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Thursday 4 April 2019
Lee County Ambulance Service and its Director Agree to Pay $253,930 to Resolve Allegations of False Claims to MedicareRead the Press Release
LEXINGTON, Ky. – The Lee County Fiscal Court (“Lee County”) and the former director of its ambulance service, Joseph Broadwell, have agreed to resolve civil allegations that Lee County Ambulance violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims, agreeing to pay $253,930 to the federal government.
The agreement resolves a civil lawsuit that was filed by the United States against Lee County and Broadwell, on September 14, 2018. In the lawsuit, the United States alleged that the ambulance service, at Mr. Broadwell’s direction, submitted over one thousand false claims to Medicare, seeking payment for unnecessary non-emergency ambulance transports, from January 2013 to June 2016. Medicare pays for non-emergency ambulance transports only if the patient’s condition is such that taking other forms of transportation would endanger the patient’s health. The United States alleged that Lee County and Broadwell knowingly disregarded the Medicare rules related to ambulance transports, despite having received years of training on these rules, and submitted claims to Medicare for the transport of patients to and from dialysis clinics without the required medical need. The United States further alleged that the ambulance service and Broadwell made false statements in the medical records supporting the patients’ medical conditions, to secure the reimbursement.
As part of the agreement, Lee County and Broadwell acknowledged that they engaged in this conduct, including the submission of false claims and the creation of false records. In the reaching the agreement, Lee County admitted to submitting false claims to Medicare for non-emergency ambulance transports of two patients to and from dialysis treatment. The transports, which occurred from January 1, 2013, to June 15, 2016, resulted in the submission of over one thousand false claims for reimbursement. Lee County also admitted that it made, or caused to be made and used, false records related to the medical conditions of the patients. Lee County acknowledged that the claims for reimbursements submitted to Medicare were done with a reckless disregard for the truth or falsity of the information submitted. Lee County agreed that its conduct caused damage to the United States.
Last year, the United States entered into additional settlement agreements, with paramedic Daniel Williams, who served as Lee County Ambulance’s Captain of Operations, and Lee County’s third-party billing company, Medical Claims Assistance, Inc., to resolve allegations that they also violated the False Claims Act, by causing Lee County’s submission of the false claims. Through these combined agreements, the United States has recovered over $515,000 in connection with Lee County’s submission of false claims to Medicare and Medicaid.
“Lee County Ambulance admitted it submitted false claims to the Medicare Program and received improper payments,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Unfortunately, this conduct represents another example of a common ambulance service scheme, one where Medicare pays hundreds of thousands of dollars to transport patients who simply had no need for an ambulance. No matter who submits them, the payment of false or fraudulent claims damages the public and reduces the limited tax dollars available to pay legitimate claims intended to help program recipients. The public deserves a watchful eye to prevent the submission of false or fraudulent Medicare claims, and our Office will continue to do its part in that effort.”
“Medicare only pays for ambulance transports when a patient cannot be safely transported by other means,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “This company billed for patients who could walk unassisted and did not need a stretcher to get them to their medical appointments."
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the Office of the Kentucky Attorney General’s Medicaid Fraud and Abuse Control Unit. Assistant United States Attorneys Jennifer Williams and Mary Melton handled the matter for the United States.
Laurel Man Pleads Guilty to Committing Five Armed Robberies of Pharmacies in Howard, Anne Arundel, and Prince George’s CountiesRead the Press Release
Baltimore, Maryland – Jawanza Kevin Carter, age 22, of Laurel Maryland, pleaded guilty on April 3, 2019, to robbery involving controlled substances, and to carrying and brandishing of a firearm during and in relation to a crime of violence, in connection with the armed robbery or attempted armed robbery of five pharmacies and the theft of tens of thousands of dollars’ worth of opioids.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Acting Chief Paul Herman of the Annapolis Police Department; Anne Arundel County Police Chief Tim Altomare; Acting Chief Russell E. Hamill, III of the Montgomery County Police Department; Chief Lisa D. Myers of the Howard County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to Carter’s plea agreement, between May 5 and November 29, 2017, Carter and his co-conspirator Arthur Prince participated in five armed robberies of pharmacies. In each robbery, Carter pointed a gun at the clerk, and Carter and Prince demanded opioid narcotics such as Oxycodone, OxyContin, Percocet, and Codeine. In most of the robberies, Carter and Prince also stole money from the cash register and/or robbed the clerk.
Specifically, Carter admitted that he robbed: the Howard Pharmacy in Columbia, Maryland on May 5, 2017; the Lorven Pharmacy in Laurel Maryland on June 19, 2017; the Pasadena Pharmacy in Pasadena, Maryland on August 25, 2017; and the Annapolis Professional Pharmacy in Annapolis, Maryland on November 29, 2017. Carter and Prince also attempted to rob the Pace Wellness Pharmacy in Pasadena on August 25, 2017, but were not able to steal narcotics when the clerk didn’t know where the drugs were located. Instead, Carter and Prince stole $180 from the cash register and robbed the clerk of her purse, which contained $50 in cash and credit cards, among other things.
In each robbery, cell-site records showed that Carter’s phone was in the immediate area of the pharmacy at the time of the robbery, and his DNA was found on a reusable shopping bag left by the robbers at the Howard Pharmacy and on a mask Carter wore during the Annapolis Professional Pharmacy that law enforcement later recovered. In addition, law enforcement recovered Carter’s fingerprints on one of the getaway vehicles used by the robbers, and text messages between Carter and Prince concerning one of the robberies. Photos from Carter’s Snapchat account also appear to reflect large purchases in the days and weeks after some of the robberies, including luxury items from Gucci, a gold watch, and designer tennis shoes.
Prince was arrested after the robbery on November 29, 2017, in Odenton, Maryland, not far from where law enforcement located the stolen narcotics. Carter was arrested at the home of his girlfriend in Laurel, Maryland. Searches executed at locations associated with Carter recovered three boxes of .40-caliber ammunition, a gun cleaning kit and related items, and an empty handgun carrying case with a clip in it.
After his arrest and while he was detained, Carter attempted to obstruct justice. In recorded jail calls, Carter instructed his girlfriend to get rid of a bag used in connection with one of the robberies, which she did. On December 4, 2017, Carter coached his girlfriend on what to say to law enforcement about two vehicles used in the robberies that were titled and registered to her. Carter told his girlfriend to tell law enforcement that one of the cars is a “family and friends car,” and that she drove the other vehicle.
Carter faces a maximum of 25 years in prison for robbery involving controlled substances; and a mandatory minimum of seven years and up to life in prison for brandishing of a firearm during and in relation to a crime of violence. Chief U.S. District Judge James K. Bredar has scheduled sentencing for August 21, 2019, at 2:30 p.m.
Co-conspirator Arthur Raymond Prince, age 20, of Laurel Maryland, previously pleaded guilty to aiding and abetting robbery involving controlled substances, and aiding and abetting the brandishing of a firearm during and in relation to a crime of violence, in connection with the armed robberies of five pharmacies. Prince also faces a maximum of 25 years in prison for aiding and abetting robbery involving controlled substances; and a mandatory minimum of seven years and up to life in prison for aiding and abetting the brandishing of a firearm during and in relation to a crime of violence. Judge Bredar has scheduled Prince’s sentencing for April 9, 2019, at 10 a.m.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI, the Prince George’s County Police Department, the Annapolis Police Department, the Anne Arundel County Police Department, the Montgomery County Police Department, the Howard County Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul A. Riley and Brandon K. Moore, who are prosecuting the case.
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Las Vegas Man Convicted of Two Armed Bank RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was convicted by a jury today to committing two armed robberies at the same bank in Henderson, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
After three days of trial, a federal jury found Anthony Delano Hylton Jr., 33, guilty of two counts of armed bank robbery and two counts of use and carry of a firearm during and in relation to a crime of violence. He was also found guilty of one count of felon in possession of a firearm at a separate bench trial. United States District Judge Howard D. McKibben presided over both trials and scheduled sentencing for September 17, 2019.
The evidence at trial established that on October 7, 2016, Hylton entered a Citibank on S. Eastern Avenue in Henderson, armed with a .45 caliber semi-automatic handgun. Once inside he pointed the gun at the customers and bank employees and ordered everyone to get down on the ground. He jumped over the teller counter and discharged the firearm into the floor. He then demanded money from the tellers while pointing his gun at them. He fled the bank with approximately $69,565. Three months later, on January 17, 2017, he entered the same bank armed with a revolver. He pointed the gun at the customers and bank employees and ordered everyone to the ground. He again jumped over the counter and demanded money from the tellers at gunpoint. The tellers complied and Hylton fled the bank with approximately $13,046.
Hylton is a previously convicted felon for battery with substantial bodily harm in Clark County, Nevada.
At the sentencing hearing, Hylton faces a minimum of 17 years in prison.
The case was investigated by the FBI and Henderson Police Department. Assistant United States Attorneys Lisa Cartier-Giroux and Peter S. Levitt are prosecuting the case.
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Large Volume Cocaine Dealer Sentenced to 125 Months for His Role in South Georgia Drug Crime NetworkRead the Press Release
VALDOSTA— A cocaine distributor in South Georgia involved in trafficking hundreds of kilograms will spend more than ten years in prison for his crimes, said U.S. Attorney Charles “Charlie” Peeler. Henry “Poochie” Austin, II, 49, of Valdosta was sentenced on April 3, 2019 to 125 months in prison and six years supervised released by United States District Judge Hugh Lawson. Mr. Austin was convicted in October 2018 of conspiracy to possess with intent to distribute cocaine and cocaine base following a three day trial and just one hour of jury deliberations. There is no parole in the federal system.
Mr. Austin was involved in a cocaine and crack cocaine distribution ring between 2013 and 2014 stretching from Atlanta to South Georgia, including Tifton, Valdosta, Omega, Hahira, Adel, Moultrie, and other nearby communities. Austin and 18 co-conspirators, all who previously pled guilty and have been sentenced, distributed hundreds of kilograms of cocaine sold as powder and also manufactured into crack cocaine, averaging between 10 to 15 kilograms of cocaine per week. Mr. Austin’s drug dealing career dates back to the 1990s.
“A dangerous drug ring moving hundreds of kilos of cocaine across our state is ended, and all involved have now faced the consequences of their crimes,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District. “I want to thank our law enforcement partners who are tracking down and stopping these illegal and deadly drug networks from causing more harm in our communities.”
This case was investigated by the Drug Enforcement Administration (DEA), Georgia Bureau of Investigation (GBI), Mid-South Narcotics Task Force, and the Tift, Crisp, Cook, Colquitt and Lowndes County Sheriff’s Offices. Assistant United States Attorneys Julia Bowen and Michael Solis prosecuted the case for the United States.
Questions can be directed to Pamela Lightsey, Public Information Officer, and 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.
Lafayette business owner pleads guilty to stealing nearly $300,000 from three finance companiesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Leonard Espree, 55, formerly of Lafayette, pleaded guilty yesterday before Chief U.S. District Judge S. Maurice Hicks Jr. for stealing nearly $300,000 from three finance companies.
According to the guilty plea, Espree was the owner and operator of Ameritek Office Solutions in Lafayette, which sold and serviced office equipment. Espree submitted false documentation in the names of existing local businesses to three finance companies in 2015 and 2016 to obtain payment for office equipment supposedly supplied to these businesses. The three companies approved eight of the transactions for which Espree received a total of $294,292.12. However, Espree never sold or delivered equipment to any of the businesses.
Espree faces up to 30 years in prison, five years of supervised release and a $1 million fine for one count of wire fraud. The court set a July 10, 2019 sentencing date.
The FBI investigated the case. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Las Cruces Middle School Principal Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Joel Aguilar Villanueva, 42, of Las Cruces, N.M., made his initial appearances in federal court in Las Cruces this morning on a criminal complaint charging him with transporting child pornography in interstate or foreign commerce and possession of child pornography. According to the criminal complaint, Villanueva is the principal of a middle school in Las Cruces public school system. Villanueva remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for April 9, 2019.
The investigation resulting in the charges against Villanueva began in Oct. 2018, when the National Center for Missing and Exploited Children received a tip that a certain Twitter account was being used to share videos of suspected child pornography. The investigation revealed that the Twitter account allegedly was subscribed to Villanueva, who listed a Las Cruces-area apartment as his residence. On April 3, 2019, law enforcement officers executed a state search warrant at the apartment, and seized an external hard drive that contained suspected child pornography. Villanueva was arrested while the officers were executing the search warrant.
If convicted of the charges in the criminal complaint, Villanueva faces a statutory mandatory minimum of five years and a maximum of 20 years of imprisonment on the transportation of child pornography charge, and a maximum 20 years of imprisonment on the possession of child pornography charge.
Charges in criminal complaints are only accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police, the Las Cruces Police Department, and the New Mexico Office of the Attorney General. Assistant U.S. Attorney Marisa A. Ong is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Jury Convicts Independence Man of Illegal Firearm After He Shoots His GirlfriendRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm that he used to shoot his girlfriend.
William C. McGee, 43, was found guilty of being a felon in possession of a firearm. He was charged as a career criminal due to his prior felony convictions.
Police officers were called to the Great Western Motel in Independence on June 13, 2018, in response to a report from a motel guest who heard gunshots. The caller also told police that the suspected shooter was in a green Toyota Camry, last seen traveling west on 24 Highway.
Officers located the green Toyota Camry in a nearby driveway. McGee was standing beside the vehicle. When he saw the police officers, McGee reached behind his back, pulled out a black Hi-Point 9mm handgun, and threw it over the vehicle. McGee, who had an active arrest warrant for domestic assault, was placed under arrest. The firearm was loaded with one round of 9mm ammunition.
McGee’s girlfriend, who was standing beside him, told officers that McGee had shot her outside their camper home, which was parked at that location, and she had a gunshot wound to her buttocks. Located in the camper were multiple rounds of 9mm ammunition – the same brand of ammunition as found in the firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McGee has three prior felony convictions for delivery of a controlled substance and prior felony convictions for distributing a controlled substance, possessing a controlled substance, and carrying a concealed weapon.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdict to U.S. Chief District Judge Beth Phillips, ending a trial that began Wednesday, April 3, 2019.
Under federal statutes, McGee is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Independence, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Individual Sentenced to 56 Months in Prison for Defrauding the U.S. Army Reserve Recruiting Assistance ProgramRead the Press Release
SAN JUAN, Puerto Rico – Luis De Jesús-Negrón, former Army Reserve Recruiter was sentenced by United States District Judge Aida Delgado-Colón to serve 56 months in prison and to pay restitution in the amount of $19,000 to the US Army, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. De Jesús-Negrón was found guilty of twenty six counts on December 6, 2018 after an eight-day jury trial.
In 2007 United States Army Reserve established the Army Reserve Recruiting Assistance Program (AR-RAP) through a task order under a contract then existing between the National Guard Bureau and the corporation Document and Packaging Broker, Inc. (Docupak). The AR-RAP was a recruiting program designed to offer referral bonus payments to Reserve soldiers to recruit civilians to serve in the Army Reserve. The Program had two primary participants: (1) Recruiters: whose job it was to assist the Docupak subcontractors in enlisting new members into the Army Reserve; and (2) Recruiter Assistants, whose job it was to identify and assist recruit new potential members into the Army Reserve, and assist Recruiters with other related duties. Under the contract specifications of the Program, only Recruiter Assistants were eligible for recruiting referral bonuses.
Luis De Jesús-Negrón, a Recruiter for the Army Reserve at the time of the offenses, was found guilty in Count One of the Second Superseding Indictment of conspiring to intentionally steal and obtain by fraud property belonging to the United States, to wit: the AR-RAP bonus payments. To do so, De Jesús-Negrón and a co-conspirator would set up an online account on the Docupak administered website for the Program; without authorization, utilize the personal identifiying information of the potential Soldiers, given to a Recruiter or the co-conspirator, to create a profile for the potential Soldier in the online Program account of the Recruiter Assistant; make other false entries in the online Program account to make it appear that the potential Soldier had in fact been recruited by the Recruiter Assistant; apply for the Recruiting Program eligible bonuses based on these false misrepresentations; and when the bonuses were approved cause an interstate wire transfer for payment. In a separate scheme, De Jesús-Negrón was found guilty of obtaining money and property from Docupak by falsely representing himself to be another Army Reserve solider who was eligible to be a Recruiter Assistant under the Recruiting Program, so that Luis De Jesús-Negrón could receive referral bonus payments to which he was not entitled. Additional counts of conviction were for wire fraud and aggravated identity theft.
“This former military recruiter defrauded a program designed to enhance military recruitments at a time when qualified Soldiers were desperately needed perform America’s ongoing missions around the world,” said Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service. “DCIS remains fully committed to holding accountable anyone who chooses to fraudulently enrich themselves and violate positions of trust. Today's conviction is a testament to our dedication in the fight against fraud and corruption affecting Department of Defense programs.”
The case was prosecuted by Assistant U.S. Attorney Myriam Y. Fernández-González.
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Houston Man Sentenced to Thirty Years in Prison for Money Laundering Conspiracy and Tax Crimes Relating to Second-Hand Drug SchemeRead the Press Release
A Houston, Texas, man was sentenced today to 360 months in prison for multiple conspiracy and tax charges, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
On Nov. 14, 2018, a jury convicted Kenneth J. Coleman, 52, of nine counts, including conspiracy to commit money laundering, conspiracy to structure currency transactions, corporate tax evasion, filing false tax returns with the Internal Revenue Service (IRS), and failing to file tax returns.
The evidence at trial established that Coleman facilitated the fraudulent sale of second-hand prescription medications to Utah-based Green Valley Medical Distributors, LLC (Green Valley). Coleman owned Acacia Pharma Distributors Inc. (Acacia) and Four Corner Suppliers Inc. (Four Corner), which purchased bottles of prescription medications from illegitimate sources and then sold them to Green Valley, which then sold the medications to pharmacies as brand-new.
Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer. Coleman and others acting at his direction created false pedigrees and provided the fraudulent documents to Green Valley. Evidence at trial showed that Green Valley would withhold payment to Coleman until it received these false pedigrees.
Coleman and his co-defendant, Marcus Weathersby, deposited proceeds from the fraudulent sale of these second-hand prescription drugs into Acacia’s and Four Corner’s business bank accounts and used the funds to pay the suppliers of the illicit pharmaceuticals. At trial, the government proved that Weathersby and others acting at Coleman’s direction laundered more than $41.5 million of illicit funds, including over $2.9 million in more than 230 cash withdrawals made in amounts less than $10,000, in order to evade bank-reporting requirements.
Coleman also evaded the assessment and payment of Acacia’s and Four Corner’s income tax liabilities, failed to file an individual tax return for tax year 2011, failed to file corporate income tax returns for tax years 2011 and 2012, and filed false individual income tax returns for the tax years 2012 and 2013. The combined loss of corporate and individual income taxes was more than $700,000.
Coleman’s co-defendant, Weathersby, formerly of Houston, Texas, pleaded guilty to conspiracy to commit money laundering and was sentenced in June 2018 to 58 months in prison. He testified at trial against Coleman.
In addition to the term of imprisonment imposed, U.S. District Court Judge David Hittner ordered Coleman to serve three years of supervised release, imposed a criminal forfeiture money judgment of $20,326,464.17, and ordered Coleman to pay $716,986 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Richard E. Zuckerman thanked agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Food and Drug Administration-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked U.S. Attorney Ryan K. Patrick of the Southern District of Texas and his office for their assistance in this matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Honduran National Sentenced for Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RICARDO MACHADA-BACA age 25, a citizen of Honduras, was sentenced yesterday by U.S. District Judge Lance M. Africk after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, MACHADA-BACA was found in the United States on or about November 13, 2018, after having been previously removed therefrom on or about March 10, 2017.
RICARDO MACHADA-BACA was sentenced to 14 months incarceration, and three years of supervised release.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Heroin/Fentanyl Pipeline to Wilmington DisruptedRead the Press Release
WILMINGTON – United States Attorney Robert J. Higdon, Jr. announced the conclusion of OCDETF Operation “Tooth Fairy”. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combatting drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The defendants’ convictions and sentencings were the culmination of a multi-year and multi-agency investigation into a heroin/fentanyl trafficking ring operating primarily around Wilmington, North Carolina and the surrounding counties.
On September 19, 2016, in a joint investigation between the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force (Gang Unit) and the New Hanover County Sheriff’s Office Vice Division, law enforcement arranged an undercover purchase of heroin from DEANDRE SWEET. When DEANDRE SWEET arrived in a parking lot in Wilmington to complete the sale, law enforcement stopped his rental car and found 500 bags of heroin. DEANDRE SWEET was then arrested.
In the same joint investigation, between June and October 2017, law enforcement conducted several undercover purchases of heroin from KYERIC SWEET and DIQUELLE SWEET. The investigation revealed that ANDREW LIGE was a source of supply for the Sweets. On October 12, 2017, law enforcement arrested KYERIC SWEET in possession of a quantity of heroin and more than $2,500. On October 10, 2017, DIQUELLE SWEET was a passenger in a vehicle that attempted to flee from the Elizabethtown Police following a traffic checking station. Officers stopped the vehicle and found SWEET seated on a loaded Taurus 9mm handgun with a bullet in the chamber. The driver was prosecuted by the Bladen County District Attorney’s Office for an additional firearm.
On July 26, 2016, TEREK HARPER was stopped in Sampson County for a traffic violation and found to be in possession of a large quantity of heroin. HARPER was travelling to Wilmington to distribute the heroin. HARPER is currently awaiting sentencing in North Carolina State Court on this charge.
On July 26, 2016, Duplin County Sheriff’s Deputies and the North Carolina Highway Patrol attempted to stop a car driven ANDREW JEROME LIGE. LIGE led law enforcement on a lengthy chase through Duplin County – reaching speeds in excess of 115 miles per hour. During the chase, KEVIN SIMPKINS, the passenger in the car, threw out a bag containing more than 9,800 bags of heroin (more than 130 grams). A trooper was finally able to immobilize the car. During the investigation, it was determined that LIGE had been making trips to New Jersey to acquire heroin for distribution in Eastern North Carolina.
On November 26, 2017, LIGE was the victim of a home invasion robbery. LIGE was shot and found in close proximity to a handgun. At the time of the robbery, LIGE, a convicted felon, was prohibited from possessing handgun.
On November 30, 2017, New Hanover County Sheriff’s Detectives searched SHAWQI GRAY’s residence and a trailer on the property. Law enforcement found the following items: more than 130 grams of a heroin/fentanyl mixture, more than 150 grams of a mixture of heroin and ketamine, 90 grams of heroin, 5 loaded handguns (2 of which were stolen) and more than $47,000 in cash. The investigation uncovered that GRAY had been involved in the distribution of more than a kilogram and half of heroin and fentanyl from 2017 until the time of his arrest. At the time of his arrest in November 2017, GRAY was a fugitive from Pennsylvania. On August 4, 2016, the Easton Police Department in Pennsylvania had searched GRAY’s Pennsylvania residence. GRAY was not present for the search, during which law enforcement found 20 grams of heroin, 68 grams of crack cocaine, and more than $19,000 in cash.
On February 26, 2018, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Wilmington Police Department received information that LIGE was transporting a load of heroin to the Wilmington area. As a result, law enforcement stopped LIGE’s BMW in which TONY SIMS was driving and LIGE was a passenger. In the car, law enforcement found 5,000 bags of heroin (approximately 100 grams).
On April 5, 2018, the United States Marshals Service Fugitive Task Force and the Wilmington Police Department arrested TEREK HARPER at a motel in Wilmington. HARPER was found in possession of more than 3,400 bags of heroin (approximately 68 grams of heroin) and more than 9,000 in cash.
The defendants include:
- SHAWQI GRAY, 37, of Wilmington, NC. GRAY was sentenced to 204 months’ imprisonment in February 2019. GRAY pled guilty to conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and a quantity of fentanyl, possession with intent to distribute one hundred (100) grams and possession of a firearm in furtherance of a drug trafficking offense.
- ANDREW JEROME LIGE, also known as “Shotgun,” 40, of Wilmington, NC. LIGE was sentenced to 132 months’ imprisonment on January 9, 2019. LIGE pled guilty to conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and possess with the intent to distribute one hundred (100) grams or more of heroin.
- KEVIN SIMPKINS, 50, of Wilmington, NC. SIMPKINS was sentenced to 132 months’ imprisonment. SIMPKINS pled guilty to conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and possess with the intent to distribute one hundred (100) grams or more of heroin.
- DEANDRE SWEET, 27, of Wilmington, NC. SWEET was sentenced to 105 months’ imprisonment in October 2018. SWEET pled guilty to conspiracy to distribute and possess with intent to distribute a quantity of heroin and possess with intent to distribute a quantity of heroin.
- DIQUELLE SWEET, 22, of Wilmington NC, SWEET was sentenced to 105 months imprisonment in September 2018. SWEET pled guilty to 5 counts of distribution of a quantity of heroin and possession of a firearm by a convicted felon.
- KYERIC SWEET, 25, of Wilmington, NC. SWEET was sentenced to 90 months’ imprisonment on October 2018. SWEET pled guilty to possession with intent to distribute a quantity of heroin.
- TEREK HARPER, also known as “Reek,” 34, of New Jersey. HARPER pled guilty to conspiring to distribute and possess with the intent to distribute a 100 grams or more of heroin and possession with intent to distribute 100 grams or more of heroin. HARPER was sentenced to 87 months’ imprisonment on April 1, 2019. HARPER is awaiting sentencing in North Carolina State Court and faces a mandatory minimum active sentence to be served following the expiration of his federal sentence.
- TONY SIMS, 52, of Wilmington, NC. SIMS was sentenced to 48 months’ imprisonment on January 25, 2019. SIMS pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of heroin and possession with the intent to distribute a quantity of heroin
The investigation of this case was conducted by the Federal Bureau of Investigation’s Safe Streets and Coastal Carolina Criminal Enterprise Task Forces; Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Marshals Service Fugitive Task Force; Wilmington Police Department (Gang Unit); Elizabethtown Police Department; Duplin County Sheriff’s Office; New Hanover County Sheriff’s Office; Sampson County Sheriff’s Office; and, North Carolina Highway Patrol. Assistant United States Attorney Timothy Severo prosecuted these cases on behalf of the government.
Hartford Man Who Pointed Gun at Undercover Officers Sentenced to 30 Months in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ENRIQUE LUCIANO, 32, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and ammunition.
According to court documents and statements made in court, on June 4, 2018, Luciano approached a car on Cabot Street in Hartford and pointed a gun at the car. The car was occupied by two undercover Hartford Police detectives investigating drug activity on Cabot Street. After the detectives identified themselves as police officers, Luciano fled and discarded the gun. Luciano was apprehended and the firearm, a loaded 9mm Taurus PT 908 handgun with an obliterated serial number, was recovered.
Luciano has a previous federal conviction for possession of a firearm by a convicted felon and, in May 2010, was sentenced to 60 months of imprisonment for that offense. He also has prior convictions in state court for drug offenses.
Luciano has been detained since his arrest. On December 3, 2018, he pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
This investigation was conducted by the Hartford Police Department and the FBI’s Connecticut Violent Crime Task Force. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Harrison County man sentenced for role in heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – David C. Chalfant, of Bridgeport, West Virginia, was sentenced today to 10 months incarceration for his role in a heroin distribution operation, United States Attorney Bill Powell announced.
Chalfant, age 26, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin” in May 2018. Chalfant admitted to selling heroin in March 2016 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Hampden Woman Sentenced to Five Years of Probation for Conspiracy to Commit Marriage FraudRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Marena Mushero, 28, recently of Hampden, Maine, was sentenced yesterday in U.S. District Court by Judge Lance E. Walker to five years of probation for conspiring to enter a marriage in order to evade U.S. immigration laws.
According to court records, Mushero, a United States citizen, posted an advertisement on an on-line forum, in which she offered to marry a person in need of permanent resident status in exchange for money. On June 13, 2018, she received a response from a Nepalese citizen who was lawfully in the U.S. and living in another state. Mushero agreed to marry him in exchange for cash payments so that he could get a “green card.” On June 25, 2018, Mushero and her coconspirator were married in Brewer, Maine. Before and after the wedding, Mushero received hundreds of dollars via wire transfers from her coconspirator, who continued to live and work in another state.
In imposing the sentence, Judge Walker noted that Mushero is due to complete an eight-month state prison term next week for an unrelated offense.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services, and the Brewer Police Department.
Gretna Preacher Sentenced to Serve 19 Months in Federal Prison for Stealing over $320,000 from ChurchRead the Press Release
NEW ORLEANS, LOUISIANA – JOSEPH R. ALEXANDER, age 60, a resident of Gretna, Louisiana, was sentenced yesterday to 19 months in federal prison for bank fraud. He was indicted in December 2017 and pled guilty in December 2018.
According to papers filed with the court and signed by ALEXANDER, ALEXANDER was the minister at a Church of Christ congregation in Gretna, Louisiana. Starting in 2006 and continuing until December 2013, ALEXANDER stole $321,491 from the church in three different schemes. The first involved his writing church checks to himself, but creating false entries in church ledgers which indicated the checks were being written to legitimate church vendors, when in reality ALEXANDER was paying his bills and funding family vacations to Alaska and Las Vegas, among other places. He also bought gifts for parishioners, shopping at the Apple Store and Victoria’s Secret. He also paid his son’s college tuition with church funds. The second method involved his opening of an online bank account without church permission and paying personal expenses from the online account. Finally, he forged a church elder’s signature on checks which required two signatures. He used these funds for personal expenses.
JOSEPH R. ALEXANDER faced a maximum term of imprisonment of thirty (30) years, a fine of $250,000.00 and five (5) years of supervised release following any term of imprisonment. He was ordered to report to federal prison on July 3, 2019 to begin serving his sentence. He was also ordered to pay $321,491 restitution.
The case was investigated by the United States Postal Inspection Service.
The case was being prosecuted by Assistant U. S. Attorney Carter K. D. Guice, Jr. of the General Crimes Unit.
Greece Man Charged with Lying to the FBIRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Thomas Alonzo Bolin, a/k/a Peter Vincent, 22, of Greece, NY, was charged by criminal complaint with making a false statement to the FBI. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that according to the complaint, in March 2019, the FBI began investigating the defendant for potential federal civil rights and firearms violations.
The FBI obtained records relating to a Facebook account utilized by Bolin under the alias “Peter Vincent.” Those records revealed that the defendant belongs to multiple Facebook groups, such as Skinheads CZ/SK, which includes members who currently and historically have expressed support for a white supremacist ideology. In March of 2019, Bolin, in posts and messages, made statements consistent with white supremacist ideology and referenced the attacks on two mosques in Christchurch, New Zealand, which killed 50 worshippers and civilians, and injured 50 others.
On March 30, 2019, the FBI interviewed the defendant. The complaint states that Bolin admitted to sharing the video of the Christchurch attacks and the link for the gunman's manifesto but denied ever possessing a gun while in New York State. During a subsequent search of a bedroom and storage closet that Bolin is renting at a residence in Greece, investigators recovered a firearm and ammunition.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Grape Street Crips Member Convicted of Murder of Bystander and Related Drug-Trafficking ChargesRead the Press Release
NEWARK, N.J. – A member of the Grape Street Crips gang was found guilty today by a federal jury of racketeering conspiracy, murder in aid of racketeering, conspiracy to distribute heroin, and other drug crimes, U.S. Attorney Craig Carpenito announced today.
Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 34, of Newark, was convicted following a three-week trial before U.S. District Judge Madeline Cox Arleo in Newark federal court. The jury deliberated for four hours before returning the verdicts.
Stafford was charged – along with 13 other defendants –with RICO conspiracy, murder in aid racketeering, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. All 14 defendants have now been convicted.
Another 66 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation, and all have been convicted.
According to documents filed in this case and the evidence at trial:
On June 19, 2010, during a family cookout on Garside Street in Newark, Stafford – a long-time member of the Grape Street Crips – confronted an individual about a drug debt. Stafford and several other gang-members left the cookout to retrieve firearms and later returned. They fired more than a dozen shots at the person whom Stafford originally confronted. A woman who was not part of the dispute was standing on a nearby porch, and was shot and killed. Two other people were wounded and survived.
Stafford was also involved in the distribution of heroin from 2003 through 2015. Stafford sold heroin and cocaine at the James Baxter Terrace housing complex from 2003 until it was demolished in 2009. After Baxter Terrace was torn down, Stafford continued to distribute heroin and cocaine at the Wynona Lipman public-housing complex. In 2014, Stafford and a conspirator sold to DEA confidential informants nearly $20,000 worth of heroin in separate transactions.
Stafford faces a mandatory life sentence in connection with the murder in aid of racketeering. For the conspiracy to distribute heroin, Stafford faces a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison. For the RICO conspiracy, Stafford faces a maximum term of life in prison. Sentencing is scheduled for June 12, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and special agents of the U.S. Attorney’s Office with the investigation leading to today’s conviction. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, Assistant U.S. Attorney Barry A. Kamar of the Criminal Division in Newark, and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Franklinton Man Sentenced for Distribution of Child PornographyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that on April 3, 2019, in federal court, United States District Judge James C. Dever III sentenced aNDREW DAVID PHILLIPS, 28, of Franklinton, North Carolina to 210 months imprisonment, followed by 10 years of supervised release.
PHILLIPS was named in a Criminal Information filed on February 13, 2018 charging him with Distribution of Child Pornography. On March 20, 2018, PHILLIPS pled guilty to that charge.
Based on the investigation, PHILLIPS used a computer to store at least 2,210 images of child pornography. In addition, PHILLIPS traded many of the images and videos with other individuals, in exchange for pornographic images of children.
Investigation of this case was conducted by the Raleigh Police Department, as well as the Federal Bureau of Investigation (FBI). Assistant United States Attorney Donald R. Pender represented the government.
Former Reality Television Series “Bad Girl” Sentenced to 1 Year in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SHANNADE CLERMONT was sentenced to one year in prison for making and attempting more than $20,000 in fraudulent charges using debit card information she stole from a man who died during the course of a prostitution date with her. CLERMONT pled guilty to one count of wire fraud in November 2018 before U.S. District Judge Naomi Reice Buchwald, who also presided over today’s sentencing.
U.S. Attorney Geoffrey S. Berman said: “Former reality TV ‘Bad Girl’ Shannade Clermont lived up to her on-screen persona, as she admitted to stealing the debit card information from a man she visited for a prostitution date in his Manhattan apartment. When the man died of an overdose, instead of notifying the authorities or calling for help, Clermont callously chose to use the man’s debit card information to make tens of thousands of dollars in illegal purchases. As Shannade Clermont has now learned, her real-life bad behavior has real-life consequences, and has now landed her in federal prison.”
According to the allegations contained in the Complaint and Indictment to which CLERMONT pled guilty and other filings in the case:
The New York City Police Department (“NYPD”) and the United States Attorney’s Office for the Southern District of New York had been investigating the overdose death of a male individual (the “Victim”), who was found dead on the morning of February 1, 2017, in his apartment at 250 East 53rd Street in Manhattan, New York (the “Victim Apartment”). During the course of that investigation, law enforcement learned that CLERMONT visited the Victim for a prostitution date at the Victim Apartment the previous evening (January 31, 2017), and stole the information for two debit cards in his wallet. CLERMONT admitted that she stole the debit card information after the Victim passed out during the prostitution date. CLERMONT then used the stolen debit card information to make or attempt to make more than $20,000 in fraudulent purchases during the months following the Victim’s death, including to pay her rent and phone bills, to purchase flights, and to make several online purchases of thousands of dollars of luxury clothing and other merchandise, including, among other items, Valentino shoes, a Phillip Plein jacket, Beats headphones, as well as a gift certificate at a beauty salon.
CLERMONT also created and used a fake email account in the Victim’s name to falsely represent to third parties that she was the Victim, in order to commit fraud using the Victim’s identity. Specifically, on April 3, 2017, approximately two months after the Victim’s death, the fake email account was used to register an account with Western Union in the name of the Victim, which was used to initiate a fraudulent money transfer of $1,000 from the Victim to CLERMONT.
In an interview by law enforcement after she was arrested, Clermont stated, in substance and in part, that she committed this crime at least in part due to the stress of keeping up her public image.
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In addition to the prison sentence, CLERMONT, 25, of Los Angeles, California, was sentenced to three years of supervised release and ordered to forfeit $5,775.27 and pay $4,696.40 in restitution.
Mr. Berman praised the outstanding investigative work of the NYPD.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Former Chesapeake Sheriff’s Deputy Pleads Guilty to CorruptionRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to corruption charges related to his smuggling of drugs and other contraband into the Chesapeake City Jail.
According to court documents, Jenis Leroy Plummer, Jr., 34, used his official position as Chesapeake Sheriff’s Deputy to smuggle heroin, cocaine, cell phones, e-cigarettes and other contraband into the Chesapeake City Jail. In exchange, conspirators gave Plummer over $6,500 in cash. From July 2017 through January 2019, Plummer knowingly and intentionally conspired with an inmate in the Chesapeake City Jail to engage in this scheme. On numerous occasions throughout the conspiracy, Plummer contacted the inmate’s girlfriend and arranged to meet her at various locations in Hampton Roads to pick up the contraband. At these meetings, the inmate’s girlfriend gave Plummer the illicit contraband in blue latex gloves. Plummer then smuggled the contraband into the jail and delivered the items to the inmate.
In exchange for using his official position, numerous individuals connected to the inmate paid Plummer with cash, via CashApp, and via PayPal. On one occasion, law enforcement observed the inmate’s girlfriend drop a black sock containing contraband at an arranged meeting location in a cul-de-sac on Horse Run Drive in Chesapeake. Law enforcement recovered the black sock and replaced the suspected bags of narcotics with two bags of fake narcotics and returned the black sock to its original location. Thereafter, law enforcement observed Plummer travel to the cul-de-sac and retrieve the black sock containing contraband that included the fake narcotics. After being approached by law enforcement, Plummer, and his conspirators, separately admitted their involvement in the conspiracy.
Plummer pleaded guilty to and faces a maximum penalty of 20 years in prison when sentenced on June 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorneys Melissa E. O’Boyle and Joseph E. Depadilla are prosecuting the case.
The Chesapeake Sheriff’s Office has provided significant assistance and full cooperation during the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-25.
Former CEO of Tennessee Pain Management Company Convicted for Role in Approximate $4 Million Medicare Kickback SchemeRead the Press Release
A federal jury sitting in Nashville, Tennessee found the former CEO of a Tennessee pain management company guilty today for his role in an illegal kickback scheme involving approximately $4 million in tainted durable medical equipment (DME) claims to Medicare.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta region, Special Agent in Charge John F. Khin of the Department of Defense, Defense Criminal Investigative Service's (DCIS) Southeast Field Office, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (CI) Charlotte Field Office – Nashville Division and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
After a seven-day trial, John Davis, 41, of Franklin, Tennessee, the former CEO of Comprehensive Pain Specialists (CPS) of Gallatin, Tennessee, was convicted of all counts including, one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violating the Anti-Kickback Statute. Sentencing has been scheduled for later this year before U.S. District Judge William L. Campbell Jr. of the Middle District of Tennessee, who presided over the trial.
According to evidence presented at trial, Davis abused his position as CEO of CPS to arrange for referrals of Medicare DME orders to his co-conspirator Brenda Montgomery and her company, CCC Medical, located in Camden, Tennessee. Evidence showed that Davis operated a shell company called ProMed Solutions (ProMed), which he had registered in the name of his wife. Despite having no involvement with ProMed and performing no work, Davis’ wife and ProMed received over $770,000 in illegal kickbacks. Together, Davis and Montgomery pocketed over $2.4 million dollars in improper reimbursement from Medicare. Davis used company funds from CPS to pay bonuses to CPS providers who ordered DME for Medicare beneficiaries and referred those orders to CCC Medical. Davis would receive 60 percent of the Medicare profit from those referrals, while the company he ran footed the bill.
Evidence at trial also showed that in April and May of 2015, concerned about the size of the kickback payments CCC Medical was making to Davis, he and Montgomery concocted the sham sale of ProMed. ProMed had no assets, no employees, no equipment, no office space and no customers other than CPS. Evidence further showed that Davis and Montgomery set the price for the sham sale based upon the average monthly kickbacks that Davis had been paid for the previous eight months. When CPS referrals slowed, Davis agreed to reduce the purported “purchase price” from $200,000 to $150,000. Once Davis had received the last check for the sham sale, he went about cutting off referrals to CCC Medical.
Brenda Montgomery pleaded guilty in January to one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violations of the Anti-Kickback Statute. She is currently scheduled to be sentenced on May 3, 2019.
This case was investigated by HHS-OIG, DCIS, Internal Revenue Service-Criminal Investigation and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Tennessee. The case was prosecuted by Trial Attorney Anthony Burba of the Fraud Section and Assistant U.S. Attorney Henry Leventis of the Middle District of Tennessee.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former CEO of Tennessee Pain Management Company Convicted for Role in Approximate $4 Million Medicare Kickback SchemeRead the Press Release
NASHVILLE, Tenn. April 4, 2019 – A federal jury sitting in Nashville, Tennessee, found the former CEO of a Tennessee pain management company guilty today for his role in an illegal kickback scheme involving approximately $4 million in tainted durable medical equipment (DME) claims to Medicare, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Joining in making the announcement were Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Atlanta region, Special Agent in Charge John F. Khin of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, Special Agent in Charge Matthew Line of the IRS-Criminal Investigation, Charlotte Division-Nashville Field Office, and Director David Rausch of the Tennessee Bureau of Investigation.
After a seven-day trial, John Davis, 41, of Franklin, Tennessee, the former CEO of Comprehensive Pain Specialists (“CPS”) of Gallatin, Tennessee, was convicted of all counts including, one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violating the Anti-Kickback Statute. Sentencing will be scheduled for later this year before U.S. District Judge William L. Campbell Jr., who presided over the trial.
According to evidence presented at trial, Davis abused his position as CEO of CPS to arrange for referrals of Medicare DME orders to his co-conspirator Brenda Montgomery and her company, CCC Medical, located in Camden, Tennessee. Evidence showed that Davis operated a shell company called ProMed Solutions (“ProMed”), which he had registered in the name of his wife. Despite having no involvement with ProMed and performing no work, Davis’ wife and ProMed received over $770,000 in illegal kickbacks. Together, Mr. Davis and Montgomery pocketed over $2.4 million dollars in improper reimbursement from Medicare. Davis used company funds from CPS to pay bonuses to CPS providers who ordered DME for Medicare beneficiaries and referred those orders to CCC Medical. Davis would receive 60% of the Medicare profit from those referrals, while the company he ran footed the bill.
Evidence at trial also showed that in April and May of 2015, concerned about the size of the kickback payments CCC Medical was making to Davis, he and Montgomery concocted the sham sale of ProMed. ProMed had no assets, no employees, no equipment, no office space, and no customers other than CPS. Evidence further showed that Davis and Montgomery set the price for the sham sale based upon the average monthly kickbacks that Davis had been paid for the previous 8 months. When CPS referrals slowed, Davis agreed to reduce the purported “purchase price” from $200,000 to $150,000. Once Davis had received the last check for the sham sale, he went about cutting off referrals to CCC Medical.
Brenda Montgomery pleaded guilty in January 2019 to one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violating the Anti-Kickback Statute. She is currently scheduled to be sentenced on May 3, 2019.
This case was investigated by HHS-OIG; Defense Criminal Investigative Service; the Internal Revenue Service-Criminal Investigation; and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the U.S. Attorney’s Office for the Middle District of Tennessee and the Criminal Division’s Fraud Section. The case was prosecuted by Assistant U.S. Attorney Henry Leventis of the Middle District of Tennessee and Trial Attorney Anthony Burba of the Fraud Section.
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Former Administrator of Two Houston Home Health Companies Sentenced to Prison in $20 Million Medicare Fraud SchemeRead the Press Release
The former Director of Nursing and Administration of two Houston, Texas-based businesses was sentenced today to 10 years in prison for her role in a $20 million Medicare fraud scheme involving false and fraudulent claims for home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region made the announcement.
Evelyn Mokwuah, 54, of Pearland, Texas, former Director of Nursing and Administration of Beechwood Home Health (Beechwood) and Criseven Health Management Corporation (Criseven), both located in Houston, was sentenced by U.S. District Judge Gray H. Miller of the Southern District of Texas. Judge Miller also ordered Mokwuah to pay $20,462,607.21 in restitution to Medicare. On Aug. 10, 2017, following a four-day trial, a jury found Mokwuah guilty of one count of conspiracy to commit health care fraud and four counts of health care fraud.
According to evidence presented at trial, from 2008 to 2016, Mokwuah and others engaged in a scheme to defraud Medicare of approximately $20 million including the submission of fraudulent claims for home health services at Beechwood and Criseven that were not provided, not medically necessary or both. According to the trial evidence, Mokwuah falsely certified and billed for patients who were not homebound or did not qualify for home health services. Along with others, Mokwuah also falsified patient records to show that patients were homebound when they were not; paid patient recruiters to recruit Medicare beneficiaries to Beechwood and Criseven; and paid doctors to certify false plans of care for Medicare beneficiaries so that Beechwood and Criseven could bill Medicare for those services.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorneys Scott Armstrong and Kevin Lowell of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Five Aliens Indicted on 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 indictments charging ALEJANDRO AVILEZ-PEREZ, age 41, of Mexico, COURTNEY ANTHONY BECKFORD, age 36, of Jamaica, JHONAS CAMERO-SALINAS, age 26, of Mexico, JORGE AMILCAR RAMOS-LOPEZ, age 46, of Guatemala, and JUAN ANTONIO TORRES-NAVA, age 26, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, RAMOS-LOPEZ, previously deported two times and found in Greene County (where he was convicted of assault), and CAMERO-SALINAS, previously deported and found in Wake County (where he was convicted of a domestic-violence related crime), would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
BECKFORD, previously deported and found in Cumberland County, is alleged to have been previously deported subsequent to a felony conviction (cocaine and LSD possession). Therefore, if convicted, would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to an aggravated felony, AVILEZ-PEREZ, previously deported twice after a federal conviction for possession with intent to distribute cocaine and found in Wake County, and TORRES-NAVA, previously deported twice after a conviction for delivery of cocaine in Wake County and recently found in Johnston County, 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 indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Final Defendant Sentenced in Stockton Tax Refund Fraud RingRead the Press Release
SACRAMENTO, Calif. — Jeffrey S. Grady, 35, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to two and a half years in prison and ordered to pay more than $25,000 in restitution for conspiracy to submit false claims to the IRS and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
“The harm caused by Mr. Grady and his co-defendants goes beyond simply cheating the government,” said Kareem Carter, IRS Criminal Investigation Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that has a devastating impact on the victims. Identity theft is a pervasive crime and stopping it remains a top priority for us.”
According to court documents, Grady and his co-conspirators submitted tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. Grady obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, Grady took part in submitting at least 150 false tax returns, requesting approximately $94,140 in tax refunds. The IRS paid more than $25,000 in tax refunds based on those fraudulent tax returns. Grady was one of four defendants charged in the same conspiracy and the last to be sentenced.
Christopher Grady, of Stockton, was sentenced on July 13, 2017, to approximately 38 months of time served in custody and ordered to pay more than $250,000 in restitution.
Jacob Cook, of Stockton, was sentenced on September 7, 2017, to serve 30 months in prison and ordered to pay more than $69,000 in restitution.
Tosh Babu, of Stockton, was sentenced on September 21, 2017, to serve 30 months in prison and ordered to pay more than $94,000 in restitution.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
District Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
WASHINGTON – Kelby Gordon, 32, of Washington, D.C., was sentenced today to 10 years in prison for distributing narcotics in Washington, D.C. – a prison term that he must serve in addition to the 37-year prison term he recently was given in a murder case.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Gordon was found guilty by a jury on Jan. 10, 2019 of unlawful distribution of fentanyl. The verdict followed a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Trevor N. McFadden. The sentence is to run consecutively to the 37-year prison term that Gordon is serving for a murder in Southeast Washington. In sentencing Gordon, Judge McFadden highlighted the danger of fentanyl abuse to the community; a report by the District of Columbia Office of the Chief Medical Examiner cited fentanyl and its analogs as a key factor in a drastic increase in recent years of overdose deaths in the city.
The narcotics charge arose from a long-term investigation initiated by the Washington D.C. FBI/MPD Safe Streets Task Force into the violence and associated narcotics trafficking in the area of Birney Place SE. Gordon and numerous other defendants were indicted in December 2017 for their roles in the operation. A total of 12 people faced charges in the investigation; 10 pled guilty and two, including Gordon, were found guilty of charges at trial.
The investigation determined that from at least January 2016 through December 2017, the various defendants maintained a drug trafficking organization that supplied distribution amounts of crack cocaine, methamphetamine, and heroin to drug dealers in the District of Columbia, Maryland and Virginia. Much of the activity took place in the Birney Place area of Southeast Washington. In particular, the investigation showed that several of the defendants regularly sold crack cocaine and heroin in the 2600 block of Birney Place SE.
According to the government’s evidence, an undercover law enforcement officer met with Gordon during the investigation to purchase heroin. The evidence showed that the substance he actually sold the officer that day was a fentanyl analog.
Gordon was sentenced on Dec. 14, 2018, to 37 years in prison for killing an innocent bystander and firing into an occupied bedroom during a broad-daylight shooting in Southeast Washington. According to the government’s evidence, on March 24, 2016, at approximately 11:15 a.m., the victim, Gabriel Turner, was walking in a cut-through behind the 2600 block of Birney Place SE, headed to a nearby bus stop. Mr. Turner, 46, who had intellectual disabilities and who was working at the FBI as a janitor, had just finished having breakfast with his mother – as he had every morning. Gordon, meanwhile, was in the area and, after seeing another man pull out a large amount of money, decided to rob that man near the mouth of the cut-through.
However, as Gordon attempted to rob the man, the man began to pull out his own firearm. Gordon, in his own words, gave the man no chance, and pulled his gun out first. The two men began running down the cut-through behind Mr. Turner.
Unbeknownst to Mr. Turner, Gordon planted his feet and began firing towards the man, who fled in the same direction that Mr. Turner was walking. The man who Gordon was targeting weaved around Mr. Turner and escaped, but a single bullet struck Mr. Turner in the upper back as he ducked. The bullet lodged itself in Mr. Turner’s sinus – killing him almost instantly. Two other bullets flew into an occupied apartment across the street, just missing the head of a second victim as he returned to bed.
In announcing today’s sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended those who investigated the case from the Safe Streets Task Force, including the FBI, MPD, and the U.S. Drug Enforcement Administration (DEA). They also acknowledged the work of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Kevin L. Rosenberg; Supervisory Paralegal Specialist Mary Downing; Paralegal Specialist Candace Battle, and Legal Assistant Peter Gaboton. They additionally expressed appreciation for the efforts of Assistant U.S. Attorneys Lindsey Merikas and Monica Trigoso, who investigated and prosecuted the murder case.
Finally they expressed appreciation for the work of Assistant U.S. Attorney Nihar R. Mohanty, who investigated and prosecuted the narcotics case.
Company Charged with Harboring Illegal AliensRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that AA STUCCO AND MASONRY, LLC., a company that does business within the Eastern District of Louisiana, was charged yesterday in a one-count bill of information with harboring two illegal aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iii).
If convicted of the felony, the company faces up to 5 years of probation, a fine of $500,000, and a $400 special assessment fee.
U.S. Attorney Strasser reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Civil Lawsuit Filed to Enjoin Local Farm’s Continuing Misbranding of Meat/Poultry Products and Evasion of Food Safety LawsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that his office has filed a civil lawsuit to enjoin Miller’s Organic Farm of Bird-in-Hand, Pennsylvania, and its owner, Amos Miller, from continuing to violate federal food safety laws. The violations include Miller’s selling non-federally-inspected, misbranded meat and poultry products to consumers located throughout the United States.
The United States brings the action on behalf of the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture. FSIS is responsible for ensuring that commercially sold meat, poultry, and egg products are safe, wholesome, and correctly labeled and packaged. A principal way that FSIS fulfills its mission is by inspecting meat and poultry products before they reach consumers.
The suit is part of the United States’ continuing efforts to bring Miller’s into compliance with federal food safety laws. In late 2015, for example, the Food and Drug Administration, which regulates milk: (1) isolated and identified Listeria monocytogenes (L. mono) bacteria in samples of Miller’s raw milk; (2) through whole genome sequencing, found the bacteria to be genetically similar to L. mono in two individuals who had developed listeriosis (with one dying) after consuming raw milk; and (3) named Miller’s as the “likely source” of those infections.
In follow-up, FSIS sought to assess whether L. mono might be contaminating Miller’s meat and poultry products. But Mr. Miller refused to grant FSIS entry to the farm’s meat-and-poultry-related facilities, even after the agency served him with a subpoena. He erroneously contended that, as a self-organized private membership association, Miller’s is beyond the reach of federal food safety regulation.
The United States then sued Miller’s in the Eastern District of Pennsylvania, to enforce the subpoena and USDA’s access rights under the Federal Meat Inspection Act (FMIA) and the Poultry Products Inspection Act (PPIA). See United States v. Miller’s Organic Farm and Amos Miller, EDPA No. 16-cv-2731. After the court enforced the subpoena, FSIS cited Miller’s with FMIA and PPIA misbranding and other violations, which have since continued. This is believed to be the first-ever suit of its kind where FSIS is seeking an injunction against a so-called “private membership association” farm business to enforce food safety laws.
“With today’s lawsuit, food establishments in this District are on further notice that my Office will not ignore efforts to evade federal food safety laws and to hinder agencies like FSIS from carrying out their public safety missions,” said U.S. Attorney McSwain. “We will not allow commercial sellers to ignore the rule of law, make up their own sets of rules, and attempt to hide behind a private-membership-association structure in an effort to thwart federal laws. Congress enacted food safety laws to ensure that the nation’s food supply is safe, wholesome, and properly labeled and packaged. It’s our job to enforce those democratically enacted laws, which we will do in this case.”
“FSIS investigators work hard every day to protect consumers,” said Carmen Rottenberg, FSIS Administrator. “We take our job to protect public health very seriously, with swift action to ensure that American families have safe food to eat. Flagrant failure to meet the regulations will not be tolerated.”
Assistant United States Attorney Gerald Sullivan is litigating this case on behalf of the United States.
Chicago Man Sentenced for Marathon County Heroin ConspiracyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael A. Terrell Jr., 33, Chicago, Illinois, was sentenced on April 2 by U.S. District Judge William M. Conley to 6 ½ years in federal prison for conspiring to distribute heroin. Terrell pleaded guilty to this charge on January 15, 2019.
At sentencing, Judge Conley found that from April 2015 to July 2016, Terrell participated in a heroin trafficking conspiracy in the Wausau, Wisconsin area. Terrell and his co-conspirators used a cellular telephone facilitating and distributing heroin to calling customers. Specifically, the customers called a cellular telephone number given out by Terrell and his co-conspirators, ordered heroin from the person on the other end of the phone, and then conspiracy members delivered the heroin on behalf of the organization. Terrell and his co-conspirators were responsible for distributing at least 700 grams but less than 1 kilogram of heroin during the conspiracy.
In sentencing Terrell to 6 ½ years, Judge Conley stressed the large amount of heroin distributed by Terrell and his co-conspirators and the negative impact the heroin distribution had on the community.
Co-conspirators Alfred Wilson, Kyle Anderson, and Daryl Harris Jr. were sentenced to 7, 2 ½, and 11 years respectively.
The charge against Terrell was the result of an investigation conducted by the Marathon County Special Investigations Unit, Wausau Police Department, Marathon County Sheriff’s Office, and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney David J. Reinhard.
Cedar Rapids Heroin Dealer Sentenced to More than Two Years’ ImprisonmentRead the Press Release
A man who distributed heroin and fentanyl was sentenced April 3, 2019, to more than two years in federal prison.
Julius Sullivan, age 26, from Chicago, Illinois, received the prison term after an October 25, 2018, guilty plea to distribution of heroin within a protected location. On July 31, 2018, Sullivan distributed heroin in Cedar Rapids, near a playground located at the Time Check Park.
Sullivan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sullivan was sentenced to 30 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Sullivan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by Drug Enforcement Administration and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0080.
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Buffalo Man Sentenced to Prison for Receiving Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Zak, 41, of Buffalo, NY, who was convicted of receipt of child pornography, was sentenced to 72 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that in September 2015, Federal Agents searched Zak’s residence after determining he had accessed a site on the dark web dedicated to the exploitation of children. Agents seized various electronics, and a forensic examination revealed that the defendant was in possession of over 100,000 images and videos of child pornography. Zak was released on bail, and in March 2017, was again found in possession of over 500 images of child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Buffalo Man Pleads Guilty to Illegal Gun Possession ChargeRead 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 Errick Roseboro, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to being a person prohibited from possessing a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles J. Volkert, Jr., who is handling the case, stated that on October 21, 2018, the Buffalo Police Department stopped the defendant’s vehicle for a traffic infraction. Officers found Roseboro in possession of a loaded firearm and marijuana. Subsequent investigation determined that that the defendant was a habitual user of marijuana. As such, he is prohibited from possessing a firearm.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for August 19, 2019, before Judge Vilardo.
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Boone County Man Sentenced to 12 Years for Transporting Child PornographyRead the Press Release
COVINGTON, Ky. — Kerry M. Kennedy, 30, of Florence, Kentucky, was sentenced Thursday to 12 years in federal prison, by United States District Judge David Bunning, for Transportation of Child Pornography.
Kennedy previously admitted that, in July 2018, he posted approximately 88 videos depicting sexually explicit images of children to his online Dropbox account. Law enforcement found hundreds more images of child pornography after executing search warrants on this same account. In his guilty plea, Kennedy also admitted that he used messaging applications such as “Kik” and “Chat Now!” to get and share child pornography with others. He confirmed that when he downloaded files from these applications, they would automatically upload to his Dropbox account.
Under federal law, Kennedy must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a term of 15 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge of the FBI jointly made the announcement.
The investigation was conducted by the Federal Bureau of Investigation. The United States was represented by Assistant United States Attorney Wade T. Napier.
Belgrade man sentenced for firearm violationRead the Press Release
BILLINGS—A Belgrade man who admitted lying when he bought a semi-automatic pistol in Livingston was sentenced today to nine months of time served and one year of supervised release, U.S. Attorney Kurt Alme said.
Stacey James Wondra, 26, pleaded guilty on Dec. 6 to false statement during firearms transaction.
U.S. District Judge Susan Watters presided.
Prosecutors said evidence showed that Wondra was charged in Gallatin County in December 2017 with felony burglary and was released on conditions, including he not possess a firearm. On March 14, 2018, Wondra bought a 9mm semi-automatic pistol at a pawn shop in Livingston. On the paperwork for the transaction, Wondra answered “no” to whether he was under indictment or information for any felony charges. Wondra’s answer deceived the firearms dealer about his legal status for buying a firearm.
Five days later, Livingston police responded to a report of a person being held captive with a gun at a motel. Wondra and another person were hanging out at the motel and others confirmed that the pair had been handling the 9mm pistol throughout the weekend. The two got into an argument in the motel room, prompting law enforcement’s initial response. Wondra told officers he had purchased the gun a few days earlier, and the gun was found during a search of the room. Wondra then went back to the pawn shop that same day and pawned the gun he had purchased five days earlier.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Arizona drug trafficker sentenced in meth conspiracyRead the Press Release
BILLINGS—An Arizona man who repeatedly brought pound loads of methamphetamine to Billings for distribution was sentenced today to nine years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Wilfrido Varelas-Rubio, 24, of Glendale, AZ, pleaded guilty earlier to possession with intent to distribute meth.
U.S. District Judge Susan Watters presided.
In April 2018, law enforcement drug task agents began investigating a meth trafficking conspiracy that was bringing large quantities of the drug to the Billings area, prosecution evidence showed. Agents learned from a variety sources that Varelas-Rubio led the conspiracy and repeatedly brought meth to the community. On June 15, 2018, agents were notified that Varelas-Rubio was in town, selling meth and staying at a hotel.
Investigators got a search warrant for Varelas-Rubio’s room and found him there. A search turned up 14 ounces of individually wrapped meth, $6,800 cash, four cell phones and a storage unit code. Varelas-Rubio was taken to the Yellowstone County Detention Facility as agents went to a storage unit, where Varelas-Rubio had rented a secured parking space. Officers seized a Buick Lucerne that was in the space and searched it after getting another warrant. Agents found about 3.5 pounds of meth in a sophisticated concealment compartment. Lab tests determined that all of the meth seized in the case was substantially pure. The total amount of meth seized was the equivalent of about 15,600 doses.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Arizona Woman Pleads Guilty to Making False Statements to a Financial InstitutionRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that VALERIE SCHONES, age 54, of Tucson, Arizona, a former employee of an undisclosed entity, XYZ Financial, LLC, also located in Tucson, Arizona, has pleaded guilty yesterday to a Bill of Information charging her with Making False Statements to a Financial Institution.
According to court documents, beginning in or around October 2008 and continuing to on or about May 2009, SCHONES, along with co-defendants PATRICK HEALEY and JARED CASTELLAW made false statements to the Federal Housing Administration “FHA” in order to assist low-income borrowers wishing to purchase homes in St. Bernard in qualifying for FHA insured loans that they would not otherwise have qualified for. In total, due to the acts of the defendants, the FHA suffered a loss in excess of $852,415.
SCHONES faces a maximum of 30 years imprisonment, a fine of not more than $1,000,000, supervised release of up to 5 years, and a special assessment of $100. The Court set sentencing in this matter for July 10, 2019 at 2:00 p.m.
U.S. Attorney Strasser praised the work of the Department of Housing and Urban Development, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sharan E. Lieberman and Edward J. Rivera.
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Area Man Found Guilty of Sexually Abusing His Niece, Beginning When She Was 11 Years OldRead the Press Release
WASHINGTON – A 49-year-old man, formerly of Washington, D.C., has been found guilty of multiple charges for sexually abusing his niece when she was 11 and 12 years old, U.S. Attorney Jessie K. Liu announced today.
The defendant, who is not identified here to protect the privacy of the victim, recently resided in Northwest Washington with his wife and children. He was found guilty by a jury on April 3, 2019, of four counts of second-degree child sexual abuse with aggravating circumstances, misdemeanor sexual abuse of a child with aggravating circumstances, and assault. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Craig Iscoe ordered that he be held without bond until sentencing on May 31, 2019.
According to the government’s evidence at trial, the victim lived in Florida with her mother during the year, but visited her father and his family in the District of Columbia every summer. When she visited the District of Columbia, she spent part of her time with the defendant and his family.
In the summer of 2016, when the victim was 11 years old, the defendant began sexually abusing her during these visits. The nature of his abuse escalated over time. The defendant pressured the victim not to tell, and she was afraid to disclose the abuse for fear of not being believed and of causing stress within the family.
Following the defendant’s final act of abuse in June 2017, the victim could not keep the abuse a secret anymore, and she disclosed the abuse to her aunt, the defendant’s wife. The victim later disclosed to her father, as well, and the abuse was then reported to the Metropolitan Police Department. The defendant was arrested in July 2017.
In announcing the verdict, U.S. Attorney Liu praised the work of members of the Youth and Family Services Division of the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Kenechukwu Okocha, who investigated and indicted the case; Appellate Division Deputy Chief John Mannarino; Victim/Witness Assistance Unit Chief Sarah McClellan; Paralegal Specialists Brenda C. Williams and D’Yvonne Key; Victim/Witness Advocate Lezlie Richardson; Victim/Witness Services Coordinator La June Thames; and Litigation Technology Specialist Jeanie Latimore-Brown.
Finally, U.S. Attorney Liu commended the work of Assistant U.S. Attorney Jennifer B. Loeb, who prosecuted the case at trial.
Amarillo Man Sentenced for Shooting at Wife at Public Middle SchoolRead the Press Release
An Amarillo man who shot at his wife during a youth football practice session was sentenced yesterday to 2 years and 9 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Stephen Andrew Hale pleaded guilty to discharge of a firearm in a school zone in December 2018.
According to his plea documents, Mr. Hale – who was under a protective order at the time of the incident – confronted his wife at Horace Mann Middle School’s football field in August 2018.
As the argument escalated, he gave chase, shooting five rounds from his Ruger .357 magnum revolver in her direction. Though around 50 parents and children were present, no one was injured. When law enforcement arrested Mr. Hale shortly thereafter, officers discovered the firearm, loaded, in the front seat of his car.
“Anytime we can use federal firearm laws to stem the tide of violence against women, we will,” said U.S. Attorney Nealy Cox. “Randomly firing a weapon at a public school is unlawful, no matter who the intended victim – and the fact that Mr. Hale targeted his wife makes this incident all the more troubling. In fact, because of the protective order against him, Mr. Hale was prohibited from having a gun at all.”
Research shows that abusers with a gun in the home are five times more likely to kill their partners than abusers who don’t have that same access to a gun. The U.S. Attorney recently announced an initiative designed to fight domestic violence using existing federal firearm laws.
“Mr. Hale’s actions endangered the lives of his family and approximately 50 innocent people,” stated ATF Special Agent in Charge of the Dallas Field Division Jeffrey C. Boshek II. “One instance of violent crime against an intimate partner or family member is one too many. Firearms do not belong in the hands of domestic violence offenders.”
The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Amarillo Police Department, and the Potter County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joshua Frausto prosecuted the case.
Alva Man Arrested for Interstate Murder PlotRead the Press Release
OKLAHOMA CITY – VERNON WAYNE BROCK, 69, of Alva, has been charged by complaint with hiring someone to commit murder, announced First Assistant U.S. Attorney Robert J. Troester.
According to an affidavit in support of an arrest warrant filed in federal court today, Brock hired a Kansas resident to commit a murder in Oklahoma City. The individual from Kansas is alleged to have contacted the FBI and cooperated in the investigation.
The affidavit states that Brock and the individual from Kansas are partners in Oklahoma vape shops and that Brock was upset with a former vape shop employee who refused to continue a sexual relationship with him. Brock allegedly wanted the individual from Kansas to arrange the murder of the former employee’s boyfriend in Oklahoma City in exchange for $5,000.
According to the affidavit, Brock identified the boyfriend by sending a picture to the individual from Kansas and confirming "that’s the guy we want dead." The affidavit includes several alleged quotes by Brock from recorded conversations between Brock and the individual from Kansas, including:
- "Are they going to thump her around a little bit? And do him? Cause that’s what I wanted."
- "I’d rather do him, thump her and I mean thump her hard. And tell her if she says one word to the cops about anything there will be someone come back to get her . . . ."
- "The main thing is for them to throw the scent off of everything. . . . What they want to say to him is, . . . you didn’t pay us for our drugs or something like that, and you owe us a million dollars, then pop, before he has anything to say either way."
FBI agents arrested Brock on the afternoon of April 3, with the assistance of the Woods County Sheriff’s Office, after Brock delivered a $5,000 check to the individual from Kansas at a café in Harper, Kansas. Brock appeared this afternoon for an initial appearance before United States Magistrate Judge Shon T. Erwin.
If found guilty of murder-for-hire, Brock faces a potential penalty of ten years in prison, a fine of $250,000, and three years of supervised release.
This case is a result of an investigation by the FBI–Oklahoma City Field Office. Prosecuted by Assistant U.S. Attorney Ashley Altshuler, the case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
The public is reminded that these charges are merely allegations and that Brock is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced CECIL EUGENE CROW, 56, and REBECCA ALLISON McINTOSH, 59, both of Grand Junction, Colorado for firearm and drug related charges. Crow was sentenced to eighty months of imprisonment to be followed by sixty months of supervised release for the charge of carrying a firearm during and in relation to a drug trafficking crime. McIntosh received seventy months imprisonment for the charge of possession with intent to distribute methamphetamine and will be on supervised release for three years. Both were arrested in Cortez, Colorado.
Beginning in February of 2017, the Wyoming Division of Criminal Investigation (DCI) began an investigation into a drug trafficking organization in the Natrona County, Wyoming area. Through the investigation, agents with the DCI Central Enforcement Team obtained information that Rebecca McIntosh was traveling to California, obtaining large quantities of methamphetamine and returning to Natrona County in order to deliver the methamphetamine to a co-conspirator. As part of the investigation, agents were tracking McIntosh’s vehicle movements as she traveled from Colorado to California and then back toward Wyoming. Later with the help of the Wyoming Highway Patrol, DCI agents conducted a traffic stop on McIntosh’s vehicle. McIntosh and her husband, Cecil Eugene Crow, were found in the vehicle. A search of the vehicle led to the discovery of one pound of methamphetamine, which was hidden in a secret compartment, and a loaded firearm.
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. Former 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.
Wednesday 3 April 2019
Youngstown man indicted on cocaine trafficking chargeRead the Press Release
A Youngstown man was indicted on cocaine trafficking charges.
A grand jury charged Frank Martinez, Jr., 33, with one count of with possession with intent to distribute at least five kilograms of cocaine.
Martinez knowingly and intentionally possessed with the intent to distribute at least 5 kilograms of cocaine on March 7, according to the indictment.
Prosecutors are also seeking to forfeit a Glock 9 mm pistol seized on March 7, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique
to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by Youngstown Police Department, Mahoning Valley Law Enforcement Task Force and the FBI. The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Woman Pleads Guilty to Methamphetamine Conspiracy that Resulted in Shooting Death of Co-ConspiratorRead the Press Release
St. Louis, MO – Kathleen Marie Hydar, 31, of Jefferson County, pled guilty to federal charges of conspiracy to possess with the intent to distribute over 500 grams of methamphetamine and sentencing has been set for July 9, 2019.
According to court documents, in the evening hours of October 10, 2017 and into the early morning hours of October 11, 2017, Hydar invited co-defendant Courtney Brown to come from the City of Saint Louis to Jefferson County, Missouri. Hydar had informed Brown that she knew of a way for them to “make some money” that evening. Brown picked up Hydar in a vehicle being driven by Ramone Thomas. Also in the car were co-defendants Paris Devine, Raymond Seay, and an unindicted subject.
When Hydar got into the vehicle, she informed Devine and other members of the group that she knew of a location where they could steal large amounts of methamphetamine, United States currency, and firearms. Hydar instructed the driver, Ramone Thomas, to make a stop at another residence prior to going to the aforementioned target location. While at this residence, Hydar described, in detail, where Brown, Devine, Seay, and Ramone Thomas could locate a large amount of methamphetamine, firearms, and currency within a trailer owned by victim Chad Coffman. After describing where the others could locate these items, Hydar got back into the vehicle and proceeded to direct the driver, Ramone Thomas, to the victim’s residence. Hydar also made a phone call to victim Chad Coffman to ensure he would not be home when the group arrived to burglarize his trailer.
When they arrived at the victim’s residence shortly before 4:00 a.m. on October 11, 2017, Brown, Devine, Seay, and Thomas exited the vehicle, kicked in the main door, and made entry.
Shortly after Seay, Brown, Devine, and Ramone Thomas entered, victim Chad Coffman arrived home and interrupted the burglary. Hydar jumped into the driver’s seat of the vehicle and fled the scene.
While in the trailer, Thomas, Seay, Devine, and Brown heard victim Chad Coffman arrive home. Ramone Thomas passed off a firearm he had brought to the residence to co-defendant Courtney Brown, and they all attempted to flee from the trailer. As Brown exited the residence, he turned the corner, raised the firearm, and discharged it one time, believing he was shooting at victim Chad Coffman. The projectile struck Ramone Thomas in front of the residence, killing him.
Chad Coffman pleaded guilty last year and was sentenced to 96 months in prison for possession with intent to distribute methamphetamine. Paris Devine pleaded guilty on February 11, 2019 and is set for sentencing on July 9, 2019. Raymond Seay pleaded guilty on March 13, 2019 and is set for sentencing on June 11, 2019. Courtney Brown pleaded guilty on March 29, 2019 and is set for sentencing on June 25, 2019.
Hydar faces a minimum penalty of 10 years in prison and a $10,000,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson County Sheriff’s Office, the Major Case Squad and the Jefferson County Prosecutor’s Office.
Wayne County Convicted Felon Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Hattiesburg, Miss. – Travis Wright, 53, of Wayne County, pled guilty Wednesday before U.S. District Judge Keith Starrett to illegal possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms, and Explosives,
On March 3, 2018, a Mississippi Highway Patrol Trooper observed a 2000 Dodge Dakota pickup truck with a Missouri license plate traveling south on Mississippi Highway 145 at a high rate of speed. The Trooper attempted to initiate a traffic stop on the vehicle, but the driver of the truck, later identified as Travis Wright, ignored the Trooper’s attempt to stop him. Instead, he accelerated to speeds exceeding 100 miles per hour. At one point during his attempt to evade law enforcement, Wright drove his truck northbound in the southbound lane against oncoming traffic. Wright eventually exited the highway and continued driving in a reckless manner until he ran into a barbed wire fence. Wright exited the truck, went to the rear of the vehicle, and began trying to remove a loaded .12 Gauge shotgun and a rifle. The Trooper commanded Wright to stop and show his hands. Wright ignored these commands and began to flee into the woods. The Trooper deployed his taser and was able to apprehend Wright after a short struggle. Officers later discovered that Wright has numerous prior convictions, including several convictions for burglary in Missouri. Wright was subsequently charged with unlawful possession of a firearm by a convicted felon.
Wright will be sentenced by Judge Starrett on July 23, 2019 at 10:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Christopher Carter.
Vermont Army National Guard Supply Sergeant Indicted for Stealing Pallets of Military Gear from Rutland ArmoryRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ammon Yule, 42, of Chittenden, Vermont was arrested today. A federal grand jury indicted Yule for three counts of theft of government property and three counts of mail fraud in connection with Yule’s work as a Vermont Army National Guard supply sergeant in Rutland.
Yule pled not guilty to the charges at his arraignment today before U.S. Magistrate Judge John M. Conroy. Judge Conroy ordered Yule released on conditions pending trial.
According to court records, Yule devised a scheme through which he ordered large quantities of uniform items from Army warehouses in Kentucky to be shipped to his attention at a National Guard facility in Rutland. Yule then sold much of the gear he received on eBay, on which he maintained an account advertising new, official U.S. government-issue uniform items for sale. Between March 2017 and March 2018 alone, Yule stole dozens of boots, parkas and duffel bags from the U.S. government through this scheme.
If convicted, Yule faces a maximum of ten years of imprisonment and a $250,000 fine on each count of theft of government property, and a maximum of 20 years of imprisonment and a fine of up to $250,000 on each count of mail fraud. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina Nolan commended the investigative efforts of the U.S. Army Criminal Investigation Command. She stated: “My office will continue to vigilantly guard the public fisc. In particular, we will bring consequences to those who would steal precious resources from our armed services.”
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. The defendant is represented by the Federal Public Defender.
Upshur County Convicted Sex Offender Indicted on Child Sexual Exploitation ViolationsRead the Press Release
BEAUMONT, Texas – A 38-year-old Ore City, Texas man has been indicted for child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jeremy OKieth Kyle, also known as Corey Webster, also known as Rick, was named in an indictment returned by a federal grand jury on Apr. 3, 2019 charging him with coercion and enticement, sexual exploitation of children, traveling with intent to engage in illicit sexual contact, and penalties for registered sex offenders.
According to the indictment, on various dates in 2016 and 2018, Kyle, a convicted sex offender, is alleged to have committed numerous offenses against minor female victims.
If convicted of all counts, Kyle will receive life in federal prison.
Anyone who had contact with Jeremy OKieth Kyle or Corey Webster is urged to contact the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect the individuals’ identities and confidential information.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety - Criminal Investigations Division, the Tyler Police Department, the Longview Police Department, the Ore City Police Department, the Hughes Springs Police Department, the Daingerfield Police Department, and the Red Oak Police Department. Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting the case.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
United States Wins Civil Forfeiture Suit Against Taiwanese National Accused of Laundering Funds Through the United States to Assist Syrian and North Korean Regimes with Procuring GoodsRead the Press Release
WASHINGTON – A federal judge has ordered the forfeiture of $148,500 in blocked funds associated with a Taiwan-based company that allegedly laundered United States dollars in business dealings with North Korean and Syrian entities, announced U.S. Attorney Jessie K. Liu and Jeffrey S. Sallet, Special Agent-in-Charge of the FBI’s Chicago Division.
The Honorable Richard J. Leon granted the government’s motion for summary judgment in a civil forfeiture case targeting funds held in the name of Trans Multi Mechanics Company Limited (Trans Multi). The complaint alleged that Trans Multi and its owner, Tsai Hsien-Tsai, also known as Alex Tsai, laundered United States dollars to further his exportation of goods for the benefit of North Korean and Syrian entities involved in the respective regimes’ weapons programs. The complaint sought to forfeit funds laundered by Tsai.
“The Court found that these blocked funds were the product of Tsai’s attempts to sell tools to a Syrian company using U.S. Dollars and a series of front companies,” said U.S. Attorney Liu. “Sanctions laws are critical to our national security and foreign policy interests, and this case demonstrates that we will seek significant remedies against those companies that violate them.”
"Attempts by individuals such as Tsai to circumvent economic sanctions through money laundering undermine foreign policy established to keep the United States and its citizens safe,” said Special Agent in Charge Sallet. “This judgment underscores the FBI’s commitment to national security and serves as a reminder that the FBI will work tirelessly to bring offenders to justice."
The complaint was filed in June 2016, in the U.S. District Court for the District of Columbia. According to the complaint, Tsai frequently transacted with companies in North Korea and Syria which assisted with each regime’s respective weapons programs. On Jan. 16, 2009, the U.S. Department of Treasury Office of Foreign Asset Control (OFAC) designated Tsai, his wife, and two companies he controlled. The designation noted that Tsai used these companies to transact with North Korean proliferators of weapons of mass destruction.
Between April and June of 2012, OFAC blocked $148,500 in the process of being transferred from a bank account in Hong Kong controlled by Tsai to a Taiwanese bank account in the name of his daughter as it traveled through the United States correspondent banking system.
Tsai was arrested in Estonia in May 2013 and subsequently extradited to the United States. He pled guilty in October 2014, in the U.S. District Court for the Northern District of Illinois, to one count of conspiracy to defraud the United States. As part of his plea agreement, Tsai admitted that he had used Trans Multi, among other companies, to continue his exporting business notwithstanding the OFAC designation against him. He also admitted that he exported machinery and tools relating to weapons of mass destruction, and that these goods were produced in the United States and purchased with U.S. Dollars. After serving a two-year prison sentence, Tsai was deported to Taiwan, where he remains today.
In his ruling, which was issued on March 29, 2019, Judge Leon agreed that there was no genuine dispute of material fact with respect to the government’s complaint, and that the Court could “easily conclude” that the funds involved in this suit stemmed from Tsai’s attempts to evade sanctions. The United States is thus entitled to the funds.
The FBI’s Chicago Division is investigating the case. Assistant U.S Attorneys Zia M. Faruqui, Arvind Lal, and Brian Hudak are prosecuting the case, with assistance from Legal Assistant Jessica McCormick and former Paralegal Specialist Toni Anne Donato, and special assistance from Joshua Stanton, who served as a consultant.
Union County Man Admits Possessing Loaded Handguns While Trafficking NarcoticsRead the Press Release
NEWARK, N.J. – A Union Township, New Jersey man admitted today to possessing two loaded handguns and large quantities of narcotics with the intent to distribute those narcotics, U.S. Attorney Craig Carpenito announced.
Quadir Allen, 41, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to all three counts of an indictment charging him with possession of firearms by a previously convicted felon, possession with intent to distribute over 100 grams of heroin, and possession of firearms during and in relation to a drug trafficking crime.According to documents filed in this case and statements made in court:
In January 2018, officers with the Union Township Police Department obtained a warrant for Allen’s arrest after he fled from a motor vehicle stop. On January 31, 2018, officers located Allen and stopped the car in which he was driving. During the stop, officers observed a handgun on the front passenger’s seat, which they later determined was loaded with hollow-point ammunition. A search of Allen’s car revealed an additional handgun that was also loaded with hollow-point ammunition. Officers also located large quantities of heroin and cocaine, which were packaged for street-level distribution. Allen previously was convicted of aggravated manslaughter in Essex County Superior Court.
The possession of firearms by a previously convicted felon count carries a maximum penalty of ten years’ imprisonment and a $250,000 fine. The possession of heroin with intent to distribute count carries a minimum penalty of five years’ imprisonment and a maximum penalty of forty years’ imprisonment, and a $5,000,000 fine. The possession of firearms during a drug trafficking crime carries a minimum penalty of five years’ imprisonment, which must run consecutively to any sentence imposed on the possession of heroin with intent to distribute count, a maximum penalty of life imprisonment, and a $250,000 fine. Sentencing is scheduled for July 9, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and officers with the Union Township Police Department with the investigation leading to today’s guilty plea.
The government is represented by Assistant United States Attorney Stephen Ferketic and Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lorraine Gauli-Rufo, Esq.
Undocumented Alien Sentenced for Illegally Re-entering the U.S….AgainRead the Press Release
BROWNSVILLE, Texas – A 38-year-old undocumented alien from Mexico is headed to federal prison following his conviction of illegal re-entry into the country after a previous deportation, announced U.S. Attorney Ryan K. Patrick. Rodolfo Casares pleaded guilty Jan. 3, 2019.
Today, U.S. District Judge Rolando Olvera ordered him to serve a 60-month term of imprisonment. Not a U.S. citizen, Casares is expected to face deportation proceedings following the sentence. At the hearing, additional evidence was also provided that included Casares’ prior convictions.
On Sept. 21, 2018, Custom and Border Protection (CBP) agents encountered Casares as they were conducting Linewatch operations near Hidalgo.
Upon investigation, law enforcement discovered he was illegally present in the United States. Casares was first deported to Mexico in October 2005 after having been convicted of possession of cocaine with intent to deliver in October 2005 and in April 2015. He also has a another conviction of illegal re-entry after having been found in the country again on May 14, 2018. Casares was last deported in August 2018.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
CBP conducted the investigation. Assistant U.S. Attorney David Coronado is prosecuting the case.
U.S. Attorney's Office to Host Greater Upstate Reentry Job Fair & Expo to Help Secure Employment for Individuals with Criminal RecordsRead the Press Release
Greenville, South Carolina – United States Attorney Sherri A. Lydon announced today that the United States Attorney’s Office; the South Carolina Department of Probation, Parole and Pardon Services; SC Works; SC Vocational Rehabilitation; SC Department of Employment and Workforce; SC Department of Social Services; and the United States Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The Third Annual Greater Upstate Reentry Job Fair & Expo will be held Wednesday, April 10, 2019, from 10:00 am to 1:00 pm, at McAlister Square, located at 225 S. Pleasantburg Drive, Greenville, SC.
This job fair, which is intended as a resource for Upstate residents, is part of a series of events held annually in Florence, the Midlands, the Lowcountry, and the Upstate. The partner organizations have tailored the expo to help people with a criminal record overcome the particular obstacles they face after returning home.
The fair and expo will include area employers friendly to hiring individuals with a criminal background and other organizations who provide resources for returning citizens.
Professional dress is required. As always, the event will feature workshops on how to seek expungements and pardons of prior criminal convictions.
Interested employers or vendors should inquire with Diana Goldwire at (864) 315-9751 or [email protected].
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Two Sentenced in Jackpotting Case Involving Banks in Utah and Washington, Sentencings Set for OthersRead the Press Release
SALT LAKE CITY – Two defendants, who were involved in “jackpotting” a number of ATMs in Utah and elsewhere from Feb. 23, 2018, to March 7, 2018, have resolved their federal cases in Salt Lake City and been sentenced. Three others have entered guilty pleas and will be sentenced in May. Cases are pending for two other defendants charged in the scheme.
Josshua Perez Rivas, age 39, a Venezuelan national, was sentenced to 42 months in federal prison in late February after pleading guilty to conspiracy to commit bank theft in December. According to a sentencing memorandum filed by federal prosecutors, Perez Rivas played a significant role in organizing what was a sophisticated international conspiracy to steal from banks in the United States. “The plot is remarkable for its technological sophistication and for the number of participants recruited to help ensure its success. It is a plot that requires significant planning and expertise,” they told the court.
The defendants in the case used software and equipment to reprogram ATM computers to enable them to direct the ATMs to dispense cash until emptied – an activity sometimes called jackpotting. Perez Rivas compromised the ATM computers and installed the software in almost every instance. Perez Rivas appears to have been the point person for communications between the team on the ground and their coconspirators who developed the malware.
The defendants possessed false identifications and stolen credit card numbers to allow them to rent hotel rooms and vehicles to be used in facilitation of their conspiracy without leaving a record of their identities. Computer files with approximately 600 credit card numbers that appear to have been stolen were found on data storage devices in the suitcases of one of the defendants. Using the false identifications assured the defendants that their names were not left at the hotel or associated with the license plate on the vehicle should it be caught on camera, federal prosecutors said.
Before their capture, Perez Rivas and his codefendants had successfully jackpotted five ATMs in Washington and one in Sandy, Utah. They also attempted to jackpot two additional ATMs in Salt Lake City before being arrested during the Sandy crime.
According to information included in plea agreements reached in the case, the following amounts were stolen from ATMs through the unauthorized access:
Dec. 13, 2017 Sound Credit Union ATM - Bothell, Washington $88,000
Dec. 15, 2017 iQ Credit Union - Vancouver, Washington $8,000
Dec. 16, 2017 Umpqua Bank ATM - Vancouver, Washington $16,000
Dec. 16, 2017 Columbia Credit Union ATM - Vancouver, Washington $91,000
Dec. 17, 2017 Heritage Bank ATM - Vernon, Washington $64,400
Feb. 25, 2018 Deseret First Credit Union ATM - Sandy, Utah $38,800
The two ATMS in the attempted jackpotting events in Salt Lake City contained $75,000 and $33,200. It appears these attempts were thwarted by an alarm that sounded at one ATM and the arrival of a bank customer at the other.
Starlin Garcia Caraballo, age 40, pleaded guilty to conspiracy to commit bank theft charged in the Washington indictment and conspiracy to commit computer fraud and abuse from the Utah indictment. He has been sentenced to one year in federal prison.
Joao Silva Robertson, age 29, and Pedro Rivero Velazquez, age 39, have pleaded guilty to one count of conspiracy to commit bank theft charged in a superseding indictment returned in the Western District of Washington and one count of conspiracy to commit computer fraud and abuse charged in the Utah indictment. Sentencing for Velazquez will be May 13. Robertson will be sentenced May 20, 2018. Both plea agreements include a stipulated 30-month sentence, subject to the approval of the court.
Jean Carlos Dumont Gonzales pleaded guilty to one count of conspiracy to commit computer fraud and abuse in early March and is scheduled to be sentenced May 21, 2019. His plea agreement includes a stipulation to a sentencing range of 12 to 30 months, subject to the approval of the court.
A change of plea hearing has been set for June 4, 2019, for Carlos Eduardo Goncalves Duran, age 33.
A federal arrest warrant is pending for Luis Mendez Mata, age. 43, who is alleged to have been part of the conspiracy to install malicious software that would allow them to direct the ATMs to dispense cash from the financial institutions.
Perez Rivas still faces charges in Washington.
Defendants convicted in the case will be jointly responsible for paying $306,200 in restitution to victim banks.
All seven defendants in the case are Venezuelan nationals.
The U.S. Attorney’s Office in Salt Lake City is prosecuting the case. FBI Special agents are investigating the case.