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26 March 2019
Two Baltimore Drug Traffickers Sentenced to over 9 ½ Years in Federal PrisonRead the Press Release
Baltimore, Maryland – On March 25, 2019, Chief U.S. District Judge James K. Bredar sentenced James Hair, a/k/a “Mook,” age 28, of Baltimore, Maryland, to 117 months in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute at least two kilograms of cocaine.
In another case yesterday, U.S. District Judge Ellen L. Hollander sentenced Stancil McNair, age 22, of Baltimore, Maryland to 10 years in federal prison, followed by five years of supervised release, for conspiracy to distribute heroin, powder cocaine, crack cocaine, and fentanyl.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration – Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Drug traffickers must know that gun crime will lead to federal time, which has no parole - ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community.”
According to Hair’s guilty plea, between late 2016 and early 2017, Hair was captured on federal wiretaps discussing drug trafficking with a heroin distributor, who was also a member of the Black Guerilla Family (BGF) gang. On February 5, 2017, the FBI seized a cell phone belonging to an associate of Hair’s. The phone contained text messages in which Hair and his associate discussed a plan to rob and kill Hair’s cocaine supplier. Also on February 5, 2017, Hair was heard on a recorded jail call telling an inmate that he had provided a firearm to a mutual friend of theirs because the friend had gotten into a fight with someone. In early to mid-March 2017, Hair was intercepted on several calls discussing getting revenge for the murder of one of his friends, and retrieving several firearms that the murdered friend had been keeping. Hair admitted that he knew that the conspiracy distributed between two kilograms and 3.5 kilograms of cocaine.
According to McNair’s plea agreement, from at least May 2017 through September 19, 2017, McNair was a manager in a drug trafficking organization (DTO) that operated in and around 1100 North Montford Avenue in Baltimore, distributing heroin, fentanyl, and powder and crack cocaine. As one of the managers, McNair was responsible for managing a portion of the daily supply of narcotics for the organization by providing bags of heroin to other street-level distributors drug shops operated by the DTO and taking custody of the drug proceeds from the distributors. Between May 5 and July 12, 2017, McNair also sold a total of 115 vials of crack cocaine, 21 bags of crack cocaine, and 70 gel caps of heroin to an undercover ATF special agent. McNair also possessed a firearm throughout the time of the conspiracy, to serve as protection against rivals who would try to steal drugs, drug proceeds, or drug territory. On September 8, 2017, a co-conspirator called McNair and told him to bring the co-conspirator a pistol. McNair immediately took his pistol to the co-conspirator to use. The co-conspirator subsequently returned the gun to McNair. On September 18, 2017, ATF agents watched McNair leave his house to go the drug shop and saw McNair reach for his waistband and grab at an object they believed to a gun. McNair was arrested and agents recovered a loaded 9mm pistol from McNair.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the Hair case and thanked Assistant U.S. Attorneys Christina A. Hoffman and Peter J. Martinez, who prosecuted the case. U.S. Attorney Hur commended the ATF, the DEA, and the Baltimore Police Department for their work in the McNair case. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta and Michael C. Hanlon, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Tucker County man sentenced for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Michael Brooks Ketterman, of Hambleton, West Virginia, was sentenced today to 60 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Ketterman, age 31, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in October 2018. Ketterman admitted to possessing more than five grams of methamphetamine, also known as “Ice,” in Randolph County in September 2017.
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.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force and the Elkins Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Timber Lake Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Timber Lake, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Chad Holzer, age 40, was sentenced to 24 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.
Holzer was indicted by a federal grand jury on November 14, 2018. He pled guilty on January 3, 2019.
The conviction stemmed from an incident on September 23, 2018, when Holzer was attempting to enter an individual’s home with a hatchet. The owner of the home heard pounding at the front door and opened it. At that time, Holzer entered the residence and a physical altercation ensued. During the fight, Holzer held up the hatchet and swung it at one of the individuals, causing a laceration and swelling to their hand.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Holzer was immediately turned over to the custody of the U.S. Marshals Service.
Three sentenced for smuggling cocaine in children’s toys and laundering drug money through car rental businessRead the Press Release
ATLANTA – Marlon Matthew Pittman, the last of three defendants operating a cocaine smuggling and money-laundering ring, has been sentenced to federal prison. The men routinely shipped their drugs from Puerto Rico to Atlanta through the U.S. Mail hidden inside children’s toys and cans of powdered milk, and laundered their drug money using a car rental company and an elaborate scheme involving hundreds of money orders. All three men had prior federal drug trafficking convictions. Pittman attempted to flee the country while awaiting trial but was arrested trying to board a flight to Ethiopia using a fake identity.
“These drug smugglers endangered countless people from Puerto Rico to Atlanta and beyond,” said U.S. Attorney Byung J. “BJay” Pak. “Ironically, it was the money laundering scheme they created to hide their criminal enterprise that first caught the attention of investigators and led to their downfall. Criminals regularly believe they have developed a new way to evade detection. However, sophisticated abilities developed by our law enforcement partners help identify the crooks, leading to a successful prosecution like this one.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug distribution networks often take extreme measures in order to hide the poison they peddle, as was the case in this investigation. This is a perfect illustration of the battle DEA and its law enforcement counterparts face when trying to prevent dangerous drugs from hitting the streets of our communities. As a result of DEA’s unwavering commitment and through the strength of its partnerships, these defendants will spend well-deserved time in prison.”
“This sentencing brings to close a lengthy investigation into a complex money laundering scheme in which defendants illegally funneled narcotic proceeds in an effort to avoid detection by law enforcement. By following the money trail, Postal Inspectors were able to identify transactions that were utilized in furtherance of their drug smuggling operation,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “The Postal Inspection Service is committed to working with our law enforcement partners to investigate and seek the prosecution of those who attempt to conceal and launder illicit proceeds.”
According to U.S. Attorney Pak, the charges, and other information presented in court: This multi-agency investigation began when federal agents noticed suspicious financial activity by an Atlanta-based car rental business and an unusual pattern of money order purchases dating back to 2012. Realizing the activity was money laundering, they began a series of federally authorized wiretaps on cellular phones used by the owner of the car rental business—Marlon Pittman—and members of his drug trafficking operation (“DTO”) in Atlanta and Puerto Rico.
The general scheme of the DTO was that Vladimir Collozo-Florido imported loads of more than 200 kilograms of cocaine at a time into Puerto Rico using cargo ships from Colombia. He then sent the cocaine through the U.S. Mail to Pittman in Atlanta, usually in parcels containing up to 1.5 kilograms at a time. In order to avoid detection, if the parcels were inspected, the cocaine was hidden inside seemingly innocent items such as children’s toys, cans of powdered milk, or cans of beans. Carlos Gonzalez-Catala was responsible for packaging the drugs using a can sealing machine and other disguising materials, and then mailing the packages. Pittman used a number of associates in Atlanta to receive the parcels on his behalf using fake names, and he would sell the cocaine to customers in Atlanta, South Carolina, Maryland, and New York.
Pittman initially transferred the proceeds of the drug sales back to Puerto Rico by carrying large quantities of cash – including one instance of $90,000 in a duffle bag – as carryon luggage on commercial flights. But to conceal the scheme and deal with increased amounts of cash, he set up a car rental business and funneled the money through the business’s bank accounts. He also purchased money orders in small increments, visiting multiple post offices on the same day, in an effort to avoid detection. He then mailed the money orders to Puerto Rico, where they were cashed by a network of associates.
Collazo-Florido and Gonzalez-Catala pleaded guilty first, with Collazo-Florido ordered to forfeit $1,000,000 as part of his sentence. While Pittman was awaiting trial, he was actually planning to flee the country. He was ultimately caught as he was passing through a TSA checkpoint at an airport to board a flight overseas, using an international travel document in a fake name he obtained by bribing foreign government officials. He also had in his possession eleven pounds of MDMA tablets hidden inside children’s Flinstones vitamins bottles. Upon searching his cell phone, agents realized Pittman had been on a crime spree on his way out of the country, trying to obtain money to take with him through fraudulent loans and fraudulent tax refunds, and also emptying his family’s food stamps account.
Members of the operation who have been sentenced by U.S. District Judge Amy Totenberg are:
- Marlon Matthew Pittman, 45, of Mableton, Georgia, was sentenced to 17 years in prison, to be followed by eight years of supervised release, and ordered to forfeit the residence he purchased with drug money. Pittman pleaded guilty to conspiracy to possess with the intent to distribute cocaine and conspiracy to commit money laundering on August 27, 2018.
- Vladimir Collazo-Florido, 44, of Carolina, Puerto Rico, was sentenced to 11 years and four months in prison, to be followed by eight years of supervised release, and ordered to forfeit $1,000,000. Collazo-Florido pleaded guilty to conspiracy to possess with the intent to distribute cocaine on November 13, 2017, and was sentenced on March 8, 2018.
- Carlos Gonzalez-Catala, 42, of Guaynabo, Puerto Rico, was sentenced to three years and three months in prison, to be followed by three years of supervised release. Gonzalez-Catala pleaded guilty to conspiracy to possess with intent to distribute cocaine on November 13, 2017, and was sentenced on February 8, 2018.
This case was investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service.
Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief, Narcotics and Dangerous Drugs Section, prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Stonewall Man Sentenced to 87 Months for Possession of Firearms, SilencerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carl Martin Ross, Jr., age 53, of Stonewall, Oklahoma, was sentenced to 87 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2); and for Possession Of Unregistered Silencer, in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871. Ross was found guilty after a non-jury trial on August 28, 2018. The verdict and sentence was the result of an investigation by the Pontotoc County Sherriff’s Office, the Pushmataha County Sherriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged and evidence at trial proved that on or about October 7, 2017 the defendant, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed numerous firearms that had been shipped and transported in interstate commerce. Evidence also proved the allegations of the second count of the Indictment, that the defendant knowingly possessed a silencer, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
United States Attorney Brian J. Kuester said, “This office and our federal law enforcement partners are committed to working with local law enforcement agencies in their efforts to make communities in the Eastern District safer. This verdict is a result of that commitment and the cooperative work of numerous agencies.”
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.
Stockton Man Pleads Guilty to Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — John Michael “Mike” Herron II, 36, of Stockton, pleaded guilty today to mail fraud and aggravated identify theft in connection with an unemployment benefits fraud and identity theft scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, from at least December 2014 through January 2018, Herron participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Herron and his co-defendant, Robert Maher, formerly of Stockton, created fictitious companies and fictitious employees (by using the real identities of persons with and without their knowledge), and filed claims with EDD, falsely stating that the employees had been laid-off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Herron, Maher, or their associates. In at least one instance, ATM cameras captured Herron withdrawing unemployment benefit funds using a debit card registered to an identity theft victim. Herron was connected to approximately $578,185 in fraudulent claims to EDD, of which approximately $485,685 was paid out by EDD.
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Assistant U.S. Attorneys Amy Schuller Hitchcock and Shelley D. Weger are prosecuting the case.
The charges against Maher are pending. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Herron is scheduled to be sentenced by U.S. District Judge John A. Mendez on July 2. Herron faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the mail fraud count, and a mandatory two-year consecutive sentence and $250,000 fine for the aggravated identity theft count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Staten Island Man Indicted for Defrauding Investors Trading in Virtual CurrencyRead the Press Release
A nine-count indictment was unsealed today in federal court in Brooklyn charging Patrick McDonnell, also known as “Jason Flack,” with wire fraud in connection with a scheme to defraud investors in virtual currency. McDonnell was arrested earlier today, and is scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the charges.
“As alleged, the defendant defrauded investors by making false promises and sending them fraudulent balance statements, hiding the fact that he was stealing their money for his personal use,” stated United States Attorney Donoghue. “The defendant’s fraud ends now, he will be held responsible for his criminal conduct.” Mr. Donoghue expressed his grateful appreciation to the United States Commodity Futures Trading Commission (CFTC) for its significant cooperation and assistance in this case.
“The defendant, Patrick K. McDonnell, used smoke and mirrors to allegedly dupe investors into paying his company—CabbageTech, for advice and strategies on crypto-currency trading,” stated USPIS Special Agent-in-Charge Bartlett. “However, Postal Inspectors and their federal law enforcement partners unmasked McDonnell and his scheme to defraud investors, and brought him to justice for his alleged criminal actions.”
As alleged in the indictment, between approximately November 2014 and January 2018, McDonnell portrayed himself as an experienced trader in virtual currency, promising customers he would provide trading advice, and purchase and trade virtual currency on their behalf. Beginning in approximately May 2016, McDonnell made similar representations through his Staten Island-based company, CabbageTech, Corp., also known as Coin Drop Markets. However, neither McDonnell nor CabbageTech provided investment services. Instead, McDonnell sent investors false balance statements purportedly showing that their investments had been profitable, and stole their money for his personal use. When investors requested refunds, McDonnell initially offered excuses for delays in repayment, and eventually stopped responding at all. In total, McDonnell defrauded at least 10 victims of at least $194,000 in U.S. currency, 4.41 Bitcoin, 206 Litecoin, 620 Ethereum Classic and 1,342,634 Verge currency.The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, McDonnell faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Hiral D. Mehta is in charge of the prosecution.
The Defendant:
PATRICK MCDONNELL (also known as “Jason Flack”)
Age: 46
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-148 (NGG)
South Sioux City Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a South Sioux City, Nebraska, man convicted of conspiring to distribute over 500 grams of methamphetamine was sentenced on March 19, 2019, by U.S. District Judge Karen E. Schreier.
Jose Valentin Carrillo, age 35, was sentenced to 51 months in federal prison, to be followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Carrillo was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on January 9, 2018. He pled guilty to the offense on December 10, 2018.
Carrillo was responsible for setting up the sale of one kilogram of methamphetamine between one of his co-conspirators and a confidential informant working with law enforcement. He received $500 from the co-conspirator for brokering the sale.
This case was investigated by the Department of Homeland Security, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, the police departments of Sioux City, Iowa, Madison, South Dakota, and Brookings, South Dakota, and the Brookings County Sheriff’s Office. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Carrillo was immediately turned over to the custody of the U.S. Marshals Service.
South Bay Doctor Pleads Guilty to Unlawfully Distributing Hydrocodone and Committing Health Care FraudRead the Press Release
SAN JOSE – South Bay doctor Venkat Aachi pleaded guilty to distributing hydrocodone outside the scope of his professional practice and without a legitimate medical need, and to health care fraud, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan, and the California Department of Justice Bureau of Medi-Cal Fraud and Elder Abuse (BMFEA). The guilty plea was accepted by the Honorable Edward J. Davila, U.S. District Judge.
According to the plea agreement, Aachi, 52, of Saratoga, was a licensed physician in the state of California who operated a pain clinic in San Jose. He maintained a DEA registration number authorizing him to prescribe controlled substances. Aachi admitted that from September 18, 2017, through July 2, 2018, he wrote hydrocodone-acetaminophen prescriptions that were outside the scope of his professional practice and not for a legitimate medical purpose. The plea agreement describes transactions in which Aachi improperly distributed hydrocodone. For example, in November of 2017, he wrote a prescription enabling a patient to receive 90 hydrocodone-acetaminophen pills. Aachi did not conduct a physical examination of the patient nor discuss the patient’s pain or response to prior medication. Aachi acknowledged that he knew the prescriptions were not for a legitimate medical purpose and that he did not write the prescriptions in the usual course of his professional practice.
Further, Aachi admitted that on July 2, 2018, he falsely submitted to an insurance company a false and fraudulent claim for payment for healthcare benefits, items, and services. Aachi admitted he acted with the intend to defraud the insurance company.
On October 9, 2018, a federal grand jury indicted Aachi and charged him with six counts of distributing drugs outside the scope of professional practice, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C), and one count of health care fraud, in violation of 18 U.S.C. § 1347. Aachi pleaded guilty to one count under each statute.
Aachi remains free on bail pending sentencing. Judge Davila scheduled Aachi’s sentencing hearing for July 1, 2019.
Aachi faces a maximum sentence of 20 years in prison and a fine of $1,000,000 for the illegal distribution of hydrocodone count and 10 years in prison and a $250,000 fine for the health care fraud count. Additional fines, restitution, and additional periods of supervised release also could be ordered at sentencing. 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 Shailika Kotiya is prosecuting the case with the assistance of Andy Ding. This prosecution is the result of investigations by the DEA, FBI, HHS-OIG, and the BMFEA. Through the BMFEA, the California Department of Justice regularly works with other law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi Cal program against a wide variety of healthcare providers, including doctors and pharmaceutical companies. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Sioux Falls Woman Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman convicted of conspiring to distribute 500 grams or more of methamphetamine was sentenced on March 25, 2019, by U.S. District Judge Karen E. Schreier.
Nicole Marie Watson, age 35, was sentenced to 180 months in federal prison, to be followed by 10 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Watson was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on March 13, 2018. She pled guilty on December 10, 2018.
Watson received approximately eight pounds of methamphetamine from co-conspirators that she distributed in Sioux Falls.
This case was investigated by the Sioux Falls Area Drug Task Force, South Dakota Highway Patrol, South Dakota Division of Criminal Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Watson was immediately turned over to the custody of the U.S. Marshals Service.
Sex Trafficker of Minors Sentenced to 32 Years in Federal PrisonRead the Press Release
Jackson, Miss. – Willie Charles Blackmon, Jr., 37, of Jackson, was sentenced today by U.S. District Judge Carlton W. Reeves to serve 384 months in federal prison, followed by a lifetime of supervised release, for sex trafficking of minors, announced United States Attorney Mike Hurst and Federal Bureau of Investigation Special Agent in Charge Christopher Freeze. Blackmon was also ordered to pay a $5,000 fine and register as a sex offender for life.
"Harming, threatening and drugging children to do unspeakable things for money will be swiftly prosecuted by this office and harshly punished in this district. The men and women in law enforcement, as well as our prosecutors and support staff, are to be commended for bringing justice to these victims and accountability to this defendant. I would ask the public to remain vigilant as to these crimes and to promptly report any suspicious activities to law enforcement so that other children never become victims of such heinous acts in the future," said U.S. Attorney Mike Hurst.
"Exploitation of a child for any reason is despicable and has no place in our communities," said FBI Special Agent in Charge Freeze. "The FBI's Child Explotation Task Force will continue to actively pursue anyone who deprives the community of the innocence of children, and fight for justice for their victims."
After a four-day trial in U.S. District Court in Jackson, Blackmon was found guilty on November 30, 2018, of two counts of sex trafficking minors and two counts of promoting a prostitution business.
In July 2014, an investigation began into a prostitution ring in the Jackson area led by Willie Charles Blackmon, Jr. The investigation revealed that Blackmon purchased a runaway minor for $500 and recruited other runaway minors for prostitution. He rented rooms at local hotels in Jackson and Vicksburg for days at a time, where the minors engaged in commercial sex acts with men for money. Blackmon kept most, if not all, of the money earned by the minors from the sex acts. The evidence showed that Blackmon physically harmed the minors, and would threaten them by holding a gun to their heads if they did not perform or if they disrespected him. He also provided drugs to the minors.
The Jackson FBI, Mississippi Attorney General’s Office, FBI New Orleans Violent Crimes Against Children Task Force, Clinton Police Department and Ouachita Parish Sheriff’s Office investigated the prostitution ring which spread throughout Mississippi, Louisiana, Florida and Arkansas. Assistant United States Attorneys Glenda R. Haynes and Keith French prosecuted the case.
The 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.
Sallisaw Man Pleads Guilty to Possession of Destructive DeviceRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Randall Doyle McGuire, age 39, of Sallisaw, Oklahoma, entered a guilty plea to Possession Of Unregistered Firearm (Destructive Device-Incendiary Bomb), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleges that on or about July 16, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly possess a destructive device (incendiary bomb), which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Recognizing the WDTN’s First Female AUSA, Devon L. Gosnell, during Women’s History MonthRead the Press Release
Memphis, TN– As we recognize and celebrate Women’s History Month in March, the U.S. Attorney’s Office would like to share and highlight the accomplishments of Ms. Devon L. Gosnell, the first female Assistant United States Attorney (AUSA) to serve in the Western District of Tennessee. Ms. Gosnell was first appointed to serve as an AUSA in 1975 by United States Attorney Thomas F. Turley, Jr. In 1987, she was promoted to the position of Criminal Chief AUSA by United States Attorney W. Hickman Ewing, which was also the first time a woman held this management position in the office. As an Assistant U.S. Attorney, Ms. Gosnell handled both civil and criminal matters. She tried in excess of 100 jury cases, and handled over 40 appeals before the Sixth Circuit Court of Appeals. Ms. Gosnell served for nineteen years as an advocate for the people of the Western District of Tennessee, as a mentor, and as a leader. Because of her many firsts within the Department of Justice, Ms. Gosnell paved the way for so many women in our office. Today the U.S. Attorney’s office consists of 17 women Assistant United States Attorneys, including the current Criminal Chief and OCDETF Chief, thanks to Ms. Gosnell’s willingness to be the first.
Devon L. Gosnell graduated magna cum laude from West Virginia University in 1972 with a bachelor’s in political science. She earned her juris doctorate from West Virginia University in 1975 where she served on law review, the moot court board, and the moot court team. In 1982, she earned her MBA from the University of Memphis, and in 1995, she graduated from Harding University School of Theology with honors. Not only are Ms. Gosnell’s academic accomplishments worthy of recognition, but perhaps most notable are her achievements as a woman.
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R.I. Man Sentenced for Health Care and Welfare Fraud, Misuse of Social Security Numbers, ID Theft, Illegal ReentryRead the Press Release
PROVIDENCE, RI – A Pawtucket man previously deported to his native Dominican Republic after being convicted and incarcerated for trafficking significant quantities of heroin and cocaine was sentenced today to 25 months in federal prison for reentering the United States illegally, and using the identity and Social Security number of another person to fraudulently obtain health care and welfare benefits.
Carlos Jose Portes-Ortiz, 38, a.k.a. Juan Carlos Mendieta Vega, a.k.a. Anthony Clausell Rivera, a.k.a. Jose Jimenez Agosto, a.k.a. Willian Acevedo Gil, a.k.a. Allison Gabriel, pleaded guilty on October 10, 2018, to health care fraud, Supplemental Nutrition Assistance Program (SNAP) fraud, misuse of Social Security numbers, aggravated identity theft, and illegal reentry.
Portes-Ortiz was deported from the United States in February 2009, after completing a federal prison sentence imposed in June 2007 for conspiracy to import 100 grams or more of heroin and 500 grams or more of cocaine. Portes-Ortiz was arrested in June 2005 at Newark Liberty International Airport after arriving from the Dominican Republic.
The sentence imposed today by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Phillip Coyne, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations Scott E. Antolik, and Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General Bethanne M. Dinkins.
In March 2017, Portes-Ortiz was arrested in Dedham, Mass., after attempting to purchase more than $1,000 worth of iPhone and iPad equipment using a driver’s license depicting his photograph and a credit card both in the name of a female. At the time of his arrest, Portes-Ortiz was found to be in possession of a Rhode Island Neighborhood Health Plan card, a Rhode Island EBT card for SNAP benefits, a Rhode Island identification card, a Puerto Rican driver’s license and a bank debit card. Some of the cards seized from Portes-Ortiz contained his photograph but all were in the names of others than his own.
It was later determined through fingerprints that the person arrested was actually Portes-Ortiz.
An investigation led by agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations determined that Portes-Ortiz used multiple names and stolen personal identifying information to gain Rhode Island ID cards, as well as the identity of another person to obtain Medicaid and health care benefits, including medical, pharmaceutical and dental services; and EBT cards and SNAP benefits.
The investigation revealed that Portes-Ortiz was employed at a retail store while, at the same time, fraudulently obtaining federal program benefits and services using a stolen identity and identifying information.
At sentencing, Portes-Ortiz was ordered to pay restitution of approximately $13,000.
Portes-Ortiz, has been detained in federal custody since his arrest on June 27, 2018. He faces deportation proceedings upon completion of his term of incarceration.
The case was prosecuted by Assistant U.S. Attorneys Ly T. Chin and Terrence P. Donnelly.
The matter was investigated by agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations; Homeland Security Investigations - Immigration and Custom Enforcement; U.S. Social Security Administration, Office of Inspector General; and U.S. Department of Agriculture, Office of Inspector General.
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Portland Nurse Practioner Sentenced to Four Years in Federal Prison for Illegal Opioid Distribution (Photo)Read the Press Release
Downloadable file: PDF Press Release
Downloadable file: Fusion Wellness Clinic
Downloadable file: Cash Found in DeMille Bedroom (1)
Downloadable file: Cash Found in DeMille Bedroom (2)Prosecution marks the first opioid pill mill case in the District of Oregon
PORTLAND, Ore.—Former nurse practitioner Julie Ann DeMille, 60, of Portland, was sentenced today to 48 months in federal prison and three years’ supervised release for illegally distributing prescription opioids, filing a false tax return and lying to federal agents.
“Our nation is drowning in substance abuse. We must wake up to this reality and stop pushing the reckless use of controlled substances. DeMille treated her nursing credentials like a license to deal opioids—a drug dealer masquerading as a medical professional. It’s hard to comprehend that in the midst of the deadliest drug crisis in history, DeMille risked the lives of hundreds to turn a profit,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Opioid abuse is devastating our communities and we must respond aggressively to stem the flow because every person lost in this crisis is one too many,” said DEA Special Agent in Charge Keith Weis.
“This case is an excellent example of how the financial expertise of IRS-Criminal Investigation employees contributes to the federal law enforcement fabric,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation is committed to serving the U.S. taxpayers and working with our partners to make our communities safer. DeMille has been held accountable for her actions and we will continue to investigate and seek prosecution of individuals who do not report their taxable income, regardless of whether the income is legal or illegal.”
According to court documents, in January 2015, DeMille opened the Fusion Wellness Clinic on Southeast 122nd Avenue in Portland across the street from the Multnomah County Parole and Probation Office. From the clinic’s opening until July 2016, DeMille illegally wrote thousands of prescriptions for opioids including oxycodone and hydrocodone.
As early as 2013, DeMille began planning a move from Houston, Texas to Portland. She was attracted to Oregon where licensed nurse practitioners can write prescriptions without the oversight and approval of a physician. She moved in 2014 and was hired by a publicly funded, county health clinic. From the beginning, DeMille planned to subsidize her county income by operating an illegal opioid pill mill. By the end of 2014, DeMille had registered the “Fusion Wellness” business name and begun searching for clinic locations.
After DeMille’s first clinic opened in January 2015, word spread quickly that the small, cash-only operation was a reliable source for cheap and easy opioid prescriptions. On Friday and Saturday mornings, customers would spill into parking areas outside the clinic and wait in cars for their turn in the cramped office. The clinic quickly outgrew its original location and, in April 2015, was moved to a new location on Northeast 101st Avenue in Portland.
Before long, DeMille’s prescribing habits began attracting the attention of law enforcement and the Oregon State Board of Nursing. Shortly after the clinic opened, three of DeMille’s patients attempted to fill identical prescriptions for 30mg doses of oxycodone together at a local pharmacy. The pharmacist turned the patients away and contacted police. A Gresham police officer later contacted DeMille by phone to discuss the prescriptions and forwarded a copy of the general offense report to the state nursing board. The nursing board opened an investigation into DeMille’s prescribing practices just three weeks after the clinic opened.
In early 2015, the clinic’s patient files included very few records. Knowing her lax prescribing practices and record keeping would not pass investigative scrutiny, DeMille began forging patient signatures on newly created forms. In March 2015, DeMille met with nursing board investigators to discuss the complaint and her prescribing practices. During the course of the interview, she repeatedly lied about the nature of her practice, insisting that the clinic’s patients were treated for simple chronic diseases and a variety of other wellness issues. Ultimately, the nursing board issued a letter of concern to DeMille, but did not pursue disciplinary action.
DeMille quickly altered her practices in response to the nursing board’s investigation in an attempt to avoid further detection. Throughout the remainder of 2015, DeMille continued her work at the county health clinic while operating the clinic just two days a week. In a typical day at the clinic, DeMille saw up to 20 patients, charging each $200 in cash. In 2015, the clinic generated at least $388,000 in revenue, none of which was reported on DeMille’s income tax return. In July 2016, while conducting a federal search warrant, DEA agents found more than $51,000 in cash stored in DeMille’s bedroom.
In 2015 alone, according to data from the Oregon Prescription Drug Monitoring Program, DeMille wrote more than 1,940 prescriptions for controlled substances. Together, these prescriptions resulted in the distribution of more than 219,000 pills, 96.7% of which were opioids.
DeMille pleaded guilty on December 12, 2018 to two counts of illegally distributing a controlled substance and to one count of filing a false tax return and lying to federal agents.
DeMille’s co-conspirator and former Fusion Wellness Clinic manager, Osasuyi “Ken” Idumwonyi, pleaded guilty on February 28, 2017, to conspiring to distribute or dispense and possessing with intent to distribute or dispense the Schedule II controlled substances oxycodone and hydrocodone. He will be sentenced on June 3, 2019.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, U.S. Marshals Service and Portland Police Bureau. It was prosecuted by Thomas S. Ratcliffe and Donna Brecker Maddux, Assistant U.S. Attorneys for the District of Oregon.
Drug abuse affects communities across the nation, and opioid abuse continues to be particularly devastating. The CDC reports that from 1999 to 2016, more than 630,000 people have died from a drug overdoses. In 2016, 66% of drug overdose deaths involved an opioid. Drug overdose is now the leading cause of injury or death in the United States. In Oregon, the total number of deaths related to drug use increased 11 percent between from 2013 to 2017, with 546 known drug related deaths in 2017.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Pittsburgh Man Sentenced for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, was sentenced in federal court to three years’ probation on a charge of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Brent Williams, age 32.
According to information presented to the court, Brent Williams was indicted in connection with a DEA wiretap investigation. The intercepted wiretap communications revealed that Williams and others conspired to possess with intent to distribute and distribute quantities of heroin between January and September 2016.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. United States Attorney Brady commended the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Pittsburgh Bureau of Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Brent Williams.
Owner of South Bay Law Firm and Office Manager Charged with Committing Large-Scale Immigration Visa FraudRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Danhong “Jean” Chen, a/k/a Maria Sofia Taylor, and her business partner Jianyun “Tony” Ye in connection with an immigration visa fraud scheme, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, Securities and Exchange Commission Office of the Inspector General, Inspector General Carl Hoecker. The 14-count indictment, filed March 7, 2019, and unsealed late yesterday, alleges the defendants committed visa fraud and related crimes to obtain immigration benefits for more than 100 foreign investors through the government’s Employment-Based Immigration Fifth Preference, or “EB-5,” visa program.
According to the indictment, Chen, 54, of Atherton, was the sole partner at the Law Offices of Jean D. Chen, which held itself out as specializing in immigration law. Ye, 51, also of Atherton, was formerly married to Chen and held himself out as the manager of Chen’s law office. The indictment alleges Chen and Ye prepared and submitted to the United States Citizenship and Immigration Services (USCIS) fraudulent documents that contained false signatures and falsely described how applicants would qualify for the EB-5 program.
Under the EB-5 program, foreign nationals may obtain permanent United States residency, commonly known as “green card” status, by investing in qualifying American businesses. Alien investors who comply with program requirements initially receive a grant of conditional permanent residency status for a two-year period. After two years, the alien investor can petition for permanent residency. To obtain permanent residency status, the applicant’s investment must amount to $500,000 if made in certain geographical areas with low employment rates; if the investment is not in a designated low-employment area, the investment must amount to a minimum of $1,000,000. In addition, under the EB-5 program, applicants may make use of “regional centers.” Entrepreneurs seeking investments for American businesses may establish regional centers to promote investment opportunities and make such opportunities available to EB-5 applicants. The regional centers generally promote investment opportunities within designated geographic areas. The Law Offices of Jean D. Chen represented clients who invested a total of approximately $52,000,000 into projects under the EB-5 program.
In this case, the indictment describes steps taken by Chen and Ye to fraudulently obtain immigration benefits through the EB-5 program on behalf of their clients. First, the indictment alleges that Chen and Ye falsified documents to hide the true ownership and nature of a regional center. Specifically, the indictment alleges that in 2014, Chen and Ye purchased the Golden State Regional Center and other entities, and almost immediately after the purchase, transferred ownership to a straw owner. The person to whom the entity was transferred did not know she was being named as the owner. Also, Chen and Ye filed papers with USCIS, requesting that the government continue to recognize Golden State Regional Center as a regional center qualified to promote EB-5 investment within the South Bay. The papers contained false signatures of the purported straw owner. Second, defendants prepared and submitted falsified EB-5 applications. For example, visa applications contained false signatures of the purported straw owner, false statements about the extent to which the Law Offices of Jean D. Chen represented both the investor and Golden State Regional Center, and false statements about the manner in which investor funds would be used.
The indictment also charges defendants with obstruction of justice related to investigations being conducted by the United States Securities and Exchange Commission (SEC) and the FBI. On October 18, 2018, the SEC filed a civil complaint against Chen, Ye, and other individuals and entities, alleging, among other things, that Chen and Ye improperly solicited investments and committed other violations of law. The indictment alleges that during the course of the SEC’s investigation, defendants made demands of the straw owner of Golden State Regional Center that she provide false answers to SEC investigators. Further, the defendants allegedly logged onto someone else’s email account and deleted emails relevant to the FBI’s investigation into the visa fraud.
In sum, Chen and Ye both are charged with ten counts of visa fraud, in violation of 18 U.S.C. § 1546(a); one count of obstruction of justice, in violation of 18 U.S.C. § 1505; one count of obstruction of justice, in violation of 18 U.S.C. § 1512(b)(3); and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. In addition, Ye is charged with one count of identity theft, in violation of 18 U.S.C. § 1018(a)(7).
An indictment merely alleges that crimes have been committed, and all defendants, including Chen and Ye, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum sentences:
DEFENDANT
STATUTE
CHARGE
MAXIMUM PENALTY
Chen and Ye
18 U.S.C. § 1546(a)
Visa Fraud
Maximum term of imprisonment: 10 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1505
Obstruction of Justice
Maximum term of imprisonment: 5 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1512(b)(3)
Obstruction of Justice
Maximum term of imprisonment: 20 years
Maximum fine: $250,000
Maximum term of supervised release: 3 years
Restitution
Forfeiture
Chen and Ye
18 U.S.C. § 1028A
Aggravated Identity Theft
Maximum term of imprisonment: 2 years (to run consecutive to any other underlying felony)
Maximum fine: $250,000
Maximum term of supervised release: 1 years
Ye
18 U.S.C. § 1028(a)(7)
Identity Theft
Maximum prison sentence: 5 years
Maximum fine: $500,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Restitution
Ye made an appearance yesterday before United States Magistrate Judge Susan van Keulen. He pleaded not guilty to the charges and was released on a $750,000 bond. His next scheduled appearance is for a hearing before the Honorable Lucy H. Koh, U.S. District Judge, on May 15, 2019, for a trial setting.
Chen remains at large. According to court documents, Chen became a naturalized citizen of Dominica in October 2018, approximately at the same time the SEC filed its complaint against her, and may be using the name Maria Sofia Taylor. Chen left the United States immediately after the SEC filed its civil complaint.
Assistant United States Attorney Patrick R. Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation led by the FBI and the SEC Office of the Inspector General.
Owner of Medical Technology Company Sentenced to 30 Months in Prison for Evading Taxes on over $21 Million in Business IncomeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LEWIS STAHL, the owner of a Manhattan medical technology company, was sentenced to 30 months in prison for evading federal income taxes on more than $21 million in business income, which resulted in a loss to the U.S. Treasury of more than $6.3 million in taxes due and owing. STAHL pled guilty to one count of tax evasion on September 27, 2018, before U.S. District Judge Ronnie Abrams, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lewis Stahl flagrantly evaded paying taxes on his business income, denying the federal government more than $6 million in taxes. Knowing full well that he was committing a crime, Stahl will spend time behind bars for his wrongdoing.”
According to the Information to which STAHL pled guilty, court filings, and statements made in public court proceedings:
STAHL is an experienced businessperson who owns and operates a Manhattan medical software company (the “Medical Technology Company”) that develops and sells medical software applications. The Medical Technology Company holds itself out as a provider of “computer ready” and “fully mobile” applications that allow physicians to prescribe medications and to order and view diagnostic information, lab results, and cardiology/radiology images.
Between 2010 and 2014, the Medical Technology Company earned more than $32 million in gross income. Less business expenses, these earnings resulted in over $21 million in business income to STAHL, which he accessed by using business bank accounts and business credit cards. STAHL used this money to fund the purchase of personal items for himself, such as clothing, jewelry, watches, real estate rentals, country club benefits, and a firearms collection. Prior to 2015, despite earning this business income from the Medical Technology Company, STAHL deliberately avoided filing tax returns, and did not report any of the income to the Internal Revenue Service (the “IRS”).
In March of 2015, an IRS revenue agent (the “IRS Revenue Agent”) contacted STAHL regarding his failure to file for the tax years 2010 through 2014, and asked STAHL to address the situation by filing delinquent Forms 1040 for those years (the “Delinquent Returns”). Shortly thereafter, STAHL retained a certified public accountant (the “Accountant”) to file the Delinquent Returns for STAHL. STAHL told the Accountant that he had failed to file tax returns in the past because he had payroll tax problems with the IRS and “stuck his head in the sand.” He also told the Accountant that he did not have any personal bank accounts in his name because he believed the IRS would seize any such accounts. STAHL further stated to the Accountant, falsely, that he was a “W-2” employee only of the Medical Technology Company, that his W-2 income was his only income, and that he had no ownership interest in the Medical Technology Company. In truth and in fact, STAHL had an ownership interest in the Medical Technology Company, and had earned over $21 million in business income from the company, well beyond the income of a few hundred thousand dollars that was reflected on his W-2s.
The Accountant subsequently filed the Delinquent Returns for STAHL, which, as a result of the lies that STAHL told the Accountant, were false and fraudulent. Specifically, the Delinquent Returns falsely claimed that STAHL’s total income was $38,652 in 2010; $7,115 in 2011; $84,615 in 2012; $100,000 in 2013; and $100,000 in 2014. The Delinquent Returns further falsely reported that STAHL did not receive any business income in any of these years, and failed to include a Schedule C detailing the significant amount of business income that STAHL earned from the Medical Technology Company. STAHL’s failure to report over $21 million in business income to the IRS – first by deliberately failing to file returns, and then by causing the false Delinquent Returns to be filed by the Accountant – resulted in a loss to the IRS of over $6.3 million in taxes due and owing.
* * *
In addition to the prison term, Judge Abrams ordered STAHL, 63, of Boca Raton, Florida, to serve three years of supervised release, and to make court-ordered restitution to the IRS.
Mr. Berman praised the outstanding investigative work of the IRS Criminal Investigation Division in this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sarah E. Paul is in charge of the prosecution.
Otsego Home Health Care Company to Pay More Than $700,000 to Resolve False Claims Act LiabilityRead the Press Release
United States Attorney Erica H. MacDonald today announced that Accurate Home Care, LLC (“Accurate Home Care”), a home health care company headquartered in Otsego, Minnesota, has agreed to pay $726,957.59 to resolve federal False Claims Act violations arising from the unlawful submission of claims for payment to Minnesota Medicaid, a jointly funded federal and state health care program.
According to the settlement agreement, Accurate Home Care voluntarily disclosed to the United States that it had submitted claims for payment for home care services to both Minnesota Medicaid and private insurers for the same service, and fraudulently retained full payment from Minnesota Medicaid, even where it was not the primary insurer. Pursuant to the settlement agreement, Accurate Home Care must pay the United States and the State of Minnesota a total of $726,957.59 to resolve the misconduct. Accurate worked cooperatively with the Department of Justice in voluntarily disclosing the false claims. Department of Justice policy encourages self-reporting of fraud and values company cooperation.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by the U.S. Attorney’s Office for the District of Minnesota, with assistance from the Medicaid Fraud Control Unit of the Minnesota Attorney General’s Office and the Office of Inspector General of the U.S. Department of Health and Human Services.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Navajo Man Sentenced to Federal Prison for RobberyRead the Press Release
PHOENIX – On March 25, 2019, Kaniel Singer, 35, of Middle Mesa, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Steven P. Logan to 57 months in prison, followed by a term of three years of supervised release. Singer had previously pleaded guilty to robbery.
On March 22, 2017, while driving across the Navajo Indian Reservation on US-160, the victim sustained a flat tire. While trying to change the tire, and waiting for roadside assistance, Singer pulled up with two unknown males and told the victim he was being robbed. After the victim complied with Singer’s demands by handing over his personal belongings, Singer ordered the victim into the victim’s car and drove off, threatening to kill the victim while traveling at speeds close to 80 mph. When Singer slowed down and turned onto a dirt road, the victim was able to jump out of his vehicle and run to the highway for assistance.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08113-PCT-SPL
RELEASE NUMBER: 2019-034_Singer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Morris County Man Sentenced on Child Porn ChargesRead the Press Release
TOPEKA, KAN. - A Morris County man was sentenced Monday to eight years in federal prison for downloading child pornography from the internet, U.S. Attorney Stephen McAllister said. In addition, he was ordered to pay $29,000 in restitution to victims.
Wesley Wagner, 54, White City, Kan., was convicted in October 2018 on one count of receiving child pornography and one count of possessing child pornography.
During trial, the prosecutor presented evidence that the FBI seized a server belonging to a now-defunct website called Playpen that provided users access to child pornography. The FBI used computer forensics to identify hundreds of the site’s users, including Wagner. Based on that information, the FBI obtained a warrant to search the defendant’s home.
McAllister commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Monongalia County woman sentenced for maintaining a drug houseRead the Press Release
CLARKSBURG, WEST VIRGINIA - Brianna Blackman, of Morgantown, West Virginia, was sentenced today to 14 months incarceration for having a drug-involved premises, United States Attorney Bill Powell announced.
Blackman, also known as “BB,” age 23, pled guilty to one count of “Maintaining a Drug-Involved Premises” in October 2017. Blackman admitted to maintaining an apartment in Rhea Terrace in Fairmont in Marion County, West Virginia for the purpose of distributing oxycodone. The crime occurred from May until December 2016.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
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.
Senior U.S. District Judge Irene M. Keeley presided.
Monongalia County man admits to role in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Preston Jeffrey Smith, of Morgantown, West Virginia, has admitted to his involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Smith, age 25, pled guilty to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of a Firearm.” Smith admitted to making a false statement to purchase a 5.56 mm caliber pistol in May 2018 in Monongalia County.Smith 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.
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.
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.
Mississippi Man Pleads Guilty to Health Care Fraud, Money Laundering and Tax Evasion Charges for Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
A Hattiesburg, Mississippi man pleaded guilty today for his role in a $200 million compounding pharmacy scheme to defraud health care benefit programs, including TRICARE, which is the program that covers U.S. military service members and their families.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Mike Hurst of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Office; Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Glenn Doyle Beach Jr., 46, pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion, before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Beach was charged in May 2018 in a 26-count indictment and had been scheduled to begin trial today. He is scheduled to be sentenced on July 2, 2019.
“Glenn Doyle Beach and his co-conspirators stole hundreds of millions of dollars from federal health care programs, including TRICARE, which provides benefits to brave members of our military and their families,” said Assistant Attorney General Benczkowski. “The Criminal Division remains dedicated to rooting out and punishing this kind of misconduct, and to protecting America’s important health care programs from fraud and abuse.”
“While our men and women in uniform were defending the freedoms and values we hold dear, this defendant was selfishly stealing precious money and resources from their military healthcare system, TRICARE, to the detriment of us all,” said U.S. Attorney Hurst. “Our investigators and prosecutors are to be commended for their steely resolve in rooting out corruption and administering justice for victims. We will not stop until every last person involved in this criminal scheme has been brought to justice.”
“Fraud schemes of this magnitude disrupt the fabric of our health care system, ultimately damaging our nation's economy and costing taxpayers billions each year,” said FBI Special Agent in Charge Freeze. “Today's guilty plea brings this case one step closer to justice and proves that the collective resources of all partnering agencies will continue to expose these schemes and will actively seek justice for those who participate in them."
Beach was an owner and the managing member of Advantage Pharmacy of Hattiesburg. At the hearing today, Beach admitted his role in a scheme to defraud health care benefit programs, including TRICARE, by marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients. Beach admitted, however, that through Advantage Pharmacy of Hattiesburg, he formulated compounded medications without regard to the individual needs of the patients, but instead in order to increase reimbursements paid by health care benefit programs. Furthermore, Beach admittedly created a fictitious paper trail to mislead insurance auditors who attempted to uncover the fraud.
Beach further detailed a money laundering and tax evasion scheme that he and other co-conspirators used to conceal the fraudulent proceeds and evade taxes.
From approximately April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million, Beach admitted. The government seized more than $6 million in cash and other assets from Beach, which will be forfeited in connection with his guilty plea.
Since 2017, 11 other individuals involved in this scheme have pleaded guilty, and one was convicted at trial. The investigation is ongoing.
This case was investigated by the FBI, IRS-CI and DCIS, among other agencies. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), are prosecuting the case, with the assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Mississippi Man Pleads Guilty to Health Care Fraud, Money Laundering and Tax Evasion Charges for Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
WASHINGTON – A Hattiesburg, Mississippi man pleaded guilty today for his role in a $200 million compounding pharmacy scheme to defraud health care benefit programs, including TRICARE, which is the program that covers U.S. military service members and their families.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Mike Hurst of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Office; Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Glenn Doyle Beach Jr., 46, pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion, before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Beach was charged in May 2018 in a 26-count indictment and had been scheduled to begin trial today. He is scheduled to be sentenced on July 2, 2019.
“Glenn Doyle Beach and his co-conspirators stole hundreds of millions of dollars from federal health care programs, including TRICARE, which provides benefits to brave members of our military and their families,” said Assistant Attorney General Benczkowski. “The Criminal Division remains dedicated to rooting out and punishing this kind of misconduct, and to protecting America’s important health care programs from fraud and abuse.”
“While our men and women in uniform were defending the freedoms and values we hold dear, this defendant was selfishly stealing precious money and resources from their military healthcare system, TRICARE, to the detriment of us all,” said U.S. Attorney Hurst. “Our investigators and prosecutors are to be commended for their steely resolve in rooting out corruption and administering justice for victims. We will not stop until every last person involved in this criminal scheme has been brought to justice.”
“Fraud schemes of this magnitude disrupt the fabric of our health care system, ultimately damaging our nation's economy and costing taxpayers billions each year,” said FBI Special Agent in Charge Freeze. “Today's guilty plea brings this case one step closer to justice and proves that the collective resources of all partnering agencies will continue to expose these schemes and will actively seek justice for those who participate in them."
Beach was an owner and the managing member of Advantage Pharmacy of Hattiesburg. At the hearing today, Beach admitted his role in a scheme to defraud health care benefit programs, including TRICARE, by marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients. Beach admitted, however, that through Advantage Pharmacy of Hattiesburg, he formulated compounded medications without regard to the individual needs of the patients, but instead in order to increase reimbursements paid by health care benefit programs. Furthermore, Beach admittedly created a fictitious paper trail to mislead insurance auditors who attempted to uncover the fraud.
Beach further detailed a money laundering and tax evasion scheme that he and other co-conspirators used to conceal the fraudulent proceeds and evade taxes.
From approximately April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million, Beach admitted. The government seized more than $6 million in cash and other assets from Beach, which will be forfeited in connection with his guilty plea.
Since 2017, 11 other individuals involved in this scheme have pleaded guilty, and one was convicted at trial. The investigation is ongoing.
This case was investigated by the FBI, IRS-CI and DCIS, among other agencies. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), are prosecuting the case, with the assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Middlesex County, New Jersey, Tax Preparer Admits FraudRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer today admitted filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.
David Patterson, 37, was indicted in October 2018 and pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to Count 24, aiding and assisting in the preparation of a false income tax return, and Count 25, failure to file a tax return for 2013, of the superseding indictment.
According to documents filed in this case and statements made in court:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he falsified the clients’ medical and dental expenses, gifts to charity and unreimbursed employee expenses. He also admitted failing to file an individual tax return and pay federal income taxes for calendar year 2013.
The false filing count carries a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file count carries a maximum potential penalty of up to one year in prison and a $100,000 fine. For purposes of sentencing, Patterson admitted to aiding and assisting in the preparation of 23 additional false tax returns and failing to file tax returns for calendar years 2014 and 2015, resulting in an aggregate loss of $290,321. Sentencing is scheduled for Aug. 12, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Meridian Man Pleads Guilty to Cocaine TraffickingRead the Press Release
Jackson, Miss. – Kenneth Dewayne Williams, 45, of Meridian, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to possession with intent to distribute 500 grams of a detectible amount of cocaine hydrochloride, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
The case is the result of an extensive investigation dubbed Operation "Deadly Dose" which began as an initiative targeting illegal narcotics distribution in central Mississippi that involved the distribution of heroin and cocaine. During the investigation, agents learned of an upcoming cocaine transaction between Williams and a coconspirator. On December 4, 2017, agents conducted a traffic stop of Williams on Interstate 20 east of Jackson, where agents seized approximately 2 kilograms of cocaine and $17,000.00.
Williams will be sentenced by Judge Jordan on June 28, 2019, at 9:00 a.m. He faces a maximum penalty of 40 years in prison and a $5,000,000 fine, followed by a term of supervised release of at least 4 years.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jackson Police Department, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Members of Fraudulent Jamaican Sweepstakes Ring Sentenced for Conspiracy, Money Laundering and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton has sentenced Shameer Hassan (45, Kissimmee) and Nadine Bromfield Alexander (39, Orlando) to 10 years and 7 years in federal prison, respectively, for conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft. Hassan was sentenced to an additional 2 years’ imprisonment for money laundering. The court also ordered Hassan and Alexander to pay $150,314 in restitution to the identified victims of the fraud scheme.
A federal jury found Hassan and Alexander guilty on November 6, 2018.
According to testimony and evidence presented at trial, Hassan and Alexander participated in a fraudulent sweepstakes scheme that operated in the Middle District of Florida and Jamaica. Members of the conspiracy targeted victims throughout the United States, many of whom were elderly, and falsely informed them that they had won a multi-million dollar prize in a sweepstakes contest. The conspirators instructed the victims to wire funds to “representatives” in Orlando in order to prepay fees and taxes associated with the prize. Upon receipt of the funds, other members of the conspiracy converted the funds to money orders and cash. They then paid Hassan, who operated several money transfer businesses, to wire the fraud proceeds to Jamaica.
Alexander stole the personal identity information belonging to more than 35 individuals from her workplace and gave that information to her co-conspirators. Hassan then used the stolen identity information to launder the funds. In less than two years, Hassan and his co-conspirators transferred $4.7 million in funds, obtained from victims, to conspirators in Jamaica.
The court previously sentenced the following members of the conspiracy:
Charlton Morris (39, Casselberry) pleaded guilty to conspiracy to commit money laundering. He was sentenced to 10 years, 1 month in prison.
Robert Blake Madurie (29, Jamaica) pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. He was sentenced to eight years in prison.
Danny Lopez (32, Orlando) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to seven years and eight months in prison.
Treysier LaPalme (25, Orlando) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to seven years and three three months in prison.
Oral Anthony Stewart (35, Lithonia, Georgia) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to five years in prison.
This case was investigated by the Department of Homeland Security and the SCIRS Federal Financial Crimes Task Force, whose members include the IRS- Criminal Investigation, the Brevard County Sheriff’s Office, the St. Cloud Police Department, the Osceola County Sheriff’s Office, the Winter Park Police Department, the Casselberry Police Department, the Kissimmee Police Department, the Maitland Police Department, the Palm Bay Police Department, and the U.S. Secret Service. It was prosecuted by Assistant United States Attorneys Karen L. Gable and Roger B. Handberg.
McAlester Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ronnie Lee Faulconer, age 54, of McAlester, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 992(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both. However, if the court deems the defendant to be an Armed Career Criminal, the offense is punishable by not less than 15 years imprisonment.
The Indictment alleges that on or about December 9, 2018, in the Eastern District of Oklahoma the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the McIntosh County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Maryland Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Freddie Emerson Crockett, age 40, of Earleville, Maryland, to 10 years in prison, followed by lifetime supervised release for possession of child pornography. In imposing this sentence, the Court also found that Crockett had transported child pornography. Crockett will also pay $500 in restitution to one of the victims depicted in the images of child pornography that he possessed and transported. In addition, upon his release from prison, Crockett must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, Crockett used two accounts on a social networking account to store, transport, and possess child pornography. Specifically, between October 20, 2016 and October 24, 2017, Crockett used several email addresses to upload child pornography to his social networking accounts. On October 3, 2017, Yahoo deactivated one of Crockett’s accounts, and the associated email address, for possession of child pornography. The next day, Yahoo reported to the National Center for Missing and Exploited Children (NCMEC) that someone using that email address had uploaded 133 files containing possible child pornography. Yahoo provided additional information to NCMEC, including the phone number and other email addresses associated with the owner of the account, as well as reporting Crockett’s possible association with the account. On October 17, 2017, NCMEC provided Yahoo’s report to the Maryland State Police. On October 3, 2017, the same day Yahoo deactivated one of his accounts for uploading and possessing child pornography, Crockett created a new account with a new email address, and used that account to upload additional images of child pornography. Yahoo again filed a report with NCMEC, who also provided that report to the Maryland State Police.
Further investigation led the Maryland State Police to execute a search warrant at Crockett’s residence in Earleville on November 22, 2017. An on-scene forensic preview of the memory card from Crockett’s cell phone located several images of child pornography. Crockett’s phone, the memory card, and his laptop were seized. A forensic examination of those items revealed more than 75 images depicting child pornography, including several images of a prepubescent female engaged in sexually explicit conduct.
Crockett was already a sex offender based on two 2010 convictions in the Circuit Court for Cecil County for surreptitiously recording 13 and 16-year-old females while they were changing clothes in a bathroom at his residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Judson T. Mihok, who prosecuted the federal case.
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Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Nicole Renee Kemp, 42, of Lincoln, was sentenced today to five years and three months, (63 months) in federal prison by Senior United States District Richard G. Kopf for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of actual (pure) methamphetamine. Following the prison term, Kemp will serve three years on supervised release.
Information provided to law enforcement indicated that between July of 2016 and September of 2017, Kemp was involved in the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture and at least 150 grams (over five ounces) of actual (pure) methamphetamine.
In August of 2017, Kemp was stopped by the Lincoln Police Department where officers found over a pound of methamphetamine in the car she was driving. At the time of that stop, Kemp told officers she did not know there was methamphetamine in the car, but she said her co-defendant, Bryant Omonttez Williams, was in the car earlier moving a box around in the backseat.
In September of 2017, a confidential informant, working with investigators, contacted Kemp. Kemp told the informant that Williams had methamphetamine for sale. Williams provided the informant with approximately 1/8 ounce of methamphetamine. On the following day, Kemp met with the informant and collected the money owed for the methamphetamine provided on the previous day by Williams.
Williams also pleaded guilty to the conspiracy charge and was sentenced in October of 2018 to 262 months in federal prison.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lewis County man sentenced for drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – John David Davisson, of Weston, West Virginia, was sentenced today to 123 months incarceration for firearms and methamphetamine distribution charges, United States Attorney Bill Powell announced.
Davisson, age 28, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Carry a Firearm During a Drug Trafficking Crime” in October 2018. Davisson admitted to possessing a .45-caliber pistol and two 9mm pistols while possessing crystal methamphetamine, also known as ice, in October 2017 in Lewis County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives and the Lewis County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Leader of Hooligans Motorcycle Gang Admits Stealing Jeeps throughout San Diego CountyRead the Press Release
Assistant U.S. Attorneys Andrew J. Galvin (619) 546-9721 and Joseph S. Green (619) 546-6955
NEWS RELEASE SUMMARY – March 26, 2019
SAN DIEGO – Jimmy Josue Martinez, a leader of the Hooligans motorcycle gang, pleaded guilty today and admitted to participating in a sophisticated scheme to steal dozens of Jeep Wranglers in San Diego County using handheld electronic devices and stolen codes.
According to court records, the Hooligans are responsible for the theft of more than 150 Jeep Wranglers worth approximately $4.5 million within San Diego County since 2014. The Hooligans used high-tech methods to disable security systems and steal Jeeps in just a few minutes, in the middle of the night, while unsuspecting owners slept nearby. After stealing the Jeeps in San Diego County, the Hooligans transported them to Tijuana, Mexico, where the vehicles were sold or stripped for parts.
In his plea agreement, Martinez admitted to stealing Jeeps in Pacific Beach, Serra Mesa, Chula Vista, Mission Valley, Ocean Beach, Hillcrest and North Park. Martinez also admitted to leading one of the Hooligans theft crews, which would target a specific Jeep days before the actual theft would take place. Martinez and members of his theft crew obtained the vehicle identification number in advance and then managed to get secret key codes, which allowed them to create a duplicate key for that particular Jeep. Then, during the theft, they disabled the alarm system, programmed the duplicate key using a handheld electronic device, and quietly drove away without notice.
In November 2014, San Diego Police Department patrol units attempted to stop Martinez after he participated in the theft of a Jeep in Mira Mesa. Martinez failed to pull over and drove south along Interstate 805 at speeds exceeding 120 miles per hour. Customs and Border Patrol officers unsuccessfully attempted to stop Martinez at the United States/Mexico border. In his plea agreement, Martinez admitted to ramming a vehicle stopped in front of him multiple times in order to maneuver around concrete barriers and drive south into Mexico.
“The joy ride is over for Mr. Martinez,” said U.S. Attorney Robert Brewer. “These thefts were audacious and sophisticated and created hassle and heartache for scores of Jeep owners. I congratulate prosecutors Andrew Galvin and Joseph S. Green, the FBI and members of the Regional Auto Theft Task Force for putting together a strong case against a gang that, unfortunately, has lived up to its name.”
“This case is a reminder that our proximity to the international border provides increased opportunity for transnational organized crime,” said FBI Acting Special Agent in Charge Suzanne Turner. “The Hooligans crime group took advantage of this proximity by stealing millions of dollars’ worth of vehicles from San Diegans in order to hide, chop, sell, and profit from those vehicles in Mexico. The FBI worked day and night, alongside our partners at the Regional Auto Theft Task Force (RATT), to bring Martinez, the leader of this transnational organization, to justice.”
Martinez and eight other members of the Hooligans were charged in a grand jury indictment in May 2017. As part of his plea, Martinez agreed to pay at least $246,396 in restitution. Martinez will appear for sentencing on June 24, 2019 at 10:30 a.m. before U.S. District Judge John A. Houston. Of the nine Hooligans charged, six have pleaded guilty and three remain fugitives.
DEFENDANT: Case Number 17-CR-1314-JAH
Jimmy Josue Martinez Age: 33 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Commit Transportation of Stolen Vehicles in Foreign Commerce – Title, 18 U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment; $250,000 fine; restitution.
AGENCIES
Federal Bureau of Investigation
Regional Auto Theft Task Force, which includes the following agencies: U.S. Border Patrol
California Highway Patrol
National Insurance Crime Bureau
California Department of Insurance
California Department of Motor Vehicles
San Diego County District Attorney’s Office
San Diego County Probation Department
San Diego County Sheriff’s Department
ICE Enforcement and Removal Operations and police departments from La Mesa, Chula Vista, National City, Oceanside and San DiegoLake Charles man sentenced to 57 months in prison for distributing methamphetamineRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Paul Loudin, 40, of Lake Charles, was sentenced Monday to four years and nine months in prison by U.S. District Judge Donald E. Walter for distribution of methamphetamine.
Law enforcement agents executed a search warrant on March 14, 2017 at Loudin’s home in Lake Charles and found approximately 586 grams of methamphetamine and 728 ecstasy pills. Loudin admitted during his guilty plea on December 14, 2018 that he was aware the drugs were located at his residence and that he intended to distribute them.
Homeland Security Investigations and the Combine Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Keene Man Sentenced to 20 Years for Sexually Exploiting a ChildRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Benjamin Gagnon, 35, of Keene, New Hampshire, was sentenced today in U.S. District Court in Concord, New Hampshire by Judge Joseph A. DiClerico, Jr. to 20 years in prison and eight years of supervised release for sexual exploitation of a minor. Gagnon pleaded guilty to the charge on September 13, 2018.
According to court records, in January 2017, Gagnon, who was in New Hampshire, persuaded and induced a minor female in Texas to create still images and videos depicting the minor engaging in sexually explicit conduct. The minor then transmitted the images and videos to Gagnon over the internet. Gagnon later uploaded the images to an online account, where they were found by investigators in August 2017.
“The defendant in this case used online messaging applications to target children and sexually exploit vulnerable victims, a dangerous type of criminal threat that all parents should understand and about which they should educate their children,” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston. “With any Internet connection or a smart phone, even the youngest of children are susceptible to this type of trickery and criminal exploitation. Cases like this are why HSI will continue to join forces with the New Hampshire Internet Crimes Against Children (ICAC) Task Force to combat the sexual exploitation of children.”
The investigation was conducted by HSI; the Keene Police Department; and the ICAC Task Forces located in New Hampshire, North Carolina, and Houston, Texas.
The 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.
Justice Department Files Statement of Interest in New York Church Religious Land Use CaseRead the Press Release
WASHINGTON – The Justice Department today filed a Statement of Interest in U.S. District Court for the Northern District of New York supporting a church’s claim that the Village of Canton, New York, violated its rights under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by barring it from locating its church in the Village’s commercial zoning district.
“Federal law protects the ability of religious groups of all faiths to locate and grow their worship sites in communities across the country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “It includes a requirement that religious assemblies be treated equally with nonreligious assemblies. The Department of Justice is committed to enforcing this and other federal protections for religious freedom.”
“The right to the free exercise of religion includes the freedom to assemble in a house of worship,” said Grant C. Jaquith, United States Attorney for the Northern District of New York. “When faith communities face discrimination through zoning or land use regulation, we will use the full force of federal law to ensure that this fundamental right is not unlawfully infringed.”
The case, Christian Fellowship Centers of New York, Inc. v. Village of Canton, involves a congregation that purchased property in the Village’s commercial zoning district to use for worship. After the Village denied zoning approval, the church filed a lawsuit alleging that the Village violated RLUIPA because the Village permits other assemblies in the commercial district, including theaters, fraternal organizations and social clubs. The church also stated in court filings that it is seeking to hold worship services this Sunday, March 31, at the property it purchased in the commercial zoning district. The church has no other location options to hold its religious services on that date.
The United States’ Statement of Interest supports the Christian Fellowship Centers of New York Inc.’s argument that RLUIPA’s “equal terms” provision treated the church less favorably than the various other groups permitted in the district.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its Place to Worship Initiative, which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.
Justice Department Files Statement of Interest in New York Church Religious Land Use CaseRead the Press Release
The Justice Department today filed a Statement of Interest in U.S. District Court for the Northern District of New York supporting a church’s claim that the Village of Canton, New York, violated its rights under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by barring it from locating its church in the Village’s commercial zoning district.
“Federal law protects the ability of religious groups of all faiths to locate and grow their worship sites in communities across the country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “It includes a requirement that religious assemblies be treated equally with nonreligious assemblies. The Department of Justice is committed to enforcing this and other federal protections for religious freedom.”
“The right to the free exercise of religion includes the freedom to assemble in a house of worship,” said Grant C. Jaquith, U.S. Attorney for the Northern District of New York. “When faith communities face discrimination through zoning or land use regulation, we will use the full force of federal law to ensure that this fundamental right is not unlawfully infringed.”
The case, Christian Fellowship Centers of New York, Inc. v. Village of Canton, involves a congregation that purchased property in the Village’s commercial zoning district to use for worship. After the Village denied zoning approval, the church filed a lawsuit alleging that the Village violated RLUIPA because the Village permits other assemblies in the commercial district, including theaters, fraternal organizations and social clubs. The church also stated in court filings that it is seeking to hold worship services this Sunday, March 31, at the property it purchased in the commercial zoning district. The church has no other location options to hold its religious services on that date.
The United States’ Statement of Interest supports the Christian Fellowship Centers of New York Inc.’s argument that RLUIPA’s “equal terms” provision treated the church less favorably than the various other groups permitted in the district.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its Place to Worship Initiative, which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at http://www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.
Iowa Man Sentenced for Illegally Possessing FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Hawarden, Iowa, man convicted for being a felon in possession of a firearm was sentenced on March 25, 2019, by U.S. District Judge Karen E. Schreier.
Austin Joseph Gengler, age 28, was sentenced to 67 months in custody, concurrent to a state sentence he is currently serving, to be followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Gengler was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury on October 10, 2018. He pled guilty on December 10, 2018.
Law enforcement arrested Gengler on May 8, 2018, for absconding parole. His vehicle was searched and a .410 gauge shotgun was located. Gengler is prohibited from possessing firearms because he is a convicted felon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Sioux Falls Area Fugitive Task Force, the Minnehaha County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Gengler was returned to the Mike Durfee State Prison in Springfield, South Dakota, to finish his state sentence. He will then be taken to a federal institution to serve his sentence in this matter.
Indictment: Troopers Found 50+ Pounds of Meth Hidden in CarRead the Press Release
WICHITA, KAN. – A California man was indicted Tuesday on a federal charge of smuggling more than 50 pounds of methamphetamine into Kansas, U.S. Attorney Stephen McAllister said.
Jesus Antonio Garcia-Maldonado, 36, Panorama City, Calif., is charged with one count of possession with intent to distribute approximately 23 kilograms of methamphetamine. Garcia-Maldonado was stopped for a traffic violation in Clark County, Kan. Officers found the drugs under the seats and hidden in rear quarter panels of the car. The car was rented in San Diego, Calif.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million. The Clark County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Mona Furst is prosecuting.
OTHER INDICTMENTS
Edgar Santiago, 31, Fontana, Calif., and Alyssa Kysha Gomez, 29, Adelanto, Calif, is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Jan. 16, 2019, in Geary County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Keayon M. Hadley, 41, Independence, Kan., is charged with two counts of unlawful possession of a firearm by a convicted felon. The crimes are alleged to have occurred Feb. 19, 2019, in Wichita, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on each count. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Daniel Wood, 29, is charged with one count of unlawful possession of a firearm by a convicted felon and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred Feb. 23, 2019, in Wichita, Kan.
If convicted, he faces up to 10 years in prison and a fine on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Simon Rochel-Cervantes, 46, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found March 5, 2019, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement HSI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Jacob E. Silcott, 29, Wichita, Kan., is charged in a superseding indictment with one count of unlawful possession of a sawed off shotgun, one count of unlawful possession of a firearm by a convicted felon, and one count of unlawful possession of ammunition by a convicted felon. The crimes are alleged to have occurred in May and December 2018 in Wichita, Kan.
If convicted, he faces up to 10 years in federal prison and a fine on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran Man Pleads Guilty to Third Illegal EntryRead the Press Release
NORFOLK, Va. – A Honduran man pleaded guilty today to illegally reentering the United States for a third time.
According to court documents, Luis Omar Vallarez-Martinez, 36, first entered the United States illegally in April 2006, by wading across the Rio Grande river. He was apprehended by immigration authorities in Texas and removed back to Honduras. He again illegally entered the country in March 2009, and was again promptly removed. At some point, he illegally entered the United States for a third time. He was found in Norfolk in November 2018, when he was arrested on charges of public intoxication, brandishing a firearm, and reckless handling of a firearm.
Valladarez-Martinez pleaded guilty to reentry by an excluded, deported, and removed alien and faces a maximum penalty of two years in prison when sentenced on July 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorney V. Kathleen Dougherty is 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. 2:19-cr-12.
Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that BENICIO VASQUEZ, 32, of Hartford, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of unlawful possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, on July 19, 2018, Hartford police arrested Vasquez and a subsequent search of his residence revealed a Taurus .357 caliber revolver loaded with six rounds of ammunition.
Vasquez’s criminal history includes state felony convictions for drug and money laundering offenses.
Vasquez has been detained since his arrest. Judge Bolden scheduled sentencing for June 24, 2019, at which time Vasquez faces a maximum term of imprisonment of 10 years.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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 neighborhoods safer for everyone.
Hardy County man sentenced for his role in heroin distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Brandon David Fout, of Oil Fields, West Virginia, was sentenced today to five years probation for his role in a heroin distribution ring, United States Attorney Bill Powell announced.
Fout, age 23, pled guilty to one count of “Interstate Travel in Furtherance of a Drug Crime” in July 2016. Fout traveled to Maryland from West Virginia to assist in the distribution of heroin in June 2015.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the West Virginia State Police, the West Virginia State Police Criminal Bureau of Investigations, and the Hardy County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Prior DeportationRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to over four months in federal prison.
Julian Pol-Xan, age 42, a citizen of Guatemala illegally present in the United States and residing in Marshalltown, Iowa, received the prison term after a January 16, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Pol-Xan admitted he had previously been deported from the United States in August 2003 and illegally reentered the United States in 2005 without the permission of the United States government. Pol-Xan was deported after he was found to be working at a meat packing plant in Dakota City, Nebraska, under a fake name and using fraudulent identification documents.
In November 2018, Pol-Xan was found by immigration agents after he was detained by the Meskwaki Nation Police Department in Tama, Iowa, after Pol-Xan attempted to enter the Meskwaki Casino using a fraudulent identification card.
Pol-Xan was sentenced in Cedar Rapids by United States District Court Judge C. J. Williams. Pol-Xan was sentenced to 127 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Pol-Xan is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0115.
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Grayson County Woman Pleads Guilty to Health Care FraudRead the Press Release
Abingdon, VIRGINIA – A Troutdale, Va. woman, who worked as a Consumer Directed Services Facilitator (CDSF) to assist elderly and disabled Virginia Medicaid recipients, pleaded guilty yesterday in federal court to healthcare fraud, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring announced.
Crystal Michelle Smith, 50, pleaded guilty yesterday to one count of health care fraud. At sentencing, she faces up to ten years in prison and up to a $250,000 fine.
“Protecting federal health-care programs and their beneficiaries from fraud, waste, and abuse is among the top priorities of the U.S. Department of Justice,” U.S. Attorney Cullen stated today. “We will continue to work closely with the Virginia Attorney General’s Office and the Medicaid Fraud Control Unit to investigate individuals and entities, like this defendant, who abuse the trust of these programs and the people they are supposed to serve.”
“We will continue to work closely with our federal partners to root our provider fraud because it weakens this important program for those who truly need it,” said Attorney General Mark R. Herring.
According to information presented at yesterday’s guilty plea by Special Assistant United States Attorney and Virginia Assistant Attorney General Janine M. Myatt, Smith entered into a provider agreement with the Department of Medical Assistance Services (DMAS) and received payments from 2011 to 2018. The payments were for services provided to Medicaid recipients through Virginia Medicaid’s Commonwealth Coordinated Care Plus Waiver Program, formerly known as the Elderly or Disabled with Consumer Direction Waiver Program.
However, a review of Smith’s case files and Medicaid Billing reels, show Smith billed DMAS for 1,732 reassessment, routine visits and training that did not have the required supporting documentation or did not occur at all. Smith admitted to making copies of recipient’s signatures on DMAS forms, which she then re-used to create subsequent forms.
From August 2011 to March 2018, Smith fraudulently billed DMAS $121,435 and was paid $113,877.
The investigation of the case was conducted by the Virginia Attorney General’s Office Medicaid Fraud Control Unit. Special Assistant United States Attorney and Assistant Attorney General Janine M. Myatt is prosecuting the case for the United States.
Georgia women sentenced for stealing HUD funds intended for disabled women and childrenRead the Press Release
ATLANTA - Janice Cooks has been sentenced for stealing hundreds of thousands of dollars in Department of Housing and Urban Development (HUD) funds intended for housing for disabled women and their children.
“The defendant obtained nearly a million dollars from HUD in grant funds designated for housing for disabled women and children,” said U.S. Attorney Byung J. “BJay” Pak. “Cooks intentionally mismanaged the money, spent it on personal and business expenses not covered by the grant, and ultimately caused the intended recipients to lose their homes.
“This sentencing proves our continuing resolve to root out thievery in all forms, especially when the funds involved should have been used to help vulnerable members of our society,” said Nadine Gurley, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development. “We will continue to work with our law enforcement partners and the U.S. Attorney’s Office to protect the integrity of our housing programs.”
“Whether it’s housing benefits for eligible individuals, or Social Security payments to disabled persons, the Social Security Office of the Inspector General is committed to working with our Federal, State and local law enforcement partners to combat fraud, waste, and abuse in benefit programs,” said Wayne R. Warren, Acting Special Agent-in-Charge of the SSA OIG Atlanta Field Division. “Cases like this keep us focused on pursuing bad actors to protect Social Security and other benefits for those whose truly depend on them.”
According to U.S. Attorney Pak, the charges and other information presented in court: During the years 2012 through 2015, HUD awarded Cooks three grants to fund the Quilt SOLE program; a program to provide housing for disabled women and children. Prior to receiving any grant funds, she was required to submit a detailed budget outlining the costs of her program and also attend a training conference to ensure she understood the rules and regulations surrounding receiving federal grant funds. The program rules required that she spend funds only in a manner consistent with her detailed budget and that she maintain documentation to justify all of her spending.
HUD approved funds for the Quilt SOLE to rent 14 apartments thus providing housing for 14 disabled women and their children. Cooks failed to adhere to the budget she created and to follow the program’s rules. In 2012, she requested and received approximately $125,000 in HUD funds. Instead of spending those funds on Quilt SOLE, she transferred over $59,000 into her own personal savings account.
Additionally, despite receiving funding for only 14 apartments, Cooks rented between 22 and 24 apartments at the same apartment complex. She also used HUD funds on business expenses not related to the Quilt SOLE program and on personal expenses like travel, dining out, and shopping. As a result of her misappropriation of the HUD funds in 2015, every family she was supposed to provide housing for received eviction notices and were forced to find other places to live.
Janice Cooks, 53, of Lithonia, Georgia, has been sentenced to four months in prison and eight months of home confinement to be followed by three years supervised release, and ordered to pay a $100 special assessment, and pay restitution of $198,907 to HUD and $35,812.51 to Ashley Cascade Apartments. Cooks was convicted of these charges on September 8, 2017, after she pleaded guilty.
This case was investigated by the Department of Housing and Urban Development and Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman and Assistant U.S. Attorney John S. Ghose prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fourth Paterson, New Jersey, Police Officer Charged with Conspiracy to Violate Civil RightsRead the Press Release
NEWARK, N.J. – A City of Paterson police officer was arrested today and charged with conspiring to violate the civil rights of motor vehicle occupants and others in Paterson, New Jersey, U.S. Attorney Craig Carpenito announced.
Daniel Pent, 32, of Paterson, was arrested by special agents of the FBI on a complaint charging him with conspiring to deprive individuals of civil rights under color of law. Pent is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Pent, and other Paterson police officers, including Eudy Ramos, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. Pent, Ramos, and others also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from those individuals.
On Feb. 1, 2017, Pent and Ramos stopped and searched a vehicle in Paterson, detained and handcuffed the occupants, and stole approximately $10,000 from one of the occupants. Pent told Ramos that either they should take all of the money or they should take none of it, and they chose to take all of it. They split the money between themselves. Pent and Ramos subsequently arrested the victim and charged the victim with loitering in a drug area. Pent filled out a prisoner property report for the victim that falsely stated that the victim had approximately $36 on his person. Ramos and Pent submitted an incident report in which they omitted the fact that they had located, and seized, $10,000 from the victim.
A federal grand jury indicted Ramos on March 20, 2019, for his role in the conspiracy and other civil rights and false records charges. His case is pending before U.S. District Judge Katharine S. Hayden.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Founder of Lee County-Based Company Sentenced for Wire and Securities FraudRead the Press Release
Montgomery, Alabama – Today, Kyle Geoffrey Sandler, 43, of Auburn, Alabama, was sentenced to 63 months of imprisonment for wire and securities fraud, announced Louis V. Franklin, Sr., U.S. Attorney for the Middle District of Alabama, Joseph P. Borg, Director of the Alabama Securities Commission, and James E. Jewell, Special Agent in Charge for the FBI. Those charges stemmed from a scheme in which he solicited and accepted nearly $2 million from over 70 investors while selling securities of a company that was not registered on a national securities exchange. Sandler’s prison term will be followed by 3 years of supervised release. There is no parole in the federal system. Sandler was also ordered to pay $1,903,000.00 in restitution to his victims.
Evidence showed that from 2015 through 2016, Sandler founded and managed a company called The Roundhouse LLC (Roundhouse), based in Lee County, Alabama. Throughout the Auburn and Opelika communities, Sandler advertised that Roundhouse was a business incubator that helped new and startup companies develop by providing services such as venture capital, office space, 1-gigabit internet, and management training in return for equity in the companies. During the course of his business, Sandler accepted approximately $1.9 million from at least 74 investors and he knowingly sold shares in Roundhouse that were not registered on a national securities exchange. In exchange for the fraudulently obtained investments, Sandler issued stock in Roundhouse and oversold the equity by approximately one hundred percent.
In addition, Sandler made false statements and omitted facts to investors. For example, Sandler misrepresented to potential Roundhouse investors in Lee County that he was a successful entrepreneur who was paid millions of dollars from Google as a former employee although he never actually worked for the tech company. He also failed to disclose to investors that he had two prior criminal convictions based on fraudulent conduct, nor did he tell Roundhouse investors that he was using their funds for personal expenses such as childcare services, rent payments, the purchase of automobiles and other personal items and/or services.
“Mr. Sandler violated the trust of his investors with lies and deception,” said U.S. Attorney Franklin. “They trusted him with their hard earned money, and he used it as his personal piggybank. My office will continue to work with our law enforcement partners to protect the community from these types of schemes.”
Joseph P. Borg, Director of the Alabama Securities Commission said, “The Commission is always proud to work with the U.S. Attorney’s Office, Middle District of Alabama, and the FBI, to protect Alabama citizens from illegal securities offerings and fraudulent activities. Today, the hard work and the collective professional efforts of all enforcement agencies involved provided justice and hopefully sends a message that financial fraud will not be tolerated in Alabama.”
FBI Special Agent in Charge James Jewell stated, “The men and women of the FBI stand ready to fight this type of deception of innocent investors. We appreciate the work of the Alabama Securities Commission as well as the United States Attorney’s Office and look forward to partnering with them in the future to eradicate this type of behavior.”
The case was investigated by the Federal Bureau of Investigation (FBI) and the Alabama Securities Commission. The case was prosecuted by Assistant United States Attorney Denise O. Simpson, Special Assistant United States Attorney Amanda W. Senn, and former Middle District Assistant United States Attorney Steven H. Lee.
Fostering Corporate Cooperation and Communication to Promote the Rule of LawRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain was honored to speak today at the Association of Corporate Counsel of Greater Philadelphia’s Summit for General Counsel and Chief Legal Officers. The event was held at the Loews Philadelphia Hotel. Richard E. Coe, U.S. Attorney McSwain’s former law partner at Drinker Biddle, introduced U.S. Attorney McSwain.
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Remarks as Prepared for Delivery
Thank you, Rick, for that kind introduction, and for inviting me to speak today to this distinguished group.
Opportunities like this serve as an important reflection point for me; they give me a reason to set aside some time, outside of the day-to-day hustle and bustle, to pause and think about the goals and priorities that I have for the U.S. Attorney’s Office and force me to evaluate our progress.
Obviously, my main priority, and our core function, is to uphold the rule of law. I firmly believe that building trust between the public and my Office is critical to success in that regard. That’s one of the reasons why I think it’s important to speak at events like this – to let community partners get a sense of who we are as prosecutors; what my Office stands for; and what our mindset is as we work every day to fulfill our mission. And by “community partners,” I am referring today to you and the companies and clients that you work for. You and your colleagues are the business leaders that drive economic growth in the greater Philadelphia area.
Which brings me to the topic of my remarks: fostering cooperation and communication to promote the rule of law. I see today’s summit as an opportunity to convey two important messages.
First, I want to thank you. The work that you do to promote your company’s compliance with federal law is incredibly important. In a way, you serve a crucial law enforcement function every day by working to ensure that your companies comply with the law. You are on the front lines of promoting the rule of law in your organizations. And in performing that function, I want you to know that you have my support and my gratitude.
Now, admittedly, my second message will take a little longer to communicate, even though it is related to the first. In a nutshell, I want you to know that I value communication between your organizations and my Office and I value the cooperation of your organizations with my Office. I want you, our region’s corporate leaders, to consider yourself as a potential partner of my Office in detecting and combatting corporate misconduct and crime.
Let me explain that further.
The spirit of cooperation that I’m talking about is reflected, for example, in some of the recent policy changes implemented at the Department of Justice level. Thanks to a series of initiatives and policy adjustments, the Department is now making white collar prosecutions and enforcement more effective and efficient.
There’s one area in particular that I want to emphasize today – that is, recent changes to the Department’s policies concerning cooperation credit in criminal and civil matters. Most – if not all – of you are familiar with the Yates Memo, which was issued in September 2015 by then-Deputy Attorney General Sally Yates. Broadly speaking, the Memo was designed to seek accountability from individuals for corporate misconduct. As Deputy Attorney General Rod Rosenstein explained when he announced changes to the Yates Memo in November 2018, the revised policy came out of a working group comprised of Department employees, law enforcement agents, and private sector stakeholders. So the changes were the product of collaboration between government and private sector lawyers and communication about priorities, concerns, and past experiences under the Yates Memo and the policy guidance that followed.
The revised policies regarding cooperation credit continue to emphasize – in both criminal and civil cases – the importance of full corporate disclosure and individual accountability. Both are cornerstones of the Department’s approach to dealing with corporate misconduct, but the current policies reflect a more nuanced, common-sense approach to determining when cooperation credit can and should be offered.
The Yates Memo directed DOJ attorneys to offer cooperation credit in criminal and civil matters only if corporations identified and shared with DOJ all relevant facts about the individuals involved in corporate misconduct. Anything considered less than 100% disclosure of every person even tangentially involved and every fact about what they did disqualified the corporation from credit. The result, as Deputy Attorney General Rosenstein acknowledged, was often prolonged, costly investigations that ultimately led to the same result as the current standard – with the government applying notions of fairness and the rule of law to hold only the most responsible parties accountable.
The current policy now creates some flexibility where there was none before, and it reflects the reality inherent in these types of investigations: identifying every single person and every single fact relevant to alleged misconduct is not only impractical, but also unnecessary to achieve the Department’s goals. So, under the current policy, companies can receive cooperation credit in criminal cases where the company has identified every individual “substantially involved in or responsible for the criminal conduct.”
The policy revisions also provide meaningful changes to DOJ’s approach to resolving civil cases. Prior DOJ policy prohibited our civil attorneys from offering any cooperation credit to a company in the civil context unless the company complied with the all-or-nothing approach of the Yates Memo. But now, our civil attorneys have the ability to offer partial cooperation credit in civil cases in certain circumstances, and can offer full cooperation credit when the company identifies those “substantially involved.” As Mr. Rosenstein observed, the binary choice of full credit or no credit embodied in the Yates Memo “delayed resolution while providing little or no benefit.” Instead of furthering the goal in civil cases of recovering money, the prior policy drained our resources and resulted in prolonged investigations.
All told, these and other revisions reflect a measured approach that balances the competing interests at stake. And yes – these policies can promote collaboration and communication between our organizations. How so? Because they afford companies a more realistic path towards receiving credit and allow DOJ attorneys to focus efforts on identifying targets who are the true wrongdoers – those who committed, directed or supervised the underlying misconduct and who warrant punishment. And they restore a measure of discretion to DOJ attorneys in deciding what information they must obtain during an investigation.
These policies promote the sort of deterrence that the Department and my Office want to see in the corporate community. The most effective way to deter corporate misconduct is to punish those individuals who are actually responsible for it – most seriously, those individuals who actually committed a crime. Within your organization, I want you to focus your attention on that and help me and my Office get to the bottom of the issue, as quickly as possible.
As these new policies are applied on a case-by-case basis, rest assured that my Office welcomes an open dialogue with you and your clients as we perform our core function – to enforce the rule of law and ensure that individuals substantially involved in corporate wrongdoing are identified, prosecuted, and punished. I understand that most companies want to do the right thing. And I understand that the people in this room – highly educated and successful legal professionals who take your ethical responsibilities seriously and have taken an oath to uphold the law – certainly want to do the right thing. As Deputy Attorney General Rosenstein has stated: “companies that self-report, cooperate, and remediate the harm they caused will be rewarded. Companies that condone or ignore misconduct will pay the price.” In large part, the choice is up to you, and I hope and expect that you will make the right choice, should you find yourself confronted with it.
The benefits that can flow from open lines of communication and a cooperative approach are clear if your client is the target of a criminal or civil investigation. But these benefits are not limited to that situation. Indeed, I want you to think of my Office as an important ally when your business has been victimized – say, for example, by employees or customers who are stealing from your company. Unfortunately, these situations are all too common. And when they occur, it’s important to view my Office as a critical resource – as a partner whose interests are aligned with yours.
Here are a few examples of what I mean. This past year, my Office prosecuted high-level GlaxoSmithKline employees, scientists who were Chinese nationals, for conspiracy to steal trade secrets from the company. These employees were helping to develop biopharmaceutical products – assets that typically cost in excess of $1 billion to research and develop – and then stealing them from GSK and sending them to China. In doing so, these criminals were attempting to destroy the lifeblood of the company – stealing its intellectual property and engaging in economic warfare.
GSK was an excellent partner with my Office, working shoulder-to-shoulder with our prosecutors and cooperating so that we could collect the necessary information to hold the responsible individuals accountable. And we did just that. Dr. Tao Li, Dr. Yu Xue, and Dr. Yan Mei, were prosecuted for their crimes; all have pled guilty and await sentencing.
Another example of this collaborative approach is found in the insider trading case involving former Philadelphia Eagle, Mychal Kendricks, and his friend, Damilare Sonoiki. Mr. Sonoiki worked at a global investment firm and used material, non-public information to turn an illegal profit, and provided such information to Mr. Kendricks to do the same. Mr. Sonoiki’s former corporate employer fully cooperated with my Office and with the Securities and Exchange Commission during our investigation into this unlawful conduct. The company’s cooperation allowed us to uncover key information, and quickly identify and prosecute the wrongdoers. Mr. Kendricks and Mr. Sonoiki have pleaded guilty and await sentencing.
A good example of a recent crime prevention initiative is our public service campaign to deter Hobbs Act robberies in the Eastern District of Pennsylvania. Our Office is working with local and national convenience stores, drugstores, and fast food chains to alert the public (and criminals) that if you walk into a business and attempt to rob it, we can prosecute that crime federally – and the potential penalties are steep, especially if the crime involves a gun. This partnership is crucial to communicating a unified, powerful deterrent message – that “a federal crime means federal prison time” for the perpetrators. We will continue to work with our corporate partners to create public service announcements and promotional materials that highlight our commitment to keeping our streets and storefronts safe.
In conclusion, we at the U.S. Attorney’s Office take very seriously our responsibility to investigate and prosecute criminals who commit corporate misconduct. As I have pledged from day one, my Office will enforce the law in a fair and non-partisan manner, regardless of who you are, where you come from, or how much power or influence you have. We will apply that neutral principle to corporations and senior leaders who commit crimes or direct others to do so.
But the other takeaway from my remarks today, I hope, is that my Office and I are also here to help you do your job. As I said previously, most companies and their leaders want to do the right thing. Fostering communication and cooperation will only help us get to the right result – which is to hold wrongdoers accountable and to deter misconduct.
Again, I appreciate the opportunity to be with you today. Thank you for your attention, and thank you for your commitment to the rule of law.
Fort Wayne Man Sentenced to 33 Months in Prison and Ordered to Pay $585,652.78Read the Press Release
FORT WAYNE – Gregory Lutz, 49 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to wire fraud, announced U.S. Attorney Kirsch.
Lutz was sentenced to 33 months in prison. As part of the sentence, the court, in addition to entering a money judgement in the amount of the proceeds from the scheme ($585,652.740, also ordered restitution to the two victims).
According to documents in the case, between Sept 2016 and May 2018, defendant, employed as controller of a local company, embezzled funds from the company’s bank accounts which he used to wire payments to his debts on his personal credit cards. He concealed his conduct from the employer by whiting out the wire transactions in the company’s bank records and recorded the payments in the company’s books as payment to one of the company’s largest vendor but the numbers were significantly out of sequence and in reality, were never printed signed nor cashed. The amount of the “checks” matched the amount of company funds the defendant used to pay his credit cards each month.
This investigation was conducted by the FBI’s Indiana Financial Crimes Task Force with the assistance of the Indiana State Police. The case was prosecuted by Assistant U. S. Attorney Tina Nommay.
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Former Union Official Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – A former union official pleaded guilty today in federal court in Worcester to embezzlement from Local B-935 of the International Alliance of Theatrical Stage Employees (IATSE).
IIvar Carlson, 58, of Auburn, pleaded guilty to one count of embezzlement from a labor union. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 9, 2019. Carlson was charged in December 2018 and released on conditions.
Carlson was the former business agent and treasurer for Local B-935 of the IATSE, which represented workers at the DCU Center in Worcester. From around March 2007 until September 2016, Carlson embezzled approximately $37,014 belonging to Local B-935 by writing checks from the Local B-935’s bank account, cashing those checks, and using the cash for his own personal expenses.
Carlson faces a sentence of no greater than five years in prison, up to three years of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards, made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.