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Tuesday 19 February 2019
Upshur County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cameron Dixon, of Buckhannon, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Dixon, age 26, pled guilty to one count of “Possession of a Stolen Firearm.” Dixon admitted to having a stolen .45 caliber pistol in September 2017 in Harrison County.
Dixon faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Joins False Claims Act Lawsuit Against Arriva Medical, LLC and Alere Inc.Read the Press Release
NASHVILLE, Tenn. – February 19, 2019 - The United States has intervened in a False Claims Act case alleging that Arriva Medical, LLC (Arriva) and its parent Alere Inc. (Alere) submitted or caused false claims to the Medicare program for medically unnecessary glucometers and paid kickbacks to Medicare beneficiaries in the form of free glucometers and copayment waivers, the Justice Department announced today. Additionally, the government has informed the court that it is adding Ted Albin, a reimbursement consultant for Arriva, as an additional defendant in the action.
Arriva is a mail-order diabetic testing supply company based in Coral Springs, Florida, which, at one point, had operations in Antioch, Tennessee. Alere is a large medical device company based in Waltham, Massachusetts, which acquired Arriva in 2011. Both Arriva and Alere were acquired by Abbott Laboratories in September 2017, after the alleged conduct occurred. In October 2016, the Centers for Medicare & Medicaid Services (CMS) revoked Arriva’s billing number for billing Medicare for durable medical equipment that was shipped more than fourteen days after a beneficiary’s death. Arriva subsequently stopped operating in December 2017.
The False Claims Act lawsuit alleges, among other things, that Arriva, with the oversight and approval of Alere, offered “free upgrades” of glucometers to Medicare beneficiaries. Because Arriva required all new customers to receive a new meter, regardless of whether they already had a functioning meter, Arriva allegedly routinely submitted false claims to Medicare for medically unnecessary meters. Arriva also allegedly made no meaningful effort to collect copayments from beneficiaries for the meters or diabetic testing supplies subsequently purchased from Arriva for use in connection with the meters. The waiver of patient copays or provision of other benefits to induce patients to purchase a company’s items or services is prohibited by the Anti-Kickback Statute.
“When medical equipment companies scheme to enrich themselves by unlawfully increasing the sales volume of durable medical equipment, they place our federal health care programs in jeopardy,” said U.S. Attorney Cochran. “The restrictions imposed by federal statutes exist to prevent improper practices, including providing unnecessary medical equipment and billing Medicare for it. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“We will seek to hold accountable health care providers that attempt to profit by providing illegal inducements and by billing for unnecessary items,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to take appropriate legal measures to protect Medicare funds and to ensure a fiscally sound program that can serve all of our senior citizens.”
“Medicare rules bar payment for medically unnecessary services and supplies,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Such schemes only benefit suppliers billing for products that patients neither want nor need.”
The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating these cases, as it has done here in part. A defendant who violates the act is subject to three times the government’s losses, plus applicable penalties.
This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Middle District of Tennessee, with assistance from the Office of Inspector General of the Department of Health and Human Services. The case is captioned United States ex rel. Goodman v. Arriva Medical LLC; Alere, Inc., Case No. 3:13-cv-00760 (M.D. Tenn.).
The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
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United States Joins False Claims Act Lawsuit Against Arriva Medical LLC and Alere Inc.Read the Press Release
The United States has intervened in a False Claims Act case alleging that Arriva Medical LLC (Arriva) and its parent Alere Inc. (Alere) submitted or caused false claims to the Medicare program for medically unnecessary glucometers and paid kickbacks to Medicare beneficiaries in the form of free glucometers and copayment waivers, the Justice Department announced today. Additionally, the government has informed the court that it is adding Ted Albin, a reimbursement consultant for Arriva, as an additional defendant in the action.
Arriva is a mail-order diabetic testing supply company based in Coral Springs, Florida, which, at one point, had operations in Antioch, Tennessee. Alere is a large medical device company based in Waltham, Massachusetts, which acquired Arriva in 2011. Both Arriva and Alere were acquired by Abbott Laboratories in September 2017, after the alleged conduct occurred. In October 2016, the Centers for Medicare & Medicaid Services (CMS) revoked Arriva’s billing number for billing Medicare for durable medical equipment that was shipped more than fourteen days after a beneficiary’s death. Arriva subsequently stopped operating in December 2017.
The False Claims Act lawsuit alleges, among other things, that Arriva, with the oversight and approval of Alere, offered “free upgrades” of glucometers to Medicare beneficiaries. Because Arriva required all new customers to receive a new meter, regardless of whether they already had a functioning meter, Arriva allegedly routinely submitted false claims to Medicare for medically unnecessary meters. Arriva also allegedly made no meaningful effort to collect copayments from beneficiaries for the meters or diabetic testing supplies subsequently purchased from Arriva for use in connection with the meters. The waiver of patient copays or provision of other benefits to induce patients to purchase a company’s items or services is prohibited by the Anti-Kickback Statute.
“We will seek to hold accountable health care providers that attempt to profit by providing illegal inducements and by billing for unnecessary items,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to take appropriate legal measures to protect Medicare funds and to ensure a fiscally sound program that can serve all of our senior citizens.”
“When medical equipment companies scheme to enrich themselves by unlawfully increasing the sales volume of durable medical equipment, they place our federal health care programs in jeopardy,” said U.S. Attorney Cochran. “The restrictions imposed by federal statutes exist to prevent improper practices, including providing unnecessary medical equipment and billing Medicare for it. We will continue to enforce the laws that protect the integrity of federal health care programs.”
“Medicare rules bar payment for medically unnecessary services and supplies,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Such schemes only benefit suppliers billing for products that patients neither want nor need.”
The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating these cases, as it has done here in part. A defendant who violates the act is subject to three times the government’s losses, plus applicable penalties.
This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Middle District of Tennessee, with assistance from the Office of Inspector General of the Department of Health and Human Services. The case is captioned United States ex rel. Goodman v. Arriva Medical LLC; Alere, Inc., Case No. 3:13-cv-00760 (M.D. Tenn.).
The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
UC Santa Cruz Student Indicted for Selling Drugs Through Software ApplicationRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Collin Riley Howard, charging him with distribution and possession with intent to distribute cocaine and methamphetamine, announced United States Attorney David L. Anderson and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. Howard made his initial appearance this afternoon before U.S. Magistrate Judge Nathanael Cousins.
According to the indictment, filed Thursday, between November 7, 2018, and November 28, 2018, Howard, 18, of Sunnyvale, possessed and distributed cocaine and methamphetamine.
An affidavit filed by a Homeland Security Investigations agent in connection with a search warrant alleges that Howard developed the “Banana Plug” application, which was available on the Apple App Store. The Banana Plug App offered for sale contraband, including cocaine, “Molly,” and “Shrooms.” The app also invited customers to make special requests. Posters advertising the application had been hung up around the UC Santa Cruz campus. Upon discovering the posters and the application, a UC Santa Cruz police officer, in coordination with HSI, used the application to request a purchase of marijuana and cocaine and then communicated with Howard via Snapchat to set up the purchase. An undercover HSI agent made that purchase and separately continued to communicate with Howard on Snapchat to set up three additional purchases of controlled substances. The third and fourth purchases were for more than 5 grams of methamphetamine. At the fourth meeting, UC Santa Cruz police officers arrested Howard before any payment was made.
The indictment charges Howard with one count of distribution and possession with intent to distribute cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); one count of distribution and possession with intent to distribute methamphetamine, in violation of in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); one count of distribution and possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii); and one count of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii).
Howard was arrested on the federal charges on February 15, 2019, and was released after today’s initial appearance. Magistrate Judge Cousins scheduled Howard’s next court appearance for February 22, 2019, at 1:30 for a bail review hearing.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years prison time, and a fine of $1,000,000 for each of the two violations of 21 U.S.C. § 841(a)(1) and 841(b)(1)(C). He faces a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, and a fine of $5,000,000 for each of two violations of 21 U.S.C. § 841(a)(1) and 841(b)(1)(B)(viii). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by Homeland Security Investigations and the University of California Santa Cruz Police Department.
U.S. Trustee Program Reaches $15 million Settlement with McKinsey & Company to Remedy Inadequate Disclosures in Bankruptcy CasesRead the Press Release
The Department of Justice’s U.S. Trustee Program (USTP) has entered into a multi-district settlement agreement with global consulting firm McKinsey & Company, Inc. (McKinsey), resolving disputes over the adequacy of McKinsey’s disclosures of connections in Chapter 11 bankruptcy cases. Under the Bankruptcy Code and Rules, the retention and payment of a professional firm by a debtor company in bankruptcy is contingent upon approval by the bankruptcy court after the firm discloses all of its connections to the debtor, creditors, and other parties. These strict disclosure requirements allow the court, USTP, and parties involved in the case to identify any conflicts of interest that may taint the professional’s advice and favor one interested party over another.
The USTP alleged that McKinsey made insufficient disclosures about its clients and investments in certain entities that were connected with the debtors that employed McKinsey to provide financial advice on their respective bankruptcy reorganizations. Specifically, the USTP alleged in court filings that McKinsey failed to identify clients who were connected with the debtors it represented and lacked candor regarding its investments in entities that could create a conflict of interest.
“This settlement ensures that McKinsey is held accountable for its conduct,” said USTP Director Cliff White. “Transparency is the linchpin of the bankruptcy system and professionals employed in bankruptcy cases must be free of conflicts of interest.. McKinsey failed to satisfy its obligations under bankruptcy law and demonstrated a lack of candor with the court and USTP. This settlement ensures that McKinsey is held to the same standards applicable to all professionals who participate in bankruptcy cases. If this conduct is repeated in future cases, we will seek even more far-reaching remedies.”
Settlement Terms
Under the terms of the settlement, McKinsey agrees to pay $15 million in three bankruptcy cases to remedy inadequate disclosures of connections and to make additional disclosures. The payment will be distributed to the creditors and other parties in accordance with the reorganization plans approved by the courts or other applicable law. This is one of the highest repayments made by a bankruptcy professional for alleged non-compliance with disclosure rules.
The USTP has agreed not to bring additional actions in these and other cases based on McKinsey’s past disclosures. If facts later show that those disclosures contained material misrepresentations or omissions that would have rendered McKinsey not disinterested or otherwise disqualified from retention, then the USTP is free to seek disqualification from employment, disgorgement of fees, and other remedies in the settled cases. While the agreement resolves disputes with the USTP, it does not impact the rights of any parties or government agencies not participating in the settlement. A term sheet for the proposed settlement has been filed in three U.S. Bankruptcy Courts, where the settlement will be subject to the courts’ approval. The cases are captioned Alpha Natural Resources, Case No. 15-33896 (Bankr. E.D. Va.), Westmoreland Coal, Case No. 18-35672 (Bankr. S.D. Tex.), and SunEdison, Case No. 16-10992 (Bankr. S.D.N.Y).
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.
Two Texas men sentenced to more than five years for trafficking in enough fentanyl to kill millionsRead the Press Release
SHREVEPORT, La. – Two Texas men were sentenced to 63 months in prison today for trafficking more than 10 kilograms fentanyl through Louisiana, U.S. Attorney David C. Joseph announced.
Felipe Rodriguez, 22, of McAllen, Texas, and Brandon Montoya, 24, of Kaufman, Texas, were sentenced by Elizabeth E. Foote for possession with intent to distribute fentanyl. They were also sentenced to five years of supervised release.
According to the guilty plea, a Louisiana State Police trooper stopped a vehicle on May 10, 2018 traveling on Interstate-20 eastbound in which Felipe Rodriguez was the driver and Brandon Montoya was the passenger. During a search of the vehicle, 10 one-kilogram packages containing pure fentanyl and a fentanyl derivative were found. Rodriguez and Montoya told agents they were approached in Mexico about work, asked to drive to California to obtain the drugs and then take the drugs to Atlanta, Georgia, where they would be paid for the delivery. The defendants understood that the work they were asked to do meant transporting the deadly narcotics. Both defendants pleaded guilty on September 13, 2018.
“The seizure of these drugs and the prosecution of these defendants is part of the Department of Justice’s ongoing fight against fentanyl and other deadly opioids,” Joseph stated. “These drugs are now the leading cause of accidental death in the United States -- more than even car accidents. This case alone involved enough fentanyl to kill every person in the state of Louisiana. I want to thank the dedicated law enforcement agents and prosecutor for the arrest and conviction of these defendants.”
Fentanyl is a synthetic opioid that is 80 to 100 times stronger than morphine. Pharmaceutical fentanyl was developed for pain management treatment of cancer patients, applied in a patch on the skin. Because of its powerful opioid properties, fentanyl is also diverted for abuse. Fentanyl is added to heroin to increase its potency or be disguised as highly potent heroin. Many users believe that they are purchasing heroin and actually don’t know that they are purchasing fentanyl, which often results in overdose deaths. Clandestinely-produced fentanyl is primarily manufactured in Mexico. For more information about fentanyl, visit www.dea.gov/factsheets/fentanyl.
The DEA, Homeland Security Investigations and Louisiana State Police investigated the case. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Twelve Individuals Indicted in February 2019 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the February 2019 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
RAUL ALEXIS GAMEZ-GARCIA, age 25, of Hermosillo, Senora, Mexico
DIANA LAURA GAMEZ-GARCIA, age 20, of Hermosillo, Senora, MexicoPossession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about January 7, 2019, within the Eastern District of Oklahoma, the defendants, RAUL ALEXIS GAMEZ-GARCIA and DIANA LAURA GAMEZ-GARCIA, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
Assistant United States Attorney Kristin Harrington
CARLOS FRANCISCO LAINEZ, age 34, of Las Vegas, Nevada
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about February 3, 2019, within the Eastern District of Oklahoma, the defendant, CARLOS FRANCISCO LAINEZ, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The charges arose from an investigation by the Sequoyah County Sheriff’s Office and the Drug Enforcement Administration.
Assistant United States Attorney Kristin Harrington
DUANE ALLYN BUNDY, age 40, of McAlester, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of A Firearm In Furtherance Of A Drug Trafficking CrimeThe Indictment alleges that on or about January 30, 2019, in the Eastern District of Oklahoma, the defendant, DUANE ALLYN BUNDY, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both.
The Indictment further alleges that on or about January 30, 2019, in the Eastern District of Oklahoma, the defendant, DUANE ALLYN BUNDY, did knowingly possess a firearm, to wit: one (1) Taurus, Model TCP, .380 caliber, semi-automatic pistol, serial number 79704B, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years imprisonment to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00 or both.
The charges arose from an investigation by the McAlester Police Department, the Oklahoma Bureau of Narcotics and Dangerous Drugs Control, and the Drug Enforcement Administration.
Special Assistant United States Attorney Courtney Jordan
DARRELL DEWAYNE ROBERTS Jr., age 31, of Alma, Arkansas
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about December 31, 2018, within the Eastern District of Oklahoma, defendant, DARRELL DEWAYNE ROBERTS Jr., did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The charges arose from an investigation by the Roland Police Department and the Drug Enforcement Administration.
Assistant United States Attorney Edward Snow
JOSE SEBASTIAN-BELLO, age 51, of Mexico
a/k/a Victor Antonio Martinez
a/k/a Anthony Casen
a/k/a Victor Martinez-Gonzalez
a/k/a Jose Antonio-Ignacio
a/k/a Lorenzo Castro Romero
a/k/a Mario Diago DiegoIllegal Reentry Of Previously Removed Alien
The Indictment alleges that on or about October 1, 2018, in the Eastern District of Oklahoma, the defendant, JOSE SEBASTIAN-BELLO, a/k/a Victor Antonio Martinez, a/k/a Anthony Casen, a/k/a Victor Martinez-Gonzalez, a/k/a Jose Antonio-Ignacio, a/k/a Lorenzo Castro Romero, a/k/a Mario Diago Diego, an alien, was found to be knowingly in the United States after having been removed from the United States on or about June 10, 2015, at or near Laredo, Texas, and not having obtained the express consent of the Attorney General of the United States or the Secretary of Homeland Security to reapply for admission into the United States in violation of Title 8, United States Code, Sections 1326(a) and 1326(b), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Ardmore Police Department and U.S. Immigration and Customs Enforcement.
First Assistant United States Attorney Christopher Wilson
RHETT STEVEN RAGLAND, age 23, of Ada, Oklahoma
Felon In Possession Of Ammunition
The Indictment alleges that on or about October 30, 2018, in the Eastern District of Oklahoma the defendant, RHETT STEVEN RAGLAND, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition, to-wit: Seven (7) rounds of Giulio, Fiocchi and Lecco brand 9mm Luger caliber ammunition, which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Pontotoc County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Sarah McAmis
MIKE DOUGLAS NOLAN, age 59, of Baton Rouge, Louisiana
Wire Fraud
The Superseding Indictment alleges that from in or about June 2011, and continuing until in or about May 2012, the defendant, MIKE DOUGLAS NOLAN, devised and intended to devise, executed and attempted to execute, a scheme to obtain money by means of materially false and fraudulent pretenses, representations and promises, in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Rob Wallace
LIEUTENANT SKYLARE HOLSTICK, age 36, of Birmingham, Alabama
SHARA TYESHA CUMINS, age 29, of Opelika, Alabama
a/k/a Shara Tyesha HolstickPossession With Intent To Distribute Marijuana
The Indictment alleges that on or about December 22, 2018, within the Eastern District of Oklahoma, the defendants, LIEUTENANT SKYLARE HOLSTICK and SHARA TYESHA CUMINS, aka SHARA TYESHA HOLSTICK, did knowingly and intentionally possess with intent to distribute less than 50 kilograms of marijuana, a Schedule I controlled substance, 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, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
Assistant United States Attorney Dean Burris
GARY DON HICKS, Sr., age 51, of McAlester, Oklahoma
Felon In Possession Of Firearm (2 Counts)
The Indictment alleges that on or about January 8, 2019, within the Eastern District of Oklahoma, the defendant, GARY DON HICKS Sr., having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Winchester, Model 290, .22 caliber semi-automatic rifle, serial number 401103, which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about January 9, 2019, within the Eastern District of Oklahoma, the defendant, GARY DON HICKS Sr., having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Fratelli Tanfoglio, Model E1, .22 caliber revolver, serial number E800622, which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Dean Burris
TEION ENLYN VANDAMM, age 43, of Frederick, Maryland
Possession With Intent To Distribute Cocaine
The Indictment alleges that on or about December 20, 2018, within the Eastern District of Oklahoma, the defendant, TEION ENLYN VANDAMM, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
Assistant United States Attorney Jarrod Leaman
Tulsa Doctor Will Pay $84,666 for Allegedly Engaging in an Illegal Kickback SchemeRead the Press Release
TULSA, Okla. –A Tulsa doctor has agreed to pay the government $84,666.42 for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.
The U.S. Attorney’s Office in the Northern District of Oklahoma has entered into a settlement agreement with Brandon Claflin, 42, a licensed doctor of osteopathic medicine, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding.
“Our Affirmative Civil Enforcement attorneys continue to prioritize these cases in an effort to recover illegally obtained funds that served to line the pockets of the corrupt,” said U.S. Attorney Trent Shores. “We are committed to ensuring that federal health care dollars are spent judiciously and in accordance with the law. Our diligence in this area sends a clear signal that abuse of federal health care programs will not be tolerated.”
Beginning in 2013, Dr. Claflin prescribed these pain creams for his patients, facilitating the sale and distribution of the creams. As compensation for his services, OK Compounding, paid Dr. Claflin what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Dr. Claflin received from the company were, in actuality, “kickbacks.” Because some of his patients were insured by TRICARE and the Office of Workers’ Compensation Programs of the United States Department of Labor, the kickbacks were in violation of the False Claims Act. It is illegal to pay or receive “kickbacks” in conjunction with federal healthcare insurance.
Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
The agreement resolves allegations that Dr. Claflin had an illegal financial relationship with OK Compounding, concerning pain creams from 2013 through 2014.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle and is the product of a collaborative investigation by the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.
Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Three Marshall County residents and an Ohio man admit to drug distribution chargesRead the Press Release
WHEELING, WEST VIRGINIA – Four people have admitted to drug distribution charges, United States Attorney Bill Powell announced.
John Crow, of Moundsville, West Virginia, Jamie L. Moore, of Moundsville, West Virginia, and James Wood, of Moundsville, each pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” Crow, age 49, Moore, age 47, and Wood, age 45, admitted to conspiring with others to distribute methamphetamine in 2017 and 2018 in Marshall County.
Cornell D. Wallace, of Canton, Ohio, pled guilty to one count of “Distribution of Methamphetamine.” Wallace, age 28, admitted to selling methamphetamine in August 2018 in Marshall County.
Crow, Moore, Wood, and Wallace each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Three Jacksonville Tax Return Preparers Indicted on Federal Tax Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of indictments charging Jacksonville residents Paul Berkins Moise, Joanna Arlean Tukes, and Schquan Antionette Shanks with aiding and assisting others with the filing of false tax returns. The indictments, which are unrelated, allege that each of the individuals owned and operated a tax preparation business in Jacksonville.
Moise is charged with 22 counts of filing false tax returns, Tukes is charged with 25 counts of filing false tax returns, and Shanks is charged in 21 counts of filing false tax returns and 3 counts of filing false personal income tax returns. Each count carries a maximum penalty of three years’ imprisonment. The United States also seeks restitution for the tax loss arising out of the alleged criminal conduct.
According to Moise’s indictment, between February 2013 and March 2017, Moise defrauded the IRS by filing returns for taxpayers in which he falsely claimed, among other things, that the taxpayers had incurred business expenses and unreimbursed employee expenses, had paid state and local sales taxes in an inflated amount, and had made gifts to charity in an inflated amount. The indictment specifically alleges the filing of 22 false returns on behalf of eight taxpayers for the tax years 2012 through 2016.
According to Tukes’s indictment, between February 2013 and March, 2017, Tukes defrauded the IRS by filing returns for taxpayers in which she falsely claimed, among other things, that the taxpayers had incurred business expenses and unreimbursed employee expenses, had incurred medical and dental expenses in an inflated amount, had paid state and local sales taxes in an inflated amount, and had made gifts to charity in an inflated amount. The indictment specifically alleges the filing of 25 false returns on behalf of nine taxpayers for the tax years 2012 through 2016. The indictment also alleges that Tukes significantly underreported the income she made from her tax preparation business, alleging that she made approximately $219,686 in 2013 but reported only $14,600, that she made approximately $294,049 in 2014 but reported only $10,500, and that she made approximately $465,855 in 2015 but reported only $50,540.
According to Shanks’s indictment, between February 2015, and February 2018, Shanks defrauded the IRS by filing returns for taxpayers in which she falsely claimed, among other things, that the taxpayers had incurred business expenses and had dependents for whom they could claim an exemption. The indictment specifically alleges the filing of 21 false returns on behalf of eight taxpayers for the tax years 2014 through 2017.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Internal Revenue Service Criminal Investigation. They will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Three Cincinnati Men Charged in Narcotics ConspiracyRead the Press Release
CINCINNATI – A federal grand jury has charged three Cincinnati men in a narcotics conspiracy punishable by at least 10 years up to life in prison in an indictment returned here February 6 and unsealed today.
Derek Ragan (Duke), 49, Anthony Sanderson (Pea Head), 63, and Lawrence Bell (LB), 66, are charged with conspiring to collectively distribute more than 400 grams of fentanyl.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Cincinnati Police Chief Eliot K. Isaac announced the charges, which followed the extensive investigation by the FBI’s Safe Streets Task Force.
According to the indictment, fentanyl and other drugs were brought into the Cincinnati area where they were further processed, cut, combined, packaged and stored prior to distribution. The co-conspirators allegedly used “Duke’s Place” on Oliver Street in Cincinnati to distribute the illegal opioids.
The indictment also charges eight counts of distributing fentanyl, one count of possessing fentanyl, one count of using a premises for drug distribution and one count charging Ragan with illegally possessing a firearm.
Agents seized more than $10,000 in cash, additional narcotics, and the firearm from two residences while executing search warrants in this case on November 16, 2018.
Conspiracy to distribute more than 400 grams or more of fentanyl is a federal crime punishable by 10 years up to life in prison. Distributing and possessing with the intent to distribute 40 grams or more of fentanyl are crimes that carry a potential sentence of five to 40 years in prison. Operating a drug premises is punishable by up to 20 years in prison. Possessing a firearm as a convicted felon is punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Cincinnati Police, as well as Assistant United States Attorney Karl P. Kadon and Criminal Chief Kenneth L. Parker, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Thief Who Helped Steal Nearly $800,000 from the City of Bryan Sent to PrisonRead the Press Release
HOUSTON - A 40-year-old resident of Atlanta, Georgia, resident has been sentenced to prison for conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick. Derrick Ervin pleaded guilty Nov. 19, 2018.
Today, U.S. District Judge Lynn N. Hughes sentenced Ervin to 77 months in federal prison to be immediately followed by three years of supervised release. He was also ordered to pay restitution in the amount of $998,188.50. In handing down the sentence, the court noted that the prison term would give Ervin the chance to live Also, Judge Hughes stated, “Prison will give you the opportunity to live “without temptation.”
At the time of his guilty plea, Ervin admitted that in March 2018, conspirators sent fraudulent emails to the City of Bryan posing as the city’s vendors. In them, conspirators directed the city to send money to what were purportedly the vendors’ “new” bank accounts.
In reality, however, the conspirators controlled those accounts.
Three payments were sent, totaling $779,807.50.
Ervin participated in the conspiracy by opening a bank account under a stolen identity to receive much of the stolen money and distributing it amongst the conspirators.
As part of his guilty plea, Ervin also admitted to participating in other frauds including receiving at least $50,000 in October 2017 as part of a romance fraud scheme, as well as more than $90,000 as part of a business email compromise.
Ervin has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Bryan Police Department jointly conducted the investigation. Assistant U.S. Attorney Michael Chu prosecuted the case.
Stuart Physician Convicted of 23 Counts of Health Care FraudRead the Press Release
On February 15, 2019, a doctor who previously worked in Stuart, Florida, was convicted by a federal jury of committing repeated acts of health care fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ashley B. Moody, Florida Attorney General, made the announcement.
Sheetal Kanar Kumar, M.D., 48, formerly of Stuart, Florida, was found guilty by a jury of committing twenty-three counts of health care fraud (Case No. 18-14063-CR-Marra). Dr. Kumar is scheduled to be sentenced on April 19, 2019 at 10:00 a.m., by U.S. District Judge Kenneth A. Marra in Fort Pierce.
According to the court record, including evidence introduced at trial, Dr. Sheetal Kumar owned and operated the medical practice Advanced Healthcare for Women in Stuart, Florida. Dr. Kumar was an obstetrician and gynecologist who treated incontinence. From at least as early as January 2014, until July 2017, Dr. Kumar submitted or caused the fraudulent submissions of claims to Medicare, Medicaid and private insurance companies. The fraudulent claims sought money for specific health care benefits, items, and services that were not provided as billed. As a result of such false and fraudulent claims, Medicare, Medicaid and private insurance companies, made payments in the approximate amount of $637,000.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and Florida Attorney General’s Medicaid Fraud Control Unit in this matter. This case is being prosecuted by Assistant U. S. Attorneys Daniel E. Funk and Diana M. Acosta.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Stilwell Man Sentenced to 34 Months, $33,000 Restitution for Possession of Stolen FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stoney Ray Mendenhall, age 19, of Stilwell, Oklahoma, was sentenced to 34 months’ imprisonment, three years of supervised release, and ordered to pay restitution in the amount of $33,767.23, for Possessing, Receiving And Concealing A Stolen Firearm, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). The charges arose from an investigation by the Adair County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
The Indictment alleged that on or about February 3, 2018, within the Eastern District of Oklahoma, the defendant, Stoney Ray Mendenhall, knowingly possessed, received and concealed a stolen firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Violent criminals frequently use stolen firearms to commit their crimes, so bringing someone to justice that has stolen or knowingly possesses a stolen firearm goes hand-in-hand with our efforts to combat violent crime. I am glad we were able to work with the Adair County Sheriff’s Office and the ATF to achieve a swift and just resolution to this case.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Statement by Attorney General William P. Barr on President Donald J. Trump’s Intent to Nominate Jeffrey A. Rosen as Deputy Attorney General of the United StatesRead the Press Release
Attorney General William P. Barr issued the following statement:
"Jeffrey Rosen is a distinguished lawyer who has served at the highest levels of government and the private sector," said Attorney General William P. Barr. "As an attorney, he has more than 35 years’ experience litigating complex matters in state and federal courts across the country, including as a partner at Kirkland & Ellis. He supervised more than 400 attorneys while serving as General Counsel at the Department of Transportation and also served as General Counsel and Senior Policy Advisor at the White House Office of Management and Budget. He currently serves as Deputy Secretary of Transportation, where he leads 50,000 employees. His years of outstanding legal and management experience make him an excellent choice to succeed Deputy Attorney General Rod Rosenstein, who has served the Department of Justice over many years with dedication and distinction.”
Project Safe Neighborhoods Grant Program Now Accepting ApplicationsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that the application period for Project Safe Neighborhood (PSN) grants has opened. Project CeaseFire is South Carolina’s implementation of PSN, a nationwide initiative that awards grants to state agencies, local units of government, and non-profit agencies to fund innovative projects designed to reduce firearm and drug-related violence in our communities. The District of South Carolina will award $547,945.00 in grant funding. The South Carolina Department of Public Safety Office of Highway Safety and Justice Programs (OHSJP) has been selected to administer this grant program on behalf of the United States Attorney’s Office and the Department of Justice.
“The U.S. Attorney’s Office is proud to provide critically-needed resources to communities across our state who are working to protect South Carolinians from dangerous, repeat offenders,” said U.S. Attorney Lydon. “Through Project CeaseFire, we are locking arms with our federal, state, and local partners to reduce gun and gang-related violence. Together, we will continue to work toward turning the tide of violent crime in South Carolina.”
More information concerning the PSN grant program may be found at https://scdps.sc.gov/ohsjp/cj-grants/safe-neighborhoods. The application deadline is Friday, April 19, 2019. Please contact OHSJP with questions or for technical assistance with an application.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. It is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and reentry programs for lasting reductions in crime. The initiative promotes partnerships among federal, state, and local law enforcement agencies; strategic planning incorporating such technologies as crime mapping, gun tracing, and ballistic analysis; training that brings together federal, state, and local officials to build effective teams; outreach to communities; and accountability for impact on community safety.
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Pittsburgh Man Pleads Guilty to Drug Charges in Operation Gang Green InvestigationRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to charges of conspiracy to distribute cocaine and possession with intent to distribute cocaine, United States Attorney Scott W. Brady announced today.
Marvin Younger, age 37, pleaded guilty on February 14, 2019, to two counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Marvin Younger conspired to distribute 500 grams or more of cocaine and possessed cocaine with the intent to distribute it.
Judge Schwab scheduled sentencing for July 2, 2019 at 9:00 a.m. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Rachael Dizard are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation "Operation Gang Green", which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Marvin Younger.
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.
Pittsburgh Felon Sentenced to Nearly 5 Years in Prison for Federal ViolationsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced to four years and 10 months incarceration for his convictions of violating federal firearms laws and violating the terms of his supervised release, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed a 46-month prison sentence on Deondre Steave, 26, for violating firearms laws. Judge Bissoon also imposed 12-month sentence of incarceration to run consecutively to the 46-month sentence because the defendant violated the conditions of his supervised release in two other federal prosecutions of Steave.
According to the information presented to the court, the court was advised that on or about September 28, 2017, Steave, an individual with prior felony convictions for Conspiracy to Possess with the Intent to Distribute 100 Grams or More of Heroin and Escaping from Federal Custody, did knowingly and unlawfully possess a Kahr CW .40 caliber pistol and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The United States Attorney commended the Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Steave.
Philadelphia Gang Member Convicted by Jury of Murder and Additional Drugs and Firearms CrimesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Bryant Calloway a/k/a “Bigs,” 32, of Philadelphia, was convicted today by a jury of one count of murder. He was also convicted of one count of conspiracy to distribute 280 grams or more of cocaine base; one count of using, carrying, brandishing and discharging a firearm during a drug trafficking crime; one count of maintaining a house for drug distribution (and doing so within 1,000 feet of a playground); and one count of being a felon in possession of a firearm.
The defendant and his co-conspirators were part of a single drug-trafficking organization (DTO) that distributed crack cocaine in and around an area known colloquially as “the Pit” – a playground located near the area of 5101 Reno Street in the Mill Creek section of West Philadelphia. The DTO operated to distribute crack cocaine from at least as early as 2009 and continued through 2015. During its duration, the conspiracy used several different locations to distribute crack cocaine, as well as several locations to store, manufacture, and package crack cocaine for distribution. In order to further their drug distribution, the members of the DTO routinely possessed and used firearms.
Beginning in summer 2013, the defendant began making attempts to take control of a portion of the crack sales being conducted in “the Grounds,” a nearby playground basketball court which was controlled by a competing crack distribution group. The defendant and others felt that they were not selling enough crack near “the Pit” and sought to sell crack at night in “the Grounds,” which had a higher volume of crack customers and presented an opportunity to make more money. “The Grounds” organization resisted “the Pit’s” requests to sell crack in “the Grounds.” As a result of the dispute, on August 5, 2013, the defendant and another individual entered into “the Grounds” and shot and killed a man who was a crack distributor for “the Grounds” organization.
In retaliation for the murder, members of “the Grounds” organization conspired to shoot Calloway. As a result of those efforts, Calloway was shot and injured. Calloway survived his injuries, but told officers that he did not see who shot him. Within twenty-four hours of the shooting of Calloway, one of the members of “the Pit” traveled to an area controlled by the “Grounds” and fired multiple rounds down a residential street. An innocent bystander (not associated with “the Grounds” organization) was shot and injured.
“The defendant shot and murdered another individual in a drug turf dispute,” U.S. Attorney McSwain said. “Drug trafficking begets violence. Violence only begets more violence. As a result of the murder, more people – including the defendant himself and an innocent bystander – were also shot. My Office is committed to keeping the streets of our community safe from these kinds of horrific acts.”
“The ATF is committed to working with our federal, state, and local law enforcement partners to target violent drug trafficking organizations that are responsible for drug trafficking and related gun violence in our communities,” said ATF Special Agent in Charge Donald Robinson. “This conviction is a perfect example of the collaborative effort between the ATF and the Philadelphia Police Department to target those violent offenders.”
"The investigation, arrest, and successful prosecution of Bryant Calloway serves as an example of the effectiveness of strong and consistent collaboration between law enforcement agencies," said Richard J. Ross Jr., Philadelphia Police Commissioner. "We anticipate that this conviction will further disrupt narcotics trafficking and attendant criminal activity in the Mill Creek section of our city and have an appreciable impact on the quality of life of our residents.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and the case is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Seth Schlessinger.
Parkersburg man admits to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christopher S. McCallister of Parkersburg, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
McCallister, age 28, pled guilty to one count of “Conspiracy to Distribute and to Possess With the Intent to Distribute Controlled Substances.” McCallister admitted to distributing methamphetamine, heroin, cocaine, and cocaine base in Wetzel County, as well as the Southern District of West Virginia, Ohio, and Georgia from 2016 to April 2018.
McCallister faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
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.
U.S. Magistrate Judge James P. Mazzone presided.
Olean Man Arrested for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jacob Tunison, 29, of Olean, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum penalty of 15 years in prison, a maximum penalty of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the complaint, on January 14, 2019, the Cuba, NY Police Department alerted the FBI regarding the possible sexual exploitation of a child using social media. Subsequent investigation determined that in November of 2018, Tunison used one or more social media applications to communicate with a 13 year old female. The defendant sent numerous lewd images of himself to the minor, and solicited the minor to produce and send various images of herself to him.
Tunison made an appearance before U.S. Magistrate Judge Michael J. Roemer and is being held following a detention hearing.
The criminal complaint is the result of an investigation by the Cuba Police Department, under the direction of Chief Dustin Burch, and the Federal Bureau of Investigation, Jamestown Office, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Ohio man admits to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Tyler Estep, of Galloway, Ohio, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Estep, age 31, pled guilty to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances.” Estep admitted to conspiring with others to distribute methamphetamine, heroin, cocaine, and cocaine base in Wetzel County, West Virginia, as well as Ohio and Georgia from July 2015 to April 2018.
Estep faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
CHARLESTON, W.VA. – An Ohio man pled guilty to a federal firearms charge, said United States Attorney Mike Stuart. Brandon Ray Simpson, 29, pled guilty to being in possession of a firearm with an obliterated serial number. The investigation was conducted by the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On February 7, 2017, the West Virginia State Police stopped a vehicle in the Mill Creek Area, Logan County, West Virginia, for the driver’s failure to wear a seat belt. The Trooper also recognized the driver and knew the driver’s license was suspended. Simpson was in the vehicle as the passenger and he exited the vehicle running from the State Police. Simpson had a firearm in his waistband, and attempted to discard the firearm by tossing it into a nearby creek. Trooper caught Simpson and retrieved the firearm from the creek. The gun’s serial number was obliterated, likely with a grinder.
Simpson faces up to 10 years in prison on the possession of an obliterated serial number charge when he is sentenced on May 20, 2019.
United States District Judge Joseph R. Goodwin presided over the plea hearing. Assistant United States Attorney Chris Arthur is handling the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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North Pole Man Sentenced to 15 Years for Child Pornography CrimesRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced that Eric Whitebread, 43, resident of North Pole, Alaska, was sentenced on Friday, Feb. 15, 2019, by U.S. District Judge Ralph R. Beistline, to 15 years in prison, to be followed by a 35-year term of supervised release, for distribution and receipt of child pornography.
According to evidence presented at trial, on two different days in June 2015, Whitebread distributed files of child pornography through an online file-sharing network. Upon execution of a search warrant at Whitebread’s North Pole residence, law enforcement located his computer. Located on the computer were 618 images of child pornography that had been downloaded through the file-sharing network between July 14, 2015, and August 24, 2015. Contextual evidence discovered by law enforcement during a forensic examination of Whitebread’s computer – including data recovered from millions of lines of computer code – located numerous indicators that child pornography was being downloaded and viewed on the computer at times when Whitebread’s text messages showed him to be home and online. In addition, the computer did not show any activity at times the evidence showed Whitebread was away from the house.
Whitebread, his wife, and two other witnesses testified in the defense case. Each stated that multiple people came and went from Whitebread’s property and had access to the computer, and that the password was posted on a Post-It note left on the device. This testimony was inconsistent with the fact that the computer was seized from Whitebread’s private residence without any Post-It notes. Whitebread and his wife also stated that the account through all of the child pornography activity occurred was a locked account to which they did not have access, and that they only accessed the computer for work purposes, and only through a separate account that had been created in June 2015. In rebuttal, law enforcement demonstrated that this testimony was false, as the separate account was actually created in November 2013.
As part of sentencing, the United States introduced evidence that the defendant had previously been accused of inappropriately touching a minor child, and of having been engaged in a sexual relationship with a 15-year-old when he was in this 20’s.
At sentencing, Judge Beistline described the evidence against Whitebread as “overwhelming.” Judge Beistline noted that Whitebread had attempted to obstruct justice with his false trial testimony, was in “complete denial” about what he had done, and that he “had shown absolutely no remorse” for his conduct. Judge Beistline went on to add that by downloading and distributing child pornography the defendant had “victimized helpless minors by contributing to the market for child pornography.” Because of the marketplace for child pornography, the defendant “must be deterred, and others similarly-situated must be deterred,” said Judge Beistline.
This case was investigated by the Federal Bureau of Investigation (FBI), and the Anchorage Police Department, Crimes Against Children Unit (CACU). Assistant U.S. Attorneys Anne Veldhuis and Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Hampshire Man Sentenced to 1½ Years for Social Security FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Lachlan Olen Granite, a/k/a “Scott Edward Bounds,” 54, of Center Ossipee, New Hampshire, was sentenced today in U.S. District Court by Judge George Z. Singal, to 1½ years in prison and three years of supervised release for making false statements to the Social Security Administration (SSA). The defendant pled guilty on July 25, 2018.
According to court records, in 2017, the defendant applied for a Social Security number (SSN), claiming that he had not been issued one. In fact, he had been issued a SSN under his birth name “Scott Edward Bounds.” The defendant sought the new SSN because he was then in violation of court-ordered child and spousal support and thought that changing his SSN would help him evade those orders. The defendant also intended to seek a new driver’s license using his new SSN, because his license had been suspended due to his failure to pay child support in 2014.
As a condition of supervised release, Judge Singal ordered the defendant to comply with his outstanding child and family support obligations.
The investigation was conducted by SSA, Office of the Inspector General.
Muskogee Man Sentenced to 52 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brian Fredric Joice, age 40, of Muskogee, Oklahoma, was sentenced to 52 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm & Ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Muskogee County Sherriff’s Office and the Federal Bureau of Investigation.
The Indictment alleged that on or about March 7, 2018, within the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “It is great to see federal and local law enforcement agencies working together. This case, like so many others in the Eastern District, is the result of agencies from different jurisdictions having open lines of communication and understanding that when we work together we can make a bigger impact on the communities that we serve.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Monongalia County woman admits to role in drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carissa Moore, of Morgantown, West Virginia, has admitted to her role in a drug distribution operation, United States Attorney Bill Powell announced.
Moore, age 27, pled guilty to one count of “Unlawful Use of Communication Facility.” Moore admitted to using a phone to distribute and conspire to distribute a controlled substance in April 2018 in Monongalia County.Moore faces up to four years incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Memphis Man Pleads Guilty to Multiple Business RobberiesRead the Press Release
Memphis, TN – A local man has pled guilty to six counts of Hobbs Act robbery and two counts of brandishing a firearm during and in relation to a crime of violence. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
On November 15, 2018, a federal grand jury returned a ten-count indictment against Brandon Albonetti, 23, for the robberies and attempted robberies of five CVS stores and one Burger King during the summer of 2018.
According to information presented in court, the robberies occurred in Memphis, between June 21, 2018 and August 14, 2018. In several of these robberies, Albonetti entered the respective stores armed with a pistol, taking cash and other items from the registers and safes. In two robberies, Albonetti displayed a knife as he demanded cash. The defendant robbed the CVS located at 786 North Germantown Parkway twice and the CVS at 5055 Stage Road three times during this time period.
On August 14, 2018, Memphis Police officers quickly responded and apprehended Albonetti as he tried to flee the scene of the CVS on Stage Road, which he had just robbed. The defendant used his vehicle to strike two patrol cars as authorities positioned their vehicles to keep the suspect from escaping.
U.S. Attorney D. Michael Dunavant said: "Business owners have a fundamental right to be safe from armed robbers who terrorize our communities with their lawlessness. The senselessness of gun violence has a long lasting effect on victims of armed robbery, and we will no longer allow gun crime to rule our streets. This case sends a clear message that there will always be a reckoning, a real and significant consequence, for the commission of violent crimes."
The defendant pled guilty on February 15, 2019, before the Honorable Sheryl H. Lipman. He is scheduled for sentencing on May 23, 2019. Albonetti faces up to 20 years imprisonment on each robbery count. He faces a mandatory minimum consecutive sentence of 7 years and to life imprisonment on each firearm count.
This case was investigated by the FBI Safe Streets Task Force; Memphis Police Department and the Shelby County District Attorney General’s Office.
Special Assistant U.S. Attorney Bryce Phillips is prosecuting this case on the government’s behalf. SAUSA Phillips is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Media Advisory -- United States Attorney Mike Stuart and Law Enforcement Partners to Hold Press ConferenceRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart will hold a press conference tomorrow, Wednesday, February 20, at 10:30a.m., to discuss developments regarding health care fraud related matters.
WHO: United States Attorney Mike Stuart, Southern District of West Virginia
Supervisory Senior Resident Agent Wes Quigley, Federal Bureau of Investigation
Group Supervisor Jim Hischar, Drug Enforcement Administration
Assistant Special Agent in Charge Mary Ann Withrow, U.S. Department of Health
and Human Services-OIG
Director Mike Malone, Medicaid Fraud Control Unit
Investigative Supervisor Jason Fisher, Medicaid Fraud Control Unit
WHAT: Press Conference
WHEN: Wednesday, February 20, 2019 @ 10:30am
WHERE: U. S. Attorney’s Office
Robert C. Byrd U.S. Courthouse
300 Virginia Street, Room 400
Charleston, WV
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Mason County Woman Sentenced for Theft of Veterans BenefitsRead the Press Release
HUNTINGTON, W.Va. – A Mason County woman was sentenced today to three months federal incarceration to be followed by three years of supervised release, with the first six months of supervised release to be served at an in-patient substance abuse treatment center, announced United States Attorney Mike Stuart. Brandi Moore, 39, of Gallipolis Ferry, previously pled guilty to an indictment on September 24, 2018 charging her with felony offense of theft of government benefits. She was also ordered to pay back $34,000 for her theft of government benefits. The investigation was the result of a joint effort by the United States Department of Veterans Affairs-Office of Inspector General and the Federal Bureau of Investigation.
“Sadly, stealing a deceased relative’s government benefits happens far too often,” said United States Attorney Mike Stuart. “This is nothing short of theft of government benefits and the taxpayers money. We take these dishonest and dishonorable cases seriously and we prosecute every case to the fullest extent of the law. Stealing government benefits will land you in federal prison and will result in the loss of any federal benefits for the rest of your life.”
Moore admitted that she had a family member who was a United States military veteran. This veteran died on November 9, 2011. Moore did not report his death and the veterans benefits continued to accrue in the designated bank account. Moore knew she was not entitled to receive any of this money. From November 2011 through April 2013, Moore accessed the veteran’s bank account and began making cash withdraws on 191 separate occasions. Primarily, Ms. Moore used an ATM card to make the withdrawals, though she also admitted forging a name on at least one check constituting an endorsement. The total loss to the United States Treasury was $34,393. On April 4, 2017, Moore gave a detailed statement to federal investigators admitting she withdrew the money and was not entitled to do so.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Man Who Lived Under False Identity for Thirty Four Years Sentenced to Thirty Months in Federal PrisonRead the Press Release
DENVER – James Thompson of Denver was sentenced late last week to serve 30 months in federal prison for misuse of a Social Security number, U.S. Attorney Jason Dunn and Social Security Office of the Inspector General Wilbert Craig announced. The sentence was handed down by U.S. District Court Judge Philip A. Brimmer. After serving his 30 months, Thompson will then spend 3 years on supervised release. He also was ordered to pay $930.20 in restitution to the Social Security Administration. He was remanded at the conclusion of the sentencing hearing.
The defendant was indicted by a federal grand jury in Denver on July 7, 2018. He pled guilty before Judge Brimmer on November 9, 2018. He was sentenced on February 15, 2019.
According to court documents and facts presented at sentencing, James Thompson was a drug dealer in Oklahoma City in the 1980s and allowed one of his customers to purchase drugs in exchange for that customer’s identification documents. Shortly thereafter, Thompson moved to Colorado and, by 1984, had begun living under his former customer’s name. Thompson was convicted of several felonies under his false identity, including second degree murder and numerous serious drug felonies. In 2015, while on supervised release for a federal drug conviction, Thompson applied for Social Security benefits under his former customer’s name and was approved. Shortly thereafter, the former customer himself tried to apply for benefits in Oklahoma but was told he could not because someone was already receiving disability benefits in his name in Colorado. The customer was then forced to spend more than two years proving his true identity—during which time he was homeless and suffered substantial financial hardship.
This case was investigated by the Office of the Inspector General for the Social Security Administration. The defendant was prosecuted by Special Assistant U.S. Attorney Dan Burrows.
Leader of Identity Theft Conspiracy SentencedRead the Press Release
The conspirators helped illegal aliens obtain Michigan driver’s licenses. These aliens had criminal convictions that previously led to their removal to the Dominican Republic.
GRAND RAPIDS, MICHIGAN — Michelle Martinez-Marte, 37, of Rhode Island, was sentenced to 4 years in federal prison, U.S. Attorney Andrew Birge announced today. Martinez- Marte previously pled guilty in the Western District of Michigan to charges returned by grand juries in both Michigan and Massachusetts related to her involvement in a conspiracy to assist illegal aliens from the Dominican Republic with obtaining driver’s licenses using the identities of others. In sentencing Martinez-Marte, Chief U.S. District Judge Robert J. Jonker commented that Martinez-Marte was at the center of a very significant conspiracy that assisted others with prior criminal records in residing illegally in the United States.
U.S. Attorney Birge added that, "The use of someone else’s identity is a very serious crime. This conspiracy was particularly brazen because defendants assisted many individuals previously removed from our country after criminal convictions – including drug-trafficking crimes – in establishing new identities through Michigan driver’s licenses so that they could again live in our country undetected by immigration authorities. My office will continue to vigorously prosecute those who enter this country illegally and steal the identities of innocent citizens."
Between at least April 4, 2016, and July 20, 2017, Martinez-Marte conspired with Eddie Michael Balderramas of Kalamazoo, Michigan, to commit identity theft and social security account number fraud. Martinez-Marte, a citizen of the Dominican Republic illegally residing in Rhode Island, assisted other illegal aliens from the Dominican Republic in acquiring counterfeit Puerto Rican birth certificates, driver’s licenses, and social security account number cards in the names of actual individuals. Martinez-Marte would then refer the illegal aliens to Eddie Balderramas. Eddie Balderramas would travel to New York City and transport the illegal aliens to Michigan, where they would be harbored at a home in Kalamazoo. Eddie Balderramas produced false leases, paystubs, and other documents to make it appear as if the illegal aliens were truly Michigan residents. Eddie Balderramas would then transport the illegal aliens to Michigan Secretary of State Offices and would use the counterfeit Puerto Rican and Michigan residency documents to acquire authentic Michigan driver’s licenses for these illegal aliens using the name, social security account number, and other personal identifiers of actual individuals. The illegal aliens paid Eddie Balderramas for their assistance so that they could live in the country without detection by immigration authorities, as many were previously removed from the United States in their real names after sustaining criminal convictions.
"Sadly, the long-term outcome of identity-theft crimes act as an almost permanent destabilizing force on the lives and livelihoods of the victims. These crimes often impact the victims’ ability to obtain lines of credit and current or future job prospects, among other things," said Steve Francis, Homeland Security Investigations Detroit special agent in charge. "This case demonstrates HSI’s unwavering commitment to see that perpetrators of identity crimes are brought to justice."
Martinez-Marte is the latest of five individuals sentenced for their roles in the conspiracy. Previously sentenced were:
• Eddie Michael Balderramas, 51, Kalamazoo, Michigan, leader of conspiracy (4 years’ imprisonment)
• Michael James Balderramas, 28, Kalamazoo, Michigan, son of Eddie Michael Balderramas and member of conspiracy (3 years’ probation)
• Freddy Medina, 39, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (1 year imprisonment, followed by deportation)
• Victor Manuel Calderon-Rodriguez, illegal alien who obtained Michigan driver’s license through fraud (imprisonment of 12 months and 1 day, followed by deportation)
Others currently convicted and awaiting sentencing include:
• Malkin Arialdys Villar-Medrano, 45, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing March 14, 2019, Grand Rapids)
• Julio Francisco Troncoso-Marinez, 37, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing March 11, 2019, Grand Rapids)
• Juan Manuel Pena-Zapata, 39, Dominican Republic, illegal alien who obtained Michigan driver’s license through fraud (sentencing February 19, 2019, District of Rhode Island)
This prosecution was the result of a cooperative effort between local, State, and Federal law enforcement in Michigan and Massachusetts. The Michigan State Police worked closely with the Michigan Secretary of State’s Office upon receiving information from Boston police that individuals arrested on drug-trafficking charges possessed Michigan driver’s licenses with common addresses in Kalamazoo. Those offices then assisted the federal investigation, which was handled by the Grand Rapids offices of the Department of Homeland Security, Homeland Security Investigations, and the United States Drug Enforcement Administration. Assistant United States Attorney Ronald M. Stella handled the prosecution with cooperation and important assistance from the United States Attorney’s Office in Boston.
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Katy Man Sent to Prison in Fatal Shooting During Drug DealRead the Press Release
HOUSTON – A 34-year-old Katy man has been ordered to prison after discharging a firearm in the hallway of an apartment building while conducting a drug trafficking offense resulting in the death of the buyer, announced U.S. Attorney Ryan K. Patrick. James Michael Curtis Johnson pleaded guilty Feb. 6, 2017, to discharging a firearm as well as aggravated identity theft as part of a separate fraud scheme.
Today, U.S. District Judge Lynn N. Hughes handed Johnson a 120-month sentence for the firearms charge plus a mandatory and consecutive 24 months for identity theft. The total 144-month prison term will be immediately followed by three years of supervised release. At the hearing, Judge Hughes noted Johnson had a gun to perpetuate your drug deal. “That’s not self-defense,” he said. That’s defending your wrong.” He also addressed Johnson’s family. “I want y’all to love him, but don’t make excuses for him.” Hughes commented. “He knew what he was doing.”
At the time of his guilty plea, Johnson admitted that on Oct. 1, 2014, he and a friend received a request to sell narcotics at an apartment building on the 2600 block of Woodland Park in Houston. Johnson was worried that something might go wrong at the drug sale meeting, so he also brought a pistol, checking before he left to ensure it was loaded.
During the sale, an altercation arose in the hallway and one of the buyers drew a gun. Johnson ducked, drew his own pistol, fired several rounds at the buyer with the gun and fled. Authorities arrived on scene and discovered the hallway pockmarked with bullets, a partially-opened box of narcotics and a trail of blood leading to the body of the victim who was deceased.
For his participation in a conspiracy to steal money from online bank accounts, Johnson was also convicted of aggravated identity theft. In that case, Johnson and his co-conspirators possessed and unlawfully used the identification of two victims to fraudulently induce their bank to send blank checks to the conspirators. As part of this conspiracy, the conspirators wrote a fraudulent check for $91,256.73 and deposited it at BBVA Compass Bank in Houston. They withdrew the money before the bank could stop the payment.
Johnson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Houston Area Cyber Task Force, IRS-Criminal Investigation and Houston Police Department conducted the investigation. Assistant U.S. Attorney Michael Chu prosecuted the case.
Jury Convicts Man for Armed Robbery of Firearms DealerRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man today on charges of robbery and brandishing a firearm during a robbery.
According to court records and evidence presented at trial, Desmond Littlejohn, 33, and his co-conspirator robbed a firearm and ammunition dealer in Virginia Beach. On Oct. 9, 2017, the owner and an employee had returned around 3:30 a.m. from a gun show in Philadelphia. As they were unloading a truck, Littlejohn and his co-conspirator, wearing ski masks, ran up to the owner and employee brandishing firearms. The robbers took a black duffle bag which contained approximately $10,000 in proceeds from the gun show. As the robbers were fleeing in a car, they tossed items out of the black duffle bag and onto the street in an effort to get at the cash. The Virginia Beach Police discovered the discarded items which also included a cash bag next to a ski mask. Through analysis of the ski mask law enforcement was able to trace the mask back to Littlejohn.
Littlejohn faces a mandatory minimum sentence of 7 years and a maximum sentence of life in prison when sentenced on May 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 U.S. District Judge Rebecca Beach Smith accepted the verdict. Assistant U.S. Attorneys William D. Muhr and William B. Jackson are prosecuting 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 is 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-119.
Jamaican National Caught Smuggling Cocaine at Charlotte Airport Pleads Guilty to Drug Importation ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Christopher Anthony Samuels, 37, of Montego Bay, Jamaica, appeared in federal court and pleaded guilty to drug trafficking and importation related charges. U.S. Magistrate Judge David S. Cayer presided over today’s plea hearing.
According to filed court documents and the plea hearing, on November 6, 2018, Samuels flew into Charlotte-Douglas International Airport onboard a flight that originated in Montego Bay, Jamaica. Samuels was scheduled to connect in Charlotte, and fly the same day to New York City. Court records show that, upon entry into the United States, Samuels’ suitcase and backpack were inspected by U.S. Custom and Border Protection (CBP) officers on duty at Port of Entry in Charlotte. Samuels was sent to secondary inspection, during which time CBP officers X-rayed Samuels’ luggage. Upon further inspection, CBP officers, working jointly with Homeland Security Investigations (HSI), discovered two taped bags weighing approximately two (2) kilograms of cocaine, hidden within the suitcases’ bottom liners. As Samuels admitted today in court, he intended to deliver the cocaine to additional co-conspirators, located in New Jersey.
Samuels pleaded guilty to drug trafficking conspiracy, possession with intent to distribute cocaine, and unlawful importation of cocaine. Samuels is facing a mandatory minimum of five years in prison and a maximum of 40 years, a $5 million fine, and possible deportation. A sentencing date has not been set.
The case is the result of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Airport Drug Interdiction Initiative, that targets international drug smuggling and financial crimes, including money laundering, bulk cash smuggling, and unlicensed money transmitters/transporters that utilize air travel to further their criminal enterprise. Through this initiative, HSI incorporates the collaborative efforts of multiple law enforcement agencies, to include CBP, North Carolina Department of Public Safety’s Divisions of Alcohol Law Enforcement (ALE) and Department of Correction (DOC), and the Charlotte-Mecklenburg Police Department. In making today’s announcement U.S. Attorney Murray thanked these agencies for their joint investigation of this case.
Sanjeev Bhasker, Assistant U.S. Attorney for the Western District of North Carolina in Charlotte is in charge of the prosecution.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Justin Jamal Williams, 29, of Jackson, pled guilty Friday before Chief U.S. District Judge Daniel P. Jordan III to being a convicted 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.
On March 17, 2018, a Jackson Police officer conducted a traffic stop on a car with no license plate. The officer noticed that Williams, who was sitting in the back seat of the car, had a suspicious bulge in the leg of his pants and he was moving around nervously. When the officer asked Williams to step out of the car, he attempted to push past the officer and run. He was immediately taken into custody and a firearm was found on him.
Williams was charged in a federal indictment on December 11, 2018, with being a convicted felon in possession of a firearm. He has prior felony convictions in Hinds County for burglary, possession of marijuana and possession with intent to distribute marijuana.
He pled guilty before Judge Jordan on Friday, February 15, 2019, and will be sentenced on May 17, 2019. He faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Illegal Aliens Hidden in Furniture During Attempt to Circumvent Border Patrol CheckpointRead the Press Release
ORPUS CHRISTI, Texas – A 23-year-old legal permanent resident of Katy has been convicted of transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick.
On Dec. 10, 2018, Yabar Ayan Portes-Arevalo approached the primary inspection lane of the Border Patrol (BP) checkpoint near Sarita. He was driving a Ford F-150 pickup with a couch and dresser loaded in the bed of the truck wrapped in plastic. During a routine inspection, Portes-Arevalo became visibly nervous, at which time BP conducted an x-ray examination of the vehicle which showed abnormalities inside the furniture.
BP agents removed the plastic and discovered three undocumented aliens hidden in the couch and three more inside the dresser. The dresser had been nailed shut.
Porters-Arevalo entered a guilty plea today to transporting illegal aliens within the United States. Sentencing has been set for May 20, 2019, before Senior U.S. District Judge John Rainey. At that time, Portes-Arevalo faces up to five years imprisonment and a $250,000 maximum possible fine. He could also lose his status as a legal permanent resident.
He was permitted to remain on bond pending that hearing.
BP conducted the investigation. Assistant U.S. Attorney Cody Barnes is prosecuting the case.
Huntington Man Sentenced for Embezzling Veteran's BenefitsRead the Press Release
HUNTINGTON, W.Va. -- A Huntington man was sentenced to 6 months imprisonment today for embezzling over $80,000 of his brother’s Veteran’s benefits, announced United States Attorney Mike Stuart. In addition to the 6 months imprisonment, Washington will spend 6 months on home confinement following his release. He was also order to make restitution. The case was investigated by the United States Department of Veteran’s Affairs Office of Inspector General and the Federal Bureau of Investigation.
“Despicable,” said United States Attorney Mike Stuart. “It’s unimaginable to think that anyone, much less a patriot’s brother, would steal a veteran’s hard earned benefits. If you can’t trust your brother, who can you trust?”
David Washington, 55, was appointed his brother's fiduciary to receive and manage benefits from the Department of Veteran's Affairs. Washington failed to submit accounting reports, which led investigators to question his management. Washington later admitted to mismanagement, including spending his brother's benefits for his own personal expenses, most of which involved gambling debts.
United States District Court Judge Robert C. Chambers imposed the sentence. Former Assistant United States Attorney Gabe Wohl and Assistant United States Attorney R. Gregory McVey handled the prosecution.
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Huntington Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Curtis Traylor, also known as “Gurt,” 51, entered a guilty plea to an indictment charging him with distribution of heroin.
“Family Dollar is a WV institution,” said United States Attorney Mike Stuart. “You can get almost anything at the Family Dollar but you’re not supposed to be able to get heroin. A good business sullied by some bad guys.”
Traylor admitted that on October 12, 2017, he met a confidential informant and drove to the Family Dollar in Huntington. He gave the informant six grams of heroin in exchange for $400.
Traylor faces up to twenty years in federal prison when he is sentenced on June 10, 2019.
The Huntington Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
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Hermiston Woman Sentenced to Six Months in Federal Prison for Dealing FentanylRead the Press Release
PORTLAND, Ore. – Veronica Rivera, 46, of Hermiston, Oregon, was sentenced today to 6 months in federal prison and 3 years’ supervised release for selling fentanyl.
According to court documents, in October 2017, the Tactical Diversion Squad of the Drug Enforcement Administration (DEA) and the Blue Mountain Enforcement Narcotics Team began investigating a drug trafficking organization selling small blue pills pressed to look like 30 milligram oxycodone tablets but that actually contained fentanyl.
On two separate occasions in March 2018, Rivera sold a total of 167 of the fentanyl pills in Hermiston. In April 2018, investigators seized approximately 100 pills from a location where Rivera had hidden them and an additional 129 pills from her Hermiston residence.
On April 25, 2018, a federal grand jury in Portland returned a two-count indictment charging Rivera with distribution of fentanyl and possession with intent to distribute fentanyl. She pleaded guilty to one count of distribution of fentanyl on August 14, 2018.
This case was investigated by the DEA and Blue Mountain Enforcement Narcotics Team and prosecuted by William Narus, Assistant U.S. Attorney for the District of Oregon.
Henryetta Woman Sentenced to 30 Months, $177,000 Restitution for Theft by Bank EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stacey Becker Lawson, age 41, of Henryetta, Oklahoma, was sentenced to 30 months imprisonment, 3 years of supervised release, and ordered to pay restitution in the amount of $177,375.40 for Theft, Embezzlement Or Misapplication By Bank Employee, in violation of Title 18, United States Code, Section 656. The charges arose from an investigation by the Federal Bureau of Investigation.
The Indictment alleged that from in or about 2015, the exact date unknown to the Grand Jury, until on or about June 13, 2018, in the Eastern District of Oklahoma, the defendant being an employee of American Exchange Bank of Henryetta, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the bank, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys entrusted to the custody and care of American Exchange Bank by withdrawing cash and transferring funds from the bank and misapplying and embezzling the funds.
United States Attorney Brian J. Kuester said, “An embezzlement from a bank that serves a small community, such as the American Exchange Bank, has an impact well beyond the bank itself. The defendant’s crime struck a blow to perhaps the most important thing a community bank brings to a town, its residents, businesses, and public institutions – trust. So while this is a crime involving financial loss by a banking institution, it is really more than that to American Exchange Bank and the community that it serves.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.
Hallandale Resident Sentenced to 20 Years in Prison for Enticing a Minor While a Convicted Sex OffenderRead the Press Release
Peter Robert Bobal, 42, of Hallandale Beach, was sentenced, on February 15, 2019, to a total of 240 months in prison by U.S. District Judge Beth Bloom, after having been previously convicted by a trial jury of enticing a 14-year-old to engage in sexual activity and committing a felony involving a minor while being required to register as a sex offender (Case No. 18-Cr-60072).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, made the announcement.
According to the court record, including evidence presented at trial, after receiving information from a concerned citizen, the FBI opened an investigation into Bobal. An undercover FBI agent posed as a 14 year-old girl and communicated with Bobal online. Over a period of twelve days in March of 2018, Bobal asked the individual he believed to be the 14 year-old minor more than 56 times to provide sexually explicit photographs and more than 70 times to meet him in person in order to engage in sexual activity. Bobal arranged to meet the 14-year old minor to commit a sexual act on March 14, 2018. On that date, Bobal was arrested when he arrived at the pre-arranged location to meet with the minor.
The jury found that Bobal committed a felony involving a minor while being required to register as a sex offender, following a 2005 conviction for enticement of a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. This case was prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz and Assistant United States Attorney Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guilderland Man Arrested on Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Blake Spears, age 38, of Westmere, Town of Guilderland, New York, was ordered detained today following his arrest last week on child pornography charges.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Spears appeared today before United States Magistrate Judge Christian F. Hummel, who ordered Spears detained following a hearing. A criminal complaint accuses Spears of using the Kik phone messaging application to distribute child pornography in December 2018. On February 15, FBI agents found child pornography on a thumb drive in Spears’s residence, according to the complaint. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty
If convicted, Spears faces at least 5 years and up to 20 years in prison, as well as a term of post-release supervision of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Colonie Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Gaithersburg Tax Preparer Indicted for Preparing False Tax Returns and Identity TheftRead the Press Release
A Gaithersburg, Maryland, woman had her initial appearance today on an indictment charging her with ten counts of aiding or assisting in the preparation of false or fraudulent tax returns, one count of mail fraud, and one count of aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur of the District of Maryland.
“The Department of Justice will prosecute fraudulent tax return preparers and protect honest taxpayers whose identities are ensnared in tax return schemes,” said Principal Deputy Assistant Attorney General Zuckerman.
“While most tax return preparers provide excellent service to their clients, unscrupulous return preparers give the industry a black eye. IRS-CI works year round to investigate deceitful return preparers and to protect the American taxpayers’ money and personal identification information,” said Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office.
According to the indictment, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland. From at least 2012 through 2016, Espinal allegedly prepared and filed fraudulent tax returns on behalf of her taxpayer-clients with both the IRS and the Comptroller of Maryland. To generate a refund to which the client was not entitled, Espinal is alleged to have manipulated and altered Forms W-2 in the names of third parties, without their permission or authority, by replacing the listed employee’s name with Espinal’s client’s name. She would then report the third party’s wages and withholdings as those of her own clients in order to generate a fraudulent federal and state tax refund.
If convicted, Espinal faces a maximum sentence of three years in prison for each count of aiding and assisting in the filing of false returns, 20 years in prison on each count of mail fraud, and a statutory minimum sentence of two years in prison for aggravated identity theft. Espinal also faces potential fines, restitution, and forfeiture.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked Trial Attorney Carl F. Brooker, IV of the Tax Division and Assistant United States Attorney Ray McKenzie, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Four Nigerian Nationals Sentenced in Bank Fraud, Fraudulent Passport SchemeRead the Press Release
PROVIDENCE, RI – Four Nigerian nationals who admitted to participating in a large-scale bank fraud and counterfeit passport scheme in Rhode Island and Massachusetts, with an intended loss of more than $1.2 million dollars, have been sentenced in U.S. District Court in Providence, announced United States Attorney Aaron L. Weisman and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
The four men admitted to participating in a scheme to defraud banks in Rhode Island and Massachusetts by acquiring and altering lawfully passed checks between commercial entities. The checks were altered and deposited into bank accounts opened using aliases as forms of identification created for counterfeit passports from Nigeria, Ghana, and South Africa. Funds were quickly removed from the accounts prior to the fraud being detected by the financial institutions.
According to information presented to the Court, participants in the scheme deposited fraudulent checks and wires totaling approximately $1,267,000 and successfully obtained approximately $487,000 through withdrawals and debit purchases.
On Friday, Babajide O. Awogbami, 35, who has been detained in federal custody since April 10, 2017, was sentenced by U.S. District Court Chief Judge William E. Smith to 13 months in federal prison and ordered to pay $488,745.47 restitution to banks he defrauded. He pleaded guilty on November 11, 2018, to conspiracy to commit bank fraud and false use of passports.
On July 27, 2018, Olugboyega A. Fasanya, 37, of Woonsocket, and Anthony C. Ezike, 37, of Pawtucket, were sentenced by U.S. District Court Chief Judge William E. Smith to 13 months in federal prison. Fasanya, who pleaded guilty on April 30, 2018, to conspiracy to commit bank, was ordered to pay restitution in the amount of $379,362 to banks he defrauded. Ezike, who pleaded guilty on March 8, 2018, to conspiracy to commit bank fraud, was ordered to pay restitution in the amount of $228,730 to banks he defrauded.
On February 16, 2018, Opeyemi A. Orekan, 28, of North Providence, who had been detained in federal custody since April 10, 2017, was sentenced to time served and ordered to pay $101,286.63 in restitution to banks he defrauded during his participation in the conspiracy. He pleaded guilty on September 22, 2017, to bank fraud and fraudulent use of passports.
According to court records, Olugboyega A. Fasanya and Opeyemi A. Orekan have been deported.
Immigration and Customs Enforcement detainers have been issued against Babajide O. Awogbami and Anthony C. Ezike. Both men will face deportation proceedings upon completion of their terms of incarceration.
The cases were prosecuted by Assistant United States Attorney Lee H. Vilker.
The matter was investigated by Homeland Security Investigations, with the assistance of U.S. Customs and Border Protection, and the Woonsocket, Pawtucket, and Warwick Police Departments.
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Fort Thompson Man Sentenced for Being Felon in Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on February 19, 2019, by U.S. District Judge Roberto A. Lange.
Craig Ross, age 29, was sentenced to 26 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ross was indicted by a federal grand jury on September 11, 2018. He pled guilty on November 27, 2018.
The conviction stemmed from an incident on July 29, 2018, when Ross, having previously been convicted of a felony, was apprehended by law enforcement in possession of a firearm. Law enforcement had heard gun shots and located Ross and another individual with a rifle.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Ross was immediately turned over to the custody of the U.S. Marshals Service.
Fort Pierce Felon Convicted of Unlawfully Possessing a Firearm and More Than Two Pounds of MarijuanaRead the Press Release
On February 14, 2019, Jose Antonio Morales, 33, of Fort Pierce, was convicted, by a federal jury in West Palm Beach, of being a felon unlawfully in possession of a firearm and possessing marijuana with the intent to distribute the controlled substance.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.
According to the court record, including evidence introduced at trial, in June 2018 law enforcement seized two pounds of high-grade marijuana and a loaded firearm from a safe in Morales’ bedroom while executing a search warrant at his residence in Fort Pierce. Morales is a convicted felon and was prohibited, by law, to possess a firearm and/or ammunition.
Morales faces a statutory maximum sentence of 10 years in prison on each count of conviction (Case No. 18-Cr-14056). He is scheduled to be sentenced by U.S. District Judge Robin L. Rosenberg on April 29, 2019 at 11:00 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF and St. Lucie County Sheriff’s Office in this matter. The case is being prosecuted by Assistant U.S. Attorneys Michael D. Porter and Marton Gyires.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Rochester CEO Indicted on Multiple Charges for Defrauding His Own CompanyRead 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 a federal grand jury has returned a 15-count indictment charging Michael Margiotta, 48, of Rochester, NY, with wire fraud, money laundering, and filing a false tax return. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the indictment, between May 2011 and January 2014, the defendant was Chief Executive Officer of eHealth Global Technologies, Inc. As eHealth CEO, Margiotta entered into a contract with Healthcare Network Alliance, LLC (HCNA) for employment recruiting services. According to the contract, HCNA received a fee totaling 20% of an eHealth employee’s base salary for the first year for each employee referred by HCNA and hired by eHealth. The defendant caused HCNA to issue fraudulent invoices to eHealth and then directed subordinate employees at eHealth to pay the invoices.
In addition, Margiotta caused an individual, identified as Consultant A, to submit fraudulent invoices to eHealth for services actually provided to an unrelated entity known as Action Against Child Maltreatment, Inc. (AACM) that Margiotta controlled. Once again, the defendant directed subordinate employees at eHealth to pay the invoices.
In total, the defendant caused eHealth to pay approximately $455,000 in false and fraudulent invoices. A substantial portion of those funds were transferred into Margiotta’s personal brokerage accounts.
Furthermore, for the tax years 2011-2014, on his personal income tax returns, the defendant falsely overstated his business expenses and/or understated his business income, among other misstatements, and as a result, he evaded approximately $341,000 in taxes owed to the United States. Margiotta also filed false tax returns for his charity, AACM, for tax years 2013-2014, in order to conceal the improper transfer of $80,000 of AACM’s assets to himself.
The defendant was arraigned before U.S. Magistrate Judge Marian W. Payson and was released on conditions.
The indictment is the culmination of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
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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Former Public Utility Manager Sentenced to 7 Years in Prison for Theft of More Than $6 Million from Public Utility and CustomersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN FARCHIONE, a former manager at a public utility company, was sentenced last Friday to seven years in prison for fraud and identity theft offenses in connection with his theft of more than $6 million from his employer and its customers. FARCHIONE pled guilty on August 6, 2018, following the commencement of trial, before United States District Judge J. Paul Oetken, who also imposed the sentence.
U.S. Attorney Geoffrey S. Berman said: “John Farchione exploited his position to steal millions of dollars from his employer, a public utility company relied upon by millions of New Yorkers. His conduct was corrosive to the integrity of the utility, and today’s sentence sends an important message to any other person in a position of financial trust that fraud and abuse of those positions will lead to severe consequences.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court at sentencing:
From at least 2005 through November 2016, FARCHIONE engaged in fraudulent schemes resulting in the theft of more than $6 million from his public utility employer (the “Public Utility”) and its customers.
FARCHIONE, who was employed by the Public Utility as a manager in Customer Operations, devised and implemented the schemes using his knowledge of the Public Utility’s billing and payment processes. FARCHIONE carried out the scheme with a co-conspirator who also has pled guilty in connection with the scheme. FARCHIONE’s co-conspirator operated a business that aggregated payments from customers of the Public Utility for the purpose of passing such payments on to the Public Utility. FARCHIONE conspired to submit fraudulent checks and payments to the Public Utility, in amounts owed by customers who provided cash believing the payments would be submitted to the Public Utility on their behalf.
In fact, however, FARCHIONE and his co-conspirator kept the customer cash for themselves and submitted fraudulent checks to the Public Utility that purported to convey aggregated payments by multiple customers of the Public Utility. FARCHIONE, by virtue of his position as an employee of the Public Utility, was able to conceal the nature of the fraudulent checks, and thereby perpetuate the fraudulent scheme, through his knowledge of and access to the Public Utility’s account payment system.
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In addition to the prison term, Judge Oetken ordered FARCHONE, 66, to pay restitution in the amount of $7,223,641.46. FARCHIONE was also sentenced to three years of supervised release.
FARCHIONE pled guilty on August 6, 2018, to one count each of honest services fraud, mail fraud, conspiracy to commit honest services and mail fraud, and aggravated identity theft.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller and Sidhardha Kamaraju are in charge of the prosecution.
Former Presidio County Officials Sentenced to Federal Prison on Bribery Related ChargeRead the Press Release
In Pecos today, a federal judge sentenced two former Presidio County officials–67-year-old Carlos Eduardo Nieto and 57-year-old Lorenzo Padilla Hernandez–to 30 months and 24 months imprisonment, respectively, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
In addition to the prison term, U.S. District Judge David Counts ordered each defendant to pay a $10,000 fine and be placed on supervised release for a period of three years after completing their prison terms. Judge Counts also ordered that Hernandez forfeit to the government $19,800; Nieto, $8,300. Judge Counts allowed both defendants to remain on bond pending notification from the U.S. Bureau of Prison regarding the date and location to report to in order to begin serving their prison terms.
On October 23, 2018, Nieto, former Special Projects Coordinator for the City of Presidio and former Presidio Independent School District trustee, pleaded guilty to one count of conspiracy to commit mail fraud, wire fraud and deprivation of honest services. By pleading guilty, Nieto admitted that he and Hernandez, former Presidio County Precinct 3 Commissioner, conspired since May 10, 2016, to defraud Presidio County and its citizens of money by corruptly ensuring, through their positions and influence, that a particular company would be awarded a County contract for a document management system. Hernandez and Nieto solicited and received $19,800 and $8,300, respectively, for their efforts. On May 9, 2017, Hernandez voted to award the contract to that particular company. On August 3, 2018, Hernandez pleaded guilty to the same charge.
“This office is serious about combatting public corruption. If you violate the public trust for personal gain, you can expect to go to prison,” stated U.S. Attorney Bash.
“The sentencing of these two defendants illustrates El Paso FBI’s firm commitment to work with our law enforcement partners to address public corruption and hold corrupt officials in Presidio County and other jurisdictions accountable,” stated El Paso FBI SAC Buie. “The FBI encourages the public to continue to support our active and ongoing efforts to deter and prevent corruption in West Texas by reporting such activity to the FBI’s Public Corruption Hotline, 1-800-CALL-FBI.”
The FBI, with assistance from Homeland Security Investigations (HSI) and the Texas Department of Public Safety Criminal Investigations Division, investigated this case. Assistant U.S. Attorneys Monty Kimball and William F. Lewis prosecuted this case on behalf of the Government.