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Wednesday 6 February 2019
Former Office Manager Sentenced for Embezzlement SchemeRead the Press Release
TULSA, Okla. –A former Tulsa resident has been sentenced today in U.S. District Court for committing wire fraud and for signing a false tax return.
U.S. District Judge Claire V. Eagan ordered Kristiana P. Collins, 44, to federal prison for 21 months to be followed by 3 years of supervised release.
“White collar crime undermines the rule of law and harms business. My office ensures there is an accounting for those who embezzle from businesses in northeastern Oklahoma,” said U.S. Attorney Trent Shores. “Ms. Collins abused the responsibility entrusted to her, and now she will pay the price for stealing more than $640,000. Moreover, she also cheated on her tax returns. Cheaters get caught, and she will suffer the consequences of her greed. I commend the Creek County Sheriff’s Office, the IRS Criminal Investigations Division, the FBI and AUSA Kevin Leitch for their excellent work on this case.”
At her plea hearing last September, Collins admitted to embezzling funds from her former employer between 2008 and 2014, when she responsible for paying the credit card accounts and handling bookkeeping operations at a company in west Tulsa. She also admitted to failing to report the illegal income on her federal tax returns.
While working in her position, Collins secretly obtained two Visa cards for herself under the company’s account, which was supposed to be used by various approved employees for company purposes. As part of her scheme, Collins made purchases for her own personal gain on both credit cards and later used company funds to pay the billed charges.
In papers filed with the court, the government explained that Ms. Collins had squandered her employer’s funds by making hundreds of purchases in the course of taking trips to Las Vegas, Taos, Cancun and other locations in and around Oklahoma. In 2013 alone, Collins charged $161,961.67 on the company credit card account. The court ordered Collins to repay the victim $640,314.17 and to pay the Internal Revenue Service $99,160 for taxes that she owed on the stolen funds.
Investigative agencies involved in this case include the Creek County Sheriff’s Office, the Federal Bureau of Investigation, and the Department of Treasury, Internal Revenue Service—Criminal Investigation Division. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Former Clinton Township Trustee Dean Reynolds Sentenced to 17 Years in Prison for Multiple Bribery SchemesRead the Press Release
Former Clinton Township Trustee Dean Reynolds, 51, of Clinton Township, Michigan, was sentenced today to seventeen years in prison and ordered to pay $15,000 in fines based on his convictions at trial on four counts of bribery conspiracy and ten counts of accepting bribes, in connection with millions of dollars in township garbage, towing, and engineering contracts, United States Attorney Matthew Schneider announced today.
During the trial of this matter, the evidence showed that Reynolds demanded and took over $150,000 in bribes in four separate bribery conspiracies involving four different government contracts. The bribes included over $75,000 in cash, $50,000 in free legal services for Reynolds’ divorce, and an all-expenses paid trip to Disney World, including an eight-night stay in a deluxe-level room costing over $600 per night. The jury found that Reynolds demanded bribes in connection with the Clinton Township garbage-hauling contract worth over $16 million, the township engineering contract worth over $500,000 per year, and the township towing contract. In addition, the jury convicted Reynolds of conspiring to pay bribes to former New Haven, Michigan Trustee Brett Harris and to corrupt the garbage contract for New Haven. Reynolds was convicted of taking multiple bribes from convicted garbage executive Chuck Rizzo, from Paulin Modi, a former managing partner of Giffels Webster Engineering, who was also convicted of bribery, and from Gasper Fiore, the owner of multiple towing companies in southeast Michigan, who was also previously convicted of bribery conspiracy.
Schneider was joined in the announcement by Timothy Slater, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
United States Attorney Schneider said, “The Court’s sentence today shows that public officials who violate the trust of their communities by taking bribes and betraying their oaths of office will not escape our pursuit of justice.”
“Today’s sentence serves as a reminder that there are consequences for robbing our communities of the honest government they deserve,” said SAC Slater. “The FBI and the Detroit Area Public Corruption Task Force will continue to pursue those who - like Mr. Reynolds - abuse their position for personal financial gain.”
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, R. Michael Bullotta, and Adriana Dydell.
Florida Woman Sentenced to Prison for $1.3 Million Mail Fraud Scheme Involving False Claims of Veterans Affairs SettlementRead the Press Release
LAS VEGAS, Nev. – A Florida resident was sentenced Tuesday to 27 months in federal prison and three years’ supervised release for committing a $1.3 million mail fraud scheme, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Maria Jesus Luciano, 67, of Tampa, Florida, previously of Las Vegas, pleaded guilty without the benefit of a plea agreement to 11 counts of mail fraud. In addition to the prison term, U.S. District Judge Andrew P. Gordon ordered her to pay $1,292,748 in restitution.
According to court documents, Luciano resided in Las Vegas in 2010 and 2011. During that time period, Luciano befriended 48-year-old James McMillan. After relocating to Tampa in 2011, Luciano fraudulently represented to McMillan that she had a pending settlement award from the U.S. Department of Veterans Affairs and that she would share the settlement award with McMillan if he provided her money to pay fees, interest, and other costs related to obtaining the settlement award. In fact, although she served briefly in the U.S. Army and received some benefits from the U.S. Department of Veterans Affairs for a non-military service related disability, Luciano was not entitled to any large monetary award or settlement.
In July 2013, Luciano mailed McMillan a fake promissory note granting him an interest in the purported settlement award. McMillan in turn used his position as a controller at a large real estate investment business to embezzle and steal approximately $1.3 million from the business and its investors. He mailed Luciano numerous envelopes and packages containing the stolen money, which Luciano used for gambling and personal expenses.
On May 2, 2017, McMillan pleaded guilty to wire fraud in a separate case and is pending sentencing before U.S. District Judge Gordon.
The case was investigated by the FBI with assistance from the Offices of Inspectors General for the U.S. Department of Housing and Urban Development and the U.S. Department of Veterans Affairs. Assistant U.S. Attorney Patrick Burns prosecuted the case.
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Felon Pleads Guilty to Multiple Fraud ChargesRead the Press Release
BOSTON – A Springfield man pleaded guilty in federal court in Springfield yesterday in connection with various fraud schemes.
Talal H. Soffan, 46, pleaded guilty to making false statements to a federally insured financial institution, wire fraud, aggravated identity theft, conspiracy, and bank fraud. U.S. District Court Judge Mark G. Mastroianni scheduled Soffan’s sentencing for May 23, 2019.
In 2014, Soffan was charged by indictment, and in 2018, he was charged by information with additional criminal counts.
In March 2007, Soffan applied for two bank loans totaling $45,000 for his company, All Waste Management LLP. In the process of securing the loans, Soffan concealed his and an associate’s prior felony convictions. After receiving the loans, Soffan then misspent the loan proceeds, defaulted on the loans, and exploited both accounts in connection with a series of credit card bust-out schemes. In those schemes, Soffan defrauded various banks and credit card companies through 27 different accounts obtained in his name, the name of his business, other businesses, and other individuals, resulting in an overall loss of approximately $528,624.
In addition, Soffan conspired with a local real estate broker to defraud various banks relating to foreclosed properties owned by the banks. Soffan sent the broker e-mails containing his company’s genuine bid and false bids from other companies to ensure that his company received contracts to perform repair and maintenance work on the foreclosed properties. In exchange for receiving approximately $75,186 in contracts for his company, Soffan allowed the broker to keep approximately five percent of his company’s invoiced amounts.
The charges of making false statements to a federally insured financial institution and bank fraud each provide for a sentence of no greater than 30 years in prison, up to five years of supervised release, and a fine of $1 million. The wire fraud charges each provide for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of $250,000. The conspiracy charge provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. The aggravated identity theft charges provide for a mandatory two year prison sentence consecutive to any other sentence imposed. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office are prosecuting the case.
Federal Law Enforcement Efforts to Combat the Opioid CrisisRead the Press Release
PHILADELPHIA, PA – On February 6, 2019, United States Attorney William M. McSwain convened a press conference to highlight the Eastern District of Pennsylvania’s recent efforts to combat the opioid crisis. U.S. Attorney McSwain announced two separate criminal indictments charging 14 individuals 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. U.S. Attorney McSwain also announced details about a civil lawsuit his Office has filed to prevent the establishment of a facility in Philadelphia where drug users would go to inject themselves with illegal narcotics. The suit, filed against the nonprofit corporation Safehouse and its Executive Director, Jeanette Bowles, seeks a judicial decree that Safehouse’s planned opening of one or more so-called “consumption rooms” would violate federal law. This lawsuit is the first of its kind in the United States.
Remarks as Prepared for Delivery
Good morning. I’m Bill McSwain, the U.S. Attorney, and I am here today to update the public on our ongoing efforts to combat the opioid epidemic in the Eastern District of Pennsylvania, and to make some specific announcements about several important cases in our District.
First, I want to recognize and thank the representatives from multiple federal, state, and local law enforcement partners that are here today as part of our announcement of two recent criminal indictments. Thank you to the Federal Bureau of Investigation; the Drug Enforcement Administration; the Department of Health and Human Services, Office of Inspector General; the Department of Labor, Office of Inspector General; the Office of Personnel Management; Pennsylvania Department of State; the Pennsylvania Office of the Attorney General; the Abington Police Department; the Easttown Township Police Department, and the Philadelphia Police Department.
I also want to thank Greg David, the Chief of our Civil Division at the U.S. Attorney’s Office, who is here with me to announce developments on the civil enforcement front.
Our collaborative approach to attacking the opioid epidemic includes aggressive criminal prosecutions and other initiatives to promote awareness, prevention, and addiction recovery. On both the criminal and civil side, we continue to focus on stopping the illicit production, distribution, and use of opioids. It is our duty to hold accountable those who have flooded our streets with heroin, synthetic opioids, and prescription opioids, and we will continue to indict and aggressively prosecute, including through civil penalty, everyone in that supply chain: manufacturers, importers, distributors, doctors, pharmacies, organized crime, and street dealers. Those who make money by illegally exploiting addiction will be caught and prosecuted to the fullest extent of the law.
Prosecuting doctors who run “pill mills” and commit Medicare fraud is a priority for the Department of Justice and this Office, and two recent cases in the Eastern District are excellent examples of our work in this area. In one case, we charged physicians Murray Soss and Frederick Reichle with operating a pill mill medical practice out of Dr. Soss’s medical office in Philadelphia, and charged Dr. Soss with healthcare fraud for billing medically unnecessary charges to Medicare. The indictment describes an elaborate scheme in which Dr. Soss paid others to recruit so-called “patients” seeking oxycodone and then paid Dr. Reichle to write prescriptions for those patients in Dr. Soss’s office, even though they had no medical need for the prescriptions. According to the indictment, Dr. Soss recruited Dr. Reichle after his own medical license was suspended by the Drug Enforcement Administration (DEA). And in one particularly heinous example, Dr. Soss even directed Dr. Reichle to write oxycodone prescriptions for a long-time patient with whom Dr. Soss had a sexual relationship, knowingly feeding this victim’s addiction in order to obtain sexual favors.
In a second recent case, we have charged eight physicians, four physicians’ assistants, and an office manager in connection with the operation of a pill mill at Advanced Urgent Care (or AUC). AUC is a provider of medical services, including pain management, with four locations throughout the Eastern District of Pennsylvania. The superseding indictment charges Dr. Frederick Reichle (again) along with Dr. Mehdi Nikparvar-Fard, Dr. Vincent Thompson, Dr. Loretta Brown, Dr. Avrom Brown, Dr. Marcus Rey Williams, Dr. William Demedio, and Dr. Neil Cutler; Physician’s Assistants Mitchell White, Jason Dillinger, Debra Cortez, and Samantha Hollis; and Office Manager Joanne Rivera, with multiple drug crimes.
Through a long-term, coordinated, multi-agency investigation, it became clear that AUC was functioning as a “pill mill” in its treatment of pain management patients. Our law enforcement partners worked with our Office to uncover a whopping number of illegal prescriptions – at least 3,678 alleged illegal prescriptions that were medically unnecessary. We uncovered a pattern of abuse where these doctors and physician’s assistants provided patient after patient with oxycodone – often despite clear evidence of overt illicit drug use and despite no diagnostic reason supporting the prescriptions.
As we work to stem the tide of illegal, medically unnecessary prescriptions, we remain committed to taking out violent drug-traffickers who operate on the streets and suppliers who cause overdose deaths. Recently, working again with the DEA, we secured a guilty verdict against Angel Luis Concepcion-Rosario, of Reading, Pennsylvania, for trafficking in fentanyl. Fentanyl, of course, is the deadliest and most unpredictable opioid we see on the streets, and fentanyl is a major source of the spike in overdose deaths in Philadelphia.
A federal jury also recently convicted Emma Semler of Collegeville, Pennsylvania, for distributing heroin and thereby killing her friend. The jury at the Semler trial heard about how the defendant supplied the victim with heroin, watched as she injected it, and then fled the scene when she realized the victim was overdosing on the bathroom floor of a fast-food restaurant in West Philadelphia, leaving her to die. Both defendants - Concepcion-Rosario and Semler - await sentencing, and we will do everything in our power to ensure they receive the punishment that they both deserve.
I’m grateful for the hard work of our agency partners and of those in my Office who prosecuted these cases, especially Assistant United States Attorneys Karen Marston, Jason Bologna, Seth Schlessinger, Kishan Nair, Randy Hsia, and Nicole Phillips. By enforcing our drug laws in these cases and others, we prevent addiction and violence from spreading.
Beyond our criminal prosecutions and civil enforcement work, our Office participates in many types of outreach programs that focus on prevention and addiction recovery. One such program of particular note is Relapse Prevention Court, a program just launched in October 2018 in coordination with the U.S. District Court, the Federal Defenders’ Office, and U.S. Pretrial Services. Relapse Prevention Court helps non-violent drug users who have entered the criminal justice system to maximize opportunities for long-term recovery from substance abuse while they complete their terms of supervised release. The key attribute of this program is that it provides participants with a path forward to long-term addiction recovery while abiding by federal, state, and local laws.
The work that we do in all these areas helps to keep drugs out of our communities and sends a powerful deterrent message. And this work helps to save lives.
Today also marks a new chapter in the federal government’s fight against the opioid epidemic. Philadelphia is, in many ways, ground zero in this crisis. That is why my Office, and our dedicated federal, state, and local law enforcement partners, stand together today to reassure the community that we are aggressively fighting this epidemic by deploying all of the tools and resources at our disposal.
I am here to announce that the United States Attorney’s Office for the Eastern District of Pennsylvania has filed a federal civil lawsuit – the first of its kind in the United States – to ask the U.S. District Court to declare that so-called “supervised injection sites” violate federal law. Because these deadly drug injection sites undoubtedly do violate the law. And because it is the Department’s job to promote and enforce the rule of law, not to look the other way. Normalizing the use of deadly drugs like heroin and fentanyl is not the answer to solving the opioid epidemic.
The civil lawsuit that we have filed names Safehouse, a private, non-profit corporation formed for the specific purpose of opening a deadly drug injection site in the Kensington neighborhood of Philadelphia. Safehouse was incorporated in August 2018, after the Philadelphia Mayor’s Office publicly endorsed the idea of opening an injection site and Philadelphia District Attorney Larry Krasner pledged not to bring charges against those who fund, operate, or use such sites.
Emboldened by the Mayor’s support and the District Attorney’s blessing, Safehouse ramped up its operations in the months that followed. Its website described how the site would be operated: as drug users arrived at Safehouse, staff would direct them to a “consumption room,” provide them with drug paraphernalia, and observe the users as they prepare and inject themselves with illegal narcotics. Safehouse’s staff would monitor the users for signs of overdose and, if necessary, step in and try to provide overdose reversal services.
Let’s step back for a moment, consider the big picture, and discuss what we really know about injections sites. Safehouse claims that an injection site in Philadelphia would “save lives.” But are we sure about that? Consider the study the City of Philadelphia commissioned to evaluate this very issue. The way the study qualified its recommendations is telling:
The vast majority of the available evidence in recent years comes from only one Supervised Consumption Facility, the [facility] in Vancouver, Canada. The current models for harm-reduction estimates are sensitive to population-specific factors. In turn, hyper-local population-level characteristics . . . and social and economic factors determine the need and potential utilization by [drug users] of Supervised Consumption Facilities. The majority of the available literature with useful statistical methodology and analysis relies more commonly on the Vancouver Supervised Consumption Facility than on any other site. It is uncertain how relevant or applicable the assumptions are to communities in other geographies.
The study, by Main Line Health Center at Lankenau Institute for Medical Research, went on to caution that “[b]ecause it appears that existing Supervised Consumption Sites have not incorporated rigorous evaluation into their design and implementation, it has been difficult to disentangle the full impact of Supervised Consumption Sites on relevant harm-reduction outcomes.”
Translation: the study has no idea whether an injection site in Philadelphia would actually save lives. So when Safehouse declares that an injection site would save lives, all they’re doing is speculating and trying to pass it off as fact. They have no proof and no reliable data. There is no expert consensus that this plan would do any good for anybody.
But here is what we do know: setting up a drug house is illegal. And on the legal issues in this case, our position has remained firm and our communications to Safehouse clear. Safehouse’s operation would violate federal law, namely, section 856(a)(2) of the Controlled Substances Act. That section makes it unlawful to “manage or control any place” that is “knowingly and intentionally . . . ma[d]e available for use . . . for the purpose of unlawfully . . . using a controlled substance.” On November 9, 2018, I sent a letter to Safehouse, advising that if it went forward with its plans as described, my Office would pursue appropriate remedies unless Safehouse provided me with assurances that it would comply with the law. In response, Safehouse provided no such assurances, and its actions (most recently, its hiring of an Executive Director last month) point to the opposite conclusion.
The law is clear – and my job is to respect and enforce the rule of law. If Safehouse wants to operate an injection site, it should work through the democratic process to try to change the law. It should not expect prosecutors to turn a blind eye to wholesale illegal behavior and play politics by allowing political ideologies to determine their prosecutorial decisions. That would be an abandonment of my oath to enforce the law. While that may be a way of life for the Philadelphia District Attorney, it is something that I will never do.
And how much political support do injection sites really have among our law making bodies, anyway? The answer is none. Congress does not support the idea, the Pennsylvania legislature does not support it, nor does the Philadelphia City Council. Councilwoman Maria Quinones Sanchez, whose district includes Kensington, does not support injection sites. Governor Wolf does not support them, nor does Pennsylvania Attorney General Shapiro.
What is Safehouse’s response to this lack of support and to the fact that it is illegal under federal law to set up a drug house? Their response is defiance. Their response is that they are beholden to a supposedly higher power than our laws; they are beholden to saving lives. While I do not doubt Safehouse’s good intentions, substituting its judgment in place of the law is not the way that democracy works. It is not the way that a republic works. If Safehouse doesn’t like the law, it should channel its efforts into changing it. The bottom line is that when it comes to our justice system, there is no higher purpose than respecting the rule of law when our laws are consistent with our Constitution and enacted by our democratically elected representatives. If you think that you’re above the law, you’ll soon find yourself in court to account for your actions. That is exactly the situation here.
In closing, the lawsuit that we have filed is a necessary and important step in the Justice Department’s enforcement of our federal drug laws. But it is just one part of my Office’s comprehensive approach to addressing the opioid crisis. Again, I want to thank all of the law enforcement partners here today; we are proud to stand with you as we fight this crisis together.
Thank you, and at this time, I am happy to take your questions relating to these announcements.
Federal Charges Announced for Disaster Fraud Related to Hurricane MatthewRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces an Indictment charging SHEILA RUFFIN, 50, of Rocky Mount, with 15 counts of Disaster Fraud related to the Hurricane Matthew recovery effort conducted by the Federal Emergency Management Agency (FEMA).
According to the allegations in the Indictment, RUFFIN, knowingly made materially false, fictitious, and fraudulent statements and representations, and knowingly made and used false writings and documents knowing the same to contain materially false, fictitious, and fraudulent statements and representations, to FEMA, in an application for benefits authorized, transported, transmitted, transferred, disbursed, and paid with FEMA funds in connection with the Presidential Major Disaster Declaration for the State of North Carolina, effective October 10, 2016.
RUFFIN is alleged to have made false statements and submitted fraudulent documentation in connection with applications for FEMA assistance following Hurricane Matthew. From January 31, 2017 to January 29, 2018, RUFFIN was awarded more than $11,000.00 in rental assistance to which she was not entitled.
If convicted of the Disaster Fraud charges, RUFFIN would face a maximum penalty of 30 years imprisonment, a $250,000 fine, a term of supervised release of not more than 3 years, and restitution.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case was conducted by the U.S. Department of Homeland Security Office of Inspector General. Assistant United States Attorney Toby Lathan is prosecuting the case for the government.
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Fayetteville Man Sentenced to 15 Years in Federal rison for Receiving and Possession of Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Joshua Box, age 35, of Fayetteville, Arkansas was sentenced yesterday to 180 months in federal prison followed by thirty years of supervised release, and ordered to pay a total of $13,000.00 in restitution for one count each of Receiving Child Pornography and Possession of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in May of 2018, Arkansas Community Correction (ACC) was conducting a home visit/compliance check on Box’s residence, as he is a supervised registered sex offender. Box admitted to ACC officers that he had downloaded child pornography from the Dark Web and saved it to his hard drive. Box’s electronic devices were seized by Homeland Security Investigators, and a forensic review yielded images and videos of child pornography.
Box was indicted in May 2018 on federal charges and plead guilty in August 2018.
This case was investigated by the Internet Crimes Against Children (ICAC) Task Force and the National Center for Missing and Exploited Children (NCMEC). Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Families United Services and Pamela McKenzie to pay $645,000.00 and agree to exclusion in order to resolve False Claims Act allegationsRead the Press Release
ATLANTA – Families United Services, Inc. (FUS) and Pamela McKenzie, the owner of FUS, have agreed to pay $645,000, and to be excluded from federal health care programs for a period of five years to resolve allegations that they submitted claims to the Georgia Medicaid Program for behavioral health services that they never provided. The effect of the exclusion is that federal health care programs will not make any payments to FUS or McKenzie, or anyone who employs them, for any services that they have provided.
“Georgia Medicaid provides valuable mental health services and treatment for many of Georgia’s most vulnerable citizens,” said U.S. Attorney Byung J. “BJay” Pak. “False billing of the Georgia Medicaid Program diverts monies for citizens who depend on Medicaid for vital medical care. Our pursuit of individuals who defraud federal health care programs will not cease.”
“Working with our law enforcement partners, we are dedicated to protecting patients and the federal health care programs intended to serve them,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Using our exclusion authority is a great remedy for banning bad providers from the program and protecting the American taxpayer.”
“We appreciate the Department of Community Health’s Program Integrity Section for being diligent in bringing this issue to our attention to investigate,” said Attorney General Chris Carr. “We will continue to work with our federal partners and root out those organizations and individuals that cross legal boundaries and do so at the expense of taxpayers.”
The government alleges that FUS and McKenzie violated the False Claims Act, 31 U.S.C. § 3729, et seq., by causing the submission of false claims to the Georgia Medicaid Program between October 1, 2010 and June 10, 2012 for behavioral health care services that were never provided.
FUS is a Georgia corporation that was enrolled with the Georgia Department of Community Health to provide behavioral health services. Between October 1, 2010 through June 10, 2012, FUS provided services to Medicaid members under two programs operated by the Georgia Department of Behavioral Health and Developmental Disabilities—Assertive Community Treatment (ACT) and Core. ACT is a recovery focused, high intensity, community based service for adults with severe and persistent mental illness. Core services are a comprehensive range of outpatient and out of center mental health services provided to persons of all ages. The Georgia Medicaid Fraud Control Unit initiated its investigation after receiving a referral from the Program Integrity Section of the Georgia Department of Community Health.
This settlement highlights a powerful tool to protect federal health care programs and beneficiaries and to hold accountable those who commit health care fraud—the exclusion authority of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Section 1128 of the Social Security Act gives HHS-OIG the authority to exclude individuals and entities from participation in federal health care programs for fraud or other misconduct.
The claims resolved are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, and the U.S. Department of Health & Human Services Office of Inspector General.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti and Assistant Attorney General Sara Vann.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Employee of Mississippi Band of Choctaw Indians Pleads Guilty to EmbezzlementRead the Press Release
Jackson, Miss. – Savannah Galvan, 30, of Philadelphia, a member of the Mississippi Band of Choctaw Indians, entered a guilty plea today before U.S. District Judge Henry T. Wingate to embezzlement for her role in the unauthorized use of a tribal-issued fuel credit card to purchase fuel for her personal use, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
The embezzlement took place at gas stations located in Mississippi, Alabama, and Louisiana, while Galvan was employed with the Mississippi Band of Choctaw Indians as Recreation Coordinator for the Crystal Ridge Facility Building.
Sentencing has been set for May 7, 2019 at 1:30 p.m. Galvan faces a possible statutory sentence of five years in prison and a fine of $250,000.
The case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It is being prosecuted by Special Assistant United States Attorney Kevin Payne.
Embezzlement from Doctor's Office Sends Former Office Manager to Federal Prison for Nearly Three YearsRead the Press Release
Cassandra D. Eberhart, age 49, of Moro, Illinois, has been sentenced to serve 33 months in federal prison for her convictions of wire fraud and filing a false federal income tax return, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Eberhart previously pleaded guilty to the charges in October 2018.
Eberhart’s convictions stem from her employment as the office manager at A to Z Pediatrics in Caseyville, Illinois. From 2011 through 2017, she embezzled over $350,000 from the business by making unauthorized personal charges on medical practice credit cards, overpaying herself salary, reimbursing herself for overtime and mileage that was not authorized, fraudulently adding herself and family members to medical insurance, falsifying business journal entries and diverting electronic payments from the medical practice’s bank account to a personal credit card account. Eberhart also failed to report the money she embezzled on her federal income tax returns.
As part of her sentence, Eberhart was ordered to pay full restitution in the amount of $368,308.99 and to serve three years of supervised release, during which time she will not be permitted to engage in any occupation that involves fiduciary responsibility without obtaining prior approval from the court.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Electronic Health Records Vendor to Pay $57.25 Million to Settle False Claims Act AllegationsRead the Press Release
Greenway Health LLC (Greenway), a Tampa, Florida-based developer of electronic health records (EHR) software, will pay $57.25 million to resolve allegations in a complaint filed by the United States under the False Claims Act alleging that Greenway caused its users to submit false claims to the government by misrepresenting the capabilities of its EHR product “Prime Suite” and providing unlawful remuneration to users to induce them to recommend Prime Suite, the Justice Department announced today.
“Electronic health records are critically important to the health care decision process, and both patients and providers rely on these technologies to safely and accurately record and transmit vital health information,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This resolution demonstrates our continued commitment to pursue EHR vendors who misrepresent the capabilities of their products, and our determination to promote public health while holding accountable those who seek to abuse the government’s trust.”
The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments available to eligible healthcare providers that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obt ain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.
In its complaint, the government contends that Greenway falsely obtained 2014 Edition certification for its product Prime Suite when it concealed from its certifying entity that Prime Suite did not fully comply with the requirements for certification. Among other things, Greenway’s product did not incorporate the standardized clinical terminology necessary to ensure the reciprocal flow of information concerning patients and the accuracy of electronic prescriptions. Greenway accomplished its deception by modifying its test-run software to deceive the company hired to certify Prime Suite into believing that it could use the requisite clinical vocabulary.
Additionally, in order to be eligible to receive incentive payments, healthcare providers were required to meet certain targets for EHR-related activities. For example, at certain times providers were required to provide patients with clinical summaries following office visits. In its complaint, the government further alleges that Greenway was aware that an earlier version of Prime Suite, which was certified to 2011 Edition criteria, did not correctly calculate the percentage of office visits for which its users distributed clinical summaries and thereby caused certain Prime Suite users to falsely attest that they were eligible for EHR incentive payments. Greenway refrained from rectifying this error in order to ensure that its users would receive incentive payments. As a result, numerous users of this earlier version of Prime Suite falsely attested that they were eligible for EHR incentive payments when, in fact, they had not met all necessary use requirements
Finally, the government also alleged that Greenway violated the Anti-Kickback Statute by paying money and incentives to its client providers to recommend Prime Suite to prospective new customers.
“In the last two years my office has resolved two matters against leading EHR developers where we alleged significant fraudulent conduct. These are the two largest recoveries in the history of this District and represent the return of over two-hundred and twelve million dollars of fraudulently-obtained taxpayer monies. These cases are important, not only to prevent theft of taxpayer dollars, but to ensure that the promise of health technology is realized in the form of improved patient safety and efficient healthcare information flow,” said United States Attorney Christina E. Nolan for the District of Vermont. “This resolution demonstrates my office’s initiative and resolve to vigorously uncover and to doggedly pursue these complex cases. We will be unflagging in our efforts to preserve the accuracy and reliability of Americans’ health records and guard the public fisc against corporate greed. EHR companies should consider themselves on notice.”
“Medical professionals and patients depend on the security and competency of electronic health records as a means to improving both the quality and coordination of health care services," said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. "Vendors who falsify the viability of their products erode the integrity of public health systems and will be held accountable for their misrepresentations.”
“The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly circumvent our federal healthcare programs for their own benefit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate companies stealing from federal taxpayers and the people who trust in the fairness of our federally funded healthcare programs.”
As part of the settlement, Greenway entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. This innovative five-year CIA requires, among other things, that Greenway retain an Independent Review Organization to assess Greenway’s software quality control and compliance systems and to review Greenway’s arrangements with health care providers to ensure compliance with the Anti-Kickback Statute. Greenway must provide prompt notice to its customers of any patient safety related issues and maintain on its customer portal a comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks. The CIA also requires Greenway to allow Prime Suite customers to obtain the latest versions of Prime Suite at no additional charge, the opportunity to migrate their data from Prime Suite to another Greenway-developed software product also at no additional charge, and to give Prime Suite customers the option to have Greenway transfer their data to another EHR software vendor without penalties, service charges, or any other fees other than contractual amounts still owed in connection with goods or services already provided.
“Electronic Health Records can be key to an integrated health system providing improved care” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Putting patients at risk will result in intensive investigation and compliance obligations such as those in OIG’s comprehensive five-year Corporate Integrity Agreement.”
This matter was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the District of Vermont and Northern District of Georgia, the HHS Office of Inspector General, and multiple HHS agencies and components. The Federal Bureau of Investigation’s field office in Atlanta, Georgia provided significant investigative support to the investigation.
The case is captioned United States v. Greenway Health, LCC, 2:19-CV-20 (D. Vt.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Electronic Health Records Developer to Pay Second Largest Recovery in the History of the District of Vermont -- $57.25 Million -- To Settle False Claims Act AllegationsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Greenway Health, LLC (Greenway), a Tampa, Florida-based developer of electronic health records (EHR) software, will pay $57.25 million to resolve False Claims Act allegations that Greenway caused its users to submit false claims to the government by misrepresenting the capabilities of its EHR product “Prime Suite” and providing unlawful remuneration to users to induce them to recommend Prime Suite.
“In the last two years my office has resolved two matters against leading EHR developers where we alleged significant fraudulent conduct. These are the two largest recoveries in the history of this District and represent the return of over two-hundred and twelve million dollars of fraudulently obtained taxpayer monies. These cases are important, not only to prevent theft of taxpayer dollars, but to ensure that the promise of health technology is realized in the form of improved patient safety and efficient healthcare information flow,” said Christina E. Nolan, United States Attorney for the District of Vermont. “This resolution demonstrates my office’s initiative and resolve to vigorously uncover and to doggedly pursue these complex cases. We will be unflagging in our efforts to preserve the accuracy and reliability of Americans’ health records and guard the public fisc against corporate greed. EHR companies should consider themselves on notice.”
“Electronic health records are the central hub from which many health care decisions flow,” said Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division, “and both patients and providers rely on these technologies to safely and accurately record and transmit vital health information.” “This resolution demonstrates our continued commitment to uncovering misconduct in the EHR space, and our determination to promote public health while holding accountable those who seek to abuse the government’s trust.”
The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments available to eligible healthcare providers that adopt certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.
In its complaint, the government contends that Greenway falsely obtained certification for its product Prime Suite when it concealed from its certifying entity that Prime Suite did not fully comply with the requirements for certification. Among other things, Greenway’s product did not fully incorporate the standardized clinical terminology necessary to ensure the reciprocal flow of information concerning patients and the accuracy of electronic prescriptions. Greenway accomplished its deception by preparing its test-run software to deceive the company hired to certify Prime Suite into believing that it could use the requisite clinical vocabulary.
Additionally, in order to be eligible to receive incentive payments, healthcare providers were required to meet certain targets for EHR-related activities. For example, at certain times providers were required to provide patients with clinical summaries following office visits. In its complaint, the government further alleges that Greenway was aware that an early version of Prime Suite did not correctly calculate the percentage of office visits for which its users distributed clinical summaries and thereby caused certain Prime Suite users to attest falsely that they were eligible for EHR incentive payments. Greenway refrained from rectifying this error in order to ensure that its users would continue to receive incentive payments. As a result, numerous users of this earlier version of Prime Suite falsely attested that they were eligible for EHR incentive payments when, in fact, they had not met all necessary use requirements.
Finally, the government alleged that Greenway violated the Anti-Kickback Statute by paying money and incentives to its client providers to recommend Prime Suite to prospective new customers.
“The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly circumvent our federal healthcare programs for their own benefit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate companies stealing from federal taxpayers and the people who trust in the fairness of our federally funded healthcare programs.”
As part of the settlement, Greenway entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. This innovative five-year CIA requires, among other things, that Greenway retain an Independent Review Organization to assess Greenway’s software quality control and compliance systems and to review Greenway’s arrangements with health care providers to ensure compliance with the Anti-Kickback Statute. Greenway must provide prompt notice to its customers of any patient safety related issues and maintain on its customer portal a comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks. The CIA also requires Greenway to allow Prime Suite customers to obtain the latest versions of Prime Suite at no additional charge, the opportunity to migrate their data from Prime Suite to another Greenway-developed software product also at no additional charge, and to give Prime Suite customers the option to have Greenway transfer their data to another EHR software vendor without penalties, service charges, or any other fees other than contractual amounts still owed in connection with goods or services already provided.
“Electronic Health Records can be key to an integrated health system providing improved care” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Putting patients at risk will result in intensive investigation and compliance obligations such as those in OIG’s comprehensive five-year Corporate Integrity Agreement.”
This matter was jointly handled by Assistant United States Attorneys Owen C.J. Foster and Nikolas P. Kerest, of the U.S. Attorney’s Office for the District of Vermont, Kelley Hauser and Edward Crooke of the Commercial Litigation Branch of the Civil Division, the Northern District of Georgia, the HHS Office of Inspector General, and multiple HHS agencies and components. Special Agents Gregory Peacock and Patrick Finno from the Federal Bureau of Investigation’s field office in Atlanta, Georgia provided significant investigative support to the investigation. Health Care Fraud Investigators George Thabault and Richard Lewis provided important investigative resources.
The case is captioned United States v. Greenway Health, LCC, 2:19-cv-20 (D. Vt.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
District Man Sentenced to 15 Years in Prison for Striking His Brother-In-Law in the Head with a Lug WrenchRead the Press Release
WASHINGTON – Keith Johnson, 49, of Washington, D.C., was sentenced today to 15 years in prison for an attack in which he hit his brother-in-law in the head with a lug wrench, announced U.S. Attorney Jessie K. Liu.
Johnson was found guilty by a jury in August 2018 of charges of assault with a dangerous weapon and assault with significant bodily injury while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable José M. López. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of Jan. 10, 2018, Johnson’s wife was visiting her sister and brother-in-law, in the 4300 block of Wheeler Road SE. Johnson went to the residence to take his wife home. When his wife refused to leave with him, Johnson became irate. The brother-in-law, 56, intervened and asked Johnson to leave.
A fight ensued, which culminated in Johnson pulling his brother-in-law by his ankles down two flights of stairs. With his brother-in-law in and out of consciousness at the bottom of the stairs, Johnson went to his car, retrieved a steel lug wrench, and returned to strike him over the head with the lug wrench. He hit him with such force that the lug wrench broke into two pieces. Johnson fled and was arrested during a traffic stop a few minutes later. His brother-in-law suffered a 4 ½-inch gash across the top of his head, which required surgical staples to close.
While he was on release and this case was pending, Johnson was arrested and charged with threats in a separate matter. He allegedly used the charging document in this case to threaten a couple. Johnson has remained detained since his arrest in the threats matter.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Louis Manzo and Kristina Wolf; Appellate Division Deputy Chief Nicholas Coleman; Victim/Witness Advocate Elsa Maltese; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Litigation Technology Supervisor Jeanie Latimore-Brown; Paralegal Specialists Tiffany Jones and Brenda Williams; Criminal Investigator Tommy Miller, and Interns Megan Hughes, Alexa Perlmutter, and Jill Rogowski.
Finally, she commended the work of Assistant U.S. Attorneys Jennifer B. Loeb and Amy Joy Thomas, who prosecuted the case at trial.
DOJ, ICE Recognize International Day of Zero Tolerance for Female Genital Mutilation/CuttingRead the Press Release
February 6 marks the International Day of Zero Tolerance for Female Genital Mutilation. The FBI, the Human Rights and Special Prosecutions Section (HRSP) of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE), all members of the Human Rights Violators and War Crimes Center (HRVWCC), join U.S. and foreign government partners, non-governmental organizations and local communities to call for the eradication of the practice.
Female genital mutilation/cutting (FGM/C) is a federal crime, and any involvement in committing this crime is a serious human rights violation, which may result in imprisonment and potential removal from the United States. Individuals suspected of FGM/C, including sending girls overseas to be cut, may be investigated by the HRVWCC and prosecuted accordingly.
The elimination of FGM/C has broad implications for the health and human rights of women and girls, as well as societies at large. This day serves as an opportunity to reflect on victims who have suffered from female genital mutilation/cutting, including many women and girls who have died or suffered lifelong health complications from the practice. The day also renews a global commitment to the health and well-being of all women, girls and communities by eliminating the practice.
In 2018, ICE expanded Operation Limelight USA, an outreach operation designed to educate travelers on the dangers and consequences of FGM/C, from one international airport to seven. U.S. officials with Operation Limelight USA spoke to 1300 travelers on 80 different flights from May 22 to July 2 at seven airports across the United States, while UK partners spoke to travelers at Heathrow Airport and train stations throughout the UK. In Aug. 2018, U.S. officials, including representatives from the FBI and ICE, were again joined by their partners in the United Kingdom to sign a proclamation signaling the nations’ commitment to preventing the practice.
“The FBI is committed to investigating human rights violations, including female genital mutilation/cutting (FGM),” said Unit Chief Maureen Schutz of the FBI’s Criminal Division. “We continue to work with our partners at U.S. Immigration and Customs Enforcement to protect the rights of young women and children and to bring justice to those who have violated them.”
“Female genital mutilation is a global issue and we rely on our domestic and international partners as we work to eliminate this practice. We continue to partner with the FBI, non-governmental organizations, and other government agencies to identify potential victims and find those who conduct female genital mutilation,” explained Unit Chief Mark Shaffer of ICE’s Homeland Security Investigations Human Rights Violators and War Crimes Center.
FGM/C prevalence is primarily concentrated in 30 countries in Africa, the Middle East, and Asia, but also occurs in parts of Western Europe, North America, Australia and New Zealand. It is global in scope and found in multiple geographies, religions, and socioeconomic classes.
Anyone who has information about an individual who is suspected of assisting in this crime is urged to call the toll-free ICE tip line at (866) 347-2423 or complete the ICE online tip form or the FBI online tip form. All are staffed around the clock, and tips may be provided anonymously.
- ICE Human Rights Violators and War Crimes Unit
- FBI International Human Rights Unit
For more information about the practice of female genital mutilation/cutting, view this Fact Sheet on FGM/C from the U.S. Department of State or visit the United Nations’ Zero Tolerance Day website.
Customs and Border Protection Officer Arrested on Federal Charges Alleging He Operated Unlicensed Business that Sold GunsRead the Press Release
LOS ANGELES – A U.S. Customs and Border Protection supervisory officer has been arrested on federal charges alleging that he engaged in the business of unlawfully selling firearms without a license and sold an illegal short-barreled rifle to an undercover investigator.
Wei Xu, 56, of Santa Fe Springs, an officer at the Los Angeles and Long Beach Seaport, was taken into custody Tuesday afternoon and is making his initial appearance this afternoon in federal court in downtown Los Angeles.
A criminal complaint unsealed this afternoon alleges that Xu sold or otherwise transferred at least 70 firearms through a federal firearms license (FFL) dealer since 2014. As detailed in the complaint affidavit, Xu allegedly exploited his status as a law enforcement officer to purchase and then transfer at least 14 “off-roster” handguns that cannot be sold to the general public by an FFL. Xu also sold or transferred firearms within days or weeks from the date he purchased them. Xu allegedly operated his business by posting advertisements on internet marketplaces.
According to the complaint affidavit, as part of the investigation, an undercover law enforcement officer posing as a buyer purchased a total of four firearms from Xu, three of which Xu unlawfully sold out of the trunk of his car. The firearms included an “off-roster” pistol, high-capacity magazines, and a short-barreled rifle.
Xu was arrested on Tuesday by special agents from the Federal Bureau of Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and IRS Criminal Investigation.
Pursuant to a federal search warrant executed at Xu’s residence on Tuesday and unsealed today, federal authorities seized more than 300 firearms, including numerous assault rifles, two additional short-barreled rifles, and what appear to be machine guns.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the charge of dealing firearms without a license, Xu would face a statutory maximum sentence of five years in federal prison. The charge of possessing an unlicensed firearm carries a maximum sentence of 10 years in prison.
This case is being prosecuted by Assistant United States Attorneys Annamartine Salick of the Terrorism and Export Crimes Section and Valerie Makarewicz of the Major Frauds Section.
Cuban Citizen Arrested on Charge of Making False Statements on an Application for Lawful Permanent ResidenceRead the Press Release
A Cuban citizen residing in Miami, Florida, was arrested on Feb. 5, by federal agents after being indicted on one count of making false statements in an immigration document.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Saul Santos Ferro, 73, was charged in an indictment alleging that Santos made a number of lies and misrepresentations in his application to register as a permanent resident which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status. Specifically, the indictment asserts that, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit, and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a high-ranking officer in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades. Additionally, Santos falsely stated that he never by fraud or willful misrepresentation of a material fact, ever sought to procure, or procured, a visa, other documentation, entry into the United States, or any other immigration benefit.
“Saul Santos Ferro allegedly lied to immigration authorities about his membership in the Cuban government’s internal security force to obtain lawful permanent residence status,” said Assistant Attorney General Benczkowski. “The Justice Department will continue to aggressively prosecute those who seek to exploit our immigration system through fraud and deceit.”
“Individuals who make false statements in immigration documents expose themselves to the serious threat of federal prosecution,” said U.S. Attorney Fajardo Orshan. “Law enforcement in South Florida will continue to work together to prosecute those individuals who knowingly deceive the authorities about their criminal past or foreign ties, in order to fraudulently obtain immigration benefits.”
“The United States has a lawful system of immigration that is necessary for our country to be a prosperous and orderly nation,” said Special Agent in Charge Piro. “When the system is circumvented, the FBI and our law enforcement partners have a duty to investigate in order to protect our citizens from lawbreakers who may be hiding amongst us.”
“The arrest of Saul Santos Ferro should send a clear message that we will not tolerate individuals who purposely deceive the government and violate our immigration laws,” said HSI Special Agent in Charge Salisbury. “HSI is committed to working with our federal law enforcement partners to ensure that these crimes are properly investigated and prosecuted to the fullest extent of the law.”
Santos Ferro had his initial court appearance today before U.S. Magistrate Judge Edwin G. Torres for the Southern District of Florida, who ordered him released to home confinement with GPS monitoring and a $100,000 bond.
The charges contained in the indictment are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and HSI. The case is being jointly prosecuted by Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida.
Convicted Sex Offender Pleads Guilty to Using Snapchat to Produce Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of BARTON GEORGE SCOTT, 35, a registered sex offender, for producing child pornography. SCOTT, who was indicted on September 12, 2018, entered his guilty plea earlier today before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, between April 30 and August 8, 2017, SCOTT gained unauthorized access to the Snapchat accounts of dozens of victims, including minors between 14-16 years of age. In several cases, SCOTT used threats and extortionate tactics in an attempt to obtain sexually explicit images and videos from the victims.
Based on the evidence obtained in this case, authorities believe there may be additional victims of this alleged conduct. Anyone with information about this matter is encouraged to call the FBI at (763) 569-8000. Callers may remain anonymous.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, the New Richmond Police Department, the Anne Arundel County Police Department, the Carver County Sheriff’s Office, the St. Croix County Sheriff’s Office, the Stillwater Police Department, the Spring Green Police Department, and the Washington County Sheriff’s Office.
Assistant U.S. Attorney Katharine T. Buzicky is prosecuting the case.
Defendant Information:
BARTON GEORGE SCOTT, 35
City of residence unknown
Convicted:
- Production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Columbus man sentenced to 9 years for connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Matthew Jackson, of Columbus, Ohio, was sentenced today to 108 months incarceration for his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Jackson, also known as “Matt-Matt,” age 23, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances” in August 2018. Jackson admitted to working with others to distribute heroin, cocaine, and methamphetamine from 2016 to April 2018 in Wetzel County and elsewhere.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
Columbia Heights Restaurant Owner Sentenced to 42 Months in Prison for Visa Fraud and Harboring an Illegal WorkerRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of PISANU SUKHTIPYAROGE, a/k/a “Pat,” 72, owner of the Royal Orchid Restaurant, to 42 months in prison for visa fraud and alien harboring. The sentence was handed down by U.S. District Judge Wilhelmina M. Wright in St. Paul, Minnesota.
“This defendant not only violated our immigration laws, he exploited a young, vulnerable victim for his own financial and sexual benefit,” said Assistant United States Attorney Laura M. Provinzino. “While nothing can make the victim truly whole, the prison sentence - which was above the guideline range for his crimes - and restitution ordered by the Court represent a just outcome. Our hope is that this brave, resilient victim can finally move forward.”
“This individual used his knowledge of our laws to fraudulently bring the victim to our country on smoke and mirror promises of the American Dream,” said Special Agent in Charge Tracy J. Cormier, of HSI St. Paul. “Instead he used the victim for sex and forced them to work at his business without pay. HSI is proud of the work accomplished in bringing Sukhtipyaroge to justice.”
According to the defendant’s guilty plea and documents filed in court, in July 2015, SUKHTIPYAROGE assisted in the procurement of an F-1 student visa for an individual identified as A.M., a citizen of the Dominican Republic whom the defendant met and befriended. At the time, SUKHTIPYAROGE was very familiar with the F-1 student visa process and knew that an F-1 student visa is a temporary, non-immigrant visa that does not permit employment in the United States. SUKHTIPYAROGE used false statements in preparing the visa application and instructed A.M. as to what he should and should not say during the visa interview.
According to the defendant’s guilty plea and documents filed in court, October 19, 2015, upon arrival in the United States, A.M. lived with the defendant and the defendant’s family in Maplewood and attended Edison High School until May 2016. At some point during this time, A.M. began living and working at the Royal Orchid Restaurant in Columbia Heights. At the restaurant, A.M. was subjected to poor living and working conditions. SUKHTIPYAROGE told A.M. he would be paid $500 per month in cash for his labor; however, A.M. did not receive the promised pay each month, as SUKHTIPYAROGE deducted the costs incurred in bringing A.M. to the United States in a debt bondage scheme. A.M. also worked at SUKHTIPYAROGE’S home in Maplewood without pay. SUKHTIPYAROGE admitted to engaging in a sexual relationship with A.M. shortly after he brought A.M. to the United States.
SUKHTIPYAROGE has also been charged in Anoka County with one felony count of third degree criminal sexual conduct and one felony count of labor trafficking.
This case was the result of an investigation conducted by Homeland Security Investigations, the Anoka County Sheriff’s Office, U.S. Department of State Diplomatic Security Service, and U.S. Department of Labor Wage and Hour Division.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino prosecuted the case.
Defendant Information:
PISANU SUKHTIPYAROGE, a/k/a “Pat,” 72
Maplewood, Minn.
Convicted:
- Visa fraud, 1 count
- Alien harboring, 1 count
Sentenced:
- 42 months in prison
- 3 years of supervised release
- Restitution ordered – amount to be determined at a later date
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Cleveland man sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA –Dennis D. Chapman, of Cleveland, Ohio, was sentenced today to 30 months incarceration for distributing cocaine near an Ohio County playground, United States Attorney Bill Powell announced.
Chapman, also known as “Kobe,” age 26, pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location” in October 2018. He admitted to selling cocaine near Pulaski Playground in Ohio County, West Virginia, in January 2018.
Assistant U.S. Attorney Steven L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.Civil Lawsuit Filed to Seek Judicial Declaration that Drug Injection Site Is Illegal Under Federal LawRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that his Office has filed a civil lawsuit to prevent the establishment of a facility in Philadelphia where drug users would go to inject themselves with illegal narcotics. The suit, filed against the nonprofit corporation Safehouse and its Executive Director, Jeanette Bowles, seeks a judicial decree that Safehouse’s planned opening of one or more so-called “consumption rooms” would violate federal law. This lawsuit is the first of its kind filed in the United States.
In response to the city’s opioid crisis, Safehouse announced last fall its intention to open a location for drug users to inject street-purchased heroin and fentanyl under medical supervision of Safehouse employees. With tacit backing from city officials, including Philadelphia District Attorney Larry Krasner who promised not to prosecute those who established or used an injection site, Safehouse plans to open the nation’s first consumption room in Philadelphia imminently.
While U.S. Attorney McSwain emphasized that community organizations play an important role in combatting the opioid scourge, he cautioned that any response must be legal. “I recognize that we are all on the same side in this fight,” he said. “The proponents of the injection site share our goal of ending this terrible epidemic. We all want solutions that save lives, but allowing private citizens to break long-established federal drug laws passed by Congress is not an acceptable path forward.”
Safehouse’s proposed consumption room would violate the federal Controlled Substances Act, a comprehensive regulatory scheme enacted in 1970. The Act makes it a felony to maintain any place for the purpose of facilitating illicit drug use. According to the government, that is exactly what Safehouse plans to do.
“So-called ‘supervised injection sites’ would break the law, plain and simple,” said U.S. Attorney McSwain. “The law is clear – and it is my job to respect and enforce the rule of law. If Safehouse wants to operate an injection site, it should work through the democratic process to try to change the law. But normalizing the use of deadly drugs like heroin and fentanyl and ignoring the law is not the answer to solving the opioid epidemic.”
“The Department of Justice’s Civil Division is committed to using every tool at its disposal to combat the opioid crisis, and that includes stopping the establishment of centers where individuals can go to illegally use and abuse dangerous drugs,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Operating spaces for the purpose of allowing the use of illegal drugs like heroin and fentanyl violates federal law and creates serious public safety risks. The Civil Division will not hesitate to bring actions like this against any state, city, municipality, or private entity that attempts to open a so-called ‘safe-injection site.’”
In partnership with federal, state, and local law enforcement, the United States Attorney’s Office prioritizes cutting off the supply of illegal opioids, prosecuting drug dealers and traffickers, and enforcing civil rights laws to ensure that people suffering from addiction have access to treatment. Local government and community organizations play a critical role in providing effective treatment options, making overdose prevention medication more readily available, and leading prevention efforts.
According to U.S. Attorney McSwain, a partnership between federal, state, and local government, along with community leaders, is needed to implement a coordinated and effective response to the opioid crisis. “I invite a dialogue with our community partners, including Safehouse, to discuss ways we can work together within the law to bring an end to this epidemic,” he said.
Child Sex Offender Charged with Illegally Re-Entering the United StatesRead the Press Release
HOUSTON – A 50-year-old Honduran citizen has been charged in federal court for illegally re-entering the country after having been convicted and deported for multiple sex offenses in California, announced U.S. Attorney Ryan K. Patrick.
Marvin Mejia Ramos aka Ricardo Morales Rodriguez and Martin Jose Romes-Ramirez was charged with illegally re-entering the United States following an aggravated felony conviction and subsequent deportation. According to court records, in 2007, he was convicted in California for continuous sexual abuse and lewd act upon a child. He was sentenced to six years imprisonment for those offenses and was deported in 2013, according to the complaint.
As such, he is not permitted to return to the United States.
However, on Jan. 30, 2019, authorities with the Precinct 4 Montgomery County Constables Office discovered him during a traffic stop in New Caney. He was subsequently charged with illegal re-entry after deportation.
At a hearing in federal court today, Assistant U.S. Attorney (AUSA) Adam Laurence Goldman argued Mejia Ramos is both a flight risk and danger to the community. U.S. Magistrate Judge Dena Hanovice Palermo then ordered Mejia Ramos into custody pending further criminal proceedings.
If convicted, Mejia Ramos faces up to 20 years in federal prison.
Immigration and Customs Enforcement – Enforcement Removal Operations conducted the investigation. AUSA Goldman is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Career Criminal Charged with Illegally Possessing FirearmRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for being a felon in possession of a firearm.
On Nov. 26, 2018, Reginald Boyd, 29, was allegedly found in possession of a .22 caliber North American Arms revolver with five rounds of ammunition. Boyd is prohibited from possessing a firearm due to three previous drug convictions, all punishable by more than a year in prison.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Norfolk County District Attorney’s Office and the Massachusetts State Police. Assistant U.S. Attorney Evan Gotlob of Lelling’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Man Sentenced for Distributing Fentanyl Which Resulted in DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Carlique DeBerry, 40, of Buffalo, NY, who was convicted of distribution of fentanyl causing death, was sentenced to serve 20 years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Brendan T. Cullinane and Wei Xiang, who handled the case, stated that on February 25, 2016, the defendant traveled to Hamburg, NY, shortly after 9:00 p.m. to the home of a repeat drug customer identified as R.G. DeBerry sold a quantity of “heroin” to R.G. then left. Shortly after midnight, R.G.'s mother found R.G. slumped over deceased in a chair.
Law enforcement officers who responded to the residence seized R.G.'s cell phone. The next morning, the defendant sent a text message to R.G. stating, "Call me wen u get this bro." A police officer pretending to be R.G. responded, leading to the following exchange with the defendant:
“R.G.”: Yo my mins are about used. What's up? That was some good (expletive) last night
Defendant: K Just checkn on u thts all
“R.G.”: That was some heavy stuff wtf was up w thay
Defendant: Its pure thats whats up wit it broDeberry then arranged to sell another bundle of the “heroin” for $100.
An autopsy determined that R.G.’s cause of death was acute fentanyl intoxication.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Hamburg Police Department, under the direction of Chief Gregory Wickett.
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$3.6 Million Settlement Resolves Procurement Fraud Investigation Against Colorado and Maryland Construction Companies Involved with SBA’s Minority Disadvantaged Business Development ProgramRead the Press Release
DENVER – VMJ Construction, LLC (“VMJ”) and its owner, Colorado resident Michael T. Vigil, as well as Maryland-based Vigil Contracting, Inc. (“Vigil Contracting”) and its Operations Manager, John J. Vigil, have agreed to pay the United States $3.6 million to resolve allegations that they defrauded the Small Business Administration (“SBA”) 8(a) Business Development Program.
The SBA’s 8(a) Business Development Program (the “8(a) Program”) for economically and socially disadvantaged small businesses serves dual roles. First, the program helps socially and economically disadvantaged small business owners gain access to valuable federal contracts, thereby promoting economic and social mobility. Second, the program saves taxpayers money by spurring a competitive marketplace. By promoting the development of small businesses, the 8(a) Program helps prevent the formation of monopolies that would stifle innovation and restrict consumers’ ability to negotiate lower prices. It is important that the 8(a) Program is reserved only for companies that actually meet the program’s criteria because misuse of the program deprives legitimate 8(a) Program participants of valuable economic opportunities and undermines the integrity of the program.
There are several rules that businesses in the 8(a) Program must abide by. The socially and economically disadvantaged owner of the business must manage the day-to-day operations of the company and have responsibility for the long-term decision-making for the company. 8(a) Program applicants must also truthfully disclose any affiliation with other businesses so that SBA may accurately assess whether the applicant meets the definition of a small business, and whether the applicant shows potential for success and the ability to perform the requisite percentage of the contracts secured through the Program. Businesses also cannot remain in the 8(a) Program indefinitely; after nine years, they graduate from the program and are no longer eligible to bid on 8(a) contracts.
VMJ was accepted into the 8(a) Program in 2011. Michael T. Vigil, who is Hispanic, was the 91% owner of VMJ, and was the socially and economically disadvantaged individual upon which VMJ based its application to the 8(a) program. John J. Vigil was a 9% owner of VMJ. John J. Vigil was also the Operations Manager of Vigil Contracting. Vigil Contracting is a 2011 graduate of the 8(a) Program. Since 2011, Vigil Contracting has not been eligible to bid for contracts reserved for 8(a) Program participants.
The United States contends that VMJ made false statements to the SBA regarding its eligibility to participate in the 8(a) Program. Specifically, VMJ relied almost exclusively upon Vigil Contracting to bid on and complete the work awarded to VMJ under the 8(a) Program. VMJ used Vigil Contracting’s bonding, office space, employees, contractors, software, computers, and vehicles. Vigil Contracting employees and contractors, including John J. Vigil, made the high-level business decisions of VMJ and managed the day-to-day operations of VMJ. Michael T. Vigil did not control VMJ, did not set the long-term policy, nor manage the day-to-day management of the business. VMJ knowingly misrepresented these facts to SBA, in both VMJ’s initial application to participate in the 8(a) Program and in an annual update to SBA. As a result of the deception, the United States Army, the United States Navy, and the United States Department of Agriculture awarded VMJ several federal government contracts set aside for 8(a) Program participants.
“The United States uses these set-aside contracts for a clear reason: to help small businesses owned by economically and socially disadvantaged individuals. This program continues the promise of the American Dream by helping new small businesses get on their feet, and with more businesses on their feet, our markets are healthier and more competitive.” said United States Attorney, Jason Dunn. “When companies lie about their eligibility to get these contracts, they prevent other deserving small businesses from getting the assistance that Congress intended.”
“The false statements in this case were intended to deceive the government into believing that VMJ Construction was operated by a disadvantaged small business owner whom was eligible to participate in SBA’s 8(a) Program,” said SBA Office of Inspector General Western Region Acting Special Agent-in-Charge Weston King. “The defendants in this scheme sought personal gain at the expense of disadvantaged small businesses. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication to enforcing compliance in SBA’s contracting programs.” SBA’s General Counsel Christopher Pilkerton adds, “The outcome in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and other Federal law enforcement agencies, to detect procurement fraud and prosecute those individuals and companies that engage in such activities.”
“The Defense Criminal Investigative Service will investigate all allegations of abuse related to Government set aside programs designed to encourage and support veteran, woman and minority owned small businesses. DCIS will pursue all appropriate criminal, civil and administrative actions against individuals who abuse these programs for illicit financial gain,” stated Michael Mentavlos, Special Agent in Charge, Southwest Field Office.
The United States Attorney’s Office thanks the SBA Office of Inspector General, U.S. Army Criminal Investigation Command, and the Department of Defense Office of Inspector General for their diligent work on this investigation. The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
Tuesday 5 February 2019
York Man Pleads Guilty to Health Care FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nagy Mohamed Abdelhamed, age 68, of York, Pennsylvania, pleaded guilty before U.S. District Court Judge John E. Jones to health care fraud for his fraudulent receipt of Medicaid and SNAP (Supplemental Nutritional Assistance Program, formerly known as Food Stamp) benefits.
According to United States Attorney David J. Freed, Abdelhamed admitted he applied for Medicaid and SNAP benefits with the York County Assistance Office in August 2014 even though he owned a four bedroom residence in York, a gas station in York, a 2008 Mercedes Benz E350 automobile, received $1,124 a month in Social Security disability benefits, and held approximately $58,500 in eight different bank accounts.
On August 22, 2014, Abdelhamed sold his gas station for $172,883 and deposited $87,016 of the sales proceeds into a bank account. Abdelhamed did not notify the York County Assistance Office of the sale or his receipt of the sales proceeds. Abdelhamed continued to receive Medicaid and SNAP benefits into 2018 and as a result, fraudulently obtained approximately $29,337 in benefits, including approximately $20,000 in Medicaid benefits.
Abdelhamad agreed the loss in the case was $29,337, and to make full restitution as ordered by the Court.
No date has yet been scheduled for sentencing pending preparation of a presentence report.
The matter was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and the Health and Human Services Office of Inspector General. Assistant U. S. Attorney Kim Douglas Daniel is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. 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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Wilmington Man Receives More than 6 Years for Gun and Drug ConvictionsRead the Press Release
NEW BERN — Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced that today, United States District Judge Louise Flanagan sentenced RONNELL MELVIN, 32, of New Hanover County to 83 months’ imprisonment, followed by 3 years of supervised release. On October 18, 2018, MELVIN pled guilty to possession of a firearm by a convicted felon and possession with intent to distribute a quantity of heroin and cocaine base (crack).
On December 29, 2017, Wilmington Police Officers responded to a shots fired call in the 600 block of Campbell Street, Wilmington North Carolina. When they arrived, officers observed MELVIN possessing a handgun. MELVIN was ordered to drop the gun and he complied with the officer’s directive. MELVIN was searched and found to have 2 cell phones, a quantity of crack cocaine and heroin and $229 on his person. MELVIN had a prior felony conviction for attempting to traffic in heroin by transportation.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation Safe Streets Task Force and the Wilmington Police Department. Assistant United States Attorney Timothy Severo prosecuted the case.
Williamson County Man Charged with Drug and Gun OffensesRead the Press Release
Jonathan P. W. Garrison of Marion, Illinois, has been charged by indictment with unlawful delivery of methamphetamine, possession with intent to distribute methamphetamine, and unlawful possession of a firearm by a convicted felon (2 counts), United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The four-count federal indictment alleges that the offenses occurred between November 13, 2018, and December 19, 2018, in Williamson and Franklin Counties. Garrison, 28, made his initial appearance in federal court earlier this week and pleaded not guilty to the charges. He was ordered held without bond pending an April 8, 2019 jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offenses carry a maximum penalty of 20 years imprisonment, three years of supervised release, and a fine of $1 million. The firearm offenses carry a maximum penalty of 10 years imprisonment, three years of supervised release, and a fine of up to $250,000.
The ongoing investigation is being conducted by the Marion Police Department, Southern Illinois Drug Task Force, West Frankfort Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Williamson County State’s Attorney’s Office also assisted in the investigation.
Woman from Albuquerque Charged with Setting Fire to FBI PropertyRead the Press Release
ALBUQUERQUE –Josephine Gervais, 39, of Albuquerque, N.M., appeared in federal court today on a charge of malicious damage by fire to federal property.
According to court documents, Gervais committed the offense on January 31, 2019, by setting fire to a sign and vegetation outside the FBI office in Albuquerque. Albuquerque Fire and Rescue responded to the scene and put out the fire. Gervais fled the scene. Agents arrested her at her home later the same day.
Gervais faces from 5 to 20 years in prison if convicted. Allegations in indictments are only accusations. A criminal defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
The Albuquerque office of the FBI investigated the case with assistance from Albuquerque Fire and Rescue. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case.
Woman from Albuquerque Charged with Setting Fire to FBI PropertyRead the Press Release
ALBUQUERQUE –Josephine Gervais, 39, of Albuquerque, N.M., appeared in federal court today on a charge of malicious damage by fire to federal property.
According to court documents, Gervais committed the offense on January 31, 2019, by setting fire to a sign and vegetation outside the FBI office in Albuquerque. Albuquerque Fire and Rescue responded to the scene and put out the fire. Gervais fled the scene. Agents arrested her at her home later the same day.
Gervais faces from 5 to 20 years in prison if convicted. Allegations in indictments are only accusations. A criminal defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
The Albuquerque office of the FBI investigated the case with assistance from Albuquerque Fire and Rescue. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case.
Upshur County Methamphetamine Trafficking Operation BustedRead the Press Release
TYLER, Texas – U.S. Attorney Joseph D. Brown announced today that seven individuals have been arrested and indicted as the result of a lengthy investigation into drug trafficking activities in the Eastern District of Texas.
Beginning in 2017, a combined task force of federal, state and local law enforcement began a multi-agency investigation into the trafficking of methamphetamine in and around Upshur County, Texas. During the course of the investigation, law enforcement agencies conducted numerous audio- and video-recorded controlled purchases of methamphetamine from suspects. Furthermore, law enforcement officers and agents executed search and arrest warrants, seizing additional quantities of methamphetamine and firearms.
This operation resulted in the arrests of Roger Dale Hall, 53; Denise Michelle Taylor, 35; Christopher Dewayne Bunn, 43; Shaun Dale Weeks, 43; Jessie Darwin Ezell, 37; Darrell Lynn Gage, Jr., 41; and Kenny Okeith Harris, 32, all of Gilmer, Texas.
The defendants were indicted by a federal grand jury on Dec. 13, 2018, and charged with conspiracy to possess with intent to distribute methamphetamine. In addition, Weeks, Bunn, and Harris are charged with firearms offenses including felon in possession of a firearm and use, carrying, and possession of a firearm during and in furtherance of a drug trafficking crime. Hall, Taylor, Bunn, Weeks, Ezell, and Gage each have prior federal or state felony convictions relating to the possession and distribution of controlled substances. The defendants have appeared before U.S. Magistrate Judge Roy Payne. The indictment remained sealed by the court until Feb. 4, 2019, and after the final defendant, Roger Dale Hall, was arrested.
If convicted, the defendants could each face from five to 40 years in federal prison.
“These arrests have made a big impact on the supply of methamphetamine in this part of East Texas,” said U.S. Attorney Joe Brown. “The defendants were moving large amounts of drugs, and staying in the more rural areas to avoid detection. Credit really goes to the cooperation of several local, state, and federal agencies which worked together to take these people off the street.”
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Drug Enforcement Administration, the Texas Department of Public Safety, the Upshur County Sheriff’s Office, the Gregg County Sheriff’s Office, the Upshur County District Attorney’s Office, the Gregg County Organized Drug Enforcement (CODE) Unit, and the Gilmer Police Department. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek.
An indictment or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Thomas T. Cullen Offers Condolences to the Virginia State Police as They Mourn Slain Virginia State Trooper Lucas B. DowellRead the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen joins the Virginia State Police and law enforcement throughout the Commonwealth in mourning the loss of Virginia State Police Trooper Lucas B. Dowell, a Chilhowie, Virginia native who died in the line of duty Monday, February 4, 2019.
“As this terrible incident illustrates, police officers risk their lives every time they put on a uniform,” U.S. Attorney Cullen stated today. “Trooper Dowell’s bravery and sacrifice are a sobering reminder of those dangers. The federal law-enforcement community in Western Virginia mourns the loss of this courageous young man and will honor his legacy.”
Trooper Dowell was a member of the Virginia State Police Tactical Team that was assisting the Piedmont Regional Drug Task Force with executing a search warrant at a residence in Cumberland County, Virginia just north of the town of Farmville. According to the Virginia State Police, the tactical team had made entry into the residence shortly before 10 p.m. when an adult male inside the residence began shooting at them, hitting Trooper Dowell.
Trooper Dowell was transported to Southside Community Hospital in Farmville where he later died from his injuries. Trooper Dowell becomes the Virginia State Police’s 66th line of duty death. Trooper Dowell graduated from the Virginia State Police’s 122nd Basic Session in November 2014. Since graduation, he has been assigned to the Virginia State Police Appomattox Division. Trooper Dowell is survived by his parents and a sister.
U.S. Attorney’s Office, Law Enforcement Partners, and Community Leaders Announce Expansion of “Project EJECT” into HattiesburgRead the Press Release
Hattiesburg, Miss. – Today, Mike Hurst, the United States Attorney for the Southern District of Mississippi, along with the Hattiesburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, local District Attorneys’ Offices, other federal, state and local law enforcement agencies, community leaders, and many others, announced the expansion of an initiative to combat violent crime called "Project EJECT" into the City of Hattiesburg.
Launched by the U.S. Attorney’s Office for the Southern District of Mississippi in December 2017 in the City of Jackson under the U.S. Department of Justice’s Project Safe Neighborhoods ("PSN") initiative, Project EJECT is designed as an enhanced violent crime reduction program that incorporates decades of experience in bringing various levels of law enforcement together with stakeholders in the community, with the overall goal of producing a long-term, meaningful reduction in and prevention of violent crime.
In expanding the initiative into other parts of the Southern District of Mississippi, Project EJECT will now stand for: "Empower Justice Expel Crime Together."
Joined by law enforcement, community, faith-based, non-profit, and business leaders in Hattiesburg, U.S. Attorney Hurst described the project as a multi-disciplinary, holistic approach that combines law enforcement arrests and prosecutions of violent criminals with prevention efforts, rehabilitation and reentry, educational initiatives, and improved communication.
"Today, we are excited about this new partnership with the Hattiesburg Police Department, our local District Attorneys, other law enforcement, our community, and most importantly our citizens, all coming together to combat and prevent violent crime in our Hub City. By empowering our neighbors, our churches, our schools, our businesses, and others, we will achieve justice. By expelling crime, we will make Hattiesburg safer. By working together, we will benefit all.
"The message to violent criminals in Hattiesburg is simple - if you violate our laws and terrorize our neighborhoods, you will be ejected from our community. In the federal system, we will immediately lock you up, we will move to detain you without bond, and you will serve a significant prison sentence without parole," said U.S. Attorney Hurst.
"But, there is also hope. If you break the law and are ejected, there is grace on the other side. After you serve your sentence, choose to be rehabilitated, follow the law, and re-enter society as a law-abiding citizen. The ultimate goal of Project EJECT is a safer Mississippi for everyone."
The mission of Project EJECT is to reduce violent crime and make Hattiesburg neighborhoods safer for all to enjoy. Part of the project will include discussions with the public and encouraging communities to help law enforcement in this effort, as well as communicating to the criminals that they will be prosecuted and punished for gun crimes and violent crimes. The Project will also seek to support locally-based efforts to stop violence and crimes before they occur and to help those who have been punished to reenter society as law-abiding citizens.
Project EJECT is comprised of a number of federal law enforcement agencies, as well as task force officers from various state and local investigative agencies, who will interact regularly with the Hattiesburg Police Department and District Attorneys’ Offices to identify and respond to violent crimes when they occur. Cases arising from these crimes will then be presented to the local District Attorneys’ Offices and the U.S. Attorney’s Office for prosecution.
For the first time ever, the U.S. Attorney’s Office is specifically dedicating an Assistant United States Attorney in Jackson to prosecute violent crime in the City of Hattiesburg under this project.
"When criminals actively engage in violent drug and firearms crime in our communities, ATF will use all its resources to stop them," said Special Agent in Charge Dana Nichols, ATF New Orleans Field Division. "One resource is ATF’s Crime Gun Intelligence Centers. These CGICs, in partnership with law enforcement, help identify active armed violent offenders for investigation to stop the violence. Make no mistake, ATF is committed to working with our law enforcement partners to keep our neighborhoods safe and take those individuals off our streets who would do harm to our citizens."
Today, U.S. Attorney Hurst announced the indictment and arrest of seven defendants under Project EJECT in and around Hattiesburg:
Jerry Ingram, 59, of Hattiesburg - charged with possession of a firearm by a convicted felon;
Christopher Harper, 40, of Hattiesburg - charged with possession with intent to distribute methamphetamine;
Randy Chavis, 27, of Lumberton - charged with possession with intent to distribute methamphetamine, and use of a firearm in furtherance of drug trafficking crime;
Adrian Parker, 37, of Hattiesburg - charged with conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine;
Mike Smith, 41, of Hattiesburg - charged with conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine;
Lydia Walters, 34, of Hattiesburg - charged with conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine;
Jessie Hunter, 29, of Hattiesburg - charged with sale of firearm to a convicted felon.
Project EJECT follows a directive from former U.S. Attorney General Jeff Sessions to the U.S. Department of Justice to reinvigorate DOJ’s Project Safe Neighborhoods with the intent to reduce the rising tide of violent crime in America. Project EJECT is the Southern District of Mississippi’s PSN initiative specifically tailored to address violent crime throughout the district.
In December 2018, at the 2018 Project Safe Neighborhoods (PSN) National Conference, Acting Attorney General Matthew Whitaker presented the U.S. Attorney’s Office for the Southern District of Mississippi and its law enforcement partners with the award for Outstanding Overall Partnership/Task Force for Project EJECT. Only 16 awards were given during the annual PSN National Conference, which recognize individuals and groups for their dedication and contribution to the success of PSN. Project EJECT was one of only two recognized as the best partnerships or task forces in the nation.
In expanding Project EJECT into Hattiesburg, the U.S. Attorney’s Office continues to lead the Project, with First Assistant U.S. Attorney Darren LaMarca and Criminal Chief Courtney Coker guiding the taskforce initially, Assistant U.S. Attorney Drew Eichner in Jackson serving as the primary prosecutor for violent cases under Project EJECT in Hattiesburg, long-time Assistant U.S. Attorney Annette Williams in Gulfport serving as a senior advisor and prosecutor, and Assistant U.S. Attorney Candace Mayberry in Jackson serving as the Project Safe Neighborhoods Coordinator for the entire Southern District of Mississippi.
U.S. Attorneys Issue Warnings to Opioid PrescribersRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, and Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that their offices, in coordination with federal and state law enforcement agencies, have sent notification letters to numerous medical professionals around Wisconsin cautioning them about their opioid prescribing practices. These letters are part of a broader federal and state effort to reduce the number of people becoming addicted to opioids.
This week, the U.S. Attorneys have sent letters to over 180 physicians, physician assistants, and nurse practitioners advising that a review of their prescribing practices showed that they were prescribing opioids at relatively high levels compared to other prescribers. The letters warn that these prescribing practices may be contributing to the flow of prescription opioids into illegal markets and fueling dangerous addictions. Although the letters acknowledge that the prescriptions may be medically appropriate, the letters remind the practitioners that prescribing opioids without a legitimate medical purpose could subject them to enforcement action, including criminal prosecution. The names of the practitioners will not be released.
The harm caused by opioid over-prescribing and abuse is staggering. Drug overdoses are the leading cause of death for persons under 50 in the United States. In 2014, an average of 78 people died each day of a drug overdose. By 2017, that figure had risen to 114 deaths per day, and to more than 130 deaths per day in 2018. Nearly 70% of the more than 70,200 drug overdose deaths in 2017 involved an opioid. In Wisconsin alone, 916 people died of opioid overdoses in 2017. Opioid-related deaths now exceed automobile deaths in the state.
Of current heroin users, the majority began their descent into addiction by abusing prescription opioids. Whether an opioid addict begins by receiving a prescription from a physician, by sharing pills with a friend, or by exploring the family medicine cabinet, opioid abusers eventually turn to the street drug market. In Wisconsin, opioids prevalent in street drug markets include Oxycodone and Hydrocodone diverted from clinics and pharmacies through fraudulent, reckless, and negligent over-prescribing. Addicts looking to buy prescription opioids from street drug markets increasingly receive counterfeit pills laced with fentanyl and other deadly synthetic opioids—a recent phenomenon that has fueled dramatic increases in overdose deaths.
The notification letters urge the practitioners to take stock of their prescribing practices and to acquaint themselves with enclosed guidelines for safe and legal opioid prescribing issued by the Centers for Disease Control and Wisconsin Medical Examining Board. The letters also remind practitioners that Wisconsin law requires them to use the Wisconsin Prescription Drug Monitoring Program to assess a patient’s prescription history before prescribing narcotic drugs.
Additional information may be found here:
- CDC Guideline for Prescribing Opioids for Chronic Pain: https://www.cdc.gov/drugoverdose/prescribing/guideline.html
- Wisconsin Medical Examining Board Opioid Prescribing Guideline: https://dsps.wi.gov/Documents/BoardCouncils/MED/20180321MEBGuidelinesv8. pdf
“We know that for many, addiction began with opioids prescribed by a medical professional,” said U.S. Attorney Krueger. “By sending these letters, we are asking medical professionals to join the fight against addiction and ensure they prescribe no more opioids than are necessary.”
“Opioid addiction has touched the lives of far too many families in our state,” said U.S. Attorney Blader. “Medical professionals play a pivotal role in stemming the flow of legal opioids into unlawful channels. Today, we are asking the medical community to help prevent addictions before they start.”
The notification letters were sent as part of a broader effort by state and federal law enforcement agencies to address the opioid epidemic. Efforts to combat opioid abuse are yielding results. Nationally, according to the U.S. Drug Enforcement Administration (“DEA”)’s National Prescription Audit, opioid prescriptions were down nearly 12% for the first eight months of 2018 from the same period a year earlier. In Wisconsin, the federal and state partners participating in this notification effort include the DEA, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, the U.S. Department of Defense, and the Wisconsin Department of Justice.
U.S. Attorneys Issue Warnings to Opioid PrescribersRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, and Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that their offices, in coordination with federal and state law enforcement agencies, have sent notification letters to numerous medical professionals around Wisconsin cautioning them about their opioid prescribing practices. These letters are part of a broader federal and state effort to reduce the number of people becoming addicted to opioids.This week, the U.S. Attorneys have sent letters to over 180 physicians, physician assistants, and nurse practitioners advising that a review of their prescribing practices showed that they were prescribing opioids at relatively high levels compared to other prescribers. The letters warn that these prescribing practices may be contributing to the flow of prescription opioids into illegal markets and fueling dangerous addictions. Although the letters acknowledge that the prescriptions may be medically appropriate, the letters remind the practitioners that prescribing opioids without a legitimate medical purpose could subject them to enforcement action, including criminal prosecution. The names of the practitioners will not be released.
The harm caused by opioid over-prescribing and abuse is staggering. Drug overdoses are the leading cause of death for persons under 50 in the United States. In 2014, an average of 78 people died each day of a drug overdose. By 2017, that figure had risen to 114 deaths per day, and to more than 130 deaths per day in 2018. Nearly 70% of the more than 70,200 drug overdose deaths in 2017 involved an opioid. In Wisconsin alone, 916 people died of opioid overdoses in 2017. Opioid-related deaths now exceed automobile deaths in the state.
Of current heroin users, the majority began their descent into addiction by abusing prescription opioids. Whether an opioid addict begins by receiving a prescription from a physician, by sharing pills with a friend, or by exploring the family medicine cabinet, opioid abusers eventually turn to the street drug market. In Wisconsin, opioids prevalent in street drug markets include Oxycodone and Hydrocodone diverted from clinics and pharmacies through fraudulent, reckless, and negligent over-prescribing. Addicts looking to buy prescription opioids from street drug markets increasingly receive counterfeit pills laced with fentanyl and other deadly synthetic opioids—a recent phenomenon that has fueled dramatic increases in overdose deaths.
The notification letters urge the practitioners to take stock of their prescribing practices and to acquaint themselves with enclosed guidelines for safe and legal opioid prescribing issued by the Centers for Disease Control and Wisconsin Medical Examining Board. The letters also remind practitioners that Wisconsin law requires them to use the Wisconsin Prescription Drug Monitoring Program to assess a patient’s prescription history before prescribing narcotic drugs.
Additional information may be found here:
- CDC Guideline for Prescribing Opioids for Chronic Pain: https://www.cdc.gov/drugoverdose/prescribing/guideline.html
- Wisconsin Medical Examining Board Opioid Prescribing Guideline: https://dsps.wi.gov/Documents/BoardCouncils/MED/20180321MEBGuidelinesv8.pdf
“We know that for many, addiction began with opioids prescribed by a medical professional,” said U.S. Attorney Krueger. “By sending these letters, we are asking medical professionals to join the fight against addiction and ensure they prescribe no more opioids than are necessary.”
“Opioid addiction has touched the lives of far too many families in our state,” said U.S. Attorney Blader. “Medical professionals play a pivotal role in stemming the flow of legal opioids into unlawful channels. Today, we are asking the medical community to help prevent addictions before they start.”
The notification letters were sent as part of a broader effort by state and federal law enforcement agencies to address the opioid epidemic. Efforts to combat opioid abuse are yielding results. Nationally, according to the U.S. Drug Enforcement Administration (“DEA”)’s National Prescription Audit, opioid prescriptions were down nearly 12% for the first eight months of 2018 from the same period a year earlier. In Wisconsin, the federal and state partners participating in this notification effort include the DEA, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, the U.S. Department of Defense, and the Wisconsin Department of Justice.
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For Additional Information Contact:
United States Attorney for the Eastern District of Wisconsin Matthew D. Krueger
Public Information Officer Kenneth B. Gales – (414) 297-1700
United States Attorney for the Western District of Wisconsin Scott C. Blader
Public Information Officer Myra Longfield – (608) 250-5461
U.S. Attorney says Wheeling Police Chief’s new role is great newsRead the Press Release
WHEELING, WEST VIRGINIA –United States Attorney Bill Powell is applauding the news that Wheeling Police Chief Shawn Schwertfeger will now sit on the executive board of the Appalachia High Intensity Drug Trafficking Area.
“Appalachia HIDTA serves a vital role in our fight against the drug epidemic, providing much-needed funding to our task forces. It’s only fitting to have Chief Schwertfeger sit on this team, with his years of law enforcement expertise and experience. As a member of the executive board myself, I believe the chief is a great addition to an already great group of people fighting the good fight,” said Powell.
The AHIDTA Executive Board provides executive leadership and direction on a multitude of issues pertaining to drug law enforcement throughout the Appalachia HIDTA area of responsibility which includes 90 designated counties in Kentucky, West Virginia, Tennessee and Virginia.
The High Intensity Drug Trafficking Area (HIDTA) program is administered by the Office of National Drug Control Policy (ONDCP). A component of the Executive Office of the President, ONDCP was created by the Anti-Drug Abuse Act of 1988. ONDCP advises the President on drug-control issues, coordinates drug-control activities and related funding across the Federal government, and produces the annual National Drug Control Strategy, which outlines Administration efforts to reduce illicit drug use, manufacturing and trafficking, drug-related crime and violence, and drug-related health consequences.
U.S. Attorney Minkler highlights continuity of operations during the appropriations lapseRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that operations at the U.S. Attorney’s Office, Southern District of Indiana (USAO-SDIN) continued during the appropriations lapse and recognized the important contributions made by USAO staff and investigative agents. The significant case-related accomplishments below, among others, underline the government’s dedication to mission as described by the United States Attorney in the USAO Strategic Plan.
- United States v. Jimmy Mitchell. Mitchell, a Boonville man found guilty of production and possession of sexually explicit material involving a minor following trial in August 2018, was sentenced to 40-years’ imprisonment. The collaborative investigation was led by the Evansville FBI Safe Streets Task Force Child Exploitation Section in partnership with the Warrick County Sheriff’s Office. Prosecution by Assistant United States Attorney (AUSA) Kyle Sawa.
- United States v. Neiko Currie and United States v. Howard Sawyer. Two inmates at the U.S. Bureau of Prisons sentenced to 30 and 120 months’ imprisonment, respectively, for possession of contraband (Currie) and assaulting a federal officer (Sawyer). Prosecution by AUSA James Warden.
- United States v. Bradley Gulledge. Federal charges including being a felon in possession of firearm, to-wit: a Taurus 9mm handgun, a Ruger 40 caliber handgun, model SR40, a MAADI AK47 semiautomatic rifle, and the distribution of 50 or more grams of a mixture or substance containing a detectable amount of methamphetamine. Prosecution by AUSA Pamela Domash.
- United States v. Austin Greene. Federal charges including conspiracy to steal firearms from a Federal Firearms Licensee and being an unlawful user of controlled substances in possession of a firearm, to-wit: a Beretta 9mm semiautomatic handgun. Prosecution by AUSA Pamela Domash.
- United States v. Teria Anderson. Anderson was convicted following a trial by jury in the Indianapolis Division of the United States Attorney’s Office, of being a prohibited person in possession of a firearm, to-wit: a Superior Arms S-15 S.56 rifle, a Marlin lever-action rifle, a Smith & Wesson .40 caliber handfun, following a trial by jury. Prosecution by Senior Litigation Counsel (SLC) and Lead Organized Crime and Drug Enforcement Task Force (OCDETF) Attorney Bradley Blackington and Special Assistant U.S. Attorney Eric Babbs.
- United States v. Sevon Thomas. Thomas was convicted following a trial by jury in the New Albany Division of the United States Attorney’s Office, charged with Intent to Distribute Methamphetamine and Carrying a Firearm During and in Relation to a Drug Trafficking Crime. Prosecution by AUSAs Lauren Wheatley and Frank Dahl.
- United States v. Quinones. Quinones pled guilty to Conspiracy to possess with intent to distribute and to distribute 500+ grams of methamphetamine in violation of 21 U.S.C. §§ 841 and 846, and to laundering monetary instruments, in violation of 18 U.S.C. § 1956. No sentencing date has been set yet. Prosecution by AUSA Michelle Brady.
- United States v. Craig Nichols. Nichols, the Building Commissioner for the city of Muncie, was sentenced to 24-months’ imprisonment and was ordered to pay $217,500 in restitution to the City of Muncie, Muncie Sanitary District, and Dannar Construction.
- United States v. Hector Castro-Aguirre, et.al. Four defendants were sentenced for their involvement in a multi-state conspiracy to distribute methamphetamine and cocaine. Hector Castro-Aguirre and Rafael Rojas-Reyes, both members of the Sinaloa Cartel, were sentenced to life imprisonment under the Continuing Criminal Enterprise statute, which is also known as the “drug kingpin statute.” John Ramirez-Prado, a drug courier for the organization, was sentenced to 240 months’ imprisonment. Jose Manuel Carrillo-Tremillo, the leader of a cocaine trafficking cell operating in Reading, Pennsylvania and Queens, New York, was sentenced to 215 months’ imprisonment. Prosecution by SLC and Lead OCDETF Attorney Bradley Blackington.
- United States v. Richard Conn. Conn was sentenced to 24-months’ imprisonment following his conviction for possession of and manufacturing a homemade silencer, in violation of the National Firearms Act (NFA). Prosecution by AUSA Jeff Preston.
- United States v. Vines. Vines was convicted on January 28, 2019 following a trial by jury in the Indianapolis Division of the United States Attorney’s Office. Charges involve sex trafficking of a minor child, transportation of that child across state lines for the purpose of trafficking her, as well as involvement in an organization that promoted the prostitution of other women. Prosecution by AUSAs Kristina Korobov and Lawrence Hilton.
- United States v. Jorge Tadeo, et al. and United States v. Cristian Gutierrez-Alvarez, et al. Twenty defendants have been indicted for Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C. § 846. Prosecution by SLC and Lead OCDETF Attorney Bradley Blackington.
- The USAO also announces that 205 defendants were prosecuted in Indianapolis under the umbrella of the Department’s reinvigorated Project Safe Neighborhoods 2.0 initiative. The Drug and Violent Crime Unit who handled these prosecutions is led by Deputy Chief Barry Glickman and is comprised of the following AUSAs: William McCoskey, Jeff Preston, Peter Blackett, Pamela Domash, Lawrence Hilton, Jeremy Morris, Kyle Sawa, Amanda Kester, and Abhishek Kambli.
An Information or Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Tyler County woman indicted on threat chargesRead the Press Release
WHEELING, WEST VIRGINIA – Taryn Corinne Henthorn, of Middlebourne, West Virginia, was indicted by a federal grand today on threat charges, United States Attorney Bill Powell announced.
Henthorn, age 25, was indicted on three counts of “Threatening to Kill the President of the United States.” Henthorn is accused of threatening on Facebook and elsewhere to kill President Donald Trump in January 2019 in Tyler County.
Henthorn faces up to five years incarceration and a fine of up to $250,000 for each count. 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 Randolph J. Bernard is prosecuting the case on behalf of the government. The United States Secret Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Wheeling residents indicted for making and distributing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Randy Lee Donahue, Jr., and Lauren Hedges, both of Wheeling, West Virginia, were indicted by a federal grand today on drug charges, United States Attorney Bill Powell announced.
Donahue, age 37, and Hedges, age 26, were both indicted on one count of “Conspiracy to Possess with the Intent to Distribute Methamphetamine,” one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine within 1,000 Feet of a Protected Location,” and one count of “Aiding and Abetting Maintaining Drug-Involved Premises.” Donahue was also indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession of Firearm with Obliterated Serial Number.”
Donahue and Hedges are accused of manufacturing, storing and distributing methamphetamine from an apartment located at 97 16th Street in Wheeling, within 1,000 feet of Wheeling Central Catholic High School in November 2018. Donahue, a convicted felon, is also accused of possessing a 9mm pistol and two .22 caliber revolvers with an obliterated serial numbers.
Donahue and Hedges each face up to 20 years incarceration and a fine of up to $1,00,000 for the conspiracy count, not less than one and up to 40 years incarceration for the protected location count, and up to 20 years incarceration and a fine of up to $500,000 for the premises count. Donahue also faces up to 10 years incarceration and a fine of up to $250,000 for the unlawful possession charge and faces up to five years incarceration and a fine of up to $250,000 for the obliterated serial number charge. 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 Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Top Executive at Long Island Mortgage Lender Pleads Guilty to $8.9 Million FraudRead the Press Release
Earlier today in federal court in Central Islip, New York, Edward E. Bohm, President of Sales and an undisclosed owner of Long Island mortgage lender Vanguard Funding, LLC (Vanguard), pleaded guilty to conspiring to commit wire fraud and bank fraud in connection with the illegal diversion of more than $8.9 million of warehouse loans that Vanguard had obtained to fund mortgages. The guilty plea was entered before United States District Judge Sandra J. Feuerstein. When sentenced, Bohm faces up to 30 years in prison, as well as restitution, criminal forfeiture and a fine.
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, and Linda A. Lacewell, Acting Superintendent, New York State Department of Financial Services, announced the guilty plea.
According to court filings and the facts presented at the plea proceedings, between August 2015 and March 2017, Bohm engaged in a scheme in which he and others obtained warehouse, or short-term, loans for Vanguard by falsely representing that Vanguard would use the proceeds of those loans to fund mortgages or provide mortgage refinancing for Vanguard’s clients. Once Vanguard received the loans, however, Bohm, along with others diverted the monies to pay personal expenses and compensation, and to pay off loans they had previously obtained with fraudulent loan submissions for improper purposes.
Earlier, in 2018, Vanguard’s Chief Operating Officer and the Chief Financial Officer entered guilty pleas in connection with this fraud and were sentenced to terms of incarceration.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are handling the prosecution with assistance from Assistant United States Attorney Laura Mantell of the Office’s Asset Forfeiture Section.
The Defendant:
EDWARD E. BOHM
Age: 41
Residence: Nissequogue, New YorkE.D.N.Y. Docket No. 18-CR-036 (SJF)
Three Individuals Indicted for Conspiracy to Commit Theft of Government Property and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of a
16-count indictment charging Deborah Pierre (31, Haines City), Billy Altidor (28, Wellington), and Evanie Louis (26, Wellington) with conspiracy to commit theft of government property, theft of government property, and aggravated identity theft. Each faces a maximum penalty of 10 years in federal prison for each theft charge, 5 years’ imprisonment on each conspiracy charge, and a minimum mandatory consecutive penalty of 2 years for the aggravated identity theft charge. The indictment also notifies the individuals that the United States is seeking a money judgment of $91,749.30, the proceeds of the alleged conspiracy.According to the indictment, Louis and Altidor conspired among themselves, and with others, to commit stolen identity refund fraud. The conspirators used stolen identities to file false tax returns and then directed the fraudulently obtained tax refunds to be deposited into accounts that they controlled. In addition, they activated debit cards and bank accounts using the stolen identities and received the fraudulently claimed tax refunds in those accounts.
Louis, Alitdor, and Pierre also conspired among themselves, and with others, to use stolen identities to access the MySocialSecurity system and redirect Social Security benefit payments to accounts controlled by the conspirators.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Social Security Administration – Office of the Inspector General, the Internal Revenue Service – Criminal Investigation, and the Department of the Treasury Office of the Inspector General. It will be prosecuted by Special Assistant United States Attorney Suzanne Huyler.
St. Albans Man Pleads Guilty to Theft of Social Security Income BenefitsRead the Press Release
CHARLESTON, W.Va. – Joseph McLaughlin entered a guilty plea to the felony offense of fraudulently obtaining Social Security Administration benefits, announced United States Attorney Mike Stuart. McLaughlin, 38, of St. Albans, West Virginia faces up to 5 years of incarceration when he is sentenced on May 7, 2019. He will also be required to pay restitution to the United States Treasury. The investigation was conducted by the Social Security Administration’s Office of the Inspector General (OIG) and the Social Security Administration.
“Fraudsters that rip off social security get no sympathy from me,” said United States Attorney Mike Stuart. “Many seniors rely on social security and a strained system is only more strained when illegal benefits are wrongfully claimed. McLaughlin stole more than $121,000 in social security benefits. This is a terrible story of greed and entitlement and it just goes to prove that it only takes one bad apple to ruin an orchard.”
McLaughlin applied for Title II Social Security Administration benefits in 2007 for the care of a child as the child’s representative payee. These Social Security representative payee benefits are based on income and living arrangements and create a duty on the recipient to report a change in living arrangements. There is also a requirement that the SSA money received actually be used for the well-being of the child. McLaughlin indicated that the child resided with him and he used the SSA benefits for the child’s care. In fact, McLaughlin’s child had moved out in 2011 and was no longer residing with him. The absence of the child would have ended the amount of money he was receiving every month from the Social Security Administration as the child’s representative payee. From April 2011 through February 2017, McLaughlin received at least $121,436 in Social Security benefits in excess of the amount he was due and that were not spent on the child. On August 15, 2017, McLaughlin gave a detailed statement to federal investigators with the OIG. McLaughlin admitted that he was receiving money that he was not entitled to receive and that the child had moved out of the home in 2011.
Assistant United States Attorney Erik S. Goes handled the prosecution. United States District Judge John T. Copenhaver Jr. presided over the hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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South Florida Resident Convicted of $100 Million International Fraud Scheme that Led to Collapse of One of Puerto Rico’s Largest BanksRead the Press Release
A Key Biscayne, Florida resident was found guilty yesterday by a federal jury for his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank); the losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse. The defendant was also convicted of a $3 million scheme to defraud Mellon United National Bank of Miami (Mellon Bank).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael De Palma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement.
Jack Kachkar, 55, was convicted of eight counts of wire fraud affecting a financial institution after a three-week trial before U.S. District Judge Donald L. Graham of the Southern District of Florida. Kachkar is scheduled to be sentenced by Judge Graham on April 30, 2019.
“Jack Kachkar engineered a massive fraud scheme that led directly to the failure of a major Puerto Rican bank with more than 1,500 employees,” said Assistant Attorney General Benczkowski. “I want to commend the prosecutors and our law enforcement partners for their tireless work investigating this complex case and holding the defendant to account for these crimes.”
“Jack Kachkar’s fraud caused substantial harm to the 1,500 employees of Westernbank and the people of Puerto Rico,” said U.S. Attorney Fajardo Orshan. “The U.S. Attorney’s Office remains committed to the prosecution of those individuals and corporations that use Miami and other South Florida communities as their base to operate multinational fraud schemes.”
“Today’s verdict holds the defendant accountable for orchestrating fraudulent schemes that resulted in more than $100 million in losses to insured institutions and the FDIC as receiver,” said Inspector General Lerner. “The FDIC Office of Inspector General remains committed to investigate cases of deception and swindles that undermine the integrity of financial institutions, and we will continue to work with our law enforcement partners to bring to justice those who commit such offenses.”
“IRS Criminal Investigation will always pursue investigations like this where Mr. Kachkar, for his own personal benefit, orchestrated such a large scheme at the expense of one of Puerto Rico’s largest banks and its 1,500 employees,” said IRS-CI Special Agent in Charge Palma. “This investigation shows that the appearance of success can be a mask for a tangled financial web of lies, and we are proud to be part of the prosecution team that is bringing Mr. Kachkar to justice.”
“HSI San Juan will continue working with our local, state and federal partners to investigate and prosecute these types of cases as well as those involving violations to the more than 400 federal statutes that we investigate, “ said HSI Special Agent in Charge Arvelo. “This man was responsible for one of the largest fraud schemes ever recorded in the banking business in Puerto Rico and he will pay the consequences.”
“This defendant’s greed was powerful enough to destroy a bank, taking with it the jobs of approximately 1,500 hard working citizens of Puerto Rico,” said FBI Special Agent in Charge Leff. “The FBI thanks the US Attorney’s Office for sending an equally strong message that most fraud schemes will eventually lead to a prison cell.”
According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company. Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries. Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed.
The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere. Kachkar caused these invoices to be presented to Westernbank as valid invoices. Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed. In fact, these lenders had not agreed to repay Westernbank’s loan. Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed. In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.
During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices. The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures.
In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans. According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse. At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.
In addition, the evidence showed, Kachkar knowingly deposited a $3 million check at Mellon Bank from the purported sale of his private jet. At the time of its deposit, based on the evidence presented, Kachkar knew that the check was worthless. In fact, the defendant agreed to sell his plane to a different buyer. After receiving a provisional credit for the check from Mellon Bank, the defendant wired out all of the provisional credit, including a $1 million wire to Kachkar’s personal account in Canada. Upon Mellon Bank’s request to reverse this $1 million wire, Kachkar refused to do so, resulting in at least a $1 million loss to Mellon Bank, the evidence showed.
This matter was investigated by the FDIC-OIG, IRS-CI, HSI and FBI. The Department of Justice’s Office of International Affairs provided significant support in the investigation. The case is being prosecuted by Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida.
South Florida Resident Convicted of $100 Million International Fraud Scheme that Led to Collapse of One of Puerto Rico’s Largest BanksRead the Press Release
A Key Biscayne, Florida resident was found guilty yesterday by a federal jury for his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank); the losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse. The defendant was also convicted of a $3 million scheme to defraud Mellon United National Bank of Miami (Mellon Bank).
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael J. De Palma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement.
Jack Kachkar, 55, was convicted of eight counts of wire fraud affecting a financial institution after a three-week trial before U.S. District Judge Donald L. Graham of the Southern District of Florida. Kachkar is scheduled to be sentenced by Judge Graham on April 30, 2019.
“Jack Kachkar’s fraud caused substantial harm to the 1,500 employees of Westernbank and the people of Puerto Rico,” said U.S. Attorney Fajardo Orshan. “The U.S. Attorney’s Office remains committed to the prosecution of those individuals and corporations that use Miami and other South Florida communities as their base to operate multinational fraud schemes.”
“Jack Kachkar engineered a massive fraud scheme that led directly to the failure of a major Puerto Rican bank with more than 1,500 employees,” said Assistant Attorney General Benczkowski. “I want to commend the prosecutors and our law enforcement partners for their tireless work investigating this complex case and holding the defendant to account for these crimes.”
“Today’s verdict holds the defendant accountable for orchestrating fraudulent schemes that resulted in more than $100 million in losses to insured institutions and the FDIC as receiver,” said Inspector General Lerner. “The FDIC Office of Inspector General remains committed to investigate cases of deception and swindles that undermine the integrity of financial institutions, and we will continue to work with our law enforcement partners to bring to justice those who commit such offenses.”
“IRS Criminal Investigation will always pursue investigations like this where Mr. Kachkar, for his own personal benefit, orchestrated such a large scheme at the expense of one of Puerto Rico’s largest banks and its 1,500 employees,” said IRS-CI Special Agent in Charge De Palma. “This investigation shows that the appearance of success can be a mask for a tangled financial web of lies, and we are proud to be part of the prosecution team that is bringing Mr. Kachkar to justice.”
“HSI San Juan will continue working with our local, state and federal partners to investigate and prosecute these types of cases as well as those involving violations to the more than 400 federal statutes that we investigate, “ said HSI Special Agent in Charge Arvelo. “This man was responsible for one of the largest fraud schemes ever recorded in the banking business in Puerto Rico and he will pay the consequences.”
“This defendant’s greed was powerful enough to destroy a bank, taking with it the jobs of approximately 1,500 hard working citizens of Puerto Rico,” said FBI Special Agent in Charge Leff. “The FBI thanks the US Attorney’s Office for sending an equally strong message that most fraud schemes will eventually lead to a prison cell.”
According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company. Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries. Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed.
The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere. Kachkar caused these invoices to be presented to Westernbank as valid invoices. Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed. In fact, these lenders had not agreed to repay Westernbank’s loan. Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed. In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.
During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices. The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures.
In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans. According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse. At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.
In addition, the evidence showed, Kachkar knowingly deposited a $3 million check at Mellon Bank from the purported sale of his private jet. At the time of its deposit, based on the evidence presented, Kachkar knew that the check was worthless. In fact, the defendant agreed to sell his plane to a different buyer. After receiving a provisional credit for the check from Mellon Bank, the defendant wired out all of the provisional credit, including a $1 million wire to Kachkar’s personal account in Canada. Upon Mellon Bank’s request to reverse this $1 million wire, Kachkar refused to do so, resulting in at least a $1 million loss to Mellon Bank, the evidence showed.
This matter was investigated by the FDIC-OIG, IRS-CI, HSI and FBI. The Department of Justice’s Office of International Affairs provided significant support in the investigation. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Florida Pain Management Doctor Convicted of 11 Counts of Illegally Dispensing Opioid DrugsRead the Press Release
Dr. Jeanne E. Germeil, 55, of Aventura, Florida was convicted by a federal jury, on January 31, 2019, of eleven counts of dispensing controlled substances, opioid pain medications, without a legitimate medical purpose.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division made the announcement.
“Physicians, such as Dr. Jeanne Germeil, who dispense pain medications without a legitimate medical purpose fuel the opioid epidemic,” stated U.S. Attorney Fajardo Orshan. “The U.S. Attorney’s Office and our law enforcement partners will continue to prosecute those medical professionals who seek to profit off of a public health crisis.”
“Dr. Germeil’s conviction clearly illustrates the consequences of what could happen when medical professionals misuse their authority and dispense narcotics illegally,” said DEA Special Agent in Charge Adolphus P. Wright. “The DEA remains committed to working with our law enforcement partners to rid our communities of these rogue medical professionals who have violated the trust of many.”
According to evidence admitted at trial, Dr. Germeil ran Germeil Medical, Inc., a family medicine and pain management clinic, in North Miami Beach, Florida. Beginning in or around March 2016 and continuing through November 2017, Dr. Germeil prescribed controlled opioid pain medication to patients. The true and intended purpose of the consultations was to improperly issue prescriptions to patients for opioids, such as Hydromorphone, Oxycodone, and Oxycodone-Acetaminophen, in exchange for cash, cash co-pays, and other payments. Pursuant to Dr. Germeil’s instructions, office staff were required to obtain an MRI from patients to create a façade of legitimacy before an office consult. After passing the gate-keeping function, Dr. Germeil prescribed opioids at levels consistent with treating end of life, cancer, and terminally ill patients and maintained those prescription levels throughout the duration of the patient visits.
Between February 1, 2016 and September 26, 2017, Dr. Germeil wrote 13,759 prescriptions to patients for 1,458,727 units of Hydromorphone, Oxycodone, and/or Oxycodone-Acetaminophen. Dr. Germeil was not providing a medically meaningful consultation but was in fact acting outside the scope of her professional practice and without legitimate medical purpose.
Dr. Germeil is scheduled to be sentenced by U.S. District Judge Ursula M. Ungaro on April 9, at 2:00 p.m. in Miami.
U.S. Attorney Fajardo Orshan commended the investigation conducted by the DEA and the Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, Miami Gardens Police Department, North Miami Beach Department and Florida Department of Health’s Prescription Drug Monitoring Program, E-FORCSE. This case is being prosecuted by Assistant U.S. Attorneys Andy R. Camacho and Kurt Lunkenheimer of the Southern District of Florida.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Skilled Nursing Facility Management Company Agrees to Settle False Claims Act AllegationsRead the Press Release
NASHVILLE, Tenn. – February 5, 2019 - Tennessee Health Management, Inc. (“THM”) has agreed to pay $9,764,107.98 to settle allegations that it violated the False Claims Act, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. The alleged conduct involved the submission of false claims for payment to TennCare, Tennessee’s Medicaid Program, related to nursing facility services to TennCare beneficiaries.
"Enforcement of the False Claims Act remains a priority of the Department of Justice and this Office,” said U.S. Attorney Cochran. “When violations are discovered, corporations should seek to immediately cooperate and resolve the allegations and minimize future risks, as THM has done here.”
TennCare requires that a placement evaluation be conducted and certified by a physician for each patient entering a nursing home. This settlement resolves allegations by the United States and the State of Tennessee that during the period of January 1, 2010 through December 31, 2017, THM submitted pre-admission evaluations with photocopied or pre-signed physician signatures on the required certifications for claims rendered to TennCare beneficiaries at its associated Tennessee skilled nursing and rehabilitation facilities. THM operates 27 skilled nursing facilities in the State of Tennessee.
"The cooperation between our Medicaid Fraud Control Unit and our federal partners in investigations such as this is critical in the pursuit of false claims, to ensure the vulnerable members of our community receive the quality of care they need and deserve," says TBI Director David Rausch.
Under the terms of the settlement, the United States will receive $5,455,207.13 and the State of Tennessee will receive $4,308,900.85. THM will also enter into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services-Office of Inspector General.
This matter was investigated by the Tennessee Bureau of Investigation-Medicaid Fraud Control Unit and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni. The claims settled by this agreement are allegations only and there has been no determination of liability.
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Rochester Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
CONCORD – William Bailey, 56, of Rochester, pleaded guilty in federal court to being a felon in possession of a firearm, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, in November of 2016 Bailey pawned a Ruger .22 caliber rifle at a federally licensed firearms dealer in Rochester, New Hampshire. Bailey previously had been convicted of attempted armed robbery in Georgia in 2011. As a convicted felon, Bailey is prohibited under federal law from possessing a firearm.
Bailey is scheduled to be sentenced on May 14, 2019.
“In order to maintain public safety, it is essential that we keep guns out of the hands of criminals,” said U.S. Attorney Murray. “Disarming convicted felons advances this effort. Through Project Safe Neighborhoods, we are working closely with our law enforcement partners to identify and prosecute violent criminals who possess firearms.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rochester Police Department. The case is being prosecuted by Assistant U.S. Attorney Helen White Fitzgibbon.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Raleigh Man Sentenced for Possession of a Firearm and Ammunition by a FelonRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Louise W. Flanagan sentenced TRAEJAN JAHAD BARNES, 19, of Raleigh to 33 months imprisonment followed by 3 years of supervised release.
BARNES was named in an Indictment filed on June 6, 2018. On October 18, 2018, BARNES pled guilty to one-count of Possession of a Firearm and Ammunition by a Felon.
On April 18, 2018, investigators with the Raleigh Police Department observed an individual in the left rear passenger seat of a vehicle driven by another man and BARNES was observed in the right rear passenger seat of the vehicle. BARNES informed investigators that there was a firearm underneath him. As BARNES moved across the back seat to exit the vehicle, a loaded Ruger LC9 semi-automatic handgun fell onto the floorboard and was recovered by investigators. Further investigation determined that on March 15, 2018, the firearm was reported stolen in Wendell, North Carolina. Moreover, investigators determined that BARNES is prohibited from possessing firearms and ammunition due to his prior felony convictions.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The case was investigated by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Daniel W. Smith prosecuted the case on behalf of the United States.
Poplar man admits manslaughter in baby’s deathRead the Press Release
GREAT FALLS – Poplar resident Dennis Lloyd Red Boy, 28, pleaded guilty today in federal court to involuntary manslaughter for the death of a baby, U.S. Attorney Kurt Alme said.
Red Boy faces a maximum eight years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided at the hearing. Morris set sentencing for June 5. Red Boy is detained.
Prosecutors said the evidence would show that on Aug. 15, 2017, Red Boy was taking care of children in Poplar, on the Fort Peck Indian Reservation, when a six-month-old baby would not stop crying. After several interviews with investigators, Red Boy admitted he put the baby on her back, but she would not stop crying. He then flipped her over, with her face into the bed, and put a heavy blanket on her. He returned to find the baby was not breathing and immediately sought help. He acknowledged that his actions were the proximate cause of the baby’s death.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI.
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Oxycodone Distributor Sentenced to 72 Months in PrisonRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on January 4, 2019, Lee Hueckstaedt, (age 32) of Rhinelander was sentenced in federal court to 72 months in prison for conspiring to distribute oxycodone and using a firearm in furtherance of that conspiracy. Hueckstaedt had previously pleaded guilty to both of those charges.
The investigation revealed that from 2015 through 2016, Hueckstaedt traveled from Rhinelander to Milwaukee to pick up approximately 2,900 oxycodone 30 mg pills that had been prescribed by medical professionals earlier in the chain of supply. Hueckstaedt then distributed those pills in northern Wisconsin. Hueckstaedt asked his oxycodone customers to refer to him as “Mr. White” or “Ghost.” The evidence also showed that Hueckstaedt actively recruited oxycodone customers.
While sentencing Hueckstaedt, United States District Court Judge Pamela Pepper emphasized that the offense was very serious because of the many problems, such as overdose deaths and addiction, that opioids cause in Wisconsin communities. In a related case, seven other defendants have pleaded guilty to offenses regarding prescription opioids that were obtained in the Milwaukee area and distributed in northern Wisconsin. See United States v. Orvin Kay, Case No. 17-CR-16.
“Whether swallowed as a pill or injected through a needle, opioids are highly addictive,” said U.S. Attorney Krueger. “This lengthy sentence reflects that trafficking in prescription opioids is just as serious as other drug trafficking. This case also reflects extraordinary partnership by all levels of law enforcement—federal, state, and local—to combat the opioid epidemic.”
The following agencies participated in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice—Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department and the Rhinelander Police Department; and the Northcentral Drug Enforcement Group (“NORDEG”). The case was prosecuted by Assistant United States Attorney Zachary J. Corey.
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For Additional Information Contact:
Public Information Officer Kenneth B. Gales 414-297-1700