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5 April 2019
Criminal Defense Attorney Convicted in Brooklyn Federal Court of Conspiracy and False Statements to the U.S. Bureau of PrisonsRead the Press Release
Scott Brettschneider, an attorney admitted to practice in the state of New York since 1987, was convicted today by a federal jury in Brooklyn of conspiring to make a false statement and making a false statement. Specifically, Brettschneider wrote a false letter to the U.S. Bureau of Prisons (BOP) to assist an inmate in gaining entry to a substance abuse program in order to fraudulently obtain an early release from prison. The verdict followed a five-day trial before United States District Judge Carol Bagley Amon. When sentenced, Brettschneider faces up to five years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“Brettschneider, a longtime attorney, has been found guilty by a jury of brazenly violating the law he was sworn to uphold by scheming to write a phony letter to help his client get into a drug treatment program and become eligible for early release from prison,” stated United States Attorney Donoghue. “This Office is committed to protecting the integrity of federal programs for drug abuse treatment, to ensure that help is available for those truly in need and not those merely looking for a get-out-of-jail card.” Mr. Donoghue thanked the Federal Bureau of Investigation, New York Field Office, and the Queens District Attorney’s Office for their outstanding assistance on the case.
The evidence at trial proved that between October 2014 and January 2015, Brettschneider, Charles Gallman and Reginald Shabazz-Muhammad conspired to make false statements in a letter to a BOP employee regarding inmate Richard Marshall’s treatment for substance and alcohol abuse in an effort to help Marshall fraudulently gain entry to the Residential Drug Abuse Program (RDAP) at United States Penitentiary Lewisburg in Pennsylvania. In an October 24, 2014 call on Gallman’s phone that was intercepted by law enforcement, Marshall explained to Brettschneider that he needed a letter from a “drug program” to which Brettschneider responded, “alright, alright, we’ll work on that Monday. Ok, I know who to talk to.” Brettschneider, Marshall and Shabazz-Muhammad, who claimed to be the director of program services at Muhammad Mosque No. 7, falsely stated that Marshall had previously been enrolled in the Mosque’s treatment program between 2003 and 2010 to reduce his purported “active drug dependence.” An inmate who is accepted into the RDAP and successfully completes the treatment program is eligible to receive up to a year off his sentence.
Marshall pleaded guilty to conspiracy to make false statements, and was sentenced on October 6, 2018 to three years’ probation and a fine of $1,500. Shabazz-Muhammad pleaded guilty to making false statements, and was sentenced on January 30, 2019 to two years’ probation and a fine of $1,000. Gallman pleaded guilty to conspiracy to make false statements and to violating the Travel Act for bribing a witness, and was sentenced on March 20, 2019 to three years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Andrey Spektor, Lindsay K. Gerdes and Margaret Gandy are in charge of the prosecution.
The Defendant: SCOTT BRETTSCHNEIDER (also known as “Mighty Whitey”)
Age: 62
Mint Hill, North Carolina
Defendants Who Previously Pleaded Guilty and Were Sentenced: CHARLES GALLMAN (also known as “T.A.”)
Age: 57
Queens, New York
RICHARD MARSHALL (also known as “Love”)
Age: 57
Charlotte, North Carolina
REGINALD SHABAZZ-MUHAMMAD
Age: 63
Queens, New York
E.D.N.Y. Docket No. 18-CR-123 (CBA)Crime Victims’ Rights Week will feature BBQ on Yellowstone County Courthouse LawnRead the Press Release
BILLINGS—To celebrate National Crime Victim’s Rights Week from April 7 to 13, there will be a free barbecue lunch and entertainment at the Yellowstone County Courthouse Lawn on April 12, U.S. Attorney’s Office announced. The event will run from 11 a.m. to 1:30 p.m.
Speakers at the event will include U.S. Attorney Kurt Alme, Yellowstone County Attorney Scott Twito, Yellowstone County Sheriff Mike Linder, Billings Police Chief Rich St. John, Billings City Attorney Brent Brooks and Big Horn County Commissioner Sidney Fitzpatrick.
Crime Victims’ Rights Week challenges the nation to confront and remove barriers to full justice for all victims of crime. Each April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by honoring victims of crime and those who advocate on their behalf. The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights week each year.
The BBQ event will recognize men and women who have gone above and beyond to help the community. The theme for this year’s celebration is, “Honoring our Past. Creating Hope for the Future.” For more information, visit https://ovc.ncjrs.gov/ncvrw2019/overview.html.
The Crime Victim’s Rights Week barbecue is being sponsored by the Big Horn County Sheriff’s Office Victim Specialist, the Yellowstone County Attorney’s Office Victim/Witness Program, the Billings City Attorney’s Office Victim Specialists, FBI Victim Specialists, the U.S. Attorney’s Office Victim Specialist and the YWCA of Billings.
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Container-ship stowaway charged with illegal re-entry to the United StatesRead the Press Release
Savannah, Ga – An El Salvador man previously deported after being caught illegally entering the United States is charged with attempting to re-enter by stowing away on a container ship.
Jaime Dagoberto Chavez-Guevara, 35, was taken into custody Wednesday, April 3, aboard the container ship Santa Linea in the Port of Savannah by agents from U.S. Customs and Border Protection (CBP) and charged with illegal entry of the United States after prior deportation and stowing away on a vessel, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The charges carry a possible combined penalty of up to 15 years in federal prison.
According to court proceedings and documents in the case, CBP had been notified Tuesday, April 2, by ZIM Shipping Lines, operator of the Santa Linea, that crew members had detained Chavez-Guevara after discovering him on board the ship without permission. After CBP took Chavez-Guevara into custody, the subsequent investigation determined that he had been deported in May 2017 from San Antonio, Texas, and again in January 2018 from Phoenix, Az, after he was convicted of felony illegal entry after prior removal.
Chavez-Guevara told investigators that his girlfriend in Miami, Fla., had sent $6,000 to his family in El Salvador, and he used the money to arrange for a smuggler to get him on board the Santa Linea while the ship was anchored in Panama. Along with one of the smugglers who took him to the ship via a small boat, Chavez-Guevara climbed the anchor chain to board the vessel through the anchor hatch. The smuggler then showed Chavez-Guevara where he could hide on the ship until it docked in the United States. Santa Linea crew members discovered Chavez-Guevara during the trip to the Port of Savannah.
“Our office will ensure that those who repeatedly enter the United States illegally will be caught and prosecuted,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “There is zero tolerance for those who break the law to get here, and they don’t get extra points for persistence or creativity.”
“Identifying and stopping criminal networks that engage in cross-border human smuggling as well as individuals who seek to illegally enter the U.S. is a priority focus for Homeland Security Investigations,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “These criminal organizations have no regard for the well-being of the people they attempt to smuggle, who are often put at great risk during an attempt to illegally enter the U.S., and HSI will continue to work collaboratively with our federal, state and local partners to investigate and prosecute such activity.”
Charges are only allegations, and the defendant is presumed innocent unless and until he is proven guilty.
This case is beings investigated by Homeland Security Investigations (HSI), and prosecuted by Assistant U.S. Attorneys Alejandro V. Pascual IV and Joe McCool on behalf of the United States.
Cape Cod Resident Sentenced for Trafficking MethRead the Press Release
PROVIDENCE – A Provincetown, Mass., man found passed out in his vehicle by Warwick police and to be in possession of more than 230 grams of methamphetamine in August 2017 was sentenced today to three years supervised release and fined $20,000, having pleaded guilty in U.S District Court in Providence in November 2018 to possession with intent to distribute 50 grams or more of methamphetamine.
Gregory Lee, 50, was arrested by Warwick Police on August 4, 2017, after officers responded to a 911 call of a person passed out inside a vehicle. After several attempts, officers were able to roust Lee who nervously began looking around his vehicle, under his body and legs, and grabbing at various items within the vehicle. Lee was ordered by police to exit the vehicle.
After exiting the vehicle, Lee, who was observed by police to be sweating profusely, fidgety, shaking uncontrollably, and unable to stand still, allow officers to search the vehicle. From inside a backpack located on the front seat, officers seized two large plastic bags of methamphetamine. The bags of weighed 115.9 grams and 115.6 grams.
Lee’s sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by United States Attorney Aaron L. Weisman, Warwick Police Chief Colonel Rick Rathbun, and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
The case was prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Ly T. Chin.
United States Attorney Aaron L. Weisman acknowledges and thanks the DEA Drug Task Force for their assistance preparing this case for prosecution.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from the DEA, Rhode Island State Police, and East Providence, Central Falls, Coventry, Cranston, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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California Man Sentenced to 32 Years in Prison for Overseeing Cross-Country Drug Trafficking Organization and the Kidnapping and Murder of One of Its MembersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JOSE RAMON ONTIVEROS, a dual citizen of the United States and Mexico, was sentenced to 32 years in prison by United States District Judge Gregory H. Woods for running a drug trafficking organization that shipped hundreds of kilograms of cocaine across the United States, and arranged for the kidnapping, torture, and murder of Oscar Contreras, a member of the organization, in August 2012.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “For years, Jose Ramon Ontiveros ran a drug trafficking organization that flooded New York City with large amounts of cocaine. When the organization’s operations were threatened by the apparent theft of drug proceeds by one of its workers, Ontiveros and others responded with brutal violence that resulted in the torture and death of Oscar Contreras. Today’s sentence sends a message that we will aggressively prosecute those who engage in drug trafficking and violence, and we hope the sentence brings a small measure of comfort to Mr. Contreras’s family.”
According to documents filed in this case and statements made in related court proceedings:
From in or about 2008 through in or about February 2013, ONTIVEROS, 57, oversaw a drug trafficking organization (the “DTO”) based out of California that shipped large amounts of cocaine to New York City and other parts of the East Coast. The DTO was supplied by the Sinaloa Cartel in Mexico, and transported the cocaine from California to the East Coast using hidden compartments in tractor trailers. ONTIVEROS not only oversaw the DTO’s operations in the United States, but also served as the go-between between members of the Sinaloa Cartel in Mexico and the DTO. Between 2008 and 2013, the DTO shipped over 450 kilograms of cocaine to the East Coast, and brought back millions of dollars in drug proceeds.
In or about August 2012, the DTO suspected that one of its drivers, Oscar Contreras, had stolen approximately $1 million in drug proceeds from the DTO. ONTIVEROS and other members of the DTO arranged for Contreras to be kidnapped and tortured by a local street gang (the “Street Gang”) in Ontario, California, in order to locate the missing money. Contreras was brutally tortured for several days before being killed by members of the Street Gang.
ONTIVEROS previously pled guilty on September 5, 2018, to conspiracy to distribute and possess with intent to distribute five kilograms and more of cocaine. As part of his guilty plea, ONTIVEROS admitted that he and other members of the DTO agreed to kidnap and torture Contreras, and that in the course of being tortured, Contreras was murdered.
Mr. Berman praised the outstanding investigative work of the Drug Enforcement Administration. He also thanked the San Bernardino County District Attorney’s Office and the Ontario Police Department for their participation and support in this investigation and prosecution.
This prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jason M. Swergold, Benet Kearney, and Michael Longyear are in charge of the prosecution.
CANCELLED DUE TO INCLEMENT WEATHER-- U.S. Attorney Trent Shores and Tulsa County District Attorney Steve Kunzweiler to Host “A Community Day of HopeRead the Press Release
a_community_day_of_hope_flyer.pdf
a_community_day_of_hope_featured_speakers_and_description.pdfTULSA, Okla. – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the Northern District of Oklahoma and the Office of the Tulsa County District Attorney are hosting “A Community Day of Hope”, April 13, from 9 a.m. to 1 p.m. This free community event will be held at OSU Tulsa- 700 Greenwood Avenue, Tulsa, Oklahoma.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“The ‘Community Day of Hope’ is an opportunity to educate our community about crime victim resources. I have always found this event to be inspiring, as crime victims come forward to tell their stories of strength and resiliency. Their courage to publicly share their stories empowers others to come forward,” said U.S. Attorney Shores. “Victims and their families cannot go through these life changing tragedies alone. I am committed to ensuring victims are given a voice in the courtroom and have access to the resources they need to obtain help and healing.”
Speakers at this year’s event in the Northern District of Oklahoma are U.S. Attorney Trent Shores, Oklahoma Attorney General Mike Hunter, Tulsa County District Attorney Steve Kunzweiler, Tulsa County Sheriff Vic Regalado and Tulsa Police Chief Chuck Jordan. The event will held in conjunction with the Tulsa Health Departments’ one mile ENDUI Walk in remembrance of loved ones lost to DUI-related crashes, which starts at 10 a.m. The Oklahoma Blood Institute will also have a mobile unit available on site to collect blood donations which will be used to help fellow Oklahomans.
Community members attending the event will also hear from crime victims and their families; Melissa Blanton, Chief, Victim Services Unit, Oklahoma Attorney General’s Office; One Fire Cherokee Nation Victim Services Director Nikki Baker-Limor; and Muscogee (Creek) Nation Family Violence Prevention Program Director Shawn Partridge.
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Victim Witness Program at (918) 382-2700.
Buffalo Man Convicted Following Jury Trail Sentenced on Drug and Gun ChargesRead 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 Isiah Pierce, 35, of Buffalo, NY, who was convicted following a federal jury trial of possession with intent to distribute crack cocaine, possession with intent to distribute cocaine, fentanyl, and butryl fentanyl, maintaining a drug involved premises, possession of firearms in furtherance of drug trafficking activities, and being a felon in possession of firearms and explosives, was sentenced to serve 168 months by U.S. District Judge Lawrence J. Vilardo, Jr.
Assistant U.S. Attorneys Laura A. Higgins and Paul E. Bonanno, who handled the case, stated that between November 2016 and December 1, 2016, Pierce and co-defendant Larry Willis utilized two apartments inside 70 Henrietta Avenue in Buffalo to manufacture, package, and store quantities of crack cocaine, heroin, cocaine, fentanyl, and butyryl fentanyl, along with the proceeds for sale of such controlled substances. To protect their product and their proceeds, the defendants maintained multiple firearms and ammunition within each of the apartments.
During the execution of a search warrant in the lower apartment at 70 Henrietta Avenue, officers recovered crack cocaine, three firearms and ammunition, a digital scale with drug residue, packaging material, whisks, spoons, and cutting agents. A subsequent search of the upper apartment uncovered additional amounts of crack cocaine, a mixture of heroin and butyryl fentanyl, three handguns and numerous rounds of ammunition.
Defendant Willis was also convicted at trial and was sentenced to serve 210 months in prison.
The sentencing is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard, and the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
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Buffalo Couple Arrested, Charged with Selling FentanylRead 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 Billy D. Henderson, 39, and Denise Porter, 31, both of Buffalo, NY, were arrested and charged by criminal complaint with: possession with intent to distribute controlled substances; distribution of controlled substances; maintaining a drug involved premises; and manufacturing controlled substances creating a substantial risk of harm to human life. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Timothy C. Lynch and Laura A. Higgins, who are handling the case, stated that according to the complaint, on April 3, 2019, members of the Erie County Sheriff’s Office Narcotics Squad and the Buffalo Police Department Narcotics and Intelligence Squads executed a state search warrant at 50 Newton Street in Buffalo. Officers seized a large quantity of suspected fentanyl; a digital scale with narcotics residue; a drug press; approximately $7,000 in United States currency; ammunition; packaging material for narcotics distribution; and a heat sealer.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and are being held pending a detention hearing in April 8, 2019, at 10:00 a.m.
The complaint is the culmination of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Boone County Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CHARLESTON, W.Va. – A Boone County man pled guilty today to drug and gun charges, announced United States Attorney Mike Stuart. Bruce Lee Boardman pled guilty to possessing methamphetamine with intent to distribute and carrying a firearm during a drug trafficking crime. Stuart commended the investigation conducted by the Nitro Police Department, Boone County Sheriff’s Office, the U.S. 119 Drug and Violent Crime Task Force, and the West Virginia State Police.
“Another gun toting meth dealer,” said United States Attorney Mike Stuart. “And another federal conviction. We are working hand-in-hand with our law enforcement partners to remove violent drug dealers like Boardman from our communities.”
As established by public court filings and hearings, on June 30, 2017, Nitro police stopped Boardman for driving his truck erratically. Boardman appeared extremely nervous and admitted to driving with a revoked license due to a prior DUI. Officers smelled marijuana coming from the truck, so they searched it and found three bags of methamphetamine weighing approximately 50 grams, a small amount of marijuana, and a digital scale. Officers also found two loaded pistols under the driver’s and passenger’s seats.
On December 12, 2017, police investigators used a confidential informant to purchase methamphetamine from Shaine Ray Dingess at a house in Nellis, West Virginia. The informant’s hidden camera captured Boardman inside the home supplying Dingess with methamphetamine. During the drug transaction, Boardman was holding a pistol in his hand.
Boardman is facing a mandatory minimum sentence of five years and up to life imprisonment when he is sentenced on June 26, 2019. Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Drew O. Inman is handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Bolingbrook Man Sentenced to 19 Years in Federal Prison for Engaging in Sexual Conduct with Underage BoysRead the Press Release
CHICAGO — A federal judge has sentenced a Bolingbrook man to 19 years in prison for engaging in sex acts with an underage boy and enticing him to produce sexually explicit images of himself.
RONALD GOBENCIONG, 46, posed on social media as three separate individuals – an escort, an escort’s manager, and a client – to entice the 17-year-old boy to produce pornographic images of himself. In February 2017, Gobenciong engaged in sex acts with the boy at a suburban hotel, after which he gave the boy money. Gobenciong later threatened to distribute the pornographic images to the boy’s father unless the boy continued to have sex with him. Gobenciong admitted in a plea agreement that he engaged in similar conduct with two other underage boys during the same approximate time period.
Gobenciong, also known as “David Marco,” “Steve John,” and “Joe,” pleaded guilty last year to one count of production of child pornography, and one count of sex trafficking of a minor. U.S. District Judge Manish S. Shah imposed the 19-year sentence on Thursday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Thomas J. Dart, Cook County Sheriff. Valuable assistance was provided by the Bolingbrook Police Department.
As part of online and text communications with the boys, Gobenciong requested and received pornographic photos and videos of them. Gobenciong knew the victims were under 18 years old at the time.
“Defendant cynically played on the fears and insecurities of children, as well as their desire for friendship,” Assistant U.S. Attorney Eric S. Pruitt argued in the government’s sentencing memorandum. “The depravity and cruelty of this conduct cannot be overstated.”
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Armed Drug Dealer Sentenced for Drug Trafficking and Possessing FirearmsRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced today to more than five years in prison for conspiracy to distribute and possess with intent to distribute methamphetamine and possession of firearms by an unlawful user of a controlled substance.
“Youngblood was an armed drug dealer who profited off of the misery of others,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Additionally, this case represents the serious danger that armed drug dealers and armed drug users pose to first responders. In this case, officers found Youngblood unconscious in his bedroom, overdosed on a mixture of cocaine and fentanyl and surrounded by four loaded handguns, $5,000 in cash, ammunition, and other drugs. This situation clearly endangered the safety of those responsible for saving his life. My sincere thanks to the Chesapeake Police, medical first responders and our federal law enforcement partners for their terrific work on this case.”
According to court documents, between December 2016 and November 2017, Marc Louie Youngblood, Jr., 51, received approximately 16 United States Mail parcels containing methamphetamine from California to an auto parts store where he worked in Norfolk. Youngblood sold this methamphetamine in Chesapeake and was also a habitual user of methamphetamine and marijuana during this time.
"Drugs like heroin and methamphetamine destroy lives and communities, and Youngblood not only participated in the furtherance of this destruction, but as a user, nearly lost his own life to these substances,” said Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Norfolk. “Let Youngblood’s case serve as a lesson to others that HSI and its law enforcement partners will continue to crack down on narcotics trafficking in the local area to protect the lives of others."
In November 2017, Chesapeake Police responded to an overdose call at a residence in Chesapeake and found Youngblood unconscious on his bedroom floor. The police observed marijuana, drug paraphernalia and firearms in plain view in Youngblood’s bedroom. After Youngblood was transported to the hospital, CPD obtained a search warrant for his room. The search yielded four loaded handguns, $5,000 in cash, ammunition, 40 grams of marijuana, 23 grams of “ice” (methamphetamine) and several memory card storage discs containing multiple videos depicting Youngblood smoking methamphetamine and using heroin. It was later determined that Youngblood overdosed after injecting a mixture of cocaine and fentanyl, commonly referred to as a “speedball.”
“Postal Inspectors work aggressively to eliminate illegal narcotics from the U.S. Mail. Our strong dedication to these efforts helps us to protect both our employees and the public from this criminal activity,” said Peter R. Rendina, Inspector in Charge, U.S. Postal Inspection Service –Washington Division. “In addition, we maintain excellent relationships with our local, state and federal law enforcement partners and from this, we end up with successful resolutions like we did in this investigation.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, Col. K.L. Wright, Chief of Chesapeake Police, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Darryl Mitchell 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. 2:18-cr-139-1.
Armed Cocaine Dealer Sentenced to 5 Years in PrisonRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to five years in prison for possession with intent to distribute cocaine and being a felon in possession of a firearm.
“Armed drug traffickers pose serious threats to the safety of law abiding people,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Dowd carried a firearm and dealt drugs from his home in Creighton Court, an area of Richmond long plagued by drug trafficking and one that has the full attention of this office and our law enforcement partners. We are 100 percent committed to doing our part so that all can live in as crime free a neighborhood as possible, and will continue to devote law enforcement resources to similar areas of need around the City of Richmond and across the Eastern District of Virginia.”
According to court documents, Cleveland Dowd, 37, was under surveillance by the Richmond Police Department in the Creighton Court area as part of a narcotics investigation. These observations prompted law enforcement to conduct controlled purchases of crack cocaine from Dowd in his home on April 13 and April 26, 2018. Following those controlled purchases, officers executed a search warrant and found more than 100 grams of powdered cocaine, multiple ounces of marijuana, $40,000 in cash, and a 9mm firearm. Dowd admitted to all of the drugs, cash, and gun, and admitted that he intended to “cook” the powdered cocaine into crack cocaine prior to selling it. Dowd had been previously convicted of possession with intent to distribute marijuana, a felony, and was prohibited from possessing a firearm.
“Dowd’s conviction and lengthy prison time should send a strong message to the violent criminals operating in this district and elsewhere in Virginia,” said Ashan Benedict, Special Agent in Charge of the ATF Washington Field Division. “We will do everything in our power to bring to justice these perpetrators and restore some quality of life to the citizens of the neighborhoods where they operate.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-106.
Appling man indicted for possession of child pornographyRead the Press Release
AUGUSTA, GA: An Appling man has been indicted on federal charges of possession of child pornography.
Ricardo Dale Alva, 64, was indicted on one count of Possession of Child Pornography by a federal grand jury, said Bobby L. Christine, United States Attorney for the Southern District of Georgia.
Possession of Child Pornography is punishable by up to 20 years in prison and a fine of up to $250,000, followed by no less than five years of supervised release. There is no parole in the federal system.
Alva was arrested March 7 after Richmond County Sheriff’s Office deputies were alerted by an online tip that led to a search of Alva’s Appling home by the FBI. The search discovered images of minors engaged in sexually explicit conduct.
“It’s purely a coincidence that this indictment comes during Child Abuse Awareness Month,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “But this month, and every month, our prosecutors will work with law enforcement agencies to track down the sources and purveyors of material that exploits the most vulnerable members of our society.”
“Individuals who possess pornographic images of children for their own self-gratification support the exploitation of the most innocent victims,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We work every day to protect our children and will continue to use every law enforcement resource available to identify individuals who exploit them in such a manner.”
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and prosecuted by Assistant United States Attorney Tara Lyons.
Additional Federal Charges Added Against Denver Doctor Justin Neisler for Production of Child PornographyRead the Press Release
DENVER – A federal grand jury in Denver has returned an eight-count indictment charging Dr. Justin Neisler with production of child pornography, transportation of child pornography, and possession of child pornography, announced U.S. Attorney Jason Dunn and FBI Denver Division Special Agent in Charge Dean Phillips. Dr. Neisler is being held without bond. Dr. Neisler was charged previously by criminal complaint on March 13, 2019, with the transportation of child pornography. He was ordered detained by the federal district court in Denver on March 26, 2019. On April 4, 2019, the grand jury returned an indictment, which was unsealed today, and contains additional charges against Dr. Neisler.
Dr. Neisler has been affiliated with the Centura Health and HealthONE networks licensed to practice medicine in Colorado and Georgia since 2016.
The investigation into Dr. Neisler’s alleged illegal conduct is ongoing. Anyone having information relevant to this investigation is encouraged to contact the FBI by sending an email to [email protected] or by calling 303-629-7171 x 1.
The charges are allegations, and the defendant is presumed innocent unless and until proven guilty.
This matter is part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC coordinates federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
4 April 2019
“Let States Jam Prison Cellphones,” says U.S. Attorney Sherri LydonRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon authored today an opinion piece in The Wall Street Journal highlighting the public safety threat posed by contraband cellphones in prisons entitled, “Let States Jam Prison Cellphones.” U.S. Attorney Lydon also announced a series of cases the U.S. Attorney’s Office has prosecuted in federal court to help stop the flow of contraband cellphones into state prisons and punish those who use them to harm the public.
“We do not put criminals behind bars only to have them continue their criminal enterprises from inside prison,” said U.S. Attorney Lydon. “We will continue to use every tool available to us to stop this threat to public safety. But until our state and local partners are permitted to jam cellphone signals in prisons, inmates with time on their hands and unrestricted access to the Internet will continue to run drug rings, scam innocent Americans, and perpetrate crimes that help them grow their wealth while incarcerated.”
South Carolina Department of Corrections (SCDC) Director Bryan Stirling stated, “Because of contraband cellphones, criminals are physically incarcerated, however, they are virtually out there amongst us, continuing their criminal ways from behind our nation’s prison walls.”
Among the cases the U.S. Attorney’s Office has prosecuted with the assistance of SCDC and the South Carolina Law Enforcement Division (SLED) are:
SCDC Prisoner and Co-Conspirator Sentenced to Federal Prison for Roles in Dark Web Mail Bomb Plot
In April 2018, a federal jury convicted Michael Young, Jr., and Vance Volious, Jr., both of Columbia, of dealing drugs and plotting to kill Young’s ex-wife with a mail bomb they bought with bitcoin from the Dark Web. While incarcerated in SCDC, Young obtained a contraband cellphone, which he used to run a drug business distributing marijuana he obtained from a California supplier and from the Dark Web. Drugs purchased by Young were shipped to a conspirator’s residence before being picked up by Volious for re-distribution.
While this drug conspiracy among Young, Volious, and others was operating, the conspirators also plotted to kill Young’s ex-wife. This was not the first time that Young had tried to kill her; he was serving a 50-year sentence after having been convicted of attempting to kill her and of murdering her father in 2007.
In February 2017, Young accessed the Dark Web from prison on his contraband cellphone and started a dialogue with an undercover FBI agent, whom he believed to be a foreign explosives dealer. Young paid for a mail bomb to be sent to a conspirator’s residence in Irmo and for the re-shipment label addressed to his ex-wife to be sent to Volious’ house in Columbia.
Fears obtained the labels from Volious, armed the mail bomb, and was surveilled by the FBI delivering the inert explosives package to the Post Office in Irmo on June 6, 2017. After a United States Postal Inspector recovered the mail bomb, Young, Volious, and co-defendant Tyrell Fears, of Irmo, were arrested on federal charges.
Young and Volious were convicted of conspiracy, transport of an explosive with the intent to kill, mailing a non-mailable explosive with the intent to kill, and carrying an explosive during the commission of another felony. Fears pleaded guilty to carrying an explosive during the commission of a felony and conspiracy. In February 2019, Young was sentenced to 525 months in federal prison, and Fears was sentenced to 120 months in federal prison. In March 2019, Volious was sentenced to 255 months in federal prison.
The case was investigated by the Federal Bureau of Investigation, Joint Terrorism Task Force, United States Postal Inspection Service, South Carolina Department of Corrections’ Division of Police Services, State Law Enforcement Division, South Carolina Information and Intelligence Center, Richland County Sheriff’s Department, Lexington Country Sheriff’s Department, Irmo Police Department, USC Division of Law Enforcement and Safety, and Columbia Police Department. The case was prosecuted by Assistant United States Attorney Will Lewis of the Columbia office and former Assistant United States Attorney Jay Richardson, with assistance from Dan Goldberg of the Fifth Circuit Solicitor’s Office.
For more information, visit https://www.justice.gov/usao-sc/pr/scdc-prisoner-and-co-conspirator-sentenced-federal-prison-roles-dark-web-mail-bomb-plot.
U.S. Attorney’s Office Initiates Forfeiture Proceedings Seizing $400,000 From Prison Accounts of 15 Inmates
The U.S. Attorney’s Office recently initiated civil forfeiture proceedings in which the federal government has seized over $400,000 from the prison accounts of just 15 inmates. According to the seizure warrants, this money was derived from unlawful activity including extortion and the distribution of narcotics and other contraband.
Five Inmates Among Fifteen Defendants Indicted for Wire Fraud, Extortion, and Money Laundering Scheme at SCDC
In November 2018, the U.S. Attorney’s Office indicted 15 defendants—five of whom are inmates in SCDC—for their roles in a wire fraud, extortion, and money laundering scheme. According to the indictments, the inmates used contraband cellphones to orchestrate a scheme to defraud members of the United States Military. The inmates, using smartphones, joined Internet dating websites and posed as young women seeking a romantic relationship with young men in the military. They downloaded nude pictures, pretended to be the women in the pictures, and sent them to the servicemen. They then asked the service members to text nude pictures and other personal information in return.
After exchanging nude pictures and other personal information, the inmates called the service members and claimed to be the young woman’s father. The inmates told the service members that the “daughter” was a minor and threatened to notify law enforcement that the service member was exchanging nude pictures with a minor unless the service member paid money. The inmates used various means to extort the service members, often claiming that the money was needed to replace the computer or to pay medical bills for the trauma that the “underage daughter” suffered from the sexually explicit text messages. On occasion, the inmates impersonated law enforcement or lawyers to further the scheme.
The inmates then directed the service members to wire money to individuals in South Carolina. To assist in the scheme, the inmates recruited others outside of the prisons to retrieve the money that was wired by the service members and transfer the money to the inmates, often keeping some of the proceeds. In some instances, these individuals provided the inmates with debit card numbers so they could access the criminal proceeds in prison via contraband cellphones. Other times, the individuals wired the money directly into the inmates’ prison accounts.
In total, the “sextortion” schemes resulted in 442 service members paying a total of more than $560,000. The service members involved were from the Army, Navy, Air Force, and Marine Corps. The five inmates who have been indicted federally on wire fraud, money laundering, and extortion charges are Wendell Wilkins, Jimmy Dunbar, Antwine Lamar Matthews, Rakeem Spivey, and David Paul Dempsey.
This case was investigated by the Naval Criminal Investigative Services, Internal Revenue Service – Criminal Investigations, Department of Defense Criminal Investigative Services, Air Force Office of Special Investigations, U.S. Army Criminal Investigations Command, United States Marshals Service, South Carolina Department of Corrections, and South Carolina Law Enforcement Division. Assistant United States Attorneys Emily Limehouse and Rhett DeHart of the Charleston office are prosecuting the case.
For more information, visit https://www.justice.gov/usao-sc/pr/5-inmates-among-15-defendants-indicted-wire-fraud-extortion-and-money-laundering-scheme.
Former SCDC Employees and Corrections Officers Indicted for Accepting Bribes and Smuggling Contraband
In 2016, the Federal Bureau of Investigation (FBI) began a partnership with SCDC and SLED to investigate the smuggling of contraband into prisons by SCDC staff. The investigation uncovered a number of SCDC employees who accepted bribes to smuggle into prison various contraband, such as cellphones, narcotics, and tobacco.
Since April 2018, the U.S. Attorney’s Office has indicted 19 former SCDC employees—including corrections officers, a nurse, and food service employees—on federal charges related to accepting bribes and bringing contraband into South Carolina prisons. The federal violations alleged include Use of Interstate Facilities to Facilitate Bribery; Conspiracy to Commit Wire Fraud Depriving South Carolina of the Right to Honest Services; and Possession with Intent to Distribute Narcotics. To date, Douglas Hawkins, Joshua Cave, Shatara Wilson, and Shakeel Malik Monroe have pleaded guilty to Conspiracy to Commit Honest Services Wire Fraud.
This operation was a combined law enforcement effort by the FBI, SLED, SCDC, and the U.S. Attorney’s Office. Assistant United States Attorney Will Lewis of the Columbia office is prosecuting the cases.
For more information, visit https://www.justice.gov/usao-sc/pr/federal-indictments-unsealed-14-former-scdc-employees-and-correction-officers-arrested.
Five Inmates Convicted in Drug Trafficking Ring that Operated from Inside South Carolina Prisons
In September 2016, a federal grand jury charged 15 defendants—5 of whom are current SCDC inmates—with conspiracy to possess with intent to distribute and distribution of 50 grams or more of methamphetamine and related offenses. The defendants used telephones, primarily contraband cellphones, and the U.S. Mail to facilitate the drug offenses charged, and they conspired to launder drug money by conducting money transfers, cash withdrawals, and purchases of and deposits onto pre-paid cash cards.
The five SCDC inmates—Sok Bun, Paul Ray Davis, Jhon Marlon Acosta, James Robert Peterson, and Samuel Travis Wiggins—capitalized on their nearly unfettered access to contraband cellphones to not only continue their criminal activities, but to direct the criminal activities of nine “facilitators” outside of prison, all of whom were willing to accept drug packages for distribution and collect payment on behalf of the inmates. The inmates routinely brokered and managed the delivery and distribution of methamphetamine from California to the upstate of South Carolina and elsewhere in the state. The contraband cellphones were often equipped with touch screens and Internet access, which enabled prisoners to coordinate drug transactions, confirm shipment and delivery, and transfer drug trafficking proceeds.
All but two of the inmate defendants pleaded guilty. In September 2017, after a week-long trial, a federal jury convicted Bun and Peterson on all counts. During the trial, the jury heard numerous recorded calls made by Bun, Peterson, and other inmates from inside South Carolina prisons. In nearly all of the recorded phone calls between inmate defendants, at least one inmate was using a contraband cellphone. The jury also heard directly from inmate witnesses about how accessible cellphones were to inmates and the various means by which phones were smuggled into the facilities.
Bun was sentenced to 360 months in federal prison, which will follow the life sentence he is currently serving in SCDC for a 2006 Spartanburg County murder conviction. Peterson was sentenced to 330 months in federal prison, which will follow the 35-year sentence he is currently serving for murder and assault and battery with intent to kill, both 2005 Cherokee County convictions. Jhon Marlon Acosta was sentenced to 188 months in federal prison. Samuel Travis Wiggins was sentenced to 300 months in federal prison. Inmate Paul Davis awaits sentencing.
The convictions were the result of a multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the FBI with the assistance and cooperation of the United States Postal Service, Internal Revenue Service-Criminal Investigations, SLED, SCDC, Spartanburg County Sheriff’s Office, Spartanburg City Police Department, Cherokee County Sheriff’s Office, Oconee County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Greenville County Sheriff’s Office, ICE - Homeland Security Investigations, Drug Enforcement Administration, and the United States Marshals Service. Assistant United States Attorney Leesa Washington and former Assistant United States Attorney Jeanne Howard, both of the Greenville office, prosecuted the case.
For more information, visit https://www.justice.gov/usao-sc/pr/fifteen-charged-drug-trafficking-ring-operated-inside-south-carolina-prisons; https://www.justice.gov/usao-sc/pr/jury-convicts-spartanburg-brothers-federal-court-drug-and-money-laundering-charges.
Woodstock Man Admits Posing as Deceased Sister to Steal VA BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN DEPPERT, 64, of Woodstock, pleaded guilty today in Hartford federal court to one count of theft of government property related to a scheme to steal benefits from the U.S. Department of Veterans Affairs (the “VA”).
According to court documents and statements made in court, Deppert’s sister received disability compensation benefits from the VA through a direct deposit to her bank account. After Deppert’s sister died in January 2015, Deppert had access to her sister’s bank account, which continued to receive regular deposits of VA benefits.
In September 2017, the VA identified that Deppert’s sister had died and terminated the benefits payments. In October 2017, Deppert called the VA and, posing as his sister, explained that “she” was not deceased. As a result, the VA reinitiated the benefits payments to the bank account, and also issued a back payment of benefits.
In April 2018, after the VA again identified that Deppert’s sister had died, a VA employee contacted the telephone number it had for Deppert’s sister. Deppert, again posing as his sister, answered the call, provided his sister’s date of birth and social security number, and stated that “she” was alive.
In May 2018, Deppert, posing as his sister, left a message on a VA employee’s voicemail system requesting that all future contact be by fax or email. He subsequently sent a fax with a change of address form attached to the VA. The coversheet for the fax stated: “I am alive and living in Woodstock Valley, CT!” Deppert signed his sister’s name on the coversheet.
Through this scheme, Deppert stole $77,292.
Deppert is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 24, 2019, at which time Deppert faces a maximum term of imprisonment of 10 years.
Deppert is released on a $50,000 bond pending sentencing.
This matter is being investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Waunakee Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Patrick O’Connor, 61, Waunakee, Wisconsin, pleaded guilty today to wire fraud and money laundering. The wire fraud and money laundering charges stem from O’Connor’s involvement in a large-scale investment fraud scheme involving a financial loss to multiple victims in excess of $9,000,000.
Beginning in 2011 and continuing until 2018, O’Connor solicited funds from several investors for investment in an entity he created entitled “Madison Financial Services.” As part of his solicitations, O’Connor made various material misrepresentations to investors regarding Madison Financial Services.
O’Connor represented that Madison Financial Services would invest all of the investors’ funds into a TradeStation online brokerage account. O’Connor represented that he would use the TradeStation account to actively trade purchased securities and he projected an average annual return on the investment of 2% a month, or 24% annually.
In fact, O’Connor used a large portion of the investors’ funds for his own personal expenses, including expenses related to his real estate development business and to repay other investors. Of the funds that O’Connor actually deposited into his TradeStation accounts and actively traded, he either lost or withdrew the vast majority of the funds and rarely generated any profit.
To further perpetuate the fraud, O’Connor provided investors with purported account statements from their investments with Madison Financial Services. The account statements were fictitious and showed the investors’ supposed year-to-date profits and their supposed current portfolio balance.
U.S. District Judge William Conley scheduled sentencing for July 30, 2019 at 1:00 p.m. O’Connor faces a maximum penalty of 20 years in federal prison on the wire fraud charge and a maximum penalty of 20 years on the money laundering charge. The charges against him are the result of an investigation by IRS Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Aaron Wegner.
Vicksburg Man Sentenced to over Three Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Christopher Devone Jones, 25, of Vicksburg, was sentenced today by U.S. District Judge Henry T. Wingate to 44 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Jones was also ordered to pay a $1,500 fine.
On April 8, 2018, officers with the Vicksburg Police Department searched Jones’ bedroom as part of an investigation into a drive-by shooting. Jones confessed to being in possession of two pistols after the firearms were found under a dresser drawer in his bedroom. Jones has a prior conviction in Warren County for accessory after the fact to second degree murder in 2014.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Assistant United States Attorney Charles W. Kirkham.
United States Attorney’s Office Supports Advocacy Day for Access and IndependenceRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that, in its continued efforts to support the commitments in the Americans with Disabilities Act (ADA), the U.S. Attorney’s Office participated in Advocacy Day for Access and Independence 2019.
This annual event was led by Able SC, which is a Center for Independent Living organization, whose mission includes empowering people with disabilities to live active and self-determined lives. There were several speakers on the State House grounds for today’s event including members of the SC General Assembly, various South Carolina departments, disability advocates, non-profit entities, and members of the disability community. Support groups from around the state participated and hundreds of people attended the event.
First Assistant United States Attorney Lance Crick provided remarks on behalf of the U.S. Attorney’s Office. In South Carolina, the U.S. Attorney’s Office and Department of Justice have conducted several reviews of local and state governmental ADA compliance since 1994, resulting in several agreements with all levels of local government. Crick said that these ADA reviews in South Carolina have generally been positive and most governmental entities have responded cooperatively. He further noted that the majority of officials are aware of their ADA obligations and have made progress in meeting them.
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United States Attorney Mike Stuart and Law Enforcement Officials Including the FBI and the West Virginia State Police Announce Results of Efforts to Fight Child ExploitationRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart, joined by FBI Assistant Special Agent in Charge Nick Boshears, Pittsburgh Field Office, FBI Assistant Section Chief Brian Herrick, Violent Crimes Against Children, and West Virginia State Police Sergeant James Kozik, Internet Crimes Against Children (ICAC) Task Force, announced the results of multiple investigations regarding child exploitation in the Southern District of West Virginia (SDWV) through the West Virginia Child Exploitation and Human Trafficking Task Force. The task force provides resources to identify, investigate and prosecute individuals who exploit our children for sex, child pornography and human trafficking. The task force partners in the Southern District of West Virginia are: West Virginia State Police, Parkersburg Police Department, Raleigh County Sheriff’s Office and Kanawha County Sheriff’s Office.
“Protecting our children from exploitation and violence is a priority for me and my office,” said United States Attorney Mike Stuart. “Although due to the nature of these cases, we don’t often ‘advertise’ our work, you can rest assured we have been aggressively engaged 24 hours a day, 7 days a week to do all we can to protect our children from predators and monsters that prey on our children’s innocence, vulnerabilities and trust. Child exploitation is an epidemic in America today and West Virginia is not immune from the predators that prey on our children.”
"It’s not enough to just identify the crimes against children anymore, we have to work to prevent exploitation," said Special Agent in Charge Robert Jones. "Having a dedicated task force with our law enforcement partners to address these issues in West Virginia gives us more resources to identify, investigate and arrest online predators. The FBI will continue to pursue these vicious criminals to protect our children."
Over the past 6 months, the task force has made 19 arrests, executed 27 search warrants, had 10 indictments including three pending and 9 convictions in specific proactive efforts in the Southern District of West Virginia.
In addition to the multiple investigations involving the task force, the United States Attorney’s Office, SDWV, has prosecuted nearly a dozen additional cases related to child exploitation and internet pornography.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Two Oregon Tribes Receive Justice Department Grant Supporting Native American Crime VictimsRead the Press Release
WASHINGTON— The Office of Justice Programs’ Office for Victims of Crime today awarded more than $8 million to support crime victims in Native American communities in six states: Alaska, California, Maine, Oregon, Washington and Wisconsin. The group of 13 awards is the third in a series of grants being made by OVC to American Indian and Alaska Native communities. OVC has now awarded more than $17 million of nearly $100 million to support tribal victim service programs.
The awards—30 in total so far—will fund critical crime victim services, such as counseling, transitional housing, emergency services and transportation. The grants are supported by the Crime Victims Fund, a repository of federal criminal fines, fees and special assessments. The fund includes zero tax dollars.
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said OJP’s Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
“One of our priorities in the District of Oregon is our unwavering commitment to members of tribal communities. Our office stands firmly on the side of tribal victims and will continue to work tirelessly pursuing justice on their behalf,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The Justice Department’s tribal grant programs ensure all tribes have the resources necessary to support victims and keep their communities safe.”
According to OJP’S Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crime at rates far greater than the general population.
Two Oregon tribes were among the 13 receiving grant awards today. Nearly 170 tribes are expected to receive funding this spring to help their communities support crime victims over the next three years:
- The Klamath Tribes of Oregon (Oregon) was awarded $396,793 to enhance existing services and outreach to victims of domestic violence, sexual assault, stalking, sex trafficking, and dating violence.
- The Cow Creek Band of Umpqua Tribe of Indians (Oregon) was awarded $714,783 to offer longer term transitional housing to provide stability for families and individuals while they receive restorative services.
- Aroostook Band of Micmacs (Maine) was awarded $569,086 to expand the existing victim services program by providing 24/7 staffing of the emergency shelter.
- Bad River Band of Lake Superior Tribe of Chippewa Indians (Wisconsin) was awarded $699,925 to create a central location for the victim services program, currently located in multiple locations on the reservation, and expand their crime victim services to include children and elders.
- The Jamestown S'Klallam Tribe (Washington) was awarded $369,176 to establish a satellite Children’s Advocacy Center at the Jamestown Tribe to increase accessibility to culturally relevant services; state-of-the-art recording equipment; and skilled, trained forensic interviewers.
- The Scotts Valley Band of Pomo Indians (California) was awarded $546,586 to build a culturally relevant, long-term strategic plan to improve services to victims; and develop programming around the concept of historical intergenerational trauma therapy using a practice-based curriculum.
- The Karuk Tribe (California) was awarded $719,970 to improve access to, and delivery of, services to victims of crime by establishing a Victim Services Access Center, which will include secure space for a victim interview room and a private waiting area for victims.
- The Bishop Paiute Tribe (California) was awarded $715,750 to enhance services provided through Relief After Violent Encounters by expanding the victim service program to include direct emergency supportive services.
- The Central Council Tlingit & Haida Indian Tribes of Alaska (Alaska) was awarded $1,413,000 to implement a culturally appropriate response to address elder abuse and provide crime victim services for the Native older adult population within the Juneau urban area, and also serve victims in the villages.
- The Puyallup Tribe of Indians (Washington) was awarded $407,448 to expand existing services by strengthening their continuum of care for homeless victims of crime and for victims with alcohol and substance abuse issues. Funding will also support culturally appropriate inpatient treatment services at a local or regional treatment center.
- The Big Valley Rancheria Band of Pomo Indians (California) was awarded $670,443 to conduct a community needs assessment and develop a strategic plan to help inform the implementation of crisis intervention services for men, boys, and elders who are victims of crime. The tribe will also improve case management, incorporate healing and cultural practices into their victim advocacy services, and expand community outreach and education to help connect victims to vital resources.
- The Tetlin Tribal Council (Alaska) was awarded $513,865 to conduct a community needs assessment and create a strategic plan that will guide the development, implementation, and expansion of victim services.
- The Aleut Community of St. Paul Island Tribal Government (Alaska) was awarded $562,200 to expand existing services and develop additional services for victims of crime through strategic planning and enhanced training of program staff.
“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
Two Additional Kingsmen Motorcycle Club Members Sentenced for RICO ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - James P. Kennedy, Jr. today that announced today that two more members of the Kingsmen Motorcycle Club (KMC), who were convicted of RICO conspiracy, were sentenced by U.S. District Judge Elizabeth A. Wolford. Thomas Koszuta was sentenced to serve 57 months in prison, and Robert Osborne was sentenced to time served and three years supervised release.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who are handling the case, stated that the defendants admitted to being a member of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such crimes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence.
Defendant Koszuta further admitted that the Kingsmen operated by a strict chain of command serving under the direction of Kingsmen National President, David Pirk. On June 7, 2013, KMC forcibly shut down the Springville Chapter and strip members of their colors because they were non-compliant members. While others possessed firearms, the defendant struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug which contained blood. Also, on August 3, 2013, the defendant and other Kingsmen members conducted a drive-by shooting targeting former Springville Kingsmen members. Two shots were fired from a shotgun, one of which struck a vehicle parked near one of the targeted victims.
Defendant Osborne was at various times a KMC Olean Chapter President, Vice President, and regular full-patch KMC member. In September 2014, he erased video footage that showed member Andre Jenkins inside the Olean Chapter clubhouse both days before and after Jenkins murdered KMC members Paul Maue and Daniel "DJ" Szymanski behind the North Tonawanda Chapter clubhouse on September 6, 2014.
In December 2014, Osborne and Emmett Green assaulted a fellow KMC member by punching the victim repeatedly for violating KMC rules by stealing money from the Olean Chapter clubhouse.
A total of 16 defendants were charged and convicted in this case, including KMC National President David Pirk and Andrew Jenkins who were each sentenced to serve multiple terms of life in prison.
Today’s sentencings are the culmination of an investigation led by the FBI’s Safe Streets Task Force. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the North Tonawanda Police Department; the Niagara County Sheriff’s Office; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier
Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department.
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Turtle Creek Felon Sentenced to 4+ Years in Prison on Firearms ChargesRead the Press Release
PITTSBURGH, PA – A resident of Turtle Creek, Pennsylvania, was sentenced to four years and three months (51 months) of imprisonment and three years of supervised release in federal court for two charges of possession of a firearm or ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
Iklas Richard Davis, 38, was sentenced by United States District Judge Nora Barry Fischer.
In November of last years, Davis pleaded guilty after three days of trial and after the government rested its case. In connection with the trial and guilty pleas, the court was advised that, on or about July 27, 2016 and October 12, 2017, Davis, who has a prior felony conviction in Pennsylvania, knowingly possessed several firearms and ammunition. Law enforcement officers discovered the firearms and ammunition during the execution of a search warrant of Davis’s home and vehicle in 2016. One of the firearms was an AR-15 assault rifle engraved with the phrase "Let it Rain" and included graphics of skulls. Some of the ammunition were forty rounds contained in an extended magazine compatible with the AR-15. Davis shared that home with Quinyahta Rochelle, who has pleaded guilty to celebrity hacking, identity theft and firearms offenses.
After the 2016 search warrant, Davis was charged by Wilkins Township Police Department and released on bond. However, United States Secret Service agents, working with the Allegheny County Police, subsequently developed evidence that Rochelle and Davis were engaged in various identity-theft related activities. Thus, Rochelle and Davis were both federally indicted for firearms-related offenses based on the 2016 search warrant, and law enforcement executed both the arrest warrants, which were for firearms-related offenses based on the 2016 search warrant, and new search warrants seeking evidence of identity-theft related offenses, on October 12, 2017. During that search, agents recovered another loaded firearm in the master bedroom closet, along with numerous rounds of ammunition and a bulletproof vest. Davis admitted to possessing that firearm, and he was federally indicted a second time for being a Felon in Possession of a Firearm. The two firearm cases – one based on the 2016 search warrant and the other based on the 2017 search warrant – were consolidated for trial, which began on November 5, 2018.
Assistant United States Attorneys Brendan T. Conway and Nicole Vasquez Schmitt are prosecuting this case on behalf of the government.
The United States Secret Service, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Police Department, and the Wilkins Township Police Department conducted the investigation that led to the prosecution of Davis.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Three Pharmaceutical Companies Agree to Pay a Total of over $122 Million to Resolve Allegations that they Paid Kickbacks Through Co-Pay Assistance FoundationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that three pharmaceutical companies –Jazz Pharmaceuticals plc (Jazz), Lundbeck LLC (Lundbeck), and Alexion Pharmaceuticals, Inc. – have agreed to pay a total of $122.6 million to resolve allegations that they violated the False Claims Act by paying kickbacks to Medicare and Civilian Health and Medical Program (ChampVA) patients through purportedly independent charitable foundations.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, co-pays). Similarly, under ChampVA, patients may be required to pay a co-pay for medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can set for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare or VA patients to purchase the companies’ drugs.
“We are committed to ensuring that pharmaceutical companies do not use third-party foundations to pay kickbacks masking the high prices those companies charge for their drugs,” said United States Attorney Andrew E. Lelling. “This misconduct is widespread, and enforcement will continue until pharmaceutical companies stop circumventing the anti-kickback laws to artificially bolster high drug prices, all at the expense of American taxpayers.”
“Pharmaceutical companies undercut a key safeguard against rising drug costs when they create assistance funds to serve as conduits for the companies to subsidize the copays of their own drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“These settlements demonstrate the FBI’s commitment to safeguarding the Medicare program and ensuring that patients receive treatment solely based on their medical needs,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Not only did these companies undermine a program that was set up to assist patients in decreasing the cost of their drugs, but they threatened the financial integrity of the Medicare program to which we all contribute and on which we all depend.”
“Kickback schemes undermine the integrity our nation’s healthcare system, including healthcare benefits administered by the U.S. Department of Veterans Affairs,” said Special Agent-in-Charge Sean Smith, VA Office of Inspector General, Northeast Field Office. “The VA Office of Inspector General, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts to uncover these schemes.”
The government’s allegations in the three settlements announced today are as follows:
Jazz. Jazz sells Xyrem, a treatment for narcolepsy, and Prialt, a non-opioid treatment for management of severe chronic pain. The government alleges that, in 2011, Jazz asked a foundation to create a fund that would cover the co-pays of Xyrem patients. The foundation then created a fund that would ostensibly cover the co-pays of patients taking any narcolepsy drug, but that, through May 2014, almost exclusively assisted patients taking Xyrem. During this period, Jazz raised the price of Xyrem at over 24 times the rate of overall inflation in the United States. The government further alleges that Jazz asked the same foundation to create a fund that would purportedly cover the co-pays of patients taking any drug for severe chronic pain, but that, through May 2014, almost exclusively assisted patients taking Prialt. The foundation told Jazz that, when severe chronic pain patients seeking assistance with drugs other than Prialt contacted the foundation, the foundation would refer them elsewhere. Furthermore, as Jazz knew, the foundation did not advertise the severe chronic pain fund on its website, so that Jazz itself was the principal source referrals to the fund. Jazz has agreed to pay $57 million to resolve the government’s allegations.
Lundbeck. Lundbeck sells Xenaxine, a treatment for chorea associated with Huntington’s Disease. The government alleges that, beginning in 2011, Lundbeck donated millions of dollars to a foundation’s fund that, ostensibly, covered the co-pays of patients with Huntington’s Disease, but that, in fact, simply covered the co-pays of patients taking Xenazine, regardless of the condition the drug was being used to treat. After May 2014, when HHS-OIG published a document entitled “Supplemental Special Advisory Bulletin: Independent Charity Assistance Programs,” Lundbeck and the foundation agreed that the foundation would continue to pay the Xenazine co-pays for non-Huntington’s Disease patients out of a “general fund” that the foundation would use for this purpose. When Lundbeck asked the foundation whether there was a “risk” that HHS-OIG would not view this practice as compliant, the foundation replied, “[t]hey don’t know what we use the general fund for.” This conduct continued through 2016. During the period of the alleged misconduct, Lundbeck raised the price of Xenazine at over 22 times the rate of overall inflation in the United States. Lundbeck has agreed to pay $52.6 million to resolve the government’s allegations.
Jazz and Lundbeck each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
“These kickback schemes harm Medicare and the public,” said Gregory E. Demske, Chief Counsel to the Inspector General. “OIG CIAs, such as those with Jazz and Lundbeck, are designed to reduce future risks to patients and taxpayer-funded programs. OIG decided not to require a CIA with Alexion because it made sweeping and fundamental organizational changes following the bad conduct. The changes included hiring a new eight-member executive leadership team and changing half of the members of its Board of Directors. In addition, forty percent of Alexion’s employees are new and the company relocated its corporate headquarters.”
Alexion. Alexion sells Soliris, a drug that is approved to treat patients with paroxysmal nocturnal hemoglobinuria (PNH) and to treat patients with atypical hemolytic uremic syndrome (aHUS). Soliris can cost over $500,000 per year. Alexion allegedly knew that the price it set for Soliris could pose a financial burden to patients. In January 2010, the government alleges, Alexion requested that a foundation create a “Complement-Mediated Disease” (“CMD”) fund. Over the next several months, Alexion and the foundation allegedly discussed the coverage parameters that Alexion desired for the fund, including Alexion’s desire that the fund “not support a patient with any of these [CMD] diagnoses for other reasons tha[n] Soliris therapy.” The government alleges that, after the fund opened, Alexion—the sole donor to the fund—understood that the fund’s provision of financial assistance to a patient was contingent on the patient taking Soliris. Alexion allegedly noted internally that it needed to be diligent in notifying the foundation if a patient had stopped taking Soliris so that Alexion’s donations would not be used on patients who were not starting or maintaining Soliris therapy. Alexion has agreed to pay $13 million to resolve the government’s allegations.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG Chief Counsel Demske, FBI SAC Bonavolonta, and VA OIG SAC Sean Smith made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Abraham George, of Lelling’s Affirmative Civil Enforcement Unit, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Three Pharmaceutical Companies Agree to Pay a Total of over $122 Million to Resolve Allegations That They Paid Kickbacks Through Co-Pay Assistance FoundationsRead the Press Release
The Department of Justice today announced that three pharmaceutical companies – Jazz Pharmaceuticals plc (Jazz), Lundbeck LLC (Lundbeck), and Alexion Pharmaceuticals Inc. (Alexion) – have agreed to pay a total of $122.6 million to resolve allegations that they each violated the False Claims Act by illegally paying the Medicare or Civilian Health and Medical Program (ChampVA) copays for their own products, through purportedly independent foundations that the companies used as mere conduits.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Similarly, under ChampVA, patients may be required to pay a copay for medications. Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce Medicare or ChampVA patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
“Pharmaceutical companies undercut a key safeguard against rising drug costs when they create assistance funds to serve as conduits for the companies to subsidize the copays of their own drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“We are committed to ensuring that pharmaceutical companies do not use third-party foundations to pay kickbacks masking the high prices those companies charge for their drugs,” said U.S. Attorney Andrew E. Lelling. “This misconduct is widespread, and enforcement will continue until pharmaceutical companies stop circumventing the anti-kickback laws to artificially bolster high drug prices, all at the expense of American taxpayers.”
Jazz and Lundbeck each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
“These kickback schemes harm Medicare and the public,” said Gregory E. Demske, Chief Counsel to the Inspector General. “OIG CIAs, such as those with Jazz and Lundbeck, are designed to reduce future risks to patients and taxpayer-funded programs. OIG decided not to require a CIA with Alexion because it made sweeping and fundamental organizational changes following the bad conduct. The changes included hiring a new eight-member executive leadership team and changing half of the members of its Board of Directors. In addition, 40 percent of Alexion’s employees are new and the company relocated its corporate headquarters.”
“These settlements demonstrate the FBI’s commitment to safeguard the Medicare program and ensure that patients receive treatment solely based on their medical needs,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Not only did these companies undermine a program that was set up to assist patients in decreasing the cost of their drugs, but they threatened the financial integrity of the Medicare program to which we all contribute and on which we all depend.”
“Kickback schemes undermine the integrity our nation’s healthcare system, including healthcare benefits administered by the U.S. Department of Veterans Affairs,” said Special Agent-in-Charge Sean Smith, VA Office of Inspector General, Northeast Field Office. “The VA Office of Inspector General, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts to uncover these schemes.”
The government’s allegations in the three settlements being announced today are as follows:
Jazz: Jazz sells Xyrem, a narcolepsy medication with Gamma Hydroxybutyrate (GHB)—a central nervous system depressant and controlled substance—as its main active ingredient. The government alleged that, in 2011, Jazz asked a foundation to create a fund that would pay the copays of Xyrem Medicare patients and that the foundation agreed to establish a “Narcolepsy Fund,” to which Jazz became the sole donor. The government alleged that Jazz knew that, although Xyrem accounted for a small share of the overall narcolepsy market, the fund almost exclusively used Jazz’s donations to pay copays for Xyrem and required non-Xyrem patients on competing products to obtain a denial letter from another assistance plan before helping them. The government further alleged that, in conjunction with establishing this fund, Jazz made Medicare patients ineligible for Jazz’s free drug program and instead referred Xyrem Medicare patients to the foundation, enabling Jazz to generate revenue from Medicare and induce purchases of the drug, rather than continuing to provide these patients with free drugs. Meanwhile, Jazz raised the price of Xyrem by over 150 percent from 2011 through the end of the relevant time period.
Jazz also sold Prialt, an injectable severe chronic pain medication. The government alleged that Jazz asked the same foundation to create a fund ostensibly to assist patients with the co-pays of any severe chronic pain drugs, but which, in practice, almost exclusively paid Prialt Medicare copays. Shortly after creating the fund, the foundation allegedly told Jazz that when severe chronic pain patients seeking assistance with other drugs contacted the foundation, it would refer them elsewhere. The government alleged that Jazz was also aware that the fund did not appear on the foundation’s website, thereby minimizing the number of non-Prialt patients seeking assistance from the fund. Jazz has agreed to pay $57 million to resolve the government’s allegations.
Lundbeck: Lundbeck sells Xenazine, the only drug that was approved to treat chorea associated with Huntington’s disease until a generic version became available until 2015. The government alleged that Lundbeck was the sole donor and made millions in payments to a fund at a foundation that ostensibly provided financial support only for patients with Huntington’s Disease. However, Lundbeck allegedly referred Xenazine patients with many other conditions to this foundation, which then paid the Xenazine copays for these unapproved uses from its Huntington’s Disease fund. The government further alleged that, in June 2014, after the foundation determined that its Huntington’s Disease fund would no longer pay the copays of patients taking Xenazine for non-Huntington’s disease uses, Lundbeck agreed to repurpose some of its prior donations to the Huntington’s Disease fund to a “general fund” at the foundation for the purpose of paying these patients’ Xenazine copays, and made subsequent “unrestricted” payments to the foundation with the understanding that the foundation would use these payments to pay Xenazine copays for these same patients. Lundbeck allegedly asked the foundation whether there was a “risk” that this practice would be viewed as not compliant with the foundation’s HHS-OIG Advisory Opinion, and the foundation allegedly replied that “[t]hey don’t know what we use the general fund for.”
The government also alleged that, at the time it was engaged in the foregoing conduct, Lundbeck had a policy of not permitting Medicare or ChampVA patients to participate in its free drug program for Xenazine, which was open to other financially needy patients, even if those Medicare or ChampVA patients could not afford their copays for Xenazine. Instead, in order to generate revenue from Medicare and ChampVA and to induce purchases of Xenazine, Lundbeck allegedly referred financially needy non-Huntington’s Disease Xenazine patients to the foundation, which resulted in claims to Medicare and ChampVA to cover the cost of the drug. Lundbeck has agreed to pay $52.6 million to resolve the government’s allegations.
Alexion: Alexion sells Soliris, which, from Jan. 1, 2010, through June 30, 2016, was indicated for certain uses to treat patients with paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). The cost of Soliris, based upon its list price and indicated dosing recommendation, can be approximately $500,000 per year. The government alleged that Alexion made donations to a “Complement-Mediated Disease” (CMD) fund at a foundation to pay the Medicare copay obligations of patients taking Soliris and to induce those patients’ purchases of Soliris. Alexion allegedly knew that the price it set for Soliris could pose a barrier to patients’ purchases of it. In particular, the government alleged that Alexion approached the foundation in January 2010 to request that it create a fund to provide financial assistance to Soliris patients, including by paying patients’ Soliris Medicare copays and other medical expenses for Soliris patients. Over the next several months, Alexion and the foundation allegedly discussed the coverage parameters for the fund, including Alexion’s desire that the foundation “not support a patient with any of these [CMD] diagnoses for other reasons tha[n] Soliris therapy.” After the fund opened, Alexion—the sole donor to the fund—allegedly understood that the foundation’s provision of financial assistance to a patient was contingent on the patient taking Soliris. Alexion allegedly noted internally that it needed to be diligent in letting the foundation know if a patient had stopped taking Soliris so that Alexion’s donations would not be used on patients who were not starting or maintaining Soliris therapy.
Meanwhile, the government alleged that Alexion had a general practice of not permitting Medicare patients to participate in its free drug program, which was open to other financially needy patients, even if those Medicare patients could not afford their copays for Soliris. Instead, in order to generate revenue from Medicare and induce purchases of Soliris, Alexion allegedly referred Medicare patients prescribed Soliris to the foundation, through the foundation’s “referral portal” software. Allegedly, the “referral portal” reported information back to Alexion confirming those Soliris patients who were approved for copay or other financial assistance from the foundation, and detailed the foundation’s payments to them, which resulted in claims to Medicare to cover the cost of Soliris. Alexion has agreed to pay $13 million to resolve the government’s allegations.
The government’s resolution of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
These investigations were conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the Department of Veterans Affairs, Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Three Indicted for Manufacture of Methamphetamine in MaderaRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Oscar Rene Marrot-Garcia (Marrot), 26, of Chowchilla, and Mexican nationals Jose Monge Ponce (Ponce), 26, and Francisco Alcantar-Miranda (Alcantar), 30, charging them with conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, manufacturing methamphetamine, possessing with intent to distribute methamphetamine, cocaine, heroin, and marijuana, and maintaining drug premises, U.S. Attorney McGregor W. Scott announced.
According to court documents, Marrot rented a rural residence in Madera in December 2018 and set up a methamphetamine lab there. Joined by Ponce and Alcantar, the three assisted in manufacturing methamphetamine and storing large quantities of other drugs at the unoccupied Madera residence. At the end of January law enforcement executed a search warrant at the residence and found all three men there. They also found 22.4 pounds of methamphetamine in solution, 14 pounds of finished methamphetamine, 1 pound of cocaine, 2 pounds of heroin, and 25 pounds of marijuana. A handgun with a fully loaded magazine was also found.
This case is the product of an investigation by the Madera County Narcotic Enforcement Team (MADNET) and the High Intensity Drug Trafficking Area (HIDTA) team, which consists of agents from Homeland Security Investigations, California Department of Justice, California Highway Patrol, Fresno, the Sheriffs’ Offices of Tulare, and King Counties, and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug conspiracy, manufacturing, and possession with the intent to distribute charges, the defendants face a mandatory minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. As to maintaining drug premises, the defendants face a maximum statutory penalty of 20 years in prison and a $500,000 fine. The defendants may also be responsible to pay any cleanup costs associated with the disposal of the hazardous materials. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tahlequah Woman Pleads Guilty to False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Julieann Logsdon, age 33, of Tahlequah, Oklahoma, entered a guilty plea to False Statement, in violation of Title 18, United States Code, Section 1001, punishable by not more than 5 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleges that on or about August 29, 2017, within the Eastern District of Oklahoma, the defendant did willfully and knowingly make a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the executive branch of the government of the United States, by claiming she entered the MailMart and turned off the alarm, at a specific date and time. The statement and representation were false because, as the defendant then and there knew, she did not enter the MailMart and did not turn off the alarm at that time.
The charges arose from an investigation by the Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Staten Island Man Sentenced to 36 Months’ Imprisonment for $2.5 Million Real Estate Investment Scheme Targeting Elderly VictimsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Yevgeniy Braziler was sentenced by United States District Judge Ann M. Donnelly to 36 months’ imprisonment for his role in a scheme targeting investors, including numerous elderly victims, by selling them partnerships in fraudulent real estate companies. The amount of restitution will be determined by the Court at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence.
“Braziler has now been held accountable for fleecing the victims of his fraudulent scheme, many of whom were elderly when they were targeted, and nearly half of whom are now deceased,” stated United States Attorney Donoghue. “The Department of Justice and this Office are committed to protecting investors, especially the most vulnerable, from predators like the defendant.”
“The day of reckoning has finally arrived for Mr. Braziler who lacked the moral compass to do the right thing for his investment clients,” stated USPIS Inspector-in-Charge Bartlett. “In many of these cases, he stole from seniors who worked their entire lives saving for a brighter future. Mr. Braziler will have plenty of time in prison to consider the impact his crimes have had on the victims in this case.”
Braziler and his associates promised potential investors, many of whom were elderly and some of whom suffered from dementia, that real estate companies in Brooklyn that he managed would use investments to purchase, renovate, rent and re-sell residential real estate in and around Buffalo and Niagara Falls, promising high returns for the investors. In response, investors sent him over $1.8 million. Instead of using the money for the promised purposes, Braziler stole most of it. For example, investors sent one of Braziler’s investment vehicles, Buffalo Housing, at least $978,000, but Braziler purchased only one property for approximately $12,000, and kept most of the money for himself and others. In all, Braziler kept at least $323,510 of investors’ money for his own use, which he spent on credit card bills, pet supplies, alcohol, restaurants and his child’s school tuition. The investors lost nearly all of their money.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Matthew S. Amatruda is in charge of the prosecution.
The Defendant:
YEVGENIY BRAZILER
Age: 40
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-385 (AMD)
State Department Contracting Officer Indicted for Bribery and Procurement FraudRead the Press Release
A 17-count indictment was unsealed today charging Zaldy N. Sabino, a contracting officer with the U.S. Department of State, with conspiracy, bribery, honest services wire fraud, and making false statements.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Inspector General Steve A. Linick of the U.S. Department of State and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
According to the indictment, between November 2012 and early 2017, Sabino and the owner of a Turkish construction firm allegedly engaged in a bribery and procurement fraud scheme in which Sabino received at least $239,300 in cash payments from the Turkish owner while Sabino supervised multi-million dollar construction contracts awarded to the Turkish owner’s business partners and while Sabino made over a half million in structured cash deposits into his personal bank accounts. Sabino allegedly concealed his unlawful relationship by, among other things, making false statements on financial disclosure forms and during his background reinvestigation.
The case is being investigated by the Department of State’s Office of Inspector General and the FBI’s Washington Field Office. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Jack Hanly of the Eastern District of Virginia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Woman Admits to Embezzling from Her Employer More Than $2.4 Million Worth of Computer EquipmentRead the Press Release
CHARLOTTE, N.C. – Jolynn Denise McHone, 44, of Fort Mill, South Carolina, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to wire fraud, for embezzling from her employer more than $2.4 million worth of computer equipment, announced Andrew Murray, U.S. Attorney for the Western district of North Carolina.
Special Agent in Charge John A. Strong, of the FBI Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to the filed criminal bill of information and plea documents, from 2006 to 2017, McHone was employed by a Florida-based company as an information technology (IT) procurement manager. In that capacity, McHone was responsible for negotiating IT equipment purchases and lease agreements with the company’s IT vendors, managing IT equipment and purchases for the company and its subsidiaries throughout the United States, including North Carolina, and managing the company’s IT operating budget. McHone admitted in court today that from 2012 to 2017, she engaged in a scheme to defraud her employer by ordering new IT equipment using company funds, and then selling the IT equipment for her own financial gain.
According to court documents, McHone executed the scheme by placing orders for IT equipment to be delivered to a company subsidiary located in Concord, North Carolina, for supposedly legitimate company business. McHone intercepted the deliveries of the equipment, then met a co-conspirator in Charlotte, North Carolina, to whom she sold the equipment for cash, often for as little as 60 percent of the retail value of the equipment. During the relevant time period, McHone admitted that she engaged in dozens of fraudulent IT equipment purchase or lease transactions. Through this scheme, McHone obtained hundreds of fraudulently-acquired pieces of equipment, and caused losses of more than $2.4 million to the company.
McHone pleaded guilty to one count of wire fraud scheme, which carries a maximum penalty of 20 years in prison and a $250,000 fine. McHone has been released on bond. A sentencing date has not been set.
The FBI is in charge of the investigation. Assistant U.S. Attorney Dallas Kaplan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Social Security Employee Facing Federal Indictment for a Scheme to Obtain over $236,000 in Social Security Benefits by Allegedly Submitting Fictitious ClaimsRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Cheikh Ahmet Tidiane Cisse, age 43, of Baltimore, Maryland, on federal charges in connection with a scheme in which Cisse allegedly filed fraudulent claims for Social Security benefits using fictitious identities and the identities of actual individuals, and attempted to collected over $236,000. The indictment was returned on April 3, 2019.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
Cisse was employed by the Social Security Administration (SSA) as a Claims Specialist. The 14-count indictment alleges that between July 2018 and March 2019, Cisse used his position at SSA to create fictitious identities within the SSA’s social security number database in order to file fictitious claims for benefits. The indictment alleges that Cisse used both fictitious identities and the identities of actual individuals to file the fraudulent claims and stole or attempted to steal over $236,000 from SSA.
The indictment alleges that Cisse would input false information into SSA systems indicating that he had witnessed original documents, such as birth certificates, and marriage and divorce decrees, when in fact he had not. In one instance, when SSA withheld payment due to suspected fraud, the indictment alleges that Cisse contacted SSA’s payment center and falsely relayed that the purported beneficiary had called inquiring about the whereabouts of the payment, which caused the payment center to release the funds. Cisse allegedly directed payments on the fraudulent claims into accounts he controlled, then spent the funds through cash withdrawals and retail purchases.
According to the indictment, Cisse caused SSA to pay approximately $87,000 in fraudulent claims through direct deposit, issue approximately $46,000 in checks that were never negotiated, and authorize approximately $103,000 in claims that SSA halted before payments were issued.
If convicted, Cisse faces a maximum sentence of 20 years in prison for each of nine counts of wire fraud; a maximum of 10 years in prison for Social Security fraud and for theft of government property; and a mandatory two years in prison, consecutive to any other sentence imposed, for each of three counts of aggravated identity theft. Cisse was arrested on a related criminal complaint on March 20, 2019, and was released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled yet on the indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the SSA Office of Inspector General for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.
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Sioux Falls Man Pleads Guilty to Aiding and Assisting in the Preparation of False and Fraudulent Tax ReturnsRead the Press Release
United States Attorney Ron Parsons announced that Isaiah H. Rangel, age 50, of Sioux Falls, South Dakota, appeared before District Judge Karen E. Schreier, on April 3, 2019, and pled guilty to an Indictment that charged him with Aiding and Assisting in the Preparation of False and Fraudulent Tax Returns.
The maximum penalty upon conviction is 3 years in federal prison and/or a $100,000 fine, a period of supervised release of not more than 1 year, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Between January 29, 2015, and April 15, 2015, Rangel, a resident of South Dakota, operated a tax preparation business known as 1st Global Tax. Rangel willfully assisted in the preparation of a false and fraudulent Income Tax Return of a taxpayer for calendar year 2014.
The investigation was conducted by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Jeffrey C. Clapper.
A presentence investigation was ordered and a sentencing date was set for June 24, 2019. The defendant was released pending sentencing.
Sinaloa Cartel Money Launderer Pleads Guilty; Admits Laundering $13 Million in Drug MoneyRead the Press Release
NEWS RELEASE SUMMARY – April 4, 2019
SAN DIEGO – Cesar Hernandez-Martinez of Tijuana pleaded guilty in federal court today to managing and supervising an “extensive” international money laundering organization that smuggled $13 million in narcotics proceeds from the United States to Mexico.
The narcotics - multi-kilogram quantities of cocaine, methamphetamine and heroin – were smuggled into the United States from Mexico by a drug-trafficking organization that Hernandez-Martinez acknowledged was a part of, or affiliated with, the Sinaloa Cartel.
Hernandez-Martinez, 29, was extradited from Mexico to the United States in September 2018 to face these charges. Through his plea agreement, Hernandez-Martinez admitted that, from approximately April 2013 until November 2015, he owned and operated currency exchange houses in Tijuana that received smuggled drug proceeds. Hernandez-Martinez further admitted to knowing that money received was from narcotics trafficking activity in the United States. Hernandez-Martinez also coordinated couriers involved in smuggling this currency from the United States to Mexico, ensuring that they picked up the currency from the correct sources who were primarily located in Southern California.
Hernandez-Martinez pleaded guilty before U.S. Magistrate Judge Bernard G. Skomal. Hernandez-Martinez will be sentenced on July 8, 2019 at 9:00 a.m. before U.S. District Judge Roger T. Benitez. Hernandez-Martinez faces up to 20 years in prison and a maximum fine of $26 million (twice the value of the funds involved). Three other defendants previously entered guilty pleas in this case and were sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda).
The U.S. Attorney’s Office is working this matter together with the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice in Washington, D.C.
DEFENDANT Case Number 15-cr-950
Cesar Hernandez-Martinez Age: 29 Tijuana, Mexico
SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED
Hernandez-Martinez
Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).
Maximum Penalties: 20 years in prison; $500,000 fine or twice the value of the funds involved.
Prior Guilty Pleas and Sentences
Joel Acedo-Ojeda: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 135 months custody and $20,000 fine.
Omar Ayon-Diaz: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 120 months custody and $15,000 fine.
Osvaldo Contreras-Arriaga: Pleaded guilty to Conspiracy to import cocaine, in violation of Title 21, U.S.C., Secs. 952, 960 and 963; sentenced to 132 months custody and $1,000 fine.
INVESTIGATING AGENCY
Homeland Security Investigations
Sinaloa Cartel Money Launderer Pleaded Guilty to Laundering $13 Million in Hard Narcotics ProceedsRead the Press Release
A man from Tijuana, Mexico pleaded guilty in federal court today to managing and supervising an “extensive” international money laundering organization that smuggled, from the United States to Mexico, through Southern California and elsewhere, under his direction, $13 million of narcotics proceeds.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert S. Brewer Jr. for the Southern District of California and Special Agent in Charge Dave Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Diego Field Office, made the announcement.
Cesar Hernandez-Martinez, 29, pleaded guilty to conspiracy to commit international money laundering before U.S. Magistrate Judge Bernard G. Skomal. Hernandez-Martinez was extradited from Mexico to the United States in September 2018. The narcotics -- multi-kilogram quantities of cocaine, methamphetamine and heroin – were smuggled into the United States from Mexico by a drug trafficking organization that Hernandez-Martinez acknowledged was a part of, or affiliated with, the Sinaloa Cartel. Through his plea agreement, Hernandez-Martinez admitted that, from approximately April 2013 until November 2015, he owned and operated currency exchange houses in Tijuana that received smuggled proceeds. Hernandez-Martinez further admitted to knowing that these smuggled proceeds were from narcotics trafficking activity in the United States. According to the plea agreement, Hernandez-Martinez also coordinated couriers involved in smuggling this currency from the United States to Mexico, ensuring that they picked up the currency from the correct sources who were primarily located in Southern California.
Hernandez-Martinez will be sentenced on July 8, 2019 before U.S. District Judge Roger T. Benitez. Three other defendants previously entered guilty pleas in this case and have been sentenced including:
- Joel Acedo-Ojeda, 34, of Culiacan, Sinaloa, Mexico, pleaded guilty to conspiracy to commit international money laundering and was sentenced to serve 135 months in prison and ordered to pay a $20,000 fine;
- Omar Ayon-Diaz, 40, of Tijuana, pleaded guilty to conspiracy to commit international money laundering and was sentenced to serve 120 months in prison and was ordered to pay a $15,000 fine; and
- Osvaldo Contreras-Arriaga, 31, of Culiacan, Sinaloa, Mexico, pleaded guilty to conspiracy to import cocaine and was sentenced to serve 132 months in prison and pay a $1,000 fine.
HSI San Diego conducted the investigation. Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Lawrence A. Casper of the Southern District of California are prosecuting the case.
Shreveport man pleads guilty to lying on a federal firearms formRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Joseph Shaquille Brown, 25, of Shreveport, pleaded guilty before U.S. District Judge Donald E. Walter for making a false statement on a federal firearms transaction record, known as an ATF Form 4473.
According to the guilty plea, Brown completed an ATF Form 4473 at a Shreveport business on November 17, 2017. On the form, Brown indicated he was not subject to a court authorized restraining order. However, he was subject to two such restraining orders that were issued following his arrest on October 4, 2017 for telephone harassment and stalking his ex-wife. The Caddo Parish District Court issued a restraining order on October 9, 2017, and the Caddo parish Juvenile Court issued another restraining order on October 27, 2017.
Brown faces up to five years in prison, three years of supervised release and a $250,000 fine. Judge Donald Walter set Brown’s sentencing date for July 2, 2019.
The ATF conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Seven Ohio Men Plead Guilty to Crimes Related to Sexually Abusing Children, Creating Child PornographyRead the Press Release
COLUMBUS, Ohio – Seven Ohio men have pleaded guilty to related crimes regarding child pornography and the sexual abuse of two 10-year-old children.
Four of the men were charged in a second superseding indictment returned by a federal grand jury in August 2018, for crimes related to producing child pornography and the repeated sexual abuse of a 10-year-old girl. They include: William G. Weekley, 35, of Newark; Timothy F. Sullivan, 50, of Canal Winchester; Franklin Eugene Perry, 63, of Columbus; and Brian S. Perkins, 42, of Mt. Vernon.
Three other defendants were discovered in the course of the investigation that was initiated by the discovery of Weekley’s activities. Those three men were each charged in separate cases on August 23, 2018. Grant Michalski, 29, of Columbus, was charged by criminal complaint. A federal grand jury charged Eric Zevely, 34, of Columbus, to offenses related to the production of child pornography and sexual abuse of another 10-year-old girl. Finally, in a fourth case, Jordan I. Makowski, 33, of Greenville, Ohio, was indicted by a federal grand jury for distributing and receiving child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin, Westerville Acting Police Chief Charles Chandler and other members of the FBI Crimes Against Children Task Force announced the pleas entered into before Chief U.S. District Judge Edmund A. Sargus, Jr.
This investigation began when Ohio Bureau of Criminal Investigations Special Agent/FBI Task Force Officer Larry McCoy communicated undercover with Weekley online. From that initial investigation into Weekley, investigators were able to discover the additional defendants.
According to court documents, the defendants made online contact with each other and others who shared, or whom they believed to share, their sexual interest in minors, incest and child pornography.
After making initial contact through Craigslist, Weekley – who pleaded guilty in U.S. District Court today – communicated with each of the other defendants on an ongoing basis through text and various other apps, including Wickr.
Weekley had regular access to a female child (Jane Doe), who was approximately 10 to 11 years old during the offenses detailed. Weekley sexually abused Jane Doe and created images and videos of the molestation, which he shared with others, including some of the co-defendants.
Weekley and Perry discussed sexually abusing Jane Doe together, and made plans for Perry to join Weekley in the sexual abuse of Jane Doe. Perry encouraged Weekley to continue abusing the victim and did eventually sexually abuse the victim together with Weekley.
Likewise, Perkins and Sullivan requested that Weekley bring Jane Doe to meet them for the purpose of sexually abusing Jane Doe, but it is not believed that Perkins or Sullivan actually met with Weekley.
One of the conversations found on Weekley’s phone between him and Sullivan was initiated when Weekley responded to an online classified ad Sullivan posted entitled “I AM LOOKING TO PRIVATELY MEET AN INCEST FAMILY. Mom son brother sister.”
Weekley and Michalski messaged on Craigslist about interests in sexual topics like “family, forced” and “K9 and more.”
Zevely engaged in thousands of communications with numerous other individuals in response to ads placed on Craigslist, including with Weekley. Investigators discovered Zevely sexually abused a different 10-year-old victim who was not Jane Doe. Zevely also engaged in communications about sexually abusing minors with both HSI and FBI undercover task force officers.
In a conversation on Kik messenger, Makowski sent several files containing child pornography to another individual.
Weekley pleaded guilty today to three counts of production of child pornography (15 to 30 years in prison), one count of attempted coercion of a minor (10 years to life in prison) and two counts of distributing child pornography (five to 20 years in prison).
Sullivan pleaded guilty on Tuesday to attempted coercion or enticement of a minor to engage in illegal sexual activity (10 years to life in prison).
Perry pleaded guilty in January 2019 to coercion or enticement of a minor to engage in illegal sexual activity (10 years to life in prison).
Perkins, Zevely and Michalski all pleaded guilty in November 2018. Perkins and Michalski pleaded guilty to receipt of child pornography (five to 20 years in prison), and Zevely pleaded guilty to producing child pornography (15 to 30 years in prison).
Makowski pleaded guilty in February 2019 to distributing child pornography (five to 20 years in prison).
U.S. Attorney Glassman commended the investigation of this case by the FBI Crimes Against Children Task Force, the Franklin County Sheriff’s Office Internet Crimes Against Children Task Force, and Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the cases.
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Sacramento County Man Indicted on Conspiracy, Armed Robbery, and Fraud ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment today against Damian Deleal, 30, of Carmichael, charging him with conspiracy to commit offenses against the United States, armed robbery of a U.S. Mail carrier, possession of a stolen Postal Service key, bank fraud, aggravated identity theft, and possession of stolen U.S. mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2018, Deleal conspired with other individuals to rob a mail carrier of a U.S. Postal Service key that was capable of opening numerous residential mailboxes in Sacramento. Deleal conspired to obtain the key so he and his coconspirators – including Jayce Powell, Brandon Moses, and Loren Patrick – could commit bank fraud and identity theft using bankcards, checks, and other financial instruments stolen from the mail.
On March 9, 2018, in South Sacramento, an unnamed co-conspirator robbed a mail carrier at gunpoint and took a Postal Service key. Although the gun resembled a real firearm, investigators later determined it was a BB gun that Deleal supplied as part of the conspiracy. During the following week, Deleal, Powell, Moses, and Patrick used the key to steal mailed bankcards and checks. They then posed as the victims and attempted to use their bankcards and checks to purchase goods and obtain cash.
Deleal and Powell further conspired to fraudulently claim reward money offered for information relating to the robbery and the stolen Postal Service key. In executing this plan, they planted the stolen key on Moses while he was sleeping in his car and called the U.S. Postal Service to report Moses’ location and inquire about the reward. After receiving this tip, investigators worked quickly to make arrests and learned that Deleal orchestrated the conspiracy and related crimes.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Assistant U.S. Attorney Michelle Rodriguez and Special Assistant U.S. Attorney Robert J. Artuz are prosecuting the case.
Deleal is currently in custody on unrelated charges. Powell, Moses, and Patrick have already pleaded guilty to federal charges in the following related cases in this district: U.S. v. Patrick, 2:18-cr-079-MCE; U.S. v. Powell, 2:18-cr-083-MCE; and U.S. v. Moses, 2:18-cr-090‑MCE.
If convicted of bank fraud, Deleal faces a maximum statutory penalty of 30 years in prison and a $1 million fine. If convicted of armed robbery, he faces a maximum statutory penalty of 25 years in prison and a $1 million fine. If convicted of aggravated identity theft, he faces a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for conspiracy is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rhode Island Man Indicted by Federal Grand Jury for the Kidnapping of Jassy CorreiaRead the Press Release
BOSTON – Louis Coleman III was indicted today by a federal grand jury in Boston for the kidnapping resulting in the death of Jassy Correia.
Coleman, 32, of Providence, R.I., was indicted on one count of kidnapping resulting in death. An arraignment date will be scheduled by the Court. Coleman was arrested on Feb. 28, 2019, in Delaware, charged by complaint in the District of Massachusetts on March 3, and appeared in federal court in Boston on March 11. He has been detained since his arrest.
According to the charging documents, after learning of the disappearance of Correia, law enforcement reviewed surveillance tape from outside of the Venu nightclub, the last place Correia had been seen by her friends, which showed Correia leaving the area and entering a vehicle with a man later identified as Coleman. Surveillance footage from Coleman’s Providence, R.I., apartment building showed Coleman, at about 4:15 a.m. on Sunday, Feb. 24, 2019, parking and exiting the vehicle, and then returning a short time later carrying a blanket. He then walked from the car to the front of the building carrying a body with long hair and clothing consistent with the description of Ms. Correia. Once he entered the building, surveillance video showed Coleman dropping the victim on the floor and dragging her towards the elevator, and subsequently towards his apartment unit. The victim was not moving and her body was limp.
It is alleged that on Feb. 26, 2019, surveillance video from the defendant’s apartment building showed Coleman enter the apartment building with Walmart shopping bags. Law enforcement subsequently obtained video surveillance and a receipt from a Walmart in Providence, R.I., that revealed Coleman had purchased three Tyvek suits, duct tape, two candles, electrical tape, one mask, surgical gloves, two pairs of safety goggles, an odor respirator and CLN release bleach bath.
At approximately 9:58 p.m. on Feb. 27, 2019, Coleman is seen on video surveillance entering the apartment building with what appeared to be a new, large suitcase. At 1:15 a.m., on Feb. 28, 2019, Coleman is seen in the video wheeling the suitcase away from his apartment unit towards the elevator, eventually out of the building and into the parking lot where his vehicle was parked. Coleman appeared to have difficulty lifting the suitcase into the trunk of his car.
Additional surveillance video showed Coleman on several occasions exiting his apartment building with other items, including trash bags, cardboard boxes, a bottle of bleach, a laptop case, a computer tower and a small duffle bag.
Later in the day on Feb. 28, 2019, a search warrant was executed at Coleman’s apartment, where two packages of hooded coveralls and two respirator masks were recovered. A sofa with four large cushions, one of which was missing a cover, was also observed. In a dumpster outside of the apartment complex, white trash bags, a bag containing plastic sheets, men’s jeans with bleach stains and a belt, a white nylon hooded coverall, an empty box of baking soda, clear safety goggles, a respirator mask, duct tape packaging, rubbing alcohol, Walmart bags, used plastic gloves, an empty package from a car air freshener, three empty packages of purifying charcoal and a sponge were recovered.
On the afternoon of Feb. 28, 2019, Coleman’s vehicle was stopped by Delaware authorities on I-95 South near Wilmington, Delaware. Officers ordered Coleman out of the vehicle and asked him if anyone else was in the vehicle with him. It is alleged that Coleman stated words to the effect: “She’s in the trunk.”
Officers discovered the victim’s body in the trunk of Coleman’s vehicle, wrapped in a sofa cushion cover, which was inside of a black trash bag, inside of a large suitcase that matches the suitcase Coleman was observed bringing into his apartment on Feb. 27, 2019. The victim had significant bruising, a bloodied face, was bound with gray duct tape, and was covered in what is believed to be baking soda.
A duffle bag, a pair of new long-handled loppers, plastic garbage bags, clothing, a red plastic gas container, a green butane lighter, black gloves, charcoal air purifiers, air fresheners, tinted safety glasses, plastic Walmart bags, work towels, cloth work-gloves, a new set of DeWalt pliers, a laptop, a computer hard-drive/tower, and disinfectant wipes were also recovered in Coleman’s vehicle.
It is further alleged that photographs of the defendant’s vehicle depict a windshield that is cracked in two locations on the passenger side and a white substance, believed to be baking soda, in the trunk of the vehicle.
Coleman was taken into custody and transported to a Delaware State Police barracks. There, it was noted that Coleman had a large bandage on the right side of his face. When asked about it, he allegedly replied, “It’s from the girl.”
The charge of kidnapping resulting in death provides for a sentence of death or life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Boston Police Commissioner William G. Gross; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Rachael Rollins; Colonel Nathaniel McQueen Jr., Delaware State Police; and Colonel Hugh T. Clements Jr., Chief of Police, Providence Police Department, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the cooperation and assistance of Rhode Island Attorney General Peter F. Neronha; United States Attorney David C. Weiss, District of Delaware; and the Massachusetts State Police. Assistant U.S. Attorneys Kenneth G. Shine and Robert Richardson of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Charged with Firearm and Drug CrimesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Dana Standing Bear, age 40, was indicted on March 19, 2019. He appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the charges. The penalty upon conviction is a minimum of 5 years up to 40 years in federal prison and/or a $5,000,000 fine, a minimum of 4 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Standing Bear knowingly being in possession of two 9mm semi-automatic pistols, as well as methamphetamine in February 2019 at Rapid City. The charges are merely an accusation and Standing Bear is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Standing Bear was detained pending trial. A trial date has not been set.
Physician Sentenced for His Role in Prolific Georgia Pill MillsRead the Press Release
VALDOSTA - The final defendant involved in a multi-city pill mill conspiracy was sentenced to 72 months in prison Wednesday, said U.S. Attorney Charles “Charlie” Peeler. Dr. Vinod Shah, 69, of Salisbury, NC previously pleaded guilty to conspiracy to dispense controlled substances outside the usual course of medical practice and a legitimate medical purpose and was sentenced to prison on April 3, 2019 by the Honorable Hugh Lawson. Dr. Shah will serve three years supervised release. There is no parole in the federal system.
Dr. Shah joins seven other co-defendants who have been sentenced for their roles in operating pill mills at The Wellness Center of Valdosta and The Relief Institute of Columbus, where tens of thousands of prescriptions for highly addictive opioids were dispensed to people and more than $2 million dollars in cash was paid out by patients seeking prescriptions. Dr. Shah was recruited after a long career in medicine and was employed from 2012-2013, first training in Valdosta under co-defendant Dr. William Bacon, 83, of St. Johns, FL. There, he was taught to prescribe “cocktails” of Oxycodone and Alprazolam (commonly known as Xanax). In Columbus, Dr. Shah saw, at most, 45 patients a day, and the clinic stayed open late into the evening to see patients coming in from out of state. The clinics operated on a “cash only” basis. Patients paid $325 in cash for the first visit, $250 for subsequent visits. Almost every patient seen by Dr. Shah had a diagnosis of low back pain and was prescribed large quantities of two different dosages of Oxycodone and Alprazolam. Dr. Shah admitted in his plea agreement that many of the patients he saw were seeking drugs and many had no legitimate need for the prescriptions that were written. Dr. Shah also admitted that he did not adequately examine the patients and deliberately ignored obvious signs that the clinics were operating outside the legitimate practice of medicine. Dr. Shah was paid $1200 a day during his employment.
“There is no excuse for doctors and health care professionals who turn away from their oath to ethically care for sick people and instead prescribe opioids to addicts in return for cash,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District. “The opioid epidemic is a scourge, and is creating serious harm in every pocket of our society. Law enforcement is working to root out those in the medical field illegally profiting from others’ destruction.”
A total of seven co-defendants in this case were sentenced in December 2018. Dr. Bacon was sentenced to 72 months in prison and the forfeiture of over $95,000. Dr. Donatus O. Mbanefo, 65, of Columbus, GA was sentenced to 96 months in prison. Following a two-week trial that began on May 29, 2018, a Valdosta jury found both Dr. Bacon and Dr. Mbanefo guilty of conspiracy to dispense controlled substances outside the usual course of medical practice and a legitimate medical purpose. Dr. Mbanefo was also convicted of two additional counts of unlawful dispensation of controlled substances.
Five co-conspirators previously entered guilty pleas for their involvement in or knowledge and concealment of the conspiracy, and were sentenced in federal court on Thursday, December 6, 2018.
On charges of conspiracy:
1. Carol Neema Biggs a/k/a Carol Johnson, 33, of Hollywood, FL: 60 months imprisonment, plus 36 months consecutive in prison for a total of 96 months imprisonment
2. Junior Alexander Biggs, 40, of Hollywood, FL: 50 months imprisonment, plus 36 months consecutive in prison for a total of 86 months imprisonment
3. Nilaja C. Biggs, 36 of Hialeah, FL: 36 months imprisonment
On charges of knowledge and concealment of the conspiracy:
4. Shavonta Devon Bright, 35 of Miami, FL: 3 years probation
5. Ionie Whorms, 55 of Goose Creek, SC: 3 years probation
Evidence presented during the 2018 trial of Dr. Bacon and Dr. Mbanefo showed that co-conspirators Carol Biggs, Nilija Biggs and Junior Biggs formed the Wellness Center of Valdosta (WCV) in June 2011, located at 2016 E. Adair Street, to operate as a pain clinic. Dr. Bacon began working there in September 2011 and saw patients until the clinic closed. The clinic saw unrealistically large numbers of patients daily, including people from out of state, and accepted no forms of insurance or government benefits but took cash payments only. No diagnostic testing was offered and no alternative treatments outside prescribing large quantities of a “cocktail” of pain medications and other controlled substances were offered to patients. The “cocktail” generally included such highly addictive controlled substances as Oxycodone and Xanax, but also included Hydromorphone, Hydrocodone, Soma, Valium and Ambien. During the approximately 27 months during which Dr. Bacon worked at the Wellness Center of Valdosta, he wrote more than 29,000 prescriptions for controlled substances.
In June 2012, Carol and Junior Biggs opened another pain clinic in Columbus known as the Relief Institute of Columbus. The Relief Institute of Columbus operated in the same fashion as the Wellness Center of Valdosta by unlawfully dispensing controlled substances. Dr. Mbanefo saw patients at the Relief Institute between mid-March 2013 and mid-June 2013. During that three month period of time, Dr. Mbanefo wrote more than 2,900 prescriptions for controlled substances, including prescribing large quantities of Oxycodone and Xanax to an undercover agent, who had no legitimate medical issues. The doctors at both clinics were paid $1200 to $1400 per day to see patients, with a bonus for Dr. Bacon when he saw more than 40 patients in a single day. During the operation of the two clinics, patients made cash payments of more than $2 million.
The case was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation and Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Robert D. McCullers and K. Alan Dasher prosecuted the case for the United States.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Oshkosh Couple Indicted on Federal Firearm ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on April 2, 2019, a federal grand jury issued an indictment against Scott E. Billington (age: 28) and Kody E. Gurske (age: 23) both of Oshkosh, Wisconsin.
The indictment alleges that Billington and Gurske possessed firearms in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A). The indictment also alleges that Gurske sold or disposed of a firearm to a person prohibited by law from possessing a firearm in violation of Title 18, United States Code, Section 922(d)(9), and that Billington possessed firearms after a conviction for a crime of domestic violence contrary to Title 18, United States Code, Section 922(g)(9).
If convicted of possessing a firearm in furtherance of a drug trafficking crime, each faces a mandatory 5 year prison sentence and up to a lifetime of imprisonment. Billington and Gurske’s other charges carry a maximum penalty of up to ten years imprisonment and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oshkosh Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Opelika, Alabama Woman Pleads Guilty to Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Shara Tyesha Cumins, age 29, of Opelika, Alabama, entered a guilty plea to Possession With Intent To Distribute Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D) and Title 18, United States Code, Section 2, punishable by not more than 5 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleges that on or about December 22, 2018, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute less than 50 kilograms of marijuana, a Schedule I controlled substance.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Op-Ed from the U.S. Attorney re: National Crime Victims’ Rights Week April 7-13, 2019Read the Press Release
It was forty-five years ago. I still think about it. I think about how helpless I was when the three thugs on a city bus robbed me of my valuables at knifepoint as I was coming home from school. My experience pales in comparison to what so many crime victims deal with on a day-to-day basis. But, my experience allows me to empathize to a much greater degree than I would otherwise be able to do. Each year the Department of Justice and United States Attorneys’ offices—including mine—observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf.
Our office has worked with hundreds of victims over the past year. And we have in every instance worked to get them justice. Victims of fraud, victims of sexual exploitation, victims of the opioid epidemic and elder victims have all exhibited the courage to come forward and describe their often heart-wrenching experiences. Sometimes the pain associated with the crime has to be relived again and again as the court proceedings are concluded. It is painful for them—every single time. But, without their courage we could not do our jobs of prosecuting the perpetrators of the crimes and advocate appropriate punishments.
Our prosecutions have led to the removal of hundreds of pounds of dangerous drugs, the prosecution of several adults who sexually exploited children and doctors who have monetized their efforts to keep their patients addicted to opioids. We have also spent many hours in the community educating children and adults about the dangers of drugs, addiction, social media and internet schemes.
Our attorneys and the law enforcement community continue to pursue the fraudsters, drug dealers, exploiters of children and the elderly alike. But, our work would be impossible without the courageous victims. Hopefully, their efforts will encourage the many victims who are too afraid to come forward or feel foolish that they were taken advantage of. To those victims, I say, I understand, but we want to help you and we need your help. It is why we do what we do, and we are proud to honor all crime victims this month.
-U.S. Attorney Bill Powell, the Northern District of West Virginia
Ontario Woman Pleads Guilty for Her Role in Financial Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sheila Offor, 41, of Scarborough, Ontario, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that between July 2005 and May 2011, the defendant and others conspired to defraud individuals seeking loans and to obtain money from these individuals seeking loans.In furtherance of the scheme, a number of individuals established websites for fictitious financial services companies offering to arrange loans to U.S. residents with credit problems. Applicants provided their names, phone numbers, state of residence, requested loan amount, and approximate credit scores. Applicants were then contacted by persons posing as company representatives and told that a lender would be contacted for approval. When informed that a loan was arranged, applicants were instructed to sign and return a loan agreement, provide bank account information, and pay an “insurance deposit” for the lender to process the loan. Applicants were provided wire instructions for the lender’s “insurance deposit,” including the name of the company representative (payee), the amount, date, and Western Union location.
Offor served as a payee in this scheme and traveled from Canada to the United States, picked up wired funds, and transported them back to Canada. The monies were then delivered to other individuals who were managing the scheme. Applicants never received the loans, but they were often coerced into making multiple deposits under various pretexts.
In total, the defendant received $134,172.60 in fraudulent “insurance deposits” from 77 different victims.
Today’s plea is the culmination of an investigation on the part of Special Agents of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; U.S. Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; the Canada Border Services Agency; and the Federal Trade Commission.
Sentencing is scheduled for July 24, 2019, at 1:00 p.m. before Judge Wolford.
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North Pittsburgh Man Sentenced to Prison for Selling Drug ParaphernaliaRead the Press Release
PITTSBURGH - A resident of Glenshaw, Pennsylvania, has been sentenced in federal court to two years of incarceration and three years of supervised release on his convictions for criminal contempt and selling drug paraphernalia, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Mayank Mishra, 38. Judge Bissoon also ordered the sentence to be served consecutively to a 12-year sentence imposed previously on Mishra for conspiring to distribute more than a kilogram of heroin.
According to information presented to the court, Mayank Mishra and other members of his family operated stores that sold drug paraphernalia, including diluents used to manufacture heroin and the glassine bags in which heroin is typically sold. In February 2013, federal agents executed search warrants at the business and home of Mishra, and those searches revealed that Mishra was selling drug paraphernalia. He was released on conditions of bond, which, among other things, precluded him from violating any federal or state law.
Subsequent to his release, law enforcement received information that Mayank Mishra was continuing to sell cutting agents and glassine bags. Based on that information, law enforcement used a confidential informant to purchase cutting agents and glassine bags from Mayank Mishra, and the confidential informant successfully recorded the transaction. The confidential informant explicitly asked for "cut" and "bags", and Mayank Mishra provided a material typically used to dilute heroin and the bags typically used to store and sell heroin. Based on that information, law enforcement obtained another set of search warrants for Mayank Mishra’s business and home, where law enforcement found more cutting agents, glassine bags, marijuana paraphernalia, and $86,000 in cash. Law enforcement arrested Mayank Mishra a second time, and this time the Court did not release him on bond.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises
United States Attorney Brady commended the Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Mishra.
Newark Man Convicted of Possession of Heroin and FirearmRead the Press Release
NEWARK, N.J. – A Newark man previously convicted of four felonies in state court and a federal drug distribution crime was convicted by a federal jury today of possession with the intent to distribute heroin, possession of a handgun while committing a drug crime, and being a convicted felon in possession of a handgun, U.S. Attorney Craig Carpenito announced.
Jihad Garrett, 35, was convicted after a four-day trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated for two and a half hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On Feb. 23, 2018, Newark police officers saw Garrett in a vehicle that was similar to a vehicle wanted in a series of carjacking and shooting incidents over the previous month. When the police officers approached the car, Garrett told them, among other things, that he also was a police officer. While talking with Garrett, the police officers saw that Garrett had over $2,500 in cash rolled up in his breast pockets. After a canine unit indicated that there were drugs in the car, the car was towed and the police obtained a search warrant to conduct a further search of the car. The police found over 500 individual doses of heroin packaged for street-level distribution and a .40 caliber handgun in the front seat area of the car.
Garrett had previously been convicted of four drug felonies in Essex and Union counties. In 2011, Garrett was sentenced to 74 months in federal prison after being convicted for distribution of heroin.
The defendant is facing a maximum potential penalty of life in prison and a fine of up to $250,000. Sentencing is scheduled for Aug. 15, 2019.
U.S. Attorney Carpenito credited law enforcement officers of the Newark Police Department, under the leadership of Public Safety Director Anthony Ambrose; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie Patterson; and the Essex County Sheriff’s Department, under the direction of Sheriff Armando Fontoura, with the investigation leading to today’s conviction.
The government was represented at trial by Senior Trial Counsel Robert Frazer and Assistant U.S. Attorney Desiree Latzer of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
New York Man Sentenced to 130 Months for Crack, Heroin and Fentanyl TraffickingRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Frankie Dejesus, 29, of Rochester, New York, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 130 months in prison and three years of supervised release for conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Dejesus conspired with others to acquire heroin, fentanyl and crack in Rochester and to distribute it from at least 12 residences in Central Maine. The defendant was sent to Central Maine to distribute the drugs while residing with several Central Maine residents who were paid in heroin and crack for their participation.
On June 26, 2016, Dejesus exchanged gunfire with Reginald McBride in the parking lot of the Walmart in Augusta, Maine. In imposing sentence, Judge Woodcock recounted the drug-related backdrop leading up to the “wild west shootout” between Dejesus and McBride.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta, Maine Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New York City Man Sentenced to 135 Months for Drug DistributionRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ambrose Wan, a/k/a “Ambrose Won,” a/k/a “Bruno,” 34, of New York, New York, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 135 months in prison and eight years of supervised release for conspiracy to distribute heroin, fentanyl, cocaine and cocaine base, commonly known as “crack” and possession with the intent to distribute cocaine, crack and heroin, and possession with the intent to distribute fentanyl, heroin and cocaine.
According to court records, between July and September 2017 Wan conspired with others to distribute the drugs in Central Maine. The drugs were obtained from sources in New York and distributed through a network of dealers in Central Maine. On September 6, 2017 and again on September 28, 2017, the Waterville Police Department recovered drugs from two separate hotel rooms in the city. The drugs were intended for distribution by Wan and others.
In imposing sentence, Judge Woodcock observed that Wan had been a “professional drug dealer” for most of his adult life.
The case was investigated by the Waterville Police Department and the U.S. Drug Enforcement Administration, with the assistance of the Maine Drug Enforcement Agency. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Man Charged with Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – JASON PICK, age 38, a resident of New Orleans, Louisiana, was charged yesterday in a one-count bill of information for wire fraud announced U.S. Attorney Peter G. Strasser.
According to court documents, PICK was employed as an accountant for Company A between August 2016 and June 2018. Part of PICK’s duties was handling the credit card accounts of Company A. Without authorization, PICK used Company A’s credit cards for his own personal expenses. In total, PICK stole approximately $129,741.40 from Company A.
If convicted, PICK faces 20 years of imprisonment followed by up to three (3) years of supervised release and a fine up to $250,000.
U.S. Attorney Strasser reiterated that the bill of information is merely a charge, and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Secret Service in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor, General Crimes.
New Mexico Man Sentenced to Four Years in Prison for Role in Multi-State Dog Fighting ConspiracyRead the Press Release
Robert Arellano, 65, of Albuquerque, New Mexico, was sentenced today in federal court in Trenton, New Jersey, to a total of four years in prison for his role in a multi-state dog fighting conspiracy. Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Craig Carpenito of the District of New Jersey made the announcement.
A jury previously convicted Arellano of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and two felony counts of selling, transporting, and delivering dogs intended for use in an animal fighting venture. Arellano also pleaded guilty to three felony counts of possessing a dog intended for use in an animal fighting venture in a related federal case in New Mexico that was consolidated with his New Jersey case for sentencing. Judge Peter G. Sheridan presided over the trial and imposed the sentence, which includes three years’ supervised release following Arellano’s term of imprisonment.
Three other defendants were convicted as part of the same jury trial; two defendants will be sentenced on May 29, 2019, and the third defendant will be sentenced on May 30, 2019.
“Animal fighting for sport is not an activity a civilized country tolerates,” said Assistant Attorney General Clark. “Our Division will continue to pursue and prosecute illegal animal fighting ventures across the country.”
“Dog fighting is vicious and cruel. Beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “As today’s sentencing shows, if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“Dogfighting for entertainment and profit is the organized and heinous business of breeding and conditioning dogs to fight each other until one dog kills the other,” said U.S. Attorney John C. Anderson for the District of New Mexico. “Today’s sentencing brings to an end Mr. Arellano’s 30 years in this unconscionable business, and hopefully will deter others who seek to profit from forcing animals fight to the death. In New Mexico, we will continue to seek out and punish those who exploit and abuse animals.”
According to trial evidence and court documents filed in connection with the cases, the defendant and his associates regularly fought dogs – including to the death – and repeatedly trafficked in dogs with other dog fighters across several states for the purpose of dog fighting. Arellano and the other defendants also maintained significant numbers of fighting dogs and substantial dog fighting equipment, such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. A defendant who pleaded guilty to charges in a related case admitted that his dog died in his car on the way home after a dog fight. Evidence at trial showed that dog deaths from fighting were a common outcome. Another defendant convicted at trial attempted to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects.
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“Dog fighting, far from being any kind of ‘sport’, shows a complete disregard for animals and is both despicable and cruel,” said Brian Michael, Special Agent in Charge, Homeland Security Investigations, Newark. “HSI will continue to cooperate with our local, state and national partners, as happened here, to investigate such crimes so the perpetrators can be prosecuted to the fullest extent of the law.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, eleven defendants from five states have been convicted and sentenced to a total of 164 months in prison as part of Operation Grand Champion. Additionally, 113 dogs have been rescued, and either surrendered or forfeited to the government. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Kathleen O’Leary. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.