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2 May 2019
West Palm Beach Man Sentenced to Prison for Sex Trafficking of a Minor and Child PornographyRead the Press Release
Steven Snipe, 27, of West Palm Beach, Florida, was sentenced yesterday in federal court to 15 years in prison after previously pleading guilty to one count of sex trafficking a minor and one count of producing child pornography, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI) Chief Michael G. Gregory of the Boynton Beach Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office.
“Yesterday’s sentencing demonstrates the Department of Justice’s unwavering commitment to combatting the heinous crime of sex trafficking,” said Assistant Attorney General Eric Dreiband. “The defendant’s depraved actions will not be tolerated and the Civil Rights Division’s Human Trafficking Prosecution Unit will continue to fight to eradicate this criminal exploitation.”
“Those who sexually exploit our youth turn children into victims of deplorable acts,” stated U.S. Attorney Fajardo Orshan. “Our law enforcement partners in the Southern District of Florida and throughout the Department commend the strength of those who have raised their voices against an abuser. We hear your calls for help and will continue to seek justice for all, through the united force of our federal human trafficking prosecutions.”
“While the harm caused to this minor cannot be undone, our HSI special agents hope yesterday’s sentencing is another step in the recovery process for the young victim,” said HSI Miami Special Agent in Charge Anthony Salisbury.
“The Boynton Beach Police Department remains committed to vigorously investigating those who prey on youth in our community,” Chief Gregory of the Boynton Beach Police Department said. “We thank the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division for partnering with us in our ongoing efforts to fight sex trafficking.”
According to the indictment and facts detailed during Snipe’s plea hearing, between late May 2017 and June 29, 2017, Snipe began a sexual relationship with a 15-year-old girl. After several days, he provided her with a cell phone and instructed her to create an account on Backpage.com. He showed her how to post advertisements on the website, directed her to claim she was 19, and advertised her to clients. Snipe then caused the victim to engage in commercial sex for his profit at multiple hotels until June 29, 2017, when the victim called 911 to report that she was being forced to prostitute. Officers responded to a hotel and located Snipe and the victim.
Law enforcement obtained lawful authorization to search the cell phone that Snipe had provided to the victim. The cell phone contained several sexually explicit videos and multiple photographs depicting the victim in various stages of undress and Snipe engaging in sexual intercourse with the victim.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
The prosecution is the result of a joint investigation by ICE-HSI, the Boynton Beach Police Department, the Palm Beach County Sheriff’s Office, the U.S. Attorney’s Office for the Southern District of Florida, and the Civil Rights Division’s Human Trafficking Prosecution Unit.
This case was prosecuted by Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida, Special Litigation Counsel Matthew T. Grady and Trial Attorney Maryam Zhuravitsky of the Human Trafficking Prosecution Unit.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
West Palm Beach Man Sentenced to Prison for Sex Trafficking of a Minor and Child PornographyRead the Press Release
Steven Snipe, 27, of West Palm Beach, Florida, was sentenced yesterday in federal court to 15 years in prison after previously pleading guilty to one count of sex trafficking a minor and one count of producing child pornography, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI) Chief Michael G. Gregory of the Boynton Beach Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office.
“Yesterday’s sentencing demonstrates the Department of Justice’s unwavering commitment to combatting the heinous crime of sex trafficking,” said Assistant Attorney General Eric Dreiband. “The defendant’s depraved actions will not be tolerated and the Civil Rights Division’s Human Trafficking Prosecution Unit will continue to fight to eradicate this criminal exploitation.”
“Those who sexually exploit our youth turn children into victims of deplorable acts,” stated U.S. Attorney Fajardo Orshan. “Our law enforcement partners in the Southern District of Florida and throughout the Department commend the strength of those who have raised their voices against an abuser. We hear your calls for help and will continue to seek justice for all, through the united force of our federal human trafficking prosecutions.”
“While the harm caused to this minor cannot be undone, our HSI special agents hope yesterday’s sentencing is another step in the recovery process for the young victim,” said HSI Miami Special Agent in Charge Anthony Salisbury.
“The Boynton Beach Police Department remains committed to vigorously investigating those who prey on youth in our community,” Chief Gregory of the Boynton Beach Police Department said. “We thank the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division for partnering with us in our ongoing efforts to fight sex trafficking.”
According to the indictment and facts detailed during Snipe’s plea hearing, between late May 2017 and June 29, 2017, Snipe began a sexual relationship with a 15-year-old girl. After several days, he provided her with a cell phone and instructed her to create an account on Backpage.com. He showed her how to post advertisements on the website, directed her to claim she was 19, and advertised her to clients. Snipe then caused the victim to engage in commercial sex for his profit at multiple hotels until June 29, 2017, when the victim called 911 to report that she was being forced to prostitute. Officers responded to a hotel and located Snipe and the victim.
Law enforcement obtained lawful authorization to search the cell phone that Snipe had provided to the victim. The cell phone contained several sexually explicit videos and multiple photographs depicting the victim in various stages of undress and Snipe engaging in sexual intercourse with the victim.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
The prosecution is the result of a joint investigation by ICE-HSI, the Boynton Beach Police Department, the Palm Beach County Sheriff’s Office, the U.S. Attorney’s Office for the Southern District of Florida, and the Civil Rights Division’s Human Trafficking Prosecution Unit.
This case was prosecuted by Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida, Special Litigation Counsel Matthew T. Grady and Trial Attorney Maryam Zhuravitsky of the Human Trafficking Prosecution Unit.
Vacaville Man Sentenced to 14 Years in Prison for Possessing 5 Pounds of Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — Robert Elias Padilla, 41, of Vacaville, was sentenced Thursday by U.S. District Judge Troy L. Nunley to 14 years in prison for possessing methamphetamine for distribution, U.S. Attorney McGregor W. Scott announced.
Padilla pleaded guilty on January 31. According to court documents, on June 6, 2018, law enforcement agents had a warrant to search Padilla and his car for evidence of drug-trafficking and firearms. They located Padilla in his car and followed him to a parking lot in Vacaville. When the officers tried to stop Padilla’s car, Padilla tried to flee, hitting a parked car in the process. At the same time, Padilla threw a backpack from the driver’s-side window, and officers later found over 5.5 pounds of methamphetamine in the backpack. Padilla was carrying over $2,300 in cash when he was arrested.
This case was the product of an investigation by the Vacaville Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
U.S. Attorney McSwain Delivers Keynote Address at the FOP Lodge 5 Luncheon Following Living Flame Memorial ServiceRead the Press Release
PHILADELPHIA – On May 1, 2019, United States Attorney William M. McSwain delivered the keynote address at a luncheon honoring the families of fallen Philadelphia police officers and firefighters. The luncheon, hosted by the Fraternal Order of Police Lodge 5, immediately followed the Living Flame Memorial Service, an annual event honoring the men and women who lost their lives in service to the City. U.S. Attorney McSwain was invited to speak, and introduced by, Lodge #5 President, John McNesby.
Remarks as Prepared for Delivery
Thank you, John, for that kind introduction, for your friendship, and for your many years of dedicated leadership of the FOP. I am grateful for the partnership that you have helped to foster between my Office and the Philadelphia Police Department. I also want to thank the FOP’s Executive Leadership for your work in organizing today’s event. It is an honor to be here with all of you on this important day of remembrance. Police Commissioner Ross and Fire Commissioner Thiel, you are both trusted friends and I want to thank you for your service and for your partnerships with my Office. I know I speak for everybody in my Office when I say that your rank-and-file members are the best law enforcement partners any prosecutor could ask for.
When I was at the Living Flame Memorial earlier today, I thought about what that light represented, which is each life that has been lost. And I thought about the purpose of the event: to pay tribute to those who are missing from this crowd – those police officers and firefighters who made the ultimate sacrifice; those who gave their lives so that their fellow citizens could be safe and their communities secure.
And it’s also a day to pay tribute to, and to support, each of you – the family and friends of these heroes. We can never repay the debt that we owe to the fallen officers and firefighters and to their family members. But what we can do is promise that we will work hard every day to make sure that the sacrifices you and your loved ones have made on behalf of this great City will never be forgotten. And together we will keep their memories alive.
Public service is a noble calling, but the kind of public service we remember and celebrate today is truly special: the kind where brave men and women put on their uniform every day in the knowledge that they may have to risk – and even give – their lives to protect others. In doing so, they show their love for their community and their fellow citizens. It is a powerful, awe-inspiring form of love because it is so generous and selfless. It takes an extraordinary person to be willing to act in such a manner, to sign up for the job – and then to actually do it. Such people are not takers, they are givers. They don’t ask for much, if anything, in return. But we must give them something. We owe them something.
What we owe them – and their loved ones – is our sincere and solemn gratitude and support. They have that – and you have that – from me and from every single member of my Office. You also have that from the vast majority of your fellow citizens. For example, just this past week, the Philadelphia Inquirer noted that, according to recent polling, the voters’ No. 1 issue was crime. According to the voters in this City, it is the single biggest issue that city officials should be focused on – by far. That means that the citizens of Philadelphia care deeply about the mission of the police and that they desperately need and want the police to aggressively investigate, punish, and deter crime.
But what is upsetting to me – what bothers me to my core – is that there are public officials in this City who do not express the gratitude and support that the police deserve. There are public officials in this City who in fact undermine the police and make their inherently difficult jobs even more difficult, if not impossible. Those people do not understand and appreciate the sacrifices that you and your loved ones have made. Those people do not understand and appreciate the dedication and bravery that makes you and your loved ones who you are. Those people have no shame. I say to you: pay them no mind. They are unworthy.
Instead, think of this: think of how proud you are of your loved ones’ service. Think of how proud they are, looking down on us today, for our gathering here in their honor, and for remembering, and promising to always remember. And think of the love that binds you with them, and that binds you with this City.
In closing, I would like to leave you with one of my favorite Bible verses (from Galatians chapter 6, verse 9), because it sums up my feelings about today’s event and what it means. In the words of the Apostle Paul, “Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up.”
Thank you, and God Bless you all.
Two Men Charged in Insurance Investment Fraud Scheme that Caused Hundreds of Millions in Victim LossesRead the Press Release
Two former executives were charged in an indictment unsealed today for their alleged participation in an insurance investment scheme that resulted in hundreds of millions of dollars in victim losses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Troy A. Sowers of the FBI’s Knoxville Field Office and Special Agent in Charge Matthew D. Line of IRS Criminal Investigation’s (IRS-CI) Charlotte Field Office made the announcement.
Andrew Scherr, 50, of Livingston, New Jersey, and Robert McGraw, 41, of Long Island City, New York, who were both executives with Southport Lane, L.P. (Southport), a New York private equity investment holding company specializing in managing investment portfolios for insurance companies, were each charged in an indictment filed in the Northern District of Texas with one count of conspiracy to commit crimes by or affecting persons engaged in the business of insurance, one count of conspiracy to commit wire fraud affecting a financial institution and five counts of wire fraud affecting a financial institution. McGraw appeared today before U.S. Magistrate Judge Steven M. Gold of the Eastern District of New York.
“According to the indictment unsealed today, Scherr and McGraw diverted hundreds of millions of dollars from insurance companies’ investment portfolios, leaving several companies unable to pay their policyholder claims,” said Assistant Attorney General Benczkowski. “The Criminal Division is committed to holding accountable those who defraud investors, especially those who target companies that rely on those investments to live up to the promises made to their policyholders.”
“Disrupting this corrupt scheme demonstrates the FBI’s commitment to aggressively pursue those engaged in acts of financial fraud,” said Special Agent in Charge Troy A. Sowers. “We commend our partner agencies essential to the investigation and prosecution of those who undermine the public’s trust.”
The indictment alleges that Scherr, McGraw and their co-conspirators defrauded insurance companies by causing them to exchange cash and other liquid, valuable assets for illiquid and fraudulently overvalued securities created by the defendants and their co-conspirators. As alleged in the indictment, Scherr, McGraw and their co-conspirators perpetrated the scheme, in part, by acquiring insurance companies and acting as an investment advisor for insurance companies, thereby gaining access to the management of the investment portfolios of victim insurance companies. Scherr, McGraw and their co-conspirators allegedly used Southport and affiliated entities to create fraudulently overvalued securities and replace assets held by victim insurance companies with these fraudulently overvalued and illiquid securities. The indictment further alleges that as a result of the scheme, victim insurance companies have collectively suffered hundreds of millions of dollars in losses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s Knoxville Field Office and the IRS-CI’s Charlotte Field Office. Deputy Chief Brian Kidd and Trial Attorneys Danny Nguyen and Caitlin Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. Trial Attorney Andrew Tyler assisted in the investigation of the case.
The Criminal Division’s Money Laundering and Asset Recovery Section and the Securities and Exchange Commission also provided assistance in the investigation of this matter.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Syracuse Man Pleads Guilty to Cocaine and Firearms ChargesRead the Press Release
SYRACUSE, NEW YORK – Michael Cozzens, 34, of Syracuse, New York, pled guilty yesterday to conspiring to distribute and possess with intent to distribute more than 500 grams of cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a stolen gun. The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Cozzens admitted that between January 2017 and April 20, 2018, he agreed with others to participate in a drug trafficking conspiracy that distributed cocaine. The defendant also admitted that he obtained quantities of cocaine from co-conspirators and distributed, or arranged to distribute, cocaine to others. Cozzens further admitted he possessed a stolen, loaded, .40 caliber Smith and Wesson semiautomatic handgun, in an effort to protect the drugs and drug proceeds he kept in his car and his home.
Sentencing is scheduled for September 19, 2019, at which time the defendant faces a mandatory minimum term of imprisonment of ten (10) years, and a maximum sentence of up to life in prison, a term of post-imprisonment supervised release of at least four (4) years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Drug Enforcement Administration (DEA), and was prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.
State Contractor Sentenced to 18 Months for Defrauding NYSDOT on Federally Funded ContractsRead the Press Release
SYRACUSE, NEW YORK – Nathaniel P. Lorenz, age 47, of Holley, New York, was sentenced today to 18 months in prison, and to pay restitution in the amount of $600,000, following his trial conviction last year on wire fraud and mail fraud charges.
The announcement was made by United States Attorney Grant C. Jaquith; Douglas Shoemaker, Special Agent in Charge of the Northeast Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General Letizia Tagliafierro; and Robert L. Keihm, Chief Investigator for the New York State Department of Transportation (NYSDOT) Investigations Bureau.
Senior United States District Judge Norman A. Mordue also ordered Lorenz to serve a 2-year term of post-imprisonment supervised release.
Lorenz was convicted on all charges – eight counts of wire fraud and one count of mail fraud – following a 7-day trial that ended on November 6, 2018. The evidence at trial established that Lorenz, a former police officer and sheriff’s deputy, submitted fake invoices to NYSDOT in order to conceal that he was not buying the materials needed to perform bridge maintenance contracts in the Buffalo and Binghamton regions, for which his company was ultimately paid more than $1 million.
Lorenz’s company, ACME Powerwashing Inc. (ACME) of Holley, contracted with NYSDOT in 2015 and 2016 to clean and seal the road portions of bridges, known as concrete bridge decks. The work involved cleaning the bridge decks and then sealing them with a chemical that makes the concrete more resistant to penetration by water, chlorides and waterborne contaminants, which might cause potholes. The Federal Highway Administration, part of the United States Department of Transportation, provided most of the money for these contracts.
Each of these contracts required ACME to purchase a certain amount of sealing chemical, based on how many square feet of concrete bridge deck was sealed. On three contracts in 2015 and 2016, Lorenz submitted fraudulent invoices to NYSDOT in order to conceal that he was not buying the amount of the sealing chemical required by the contracts. Lorenz falsely claimed that he was buying sealing chemicals from S.E. Brett, Inc., another company that he owned that does not sell anything.
The evidence at trial established that ACME, which had been a NYSDOT contractor since 2010, was not buying the appropriate amount of sealing chemicals since at least 2012 and had saved at least $500,000 in avoided material costs.
This case was investigated by USDOT-OIG, the Office of the New York State Inspector General, and NYSDOT’s Investigations Bureau, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
St. Croix Men Sentenced to Prison for Their Participation in a Scheme to Distribute Cocaine Base (“Crack”) and CocaineRead the Press Release
St. Croix, USVI – Nolly King, 36 of St. Croix, was sentenced Thursday for distribution of crack cocaine, and Thaddeus Hendricks, 39, was sentenced for distribution of cocaine, United States Attorney Gretchen C.F. Shappert announced. According to court documents, both men were associates of Robert Klyvert who is pending sentencing in federal court.
Visiting Judge Anne E. Thompson sentenced King to 24months and two years of supervised release. Judge Thompson also ordered him to pay a fine of $500 and a $100 special assessment. Hendricks was sentenced to 12 months and one day and two years of supervised release. Judge Thompson also ordered him to pay a fine of $500 and a $100 special assessment.
On January 29, 2019, King pleaded guilty to distribution of crack cocaine. According to the plea agreement filed in court, on December 31, 2016, a CS made arrangements with King to pick up crack cocaine in Orlando, Florida that King was holding for Robert Klyvert aka "Family." Klyvert was subsequently charged, has entered a guilty plea, and is pending sentencing in federal court. At approximately 9:45 a.m., the CS called King and informed King that the CS was ready. King instructed the CS to wait 20 to 25 minutes. At approximately 10:00 a.m., King called the CS and told him to come to his house. When the CS pulled up, King exited the residence, greeted the CS and engaged in conversation. After a few minutes, King re-entered the house and came back holding a white plastic bag containing crack cocaine. The CS asked King what was wrong with the crack cocaine. King stated that people did not like the color and showed the CS a sample. The CS took the crack cocaine and left the scene. Subsequent lab tests confirmed that the substance that the CS obtained from King was indeed crack cocaine and cocaine powder, and the net weight was 884.18 grams.
On January 29, 2019, Hendricks pleaded guilty to distribution of cocaine. According to the plea agreement filed in federal court, on January 15, 2017, Hendricks travelled by plane from St. Croix to St. Thomas, carrying a black backpack, which contained cocaine intended for Robert Klyvert, aka "Family". Hendricks asked the CS to take him to the Palms Court Hotel so that Hendricks could get a room while he waited for his flight back to St. Croix. While at the hotel, the CS gave Hendricks $22,000 and told him it was for the cocaine Hendricks had picked up in Orlando. Hendricks removed the cocaine from of the backpack and placed it on the floor of the front passenger seat where he was sitting. The CS inspected the cocaine and the Hendricks entered the hotel. Later that day, Hendricks arrived at the Rohlsen Airport in St. Croix and got into a car driven by Robert Klyvert. Subsequent lab tests confirmed that the backpack Hendricks showed to the CS contained cocaine with a net weight of 971.8 grams.
The case was investigated by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorneys Rhonda Williams-Henry and Melissa Ortiz.
Shreveport resident sentenced to 13 months in prison for lying on an application to buy a firearmRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Jacory Dejuan Robinson, 24, of Shreveport, was sentenced Wednesday to 13 months in prison by U.S. District Judge S. Maurice Hicks Jr. for lying on an application to buy a firearm at a pawnshop. He was also sentenced to three years of supervised release.
Robinson filled out paperwork on March 28, 2018 at a Shreveport pawnshop to purchase a handgun. He marked “no” in the box asking if he had ever been convicted of misdemeanor domestic violence, even though he had previously pleaded guilty on May 2, 2017 to one count of misdemeanor simple battery of his girlfriend in Greenwood, Louisiana. He pleaded guilty to the federal charge on January 15, 2019.
The ATF conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sacramento Man Sentenced to Nearly 5 Years in Prison for Fraud in Connection with Arson Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Saber A. Shehadeh, 76, of Sacramento, to four years and nine months in prison for an arson fraud scheme, U.S. Attorney McGregor W. Scott announced.
On June 14, 2018, a jury found Shehadeh guilty of three counts of mail fraud. According to evidence presented at trial, Saber Shehadeh made a series of false statements to State Farm Insurance Company to get insurance money after two fires destroyed buildings he owned at the corner of 10th and E Streets in Sacramento’s Alkali Flat neighborhood. The fires occurred on December 27, 2009, and August 15, 2010, and ultimately destroyed a historical building where Saber Shehadeh ran a business called Tru Value Market. Prior to the fires, the financial condition of Shehadeh’s Tru Value Market had declined. He experienced suspension from USDA’s food stamp program, bounced mortgage checks, and frequent overdrafts on his business bank account, and his alcohol license was placed in jeopardy due to a conviction for food stamp fraud and receiving stolen property.
After the second fire, Saber Shehadeh became a silent partner in a supposed construction company that was then used to submit inflated invoices for post-fire cleanup to State Farm. During State Farm’s investigation of the insurance claims, Saber Shehadeh made a series of false statements about the status of his market prior to the fires, and submitted fraudulent documents and made false statements about the debris removal performed after the second fire. Saber Shehadeh received over $1.4 million in insurance proceeds after the fires, enabling him to pay off his mortgage and still have several hundred thousand dollars left over to invest in new businesses and to share with family members, including his co-defendant Jamal Shehadeh.
This case was the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.
On February 10, 2018, Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony and was sentenced to 30 years in prison. According to his plea agreement, Jamal Shehadeh set or caused to be set the first fire at Saber Shehadeh’s 10th and E Street property. On April 17, 2018, co-defendant, Brian Stone, was convicted of 13 counts of mail and wire fraud after a separate jury trial, and on September 27, 2018, he was sentenced to six years in prison.
Rochester Man Pleads Guilty to Selling CocaineRead 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 Raul Matos, 45, of Rochester, NY, pleaded guilty to possession with intent to distribute, and distribution of, cocaine before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years, and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that on three separate occasions between November 2017 and February 16, 2018, the defendant sold a quantity of cocaine to an individual working with the Drug Enforcement Administration.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for July 22, 2019, before Judge Geraci.
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Retired Air Force Lieutenant Colonel Sentenced to 15 Years on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Paul Delavan Knoke, 77, a retired Air Force Lieutenant Colonel residing in Asheville, was sentenced to 180 months in prison on child pornography charges. U.S. District Judge Martin Reidinger also ordered Knoke to a lifetime of supervised release, and to register as a sex offender after he is released from prison.
U.S. Attorney Murray is joined in making today’s announcement by John Eisert, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte, and Interim Chief Wade Wood of the Asheville Police Department.
“For decades, Knoke inflicted horrific and sustained sexual abuse upon innocent children entrusted in his care,” said U.S. Attorney Murray. “When Knoke wasn’t physically abusing children, he was turning to a digital screen to view and share child pornography. As result of the 15-year sentenced imposed today, there will be one less sexual predator among us.”
“No one expects a lieutenant colonel to be a sexual predator, but in child exploitation cases, we continually see individuals in positions of trust prey on innocent children,” said Acting Special Agent in Charge John Eisert. “Our HSI special agents and local law enforcement partners are committed to uncovering these crimes against children and ensuring that the perpetrators are prosecuted to the fullest extent of the law.”
“I want to express my gratitude to our federal law enforcement partners and the U.S. Attorney’s office for their vital partnerships in removing dangerous child sexual predators from our community. The Asheville Police Department is proud of our detectives that worked tirelessly in this partnership to bring about a successful prosecution of Knoke which resulted in sentencing to federal prison. We are committed to continuing our coordinated investigations to bring such individuals to justice and to protect our children,” said Chief Wade Wood.
According to court documents and statements made in court, in June 2017, law enforcement became aware that Knoke was viewing child pornography online. Law enforcement executed a search warrant at the residence where Knoke was residing at the time and seized multiple computers, thumb drives, other devices, and printouts that belonged to Knoke. A forensic analysis of Knoke’s items revealed that Knoke possessed an extensive collection of sexually explicit images of minor males which he had shared with other offenders. Court records also show that Knoke admitted that he sexually abused at least eight minors entrusted in his care at various times for more than three decades. Investigators estimate that Knoke committed over 1,500 contact offenses against the children in his care. Knoke pleaded guilty in August 2018 to five counts of receipt of child pornography, three counts of distribution of child pornography, and one count of possession of child pornography.
Knoke has been in federal custody since June 2018 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by Homeland Security Investigations and the Asheville Police Department. In making today’s announcement, U.S. Attorney Murray also thanked the U.S. Department of Veteran’s Affairs Police and the Air Force Office of Special Investigations for their substantial assistance in this case.
Luis Permont, Special Agent with the Air Force Office of Special Investigations, said “I thank Homeland Security Investigations and the Asheville Police Department for their coordination and collaboration in this investigation. Together, we worked as a cohesive unit to ensure the truth about Knoke’s activities was revealed. The Office of Special Investigations relies heavily on our relationships with our local and federal law enforcement partners to protect the safety of men, women and children in the United States. I hope the successful outcome of this investigation will bring closure to the victims of Knoke’s actions and their families.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Prince George’s County Felon Sentenced to More Than 12 Years in Federal Prison for PCP Distribution Conspiracy and for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Fatai Gafari, a/k/a Freak Dawg, age 28, of Temple Hills, Maryland, today to 151 months in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute phencyclidine (“PCP”), and for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
United States Attorney Robert K. Hur stated, “Fatai Gafari brought danger to our community through the deadly combination of guns and drugs. Now he faces more than 12 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to Gafari’s plea agreement, from July 2017 and continuing through December 2017, Gafari and co-defendants Marquez Gary Freeman, Jordan Lee Phillips, Javon Antonio Reid, Terrell Andre Shields, and Timmy Rae Shields, conspired to distribute PCP. In general, Gafari and Timmy Shields—who operated at the direction and under the supervision of Gafari—worked together to supply Phillips, Reid, Freeman, and Terrell Shields with PCP. Gafari often directed Timmy Shields to deliver PCP to and collect money from customers of both Gafari and Shields. During the course of the conspiracy, Gafari distributed at least 273 fluid ounces of PCP, which equals approximately 5.7 kilograms of PCP.
In July 2017, Gafari supplied 16 ounces of PCP to Phillips, who in turn sold it to a cooperating source. On September 26, 2017, Gafari directed Timmy Shields to drive Gafari’s vehicle to Phillips’s residence in order to distribute six ounces of PCP to Phillips, which Phillips later sold to a cooperating source.
On November 20, 2017, Gafari sold PCP “dippers”, which are cigarettes dipped in PCP and then smoked, to users on Parkway Terrace in Suitland, Maryland. Law enforcement officers stopped Gafari in his vehicle as he left the area. When he was stopped, Gafari removed a glass bottle from his clothing and threw it on the ground. That bottle—which did not break—was recovered and contained a half-ounce of PCP.
Between November 30 and December 6, 2017, Gafari and Reid sold a cooperating source more than 43 ounces of PCP. Gafari and Timmy Shields travelled to Cleveland, Ohio to purchase PCP that Gafari, Timmy Shields, and Terrell Shields intended to sell, including 32 ounces of PCP that was sold to the cooperating source on December 6, 2017.
On December 12, 2017, while executing a search warrant on Gafari’s residence in Maryland, federal agents recovered 207 ounces of PCP, drug paraphernalia, and a loaded firearm. Gafari admitted that he possessed the firearm to protect his PCP supply. Gafari had a previous felony conviction and was prohibited from possessing firearms or ammunition.
Co-defendants Marquez Gary Freeman, a/k/a Cheese, age 22; Jordan Lee Phillips, a/k/a J Rock, age 27; Javon Antonio Reid, a/k/a Gucci, age 28; Terrell Andre Shields, a/k/a Hell Rell and Rell, age 31; and Timmy Rae Shields, a/k/a Tim Dawg, age 27, all of Suitland, Maryland, have previously pleaded guilty to their roles in the PCP distribution conspiracy. Terrell Shields was sentenced to five years in federal prison, Phillips was sentenced to two years in federal prison, and Freeman was sentenced to a year and a day in federal prison. Judge Xinis has scheduled sentencing for Timmy Rae Shields on May 10, 2019, at 1:00 p.m. and Javon Reid is scheduled to be sentenced on July 8, 2019 at 10:00 a.m.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory D. Bernstein, Jennifer R. Sykes, and Thomas M. Sullivan, who are prosecuting the case.
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Port Arthur Man Charged with Violent Crime ActsRead the Press Release
BEAUMONT, Texas – A 20-year-old Port Arthur, Texas man has been indicted by a federal grand jury in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Jamon Roshaud Brooks was named in a two-count indictment charging him with Hobbs Act robbery and brandishing a firearm during a crime of violence. The indictment was returned by a federal grand jury on May 1, 2019.
The indictment alleges that on Dec. 21, 2018, Brooks brandished a firearm while robbing a business located at 2150 Stillwater Drive in Beaumont, Texas, which engaged in, and affected interstate commerce in violation of the Hobbs Act.
If convicted, Brooks faces up to 20 years in federal prison for the robbery and seven years consecutive for brandishing a firearm.
This case is being investigated by the Beaumont Police Department, the Jefferson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Russell James.
It is important to note that a complaint, arrest, or 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.
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Owner of the Surrogacy Group Facing Federal Charge for Allegedly Defrauding Clients of Fees Paid to Find and/or Support a Pregnancy SurrogateRead the Press Release
Baltimore, Maryland – Federal prosecutors in Maryland have filed a federal criminal complaint charging Gregory Ray Blosser, age 37, of Tampa, Florida, on a federal wire fraud charge in connection with an alleged scheme to defraud clients of The Surrogacy Group (TSG), which he operated. Blosser was arrested on April 29th in Florida. The criminal complaint was unsealed at his initial appearance.
The federal criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
“The allegations in this case are especially egregious because they involve someone taking advantage of individuals who are trying to become parents,” said U.S. Attorney Robert K. Hur. “Criminals who line their pockets through such heartless deceit will be held accountable.”
According to the criminal complaint, TSG offers and sells surrogacy-related services to individuals who desire to have children using a pregnancy surrogate. TSG has been operated by Blosser since 2012 and has offices in Annapolis, Maryland and Tampa, Florida.
The criminal complaint alleges that Blosser solicits and accepts funds from clients seeking to have a child using a surrogate, promising to use those funds to support the surrogate during a pregnancy, but Blosser fails to do so.
As detailed in the affidavit filed in support of the criminal complaint, at Blosser’s direction, at least seven victims paid fees to establish an escrow account to be controlled by Blosser, with the funds to be used to find a suitable surrogate, and to support the surrogate during a pregnancy. The victims lived in Maryland, Australia, North Carolina, Germany, and Virginia. In each case, after the victims deposited funds into the escrow account, Blosser either did not locate a suitable surrogate, or did not pay the surrogate the agreed-upon fees. The victims were not able to obtain refunds, despite numerous attempts by phone and e-mail. Victims whose surrogates were not paid by Blosser had to pay the surrogates directly, even though they had provided funds to Blosser for that purpose.
Blosser is also facing related civil suits filed by the States of Maryland and Florida.
If you believe you may have been a victim, or have information concerning these charges, please complete a brief questionnaire at www.fbi.gov/tsg or you can email [email protected]. Your responses are voluntary. You may be contacted by the FBI.
If convicted, Blosser faces a maximum sentence of 20 years in prison for wire fraud. Blosser had an initial appearance in U.S. District Court in Miami, Florida, on April 30 and was ordered to be detained pending a detention hearing scheduled for Friday, May 3, 2019 at 10:00 a.m. He is expected to have an initial appearance in Maryland later this month.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
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Over $3 Million Paid to Individuals in Disability Settlement with GreyhoundRead the Press Release
The Department of Justice today announced that payments totaling $2,966,000 were issued to over 2,100 individuals who experienced disability discrimination while traveling or attempting to travel on Greyhound. The payments were part of a broader settlement from 2016 resolving the Department’s complaint that Greyhound Lines Inc., the nation’s largest provider of intercity bus transportation, engaged in a nationwide pattern or practice of violating the Americans with Disabilities Act (ADA) by failing to provide full and equal transportation services to passengers with disabilities. The alleged violations included failing to maintain accessibility features on its bus fleet such as lifts and securement devices; failing to provide passengers with disabilities assistance boarding and exiting buses at rest stops; and failing to allow customers traveling in wheelchairs to complete their reservations online.
“The Department of Justice is committed to eliminating disability-based discrimination in transportation services,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement ensures equal travel opportunities for those with disabilities through holistic reform.”
The $2,966,000 amount is in addition to $300,000 paid by Greyhound in 2016 to specific individuals identified by the Department, bringing the total distributed to individuals to over $3,000,000. This sum stands in addition to a $75,000 civil penalty paid by Greyhound to the United States. The settlement also mandated a series of systemic reforms, including that Greyhound hire an ADA compliance manager; provide annual in-person ADA training to employees and contractors who interact with the public; provide technical training to all employees and contractors on the proper operation of the accessibility features of Greyhound’s fleet; and report every three months to the Department of Justice on its compliance efforts.
To read the consent decree and complaint, please visit https://www.ada.gov/enforce_current.htm#grey. For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Omaha Man Sentenced to 90 Months in Federal Prison for His Role in Six Armed RobberiesRead the Press Release
United States Attorney Joe Kelly announced that Marcus Remus, age 21, of Omaha, Nebraska, was sentenced today to 90 months in federal prison by Chief United States District Judge John M. Gerrard following a federal jury trial. In addition to the 90 months of imprisonment, Remus will be placed on 5 years of supervised release when he finishes his sentence, and he will be required to pay $2,271 in restitution to all six victims of his crimes. Remus pleaded guilty to one count of interference with commerce by robbery and one count for discharging a firearm in furtherance of a crime of violence on January 2, 2019. Remus faced a term of imprisonment of up to life at his sentencing hearing.
Evidence presented at trial of Remus’s co-defendant, Shawn Brooks, showed that between November 29, 2016 and December 30, 2016, Brooks and Remus robbed one bank and five convenience stores, all in Lincoln, Nebraska. In three of those robberies, Brooks brandished a firearm at employees of the businesses. At the bank robbery, he also fired the weapon multiple times in the direction of bank employees. Remus shot one of the gas station clerks in their final robbery at a convenience store on December 30, 2016. For his role in those crimes, Brooks was sentenced to 40 years in federal prison on April 12, 2019.
This case was investigated by the Lincoln Police Department and the FBI.
Norteño Gang Member Sentenced to More Than 36 Years in Prison for Racketeering Conspiracy, Murder, and Armed RobberyRead the Press Release
SAN JOSE – Antonio Cruz was sentenced today to 36½ years in prison and ordered to pay $324,915.59 in restitution for his role in a racketeering conspiracy that involved three murders, two attempted murders, one robbery affecting interstate commerce, and three armed bank robberies, announced United States Attorney David L. Anderson and FBI Special Agent in Charge John F. Bennett. The sentence was handed down on May 1, 2019, by the Honorable Lucy H. Koh, U.S. District Judge.
Cruz, 32, of Salinas, pleaded guilty to the charges on October 3, 2018. According to the plea agreement, Cruz admitted to being a member of the Salinas-based Norteño street gang clique known as “Santa Rita.” Cruz also admitted to being a member of a larger racketeering enterprise known as the Salinas Norteños Enterprise (the “Enterprise”) consisting of several violent Norteño cliques in Salinas. Cruz was a member of both groups from 2009 to 2011. Santa Rita and other Norteño cliques in Salinas committed acts of violence for the benefit of the gang, including murder, attempted murder, and robbery. Among other acts of violence, members of Santa Rita sought to attack and kill members of rival Sureño gang cliques, as well as members of other rival gangs.
The murders, attempted murders, and robberies to which Cruz pleaded guilty took place between December 2009 and January 2011. On December 2, 2009, Cruz went to Lohman Street in Salinas to shoot an individual that he and his fellow Enterprise members selected as a target and believed was a rival Sureño gang member. Cruz staked out the victim’s house in the early morning hours until the victim came out of his house and began warming up his car. Cruz approached and shot the victim multiple times with a .380 caliber handgun. The victim died as a result of Cruz’s attack.
On July 12, 2010, Cruz went to the Northgate apartment complex in Salinas with a fellow Enterprise member to shoot individuals they believed were Sureño gang members who had recently moved into the complex. Cruz armed his fellow Enterprise member with a firearm that was used to shoot at two victims working on a car in the parking lot of the apartment complex. The gunfire struck one of the victims in the lower back. The .45 caliber pistol used in the shooting was later recovered from Cruz’s backpack when Cruz was arrested in 2012.
On August 17, 2010, Cruz and a fellow Enterprise member drove around Salinas hunting for a Sureño to shoot and kill. When they spotted an individual they believed was a rival Sureño, Cruz stopped the car near the victim and Cruz’s passenger got out of the car and fired his gun at the victim multiple times. The victim died as a result of the shooting.
On November 19, 2010, Cruz and other Enterprise members learned there was a house party at a residence the Enterprise had identified as a Sureño hang out. A fellow Enterprise member conducted reconnaissance and confirmed that Sureños were having a party at the residence, and then patrolled the neighborhood in his car as a lookout for law enforcement. Cruz drove two codefendants to shoot up the party and supplied one of the shooters with a .40 caliber Glock handgun with an extended magazine. Cruz remained in his vehicle while the other two Enterprise members approached the house on foot. When they got to the driveway, one of the gunmen fired more than 10 rounds, killing one victim and injuring another.
Cruz also acted as the getaway driver in several armed robberies, including the June 2, 2010, robbery of the Zales jewelry store in Gilroy; the November 23, 2010 robbery of the Bank of the West in San Jose; the December 16, 2010 robbery of the Wells Fargo Bank in Watsonville; and the January 7, 2011 robbery of the Rabobank in Watsonville. In each robbery, Enterprise members entered the establishment and brandished firearms to induce employees to turn over cash and jewelry. The Enterprise stole jewelry with a retail value of more than $800,000, and cash proceeds estimated at more than $92,000.
On October 28, 2015, a federal grand jury indicted Cruz and eight other Salinas Norteño gang members. According to the Superseding Indictment, all nine defendants committed crimes as part of Norteño gang activity. The superseding indictment alleges that, over a two-year period, the defendants committed 12 murders, seven attempted murders, and numerous armed robberies of banks, financial institutions, and commercial establishments. The following additional three defendants have pleaded guilty to crimes as part of the criminal RICO enterprise:
Name
Charges
Sentence
Julian Ruiz
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Use/Possession of Firearm in Furtherance of Crime of Violence, 18 U.S.C. § 924(c)(1)(A) and 2
Sentenced February 28, 2018, to 210 months in prison and 5 years supervised release
Anthony Lek
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Use/Possession of Firearm in Furtherance of Crime of Violence, 18 U.S.C. § 924(c)(1)(A) and 2
Robbery Affecting Interstate Commerce, 18 U.S.C. § 1951(a)
Use/Possession of Firearm in Furtherance of Crime of Violence, 18 U.S.C. § 924(c)(1)(A) and 2
Sentenced November 28, 2018, to 180 months ii prison and 5 years supervised release
Robert Loera
Racketeering Conspiracy, 18 U.S.C. § 1962(d)
Accessory After the Fact
18 U.S.C. § 1959(a)(5) and 3
Sentenced on October 24, 2018, to 144 months in prison and 5 years supervised release
The investigation leading to the indictment was part of the FBI’s crackdown on Norteño gangs in Monterey County.
In sentencing Cruz, Judge Koh described Cruz’s crimes as “heinous.” In addition to the prison term, Judge Koh sentenced Cruz to a five-year period of supervised release to commence after Cruz completes his prison sentence, and $324,915.59 in restitution. Cruz is currently being held in the custody of the United States Marshals Service. He has been in custody since June 2012 when he was arrested on a separate criminal charge.
Assistant U.S. Attorneys Stephen Meyer and Christiaan Highsmith are prosecuting the case with the assistance of Nina Burney Williams and Lance Libatique. The prosecution is the result of an investigation by the FBI and Salinas Police Department.
New Mexico Man Convicted in Amarillo Minor Sex CaseRead the Press Release
Following a three-day trial, a federal jury in Amarillo convicted a New Mexico man who kidnapped and assaulted a young girl from Texas, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Royce Wade Lander, 32, of Continental Divide, N.M., was convicted Wednesday evening of transportation of a minor with intent to engage in criminal sexual activity.
According to testimony presented at trial, Mr. Lander picked up his minor victim at a truck stop near Amarillo. He drove her hundreds of miles along I-40 into New Mexico, where he sexually assaulted her until she was able to escape.
Mr. Lander now faces a sentence of up to life in federal prison.
The Federal Bureau of Investigation and the Potter County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Sean Taylor, Anna Marie Bell, and Josh Frausto prosecuted the case.
New Britain Man Sentenced to Federal Prison for Drug and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CALVIN VAUGHN, also known as “Squeaks,” 35, of New Britain was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 34 months of imprisonment, followed by five years of supervised release, for drug trafficking and firearm possession offenses.
This matter stems from a joint investigation headed by the DEA New Haven Task Force into a central Connecticut cocaine and crack cocaine trafficking ring. The investigation, which included the use of court-authorized wiretaps, controlled purchases of crack cocaine and seizures of cocaine and cash proceeds, revealed that Westley Northrup, also known as “Piff,” operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody at the Cheshire Correctional Institution. Northrup conspired with Carlos Roman, also known as “Frizz,” of Middletown, to purchase cocaine from suppliers, including Omar Rivera of New Britain, convert some of the cocaine to crack cocaine, and then distribute crack and cocaine through a network of dealers, including Vaughn.
Vaughn and others involved in this narcotics trafficking conspiracy were arrested on July 26, 2017. On that date, investigators executed multiple search warrants and seized approximately seven kilograms of cocaine, several pounds of marijuana, four firearms, and nearly $100,000 in cash. One of the firearms was found in the bathroom of Vaughn’s New Britain residence.
Vaughn’s criminal history includes felony convictions for narcotics and weapon offenses.
Vaughn has been detained since his arrest. On June 20, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and cocaine base (“crack”), and one count of possession of a firearm by a previously convicted felon.
Northrup, Roman and Rivera pleaded guilty to related charges. On April 12, 2018, Roman was sentenced to 120 months of imprisonment. Northrup and Rivera await sentencing.
This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
New Britain Man Sentenced to 3 Years in Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MICHAEL RIVERA, 25, of New Britain, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, Rivera’s brother, Luis “Gordo” Cirino, coordinated the shipment of multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in Connecticut. Cirino, Rivera and others then distributed the drug in central Connecticut, and also in northeastern Pennsylvania. Investigators seized approximately 13 kilograms of cocaine during the investigation.
On October 18, 2017, a grand jury in New Haven returned an indictment charging Cirino, Rivera and six associates with cocaine trafficking offenses.
Rivera was arrested on October 25, 2017. On January 25, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine.
Cirino also pleaded guilty and, on April 29, 2019, was sentenced to 135 months of imprisonment.
This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Mississippi Couple Plead Guilty to Receiving $1.7 Million in Health Care Kickback SchemeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that a Mississippi couple, KIMBERLY HOMRIGHAUSEN, age 42, and RICHARD HOMRIGHAUSEN, age 36, pleaded guilty on May 2, 2019, to conspiracy to pay and receive kickbacks related to compounded medications paid for by TRICARE, a federally funded health care benefit program that serves United States military personnel and their families.
The defendants admitted to paying kickbacks to TRICARE beneficiaries to induce them to obtain compounded medications, costing TRICARE a total of approximately $9 million. The defendants received a total of about $1.7 million in kickbacks for referring the beneficiaries.
At sentencing, which is set for August 8, 2019, each defendant faces up to five years’ imprisonment.
U.S. Attorney Strasser praised the work of the Defense Criminal Investigative Service, the Department of Homeland Security - Homeland Security Investigations, the Federal Bureau of Investigation, the United States Postal Service - Office of Inspector General, and the Department of Veterans Affairs - Office of Inspector General in investigating this matter. Assistant United States Attorney Chandra Menon is in charge of the prosecution.
Mexican National Apprehended at the Rohlsen Airport, St. Croix Sentenced for Reentry of Removed AlienRead the Press Release
St. Croix, USVI – Manuel Alberto Fuentes-Acosta, 46, a citizen of Mexico, was sentenced Thursday for reentry of removed alien, United States Attorney Gretchen C.F. Shappert announced.
Visiting Judge Anne E. Thompson sentenced Fuentes-Acosta to time served and a $100 special assessment. Defendant had been detained from November 2018.
Fuentes-Acosta pled guilty February 4, 2019. According to the plea agreement filed in court on November 9, 2018, while seeking to board the American Airline flight, the defendant presented himself to CBP primary inspection at the Rohlsen Airport on St. Croix. The defendant advised the primary officer that he was illegally in the United States. He was referred to secondary inspection where he repeated to the secondary officer that he was in the United States illegally and did not have a visa. The defendant was arrested and told Homeland Security agents that he entered the United States in 1996 illegally and was deported in 2017 from Laredo, TX. The defendant stated that he remained in Mexico and subsequently returned to the United States without inspection. He further stated he paid a smuggler $2,000 to $3,000 to transport him into the United States by crossing the river from Mexico to Del Rio, TX in April 2018.
The investigation revealed the defendant was deported on June 1, 2017 from Laredo, TX to Nuevo Laredo, Mexico and that he did not obtain consent from the Attorney General to re-enter the United States.
Mexican Citizen Indicted for Illegal Reentry after Five Previous DeportationsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Juan Manuel Bedolla-Lopez, 33, of Toughkenamon, PA, was charged today by indictment with illegal reentry after deportation.
The indictment alleges that Bedolla-Lopez, an illegal alien, and native and citizen of Mexico, was previously deported from the United States on or about December 20, 2010, May 6, 2011, May 12, 2011, May 25, 2011, and March 19, 2012. Following the latest of his five deportations, Bedolla-Lopez allegedly reentered the United States illegally. If convicted of this current illegal reentry offense, the defendant faces a maximum possible sentence of two years’ imprisonment.
“The United States of America is a nation of laws, including laws about how people can enter the country,” said U.S. Attorney McSwain. “This man has allegedly been removed from the United States five times, and yet he continues to reenter illegally and defy our laws. This blatant flouting of our nation’s immigration laws will not be tolerated.”
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Special Assistant United States Attorney Mark T. Sendek.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican Citizen Arrested on Child Pornography ChargesRead the Press Release
McALLEN, Texas – A 27-year-old man residing in Donna has been taken into custody on charges of receipt of child pornography, announced U.S. Attorney Ryan K. Patrick.
Law enforcement arrested Angel DeJesus Torres at his residence last night. He is expected to make his initial appearance before U.S. Magistrate Judge Scott Hacker at 10:30 a.m. today.
The complaint alleges Torres downloaded, received and possessed hundreds of images and videos of child pornography on electronic devices.
Authorities conducted on investigation to identify persons using peer-to-peer software on the internet to traffic in child pornography and ultimately located a computer, allegedly linked to Torres. They conducted a search at his residence and seized two cell phones, according to the charges.
The complaint alleges law enforcement discovered multiple image and video files of child pornography on at least one of those devices.
The allegations indicate he had been engaged in similar behavior for many years.
If convicted, Torres faces up to five years in federal prison and a possible fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation as part of the Rio Grande Valley Child Exploitation Investigations Task Force.
Assistant U.S. Attorneys Steven Belt and Andrew Henning are prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.McClain Man Sentenced to over Six Years for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Myles Leandre Moody, 31, of McClain, Mississippi, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 78 months in federal prison, followed by five years of supervised release, for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation. Moody was also ordered to pay a $5,000 fine.
Moody pled guilty on January 31, 2019, to one count of possession with intent to distribute methamphetamine. On May 25, 2017, and on June 13, 2017, Moody sold approximately an ounce of methamphetamine to a confidential source. He was also held accountable for an additional four ounces of methamphetamine.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
Maryland Man Sentenced to 41 Months in Prison for Bank RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 30, 2019, United States District Court Judge Yvette Kane sentenced Jacob Charles LaFrance, age 29, of Thurmont, Maryland, to 41 months’ imprisonment followed by three years of supervised release. LaFrance was also ordered to pay $6,114 in restitution.
According to United States Attorney David J. Freed, LaFrance committed the armed robberies of the following banks:
- PNC Bank in Fairfield, Adams County, on April 25, 2018, stole $4,266; and
- M&T Bank in Blue Ridge Summit, Franklin County, on May 3, 2018, stole $1,848.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Frederick County (MD) Sheriff’s Office, the Carroll Valley Borough Police, and the Washington Township Police Department. Assistant United States Attorney James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Manhattan Doctor Pleads Guilty to Illegally Distributing Oxycodone and Other DrugsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOSEPH OLIVIERI, a physician who practiced in Manhattan, pled guilty today before U.S. District Judge Paul A. Crotty to participating in a conspiracy to illegally distribute oxycodone and other controlled substances. OLIVIERI’s co-defendant MATTHEW BRADY pled guilty on April 30, 2019, to his role in the conspiracy.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Joseph Olivieri violated his oath to practice medicine for the sole purpose of improving his patients’ health and instead hid behind his medical license to sell addictive, dangerous narcotics. He put his peoples’ lives at risk to line his own pockets. He now faces time in prison for his crimes.”
According to the allegations in the Superseding Indictment, other court filings, and statements made during court proceedings:
OLIVIERI, a physician who practiced in New York, New York, participated in a five-year-long scheme to divert oxycodone and other controlled substances for illicit use. OLIVIERI was one of the top 15 prescribers of opioids in New York State during much of the diversion scheme. He prescribed over 250,000 pills of controlled substances, including highly addictive opioids such as oxycodone, oxymorphone, and morphine sulfate, to individuals he knew did not have a legitimate medical need for them. OLIVIERI was paid in cash for these prescriptions, often by other individuals, including co-defendant MATTHEW BRADY, who arranged with OLIVIERI for individuals posing as “patients” to obtain the prescriptions from OLIVIERI, and then collected the pills for their unlawful re-sale. Financial records show that OLIVIERI deposited more than $1 million in cash into his bank accounts during the scheme.
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OLIVIERI, 72, of Scranton, Pennsylvania, pled guilty to one count of conspiracy to distribute controlled substances outside the scope of professional practice and not for a legitimate medical purpose, which carries a maximum sentence of 20 years in prison. OLIVIERI is scheduled to be sentenced by Judge Crotty on August 5, 2019, at 11:00 a.m.
BRADY, 34, of Staten Island, New York, pled guilty on April 30, 2019, also before Judge Crotty, to one count of conspiracy to unlawfully distribute controlled substances, which carries a maximum sentence of 20 years in prison. BRADY is scheduled to be sentenced by Judge Crotty on July 30, 2019, at 11:30 a.m.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the defendants’ sentences will be determined by Judge Crotty.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, United States Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, and the Office of Inspector General of the United States Department of Health and Human Services.
The case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Tara La Morte, Robert B. Sobelman, and Daniel C. Richenthal are in charge of the prosecution.
Manchester Man Pleads Guilty to Felon in Possession of A FirearmRead the Press Release
CONCORD - Joshua Hooper, 36, of Manchester, pleaded guilty in federal court to felon in possession of a firearm, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, law enforcement officers obtained information that Hooper was selling firearms. At the time, Hooper was prohibited from possessing any firearms or ammunition as a result of at least one prior felony conviction. On July 15, 2017, Hooper possessed a Noveski Rifleworks, Model N4, lower receiver, and sold that firearm to another individual. On March 23, 2018, law enforcement officers obtained a search warrant for Hooper’s residence. While executing the search warrant, officers recovered a large quantity of ammunition and other firearm accessories.
Hooper is scheduled to be sentenced on July 22nd 2019.
“Federal law is designed to keep firearms out of the hands of criminals,” said U.S. Attorney Murray. “Armed felons are a threat to public safety. Through Project Safe Neighborhoods, we work closely with our law enforcement partners to identify and prosecute criminals who illegally possess guns.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski. The case was previously prosecuted by Assistant U.S. Attorney Shane Kelbley.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced to Prison for Williamsburg Bombing PlotRead the Press Release
NEWPORT NEWS, Va. – A Gloucester County man was sentenced today to 10 years in prison for possession of unregistered explosive devices and making a false material statement to federal agents.
“Thanks to the professionalism, bravery, and collaboration of federal, state, and local law enforcement, Powers was brought to justice and will now pay the price for his cowardly criminal acts,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Thankfully, he will now be in a place where his apparent desire to hurt innocent individuals will be nearly impossible.”
According to witness testimony and court documents, Stephen Powers, 31, was a maintenance employee of Colonial Williamsburg. While in that role he began to work on what would ultimately be the creation of four explosive devices or pipe bombs. In October 2017, Powers took one of the explosive devices to an area in the commercial area of Colonial Williamsburg. The area was particularly busy given the Homecoming events associated with the College of William and Mary. Powers connected one of these devices to an outlet. The outlet was programed to receive electrical current at 5:00pm each evening so that decorative lights would activate in the shopping area. When the outlet activated, the explosive device ignited and exploded. This explosion sent large fragments of metal in several directions, landing as far away as 200 feet. The force of the explosion was sufficient to cause significant injury or death if any individuals had been struck by the fragments.
“We should all feel extremely fortunate this individual’s recklessness and brazen indifference for human life did not result in someone being killed or seriously injured,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. So long as there are criminals out there whose aim is to disrupt the peace in our communities, ATF will continue to advance its mission to combat violent crime. I am proud of the outstanding investigative work done by the ATF Norfolk Office and those investigators with the Williamsburg Police Department, the Virginia State Bomb Squad and the FBI, who quickly identified and brought this individual to justice.”
When Powers was identified as a suspect and interviewed by Special Agents from ATF and FBI, Powers made multiple false material statements, including claims of military service and that his credit card, which was used to purchase bomb components had been stolen from him.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys Eric M. Hurt and Robert E. Bradenham prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-37.
Lori Isenberg Sentenced in Wire Fraud and Federal Program Theft Case Involving over $570,000Read the Press Release
Coeur d’Alene – Laurecene (Lori) Barnes Isenberg, 65, of Coeur d’Alene, was sentenced on April 30, 2019 to 60 months in prison for wire fraud and theft from a federal program, U.S. Attorney Bart M. Davis announced.
Senior U.S. District Judge Edward J. Lodge sentenced Isenberg to 60 months in federal prison and ordered Isenberg to pay $579,495.75 in restitution as well as a $20,000 fine. After her prison term is up Isenberg will serve three years on supervised release during which time she will report to a federal probation officer.
During Isenberg’s sentencing, victim impact statements were made by the North Idaho Housing Coalition President and the Idaho Housing and Finance Association Program Manager. Both outlined how Isenberg’s theft from the nonprofit prohibited the nonprofit Coalition from helping low income families find affordable housing. Additionally it was noted that nonprofits are overseen by a volunteer board who rely on honest employees to fulfill the mission of the organization. They explained how sophisticated Isenberg’s scheme was.
According to court records, Isenberg admitted to stealing $579,495.75 from the North Idaho Housing Coalition which was funded in part with grants from the U.S. Department of Housing and Urban Development administered through the Idaho Housing and Finance Association. Isenberg was the executive director when she engaged in a scheme to submit false invoices and expenses for payment. These invoices were often submitted in the names of companies she set up in her daughter’s names.
On May 1, 2019, Isenberg’s remaining two daughters, Tracy Tesch, 34, of Rathdrum, Idaho and April Barnes, 42, of Coeur d’Alene, were sentenced by Judge Lodge for conspiracy to commit program theft. Tesch was sentenced to three years’ probation and ordered to pay $15,356.75 in restitution. Barnes was sentenced to one month of home detention, three years’ probation, and ordered to pay $11,585.92 in restitution. Judge Lodge also ordered both to complete 100 hours of community service.
In total, four of Isenberg’s daughters pled guilty to conspiracy to commit program theft in connection with Isenberg’s offense. Collectively, the four daughters were ordered to pay over $58,000 in restitution.
Judge Lodge noted “Isenberg’s crime affected many needy people”.
The case was investigated by the Federal Bureau of Investigation and the Coeur d’Alene City Police Department.
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Lawrenceburg Man Indicted for Online Threats, False Statements, and Illegal Possession of FirearmRead the Press Release
LEXINGTON, Ky. – A Lawrenceburg, Ky., man was indicted today for threatening a school shooting, making threats to and intimidating other individuals over social media, illegally possessing a firearm in furtherance of those threats, and related crimes.
A federal grand jury in Lexington returned an indictment charging 21-year-old Dylan Lee Jarrell with three counts of threatening interstate communications, two counts of cyberstalking, one count of false statements, and one count of possession of a firearm in furtherance of a crime of violence.
The indictment alleges that Jarrell used the internet site Reddit, in May 2018, to post a statement that was interpreted as a threat to attack a school and injure its occupants, and that he then lied to an FBI agent to conceal his activities. According to the indictment, in July and September 2018, Jarrell also used Instagram to make a series of threatening and harassing statements to an individual identified as D.B. Finally, in October 2018, Jarrell used Facebook to harass and intimidate an individual identified as K.B. The indictment alleges that Jarrell obtained and possessed an AR-15 rifle in furtherance of his threats to the school and to D.B.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Richard W. Sanders, Commissioner, Kentucky State Police jointly announced the indictment.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Kentucky State Police. The indictment was presented to the grand jury by Assistant U.S. Attorney Andrew T. Boone.
A date for Jarrell to appear in court has not yet been scheduled. He faces up to five years in prison for each threatening interstate communication count, up to five years in prison for each cyberstalking count, up to eight years in prison for the false statements count, and not less than five years in prison for the firearms possession count. Each count carries a maximum fine of $250,000. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
Las Vegas Man Convicted of First Degree Murder in Connection with Drug Deal Gone BadRead the Press Release
LAS VEGAS, Nev. – A federal jury convicted a Las Vegas man Tuesday of drug and firearm crimes that resulted in the death of a man during a drug deal in November 2013, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
After a seven-day trial, Louis Matthews, 37, was found guilty of conspiracy to possess marijuana with intent to distribute and using a firearm during and in relation to a drug trafficking crime resulting in death. United States District Judge Andrew P. Gordon presided over the trial and set a sentencing date for August 1, 2019.
The evidence at trial showed that Matthews and his co-defendant John Thomas, met in a North Las Vegas apartment in November 2013, to buy 20 pounds of marijuana from three suppliers: Angel Juarez, Julio Nunez, and Luciano Madrigal-Herrera. During the deal, Matthews and Thomas drew handguns and shot Madrigal-Herrera seven times in the chest, killing him, and robbing him of the marijuana. As Matthews and Thomas made their getaways, Nunez chased after them with a shotgun, shooting Thomas in the back shoulder, wounding him, and causing the two to drop the marijuana they stole. All four men fled the scene with no arrests.
The ensuing police investigation, however, led to their arrests and federal charges. Thomas, Nunez, and Juarez have all been sentenced to prison on charges related to the homicide. Matthews was the last of the four to be convicted.
Matthews has prior felony convictions for Possession of a Controlled Substance in 2001, Bribing or Intimidating Witness to Influence Testimony in 2004, Possession of a Controlled Substance in 2005, Possession with Intent to Distribute Cocaine Base in 2005 and Battery with Substantial Bodily Harm in 2015. Matthews had been released from federal custody less than a month prior to committing the murder on November 30, 2013. Matthews also had three prior arrests for murder and attempted murder with a deadly weapon along with an additional arrest for discharging a weapon.
Matthews faces a maximum term of life imprisonment.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and North Las Vegas Police Department. The case was prosecuted by Assistant United States Attorneys Alexandra Michael and Steven Myhre.
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Lake Worth Tax Preparer Charged FederallyRead the Press Release
A Lake Worth tax preparer is charged with fraudulently endorsing a Treasury check and committing tax return fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) made the announcement.
Paul E. Senat, 38, of West Palm Beach, Florida, has been charged by indictment with one count of fraudulent endorsement of a Treasury check, one count of theft of government money, one count of aggravated identity theft, and twelve counts of aiding and assisting the preparation of false tax returns (Case No. 19-80024-CR-Rosenberg). If convicted, Senat faces up to 10 years in prison for fraudulent endorsement and/or theft of government money, a mandatory consecutive 2 year prison term for aggravated identity theft, and up to 3 years in prison for preparing false tax returns. He also faces fines and a term of supervisory release. Senat is scheduled to be arraigned on May 6, 2019.
According to the indictment and allegations made in court, Senat owns and operates American Justice, a tax preparation storefront in Lake Worth, Florida. He opened the business in December 2010. Senat personally prepares and/or oversees all filing of all returns from his business storefront. Returns filed by Senat routinely claim business losses and other credits, including an education credit, that did not truly exist. This increases the amount of the tax refund paid by the IRS.
It is alleged that Senat not only charges an upfront preparer fee from the client, but he also allegedly takes approximately $1,000 from each refund as an additional fee before issuing the funds to the taxpayer.
It is further alleged that Senat has had two Electronic Filer Identification Numbers (EFINs) suspended by the IRS. These allow a person to electronically file tax returns on behalf of other taxpayers. After these were suspended, Senat allegedly began using nominees to obtain EFINs to continue his perpetration of the tax scheme.
The estimated total loss attributable to Senat’s tax preparer fraud scheme is $11,719,087.
A stolen U.S. Treasury check was allegedly deposited into a Chase bank account for which Senat was the sole signatory.
An indictment merely contains allegations. A defendant is presumed innocent until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI in this matter. This case is being prosecuted by Assistant U. S. Attorney Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Kent Man Who Made Multiple Online Threats to Kill Arrested on Federal ChargesRead the Press Release
A 27-year-old Kent, Washington resident is in custody charged with two counts of making interstate threats for his online posts regarding members of President Trump’s family as well as ongoing threats to bomb synagogues and threats made against media figures in Southern California, announced U.S. Attorney Brian T. Moran. CHASE BLISS COLASURDO, was arrested May 1, 2019 and will make his initial appearance in U.S. District Court in Seattle at 2:00 PM Thursday May 2, 2019.
According to the criminal complaint, in March 2019, a member of the public reported to the FBI concerns about Instagram and other social media posts where COLASURDO threatened to execute members of President Donald Trump’s family. Additionally, COLASURDO sent messages to five different media organizations that he was going to execute the family member. COLASURDO posted a photo on Instagram showing a hand with a firearm pointed at the photo of a Trump family member. When initially contacted by law enforcement in March, COLASURDO claimed his social media accounts had been hacked.
Despite his statements that he was not responsible for the posts, COLASURDO continued to make threatening comments, specifically threats to members of the Jewish community. In one post he wrote it was time to start “bombing synagogues.” As law enforcement continued to track his activity, it became clear he was purchasing various items related to firearms such as a holster, bulletproof vest and ammunition. COLASURDO attempted to purchase a firearm but was denied.
FBI agents arrested COLASURDO without incident about 11:30 AM on May 1, 2019.
The charges contained in the complaint are allegations. A defendant is presumed innocent unless and until the charges are proven in court beyond a reasonable doubt.
Interstate threats are punishable by up to five years in prison and three of supervised release.
The case is being investigated by the FBI in conjunction with an investigation by the Los Angles Police Department. The case in the Western District of Washington is being prosecuted by Assistant United States Attorney Todd Greenberg.
Jury Convicts LPR of Conspiring to Transport Illegal AlienRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old legal permanent resident alien who resided in Houston has been convicted of conspiring to and transporting an illegal alien within the United States, announced U.S. Attorney Ryan K. Patrick.
A federal jury sitting in Corpus Christi convicted Arturo Javier Garcia-Perez following two days of trial and less than an hour of deliberation.
A Robstown police officer had pulled over a black 2007 Chevy pickup truck in the early morning hours of Jan. 27, 2019, on Highway 77 near Terrie Shamsie Boulevard for a faulty license plate light and obstructed view.
Garcia-Perez was the driver. While being questioned, Garcia-Perez began to be evasive.
There were three others in the vehicle who were also questioned. The stories conflicted. Border Patrol was called to assist and ultimately determined that one of the occupants was a citizen of Honduras, illegally present in the United States.
The jury heard Garcia-Perez admitted to agents that he had dropped off his co-defendants and the illegal alien south of the Falfurrias border patrol checkpoint and picked them up north of the checkpoint.
Garcia-Perez attempted to convince the jury that he didn’t know the status of the alien. They did not believe his claims and found him guilty as charged.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for July 24, 2019. At that time, Garcia-Perez faces up to 10 years for the conspiracy and five years for transportation of an illegal alien. He could also be imposed up to $250,000 in fines and could lose his status as an LPR.
Previously released on bond, Garcia-Perez was taken into custody following the verdict today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and the Robstown Police Department conducted the joint investigation. Assistant U.S. Attorneys Jason Supplee and Michael Hess are prosecuting the case.
Jury Convicts Doctor of Health Care Fraud, Distributing Controlled Substances through Pain Cream Scheme and Suboxone ClinicRead the Press Release
COLUMBUS, Ohio – A jury has convicted a Central Ohio doctor with charges related to a health care fraud scheme that included marketing prescription creams in Sav-a-Lot and low-income neighborhoods and persistently mailing those creams to Medicaid customers, as well as prescribing and distributing Suboxone without medical necessity.
Bernard Oppong, 60, of Blacklick, Ohio was convicted on five counts following a trial that began on April 22 before U.S. District Judge Algenon L. Marbley.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Dave Yost and Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy announced the conviction.
According to court documents and testimony at trial, from January 2013 until April 2017, Oppong committed health care fraud.
Oppong was employed as a doctor at Health and Wellness Medical Center located on Perimeter Drive in Dublin. The center is affiliated with Health and Wellness Pharmacy on Blazer Parkway in Dublin. Co-defendants also previously operated a pharmacy location within Sav-a-Lot on Mock Road in Columbus.
Oppong and others sought to enrich themselves by billing for compound creams that were either not provided or were not medically necessary, billing for counseling services that were not provided, billing for individual counseling sessions that actually occurred in a group setting and billing for counseling services performed by an unqualified individual when there was no proper supervising physician.
Compound Creams
Oppong and others prescribed and Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams, and Oppong was the ordering provider for more than half a million dollars of the claims.
For example, between January 2014 and April 2015, Health and Wellness Pharmacy submitted 1,436 claims for one compound cream, known as VersabaseA. The pharmacy with the second-highest amount of claims for that cream in that time only submitted 202 claims.
During the first quarter of 2015, Health and Wellness would sometimes bill for less than 10 prescriptions per day, and on other days it would bill for as many as 477 prescriptions. It also billed for filling prescriptions on Saturdays and Sundays when the pharmacy was not open.
Defendants billed for the creams with no medical necessity, as patients never requested the creams, were never actually prescribed them and had never met with Oppong.
The pharmacy marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit.
Patients with CareSource were targeted and told they were receiving free samples of pain cream. Then they began to receive more cream in the mail without requesting more. These were also billed to CareSource.
Customers at Sav-a-Lot and in low-income neighborhoods were asked to fill out a survey asking about any conditions that they suffered from. Then, they would receive the compound creams in the mail every month, even when customers directed the co-conspirators to stop sending them. Many of these customers never met with a doctor, nor did they know Oppong, the prescribing physician.
Suboxone
Oppong was registered through the DEA to prescribe the drug addiction treatment Suboxone to up to 275 patients at any one given time.
Health and Wellness Medical Center submitted fraudulent claims to Medicaid for psychotherapy services that were never rendered to patients.
Specifically, patients indicated they would sit in a room with a timer. When the timer went off, they were allowed to leave and receive their Suboxone prescription, which was written by Oppong and co-conspirators. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.
Oppong pre-signed prescriptions for Suboxone and left them at the medical center for anyone to distribute. Prescriptions were issued to patients who had repeatedly failed urine tests.
The medical center treated patients paying with cash differently than those with insurance. The patients paying with cash only had appointments every two weeks or once a month, and paid $300. Insured patients had appointments three times a week. Cash-paying patients were only required to attend 15 to 30 minutes of counseling, while insured patients were required to stay for one hour.
Oppong and co-defendants averaged more than 150 patients per day.
Oppong was convicted of one count of executing a health care fraud scheme (punishable by up to 10 years in prison), as well as three counts of making false health care statements (five years per count) and one count of conspiracy to distribute a controlled substance (15 years).
Co-defendants
Hilliard couple Darrell L. Bryant, 43, and Gifty Kusi, 34, were convicted by a jury in December 2018 of conspiracy to commit health care fraud and health care fraud following a two-week trial before Judge Marbley.
A final defendant Jornel Rivera, 54, of Dublin, pleaded guilty in May 2018 to making false statements related to health care matters. Rivera served as the Medical Director of Health and Wellness Medical Center.
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Office’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, HHS-OIG, FBI and DEA, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are prosecuting the case.
This case is being prosecuted as part of the Department of Justice’s Opioid Fraud and Abuse Detection Unit. Assistant United States Attorney Flaherty represents the unit in the Southern District of Ohio, which is one of 12 Districts to receive funding for such a prosecutor.
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Johnstown Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Justin R. Guillarmod, 36, pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 27, 2017, Guillarmod and a co-defendant did possess with intent to distribute more than 100 grams of heroin.
Judge Gibson scheduled sentencing for Sept. 30, 2019, at 11 a.m. The law provides for a maximum sentence for Guillarmod of 40 years in prison and a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Guillarmod.
Jefferson County Felon Indicted for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A 26-year-old Beaumont, Texas man has been indicted for federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown.
Bernard James Bell was arrested on Apr. 17, 2019, pursuant to a criminal complaint issued by the U.S. District Court charging him with felon in possession of a firearm. Bell was indicted on those charges by a federal grand jury on May 1, 2019.
According to information presented in court, on Apr. 11, 2019, law enforcement officers began investigating a homicide that occurred in Beaumont’s west end. On Apr. 14, 2019, investigators learned that Bell was provided a firearm that was used in connection with that homicide. After speaking with Bell, investigators recovered the firearm and determined that Bell had possessed it. Further investigation revealed Bell is a convicted felon having several convictions in Jefferson County, Texas in 2011 and 2012. As a convicted felon, Bell is prohibited from owning or possessing firearms or ammunition.
If convicted, Bell faces up to 10 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
It is important to note that a complaint, arrest, or 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.
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Illegal Alien Sentenced for Unlawful Reentry After RemovalRead the Press Release
Gulfport, Miss. – Jose Garcia Faustino, 21, of Mexico, was sentenced today by U.S. District Judge Louis Guirola to “time served” or 95 days in prison, followed by one year of supervised release, for unlawful reentry by an alien after deportation or removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
As a result of this felony conviction, if Garcia Faustino were to unlawfully return again to the United States, he could face up to ten years in federal prison. Garcia Faustino pled guilty on March 18, 2019, before Judge Guirola.
On or about January 28, 2019, an interdiction agent of the South Mississippi Metro Enforcement Team conducted a traffic stop on a GMC Yukon XL with South Carolina license plates at or about the 62-mile marker on interstate I-10 eastbound in Jackson County. The agent observed eight occupants of the vehicle, including Jose Garcia Faustino. Border Patrol Agents arrived on the scene shortly thereafter, and interviewed the occupants of the vehicle as to their citizenships, determining none had proper documents and all were illegally present in the United States.
Of the eight total vehicle occupants (two drivers and six passengers) all were illegal aliens from the Mexican State of Guerrero. All occupants were arrested and transported to the Border Patrol Station in Gulfport. HSI and Border Patrol agents determined that the six passengers were being smuggled within the United States. Further investigation revealed that Garcia Faustino is a citizen of Mexico, and previously had been ordered removed from the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, the United States Border Patrol, the Jackson County Sheriff’s Department and the City of Gautier Police Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Illegal Alien Previously Removed Seven Times Pleads Guilty to Again Unlawfully Reentering the United StatesRead the Press Release
Gulfport, Miss. – Alejandro Sosa-Cruz, an illegal alien from Mexico, pled guilty yesterday before U.S. District Judge Sul Ozerden to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, and Mr. Trey Lund, Acting Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) in New Orleans.
Sosa-Cruz will be sentenced by Judge Ozerden, on August 1, 2019, at 9:30 a.m. He faces a potential maximum penalty of 2 years in prison and a maximum $250,000 fine. He will also be removed from the United States again following the completion of any prison sentence.
On or about February 1, 2019, in Harrison County, a D’Iberville Police Officer conducted a traffic stop on the Sosa-Cruz’s vehicle for an obscured license plate. Sosa-Cruz also did not have a valid Driver’s License. An ICE officer was promptly called to the scene and arrested Sosa-Cruz after he admitted to being an illegal alien to the United States. Sosa-Cruz was later positively identified via a fingerprint scan through the Department of Homeland Security computerized records system.
Since 2012, Sosa-Cruz had been removed from the United States on seven prior occasions. This was his eighth time to illegally enter the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations, the City of D’Iberville Police Department, the Harrison County Criminal Interdiction Task Force, and the Harrison County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for this case.
Honduran National Sentenced with Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that LENIS PADILLA RUIZ age 32, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Indictment for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to court documents, RUIZ was found in the United States on or about November 19, 2018, after having been previously removed therefrom on or about April 1, 2016.
RUIZ was sentenced to time served and a $100.00 special assessment. Additionally, RUIZ was turned over to Immigration and Customs Enforcement for deportation.
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 Julia K. Evans is in charge of the prosecution.
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Georgia Precious Metals Broker Sentenced to Prison for Willfully Failing to File Tax ReturnsRead the Press Release
An Atlanta precious metals broker was sentenced to 21 months in prison today following his Dec. 12, 2018, conviction by a federal jury on three counts of failing to file income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. Hakim has been in custody since April 12, 2019. He was arrested and jailed after he failed to appear for his original sentencing date.
According to court documents and evidence presented at trial, Saleem Hakim was in the business of brokering the sale of precious metals to clients. As a precious metals broker, Hakim received funds from clients, converted a portion of the funds to precious metals, and kept the remainder for his personal use. For the years 2011 through 2013, Hakim retained in excess of $1 million. Despite receiving income in excess of the filing thresholds and knowing his obligation to make and file tax returns, Hakim did not file any income tax returns with the Internal Revenue Service (IRS). Hakim is a former resident of Smyrna, Georgia, and Troy, Michigan.
In addition to the term of prison imposed, U.S. District Judge Michael L. Brown of the Northern District of Georgia ordered Hakim to serve one year of supervised release and to pay $639,006 in restitution to the IRS and $4,603.28 in costs of prosecution.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Jeffrey Bender and Kathryn Sparks of the Tax Division, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Fredericksburg Man Sentenced to Six Years for Dealing FentanylRead the Press Release
RICHMOND, Va. – A Fredericksburg man was sentenced today to six and a half years in prison for possession with intent to distribute fentanyl.
“Illicit fentanyl is killing people every day,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Here, Codynah was not content simply to distribute poison, but endangered additional lives by shooting fentanyl while driving and losing control of his vehicle. We are in a fight for the lives of Virginians. We must remain vigilant in our enforcement efforts, continue to raise awareness in our communities, educate our children on the dangers of opioids, and work across the entire suite of law enforcement efforts to keep fentanyl specifically and opioids in general from hitting the streets.”
According to court documents, Keevon Lujack Codynah, 28, wrecked his car last Fourth of July after using fentanyl and losing consciousness. First responders at the scene of the crash located hypodermic needles and syringes in and around the defendant’s car. After being flown to the hospital for medical treatment, hospital staff located additional hypodermic needles and 38 capsules that each contained fentanyl on Codynah, that he was delivering to another individual for resale Over the course of Codynah’s involvement, he distributed more than 40 grams of fentanyl.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-159.
Founder and Four Executives of Insys Therapeutics Convicted of Racketeering ConspiracyRead the Press Release
BOSTON – The founder and four former executives of Insys Therapeutics Inc. were convicted today by a federal jury in Boston in connection with bribing medical practitioners to prescribe Subsys, a highly-addictive sublingual fentanyl spray intended for cancer patients experiencing breakthrough pain, and for defrauding Medicare and private insurance carriers.
Insys founder and former Executive Chairman John N. Kapoor, 76, of Phoenix, Ariz.; Richard M. Simon, 48, of Seal Beach, Calif., the former National Director of Sales; Sunrise Lee, 38, of Bryant City, Mich., a former Regional Sales Director; Joseph A. Rowan, 45, of Panama City, Fla., a former Regional Sales Director; and Michael J. Gurry, 55, of Scottsdale, Ariz., the former Vice President of Managed Markets, were convicted by a federal jury of RICO conspiracy. Sentencing dates have not yet been set.
Prior to the start of the trial, two other high-level Insys executives pleaded guilty and testified during the trial: Michael Babich, of Scottsdale Ariz., the former CEO and President of the company, and Alec Burlakoff, of Charlotte, N.C., the former Vice President of Sales.
From May 2012 to December 2015, the defendants conspired to bribe practitioners, many of whom operated pain clinics, in order to induce them to prescribe Insys’ fentanyl-based pain medication, Subsys, to patients often when medically unnecessary. Subsys is a powerful, rapid-onset opioid intended to treat cancer patients suffering intense breakthrough pain.
The defendants used pharmacy data to identify practitioners who either prescribed unusually high volumes of rapid-onset opioids, or had demonstrated a capacity to do so, and bribed and provided kickbacks to the practitioners to increase the number of new Subsys prescriptions, and to increase the dosage and number of units of Subsys. The defendants also measured the success of their criminal enterprise by comparing the net revenue earned from targeted practitioners with the total value of bribes and kickbacks paid. The defendants used this information to reduce or eliminate bribes paid to practitioners who failed to meet satisfactory prescribing requirements, which they determined to be the net revenue equal to at least twice the amount of bribes paid to the practitioner.
The bribes and kickbacks took multiple forms. In March 2012, Insys began using “speaker programs” purportedly intended to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners. However, the programs were used as a vehicle to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions and increased dosage. In most instances, the programs were shams.
The defendants also conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. The defendants conspired to achieve this by setting up the “Insys Reimbursement Center,” (IRC) which was dedicated to obtaining prior authorization for payment directly from insurers and pharmacy benefit managers. Beginning in October 2012, employees of the IRC posed as employees of the practitioner and used “the spiel” – a script of false and misleading representations about patient diagnoses in order to secure approval for the drug by the insurance provider. For example, since insurers were more likely to authorize payment for Subsys if a patient was being treated for cancer-related pain, IRC employees were instructed to mislead insurers regarding the true diagnosis of the patient.
“Today’s convictions mark the first successful prosecution of top pharmaceutical executives for crimes related to the illicit marketing and prescribing of opioids,” said United States Attorney Andrew E. Lelling. “Just as we would street-level drug dealers, we will hold pharmaceutical executives responsible for fueling the opioid epidemic by recklessly and illegally distributing these drugs, especially while conspiring to commit racketeering along the way. I applaud the prosecutors and investigators who fought this case to the finish and won. This is a landmark prosecution that vindicated the public’s interest in staunching the flow of opioids into our homes and streets.”
“These executives exploited vulnerable patients and cashed in on dishonest doctors by bribing them to prescribe one of the most powerful, addictive opioid painkillers to patients who should never have received it. Motivated by sheer greed, they lied to insurance companies and are no better than street level drug dealers,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today's verdict marks an important step in holding pharmaceutical company executives responsible for their role in fueling the opioid epidemic. Rest assured, the FBI will continue to identify and bring to justice corrupt individuals and companies whose business practices promote fraud with a total disregard for patient safety.”
“Combating the opioid epidemic remains a top priority for HHS OIG. For too long executives have not been held accountable for corporate wrongdoing. These verdicts underscore our continued commitment to holding individuals and corporations accountable for their fraudulent conduct,” said Phillip Coyne, Special Agent in Charge, U.S Department of Health and Human Services, Office of the Inspector General. “No matter what the scheme or how elaborately disguised, we will follow the evidence where it takes us, including to the corporate ranks. HHS OIG and our law enforcement partners will continue to investigate and prosecute healthcare fraud to the fullest extent of the law.”
“The opioid epidemic is one of the largest public health tragedies our country has faced, and as the FDA continues to forcefully confront the opioid crisis, ensuring safe and appropriate use of these powerful medications remains a cornerstone of our efforts,” said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. “In this case, we’ve seen unacceptable behavior from the defendants who influenced health care providers to prescribe the most powerful type of opioid – an immediate release form of fentanyl – to patients who did not need it, putting them at serious risk of overdose and in some cases, death. The FDA has taken recent steps to strengthen our risk mitigation program for this specific class of products to better ensure the safe use of these products, and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the public health.”
“The reckless actions by these executives whose products included controlled medications increased the potential for diversion and addiction, which jeopardizes the public health and safety,” said DEA Special Agent in Charge Brian D. Boyle. “DEA pledges to work with our law enforcement and regulatory partners to ensure that rules and regulations are followed.”
“The integrity of TRICARE, the U.S. Defense Department's health care program for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “Today’s verdicts are the direct result of a joint effort by several agencies and is demonstrative of their commitment to investigate and prosecute individuals and companies that commit health care fraud. The DCIS will continue to work with its law enforcement partners and the U.S. Attorney's Office to protect the TRICARE program and ensure that TRICARE patients receive the excellent health care that they deserve.”
“This case shows that healthcare fraud will not be tolerated. The Employee Benefits Security Administration will work together with our law enforcement partners in these important investigations to protect participants in private sector health plans, detect and deter health care fraud, and contribute to fighting the opioid epidemic,” said Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Today’s verdict highlights our commitment to defending our mail system from illegal misuse and ensuring public trust in the mail,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “We are committed to investigating and bringing to justice those who contribute to the opioid abuse epidemic. We would not be successful in doing so without our fellow law enforcement partners and the U.S. Attorney’s Office.”
“The verdict in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated,” said Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General in the Northeast Area Field Office. “This is a win for the public in the war against opioids. The Special Agents of the U.S. Postal Service Office of Inspector General will continue to work closely with the U.S. Attorney’s Office and our law enforcement partners to bring those to justice who commit these kind of offenses.”
“Bribing doctors and misrepresenting patient’s medical conditions in order to boost profits by overprescribing a highly addictive opioid is reprehensible criminal conduct,” said Sean J. Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division. “Today’s verdict is an important step in holding those in the industry that commit crimes accountable. Targeting veterans’ dependents in the CHAMPVA program with these corrupt practices is unacceptable and we are pleased to have contributed to this outstanding multi-agency criminal investigation.”
“Every day, millions of Americans struggle with opioid addiction,” said Thomas W. South, OPM Deputy Assistant Inspector General for Investigations. “These executives put the health and wellbeing of Federal employees, annuitants, and their families at risk in order to make a profit. I would like to recognize the incredible work done by the United States Attorney’s Office, OPM OIG agents, and our law enforcement partners to hold these executives accountable. The OPM OIG remains committed in working to stop such unscrupulous behavior.”
The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office would like to acknowledge the cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut, Eastern District of Michigan, Southern District of Alabama, Southern District of New York, District of Rhode Island and the District of New Hampshire. The efforts of the Central District of California and the Justice Department’s Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Lelling’s Health Care Fraud Unit, David Lazarus, Chief of Lelling’s Asset Recovery Unit, and Fred M. Wyshak, Chief of Lelling’s Public Corruption & Special Prosecutions Unit, are prosecuting the case.
Former bookkeeper pleads guilty to stealing nearly $150,000 from Crowley companyRead the Press Release
ALEXANDNRIA, La. – United States Attorney David C. Joseph announced that Otavia L. Lewis, 38, of Crowley, pleaded guilty Wednesday before U.S. District Judge Dee D. Drell for stealing more than $148,000 from a Crowley company.
According to the guilty plea, Lewis worked as a bookkeeper for a Crowley equipment company from March 2014 to May 2016. She used accounting software to transfer funds from the company’s bank account to accounts and debit cards she and others controlled. She also attempted to hide her actions by covering for the payments using other employees’ names. Lewis stole $148,753.28 during the course of the scheme.
Lewis faces up to 20 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for August 5, 2019.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips is prosecuting the case.
Former U.S. Army Range Operations Manager Pleads Guilty to ConspiracyRead the Press Release
A former U.S. Army civilian employee pleaded guilty today to conspiring to accept bribes and disclose sensitive U.S. Army procurement information while serving as a range operations manager at Hawaii’s Schofield Barracks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Kenji M. Price of the District of Hawaii, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command (Army-CID), Special Agent in Charge Bryan Denny of the U.S. Defense Criminal Investigative Service (DCIS) and Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office made the announcement.
Franklin Raby, 67, of Greeneville, Tennessee, pleaded guilty before U.S. District Judge Ronnie Greer of the Eastern District of Tennessee to a one-count information charging him with conspiracy to commit bribery and disclose sensitive U.S. Army procurement information. Sentencing is scheduled for Aug. 5, 2019.
According to admissions as part of his plea agreement, from March 2015 through May 2018, Raby, while employed as a public official for the U.S. Army, accepted tens of thousands of dollars’ worth of bribes—including an antique automobile—from an employee of a federal contractor that sought and received business from the United States Army. In return, Raby provided the contractor with sensitive, internal U.S. Department of Defense procurement information, and otherwise used his position to benefit the contractor in securing U.S. Army contracts.
Army-CID, DCIS and the FBI investigated this case. Trial Attorney Laura Connelly and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marc Wallenstein of the District of Hawaii are prosecuting the case. The Fraud Section appreciates the substantial assistance of the U.S. Attorney’s Office for the Eastern District of Tennessee.
Former Social Services Worker Pleads Guilty to Lying to the FBIRead 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 Rhonda Henderson, 48, of Buffalo, NY, pleaded guilty to making false statements to Special Agents of the Federal Bureau of Investigation before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that on June 19, 2014, Special Agents with the Federal Bureau of Investigation interviewed the defendant during which interview Henderson stated that the title to a 1999 Honda two-door sedan had been mailed to her address. The vehicle actually belonged to Victim A, a disabled individual whom the defendant met through her employment at a local social services agency. The FBI was investigating mail fraud and whether or not Henderson engaged in a scheme to defraud Victim A of her vehicle by fraudulently obtaining a duplicate New York State Department of Motor Vehicles title.
During the course of the FBI interview, the defendant made materially false statements that:
• she did not take the title to the 1999 Honda Accord from Victim A without Victim A’s authorization; • she had Victim A’s permission to forge Victim A’s name on the DMV form “Transfer of Vehicle Registered in Name of Deceased Person” dated December 13, 2013; and
• her supervisor at the agency knew of her dealings related to the December 13, 2013, vehicle transaction; knowing that each statement was in fact false.The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the New York State Department of Motor Vehicles, Division of Field Investigation, under the direction of Owen McShane, Director of Investigations.
Sentencing is scheduled for September 10, 2019, at 9:30 a.m. before Judge Vilardo.
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Former Service Provider at State Supported Living Center in Texas Pleads Guilty to Civil Rights Offense After Kicking Resident in the FaceRead the Press Release
Tesa Keith, 37, pleaded guilty yesterday to violating the civil rights of a resident at the San Angelo State Supported Living Center in San Angelo, Texas, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the Northern District of Texas Erin Nealy Cox, and Michael Schneider, Acting Special Agent in Charge of the FBI Dallas Division.
“This defendant physically assaulted a resident at the Living Center with no legal justification,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to defend the civil rights of Americans and seek justice for those who have suffered unlawful abuses.”
“Instead of the care and compassion she deserved, this victim suffered abuse and humiliation,” said U.S. Attorney Erin Nealy Cox. “One of the DOJ’s most sacred duties is seeking justice for our district’s most vulnerable. We will not tolerate this sort of terrible behavior.”
“The FBI works closely with our federal, state, and local partners to investigate any type of civil rights violation,” said Michael Schneider, Acting Special Agent in Charge of the FBI Dallas Division. “The victim was unfairly prevented from receiving the care she was entitled to under the law.”
According to the plea agreement, Keith was working on June 13, 2017, as a Direct Service Provider at the San Angelo State Supported Living Center, a state-run facility. K.B. was a resident of the facility. Keith admitted to kicking K.B. in the face without legal justification and for the purpose of punishing her. Keith’s assault on K.B. resulted in bodily injury to K.B.
Keith faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for the civil rights offense. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentence will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The FBI’s San Angelo Field Office conducted the investigation. Assistant U.S. Attorney Juanita Fielden of the Northern District of Texas and Trial Attorneys Rose E. Gibson and Kate Hill of the Department of Justice’s Civil Rights Division are prosecuting the case.
Former Federal Correctional Officer Charged with Civil Rights Offense for Assaulting InmateRead the Press Release
A former senior correctional officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, was indicted yesterday on charges that he used unlawful force on an inmate and then submitted a false incident report, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the Eastern District of Texas Joseph D. Brown, and Department of Justice, Office of the Inspector General, Acting Special Agent in Charge Robert A. Bourbon of the Dallas Field Office.
According to the indictment, Tavoris Bottley, 33, was working at FCC Beaumont on June 8, 2017, when he assaulted an inmate by punching the inmate in the head three times. The defendant then allegedly submitted an incident report that omitted these punches and falsely cited the inmate for attempting to assault staff.
The defendant faces a maximum statutory penalty of 10 years in prison for the civil rights violation, 20 years in prison for the obstruction offense, and a fine of up to $250,000 for each charge.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty.
The Department of Justice, Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas and Trial Attorney Nicholas Reddick of the Justice Department’s Civil Rights Division are prosecuting the case.