currency from the correct sources who were primarily located in Southern California.
Hernandez-Martinez will be sentenced on July 8, 2019 before U.S. District Judge Roger T. Benitez. Three other defendants previously entered guilty pleas in this case and have been sentenced including:
- Joel Acedo-Ojeda, 34, of Culiacan, Sinaloa, Mexico, pleaded guilty to conspiracy to commit international money laundering and was sentenced to serve 135 months in prison and ordered to pay a $20,000 fine;
- Omar Ayon-Diaz, 40, of Tijuana, pleaded guilty to conspiracy to commit international money laundering and was sentenced to serve 120 months in prison and was ordered to pay a $15,000 fine; and
- Osvaldo Contreras-Arriaga, 31, of Culiacan, Sinaloa, Mexico, pleaded guilty to conspiracy to import cocaine and was sentenced to serve 132 months in prison and pay a $1,000 fine.
HSI San Diego conducted the investigation. Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Lawrence A. Casper of the Southern District of California are prosecuting the case.
Shreveport man pleads guilty to lying on a federal firearms formRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Joseph Shaquille Brown, 25, of Shreveport, pleaded guilty before U.S. District Judge Donald E. Walter for making a false statement on a federal firearms transaction record, known as an ATF Form 4473.
According to the guilty plea, Brown completed an ATF Form 4473 at a Shreveport business on November 17, 2017. On the form, Brown indicated he was not subject to a court authorized restraining order. However, he was subject to two such restraining orders that were issued following his arrest on October 4, 2017 for telephone harassment and stalking his ex-wife. The Caddo Parish District Court issued a restraining order on October 9, 2017, and the Caddo parish Juvenile Court issued another restraining order on October 27, 2017.
Brown faces up to five years in prison, three years of supervised release and a $250,000 fine. Judge Donald Walter set Brown’s sentencing date for July 2, 2019.
The ATF conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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, 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.
Seven Ohio Men Plead Guilty to Crimes Related to Sexually Abusing Children, Creating Child PornographyRead the Press Release
COLUMBUS, Ohio – Seven Ohio men have pleaded guilty to related crimes regarding child pornography and the sexual abuse of two 10-year-old children.
Four of the men were charged in a second superseding indictment returned by a federal grand jury in August 2018, for crimes related to producing child pornography and the repeated sexual abuse of a 10-year-old girl. They include: William G. Weekley, 35, of Newark; Timothy F. Sullivan, 50, of Canal Winchester; Franklin Eugene Perry, 63, of Columbus; and Brian S. Perkins, 42, of Mt. Vernon.
Three other defendants were discovered in the course of the investigation that was initiated by the discovery of Weekley’s activities. Those three men were each charged in separate cases on August 23, 2018. Grant Michalski, 29, of Columbus, was charged by criminal complaint. A federal grand jury charged Eric Zevely, 34, of Columbus, to offenses related to the production of child pornography and sexual abuse of another 10-year-old girl. Finally, in a fourth case, Jordan I. Makowski, 33, of Greenville, Ohio, was indicted by a federal grand jury for distributing and receiving child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin, Westerville Acting Police Chief Charles Chandler and other members of the FBI Crimes Against Children Task Force announced the pleas entered into before Chief U.S. District Judge Edmund A. Sargus, Jr.
This investigation began when Ohio Bureau of Criminal Investigations Special Agent/FBI Task Force Officer Larry McCoy communicated undercover with Weekley online. From that initial investigation into Weekley, investigators were able to discover the additional defendants.
According to court documents, the defendants made online contact with each other and others who shared, or whom they believed to share, their sexual interest in minors, incest and child pornography.
After making initial contact through Craigslist, Weekley – who pleaded guilty in U.S. District Court today – communicated with each of the other defendants on an ongoing basis through text and various other apps, including Wickr.
Weekley had regular access to a female child (Jane Doe), who was approximately 10 to 11 years old during the offenses detailed. Weekley sexually abused Jane Doe and created images and videos of the molestation, which he shared with others, including some of the co-defendants.
Weekley and Perry discussed sexually abusing Jane Doe together, and made plans for Perry to join Weekley in the sexual abuse of Jane Doe. Perry encouraged Weekley to continue abusing the victim and did eventually sexually abuse the victim together with Weekley.
Likewise, Perkins and Sullivan requested that Weekley bring Jane Doe to meet them for the purpose of sexually abusing Jane Doe, but it is not believed that Perkins or Sullivan actually met with Weekley.
One of the conversations found on Weekley’s phone between him and Sullivan was initiated when Weekley responded to an online classified ad Sullivan posted entitled “I AM LOOKING TO PRIVATELY MEET AN INCEST FAMILY. Mom son brother sister.”
Weekley and Michalski messaged on Craigslist about interests in sexual topics like “family, forced” and “K9 and more.”
Zevely engaged in thousands of communications with numerous other individuals in response to ads placed on Craigslist, including with Weekley. Investigators discovered Zevely sexually abused a different 10-year-old victim who was not Jane Doe. Zevely also engaged in communications about sexually abusing minors with both HSI and FBI undercover task force officers.
In a conversation on Kik messenger, Makowski sent several files containing child pornography to another individual.
Weekley pleaded guilty today to three counts of production of child pornography (15 to 30 years in prison), one count of attempted coercion of a minor (10 years to life in prison) and two counts of distributing child pornography (five to 20 years in prison).
Sullivan pleaded guilty on Tuesday to attempted coercion or enticement of a minor to engage in illegal sexual activity (10 years to life in prison).
Perry pleaded guilty in January 2019 to coercion or enticement of a minor to engage in illegal sexual activity (10 years to life in prison).
Perkins, Zevely and Michalski all pleaded guilty in November 2018. Perkins and Michalski pleaded guilty to receipt of child pornography (five to 20 years in prison), and Zevely pleaded guilty to producing child pornography (15 to 30 years in prison).
Makowski pleaded guilty in February 2019 to distributing child pornography (five to 20 years in prison).
U.S. Attorney Glassman commended the investigation of this case by the FBI Crimes Against Children Task Force, the Franklin County Sheriff’s Office Internet Crimes Against Children Task Force, and Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the cases.
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Sacramento County Man Indicted on Conspiracy, Armed Robbery, and Fraud ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment today against Damian Deleal, 30, of Carmichael, charging him with conspiracy to commit offenses against the United States, armed robbery of a U.S. Mail carrier, possession of a stolen Postal Service key, bank fraud, aggravated identity theft, and possession of stolen U.S. mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2018, Deleal conspired with other individuals to rob a mail carrier of a U.S. Postal Service key that was capable of opening numerous residential mailboxes in Sacramento. Deleal conspired to obtain the key so he and his coconspirators – including Jayce Powell, Brandon Moses, and Loren Patrick – could commit bank fraud and identity theft using bankcards, checks, and other financial instruments stolen from the mail.
On March 9, 2018, in South Sacramento, an unnamed co-conspirator robbed a mail carrier at gunpoint and took a Postal Service key. Although the gun resembled a real firearm, investigators later determined it was a BB gun that Deleal supplied as part of the conspiracy. During the following week, Deleal, Powell, Moses, and Patrick used the key to steal mailed bankcards and checks. They then posed as the victims and attempted to use their bankcards and checks to purchase goods and obtain cash.
Deleal and Powell further conspired to fraudulently claim reward money offered for information relating to the robbery and the stolen Postal Service key. In executing this plan, they planted the stolen key on Moses while he was sleeping in his car and called the U.S. Postal Service to report Moses’ location and inquire about the reward. After receiving this tip, investigators worked quickly to make arrests and learned that Deleal orchestrated the conspiracy and related crimes.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Assistant U.S. Attorney Michelle Rodriguez and Special Assistant U.S. Attorney Robert J. Artuz are prosecuting the case.
Deleal is currently in custody on unrelated charges. Powell, Moses, and Patrick have already pleaded guilty to federal charges in the following related cases in this district: U.S. v. Patrick, 2:18-cr-079-MCE; U.S. v. Powell, 2:18-cr-083-MCE; and U.S. v. Moses, 2:18-cr-090‑MCE.
If convicted of bank fraud, Deleal faces a maximum statutory penalty of 30 years in prison and a $1 million fine. If convicted of armed robbery, he faces a maximum statutory penalty of 25 years in prison and a $1 million fine. If convicted of aggravated identity theft, he faces a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for conspiracy is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rhode Island Man Indicted by Federal Grand Jury for the Kidnapping of Jassy CorreiaRead the Press Release
BOSTON – Louis Coleman III was indicted today by a federal grand jury in Boston for the kidnapping resulting in the death of Jassy Correia.
Coleman, 32, of Providence, R.I., was indicted on one count of kidnapping resulting in death. An arraignment date will be scheduled by the Court. Coleman was arrested on Feb. 28, 2019, in Delaware, charged by complaint in the District of Massachusetts on March 3, and appeared in federal court in Boston on March 11. He has been detained since his arrest.
According to the charging documents, after learning of the disappearance of Correia, law enforcement reviewed surveillance tape from outside of the Venu nightclub, the last place Correia had been seen by her friends, which showed Correia leaving the area and entering a vehicle with a man later identified as Coleman. Surveillance footage from Coleman’s Providence, R.I., apartment building showed Coleman, at about 4:15 a.m. on Sunday, Feb. 24, 2019, parking and exiting the vehicle, and then returning a short time later carrying a blanket. He then walked from the car to the front of the building carrying a body with long hair and clothing consistent with the description of Ms. Correia. Once he entered the building, surveillance video showed Coleman dropping the victim on the floor and dragging her towards the elevator, and subsequently towards his apartment unit. The victim was not moving and her body was limp.
It is alleged that on Feb. 26, 2019, surveillance video from the defendant’s apartment building showed Coleman enter the apartment building with Walmart shopping bags. Law enforcement subsequently obtained video surveillance and a receipt from a Walmart in Providence, R.I., that revealed Coleman had purchased three Tyvek suits, duct tape, two candles, electrical tape, one mask, surgical gloves, two pairs of safety goggles, an odor respirator and CLN release bleach bath.
At approximately 9:58 p.m. on Feb. 27, 2019, Coleman is seen on video surveillance entering the apartment building with what appeared to be a new, large suitcase. At 1:15 a.m., on Feb. 28, 2019, Coleman is seen in the video wheeling the suitcase away from his apartment unit towards the elevator, eventually out of the building and into the parking lot where his vehicle was parked. Coleman appeared to have difficulty lifting the suitcase into the trunk of his car.
Additional surveillance video showed Coleman on several occasions exiting his apartment building with other items, including trash bags, cardboard boxes, a bottle of bleach, a laptop case, a computer tower and a small duffle bag.
Later in the day on Feb. 28, 2019, a search warrant was executed at Coleman’s apartment, where two packages of hooded coveralls and two respirator masks were recovered. A sofa with four large cushions, one of which was missing a cover, was also observed. In a dumpster outside of the apartment complex, white trash bags, a bag containing plastic sheets, men’s jeans with bleach stains and a belt, a white nylon hooded coverall, an empty box of baking soda, clear safety goggles, a respirator mask, duct tape packaging, rubbing alcohol, Walmart bags, used plastic gloves, an empty package from a car air freshener, three empty packages of purifying charcoal and a sponge were recovered.
On the afternoon of Feb. 28, 2019, Coleman’s vehicle was stopped by Delaware authorities on I-95 South near Wilmington, Delaware. Officers ordered Coleman out of the vehicle and asked him if anyone else was in the vehicle with him. It is alleged that Coleman stated words to the effect: “She’s in the trunk.”
Officers discovered the victim’s body in the trunk of Coleman’s vehicle, wrapped in a sofa cushion cover, which was inside of a black trash bag, inside of a large suitcase that matches the suitcase Coleman was observed bringing into his apartment on Feb. 27, 2019. The victim had significant bruising, a bloodied face, was bound with gray duct tape, and was covered in what is believed to be baking soda.
A duffle bag, a pair of new long-handled loppers, plastic garbage bags, clothing, a red plastic gas container, a green butane lighter, black gloves, charcoal air purifiers, air fresheners, tinted safety glasses, plastic Walmart bags, work towels, cloth work-gloves, a new set of DeWalt pliers, a laptop, a computer hard-drive/tower, and disinfectant wipes were also recovered in Coleman’s vehicle.
It is further alleged that photographs of the defendant’s vehicle depict a windshield that is cracked in two locations on the passenger side and a white substance, believed to be baking soda, in the trunk of the vehicle.
Coleman was taken into custody and transported to a Delaware State Police barracks. There, it was noted that Coleman had a large bandage on the right side of his face. When asked about it, he allegedly replied, “It’s from the girl.”
The charge of kidnapping resulting in death provides for a sentence of death or life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Boston Police Commissioner William G. Gross; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Rachael Rollins; Colonel Nathaniel McQueen Jr., Delaware State Police; and Colonel Hugh T. Clements Jr., Chief of Police, Providence Police Department, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the cooperation and assistance of Rhode Island Attorney General Peter F. Neronha; United States Attorney David C. Weiss, District of Delaware; and the Massachusetts State Police. Assistant U.S. Attorneys Kenneth G. Shine and Robert Richardson of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Charged with Firearm and Drug CrimesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Dana Standing Bear, age 40, was indicted on March 19, 2019. He appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the charges. The penalty upon conviction is a minimum of 5 years up to 40 years in federal prison and/or a $5,000,000 fine, a minimum of 4 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Standing Bear knowingly being in possession of two 9mm semi-automatic pistols, as well as methamphetamine in February 2019 at Rapid City. The charges are merely an accusation and Standing Bear is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Standing Bear was detained pending trial. A trial date has not been set.
Physician Sentenced for His Role in Prolific Georgia Pill MillsRead the Press Release
VALDOSTA - The final defendant involved in a multi-city pill mill conspiracy was sentenced to 72 months in prison Wednesday, said U.S. Attorney Charles “Charlie” Peeler. Dr. Vinod Shah, 69, of Salisbury, NC previously pleaded guilty to conspiracy to dispense controlled substances outside the usual course of medical practice and a legitimate medical purpose and was sentenced to prison on April 3, 2019 by the Honorable Hugh Lawson. Dr. Shah will serve three years supervised release. There is no parole in the federal system.
Dr. Shah joins seven other co-defendants who have been sentenced for their roles in operating pill mills at The Wellness Center of Valdosta and The Relief Institute of Columbus, where tens of thousands of prescriptions for highly addictive opioids were dispensed to people and more than $2 million dollars in cash was paid out by patients seeking prescriptions. Dr. Shah was recruited after a long career in medicine and was employed from 2012-2013, first training in Valdosta under co-defendant Dr. William Bacon, 83, of St. Johns, FL. There, he was taught to prescribe “cocktails” of Oxycodone and Alprazolam (commonly known as Xanax). In Columbus, Dr. Shah saw, at most, 45 patients a day, and the clinic stayed open late into the evening to see patients coming in from out of state. The clinics operated on a “cash only” basis. Patients paid $325 in cash for the first visit, $250 for subsequent visits. Almost every patient seen by Dr. Shah had a diagnosis of low back pain and was prescribed large quantities of two different dosages of Oxycodone and Alprazolam. Dr. Shah admitted in his plea agreement that many of the patients he saw were seeking drugs and many had no legitimate need for the prescriptions that were written. Dr. Shah also admitted that he did not adequately examine the patients and deliberately ignored obvious signs that the clinics were operating outside the legitimate practice of medicine. Dr. Shah was paid $1200 a day during his employment.
“There is no excuse for doctors and health care professionals who turn away from their oath to ethically care for sick people and instead prescribe opioids to addicts in return for cash,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District. “The opioid epidemic is a scourge, and is creating serious harm in every pocket of our society. Law enforcement is working to root out those in the medical field illegally profiting from others’ destruction.”
A total of seven co-defendants in this case were sentenced in December 2018. Dr. Bacon was sentenced to 72 months in prison and the forfeiture of over $95,000. Dr. Donatus O. Mbanefo, 65, of Columbus, GA was sentenced to 96 months in prison. Following a two-week trial that began on May 29, 2018, a Valdosta jury found both Dr. Bacon and Dr. Mbanefo guilty of conspiracy to dispense controlled substances outside the usual course of medical practice and a legitimate medical purpose. Dr. Mbanefo was also convicted of two additional counts of unlawful dispensation of controlled substances.
Five co-conspirators previously entered guilty pleas for their involvement in or knowledge and concealment of the conspiracy, and were sentenced in federal court on Thursday, December 6, 2018.
On charges of conspiracy:
1. Carol Neema Biggs a/k/a Carol Johnson, 33, of Hollywood, FL: 60 months imprisonment, plus 36 months consecutive in prison for a total of 96 months imprisonment
2. Junior Alexander Biggs, 40, of Hollywood, FL: 50 months imprisonment, plus 36 months consecutive in prison for a total of 86 months imprisonment
3. Nilaja C. Biggs, 36 of Hialeah, FL: 36 months imprisonment
On charges of knowledge and concealment of the conspiracy:
4. Shavonta Devon Bright, 35 of Miami, FL: 3 years probation
5. Ionie Whorms, 55 of Goose Creek, SC: 3 years probation
Evidence presented during the 2018 trial of Dr. Bacon and Dr. Mbanefo showed that co-conspirators Carol Biggs, Nilija Biggs and Junior Biggs formed the Wellness Center of Valdosta (WCV) in June 2011, located at 2016 E. Adair Street, to operate as a pain clinic. Dr. Bacon began working there in September 2011 and saw patients until the clinic closed. The clinic saw unrealistically large numbers of patients daily, including people from out of state, and accepted no forms of insurance or government benefits but took cash payments only. No diagnostic testing was offered and no alternative treatments outside prescribing large quantities of a “cocktail” of pain medications and other controlled substances were offered to patients. The “cocktail” generally included such highly addictive controlled substances as Oxycodone and Xanax, but also included Hydromorphone, Hydrocodone, Soma, Valium and Ambien. During the approximately 27 months during which Dr. Bacon worked at the Wellness Center of Valdosta, he wrote more than 29,000 prescriptions for controlled substances.
In June 2012, Carol and Junior Biggs opened another pain clinic in Columbus known as the Relief Institute of Columbus. The Relief Institute of Columbus operated in the same fashion as the Wellness Center of Valdosta by unlawfully dispensing controlled substances. Dr. Mbanefo saw patients at the Relief Institute between mid-March 2013 and mid-June 2013. During that three month period of time, Dr. Mbanefo wrote more than 2,900 prescriptions for controlled substances, including prescribing large quantities of Oxycodone and Xanax to an undercover agent, who had no legitimate medical issues. The doctors at both clinics were paid $1200 to $1400 per day to see patients, with a bonus for Dr. Bacon when he saw more than 40 patients in a single day. During the operation of the two clinics, patients made cash payments of more than $2 million.
The case was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation and Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Robert D. McCullers and K. Alan Dasher prosecuted the case for the United States.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Oshkosh Couple Indicted on Federal Firearm ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on April 2, 2019, a federal grand jury issued an indictment against Scott E. Billington (age: 28) and Kody E. Gurske (age: 23) both of Oshkosh, Wisconsin.
The indictment alleges that Billington and Gurske possessed firearms in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A). The indictment also alleges that Gurske sold or disposed of a firearm to a person prohibited by law from possessing a firearm in violation of Title 18, United States Code, Section 922(d)(9), and that Billington possessed firearms after a conviction for a crime of domestic violence contrary to Title 18, United States Code, Section 922(g)(9).
If convicted of possessing a firearm in furtherance of a drug trafficking crime, each faces a mandatory 5 year prison sentence and up to a lifetime of imprisonment. Billington and Gurske’s other charges carry a maximum penalty of up to ten years imprisonment and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oshkosh Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Opelika, Alabama Woman Pleads Guilty to Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Shara Tyesha Cumins, age 29, of Opelika, Alabama, entered a guilty plea to Possession With Intent To Distribute Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D) and Title 18, United States Code, Section 2, punishable by not more than 5 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleges that on or about December 22, 2018, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute less than 50 kilograms of marijuana, a Schedule I controlled substance.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Op-Ed from the U.S. Attorney re: National Crime Victims’ Rights Week April 7-13, 2019Read the Press Release
It was forty-five years ago. I still think about it. I think about how helpless I was when the three thugs on a city bus robbed me of my valuables at knifepoint as I was coming home from school. My experience pales in comparison to what so many crime victims deal with on a day-to-day basis. But, my experience allows me to empathize to a much greater degree than I would otherwise be able to do. Each year the Department of Justice and United States Attorneys’ offices—including mine—observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf.
Our office has worked with hundreds of victims over the past year. And we have in every instance worked to get them justice. Victims of fraud, victims of sexual exploitation, victims of the opioid epidemic and elder victims have all exhibited the courage to come forward and describe their often heart-wrenching experiences. Sometimes the pain associated with the crime has to be relived again and again as the court proceedings are concluded. It is painful for them—every single time. But, without their courage we could not do our jobs of prosecuting the perpetrators of the crimes and advocate appropriate punishments.
Our prosecutions have led to the removal of hundreds of pounds of dangerous drugs, the prosecution of several adults who sexually exploited children and doctors who have monetized their efforts to keep their patients addicted to opioids. We have also spent many hours in the community educating children and adults about the dangers of drugs, addiction, social media and internet schemes.
Our attorneys and the law enforcement community continue to pursue the fraudsters, drug dealers, exploiters of children and the elderly alike. But, our work would be impossible without the courageous victims. Hopefully, their efforts will encourage the many victims who are too afraid to come forward or feel foolish that they were taken advantage of. To those victims, I say, I understand, but we want to help you and we need your help. It is why we do what we do, and we are proud to honor all crime victims this month.
-U.S. Attorney Bill Powell, the Northern District of West Virginia
Ontario Woman Pleads Guilty for Her Role in Financial Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sheila Offor, 41, of Scarborough, Ontario, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that between July 2005 and May 2011, the defendant and others conspired to defraud individuals seeking loans and to obtain money from these individuals seeking loans.In furtherance of the scheme, a number of individuals established websites for fictitious financial services companies offering to arrange loans to U.S. residents with credit problems. Applicants provided their names, phone numbers, state of residence, requested loan amount, and approximate credit scores. Applicants were then contacted by persons posing as company representatives and told that a lender would be contacted for approval. When informed that a loan was arranged, applicants were instructed to sign and return a loan agreement, provide bank account information, and pay an “insurance deposit” for the lender to process the loan. Applicants were provided wire instructions for the lender’s “insurance deposit,” including the name of the company representative (payee), the amount, date, and Western Union location.
Offor served as a payee in this scheme and traveled from Canada to the United States, picked up wired funds, and transported them back to Canada. The monies were then delivered to other individuals who were managing the scheme. Applicants never received the loans, but they were often coerced into making multiple deposits under various pretexts.
In total, the defendant received $134,172.60 in fraudulent “insurance deposits” from 77 different victims.
Today’s plea is the culmination of an investigation on the part of Special Agents of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; U.S. Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; the Canada Border Services Agency; and the Federal Trade Commission.
Sentencing is scheduled for July 24, 2019, at 1:00 p.m. before Judge Wolford.
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North Pittsburgh Man Sentenced to Prison for Selling Drug ParaphernaliaRead the Press Release
PITTSBURGH - A resident of Glenshaw, Pennsylvania, has been sentenced in federal court to two years of incarceration and three years of supervised release on his convictions for criminal contempt and selling drug paraphernalia, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Mayank Mishra, 38. Judge Bissoon also ordered the sentence to be served consecutively to a 12-year sentence imposed previously on Mishra for conspiring to distribute more than a kilogram of heroin.
According to information presented to the court, Mayank Mishra and other members of his family operated stores that sold drug paraphernalia, including diluents used to manufacture heroin and the glassine bags in which heroin is typically sold. In February 2013, federal agents executed search warrants at the business and home of Mishra, and those searches revealed that Mishra was selling drug paraphernalia. He was released on conditions of bond, which, among other things, precluded him from violating any federal or state law.
Subsequent to his release, law enforcement received information that Mayank Mishra was continuing to sell cutting agents and glassine bags. Based on that information, law enforcement used a confidential informant to purchase cutting agents and glassine bags from Mayank Mishra, and the confidential informant successfully recorded the transaction. The confidential informant explicitly asked for "cut" and "bags", and Mayank Mishra provided a material typically used to dilute heroin and the bags typically used to store and sell heroin. Based on that information, law enforcement obtained another set of search warrants for Mayank Mishra’s business and home, where law enforcement found more cutting agents, glassine bags, marijuana paraphernalia, and $86,000 in cash. Law enforcement arrested Mayank Mishra a second time, and this time the Court did not release him on bond.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises
United States Attorney Brady commended the Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Mishra.
Newark Man Convicted of Possession of Heroin and FirearmRead the Press Release
NEWARK, N.J. – A Newark man previously convicted of four felonies in state court and a federal drug distribution crime was convicted by a federal jury today of possession with the intent to distribute heroin, possession of a handgun while committing a drug crime, and being a convicted felon in possession of a handgun, U.S. Attorney Craig Carpenito announced.
Jihad Garrett, 35, was convicted after a four-day trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated for two and a half hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On Feb. 23, 2018, Newark police officers saw Garrett in a vehicle that was similar to a vehicle wanted in a series of carjacking and shooting incidents over the previous month. When the police officers approached the car, Garrett told them, among other things, that he also was a police officer. While talking with Garrett, the police officers saw that Garrett had over $2,500 in cash rolled up in his breast pockets. After a canine unit indicated that there were drugs in the car, the car was towed and the police obtained a search warrant to conduct a further search of the car. The police found over 500 individual doses of heroin packaged for street-level distribution and a .40 caliber handgun in the front seat area of the car.
Garrett had previously been convicted of four drug felonies in Essex and Union counties. In 2011, Garrett was sentenced to 74 months in federal prison after being convicted for distribution of heroin.
The defendant is facing a maximum potential penalty of life in prison and a fine of up to $250,000. Sentencing is scheduled for Aug. 15, 2019.
U.S. Attorney Carpenito credited law enforcement officers of the Newark Police Department, under the leadership of Public Safety Director Anthony Ambrose; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie Patterson; and the Essex County Sheriff’s Department, under the direction of Sheriff Armando Fontoura, with the investigation leading to today’s conviction.
The government was represented at trial by Senior Trial Counsel Robert Frazer and Assistant U.S. Attorney Desiree Latzer of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
New York Man Sentenced to 130 Months for Crack, Heroin and Fentanyl TraffickingRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Frankie Dejesus, 29, of Rochester, New York, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 130 months in prison and three years of supervised release for conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Dejesus conspired with others to acquire heroin, fentanyl and crack in Rochester and to distribute it from at least 12 residences in Central Maine. The defendant was sent to Central Maine to distribute the drugs while residing with several Central Maine residents who were paid in heroin and crack for their participation.
On June 26, 2016, Dejesus exchanged gunfire with Reginald McBride in the parking lot of the Walmart in Augusta, Maine. In imposing sentence, Judge Woodcock recounted the drug-related backdrop leading up to the “wild west shootout” between Dejesus and McBride.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta, Maine Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New York City Man Sentenced to 135 Months for Drug DistributionRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ambrose Wan, a/k/a “Ambrose Won,” a/k/a “Bruno,” 34, of New York, New York, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 135 months in prison and eight years of supervised release for conspiracy to distribute heroin, fentanyl, cocaine and cocaine base, commonly known as “crack” and possession with the intent to distribute cocaine, crack and heroin, and possession with the intent to distribute fentanyl, heroin and cocaine.
According to court records, between July and September 2017 Wan conspired with others to distribute the drugs in Central Maine. The drugs were obtained from sources in New York and distributed through a network of dealers in Central Maine. On September 6, 2017 and again on September 28, 2017, the Waterville Police Department recovered drugs from two separate hotel rooms in the city. The drugs were intended for distribution by Wan and others.
In imposing sentence, Judge Woodcock observed that Wan had been a “professional drug dealer” for most of his adult life.
The case was investigated by the Waterville Police Department and the U.S. Drug Enforcement Administration, with the assistance of the Maine Drug Enforcement Agency. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Man Charged with Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – JASON PICK, age 38, a resident of New Orleans, Louisiana, was charged yesterday in a one-count bill of information for wire fraud announced U.S. Attorney Peter G. Strasser.
According to court documents, PICK was employed as an accountant for Company A between August 2016 and June 2018. Part of PICK’s duties was handling the credit card accounts of Company A. Without authorization, PICK used Company A’s credit cards for his own personal expenses. In total, PICK stole approximately $129,741.40 from Company A.
If convicted, PICK faces 20 years of imprisonment followed by up to three (3) years of supervised release and a fine up to $250,000.
U.S. Attorney Strasser reiterated that the bill of information is merely a charge, and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Secret Service in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor, General Crimes.
New Mexico Man Sentenced to Four Years in Prison for Role in Multi-State Dog Fighting ConspiracyRead the Press Release
Robert Arellano, 65, of Albuquerque, New Mexico, was sentenced today in federal court in Trenton, New Jersey, to a total of four years in prison for his role in a multi-state dog fighting conspiracy. Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Craig Carpenito of the District of New Jersey made the announcement.
A jury previously convicted Arellano of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and two felony counts of selling, transporting, and delivering dogs intended for use in an animal fighting venture. Arellano also pleaded guilty to three felony counts of possessing a dog intended for use in an animal fighting venture in a related federal case in New Mexico that was consolidated with his New Jersey case for sentencing. Judge Peter G. Sheridan presided over the trial and imposed the sentence, which includes three years’ supervised release following Arellano’s term of imprisonment.
Three other defendants were convicted as part of the same jury trial; two defendants will be sentenced on May 29, 2019, and the third defendant will be sentenced on May 30, 2019.
“Animal fighting for sport is not an activity a civilized country tolerates,” said Assistant Attorney General Clark. “Our Division will continue to pursue and prosecute illegal animal fighting ventures across the country.”
“Dog fighting is vicious and cruel. Beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “As today’s sentencing shows, if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“Dogfighting for entertainment and profit is the organized and heinous business of breeding and conditioning dogs to fight each other until one dog kills the other,” said U.S. Attorney John C. Anderson for the District of New Mexico. “Today’s sentencing brings to an end Mr. Arellano’s 30 years in this unconscionable business, and hopefully will deter others who seek to profit from forcing animals fight to the death. In New Mexico, we will continue to seek out and punish those who exploit and abuse animals.”
According to trial evidence and court documents filed in connection with the cases, the defendant and his associates regularly fought dogs – including to the death – and repeatedly trafficked in dogs with other dog fighters across several states for the purpose of dog fighting. Arellano and the other defendants also maintained significant numbers of fighting dogs and substantial dog fighting equipment, such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. A defendant who pleaded guilty to charges in a related case admitted that his dog died in his car on the way home after a dog fight. Evidence at trial showed that dog deaths from fighting were a common outcome. Another defendant convicted at trial attempted to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects.
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“Dog fighting, far from being any kind of ‘sport’, shows a complete disregard for animals and is both despicable and cruel,” said Brian Michael, Special Agent in Charge, Homeland Security Investigations, Newark. “HSI will continue to cooperate with our local, state and national partners, as happened here, to investigate such crimes so the perpetrators can be prosecuted to the fullest extent of the law.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, eleven defendants from five states have been convicted and sentenced to a total of 164 months in prison as part of Operation Grand Champion. Additionally, 113 dogs have been rescued, and either surrendered or forfeited to the government. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Kathleen O’Leary. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
New Mexico Man Sentenced to Four Years in Prison for Role in Multi-State Dog Fighting ConspiracyRead the Press Release
TRENTON, N.J. – A New Mexico man was sentenced today to 48 months in prison for his role in a multi-state dog fighting conspiracy, U.S. Attorney Craig Carpenito of the District of New Jersey and Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division announced.
Robert Arellano, 65, of Albuquerque, New Mexico, was convicted Oct. 16, 2018, of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and two felony counts of selling, transporting, and delivering dogs intended for use in an animal fighting venture. Arellano also pleaded guilty to three felony counts of possessing a dog intended for use in an animal fighting venture in a related federal case in New Mexico that was consolidated with his New Jersey case for sentencing. Judge Peter G. Sheridan presided over the trial and imposed the sentence today in Trenton federal court.
Three other defendants were convicted as part of the same jury trial; two defendants will be sentenced on May 29, 2019, and the third defendant will be sentenced on May 30, 2019.
“Dog fighting is vicious and cruel,” U.S. Attorney Carpenito said. “Beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey. As today’s sentencing shows, if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as this week’s sentencing proceedings demonstrate,” Assistant Attorney General Clark said. “In our Division, we will continue to place a high priority on pursuing and prosecuting illegal animal fighting ventures across the country.”According to documents filed in this case and related cases and the evidence at trial:
Arellano and his associates regularly fought dogs – including to the death – and repeatedly trafficked in dogs with other dog fighters across several states for the purpose of dog fighting. Arellano and the other defendants also maintained significant numbers of fighting dogs and substantial dog fighting equipment, such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. A defendant who pleaded guilty to charges in a related case admitted that his dog died in his car on the way home after a dog fight. Evidence at trial showed that dog deaths from fighting were a common outcome. Another defendant convicted at trial attempted to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects.
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
In addition to the prison term, Judge Sheridan sentenced Arellano to three years of supervised release.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, eleven defendants from five states have been convicted and sentenced to a total of 164 months in prison as part of Operation Grand Champion. Additionally, 113 dogs have been rescued, and either surrendered or forfeited to the government.
The government is represented by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.
The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Defense counsel: Samuel Bregman Esq., Albuquerque, New Mexico
New Haven Oral Surgeon Pays $252K to Settle False Claims AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ROBERT SORRENTINO, DDS and ORAL AND MAXILLOFACIAL SURGICAL ASSOCIATES P.C. have entered into a civil settlement agreement with the federal and state governments and have agreed to pay more than $252,000 to resolve allegations that they violated the federal and state False Claims Acts.
Sorrentino is the former owner and operator of Oral and Maxillofacial Surgical Associates P.C., (“OMSA”), a dental practice in New Haven. Sorrentino sold his practice and retired in November 2014.
The allegations against Sorrentino and OMSA involve fraudulent billing to Medicaid for oral surgery and maxillofacial services. The services include deep sedation or general anesthesia services, which were not provided, and the removal of bone or tissue, which were either not performed or were encompassed in services covered under claims for extractions that Sorrentino and OMSA submitted for the same date of service. The services also include surgical reduction of osseous tuberosity, which were not performed or were medically unnecessary.
To resolve the allegations under the federal and state False Claims Acts, Sorrentino and OMSA have agreed to pay $252,913.26 in order to reimburse the Medicaid program, which covers conduct occurring from January 1, 2010 to December 31, 2011.
Under the federal False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,181 to $22,363 for each false claim.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. The case was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Robert Teitelman of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
New Britain Man Pleads Guilty to Illegal Possession of Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN ANDERSON, 38, of New Britain, pleaded guilty today in Hartford federal court to one count of possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on October 11, 2018, Hartford Police officers responded to a ShotSpotter detection system alert of gunfire in the vicinity of Vernon Street. At the scene, officers observed Anderson and another man pacing back and forth before entering a vehicle. When officers approached the vehicle, they saw live ammunition in the center console cup holder. A subsequent search of the car revealed a loaded Ruger Model EC9S 9mm semi-automatic handgun with an obliterated serial number underneath the seat Anderson had occupied. Anderson later admitted to ownership of the firearm.
Anderson’s criminal history includes state felony convictions for burglary in the third degree and assault in the second degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Anderson is scheduled to be sentenced by U.S. District Judge Michael P. Shea on June 27, 2019, at which time he faces a maximum term of imprisonment of 10 years.
Anderson has been detained since his arrest on October 11.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
NEPA Doctor Sentenced to over 27 Years’ Imprisonment for Drug Distribution Resulting in Death, Money Laundering and Tax EvasionRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fuhai Li, age 54, of Milford, Pennsylvania, was sentenced to 330 months’ imprisonment followed by six years supervised release on April 3, 2019, by United States District Court Judge A. Richard Caputo for unlawfully prescribing oxycodone and other opioids to 23 former patients, including a Honesdale woman who died as a result of using the pills.
According to United States Attorney David J. Freed, Li was convicted by a jury on June 5, 2018 for drug distribution resulting in death, money laundering and tax evasion. Li unlawfully prescribed oxycodone to a pregnant woman outside the usual course of medical practice and not for a legitimate medical purpose. That woman gave birth to an opioid-dependent baby 11 days after Li prescribed her 120 oxycodone 30 milligram tablets. A neo-natal specialist testified that the baby spent ten days in intensive care withdrawing from the oxycodone prescribed to his mother by Li.
During the five-week trial before Senior U.S. District Court Judge A. Richard Caputo, prosecutors from the U.S. Attorney’s Office presented the testimony of 19 former patients and three former employees of Li, eight pharmacists, three other physicians, an expert on pain management, the medical records for 39 former patients of Li, and the testimony of federal law enforcement agents and investigators from the Drug Enforcement Administration (DEA) and its Diversion Division, and Internal Revenue Service (IRS) special agents.
Li owned and operated the Neurology and Pain Management Center in Milford, Pike County, Pennsylvania. Li was a physician licensed by the Commonwealth of Pennsylvania and authorized to prescribe Schedule II controlled substances for legitimate medical purposes and in the usual course of professional practice.
Li repeatedly prescribed oxycodone and other opioids outside the usual course of medical practice and not for a legitimate medical purpose.
Former patients testified that Li repeatedly prescribed them high doses of oxycodone and other opioids every month over several years without performing medical examinations and without verifying their prior medical treatment.
Evidence was presented that Li repeatedly falsified patient medical records and made material omissions in those records in an effort to legitimize the unlawful prescriptions.
Prosecutors presented evidence that between August 2011 and January 2015, Li wrote 26,985 prescriptions for Schedule II controlled substances, 99.37% of which were written for opioids. This included 18,115 prescriptions for oxycodone, of which 12,129 were written for oxycodone 30 milligrams, the highest dosage available in short acting oxycodone. Other opioids frequently prescribed by Li included methadone, OxyContin, hydrocodone and hydromorphone.
Former patients testified that they became dependent and addicted to opioids as a result of Li’s prescriptions. Evidence also established that Li prescribed high dose opioids to patients who he knew had recently completed drug rehabilitation and detoxification programs, resulting in those patients becoming addicted again to opioid pain medication.
Several former patients testified that they earned money by selling drugs prescribed for them by Li and used part of the money to buy heroin to support their own addiction. Some of those former patients also subsequently sold heroin on the streets of Pennsylvania and New Jersey.
One former female patient testified that she had sex with Li on almost every visit to his office during a four-year time period. Li prescribed that patient high doses of various opioids for approximately four years. Two additional former female patients testified to inappropriate sexual conduct by Li during office visits.
The jury also convicted Li of using two medical offices for the purpose of unlawfully prescribing opioids. Li’s first medical office was located at 104 Bennett Avenue in Milford, and the second office was located at 200 3rd Street in Milford.
DEA agents and investigators executed search warrants at Li’s Milford office and his residences in Milford and East Stroudsburg on January 29, 2015. Agents seized electronic medical records from Li’s office, and seized more than $1 million in cash, which was hidden under beds and in closets in his residences. Evidence at trial showed that many of Li’s patients paid cash for visits, drug screens, office tests, and injections.
The money laundering convictions related to Li’s use of criminal proceeds to pay off the mortgage on his East Stroudsburg residence on November 19, 2012, and to purchase his 200 3rd Street, Milford office on August 29, 2013. Li had $385,572.05 wired from a bank account funded in part by criminal proceeds to pay off the mortgage on the East Stroudsburg residence. He subsequently withdrew $158,699.30 from a bank account funded in part by criminal proceeds to purchase the Milford office.
Li was also convicted of tax evasion for the tax years 2011, 2012, and 2013. An IRS agent testified that Li underreported his taxable income for those years by more than $800,000.
The jury’s verdict also included the forfeiture to the United States of $1,030,960 in cash that was seized from Li’s two residences; $1,036,079.36 seized from various bank accounts; real property located at 200 3rd Street, Milford (Li’s medical office); and real property located at 4005 Milford Landing Drive, Milford. Judge Caputo signed a Preliminary Order of Forfeiture for these identified assets at the sentencing.
The four-year long investigation in this case was conducted by the Drug Enforcement Administration (DEA) and its Diversion Division, the Internal Revenue Service’s Criminal Investigation Division, and the Pike County District Attorney’s Office. Assistant U.S. Attorneys Michelle Olshefski, Francis P. Sempa and Evan Gotlob prosecuted the case.
This case was prosecuted as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Munster Man Sentenced to 29 Years in PrisonRead the Press Release
HAMMOND – Eric P. Krieg, age 47, of Munster, Indiana, was sentenced before U.S. District Court Judge Joseph S. Van Bokkelen upon his guilty plea to knowingly making an unregistered destructive device, mailing a destructive device, malicious use of explosive materials, and mailing a threatening communication, announced U.S. Attorney Kirsch.
According to documents in this case, Krieg was sued for making disparaging statements on his online blog. To settle the lawsuit, Krieg had to pay $45,000 and post an apology on his blog. Krieg retaliated by constructing a pipe bomb and placing it in the mail, addressed to the home of the attorney who represented the individual who had sued Krieg. The bomb detonated prematurely in the East Chicago Post Office injuring a female postal employee.
Krieg also made threats arising from a grudge he had against another individual. He placed a bullet wrapped in tape in the mail addressed to that individual with the message, “The next one will be in the back of your head.”
US Attorney Kirsch said, “I am pleased that Judge Van Bokkelen accepted my sentencing recommendation as set forth in the plea agreement. For his conduct, Krieg has been severely punished. Krieg intended to send a message of fear and to harm those with whom he had disagreements. He failed to do physical harm to his enemies, but not for lack of trying. And, his conduct resulted in injury to a totally innocent postal worker just trying to do her job. This should have never happened. The sentence of 29 years, imposed today, sends a strong and clear message that individuals who engage in this type of conduct – sending bombs through the mail, intending to harm or kill others – will be brought to justice. I am thankful to all the law enforcement officials who participated in this case for their service and hard work, bringing this matter to a final and just resolution.”
“The public has a right to expect the U.S. Mail to be safe, and Mr. Krieg’s actions eroded that trust when he mailed a pipe bomb that exploded and injured an East Chicago Postal employee in September of 2017,” said Inspector in Charge Patricia Armstrong, of the U.S. Postal Inspection Service’s Detroit Division. “The investigative collaboration with our law enforcement partners and our brave, quick-thinking Postal employees ensured Mr. Krieg faced swift justice.”
“This sentence sends a strong message that actions such as Mr. Krieg’s, which endanger the public, will not be tolerated,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI and our law enforcement partners will continue to diligently identify and investigate those who put lives at risk through their violent actions.”
“The ATF takes seriously the illegal manufacturing of destructive devices coupled with serious threats of intimidation,” remarked Special Agent in Charge Tim Jones of the Chicago Field Division of the ATF. “We will continue to work alongside our law enforcement partners to investigate violent threats and protect the community.”
This case resulted from an investigation by the United States Postal Inspection Service; Federal Bureau of Investigation; Bureau of Alcohol, Tobacco Firearms and Explosives; United States Marshal’s Service; East Chicago Police; Hammond Police; Indiana State Police; Munster Police; and Porter County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Jennifer Chang.
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Morris County, New Jersey, Man Charged with Possessing Bombs, and Being Felon in Possession of Guns and Explosive MaterialsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man has been arrested and charged in connection with allegedly building and exploding a bomb, U.S. Attorney Craig Carpenito announced.
Christopher Faschan, 31, of Landing, New Jersey, is charged by complaint with one count each of possession of numerous explosive/destructive devices, possession of precursor materials, and being a felon in possession of explosive materials, firearms and ammunition. He is scheduled to appear April 5, 2019, before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 1, 2019, Faschan drove to the home of “Individual 1” in Stanhope, New Jersey, and displayed what he claimed to be a bomb to Individual 1. According to Individual 1, Faschan stated: “this may be a good area to let this thing off” before leaving the area. Shortly thereafter, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope. He then called Individual 1 and stated: “That’s something that could easily be put under someone’s car, not that I would do that or anything.”
On Feb. 4, 2019, law enforcement agents interviewed Faschan, who said that he had ignited the bomb. He described it as two pounds in weight and explained how he used and mixed Potassium Perchlorate, Aluminum Powder, and Tannerite to make several bombs that were in his home. At Faschan’s home, law enforcement agents found explosive devices, precursor materials, weapons and ammunition.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers of the Byram Police Department, under the direction of Chief Peter J. Zabita; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Sussex County Prosecutor’s Office, under the direction of Francis A. Koch; Morris County Sheriff James M. Gannon; Morris County Prosecutor Frederic M. Knapp; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.
The counts of possession of a destructive device, possession of explosive materials by a convicted felon, and possession of firearms by a previously convicted felon each carry a maximum penalty of 10 years in prison and a $250,000 fine.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Monroe County Man Convicted of Federal Gun and Drug CrimesRead the Press Release
OXFORD – A Monroe County man was convicted Tuesday night of a federal gun violation and drug trafficking crimes following a two-day jury trial presided over by Senior US District Judge Neal Biggers. Jerry Lee Quinn, 50, formerly of Aberdeen and West Point, was found guilty of Possession of a Firearm by a Convicted Felon, Possession of a Controlled Substance with Intent to Distribute, and Distribution of a Controlled Substance. The announcement regarding Quinn’s conviction was made by Joseph Frank, Supervisory Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives in Oxford, and U.S. Attorney William C. Lamar.
Information presented during the trial revealed that Quinn was a convicted felon who was on the run from law enforcement with several outstanding arrest warrants in September of 2013. During an investigation into Quinn’s whereabouts, investigators obtained information on the night of September 11, 2013, that Quinn was at a residence in Southaven, Mississippi, and surrounded the house in an attempt to apprehend Quinn. Quinn fled the residence, but was eventually apprehended after a struggle with Desoto County Sheriff’s Deputies and members of the US Marshals Fugitive Task Force. During a search of bags belonging to Quinn that were found at the residence, officers located two loaded firearms, ammunition, and marijuana packaged for sale.
Following the verdict, U.S. Attorney William C. Lamar praised investigators for their joint efforts to apprehend Quinn, and reiterated the commitment of his office to hold accountable those who threaten the safety of our neighborhoods through violence, drug trafficking and illegal possession of firearms. Lamar remarked, “This investigation and today’s verdict are the result of a collaborative and targeted effort by local and federal law enforcement to ensure the safety and security of our communities. We are committed to doing everything possible to keep our neighborhoods, towns and cities safe and when law enforcement agencies work together, we can hold accountable those individuals who violate the law and threaten the safety of our residents. We will continue to work diligently with our local, state and federal partners to enforce the federal firearms laws and to see that individuals who violate those laws are held accountable.”
The investigation, arrest and prosecution of Quinn was the result of a joint Federal and State investigation by ATF, the US Marshals Gulf Coast Regional Fugitive Task Force, Desoto County Sheriff’s Office, Southaven Police Department and Olive Branch Police Department. The case was prosecuted as a part of the Project Safe Neighborhoods Initiative by AUSA Robert Mims and AUSA Susan Bradley.
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Minot Woman Indicted for Bank Fraud and Identity TheftRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on April 3, 2019, Nicole Marie Rogers, age 31, from Minot, ND, was charged by Indictment with two counts of Bank Fraud, Possession of Stolen Mail, and Aggravated Identity Theft.
The Indictment alleges that from December 2018 to March 2019, while in McLean and Ward Counties, Ms. Rogers possessed hundreds of articles of stolen mail, two of which were checks she altered to reflect that she was entitled to $43,334.22, and deposited or cashed them at financial institutions. Rogers also committed aggravated identity theft when she attempted to commit a separate bank fraud crime by using a stolen passport to cash another stolen check.
Roger’s initial appearance was before Magistrate Judge Alice R. Senechal, on March 26, 2019. After a detention hearing on March 29, 2019, Judge Senechal ordered Rogers be detained pending trial. Ms. Rogers' arraignment is scheduled for Friday, April 12, 2019, at 10:30 a.m. in Bismarck.
The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case was investigated by United States Postal Inspection Service, the McLean County Sheriff’s Department, and the Minot Police Department.
This case is being prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
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Mineral County man admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Nathan E. Carpenter, of Elk Garden, West Virginia, has admitted to his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Carpenter, age 29, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Carpenter admitted to working with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties and elsewhere.
Carpenter faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Millinocket Man Pleads Guilty to Theft of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Randolph Bourgoin, III, 31, of Millinocket, Maine, pled guilty yesterday in U.S. District Court to theft of a firearm from a federally licensed dealer.
According to court records, on November 27, 2018, Bourgoin stole the gun from a display case at a gun dealer in Milo. The theft was caught on surveillance video, and Mr. Bourgoin later admitted to the theft.
Bourgoin faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Milo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was brought 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
Milford Man Sentenced to 12½ Years for RobberyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Richard F. Moloney, 43, of Milford, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 12½ years in prison and three years of supervised release for interfering with commerce by robbery and bank robbery. The charges arose from the robbery of the County Road Market in Milford and the Bangor Savings Bank branch located in Orono, Maine in June 2018.
Court records reveal that on June 10, 2018, the defendant entered the County Road Market, pointed what appeared to be a dark-colored handgun at a cashier and told her to give him money. The defendant was wearing a grey hooded sweatshirt and sunglasses, and had socks on his hands and a cloth over his face. A second cashier opened the register and put the cash tray on the counter. The defendant absconded with the money.
Two days later, the defendant robbed a Bangor Savings Bank branch. He was wearing a black mask, a grey hooded sweatshirt with the hood pulled up, sunglasses with reflective lenses, jeans, and white socks on his hands. The defendant walked to the teller counter where a customer was conducting a transaction and displayed a note to the bank teller that read: “Give me all the money fast in a bag. No tracer or dye packs got a gun.” The teller gave the defendant cash from the drawer to the defendant and he absconded with it.
The investigation was conducted by the Penobscot County Sheriff’s Office; the Old Town, Bangor and Orono Police Departments; the Maine State Police Crime Laboratory; the Maine State Police; and the FBI.
Mexican National Indicted on Methamphetamine Distribution and Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging ALEJANDRO AVILEZ-PEREZ, age 41, of Mexico, with Conspiracy to Distribute more than 50 grams of Methamphetamine, Possession with Intent to Distribute more than 50 grams of Methamphetamine, and Illegal Reentry of a Deported Alien.
If convicted of each drug count, AVILEZ-PEREZ, having been previously convicted of a serious drug felony (Possession with Intent to Distribute Cocaine) would face a minimum of 15 years imprisonment and a maximum penalty of life imprisonment, a $20,000,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to an aggravated felony conviction, AVILEZ-PEREZ, previously convicted of Possession with Intent to Distribute Cocaine and Illegal Reentry of a Deported Alien, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by DEA, ICE’s Enforcement and Removal Operations and Homeland Security Investigations, State Bureau of Investigation, and the Nash County Sheriff’s Office.
Mexican National Charged for Failure to Register or Update His Registration as Sex OffenderRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Jose Reyes-Delgado, 57, a Mexican national residing in Fresno, charging him with failure to register or update his registration as a sex offender, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2018 until March 2019, Reyes-Delgado was present in the State of California but failed to register as a sex offender as required by law. Reyes-Delgado was previously convicted in 1989 in California for lewd conduct with a child under 16, at which time he acquired his registration requirement.
This case is the product of an investigation by the U.S. Marshals Service, and ICE Enforcement and Removal Operations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Reyes-Delgado faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Marijuana User Who Illegally Possessed a Gun Sentenced to Two Years in Federal PrisonRead the Press Release
A man who illegally possessed a firearm was sentenced April 3, 2019, to two years in federal prison.
Trevon Parham-Holmes, age 20, from Cedar Rapids, Iowa, received the prison term after an October 30, 2019, guilty plea to possession of a firearm and ammunition by a drug user.
Evidence during the case established that police tried to stop a car in Waterloo after receiving that information that one of the occupants was fighting with an area gang. The car ignored the police, failed to stop, and led officers on a pursuit, during which the occupants of the vehicle, including Parham-Holmes, threw multiple guns from the car. The gun Parham-Holmes possessed had previously been stolen.
Parham-Holmes was sentenced in Cedar Rapids by United States District Court Judge C. J. Williams. Parham-Holmes was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought 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.
Parham-Holmes was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department..
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2049.
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Man charged with making false statements involving international terrorismRead the Press Release
MISSOULA—A man who was arrested at a Bozeman shooting range on Wednesday after having recently traveled to Montana from New York appeared in court today on false statement and firearm charges. U.S. Attorney Kurt Alme for the District of Montana and Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office made the announcement.
Fabjan Alameti, 21, had an initial appearance on a criminal complaint before U.S. Magistrate Judge Jeremiah C. Lynch. The complaint charges Alameti with possession of a firearm by unlawful user of a controlled substance and with making false statements involving international terrorism.
Court documents filed in the case said law enforcement officers arrested Alameti without incident at a Bozeman shooting range. Alameti was taken into custody after he allegedly took possession of an M1A firearm he had rented.
“Fabjan Alameti recently moved to Bozeman from another state,” said Paul Haertel, special agent in charge of the FBI’s Salt Lake City Field Office. “We want to make it absolutely clear that Mr. Alameti has no known ties to Montana or any affiliation with the Muslim community in Bozeman,” he said.
The complaint is merely an accusation and Alameti is presumed innocent until proven guilty. If convicted of the most serious crime, Alameti faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
Judge Lynch ordered Alameti be detained. Alameti reserved his right to request a detention hearing at later date.
Assistant U.S. Attorney Jeff Starnes and Trial Attorney Rebecca Magnone, from National Security Division’s Counterterrorism Section, are prosecuting the case, which was investigated by the FBI.
Pacer case reference. 19-mj-0029. The case may be followed through the U.S. District court Calendar and the PACER system. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Man Sentenced for Distributing Methamphetamine into Red Cliff ReservationRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Tyrone Butterfield, 39, Red Cliff, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to 14 years in federal prison for distributing methamphetamine.
The amount of methamphetamine attributable to Butterfield was approximately 680 grams, which Judge Conley described as a conservative estimate. Butterfield conspired with others, including Ryan Witter, whom he met when they were in prison together. Butterfield arranged for the shipment of numerous packages of methamphetamine from sources in California to Bayfield, Wisconsin. At Butterfield’s direction, several of his associates wired money to California and accepted packages of methamphetamine on his behalf. Almost all of the methamphetamine was distributed into the Red Cliff Reservation.
The Court considered Butterfield’s role as a manager or supervisor of the drug conspiracy and also his use of his residence for the purpose of distributing methamphetamine when imposing his sentence.
Tyrone Butterfield and three other individuals were charged for their roles in this methamphetamine distribution conspiracy. Butterfield is the last to plead and be sentenced. Simon Sayers was sentenced to 90 months for his role in the conspiracy. Rita Witter was sentenced to three years, and Ryan Witter, Rita Witter’s son, was sentenced to 126 months.
The charge against Butterfield was the result of an investigation conducted by the Red Cliff Police Department; Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; Drug Enforcement Administration in Wisconsin and California; Bayfield County Sheriff’s Office; Ashland Police Department; and the Fremont (California) Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Man Sentenced to 30 Years in PrisonRead the Press Release
HAMMOND – Rickey D. Brown, Jr., age 41, of Hobart, Indiana, who previously lived in Florida, was sentenced before U.S. District Court Judge Joseph S. Van Bokkelen upon his plea of guilty to possession and production of child pornography, announced U.S. Attorney Kirsch.
Brown was sentenced to 360 months in prison followed by 20 years of supervised release.
“This 30 year sentence should send a strong message to all other sexual predators,” said U.S. Attorney Kirsch. “Children are the most vulnerable victims and my Office will do everything in our power to prosecute and to seek appropriate sentences against sexual predators.”
According to documents in the case, between January 1, 2014 and April 29, 2015, Rickey D. Brown produced photographs of a six to seven-year-old child diagnosed with Autism, who he persuaded to engage in sexually explicit conduct. He admitted to molesting the child on more than one occasion while the child was in his care. Brown also possessed child pornography, including depictions of minors under age twelve.
This case was investigated by the FBI, and prosecuted by Assistant United States Attorney Jill R. Koster.
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Long Island Man Pleads Guilty to Heroin Distribution ConspiraciesRead the Press Release
Earlier today, in federal court in Brooklyn, Stanley Fuller pleaded guilty to two heroin distribution conspiracies before United States Magistrate Judge Lois Bloom. The conspiracies, charged in two indictments, detail Fuller’s role as a supplier of substantial quantities of heroin to co-conspirators who trafficked the drugs in Jamaica, Queens. When sentenced, Fuller faces a statutory maximum of life in prison for the first conspiracy, and up to 20 years’ imprisonment for the second conspiracy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division, and James P. O’Neill, Commissioner, New York City Police Department, announced the guilty plea.
Between April 2013 and July 2015, law enforcement agents intercepted telephone communications during which Fuller discussed the quality of heroin being sold under the brand names “Sweet Dreams,” “Pepsi” and “Coca Cola.” In May 2017, following his arrest and indictment for heroin distribution conspiracy, Fuller was released on bond and placed on home confinement. Notwithstanding, Fuller continued supplying heroin to street-level dealers for distribution. Law enforcement agents again intercepted numerous telephone communications during which Fuller discussed heroin being sold under the brand names “9 & 1/2” and “Tom & Jerry.” In January 2019, Fuller was charged in a second indictment with heroin distribution conspiracy while on pre-trial release.
Fuller is the last of 12 defendants in the first indictment to plead guilty, nine of whom have been sentenced.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Marcia M. Henry, Alicia N. Washington, Erin Reid, Jonathan Algor, Michael Robotti and Lauren Elbert are in charge of the prosecution.
The Defendants:
STANLEY FULLER (also known as “We,” “Webo” and “Morty”)
Age: 43
Valley Stream, New YorkE.D.N.Y. Docket Nos. 15-CR-382 (S-2) (JBW) and 19-CR-21 (JBW)