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Wednesday 6 February 2019
Union County, New Jersey, Man Charged with Receiving Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man appeared in federal court today on charges of receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Andrew Chu, 28, of Garwood, New Jersey, is charged by complaint with one count of receipt of child pornography. He made his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond with home detention and electronic monitoring.
According to documents filed in this case and statements made in court:
In February 2018, Chu downloaded three videos depicting the sexual abuse of children from a child pornography website located on the darknet.
The charge of receipt of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations (HSI), Newark Field Office, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Erin Nealy Cox to Target Domestic Abusers with GunsRead the Press Release
U.S. Attorney Erin Nealy Cox today announced a new initiative to fight domestic violence using federal firearm laws.
Federal law prohibits convicted domestic violence abusers, as well as those subject to certain protective orders, from possessing guns.
Working in tandem with state and local law enforcement partners, U.S. Attorney Nealy Cox pledged to prosecute domestic violence offenders discovered with guns.
“With so many domestic disputes escalating from bruises to bullets and bloodshed, we can and should play a part in ending this senseless violence,” she said. “We’re hopeful that highlighting this focus will send a message to convicted abusers: Not only can the Justice Department prosecute you for firearm possession, but in the Northern District of Texas, we will.”
Research shows that abusers with a gun in the home are five times more likely to kill their partners than abusers who don’t have that same access to a gun. Dallas County alone sees an average of 15 intimate partner violence fatalities each year – and more than half of victims are killed by gunfire.
Federal prosecutors in the Northern District of Texas have already indicted several domestic violence offenders on various firearm charges:
- John Gabriel Mejia, Jr. was indicted for possession of a firearm while subject to a domestic violence protective order, a violation of 18 U.S.C. § 922 (g)(8). Mr. Mejia, 25, was served with a protective order in 2018, after allegedly holding his girlfriend and her 7-year-old daughter in his garage against their will. With the protective order in effect, he used a 9 mm Glock to threaten his girlfriend.
- Rolando Novell was indicted for possession of a firearm by a prohibited person, a violation of 18 U.S.C. § 922 (g)(9). In 2018, Mr. Novell, 33, pleaded guilty to several assaults, including striking his girlfriend and choking her in front of their infant child. Following his conviction in state court, he signed a statement claiming he did not and would not possess any guns. Authorities arrested him with three pistols two months later.
- James Otis Foley was indicted for felon in possession of a firearm, a violation of 18 U.S.C. § 922 (g)(1). Mr. Foley, also 33, was convicted with aggravated assault with a deadly weapon in March 2011, after he beat his girlfriend, then followed her, brandishing a handgun, as she fled in her car. In 2016, he was again convicted of assault for slamming his girlfriend into a washing machine. Due to his felony convictions, he was not permitted to own guns. But following his release from prison, law enforcement, responding to a domestic dispute call, discovered him with a .45 caliber Glock.
If convicted, all three men face up to 10 years in federal prison. However, as usual, all three defendants are innocent until proven guilty in a court of law.
“We are committed to supplementing the passionate efforts of our state and local partners to hold abusers accountable – and to deter them from taking aim at their partners in the first place,” said U.S. Attorney Nealy Cox.
- John Gabriel Mejia, Jr. was indicted for possession of a firearm while subject to a domestic violence protective order, a violation of 18 U.S.C. § 922 (g)(8). Mr. Mejia, 25, was served with a protective order in 2018, after allegedly holding his girlfriend and her 7-year-old daughter in his garage against their will. With the protective order in effect, he used a 9 mm Glock to threaten his girlfriend.
Two Members of “Black Rain” Drug Crew Indicted in Queens Cold Case MurdersRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Darin Hamilton, also known as “Satch,” and Jerome Jones, also known as “Sha,” for their participation in the 1992 murders of Anthony Lloyd and Robert Arroyo. Specifically, Hamilton is charged with the intentional murder of Anthony Lloyd while engaged in narcotics trafficking, and both defendants are charged with the murder of Robert Arroyo while engaged in narcotics trafficking, as well as conspiracy to do the same. Hamilton was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy. Jones is in federal custody and will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the arrests.
As detailed in the indictment and the government’s detention memorandum, Hamilton and Jones were members of a Queens-based crew that called itself “Black Rain,” and sold narcotics at several locations on Rockaway Boulevard in the early 1990s. Specifically, the crew sold heroin under the brand name “Black Rain,” cocaine under the brand name “White Lightning” and crack cocaine under the brand name “Thunder.” The gang committed acts of violence, including murder, to protect its profitable operation.
Both murders took place in the vicinity of 128th Street and Rockaway Boulevard in South Ozone Park, where Hamilton and Jones managed a drug spot. As alleged, in June 1992, Hamilton shot and killed Anthony Lloyd, whom he believed had stolen from Black Rain.
Two months later, in August 1992, Hamilton and Jones recruited and paid two members of Black Rain to murder Robert Arroyo, whom they believed was a police informant. In their first attempt, the recruits mistakenly shot another man they incorrectly believed to be Arroyo. The victim survived his wounds. On September 8, 1992, at Hamilton and Jones’s direction, the two recruits located Arroyo on a crowded street and shot him multiple times, killing him.
“As today’s charges make clear, we will not let the passage of time deter us from bringing murderers to justice. It is our hope that this prosecution will bring some measure of consolation to the families of the victims,” stated United States Attorney Donoghue. Mr. Donoghue praised the extraordinary investigative efforts of the FBI and NYPD.
“Investigations grow cold with the passage of time, but investigators don’t stop searching for evidence they need to bring the suspects involved to justice,” stated FBI Assistant Director-in-Charge Sweeney. “Anthony Lloyd and Robert Arroyo were murdered nearly three decades ago, and their killers may have believed they were in the clear. However, the FBI New York Metro Safe Streets Task Force and our partners at the NYPD want this case to serve as a warning for those who believe they can let their guard down, we are still on the case and we won’t give up.”
“Today’s charges prove that the best investigators in the world do not ever forget victims, and they do not ever forget the justice that is owed to those victims’ families,” stated NYPD Commissioner O’Neill. “All New Yorkers deserve to be safe, and to feel safe. The NYPD and our colleagues at the U.S. Attorney’s Office for the Eastern District and the FBI will stop at nothing until every street, in every neighborhood of New York City, is as safe as our safest streets are today.”
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Moira Kim Penza and Penelope J. Brady are in charge of the prosecution.
The Defendants:
JEROME JONES (also known as “Sha”)
Age: 54
West VirginiaDARIN HAMILTON (also known as “Satch”)
Age: 60
South Ozone Park, QueensE.D.N.Y. Docket No. 19-CR-54 (NGG)
Two Indicted in Connection with a Scheme to Defraud the Federal E-rate ProgramRead the Press Release
Memphis, TN – Charles A. "Chuck" Jones, the part owner of two now-dissolved technology companies, Technology Associates, Inc. and Integrated Computer Solutions, Inc., and Mark J. Whitaker of Murray, Kentucky, were indicted on federal criminal charges of conspiracy to commit wire fraud and wire fraud. U.S. Attorney D. Michael Dunavant announced the indictment today.
According to the indictment, under the Federal Communications Commission’s E-rate Program, the government provides funding to qualified schools to purchase internet access and other telecommunications services and equipment for their students. The E-rate Program pays up to 90% of the cost of these technology services and equipment. Two of the Program’s core eligibility requirements are that applicant schools conduct a fair and open competitive bidding process and that each applicant school pay some percentage of the cost of the internet access and other telecommunications services and equipment. The E-rate Program pays the balance of that cost, which ranges from 20% to as high as 90%. As described in the indictment, the reason the schools are required to pay a portion of the costs are: a) to ensure that schools have a financial incentive to negotiate for the most favorable prices so that E-rate Program funds are not wasted; and b) to ensure that schools purchase only those items and services they truly need.
The indictment further charges that Jones and Whitaker conspired with an individual identified as A.J., to whomJones gave money and other things of value in return for A.J.’s assistance. The co-conspirators used A.J. and A.J.’s position with schools in Crockett County, Tennessee and Missouri to violate Program rules. Additionally, the co-conspirators submitted and caused to be submitted fabricated documents and made false statements and representations to the E-rate Program administrator, which included assertions that Jones’ companies had invoiced schools for the proper co-payment amounts. These actions were taken to circumvent E-rate Program rules and review and to obtain payments from the E-rate Program administrator to Jones’ companies. Jones’ companies received approximately $8.5 million from the E-rate Program and Jones used funds from the companies’ bank accounts for his own benefit.
U.S. Attorney D. Michael Dunavant said, "Protection of federal grant programs that provide needed services and equipment to our schools in West Tennessee is a top priority of this office. When dishonest offenders conspire to defraud these programs for their own selfish gain and unjust enrichment, they not only steal tax dollars, but also hurt local schools in the process. We will continue to work with our federal partners to root out and expose such fraud against the government, to hold offenders accountable, and to recover ill-gotten gains."
FCC Inspector General David Hunt stated: "Today’s charges allege that Mr. Jones and Mr. Whitaker knowingly and willfully violated the bedrock requirements of the FCC’s E-rate Program while hiding these violations from the Program’s administrator, all with the goal of enriching Mr. Jones with E-rate funds, thus depriving students of the benefits of this program – up-to-date telecommunications services. I thank U.S. Attorney Dunavant for prosecuting this case. We will continue to work with our law enforcement partners to pursue those who seek to illegally take money from the FCC’s programs."
This case was investigated by the FCC Office of Inspector General and the Federal Bureau of Investigation.
Assistant United States Attorneys Tony Arvin and Murre Foster are prosecuting this case on the government’s behalf.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tucker County residents admit to their roles in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Two Parsons, West Virginia residents have admitted to their roles in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
John Luther Boyles, age 62, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Boyles admitted to conspiring with others to distribute more than five grams of methamphetamine from December 2017 to March 2018 in Tucker and Randolph Counties and elsewhere.
Donna Alyce Boyles, age 51, pled guilty to one count of “Aiding and Abetting Maintaining Drug-Involved Premises.” She admitted to maintaining a residence located at 128 Main Street in Parsons, West Virginia, to manufacture, sell or use methamphetamine.
John Boyles faces no less than five years and up to 20 years incarceration and a fine of up to $5,000,000. Donna Boyles faces up to 20 years incarceration and a fine of up to $500,000. 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 Brandon S. Flower is prosecuting the cases on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Three Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging EMERSON YUBIMY HERRERA-ALFARO, age 19, of El Salvador, JUAN ANGEL MURILLO RUIZ, age 34, of Honduras, and MARIO ALBERTO LLAMAS-HERNANDEZ, age 37, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, HERRERA-ALFARO, previously deported two times and found in Granville County, and MURILLO RUIZ, previously deported and found in Sampson County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
LLAMAS-HERNANDEZ, previously deported and found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (cocaine trafficking). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Tampa Man Sentenced to Five Years in Prison for Scheme Involving Nearly $400,000 in Stolen Federal Tax Refund ChecksRead the Press Release
Tampa, Florida – Senior U.S. District Judge James Moody, Jr. today sentenced Taurence Creary (47, Tampa) to five years in federal prison for conspiracy, receipt of stolen government property, and aggravated identity theft. Creary had pleaded guilty on April 5, 2018.
According to court documents, Creary obtained a number of genuine federal tax refund checks that had been stolen en route to the intended taxpayers, who were identity theft victims living in the Middle District of Florida. Creary and others then sold or attempted to sell the checks to third parties. The U.S. Department of Treasury tax refund checks ranged in amounts from $4,000 to more than $100,000, with an aggregate value of over $398,000.
On May 10, 2018, U.S. District Judge Mary S. Scriven sentenced Xavier Williams, Creary’s co-conspirator, to three years in federal prison for his role in the scheme.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorneys Rachel K. Jones and Eric K. Gerard.
Suspended Nurse Practitioner Indicted for Illegal PrescriptionsRead the Press Release
PITTSBURGH, PA - A suspended nurse practitioner has been indicted by a federal grand jury in Pittsburgh on charges of dispensing and distributing controlled substances and conspiring to distribute and dispense controlled substances, United States Attorney Scott W. Brady announced today.
The 294-count Indictment, returned on Feb. 5, named Larry J. Goisse, Jr. 34, as the sole defendant.
According to information previously provided to the court, Goisse is a Certified Registered Nurse Practitioner who owns and operates Prime Psychiatric Care, LLC, which has two offices in Pittsburgh. In July of 2018, Goisse’s Pennsylvania state medical licenses were revoked by the Commonwealth of Pennsylvania, meaning he does not have the legal authority to authorize prescriptions for controlled substances. The indictment alleges that on 294 occasions, Goisse prescribed Adderall after his nursing licenses had been suspended.
"In addition to being illegal, prescribing controlled substances without a license raises all kinds of red flags," said U.S. Attorney Brady. "We moved quickly to ensure the safety of the public but our investigation of this matter continues."
The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
St. Louis Man Pleads Guilty to Carjacking and Robbing a 7-11 StoreRead the Press Release
St. Louis, MO – Ahmaad Ali, 24, St. Louis, pleaded guilty to carjacking, brandishing a firearm during a federal crime of violence and robbery charges. He appeared in federal court today before U.S. District Judge Ronnie L. White and set sentencing for May 8, 2019.
According to the plea agreement, on October 17, 2017, officers of the St. Louis Metropolitan Police Department responded to 3880 Meramec, after a report of a robbery/carjacking at that location. The victim was located and she said had been in her gold 2002 Pontiac Aztek, traveling east in the 3800 block of Meramec. She stated she stopped at the curb to make a call on her cellular phone. While doing so she heard a knock at her driver’s window. She then looked over and observed a male standing at the driver’s door with a military style weapon brandished at her. She opened the door and attempted to hand over her purse; the suspect refused the purse, and ordered her out of the vehicle.
When she complied, co-defendant Jevante Phillips entered the driver’s seat. She additionally observed the passenger door closing. Ali entered the passenger side of her vehicle.
The vehicle then fled east on Meramec. The stolen vehicle contained her purse, which held personal items, and her driver’s license. Her vehicle additionally contained a GoGo Sport scooter, which was located in the rear of the vehicle.
On October 18, 2017, Ali, along with co-defendants Jevante Phillips and Travion Lindsey, all armed with firearms entered the 7-11 store located on Christy Avenue in South St. Louis. The three arrived at the 7-11 in a Pontiac Aztek that had been stolen one day earlier at gunpoint by Ali and Phillips. They entered the store brandishing their firearms and wearing masks. One walked around the counter and began stealing lottery tickets and money from the cash register. He was armed with a black long barrel pistol grip firearm. A second male jumped over the counter and began removing the cash register. He was armed with a black handgun, containing an extended magazine. The third male stood guard at the door and eventually walked over the counter and assisted in removing currency. He was armed with a black handgun, which he held in his left hand the entire time. After two minutes inside of the store, the three ran out of the store taking liquor bottles, cigarettes, and candy on their way outside. The males then re-entered the Aztec and fled the area northbound, out of sight.
Phillips pled guilty in September 2018 and is scheduled to be sentenced February 13, 2019; Lindsey pled guilty in January 2019 and is scheduled to be sentenced April 18, 2019.
Carjacking carries a penalty of not more than 20 years in prison and a $250,000 fine; brandishing a firearm during a federal crime of violence carries a penalty of not less than seven and not more than 20 years in prison and a $250,000 fine; and robbery carries a penalty of not more than 20 years in prison and a $250,000 fine. Restitution to the victim is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation and assisted by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Somerset County Man Sentenced to 10 Years in Federal Prison for Attempted Coercion and Enticement of a Minor to Engage in Sexually Explicit ConductRead the Press Release
Baltimore, Maryland – On February 5, 2019, U.S. District Judge Richard D. Bennett sentenced Christian Moylan, age 38, of Eden, Maryland, to 10 years in federal prison, followed by 25 years of supervised release, for his conviction on attempted coercion and enticement of a minor to engage in sexually explicit conduct. Judge Bennett also ordered that, upon Moylan’s release from prison, he will be required to register as a sex offender in the places where he resides, where he is employed, and where 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) Baltimore Field Office; and Colonel William M. Pallozzi of Maryland State Police.
According to the plea agreement, on December 7, 2016, Moylan sent a sexually explicit photograph of a pre-pubescent girl over the internet. The National Center for Missing and Exploited Children (NCMEC) was notified, and the Maryland State Police and HSI initiated an investigation. The investigation revealed that, for several years, Moylan used a fake female identity to communicate with minors using a messaging application. He used this fake identity to meet young girls in various Internet chat rooms, and then would start private online conversations with some of the girls he met online. Pretending to be a girl, Moylan would initially communicate with the girls he met online about age-appropriate topics, such as cheerleading and school, and then he would gradually engage in more sexually explicit conversations. Between June 26, 2014 and September 2, 2014, Moylan used his computer to send very sexually explicit messages to a 15-year-old girl, and he persuaded, and attempted to persuade the teenager to send him sexually explicit photos of herself.
Moylan also possessed more than 1,000 images of child pornography, including images that portrayed the sexual abuse of prepubescent minors, including a toddler.
Moylan’s federal sentence will be served concurrently to the state sentence Moylan is currently serving.
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 Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.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 the HSI and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Christine Duey, who prosecuted the federal case.
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Shubuta Woman Pleads Guilty to Making a False Statement to a Licensed Firearms DealerRead the Press Release
Jackson, Miss – Tamesha Lewis, 36, of Shubuta, Mississippi, pled guilty today before U.S. District Judge Henry T. Wingate, to making a false statement to a licensed firearms dealer in connection with purchasing a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On March 21, 2018, Lewis tried to purchase a firearm by providing false information on a Firearms Transaction Record, a required form for the purchase of a firearm, at Garrett’s Sports Center in Meridian, Mississippi.
Lewis will be sentenced on May 7, 2019, by Judge Wingate, and faces a maximum penalty of ten years in prison and a $250,000.00 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Bert Carraway.
San Carlos Man Sentenced to over 18 Years for Sexual Abuse of a Vulnerable VictimRead the Press Release
PHOENIX – On Feb. 4, 2019, Derrick Lee Hinton, 29, of San Carlos, Ariz., was sentenced by U.S. District Judge David C. Campbell to 18.5 years’ imprisonment followed by 10 years of supervised release. Hinton had previously pleaded guilty to aggravated sexual abuse.
On May 31, 2013, Hinton, an enrolled member of the San Carlos Apache Tribe, sexually assaulted a vulnerable, mentally-challenged victim, who is also an enrolled member of the San Carlos Apache Tribe.
The investigation in this case was conducted by the Bureau of Indian Affairs, the San Carlos Police Department and the Arizona Department of Public Safety. The prosecution was handled by Assistant U.S. Attorney Thomas Simon, District of Arizona, Phoenix.
CASE NUMBER: CR-18-720-PHX-DGC
RELEASE NUMBER: 2019-007_Hinton
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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.
San Carlos Man Sentenced to 37 Months for Distributing MethamphetamineRead the Press Release
PHOENIX – On Feb. 4, 2019, Victor James Long, Sr., 34, of San Carlos, Ariz., was sentenced by U.S. District Judge Susan M. Brnovich to 37 months’ imprisonment, followed by three years of supervised release. Long had previously pleaded guilty to possession with the intent to distribute methamphetamine.
On Feb. 6, 2014, the San Carlos Police Department arrested Long, a member of the San Carlos Apache Tribe, on an unrelated matter. During a search of Long’s clothing incident to that arrest, the Police Chief located 28 grams of methamphetamine. Long admitted he possessed the methamphetamine for purposes of distribution on the San Carlos Community.
The investigation in this case was conducted by the San Carlos Police Department, the Bureau of Indian Affairs and the Drug Enforcement Administration. The prosecution was handled by Assistant U.S. Attorney Thomas Simon, District of Arizona, Phoenix.
CASE NUMBER: CR-18-583-PHX-SSMB
RELEASE NUMBER: 2019-008_Long
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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.
Project Huntington Update: Saigon Sunset Defendant Sentenced to 97 Months in PrisonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to 97 months in federal prison for his role in a drug conspiracy, announced United States Attorney Mike Stuart. Willie Peterson, also known as “Chill,” 50, previously pled guilty to an indictment that charged him with conspiracy to distribute 100 grams or more of heroin and a quantity of fentanyl. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“The Peterson drug trafficking organization was a big time supplier of dangerous narcotics that was transported from Detroit to Huntington,” said United States Attorney Mike Stuart. “Not anymore -- Operation Saigon Sunset took the entire organization down.”
Peterson admitted that between July 2017 and April 2018 he conspired with individuals to distribute 100 grams or more of heroin and quantities of fentanyl in Huntington, West Virginia. Peterson admitted that he distributed quantities of heroin to his brother, Manget Peterson, also known as “Money,” for him to distribute in Huntington, West Virginia in exchange for money. Individuals in Huntington would send Peterson drug proceeds in Detroit, Michigan from drug sales in Huntington, West Virginia. As part of his plea agreement, Peterson also admitted that in March 2018 he assisted David Miller, also known as “John,” in placing fentanyl and cocaine in a black box and attaching the box to Miller’s vehicle. Miller intended to transport the controlled substances to Huntington for distribution purposes. However, the Michigan State Police conducted a traffic stop on Miller and seized the controlled substances.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Poplar man sentenced in beating deathRead the Press Release
GREAT FALLS – A Poplar man was sentenced today to six years and eight months in prison and to three years of supervised release after he admitted beating to death a man during a quarrel in July 2017, U.S. Attorney Kurt Alme said today.
Errol Wayne Longee, 35, pleaded guilty in November to voluntary manslaughter for the July 1, 2017 death of a man at a Poplar residence on the Fort Peck Indian Reservation.
U.S. District Judge Brian M. Morris presided. Judge Morris also ordered $2,816 restitution.
Prosecutors said Longee and the victim had been hanging out and drinking in the backyard of the residence when another individual arrived. That individual made accusations against the victim and starting punching the victim in the face. Longee then started assaulting the victim, kicking the victim in the face and stomping on his head. Longee left the scene and later told a relative that he thought he had killed the victim. When interviewed by law enforcement, Longee admitted to hitting and kicking the victim multiple times.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI and Ft. Peck Tribal Department of Law and Justice.
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Physician Sentenced to Prison for False Billing SchemeRead the Press Release
BOSTON – A physician at the now-defunct New England Pain Management Associates Inc. was sentenced today in federal court in Boston for conspiring to falsify patient medical records in order to obtain payments from Medicare and commercial insurers for medical services that were not performed.
Moustafa Moataz Ibrahim Aboshady, 36, of Lake Forest, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 75 months in prison, three years of supervised release and ordered to pay restitution in the amount of $1,852,459. In September 2018, a federal jury convicted Aboshady of one count of conspiracy to make false statements in connection with health care benefit programs and two counts of making false statements in connection with health care benefit programs. In March 2018, co-conspirator Dr. Fathalla Mashali was sentenced to eight years in prison after pleading guilty to 27 counts of health care fraud, one count of conspiracy to commit mail fraud and 16 counts of money laundering.
“Mr. Aboshady helped Dr. Mashali operate one of the most dangerous pain management practices in Massachusetts,” said United States Attorney Andrew E. Lelling. “Dr. Mashali routinely dispensed large quantities of powerful narcotics to addicted patients. Mr. Aboshady assisted Dr. Mashali’s illegal behavior by using his training as a doctor to fabricate patient records, with the goal of duping Medicare and other insurers into paying Dr. Mashali for his fraudulent conduct. Moreover, Aboshady later lied about Mashali’s medical practices to regulatory authorities.”
“Dr. Aboshady engaged in unlawful, unethical, and unprofessional conduct. He used the Medicare system as his own personal ATM, cheating taxpayers and private insurance companies out of thousands of dollars by billing them for medical services that were never performed. The FBI is committed to protecting government and private health care programs and stopping those who steal from them,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
During the time of the conspiracy, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA had locations in Massachusetts and Rhode Island, and was operated by Fathallah Mashali, a pain management physician.
Aboshady conspired with Mashali, other members of NEPA, and members of a satellite office in Cairo, Egypt, to falsify medical records and urine drug test results to support claims for payment to Medicare and insurers for services that Mashali did not render.
Part of the conspiracy involved falsification of patient encounter notes. Such false information included, but was not limited to, detailed descriptions of extensive physical examinations and treatment plans, and durations of face-to-face interactions with patients exceeding 20 to 40 minutes per appointment, to create the appearance of lengthy and involved patient encounters, when in fact these services did not take place. Aboshady instructed the Cairo office on how to fake patient encounter notes, how to create false electronic signatures on the encounter notes and how to make the timestamps for those signatures look realistic.
Aboshady was also responsible, in conjunction with the office in Cairo, for fabricating urine drug test results with false test dates, so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support urine drug test billing codes submitted to Medicare and insurance companies. In fact, NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored unrefrigerated in large plastic bags and containers. In addition, in response to a subpoena from the State of Rhode Island concerning some of Mashali’s patients, Aboshady helped Mashali falsify patient medical records.
“Healthcare fraud is corrosive, wasting taxpayer dollars, driving up healthcare costs, and undermining the Medicare program,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health & Human Services, Office of Inspector General. “Aboshady’s falsification and fabrication of medical records to further his healthcare fraud scheme compromised the integrity of our public healthcare system, and we will continue to aggressively investigate such reckless conduct.”
“I hope this sentence sends a message to other medical providers that medical billing fraud is not tolerated in Massachusetts and when caught, you will pay a price,” said Anthony M DiPaolo, Chief of Investigations of the Insurance Fraud Bureau. “This matter also illustrates the commitment of all agencies to combat medical billing fraud which affects all citizens. The Insurance Fraud Bureau of Massachusetts places a high priority on fighting this type of insurance fraud. The collaboration in this matter is unprecedented.”
U.S. Attorney Lelling; Boston FBI SAC Bonavolonta, HHS-OIG SAC Coyne, and Massachusetts IFB Chief of Investigations DiPaolo, made the announcement today. Assistance was also provided by the Internal Revenue Service’s Criminal Investigation in Boston. Assistant U.S. Attorneys Abraham R. George, Senior Litigation Counsel of Lelling’s Civil Division, and David G. Lazarus, Chief of Lelling’s Asset Recovery Unit, prosecuted the case.
Petaluma Drug Trafficker Sentenced to Five Years in PrisonRead the Press Release
SAN FRANCISCO – Steven Roberson was sentenced today to 60 months in prison for possessing heroin with intent to distribute the drug, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Chris Nielsen. On January 30, 2019, Roberson’s codefendant, Kelly Olson, was sentenced to 64 months in prison for her role in the scheme. The sentences were handed down by the Honorable Maxine M. Chesney, U.S. District Judge.
Roberson, 32, of Petaluma, Calif., pleaded guilty to the charge on October 10, 2018. Olson, 29, also of Petaluma, pleaded guilty about a week later, on October 18, 2018. According to the plea agreements, in January of 2018, law enforcement officers observed Roberson conducting hand-to-hand drug transactions with drug customers in the parking lot of a Safeway store in Petaluma. On February 19, 2018, Roberson and Olson drove together to Sacramento to obtain heroin from a supplier. While the two were driving back to Petaluma, law enforcement officers stopped and eventually searched the car where, in the trunk, officers found heroin, digital scales, and plastic baggies. Both defendants admitted they knew there was heroin in the car and that they possessed it with intent to distribute it. In sum, 156.8 grams of heroin was found in the car.
On May 15, 2018, a federal grand jury handed down a two-count indictment charging each defendant with one count of conspiracy to distribute and possess with intent to distribute heroin, in violation of 21 U.S.C. §§ 846, and 841, and one count of possession with intent to distribute heroin, in violation of 21 U.S.C. § 841. The defendants each pleaded guilty to the possession with intent to distribute count and the conspiracy charges were dismissed.
In addition to the prison terms, Judge Chesney sentenced each defendant to serve a 5-year term of supervised release. Defendants currently are in custody and are beginning to serve their prison terms immediately upon sentencing.
Assistant U.S. Attorney Ravi Narayan is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the DEA, together with Petaluma Police Department
Owner of Illegal Massage Parlor Found Guilty of Sex TraffickingRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of OMAR KASHAKA TAYLOR a/k/a “Shaka,” 44, for sex trafficking two victims, including one minor victim. Following a seven-day trial before Senior Judge Donovan W. Frank in U.S. District Court in St. Paul, Minnesota, the jury found TAYLOR guilty on all counts.
“Sex trafficking is an abhorrent crime that will not be tolerated in our communities,” said United States Attorney Erica MacDonald. “Omar Taylor targeted young, Native American women and girls and coerced them into performing commercial sex acts during massages for his own financial benefit. I commend the work of the investigators and the prosecutors in obtaining justice for the victims.”
Assistant U.S. Attorney Manda Sertich said the convictions “should serve as a warning to those who seek to traffic and exploit vulnerable Native American girls and women.”
As proven at trial, from August 2017 through March 2018, TAYLOR, a registered sex offender, operated an illegal massage business out of his Minneapolis residence. TAYLOR recruited several young women and girls to work in his illicit massage business and then, through force, fraud, and coercion, made them perform commercial sex acts in exchange for money for his own financial benefit. TAYLOR used Backpage.com to solicit prospective clients by posting advertisements with photos of the victims, offering massage services that would include sex acts.
This case is the result of an investigation conducted by Homeland Security Investigations, the Minnesota Bureau of Criminal Apprehension, the Minnesota Human Trafficking Investigators Task Force, and the Beltrami County Sheriff’s Office.
Assistant United States Attorneys Manda M. Sertich and Michelle E. Jones are prosecuting this case.
Defendant Information:
OMAR KASHAKA TAYLOR, a/k/a “Shaka,” 44
Minneapolis, Minn.
Convicted:
- Sex trafficking of a minor, 1 count
- Sex trafficking by force, fraud and coercion, 2 counts
- Commission of a felony offense involving a minor when required to register as a sex offender, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Opioid Overdoses to Be Treated as Crime ScenesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr., together with Erie County District Attorney John J. Flynn, Central Police Services (CPS) Commissioner James Janciewicz, and Daniel Rinaldo, from the New York New Jersey High Intensity Drug Trafficking Area (HIDTA), announced today a first-of-its-kind initiative which is being implemented across Erie County to enhance law enforcement’s response to opioid overdoses. The initiative calls for state and local law enforcement officers who respond to an overdose in Erie County to input certain information into their on-board computers and to follow certain protocols for the processing of overdose scenes.
“While we may not be able to prosecute our way out of this epidemic, that does not mean that prosecution has no role in our fight” stated U.S. Attorney Kennedy. “While prevention and treatment efforts are critical to success in driving down overdose death rates, prosecution also plays an important role. Treatment represents the appropriate way to deal with those addicted to these poisons. Prosecution represents the appropriate way to deal with those drug dealers addicted to the profits generated by their spewing this poison into our community.”
The U.S. Attorney’s Office is partnering with the Erie County District Attorney’s Office, the New York-New Jersey High Intensity Drug Trafficking Areas (HIDTA), Central Police Services, and the Erie County Chiefs Association, to implement these new protocols help to ensure that those who are selling these potentially deadly opioids receive justice and those who are addicted receive treatment.
Under the initiative, when law enforcement officers arrive at what they believe to be an opioid overdose, certain information will be collected and imputed into a law enforcement database and standardized protocols regarding the processing of the overdose scene and the collection of evidence will be followed. In addition, the information will also be entered into ODMAP, a real time, national GPS mapping system which tracks overdoses, overdose deaths, and Narcan use nationwide.
U.S. Attorney Kennedy further stated, “By standardizing the way these overdose scenes are processed, we enhance our ability to prosecute those who peddle this poison. At the same time, by simply tracking the location of non-fatal overdoses, we enhance the ability of treatment providers to reach those who are in the greatest need. It is this simultaneous enhancement of both our law enforcement function—prosecuting drug dealers—and the treatment function—helping addicts—which constitutes a highly effective one, two punch in our effort to combat this deadly epidemic.”
“By establishing consistent protocols for all law enforcement, we will be able to preserve critical evidence in overdose death investigations in order to prosecute these opiate dealers,” said Erie County District Attorney John J. Flynn. “I want to thank U.S. Attorney Kennedy for bringing our partners in law enforcement together on this initiative. By streamlining our efforts, we will be better equipped to identify the drug dealers, and hopefully bring an end to this deadly epidemic.”
“This initiative represents the perfect partnership between law enforcement and public health,” stated Daniel Rinaldo, Drug Intelligence Officer with the New York-New Jersey High Intensity Drug Trafficking Areas (HIDTA). “Working together to implement these protocols, gather the evidence, and interview witnesses will enable us to prepare the strongest case possible for prosecution.”
To date, the U.S. Attorney’s Office has prosecuted 16 defendants for distributing heroin and/or fentanyl which caused the death of or seriously bodily injury to 23 victims. The Erie County District Attorney’s Office has also prosecuted one defendant for manslaughter in connection with an opioid related death.
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New Zealand Man Indicted for Kidnapping and Child PornographyRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment today charging a New Zealand man with four counts of production of child pornography and one count of kidnapping and attempted kidnapping.
According to allegations in the indictment, Troy George Skinner, 25, knowingly used a minor child living in Goochland, Virginia, to produce two videos of child pornography and two image files of child pornography. The indictment alleges that these acts occurred on four separate dates in February and March 2018.
The indictment further alleges that from June 20 to June 22, 2018, Skinner traveled from New Zealand to Virginia, whereupon his arrival he unlawfully and willfully seized and confined the minor victim, and attempted to seize, confine, and kidnap the minor victim for ransom or another reason, and that he also used the Internet in furtherance of this offense.
If convicted of producing child pornography, Skinner faces a mandatory minimum of 15 years in prison and a maximum of 30 years on each count. If convicted of the kidnapping/attempted kidnapping, he faces a mandatory minimum of 25 years in prison and a maximum of life. 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 MaryJo Thomas, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorneys Brian R. Hood and Katherine Lee Martin are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-19.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
New Jersey Residential Loan Company Agrees to Settle Claim It Unlawfully Foreclosed Upon Servicemembers' Homes Without Obtaining Required Court OrdersRead the Press Release
WASHINGTON –The Justice Department today announced that PHH Mortgage Corporation (PHH) has agreed to pay $750,000 to six servicemembers to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by unlawfully foreclosing on their homes without obtaining the required court orders.
“The brave men and women who serve in our nation’s armed forces frequently are required to deploy and serve overseas with little notice,” said U.S. Attorney Craig Carpenito. “This Office remains resolute in its commitment to honor their personal sacrifices when they do so by ensuring that servicemembers’ rights will be protected, as the law requires, whenever duty calls. This agreement ensures that servicemembers will be compensated for the damages they suffered when their homes were improperly foreclosed upon while they were serving our country.”
“Our men and women in uniform deserve to be able to focus on their job of keeping our country safe without worrying about losing their home to an unlawful foreclosure,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division is committed to protecting the rights of our servicemembers from unlawful conduct.”
The SCRA prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of military service.
PHH is one of the United States’ largest mortgage loan servicers, operating nationwide. The New Jersey-based company also originates, sells and subservices residential mortgage loans.
The Department launched an investigation, which was handled jointly by the U.S. Attorney’s Office for the District of New Jersey and the Department’s Civil Rights Division, after it received a complaint in May 2016 through the Department’s Servicemembers and Veterans Initiative. The Department’s investigation revealed that PHH foreclosed on six homes of SCRA-protected servicemembers in violation of the SCRA between 2010 and 2012.The agreement resolves a suit filed today by the United States in the U.S. District Court for the District of New Jersey.
The agreement requires PHH to pay $125,000 to each servicemember whose home was unlawfully foreclosed upon. The agreement also requires PHH to provide training to its staff to ensure that servicemembers do not face unlawful foreclosures in the future, and to notify the Department of future complaints regarding servicemembers’ rights.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. Since 2011, the Department has obtained over $468 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division; Assistant U.S. Attorney Christopher Amore, Criminal Division; and Trial Attorney Alan Martinson, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
New Jersey Man and Ex-Girlfriend Charged with Murder-For-HireRead the Press Release
NEWARK, N.J. – A New Jersey man appeared in federal court today on charges that he promised to pay a purported hitman to kill his estranged wife, U.S. Attorney Craig Carpenito announced. The defendant’s ex-girlfriend, who appeared in federal court Feb. 5, 2019, is also charged with participating in the plot.
Narsan Lingala, 55, of Middlesex County, New Jersey, is charged by criminal complaint with one count of murder-for-hire. He appeared today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was held without bail. Lingala’s ex-girlfriend, Sandya Reddy, 52, appeared before Judge Hammer on the same charge and was also detained.
According to the complaint:
In May 2018, Lingala was in a holding cell at the Middlesex County Superior Courthouse as he awaited a court hearing. While there, he asked another inmate if he knew anyone who could kill his estranged wife. The inmate responded that he knew such a person. In June 2018, at the direction of law enforcement, the inmate introduced Lingala to an undercover agent posing as a hitman. Over subsequent weeks, Lingala and the undercover hitman spoke by phone and planned to meet in person the next time that Lingala traveled from Indiana to New Jersey.
On Aug. 18, 2018, Lingala and the undercover hitman agreed to meet in person outside a New Jersey shopping mall. Later that day, Lingala and his then-girlfriend, Reddy, arrived outside the mall and approached the undercover hitman. Lingala introduced Reddy and stated that she understood what was going on. Lingala, Reddy, and the undercover hitman entered the undercover hitman’s car. They proceeded to have a conversation that was video recorded.
The undercover hitman asked Lingala to confirm what he wanted the undercover hitman to do. Lingala said, “I want that woman to be out of my life . . . totally. Never again. She never comes back.” During the conversation, the undercover hitman asked, “You want me to take care of her?” Lingala responded, “Yeah.” The undercover hitman stated, “She’s done, I’m going to kill her. End of story.” Lingala responded, “Yeah. End of story.”
During the conversation, Lingala gave the undercover hitman information about the intended victim. Lingala provided his ex-wife’s full name, home address, age, and home phone number. He also described the entrances to and layout of her home; the name of the company where she worked; and the timing and details of her work commute. Lingala showed the undercover hitman photos of the exterior and interior of his ex-wife’s home. Reddy also provided the undercover hitman information about the intended victim.
The undercover hitman, Lingala, and Reddy also discussed the price that the undercover hitman would be paid. The undercover hitman said the job would cost between $5,000 and $10,000, depending on the job’s complexity. Lingala agreed and asked if he could pay after the job was done. The undercover hitman said he would need a down payment. Lingala and Reddy discussed the issue, and then Lingala asked the undercover hitman, “Can I give you a thousand down payment?” The undercover hitman agreed. Lingala later stated, “I want that money to go into your pocket.” Lingala informed the undercover hitman that making the down payment would take about two weeks. After the meeting, authorities arrested Lingala and Reddy
The murder-for-hire charge is punishable by a maximum of 10 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, as well as the Middlesex County Prosecutor’s Office and detectives, under the direction of Prosecutor Andrew Carey, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Lingala: Candace Hom Esq., Assistant Federal Public Defender, Newark
Reddy: Patrick McMahon Esq., Assistant Federal Public Defender, NewarkNavajo Man Sentenced to 18 Years in Federal Prison for Involuntary Manslaughter and AssaultRead the Press Release
PHOENIX – On Feb. 4, 2019, Jayson Lee Yazzie, 40, of Tuba City, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge Diane J. Humetewa to 216 months in prison, followed by a term of three years of supervised release. Yazzie had previously pleaded guilty to involuntary manslaughter and assault resulting in serious bodily injury.
On June 14, 2014, Yazzie was driving while intoxicated and traveling at a speed in excess of 75 miles per hour when he struck another vehicle. Two victims in the other vehicle were ejected due to the collision, including a minor passenger who sustained fatal injuries, and the driver, who sustained serious bodily injuries. Two additional victims who were passengers in Yazzie’s vehicle also sustained serious bodily injuries. Yazzie’s blood was drawn more than three hours after the crash and his blood alcohol content was higher than .20%. Yazzie had previously been convicted of driving under the influence. The victims are members of the Navajo Nation and the collision happened on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Navajo Nation Department of Law Enforcement, and the Arizona Department of Public Safety. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08127-PCT-DJH
RELEASE NUMBER: 2019-005_Yazzie
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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.
Nampa Woman Sentenced to 39 Months for Identity Theft SchemeRead the Press Release
BOISE – Elena Lupuleasa, 34, of Nampa, Idaho, was sentenced today to 39 months in prison by Senior U.S. District Judge Edward J. Lodge, U.S. Attorney Bart M. Davis announced. Judge Lodge also ordered Lupuleasa to pay restitution in an amount to be determined at a later date and imposed three years of supervised release following her release from prison.
On November 9, 2018, Lupuleasa pleaded guilty to bank fraud and aggravated identity theft. According to court records, from April through November of 2016, Lupuleasa devised and executed a scheme to defraud banks using checks, driver’s licenses, and other personal information stolen from Boise and Nampa residents. Lupuleasa then forged a stolen check of one victim and made it payable to another victim. Lupuleasa would then impersonate the payee and cash the check at a local bank by presenting the payee’s stolen driver’s license or other form of identification.
The case was investigated by the Nampa Police Department, the Boise Police Department the Ada County Sheriff’s Office, United States Postal Inspection Service, and the Canyon County Prosecuting Attorney’s Office.
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Member of Winn Parish methamphetamine distribution ring sentenced to 195 months in prisonRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that the last defendant in a Winn Parish methamphetamine distribution ring was sentenced Monday. United States District Judge Dee D. Drell sentenced Jeremy Laraun Mamon, also known as “Pop C” and “Rilo,” 36, of Winnfield, Louisiana, to 16 years in prison and five years of supervised release for conspiracy to distribute methamphetamine.
Mamon was one of 11 defendants named as part of an indictment filed September 28, 2017. According to the October 22, 2018 guilty plea of Jeremy Mamon, he and 10 co-defendants conspired to distribute methamphetamine in the Winn Parish area from October 2015 to September 2017.
All 10 defendants have now been convicted and sentenced for their part in the conspiracy:
Co-Defendant
Date of Guilty Plea
Sentencing
Cristina Daniela Santos, 26,
of Los Angeles, California
September 10, 2018
January 16, 2019 - 130 months in prison; five years of supervised release.
Ladarrius “Fat Boy” James Street, 35, of Winnfield
September 10, 2018
January 16, 2019 - 324 months in prison; 10 years of supervised release.
Dexter “Big Oil,” “Big R” Jerome Sapp, 39, of Winnfield,
April 16, 2018
November 20, 2018 - 140 months in prison; five years of supervised release.
Destiney Hamilton, 33,
of Winnfield
July 5, 2018
November 19, 2018 - 36 months in prison; two years of supervised release.
Kendrick “L-Dog” Lamont Davenport, 44, of Winnfield
June 27, 2018
September 28, 2018 - 120 months in prison; five years of supervised release.
Stephen “Little Stephen” Duncan Jr., 26, of Winnfield
July 5, 2018
October 9, 2018 - 60 months in prison; four years of supervised release.
Delano “Drain” C. Hall, 49,
of Winnfield
June 27, 2018
November 20, 2018 - 120 months in prison; five years of supervised release.
Michael “Mike D,” “Michael D” Deangelo Hall, 33, of Winnfield
July 13, 2018
October 9, 2018 - 120 months in prison; five years of supervised release.
Rafael “Toot” M. Powell, 33,
of Atlanta, Louisiana
September 10, 2018
January 16, 2019 - 180 months in prison; 10 years of supervised release.
Xavier “Dank” Deandre Powell, 29, of Winnfield
August 27, 2018
December 13, 2018 - 120 months in prison; five years of supervised release.
The FBI Safe Streets Task Force and the Louisiana State Police, Alexandria Field Office Narcotics, participated in the investigation. Assistant U.S. Attorneys Earl M. Campbell and Jessica D. Cassidy prosecuted the case.
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McAllen Woman Charged in Multi-Million Dollar Kickback ConspiracyRead the Press Release
McALLEN, Texas – A local marketer has been charged for her role in a multi-million dollar illegal kickback conspiracy involving a pharmacy in the Rio Grande Valley and doctors throughout Texas, announced U.S. Attorney Ryan K. Patrick.
Victoria Renee Guerra, 35, of McAllen, made her initial appearance before U.S. Magistrate Judge Scott Hacker this morning.
According to the criminal information, Guerra was a licensed pharmacist and worked as a marketer for a pharmacy - identified as “Pharmacy A.”
In her role as a purported marketer, Guerra allegedly recruited physicians to write prescriptions for expensive compound drugs to be filled by Pharmacy A, and for which the pharmacy would bill federal health care programs.
During an approximately two-year period starting in late 2014, the owner of Pharmacy A paid Guerra approximately $7.5 million in return for compound drug prescriptions physicians written whom Guerra recruited. In turn, Guerra allegedly paid a cut of the payments from Pharmacy A to the prescribing physicians. For example, the complaint alleges Guerra paid approximately $2.1 million in kickbacks to just a physician for sending prescriptions to Pharmacy A.
During the conspiracy, Pharmacy A submitted claims totaling approximately $42.2 million to the U.S. Department of Labor, Office of Workers Compensation Program, for prescriptions that doctor had written for beneficiaries of the Federal Employee’s Compensation Act, according the charges
Guerra is charged with conspiracy to violate the federal anti-kickback statute which prohibits the payment of kickbacks to induce physicians to write prescriptions for which payment may be made in whole or in part under a federal health care benefit program. If convicted, Guerra faces up to five years in federal prison and a possible $25,000 maximum fine.
The U.S. Postal Service – Office of Inspector General (OIG), Department of Labor – OIG, FBI, Veterans Affairs – OIG, Defense Criminal Investigative Service and the Drug Enforcement Administration conducted the administration conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
A criminal information is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Marstons Mills Man Arrested for Child Pornography OffenseRead the Press Release
BOSTON – A Marstons Mills man was arrested today and charged in federal court in Boston with receipt and possession of child pornography.
Steven Carme, 30, was charged with one count of receipt and one count of possession of child pornography. He appeared in federal court in Boston and was ordered detained pending a detention hearing.
According to court documents, law enforcement learned that an individual whose IP address was traced to Carme’s Marstons Mills residence had shared child pornography over the internet using peer-to-peer sharing software. A search at the residence resulted in the seizure of a laptop computer, an external hard drive and an iPhone X. The external hard drive contained hundreds of images and videos of children, including some that depict the rape of children as young as five-years-old.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison. Each charge also provides for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manhattan U.S. Attorney Announces Extradition of OFAC- Sanctioned Afghan Man for Narco-Terrorism OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Christopher Tersigni, Special Agent in Charge of the United States Drug Enforcement Administration (“DEA”) Special Operations Division, announced today the extradition of HAJI ABDUL SATAR ABDUL MANAF, a/k/a “Haji Abdul Sattar Barakzai,” for attempting to import heroin into the United States, engaging in narco-terrorism for the benefit of the Taliban, and attempting to engage in narco-terrorism for the benefit of the Haqqani Network. MANAF was taken into custody by Estonian authorities in Tallinn, Estonia, on October 9, 2018, and extradited to the United States today. MANAF will be presented in Manhattan federal court later today. The case is assigned to United States District Judge Paul A. Crotty.
U.S. Attorney Geoffrey Berman stated: “As alleged, Manaf, already sanctioned by the Treasury Department for assisting the Taliban, attempted to import large quantities of heroin into the U.S., funneled heroin trafficking proceeds to the Taliban, and attempted to provide financial assistance to the Haqqani terrorist network. Thanks to the DEA and international law enforcement partners, Manaf is in the U.S. and facing justice in this District.”
Special Agent in Charge Christopher Tersigni stated: “This action highlights the DEA’s ability to hold accountable not only those who reside within our borders, but also those operating in other countries. Drug traffickers that bring harm to the citizens of this country must answer for their unlawful activities that have fueled the opioid epidemic.”
According to the allegations contained in the Complaint and Indictment[1] which were unsealed today:
In June 2012, the United States Treasury Department sanctioned MANAF pursuant to the United States’ terrorism sanctions authority, Executive Order No. 13224, for storing or moving money for the Taliban through his money remitting business, the Haji Khairullah Haji Sattar Money Exchange.
Beginning in January 2018, MANAF attempted to import large quantities of heroin into the United States; used the proceeds of heroin trafficking to benefit the Taliban; and attempted to provide financial support to the Haqqani Network. Specifically, MANAF participated in in-person meetings, recorded telephone calls, and electronic communications with five men whom MANAF understood to be affiliated with an international drug trafficking organization. During those meetings, MANAF helped arrange to import large quantities of heroin into the United States with the assistance of – and recognizing that some of the proceeds of that narcotics trafficking would be provided to – the Taliban and the Haqqani Network. Four of these men were, in fact, DEA confidential sources. The fifth was an undercover DEA agent (the “UC”).
The Haqqani Network and the Taliban have been and are engaged in highly public acts of terrorism against U.S. interests, including U.S. and coalition forces in Afghanistan. In August 2018, MANAF sold the UC a 10-kilogram shipment of heroin (the “10 Kilo Shipment”) in Afghanistan, after the UC told MANAF that the heroin would ultimately be imported into the United States for sale in New York. MANAF repeatedly told the UC that MANAF had paid the Taliban in connection with the production of the 10 Kilo Shipment, and reported that armed members of the Taliban would guard and transport future heroin shipments for MANAF and the UC. In August 2018, MANAF facilitated the transfer of thousands of dollars of what he believed to be narcotics proceeds to individuals MANAF had been advised were members of the Haqqani Network. MANAF subsequently agreed to supply the UC with thousand-kilogram loads of heroin for importation into the United States.
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The Indictment charges MANAF, 53, a citizen of Afghanistan, in three counts: (1) attempting to import heroin into the United States, (2) narco-terrorism, and (3) attempted narco-terrorism. If convicted, MANAF faces a maximum sentence of life imprisonment and a mandatory minimum sentence of 10 years in prison on Count One, and a maximum sentence of life imprisonment and a mandatory minimum sentence of 20 years in prison on each of Counts Two and Three. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the outstanding investigative efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit; the DEA European Regional Director; the DEA Copenhagen, Canberra, Dubai, Islamabad, Kabul, New Delhi, and Sydney Country Offices; the Government of Estonia; and the Australian Criminal Intelligence Commission. The defendant’s arrest and subsequent extradition are also the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York and the Department of Justice’s Office of International Affairs.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Rebekah Donaleski and Kimberly J. Ravener are in charge of the prosecution.
The allegations contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and Indictment and the descriptions of the Complaint and Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.
Man Who Carried Child Pornography Across U.S.-Canada Border Sentenced to 20 Years in Federal PrisonRead the Press Release
MARQUETTE, MICHIGAN — United States Attorney Andrew Birge announced today that Jason Harry Bishop was sentenced to 240 months (20 years) in federal prison by Chief U.S. District Judge Robert J. Jonker for transporting child pornography from Sault St. Marie, Michigan to Sault Ste. Marie, Ontario, Canada. Judge Jonker also sentenced Bishop to serve 10 years of supervision following his release from prison, pay a $40,000 fine, and pay $5,100 in special assessments.
On January 27, 2017, Bishop crossed the U.S.-Canada border at Sault St. Marie. While crossing, Canada Border Services Agency (CBSA) became suspicious and sent Bishop for a secondary inspection. During the secondary inspection, CBSA located several photos of child pornography.
CBSA forwarded Bishop’s electronic devices to the U.S. Department of Homeland Security Investigations (HSI), which recovered child pornography and the following images Bishop took of himself:
Picture of Jason Bishop with I Love Child Porn sign Picture of Jason Bishop wearing shirt I Am A Child MolesterA review of Bishop’s criminal history uncovered that he solicited sex with underage children on at least three prior occasions.
"Today's significant prison term against a convicted child predator should serve as a clear warning for those who target and prey on children," said Steve Francis, special agent in charge for HSI Detroit. "The aggressive investigation and prosecution of child predators remains among HSI's highest priorities."
This case was prosecuted by Assistant U.S. Attorneys Paul Lochner and Davin Reust as part of the Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, and local law enforcement work closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Luzerne County Man Sentenced to over 15 Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Ramon De Leon-Pineda, age 34, of West Hazelton, Pennsylvania, was sentenced on February 5, 2019, to 188 months’ imprisonment by United States District Court Judge Robert D. Mariani on drug trafficking charges.
According to United States Attorney David J. Freed, Pineda had previously pled guilty to conspiracy to distribute and possess with intent to distribute over 100 grams of heroin, over 28 grams of cocaine base, or “crack,” and a quantity of powder cocaine. One hundred grams of heroin is the equivalent of approximately 4,000 individual doses of heroin. Pineda was the target of a Drug Enforcement Administration investigation that has resulted in criminal charges against 16 individuals, 13 of whom have pled guilty so far.
The government presented evidence to demonstrate that Pineda was the leader of a criminal organization involving more than five people, that Pineda had shot an unknown victim in a restaurant in Wilkes-Barre, and that he threatened at least one dealer who could not pay a debt. Pineda also operated a stash house to store drugs and a gun in Wilkes-Barre. Additionally, Pineda engaged in a six-on-one assault on another inmate while awaiting sentencing at Lackawanna County Prison.
This sentence was the result of a multi-year investigation, in part driven by multiple wiretaps, conducted by the U.S. Drug Enforcement Administration, Wilkes-Barre Police Department, and Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Luzerne County Man Guilty of Firearms OffenseRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stephani Taylor, age 26, of Plymouth, Pennsylvania, pleaded guilty on February 1, 2019, to using a firearm in connection with a drug trafficking crime before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, Taylor admitted to stealing firearms and exchanging them for bundles of heroin between December 2016 and September 2017, in Luzerne County.
Taylor’s codefendant, Michael Wilson, pleaded guilty on January 30, 2019, to distributing heroin and unlawfully possessing firearms in furtherance of drug trafficking.
The case was investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Kingston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Judge Mannion ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine for using or possessing a firearm in connection with a drug trafficking offense. There is also a mandatory minimum sentence of five years’ imprisonment for the firearms charge. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Long-Time Houston Physician Ordered to Prison for Tax EvasionRead the Press Release
HOUSTON – A local doctor who practiced in Houston for more than 30 years has been sent to federal prison following his conviction on of one count of tax evasion, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation. Edward J. Crouse pleaded guilty Aug. 28, 2018.
Today, U.S. District Judge Rosenthal ordered Crouse to Prison for 18 months to be immediately followed by one year of supervised release. He paid restitution of $678,103 prior to today’s hearing.
Crouse acknowledged in the plea agreement that he had not timely filed a U.S. individual income tax return since 1997. The plea agreement states that Crouse earned more than $4.4 million in years 2009 through 2012.
Crouse admitted in his signed plea agreement that he consistently committed numerous affirmative acts of tax evasion over the years to conceal his true income from the IRS, including concealing the complete business records of his medical practice for calendar years 2006 through 2012 from his bookkeeping and tax return preparation firm. Crouse also admitted he signed an IRS Collection form on or about May 1, 2010, in which he understated the amount of his income from his medical practice available for payment of taxes and household expenditures.
Crouse agreed that the total intended tax loss in his case was approximately $678,103.00, counting both unpaid U.S. Individual Income Taxes and the amounts of federal taxes and FICA that Crouse withheld from the wages of the employees of his medical practice but did not pay over to the IRS.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Laura Sue Aloa Covington Sentenced to Serve 135 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 6, 2019, Laura Sue Aloa Covington, 23, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve over 11 years in federal prison.
Covington pleaded guilty in October 2018 to conspiring with Jeffrey Scott Horner, 34 of Morristown, Tennessee; Joshua Tyler Garrett, 38, of Talbott, Tennessee; Faith Dillman-Covington, 26, of Morristown, Tennessee; Ricky Dwayne Collins, 38, of Morristown, Tennessee and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018.
All defendants in this case have been convicted and await sentencing. Horner is set to be sentenced on February 13, 2019. Garrett is set to be sentenced on March 4, 2019. Sentencing for Dillman-Covington is set for April 1 2019. Finally, Collins is set to be sentenced on April 8, 2018. All face 10 years to life in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was part of the Appalachia High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
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Kayenta Man Sentenced to 14 Years in Federal Prison for Second Degree Murder Related to Drunk DrivingRead the Press Release
PHOENIX – On Feb. 4, 2019, Clayton Begay, 43, of Kayenta, Ariz., was sentenced by U.S. District Judge John Tuchi 14 years’ imprisonment, followed by five years of supervised release. Begay had previously pleaded guilty to one count of second degree murder on August 2018.
In Nov. 8, 2015, Begay who had a history of DUI convictions drove his vehicle with a BAC level between .384 and .401. As a result, Begay caused his vehicle to roll over and crash, killing two passengers and seriously injuring a third passenger. Begay is a member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation, Navajo Nation Department of Law Enforcement and the Arizona Department of Public Safety. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-18-8208-PCT-JJT
RELEASE NUMBER: 2019-006_ Begay
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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.
Kanawha County Man Pleads Guilty to Mail FraudRead the Press Release
CHARLESTON, W.Va. – Robert Casdorph entered a guilty plea to the felony offense of Mail Fraud, announced United States Attorney Mike Stuart. Casdorph, 58, of Charleston, Kanawha County, West Virginia faces up to 20 years of incarceration when he is be sentenced on May 1, 2019. He will also be required to pay restitution to the law firm where he was previously employed. United States Attorney Mike Stuart praised the work of the United States Postal Inspection Service and the Federal Bureau of Investigation.
“It’s hard enough to run a business without employees stealing from you,” said United States Attorney Mike Stuart. “My office is committed to protecting the business community from fraudsters like Casdorph.”
Casdorph previously worked at a Charleston, West Virginia law firm and land company as both a runner and a driver. In 2011, he was internally promoted to receive accounts and help manage money. Casdorph devised a scheme to defraud the law firm by including personal bills within the bills that the law firm was required to pay. He would present a check for signature that included both the law firm/land company bill and his personal bills totaled together. These included power, water, cell phone, taxes and credit card bills. Casdorph would then place the check in the mail. This scheme went on for several years, lasting through 2016. Casdorph also used law firm monies to renovate his home. Finally, Casdorph forged the name of a law firm member on three checks and gave it to a local builder to continue renovations on his home. The total financial loss to the law firm was at least $54,402. Casdorph is no longer employed by the law firm/land company.
Assistant United States Attorney Erik S. Goes handled the prosecution. United States District Judge Joseph R. Goodwin presided over the hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Justice Department Obtains $750,000 from PHH Mortgage Corp. for Unlawfully Foreclosing on Servicemembers’ HomesRead the Press Release
WASHINGTON –The Justice Department today announced that PHH Mortgage Corporation (PHH) has agreed to pay $750,000 to six servicemembers to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by unlawfully foreclosing on their homes without obtaining the required court orders.
“Our men and women in uniform deserve to be able to focus on their job of keeping our country safe without worrying about losing their homes to an unlawful foreclosure,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division is committed to protecting the rights of our servicemembers from unlawful conduct.”
“The brave men and women who serve in our nation’s armed forces frequently are required to deploy and serve overseas with little notice,” U.S. Attorney Craig Carpenito said. “This Office remains resolute in its commitment to honor their personal sacrifices when they do so by ensuring that servicemembers’ rights will be protected, as the law requires, whenever duty calls. This agreement ensures that servicemembers will be compensated for the damages they suffered when their homes were improperly foreclosed upon while they were serving our country.”
The SCRA prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of military service.
PHH is one of the United States’ largest mortgage loan servicers, operating nationwide. The New Jersey-based company also originates, sells and subservices residential mortgage loans.
The Department launched an investigation, which was handled jointly by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey, after it received a complaint in May 2016 through the Department’s Servicemembers and Veterans Initiative. The Department’s investigation revealed that PHH foreclosed on six homes of SCRA-protected servicemembers in violation of the SCRA between 2010 and 2012.
The agreement resolves a suit filed today by the United States in the United States District Court for the District of New Jersey.
The agreement requires PHH to pay $125,000 to each servicemember whose home was unlawfully foreclosed upon. The agreement also requires PHH to provide training to its staff to ensure that servicemembers do not face unlawful foreclosures in the future, and to notify the Department of future complaints regarding servicemembers’ rights.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. Since 2011, the Department has obtained over $468 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
Judge orders 22 years in prison for Hays woman convicted of sexually abusing childRead the Press Release
GREAT FALLS – Hays resident Geneva Nadeau, convicted of sexually abusing and photographing a child, was sentenced today to 22 years in federal prison and to 15 years of supervised release, U.S. Attorney Kurt Alme said.
Nadeau, 38, pleaded guilty earlier to aggravated sexual abuse.
U.S. District Judge Brian M. Morris presided.
Prosecutors said that in October 2015 in Hays, on the Fort Belknap Indian Reservation, Nadeau sexually abused a child, who was younger than 12, and photographed the abuse. Nadeau was indicted after the Blaine County Sheriff’s Office got a tip that Nadeau had an email address that contained child pornography. Nadeau was arrested on unrelated charges and law enforcement discovered she also had on her tablet child porn images, including the sex abuse of the child.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI, Fort Belknap Police Department and the Blaine County Sheriff’s Office.
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Joplin Man Sentenced to 28 Years for Sexual Exploitation of ChildrenRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for the sexual exploitation of several children.
David Allen Giffen, 57, was sentenced by U.S. District Judge M. Douglas Harpool to 28 years in federal prison without parole. The court also sentenced Giffen to spend the rest of his life on supervised release following incarceration.
On July 18, 2018, Giffen pleaded guilty to one count of the sexual exploitation of a child and one count of receiving and distributing child pornography.
According to court documents, Giffen had placed cameras in his bathroom and secretly recorded images and videos of three children. Investigators found images of the victim children on a Micro SD card in Giffen’s cell phone. Investigators also seized a second cell phone from Giffen that contained multiple images of child pornography.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Joplin, Mo., Police Department and the FBI.
Project Safe Childhood
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 Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Joplin Day Care Operator Sentenced for Adoption SchemeRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., day care operator was sentenced in federal court today for a scheme to take the infant daughter of a client to Arkansas to be adopted by another couple.
Lasonya Faye Poindexter, 31, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to six years in federal prison without parole. The court also ordered Poindexter to pay $1,500 in restitution to the victim parents.
On June 21, 2018, Poindexter pleaded guilty to one count of wire fraud.
Poindexter began taking care of a Joplin couple’s two children at her home day care in April 2017. Poindexter admitted that she contacted a couple in Lincoln, Ark., and offered to make arrangements for the couple to adopt one of those children, a five-month-old daughter identified in court documents as Jane Doe. The infant’s parents had never put Jane Doe up for adoption, nor had they ever told anyone that Jane Doe was available to be adopted.
Poindexter made multiple trips to Lincoln in June and July 2017 so the Arkansas couple, who had recently suffered the loss of their unborn child due to a miscarriage, could spend time with Jane Doe. Jane Doe’s parents had never given Poindexter permission to take their daughter across state lines to Arkansas and were unaware that any of the trips occurred. The Arkansas couple usually met with Poindexter at the home of Poindexter’s aunt, but one visit was at the couple’s own home (where they had prepared a nursery room for Jane Doe).
Poindexter falsely told the Arkansas couple that the infant’s mother had left her baby at Poindexter’s house and wanted her to find a good family for Jane Doe because she was the product of a rape. Poindexter told the Arkansas couple that Jane Doe’s mother wanted a closed adoption.
Poindexter asked the Arkansas couple for money to provide for the care of Jane Doe until the adoption was finalized. The couple refused to provide Poindexter money until the adoption was finalized.
The Arkansas woman who sought to adopt Jane Doe viewed the mother’s Facebook page in July 2017 and noticed numerous images of Jane Doe with her mother. On July 20, 2017, the Arkansas woman contacted the mother of Jane Doe through Facebook. She sent the mother of Jane Doe a private message, telling the mother that she and her husband were planning to adopt Jane Doe and asking if she truly wanted to put Jane Doe up for adoption. Jane Doe’s parents then contacted law enforcement.
The Arkansas woman confronted Poindexter after communicating with Jane Doe’s mother. Poindexter sent her a screen shot of an e-mail that appeared to be from an attorney. In reality, the fake e-mail was created by Poindexter. The attorney later told investigators he had never represented Poindexter, had any communication with her and was not involved with any adoption proceeding with Jane Doe.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Joplin, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force, the FBI and the Missouri Division of Family Services.
Johnstown Opioid Treatment Center Owner Indicted for Unlawfully Dispensing Controlled Substances, Money LaunderingRead the Press Release
PITTSBURGH, PA. - The owner and operator of SKS Associates, Inc. (SKS) has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to unlawfully distribute controlled substances, using or maintaining a drug involved premises, conspiracy to commit health care fraud and money laundering, United States Attorney Scott W. Brady announced today.
The five-count Indictment, returned on Feb. 5, named Stephen K. Shaner, 69, of Bulger, PA.
According to the indictment presented to the court, Shaner owns and operates SKS, a clinic that provides Medically Assisted Treatment (MAT) to opioid dependent individuals with a location at 2001 Bedford Street in Johnstown, PA. The indictment alleges that Shaner conspired with Dr. Michael Cash and Dr. Ruth Jones to create and submit unlawful prescriptions for buprenorphine, and then unlawfully dispensed those controlled substances. Shaner is also charged with conspiring with Drs. Cash and Jones to commit health care fraud for allegedly submitting fraudulent claims to Medicare, for payments to cover the costs of the unlawfully prescribed buprenorphine. In addition, Shaner is charged with using or maintaining a drug involved premises between May 2012 and April 2018 for the dispensing of the drugs. Finally the indictment alleges that Shaner used the proceeds of the unlawful drug activity to pay for personal obligations in violation of the money laundering statutes. Dr. Michael Cash and Dr. Ruth Jones have pleaded guilty and are awaiting sentencing.
"We have made significant progress in combatting the opioid epidemic in the Western District of Pennsylvania," said U.S. Attorney Brady. "Overdose deaths are down overall in our District. But our work has not ended. We will continue to investigate and prosecute those who prey on people with opioid addiction."
The law provides for a maximum total sentence of 60 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jessica James Sentenced to Serve 180 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 6, 2019, Jessica James, 30, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 15 years in federal prison.
James pleaded guilty in October 2018 to conspiring with Trinity Scott Johnson, 39, of Morristown, Tennessee; Truman Lee Smith, 24, of Russellville, Tennessee; Colby Scarlett, 20, of Morristown, Tennessee; and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018. In October 2018, Johnson was sentenced to serve 204 months in prison. Smith was sentenced in November 2018 to serve 10 years in federal prison. In January 2019, Scarlett was also sentenced to serve 10 years in federal prison.
Sentencing for codefendant Megan Gilliam, 25, of Morristown, Tennessee, is set for February 11, 2019. She also faces 10 years to life in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also the result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Charles Brown, Jr. 42, of Jackson, pled guilty yesterday before United States District Judge Carlton W. Reeves to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives.
On June 25, 2017, Charles Brown, Jr. arrived at the Jackson Police Department ("JPD") with a female identified as "T.W." Brown stated that he was bringing her to JPD because he believed "T.W." had information about a crime that had been committed. Brown was seen wearing a bulletproof vest walking towards a maroon 2000 Jeep Grand Cherokee. A JPD officer noticed that the vehicle had police dashboard lights on the front windshield. Brown is not a member of any law enforcement agency. JPD officers asked Brown if he had a firearm inside the vehicle and he responded that he did. An inventory of the vehicle was conducted and a Rohm RG38 .38 caliber firearm and a Winchester box containing 28 rounds of ammunition were found.
On April 4, 2018, an indictment was filed charging Brown with being a felon in possession of a firearm. Brown was previously convicted in Hinds County Circuit Court for shooting into an occupied dwelling.
Brown is scheduled to be sentenced by Judge Reeves on May 17, 2019 and faces a maximum sentence of 10 years in federal prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as Project EJECT task force members. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Indictment: Two Topeka Men Were Behind CarjackingsRead the Press Release
TOPEKA, KAN. – Two Topeka men were indicted today on federal carjacking charges, U.S. Attorney Stephen McAllister said.
Chauncey Elliott Lyles, 19, Topeka, Kan., and Mathdaniel Squirrel, 22, Topeka, Kan., were charged with one count of conspiracy and one count of carjacking. In addition, Lyles was charged with brandishing a .223 caliber American Tactical rifle during a carjacking.
The indictment alleges that on Jan. 30 the defendants threatened two drivers and stole their cars, a 2007 Cadillac DTS and a 2013 Dodge Dart. When police responded, the defendants fled in the Dodge Dart. They hit a tree in the 400 block of northeast Freeman and fled on foot before police took them into custody.
If convicted, they face the following penalties:
Conspiracy: Up to five years in federal prison and a fine up to $250,000 on the conspiracy count.
Carjacking: Up to 15 years and a fine up to $250,000.
Brandishing a firearm in a carjacking: Not less than five years and a fine up to $250,000.
The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Skip Jacobs is prosecuting.
OTHER INDICTMENTS
Brian L. Hernandez, 25, who is in custody, is charged with one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana, and one count of unlawful possession of firearms in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 31 in Shawnee County, Kan.
The indictment alleges Hernandez possessed a .40 caliber Glock handgun, a 9 mm Glock handgun, and a .223 caliber Bushmaster rifle.
If convicted, he faces the following penalties:
Possession with intent to distribute cocaine: Up to 20 years in federal prison and a fine up to $250,000.
Possession with intent to distribute marijuana: Up to five years and a fine up to $250,000.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Stephen Hunting is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Independent Contractor Pleads Guilty to Tax EvasionRead the Press Release
A Tulsa man, John D. Petrig, 49, pleaded guilty yesterday to one count of tax evasion in U.S. District Court, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Trent Shores of the Northern District of Oklahoma.
Chief U.S. District Judge Gregory K. Frizzell accepted Petrig’s guilty plea and released the defendant on bond pending sentencing on May 7, 2019.
“The Department of Justice prosecutes tax evaders to hold them accountable for their criminal conduct and to ensure that the tax system is fairly enforced throughout the nation,” stated Principal Deputy Assistant Attorney General Zuckerman.
“The federal income tax system is based upon the compliance of the taxpaying citizens of this nation. When an individual, such as Mr. Petrig, decides to shirk his responsibility to pay what he owes, then other law-abiding citizens end up shouldering the burden,” said U.S. Attorney Trent Shores. “Mr. Petrig’s criminal acts cost taxpayers not only the loss of the unpaid taxes, but also the additional expense for investigating and prosecuting his criminal behavior.”
According to court documents, from 2000 to 2012, Petrig worked for a company as an independent contractor installing ATM machines inside casinos. The company paid him commissions based on the number of transactions executed at the ATMs. In 2012, Petrig late-filed his 2005 tax return, reporting an income of $394,317; however, he did not pay the $110,372 in taxes that he owed. Instead, from January 2012 to December 2012, Petrig attempted to evade payment of the $110,372. When the Internal Revenue Service (IRS) sent a levy to Petrig’s employer directing that Petrig’s commission payments be forwarded to the IRS to pay his tax debt, Petrig sought to thwart this levy by sending a letter to his employer instructing that his future commissions be paid to a fictitious corporation.
Petrig faces a maximum sentence of five years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shores commended special agents of IRS-Criminal Investigation, who investigated the case, and U.S. Department of Justice Tax Division Assistant Chief / Special Assistant U.S. Attorney Andrew J. Kameros and Assistant U.S. Attorneys Victor A.S. Régal and Charles M. McLoughlin, who are prosecuting the case.
Independent Contractor Pleads Guilty to Tax EvasionRead the Press Release
TULSA, Okla. – A Tulsa man, John D. Petrig, 49, pleaded guilty yesterday to one count of tax evasion in U.S. District Court, announced U.S. Attorney Trent Shores of the Northern District of Oklahoma and Principal Deputy Assistant Attorney General Richard E. Zuckerman.
Chief U.S. District Judge Gregory K. Frizzell accepted Petrig’s guilty plea Tuesday in federal court and released the defendant on bond pending sentencing on May 7, 2019.
U.S. Attorney Trent Shores stated, “The federal income tax system is based upon the compliance of the tax paying citizens of this nation. When an individual, such as Mr. Petrig, decides to shirk his responsibility to pay what he owes, then other law abiding citizens end up shouldering the burden. Mr. Petrig’s criminal acts cost taxpayers not only the loss of the unpaid taxes, but also the additional expense for investigating and prosecuting his criminal behavior.”
“The Department of Justice prosecutes tax evaders to hold them accountable for their criminal conduct and to ensure that the tax system is fairly enforced throughout the nation,” stated Principal Deputy Assistant Attorney General Zuckerman.
According to court documents, from 2000 to 2012, Petrig worked for a company as an independent contractor installing ATM machines inside casinos. The company paid him commissions based on the number of transactions executed at the ATMs. In 2012, Petrig late-filed his 2005 tax return, reporting an income of $394,317; however, he did not pay the $110,372 in taxes that he owed. Instead, from January 2012 to December 2012, Petrig attempted to evade payment of the $110,372. When the Internal Revenue Service (“IRS”) sent a levy to Petrig’s employer directing that Petrig’s commission payments be forwarded to the IRS to pay his tax debt, Petrig sought to thwart this levy by sending a letter to his employer instructing that his future commissions be paid to a fictitious corporation.
Petrig faces a maximum sentence of 5 years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shores commended special agents of IRS-Criminal Investigation, who investigated the case, and U.S. Department of Justice Tax Division Assistant Chief / Special Assistant U.S. Attorney Andrew J. Kameros and Assistant U.S. Attorneys Victor A.S. Régal and Charles M. McLoughlin, who are prosecuting the case.
Husband and Wife Sentenced in Scheme to Defraud the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bin “Ben” Wen, 46, and Peng “Jessica” Zhang, 45, both formerly of Horseheads, NY, who were convicted of conspiracy to commit wire fraud and conspiracy to defraud the United States respectively, were sentenced by U.S. District Judge Elizabeth A. Wolford. Wen was sentenced to serve 33 months in prison while Zhang was sentenced to five years of probation, to include six months of home detention. The defendants were also ordered to pay $5,500,000 in restitution.
Assistant U.S. Attorneys Tiffany H. Lee and Grace M. Carducci, who handled the case, stated that between June 2010, and December 2015, the defendants participated in a scheme to defraud departments and agencies of the United States of federal research funds that were awarded to companies controlled by the defendants. The government entities defrauded by the defendants included: the National Science Foundation (NSF); the United States Department of Energy (DOE); and the United States Department of Agriculture (USDA).
In December, 2003, Zhang incorporated United Environment & Energy, L.L.C. (UEE) in Horseheads, NY. Meanwhile, Wen incorporated Advanced Technologies and Materials, L.L.C. (ATM), in December, 2007, also in Horseheads. UEE submitted approximately 13 applications to NSF totaling over $2,600,000, 10 applications to the DOE totaling more than $5,000,000 and four applications to the USDA totaling approximately $650,000. The defendant received, through their companies, approximately $8,400,000 in awards from the NSF, the DOE, and the USDA.
Wen and Zhang submitted false and fraudulent information in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) applications by:• fabricating letters of support and investment;
• providing false information in research grant proposals and reports regarding business entities, business employees, business/research facilities, matching funds and investments; and
• providing falsified reports and emails regarding how federal research funds were expended.A substantial amount of the fraudulently obtained money went toward the personal use and benefit of the defendants.
“By diverting monies that were intended to promote innovation and technology in small businesses, the defendants, through their frauds, not only swindled taxpayers but stifled economic and scientific development,” stated U.S. Attorney Kennedy. “One of the core responsibilities of my Office is to ensure that those receiving federal funds are entitled to those funds and that such funds are spent in accordance with the purpose for which they were given. Where, as here, they are not, prosecution will follow.”
Allison Lerner, NSF’s Inspector General said, “It is imperative that federal award recipients be truthful in their grant submissions and that they use grant money appropriately. Through their repeated falsification of key personnel, investments, budget figures, and other information in proposals and reports, defendants fraudulently obtained millions of taxpayer dollars intended to advance new technologies. I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort to protect the integrity of the SBIR/STTR programs.”
Teri L. Donaldson, Department of Energy Inspector General said: “These sentencings serve as a reminder that fraud in the SBIR Program will not be tolerated. The Office of Inspector General remains committed to ensuring the integrity of our programs by holding accountable those who attempt to hide behind sophisticated schemes aimed at diverting Federal research funds. We appreciate the efforts of the DOJ in pursuing this matter and will continue to work aggressively with our investigative partners to bring to justice those who seek to defraud government programs.”
IRS-Criminal Investigation NY Field Office Acting Special Agent-in-Charge Jonathan D. Larsen said, “Today’s sentencing emphasizes the fact that in addition to our tax mission, we are also an essential part of the larger law enforcement community. The detailed analysis of the extremely complex flow of money in this case demonstrated how the defendants laundered the fraudulent grant proceeds they received and led to the seizure of over $6 million in assets that will be forfeited.”
“The sentencing in this investigation of fraudulent grant practices demonstrates that those who seek to do business with the Federal government will be held responsible for maintaining the highest level of integrity,” said Douglas Shoemaker, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General (DOT-OIG). “The Department has made accountability a top priority and working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts in preventing, detecting and prosecuting grant fraud.”
Today’s sentencings are the result of a joint investigation by Special Agents with the National Science Foundation, Office of Inspector General, under the direction of Inspector General Allison Lerner; the Department of Energy, Office of Inspector General, under the direction of Inspector General Teri L. Donaldson; the Internal Revenue Service, Criminal Investigations, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; and the Department of Transportation, Office of Inspector General, under the direction of Special Agent-in-Charge Douglas Shoemaker.
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Heroin Dealer Sentenced for Role in Multi-State Trafficking ConspiracyRead the Press Release
RICHMOND, Va. – A New York man was sentenced today to 10 years in prison for his role as a source of supply in a two-year drug conspiracy that trafficked 5 kilograms of heroin from New York to Richmond.
“Combatting the opioid epidemic is a top priority for this office,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Individuals like Birthright, who pump poison into our communities for profit, will continue to receive the full attention of federal, state and local law enforcement as we seek to rid our streets of dangerous and highly-addictive opioids.”
According to court documents, from on or before December 2015 through May 2017, Antonio Birthwright, 37, of Bronx, participated in a multi-state heroin trafficking conspiracy by serving as a source of supply to several Central Virginia area drug dealers. Birthwright would travel on commercial bus lines from the Bronx to Richmond to distribute varying amounts of heroin. Once in Richmond, Birthwright would distribute the heroin, collect the drug proceeds, and travel back to New York.
“DEA will continue to work hand in hand with our state and local law enforcement counterparts and commends the U.S. Attorney’s Office for holding accountable those individuals and organizations who transport deadly opioids into Virginia and distribute them in our communities,” said Jesse R. Fong, Special Agent in Charge for DEA’s Washington Field Division. “This investigation is a prime example of the lengths that drug traffickers are willing to go in order to profit from the deadly opioid epidemic, as well as the extent that law enforcement will go in order to bring them to justice.”
In late April 2017, DEA agents executed a search warrant at a Richmond area residence operated by Birthwright’s co-conspirators and recovered 1.4 kilograms heroin, a hydraulic press, drug packaging materials, and $2500. The heroin recovered in the residence was distributed by Birthwright to his Richmond based co-conspirators. During the course of the conspiracy, Birthwright distributed a total of 5 kilograms of heroin.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert and Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-87.
Fourteen Individuals Charged for Operating “Pill Mills” and Illegally Prescribing Drugs to Hundreds of Patients in Multiple Locations in the Philadelphia AreaRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced two indictments charging 14 people with a multitude of crimes, including conspiracy to dispense and distribute controlled substances outside the course of professional practice and without a legitimate medical purpose; distribution of oxycodone; health care fraud; and maintaining a drug-involved premises. These charges are the result of coordinated law enforcement effort across multiple federal, state, and local agencies. U.S. Attorney McSwain announced these charges as part of a press conference held today to highlight the Eastern District of Pennsylvania’s recent efforts to combat the opioid crisis in the District.
Criminal Indictment No. 18-CR-101: Advanced Urgent Care (AUC). This superseding indictment charges 13 defendants with crimes in connection with their employment at AUC, a medical business with office locations at 5058 City Avenue in Philadelphia, PA; 9432 East Roosevelt Boulevard in Philadelphia, PA; 721 Bethlehem Pike in Montgomeryville, PA; and 126 Easton Road in Willow Grove, PA.
The 13 defendants charged in this indictment are Dr. Mehdi Nikparvar-Fard, 49, of Penn Valley, PA; Dr. Vincent Thompson, 70, of Elkins Park, PA; Dr. Loretta Brown, 65, of Landsowne, PA; Dr. Avrom Brown, 70, of Elkins Park, PA; Dr. Frederick Reichle, 83, of Warrington, PA; Dr. Marcus Rey Williams, 70, of Coatesville, PA; Dr. William Demedio, 58, of Springfield, PA; Dr. Neil Cutler, 77, of Warminster, PA; Physician’s Assistant Mitchell White, 33, of Philadelphia, PA; Physician’s Assistant Jason Dillinger, 40, of West Chester, PA; Physician’s Assistant Debra Cortez, 56, of Bristol, PA; Physician’s Assistant Samantha Hollis, 42, of Wilmington, DE, and Office Manager Joanne Rivera, 35, of Pennsauken, NJ. Each defendant is charged with maintaining a drug-involved premises, and five defendants (Nikparvar-Fard, Rivera, Dillinger, Thompson, and White) are charged with conspiring to unlawfully distribute controlled substances.
AUC was owned and operated by Dr. Mehdi Nikparvar-Fard. The indictment alleges that, in exchange for an $80 to $140 office fee, members of the public were offered “pain management” by AUC doctors and physician’s assistants. Pain management typically involved obtaining a prescription for opioid painkillers. The superseding indictment further alleges that AUC medical providers unlawfully prescribed controlled substances, such as opioid painkillers, on a daily basis from January of 2014 through August of 2017 and routinely ignored warning signs that patients were abusing and/or selling their prescription painkillers. The warning signs included urine drug screens that were positive for illicit drugs like heroin, cocaine, and methamphetamine, urine drug screens that were positive for Suboxone (a drug used to treat opiate addiction), and urine drug screen that were negative for all drugs, suggesting the patients may have been selling their prescription pills. In the face of these test results, AUC medical providers nonetheless prescribed enormous quantities of opioid painkillers. According to the indictment, at least 3,678 illegal prescriptions were issued by AUC’s doctors and physician’s assistants.
Criminal Indictment No. 18-CR-591: Drs. Murray Soss and Frederick Reichle. This indictment charges Dr. Murray Soss, 78, of Philadelphia, PA, and Dr. Frederick Reichle,[1] 83, of Warrington, PA, with conspiracy to distribute and dispense oxycodone, outside the usual course of practice and not for a legitimate medical purpose. Dr. Soss is also charged with seven counts of distributing oxycodone and seven counts of health care fraud.
As alleged in the indictment, Soss hired Reichle to write oxycodone prescriptions for Soss’s pain management patients after Soss’s Pennsylvania medical license was suspended in April 2017. Soss and Reichle charged the patients a fee to obtain oxycodone prescriptions, written by Reichle, that were not medically necessary. At times, Soss allegedly collected $2,500 in exchange for accepting a new patient for the sole purpose of that patient obtaining Schedule II narcotics. The indictment further states that Reichle provided oxycodone prescriptions to one of Soss’s patients without this patient being present, and claims Soss was engaged in a sexual relationship with this same patient. It further states that Soss obtained oxycodone prescriptions in Soss’s name and then distributed the prescriptions to this patient in exchange for sexual favors.
If convicted, these 14 defendants face a range of penalties, including substantial prison time and fines, depending on each defendant’s degree of involvement in the alleged crimes.
“Our country is in the midst of a deadly drug epidemic, and our District is, in many ways, ground zero in combatting this crisis,” said U.S. Attorney McSwain. “As alleged in these indictments, thousands of illegally prescribed pills flooded our streets because of the conduct of these defendants. My Office will continue to do its part to enforce our nation’s drug laws and hold physicians, physician’s assistants, and their agents accountable. As these indictments show, medical professionals who violate their oaths and exploit their patients’ addictions to make an easy buck will be prosecuted to the fullest extent of the law.”
“We're seeing it over and over again: medical professionals, deciding to cash in on our area’s opioid crisis,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “It seems ‘first, do no harm’ is a principle fast forgotten when money starts changing hands. These doctors are just doling out piles of pills to anyone willing to pay for them. It’s despicable, it’s criminal, and the FBI and our law enforcement partners will never stop working to put pill mills, and the people who run them, out of business.”
“The defendants arrested in this case are accused of setting up and operating a scheme in which the defendants sold opioid prescriptions to individuals without any legitimate medical need or purpose in exchange for cash. The defendants issued 3,678 prescriptions which amount to hundreds of thousands of pills being used by addicted individuals,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “When the DEA determines that a doctor is prescribing controlled substance medications without a legitimate medical purpose, the DEA will refer the investigation to the US Attorney’s Office for prosecution to the fullest extent of the law.”“Healthcare providers who ignore their Hippocratic oaths and put illegal prescription drugs on our streets are nothing more than drug dealers in white lab coats,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General for the Department of Health and Human Services (HHS-OIG). “Medical providers who disregard the law and put greed in front of helping patients can expect criminal repercussions.”
“An important mission of the Office of Inspector General is to investigate allegations of health care fraud related to the U.S. Department of Labor's (DOL) Office of Workers’ Compensation Programs (OWCP). We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s benefit programs,” stated Richard Deer, Special Agent in Charge, Philadelphia Region, U.S. Department of Labor, Office of Inspector General.
The AUC case was investigated by the following agencies: Drug Enforcement Administration; the Federal Bureau of Investigation; Health and Human Services, Office of Inspector General; the Department of Labor, Office of the Inspector General; and the Office of Personnel Management. These agencies were assisted in their investigation by the Pennsylvania Department of State; Pennsylvania Office of Attorney General; Abington Police Department; Easttown Township Police Department; and Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys Jason P. Bologna and Seth Schlessinger.
The Soss/Reichle case was investigated by Health and Human Services, Office of Inspector General and Federal Bureau of Investigation, with assistance from Pennsylvania Office of Attorney General and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Karen Marston.
[1] Dr. Reichle also is a named co-defendant in the AUC superseding indictment, though the charges alleged in the AUC case arise from conduct that is separate from that alleged in Soss/Reichle case.
Four Individuals Charged for Their Participation in Schemes to Attempt to Defraud Victims of Nearly $46 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the unsealing today of an Indictment charging four individuals, CHRISTOPHER HAMMATT, a/k/a “Craig Johnson,” SUSAN HAMMATT, JOSEPH HOATS, and EDWIN TANGLAO, with participation in multiple fraud schemes. HOATS was arrested today in California and will be presented later this afternoon before U.S. Magistrate Judge Shashi H. Kewalramani. The HAMMATTs are expected to surrender later today in Oregon and will be presented this afternoon in federal court there. TANGLAO was already in custody on state charges in Texas. The case is assigned to U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendants fraudulently enriched themselves at the expense of others, including small businesses in New York. Equally disturbing is the Hammatts’ alleged use of the federal courts to perpetrate their fraud. Now, as a consequence of their alleged conduct, the Hammatts will return to the Southern District of New York not as civil plaintiffs but as criminal defendants.”
The Indictment unsealed today in Manhattan federal court alleges two fraud schemes. As alleged in the Indictment[1]:
The first scheme arises from a civil lawsuit in the United States District Court for the Southern District of New York, in which CHRISTOPHER HAMMATT, a/k/a “Craig Johnson,” and SUSAN HAMMATT were plaintiffs. The HAMMATTs’ lawsuit against a multinational car company based in Detroit, Michigan (“Car Company-1”), alleged that CHRISTOPHER HAMMATT, a lawyer by training, sustained “traumatic brain injury” when the airbags suddenly deployed in his vehicle, which was manufactured by Car Company-1. While the HAMMATTs’ lawsuit was pending, the HAMMATTs created a fake $16.5 million settlement agreement, which included a forged signature of Car Company-1’s attorney, and used the fake settlement agreement to borrow approximately $75,000 from a litigation funding company.
To carry out their fraud scheme, and to conceal their identities when communicating with victims, the HAMMATTs created the fake identity, “Craig Johnson,” who purported to be a “legal coordinator” who represented the HAMMATTs. In that capacity, “Johnson” negotiated directly with legal funding companies to induce them to lend money to the HAMMATTs, using the fraudulent settlement agreement as collateral. In one email, “Johnson” wrote to a legal funding company, “I know that they [the HAMMATTs] will be getting a large sum of money in about six months, but it is so sad to see this family suffer. They are on food stamps and get donations from the Church for their kids clothing.”
When the HAMMATTs’ fraud came to light, SUSAN HAMMATT submitted a declaration to the Court that contained numerous false statements regarding her and her husband’s involvement in the fraud.
The Indictment also alleges that each of the defendants participated in a scheme to defraud oil and gas trading companies. Specifically, the defendants induced victims to transmit money to the defendants in exchange for large orders of oil and gas products that the defendants could not fulfill. To conceal the nature of the fraud, the defendants created fake companies and fraudulent documents. For example, the Indictment alleges that JOSEPH HOATS, an attorney, and SUSAN HAMMATT created the company “Shell Western Supply & Trading,” and used the Shell Oil Company logo without permission, as a means to trick victims. The defendants succeeded in defrauding a New York-based victim of nearly $1.5 million as part of their oil and gas scheme.
* * *
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents with the United States Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Nicholas W. Chiuchiolo is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Wire fraud conspiracy
18 U.S.C. § 1349
CHRISTOPHER HAMMATT, a/k/a “Craig Johnson” (age 49)
SUSAN HAMMATT (age 44)
20 years in prison
2
Wire fraud
18 U.S.C. § 1343
CHRISTOPHER HAMMATT, a/k/a “Craig Johnson”
SUSAN HAMMATT
20 years in prison
3
Perjury
18 U.S.C. § 1621
SUSAN HAMMATT
5 years in prison
4
Wire fraud conspiracy
18 U.S.C. § 1349
CHRISTOPHER HAMMATT, a/k/a “Craig Johnson”
SUSAN HAMMATT
JOSEPH HOATS (age 69)
EDWIN TANGLAO (age 54)
20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Waterbury Resident Sentenced to Prison for Violating Sex Offender Registration LawsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ISMAEL SANCHEZ COLON, 44, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 10 months of imprisonment, three months of home confinement and five years of supervised release, for violating the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, in December 2001, Sanchez Colon was convicted in the State of Wisconsin of the felony offense of causing a child between the ages of 13 and 18 to view sexual activity, and he was subsequently ordered to comply with sex offender registration requirements for a period of 15 years after completion of a five-year term of probation.
In March 2009, Sanchez Colon advised the State of Wisconsin that he had moved to Puerto Rico.
Sanchez Colon began residing in Connecticut in approximately April 2016, based on evidence that he obtained food stamps and Husky healthcare benefits at that time, and did not register as a sex offender in this state, as required by law. He subsequently began working at a restaurant in Waterbury, and he obtained a Connecticut driver’s license. Between April 2016 and March 2018, Sanchez Colon was registered in Puerto Rico, and he traveled to Puerto Rico to update his registration. At no time did Sanchez Colon advise Wisconsin and Puerto Rico of his Connecticut residence.
Sanchez Colon’s non-compliance with sex offender registration requirements in Connecticut was discovered when he used his Waterbury address in the process of renewing his U.S. passport.
Sanchez Colon has been detained since his arrest on April 12, 2018. On September 5, 2018, he pleaded guilty to the SORNA violation.
Sanchez Colon has two previous convictions for SORNA violations, and he has a SORNA charge pending in Colorado.
Sanchez Colon will reside in Puerto Rico when he is released from prison.
This matter was investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Deborah R. Slater.