Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 5 February 2019
Owner of Information Technology Staffing Company Charged with Visa and Naturalization FraudRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested this morning for allegedly submitting 11 fraudulent H-1B visa applications as well as fraudulently procuring his own citizenship, U.S. Attorney Craig Carpenito announced.
Neeraj Sharma, 43, of Piscataway, New Jersey, is charged by complaint with one count of visa fraud and one count of naturalization fraud. Sharma is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
Sharma recruited foreign workers with purported IT expertise who sought work in the United States. When submitting the potential staffers’ H-1B visa paperwork to U.S. Citizenship and Immigrations Services, Sharma falsely represented that the foreign workers had full-time positions awaiting them at a national bank, a prerequisite to securing their visas. In fact, Sharma had never secured work for the applicants and submitted phony letters to USCIS on the bank’s letterhead with forged signatures of bank executives. The H-1B program applies to employers seeking to hire nonimmigrant aliens as workers in specialty occupations or as fashion models of distinguished merit and ability.
The visa and naturalization fraud charges carry a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Special Agent in Charge Brian A. Michael, the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, and the U.S. CIS Office of Fraud Detection and National Security, Vermont and Newark Field Offices, with the investigation.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ossipee Man fined and Placed on Probation for Providing False Information in an Effort to Obtain Fishery Disaster Relief FundsRead the Press Release
CONCORD – Dave Bardzik, 56, of Ossipee, was sentenced to 18 months of probation and fined $2,500 for making a false statement in an effort to obtain fishery disaster relief funds, United States Attorney Scott W. Murray announced today.
In late October 2012, Hurricane Sandy devastated the Atlantic coast of the United States. In addition to causing widespread property damage, the storm had substantial impacts on the New England fishing industry. Pursuant to the Magnuson-Stevens Act, the Secretary of Commerce declared a fishery disaster and Congress approved fishery disaster relief funds. Operators of both commercial and “for hire” vessels in New Hampshire were provided information about how to apply for a share of those funds. Required criteria included that “for hire” vessels, like Bardzik’s, must have taken at least 15 trips in three of the previous four years in which at least one New England groundfish species was harvested.
According to court documents and statements made in court, Bardzik submitted several false and/or altered records to the New Hampshire Fish and Game Department in June 2015 in an attempt to qualify for the allotted funds. Investigators immediately noted discrepancies between the June 2015 submission and the previous, contemporaneous records Bardzik had completed in 2013. When confronted by investigators, Bardzik admitted that he created the false and/or altered records because he would otherwise not have qualified for funds.
Bardzik previously pled guilty on October, 30, 2018.
“When the federal government spends money for disaster relief, the funds should only go to those who have been true victims of the disaster,” said U.S. Attorney Murray. “Those who seek to cheat the system should understand that there will be substantial consequences for their criminal conduct.”
“This is a real win for the commercial fisherman of New Hampshire,” said Lieutenant Michael Eastman, District Chief of the Seacoast region for New Hampshire Fish and Game. “This investigation was a cooperative effort between New Hampshire Fish and Game and NOAA Office of Law Enforcement, and shows the importance of the Joint Enforcement Agreement outside of the daily dockside enforcement.”
This matter was investigated by the National Oceanic and Atmospheric Administration’s Office of Law Enforcement with assistance from the New Hampshire Fish and Game Department. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
###
Northern Nevada Hospital Physician Pleads Guilty to Unlawful Distribution of Opioid PrescriptionsRead the Press Release
RENO, Nev. – The Vice Chief of Staff for Humboldt County General Hospital in Winnemucca, Nevada, pleaded guilty Tuesday to illegally writing prescriptions for dangerous and addictive narcotics, such as the opioids Oxycodone and Hydrocodone, without a medical purpose, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
“Federal law enforcement in Nevada is helping to stem the rising tide of illicit prescriptions in the state,” said U.S. Attorney Trutanich. “We remain committed to investigating and prosecuting doctors who abuse their position of trust and fuel the opioid epidemic.”
Dr. Shouping Li, 57, of Winnemucca, pleaded guilty to distribution of a controlled substance, specifically Oxycodone and Hydrocodone. He is a licensed physician specializing in family medicine with a concentration in cardiovascular disease. United States District Judge Miranda Du accepted the guilty plea.
Dr. Li admitted that between August 2015 and February 2018, he prescribed Oxycodone and Hydrocodone, both opioid pain medications, to patients outside the usual course of his professional practice and without a legitimate medical purpose. He further admitted that several of his patients passed away while he actively attended to them.
At the June 10, 2019, sentencing hearing, Dr. Li faces the maximum penalty of 20 years in prison and a fine of $1,000,000.
The case is being investigated by the FBI, Tri-County Drug Enforcement Team, Nevada Department of Public Safety, Humboldt County Sheriff's Office, Winnemucca Police Department, Elko Combined Narcotics Unit, Elko Police Department, Elko County Sheriff's Office, and the Office of Inspector General of the U.S. Department of Health and Human Services. Assistant U.S. Attorney Sue Fahami is prosecuting the case.
If you have a tip or information about illegal sales or distribution of prescription opioids, including Fentanyl, Oxycodone, and Hydrocodone by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873) or contact the FBI at tips.fbi.gov.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. Since its formation, more than seven doctors and medical professionals have been prosecuted in the District of Nevada. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
###
New York Man Sentenced to 77 Months in Prison for Possessing Firearm as a Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Yonkers, New York, man who was convicted by a federal jury of possessing a firearm as a previously convicted felon was sentenced today to 77 months in prison, U.S. Attorney Craig Carpenito announced.
Francisco Vallejo, 29, was previously convicted of possessing a firearm despite his three prior felony convictions in Passaic County Superior Court. Vallejo was convicted on July 26, 2018, following a four-day trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On June 7, 2015, Vallejo was arrested in Passaic, New Jersey, after reports of a disturbance and gunshots were made to the Passaic Police Department. Responding officers detained Vallejo on the street, and thereafter located a loaded .25 caliber firearm in a nearby garbage can. A nearby security camera captured Vallejo stashing the firearm in the garbage can, and he was later found to have gunpowder residue on his hands.
In addition to the prison term, Judge Wigenton sentenced Vallejo to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge John B. Devito, officers of the Passaic Police Department, under the direction of Chief of Police Luis A. Guzman, and officers of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney J. Brendan Day and Senior Trial Counsel R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
New York Man Sentenced to 60 Months’ Imprisonment for Cocaine TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 8, 2019, United States District Court Judge Robert D. Mariani sentenced Luis Santos, age 51, of New York, to 60 months’ imprisonment and a three-year term of supervised release, for conspiring to possess with the intent to distribute cocaine.
According to United States Attorney David J. Freed, Santos, his co-defendant, Rafael Lora, and other individuals conspired to import nearly a kilogram of cocaine from the Dominican Republic to Hazleton, Pennsylvania. After being charged and released on pretrial supervision, Santos was arrested attempting to enter Canada bearing false identification documents. He was charged and convicted in the Northern District of New York for that offense.
Santos was a citizen of the Dominican Republic and obtained permanent residency in the United States. However, as a result of this conviction, he is subject to potential deportation.
This case was also brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The investigation was conducted by Homeland Security Investigations, the U.S. Postal Inspectors, Customs and Border Patrol, and other state and local law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
# # #
New York City Man Sentenced to Prison for Transporting Heroin to Western PA for DistributionRead the Press Release
PITTSBURGH - A resident of New York City has been sentenced in federal court to 2½ years’ imprisonment on his conviction of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Joy Flowers Conti imposed the sentence on William Rosario, 25, of New York, NY.
According to information presented to the court, from in and around November 2016 through in and around February 2017, Rosario conspired with his codefendants, David Francis and Jose Ortega, to possess with intent to distribute and distribute 100 grams or more of heroin, which he transported from New York to the Western District of Pennsylvania.
Prior to imposing sentence, Judge Conti stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, Monroeville Police Department, Stowe Township Police Department, Ingram Borough Police Department, Pennsylvania State Police, and Monaca Police Department for the investigation leading to the successful prosecution of Rosario.
Mountain Top CPA Charged with Money Laundering and Tax EvasionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Adam Kamor, age 43, of Mountain Top, Pennsylvania, was charged in a criminal information on February 1, 2019, with money laundering and tax evasion.
According to United States Attorney David J. Freed, the information alleges that Kamor worked as a Certified Public Accountant and operated the accounting business Decker Accounting LLC in Wilkes-Barre, Pennsylvania. From October 2014 to January 2018, Kamor allegedly embezzled approximately $1,384,000 from one of his clients, a non-profit organization. Kamor allegedly used the embezzled funds for his own personal benefit.
The information also alleges that Kamor failed to report a total of $804,365.73 in income between tax years 2014 ($110,607.08), 2015 ($315,224.71), and 2016 ($378,533.94). Kamor allegedly filed false Form 1040 Individual Income Tax Returns for each of those tax years.
The case was investigated by the Internal Revenue Service’s Criminal Investigations Division. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 25 years of 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.
# # #
More than Two Dozen Defendants Sentenced in Federal CourtRead the Press Release
A total of 28 individuals were sentenced in Federal Court in the Northern District of Iowa between December 27, 2018 and January 25, 2019. The offenses of conviction varied, with the vast majority being drug and gun offenses.
- Jose Hedaldo Padilla-Ferrera was sentenced to 93 days’ imprisonment to be followed by 1 year of supervised release on one count of illegal reentry. The sentence was imposed on December 27, 2018, in case file number 18-CR-02054.
- Chris Bruce was sentenced to 230 months’ imprisonment to be followed by 8 years of supervised release on one count of possession with intent to distribute methamphetamine. The sentence was imposed on January 3, 2019, in case file number 18-CR-03028.
- Alston Ray Campbell, Jr. was sentenced to 262 months’ imprisonment to be followed by 5 years of supervised release on one count of conspiracy to distribute cocaine and cocaine base (crack) and one count of possession with intent to distribute cocaine. The sentence was imposed on January 3, 2019, in case file number 17-CR-02045. Campbell Jr. was convicted following a jury trial in April 2018, along with his brother, William Campbell, and father, Alston Ray Campbell, Sr. for offenses relating to their participation in a drug trafficking organization in Waterloo. His father and brother will be sentenced at a later date.
- Erick Corona Cardenas was sentenced to 120 months’ imprisonment to be followed by 10 years of supervised release on one count of conspiracy to distribute methamphetamine. The sentence was imposed on January 3, 2019, in case file number 18-CR-04016.
Keylynn Landon Goldsmith was sentenced to 60 months’ imprisonment to be followed by 1 year of supervised release on two counts of use of communication facility. The sentence was imposed on January 3, 2019, in case file number 17-CR-02051.- Eric John Steve was sentenced to 7 months’ imprisonment to be followed by 1 year of supervised release on one count of possession of a controlled substance (third offense). The sentence was imposed on January 4, 2019, in case file number 18-CR-01031. The case arose from Steve’s possession of heroin.
- Antonio Scott McGhee was sentenced to 33 months’ imprisonment to be followed by 3 years of supervised release on one count of possession of a firearm by an unlawful user of a controlled substance. The sentence was imposed on January 4, 2019, in case file number 18-CR-02019.
- Sanela Dedic was sentenced to 3 years’ probation on one count of conspiracy to commit marriage fraud. Selmir Salkanovic was sentenced to 93 days’ imprisonment to be followed by 3 years of supervised release on one count of conspiracy to commit marriage fraud. The sentences were imposed on January 4, 2019, in case file number 18-CR-02057. Salkanovic, a citizen of Bosnia, overstayed his visitor visa. Dedic, Salkanovic’s sister and a naturalized citizen of the United States, found a United States citizen, a young woman, from Waterloo, Iowa, to marry Salkanovic in an attempt to defeat United States immigration laws. Salkanovic and Dedic promised to pay the young woman $5,000 to marry Salkanovic. Salkanovic married the young woman one week before the departure deadline.
- Francisco Javier Ransaure-Jacome was sentenced to 18 months’ imprisonment to be followed by 1 year of supervised release on one count of illegal reentry. The sentence was imposed on January 8, 2019, in case file number 18-CR-04061. Ransaure-Jacome had previously been convicted in Clay County, Iowa, of attempted burglary, assault with a dangerous weapon (a knife), and assaulting a fellow inmate at the Clay County jail.
- Adrian Harlan, Jr. was sentenced to 3 months’ imprisonment to be followed by 1 year of supervised release on one count of possession of a firearm and ammunition by a drug user. The sentence was imposed on January 10, 2019, in case file number 18-CR-04027.
- Duaine Harbert was sentenced to 113 months’ imprisonment to be followed by 5 years of supervised release on one count of conspiracy to distribute methamphetamine and one count of distributing heroin. The sentence was imposed on January 10, 2019, in case file number 18-CR-04008.
- Boulder Young was sentenced to 120 months’ imprisonment to be followed by 5 years of supervised release on one count of conspiracy to distribute methamphetamine. The sentence was imposed on January 14, 2019, in case file number 17-CR-04030.
- Traeton Wilharm was sentenced to 60 months’ imprisonment to be followed by 5 years of supervised release on one count of conspiracy to distribute methamphetamine. The sentence was imposed on January 15, 2019, in case file number 18-CR-02027.
- Henry Lee Booth was sentenced to 18 months’ imprisonment to be followed by 3 years of supervised release on one count of possession with intent to distribute a controlled substance and one count of possession of a firearm by a prohibited person. The sentence was imposed on January 16, 2019, in case file number 18-CR-04030.
- William James Wesley was sentenced to 41 months’ imprisonment to be followed by 3 years of supervised release on one count of possession of a firearm by a prohibited person and one count of possession with intent to distribute a controlled substance. The sentence was imposed on January 17, 2019, in case file number 18-CR-01011. The sentencing judge enhanced Wesley’s sentence for threatening a grand jury witness in an unrelated case.
- Victor Wicher was sentenced to 71 months’ imprisonment to be followed by 3 years of supervised release on one count of possession of a firearm by a prohibited person. The sentence was imposed on January 17, 2019, in case file number 18-CR-00057. At the time he possessed the firearm, Wicher was a felon with three prior domestic assault convictions and a history of other violent offenses. His offense was based on an incident where he threatened to kill himself during an argument with his then-girlfriend while holding a gun to his head. Wicher later entered into the then-girlfriend’s residence, choked her and threatened her and a family member in an attempt to prevent her from cooperating against him. Wicher was convicted of a fourth domestic assault offense based on the incident involving him entering the then-girlfriend’s residence and threatening and choking her.
- Jesse Andrew Hall was sentenced to 60 months’ imprisonment to be followed by 3 years of supervised release on one count of possession of a firearm by a drug user. The sentence was imposed on January 17, 2019, in case file number 18-CR-02021.
- Gerald Francis Straka was sentenced to 8 months’ imprisonment to be followed by 3 years of supervised release on one count of possession of a firearm by a drug user. The sentence was imposed on January 18, 2019, in case file number 19-CR-01020.
- Derrick Ford was sentenced to 20 months’ imprisonment to be followed by 3 years of supervised release on one count of interference and attempted interference with commerce by threats and violence and aiding and abetting such violation. The sentence was imposed on January 18, 2019, in case file number 18-CR-00015. Ford served as the driver for Gage Rupp and Cedric Wright who robbed a Cedar Rapids Sprint Store of more than $40,000 in electronic devices and cash. Rupp and Wright have also been convicted for their involvement in the robbery and for carrying a gun found in the robbery getaway car. Wright was also convicted at trial in November 2018 of carjacking the robbery getaway car at gunpoint from a Kirkwood college student the night before the Sprint Store robbery. Rupp and Wright will be sentenced at a later date.
- Juan Sanchez-Velasco was sentenced to 136 days’ imprisonment to be followed by 1 year of supervised release on one count of illegal re-entry. The sentence was imposed on January 18, 2019, in case file number 18-CR-00088.
- Cornelius Herbert Terrell Wright was sentenced to 18 months’ imprisonment to be followed by 3 years of supervised release on one count of distribution of heroin. The sentence was imposed on January 23, 2019, in case file number 18-CR-00061. The case arose from Wright’s distribution of heroin that was laced with synthetic fentanyl.
- Christopher Smith was sentenced to 36 months’ imprisonment to be followed by 3 years of supervised release on one count of possession of firearms by a felon. The sentence was imposed on January 23, 2019, in case file number 18-CR-03015.
- Dominique Dwight Williams was sentenced to 6 months’ imprisonment to be followed by 3 years of supervised release on one count of possession of a firearm by a drug user. The sentence was imposed on January 24, 2019, in case file number 18-CR-00046. At the time of his arrest, Williams needed to be subdued with a taser after he initially failed to respond to police directives.
- Dion Clayborn was sentenced to 144 months’ imprisonment to be followed by 6 years of supervised release on one count of possession with intent to distribute a controlled substance near a protected location. The sentence was imposed on January 25, 2019, in case file number 18-CR-00051.
- Brianna Marie Martin was sentenced to 27 months’ imprisonment to be followed by 6 years of supervised release on one count of distribution of heroin. The sentence was imposed on January 25, 2019, in case file number 18-CR-01021. Martin distributed methadone to a person who died after using the drug.
- Dakota Lee Sanders was sentenced to 120 months’ imprisonment to be followed by 5 years of supervised release on one count of conspiracy to distribute methamphetamine. The sentence was imposed on January 25, 2019, in case file number 17-CR-03060.
- Samuel Arias was sentenced to 57 months’ imprisonment to be followed by 2 years of supervised release on one count of conspiracy to distribute methamphetamine and one count of conspiracy to commit money laundering. The sentence was imposed on January 25, 2019, in case file number 17-CR-02084. Arias’ money laundering conviction resulted from his opening a bank account which was used to launder approximately $280,000 in drug proceeds.
There is no parole in the federal system.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
Follow us on Twitter @USAO_NDIA.
- Jose Hedaldo Padilla-Ferrera was sentenced to 93 days’ imprisonment to be followed by 1 year of supervised release on one count of illegal reentry. The sentence was imposed on December 27, 2018, in case file number 18-CR-02054.
Monroe County Man Guilty in Black P-Stone’s Heroin Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Arthur Taylor, age 36, of Tobyhanna, Pennsylvania, pleaded guilty on February 1, 2019, before U.S. District Court Judge Malachy E. Mannion to participating in a drug trafficking conspiracy.
According to United States Attorney David J. Freed, Taylor participated in a drug trafficking conspiracy that was responsible for distributing more than 100 grams of heroin (equivalent to more than 4,000 retail bags), marijuana, crack cocaine, percocet, and molly in the Poconos and in the state of Maine beginning in 2010 and for several years thereafter.
Taylor admitted to being a member of the Black P-Stones, a street gang whose male members were “beaten-in” to the gang and whose female members were” sexed-in” to the gang. Taylor and other P-Stones obtained heroin and other drugs from suppliers in New York and distributed them to others in Monroe County and in Maine. The P-Stones used females to transport the drugs to Maine.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing for Taylor will be scheduled at a later date.
Taylor was indicted by a federal grand jury in January 2018, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, local and state police in Maine, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. The offense also carries a mandatory minimum sentence of 10 years in prison. 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.
# # #
Mishawaka Man Sentenced to 30 Years in PrisonRead the Press Release
SOUTH BEND – Carlos Maez, 41 years old, of Mishawaka, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio to 30 years in prison, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “Today’s 30 year sentence reflects the seriousness of armed career criminals who continue to commit violent crimes in this District. We will continue to seek sentences like this one to deter others that simply do not get the message.”
In May 2018, a jury convicted Maez of armed bank robbery, possessing a firearm during a crime of violence, and possessing a firearm after having been convicted of a felony.
According to documents in the case, on October 16, 2015, a bank in South Bend was robbed by a man who displayed a firearm. The robber demanded money from the teller and fled on foot with over $8,000.00. Witnesses saw him run from the bank and enter an SUV that fled the scene. Photos of the robber were released to the media a few days later. Acting on a tip, the FBI identified Maez as a suspect. Several individuals identified Maez from bank surveillance images. Maez has five prior felony convictions, including bank robbery, and was on parole when he robbed the bank in 2015.
This case was investigated by the FBI with the assistance of the South Bend Police Department and was prosecuted by Assistant United States Attorneys Frank Schaffer and Molly Donnelly.
###
Member of Westside Crips Criminal Street Gang Pleads Guilty to Racketeering Conspiracy Involving Drug Trafficking, Sex Trafficking and Other Violent CrimesRead the Press Release
Assistant U.S. Attorneys Alessandra P. Serano (202) 252-5843 or Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – February 4, 2019
SAN DIEGO – Westside Crips gang member William McKinley Bright today became the last of 12 defendants to plead guilty, admitting that he participated in a racketeering conspiracy involving narcotics trafficking, sex trafficking and other violent crimes.
Bright, aka “Slim,” admitted to his membership and association with the Westside Crips, which primarily operated in Oceanside. Sentencing for Bright is scheduled for May 3, 2019.
In furtherance of the RICO conspiracy, Bright admitted he engaged in multiple narcotics transactions at a local hotel in Oceanside as well as other places in San Diego and Vista, in order to promote the Westside Crips. Bright admittedly sold gram-quantities of methamphetamine between October 2014 and May 2015. Bright also acknowledged that he was an active and productive member of the Westside Crips who promoted the gang through use of social media as well as wearing gang colors and displaying gang signs. Bright admitted that the conspiracy in which he was involved resulted in the distribution of at least 150 grams but less than 500 grams of methamphetamine in San Diego County.
In 2017 and 2018, Bright’s coconspirators pleaded guilty to RICO conspiracy. They include: Corey Deshawn Austin (aka “Westwood”), Ameer Fareed Roby (aka “Tiny Dum Dum”), Michael Anthony Sullivan (aka “Du-Low”), Peter Andrew Miranda (aka “Fat Boy,” “Baby Rocks,” and “Lil’ Burger”), Shane Robert Anderson (aka “Tiny Westwood”), Jasiri Malcolm Lacey (aka “Baby Westwood”), Demetrius Montre McFarland (aka Mechii Ruu”), Travion McHenry (aka “Too Much”), Richard Cleveland (aka “Face”), Larry Darnell Monroe, and Umesh Oza (aka “Kevin”) pleaded guilty to RICO conspiracy. All but Corey Deshawn Austin were sentenced to terms of imprisonment ranging from 4 months to 180 months. Austin is scheduled to be sentenced on March 1, 2019.
“Because of the diligence of investigators and prosecutors, a dozen violent gang members are in prison and no longer a threat to our communities,” said U.S. Attorney Robert S. Brewer Jr., who praised the efforts of multiple agencies who worked together for maximum impact. “We will use all of our legal resources to release our neighborhoods from the grips of gangs that peddle drugs and violence.”
“Drugs corrupt. Corruption leads to addiction, greed and violence. Utilizing one of the USA’s most powerful tools against violent criminal organizations like the Westside Crips, a RICO conspiracy, united law enforcement agencies banish and destroy whole organizations,” said DEA Special Agent in Charge Karen Flowers. “It isn’t easy, it isn’t quick and it takes an incredible amount of work. But, it is the strongest message that can be sent to organized crime. It might not be today or tomorrow, but we are relentless. We will come for you and when you are gone, our streets will be safer and our communities stronger.”
“The guilty plea announced today provides a window into a criminal enterprise that appeared willing to do anything and everything illegal to make a profit,” stated IRS Acting Special Agent in Charge Bryant Jackson. “The role of IRS Criminal Investigation in narcotics and human trafficking investigations is to follow the money so we can financially disrupt and dismantle these major drug trafficking organizations and protect our communities from the violent behavior of these malicious street gangs.”
“The Oceanside Police Department would like to thank the U.S. Attorney's Office and other law enforcement agencies for their collaboration and hard work during this operation. It is collective efforts like this that highlight why the San Diego region is a model for other law enforcement agencies to emulate, to keep their communities safe,” said Oceanside Police Chief Frank McCoy.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number 17cr0270-JAH
William McKinley Bright, aka “Slim” Age: 53 Oceanside, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 - Criminal Forfeiture Maximum Penalties: 20 years’ incarceration, a fine of $250,000, three years of supervised release
AGENCIES
North County Narcotics Task Force
Drug Enforcement Administration
Oceanside Police Department
Internal Revenue Service
Marshall County man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kenneth R. Beckner, of Moundsville, West Virginia, was indicted by a federal grand today on drug charges, United States Attorney Bill Powell announced.
Beckner, age 30, was indicted on one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances” and two counts of “Possession with Intent to Distribute Methamphetamine.” Beckner is accused of distributing methamphetamine from July 2018 to January 2019 in Marshall County.
Beckner faces up to 20 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 Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Sentenced to Prison for Role in Multiple RobberiesRead the Press Release
RICHMOND, Va. – A Chester man was sentenced today to 15 years for participating in the robbery of three convenience stores and the attempted robbery of another convenience store.
According to court documents, Devin VanGundy, 24, and his co-defendants were involved in a string of armed robberies and an attempted robbery at various gas stations and convenience stores located in the areas of Chesterfield County and Richmond during March 2018. In each of the robberies and attempted robbery, VanGundy provided the firearm for his accomplice to use, and acted as a getaway driver. The accomplice, in all the robberies, brandished VanGundy’s firearm, placing the store clerks in fear for their lives.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and MaryJo Thomas, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by United States District Judge John A. Gibney, Jr. Assistant U.S. Attorney Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-88.
Man Pleads Guilty to Role in Grocery Store Robbery SpreeRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to his role in a string of grocery store robberies during the Fall of 2018.
According to court documents, Keonte K. Yorkshire, aka Tae, 21, was a member of a six-man robbery squad that robbed three grocery stores across the region in the span of a week last Fall. Yorkshire served as an inside look-out for one robbery and an outside look-out for two others. The armed robberies occurred at a Food Lion in Chesapeake on Sept. 25, 2018, a Food Lion in Virginia Beach on Sept. 29, 2018, and a Harris Teeter in Virginia Beach on Oct. 3, 2018.
The teams included inside and outside look-outs, getaway drivers, and two gunmen. The teams used police scanners to monitor law enforcement activity, encrypted applications, and earpieces to communicate with one another. At each robbery, the gunmen demanded the managers open the grocery store safe. In the final robbery at a Harris Teeter in Virginia Beach, one of the gunmen shot the store manager.
Yorkshire pleaded guilty to conspiracy to commit armed robbery, armed robbery and possessing a firearm during a crime of violence. He faces a mandatory minimum sentence of 17 years and a maximum sentence of life when he is sentenced on May 6.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Division, James A. Cervera, Chief of Virginia Beach Police, and Kelvin L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys John F. Butler and Andrew C. Bosse are prosecuting the case.
This case was investigated by the FBI’s Tidewater Violent Crime Task Force, in partnership with the Virginia Beach and Chesapeake Police Departments.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-177-9.
Madison Township Man Pleads Guilty to Theft from the United StatesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 31, 2019, Timothy Scheitlin, age 43, of Madison Township, Pennsylvania, entered a guilty plea before U.S. District Court Judge Malachy E. Mannion to one count of theft of government funds.
According to United States Attorney David J. Freed, Scheitlin was employed at the Tobyhanna Army Depot from on or about January 2014 until February 2017, and part of Scheitlin’s job duties included collecting monies from vending machines. During the course of his employment, Scheitlin stole over $1,000 from the vending machines at the Tobyhanna Army Depot.
The case was investigated by the Army Criminal Investigation Division. Assistant U.S. Attorney Jenny P. Roberts 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. At the time of the sentencing hearing, the Court will determine the amount of loss to Tobyhanna Army Depot.
The maximum penalty under federal law for this offense is 10 years of 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.
# # #
Man from Tohatchi, N.m. Pleads Guilty to Kidnapping and Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Ryan Thompson, 32, of Tohatchi, N.M., pleaded guilty today in federal court to charges of kidnapping and aggravated sexual abuse in Indian Country.
According to court documents, Thompson, an enrolled member of the Navajo Nation, kidnapped a woman and child from a gas station in Gallup on November 15, 2017. He drove them to another location and forced the woman to drink alcohol. When Thompson briefly left the area, the woman tried to escape by driving way. Thompson stopped her, pulled her out of the car, and beat her.
Thompson sexually abused the woman in front of the child. He also threatened to kill the woman and child. Thompson held them in his car overnight before taking them to a home where they stayed another night. On November 17, 2017, Thompson stole property from another residence. At that time, the woman drove away in her car with the child. She encountered police a short time later. Emergency responders took her to the hospital for treatment of her injuries, including a broken nose.
At sentencing, Thompson faces from 15 to 20 years in prison. The Gallup Resident Agency of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
Man from Tohatchi, N.m. Pleads Guilty to KidnappingRead the Press Release
ALBUQUERQUE – Ryan Thompson, 32, of Tohatchi, N.M., pleaded guilty today in federal court to charges of kidnapping and aggravated sexual abuse in Indian Country.
According to court documents, Thompson, an enrolled member of the Navajo Nation, kidnapped a woman and child from a gas station in Gallup on November 15, 2017. He drove them to another location and forced the woman to drink alcohol. When Thompson briefly left the area, the woman tried to escape by driving way. Thompson stopped her, pulled her out of the car, and beat her.
Thompson sexually abused the woman in front of the child. He also threatened to kill the woman and child. Thompson held them in his car overnight before taking them to a home where they stayed another night. On November 17, 2017, Thompson stole property from another residence. At that time, the woman drove away in her car with the child. She encountered police a short time later. Emergency responders took her to the hospital for treatment of her injuries, including a broken nose.
At sentencing, Thompson faces from 15 to 20 years in prison. The Gallup Resident Agency of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
Luzerne County Man Sentenced to 15 Years’ Imprisonment for Receiving Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Portanova, age 28, of West Hazleton, Pennsylvania, was sentenced to 15 years’ imprisonment by Senior U.S. District Court Judge James M. Munley for receiving child pornography.
According to United States Attorney David J. Freed, Portanova previously admitted that he used his cell phone to receive images and videos of child pornography using a file-sharing network on the internet. Portanova committed the offense between August 2017 and October 30, 2017, in Luzerne County.
Portanova committed the offense after having been convicted of dissemination and possession of child pornography in Luzerne County in 2014.
Judge Munley also ordered Portanova to serve 10 years on supervised release following his prison sentence, pay a special assessment of $5,100, comply with the restrictions of the Sex Offender Registration and Notification Act, and receive sex offender treatment.
The investigation was conducted by Homeland Security Investigations and the Luzerne County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
# # #
Luzerne County Man Guilty of Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Wilson, age 25, of Hanover Township, Luzerne County, Pennsylvania, pleaded guilty on January 30, 2019, to distributing heroin and unlawfully possessing firearms in furtherance of drug trafficking before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, Wilson admitted to distributing heroin in Luzerne County for a five-to-six month time period in 2017, and to accepting firearms as payment for heroin and exchanging firearms with a heroin supplier between December 2016 and September 2017.
Judge Mannion ordered a presentence report to be completed. Sentencing in the case will be scheduled at a later date.
The charges stemmed from an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Kingston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine for using or possessing a firearm in connection with a drug trafficking offense. There is also a mandatory minimum sentence of five years’ imprisonment for the firearms offense. Wilson faces up to 20 years in prison for the drug offense. Under federal law, the sentence imposed for the firearms offense must run consecutive to any other sentence. 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.
# # #
Las Vegas Man Sentenced to 12 Years in Prison for Receipt of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today for receiving and distributing over 400 images and 22 videos of child pornography, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
Adam Burley, 26, was sentenced to 144 months in federal prison and lifetime supervised release by U.S. District Judge Kent J. Dawson. He previously pleaded guilty to receipt or distribution of child pornography.
In July 2016, Burley uploaded eight photos of child pornography from his cell phone to the website Chatango. Law enforcement determined the images were uploaded from Burley’s apartment. During the execution of a search warrant at his apartment, he admitted to law enforcement that he uploaded child pornography to the website and he received child pornography on his phone. A forensic examination of his phone revealed over 400 sexually explicit images and videos.
The case was investigated by the FBI. Assistant U.S. Attorney Christopher Burton prosecuted the case.
If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a report at www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
###
Lafayette felon sentenced to nearly 10 years in prison for possessing two firearmsRead the Press Release
LAFAYETTE, La. – Kenyatta Edmond, 39, of Lafayette, was sentenced on Monday to 110 months in prison by U.S. District Judge Dee D. Drell on one count of felon in possession of a firearm, U.S. Attorney David C. Joseph announced. The defendant was also sentenced to three years of supervised release.
According to the guilty plea, a concerned citizen contacted the Lafayette police on January 22, 2018 to report an unconscious man behind the wheel of a car at the intersection of Evangeline Thruway and Mudd Avenue. An officer approached the vehicle and saw Edmond slumped forward appearing to be asleep, and noticed a pistol in Edmond’s lap with his hand around the grip. When questioned, Edmond told the officer that he had a second firearm in the vehicle. A search of the vehicle revealed a Beretta Model PX4 Storm .40-caliber semi-automatic pistol and a Taurus Model Judge .410 gauge revolver. After further investigation, it was discovered that the revolver had been previously reported stolen and that Edmond has four prior felony convictions.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF’s) top enforcement and regulatory priority is to prevent and reduce violent crime involving firearms. The ATF carefully focuses its resources to ensure that their operations have the greatest impact on reducing firearms violence. The ATF works closely with the U.S. Attorney’s Office to collect evidence necessary to convict violent offenders that terrorize our communities and those who illegally supply them with guns.
The ATF Lafayette Field Office and the Lafayette Police Department investigated the case. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
KCK Woman Pleads Guilty in Mexican Methamphetamine ConspiracyRead the Press Release
KANSAS CITY, KAN. – A local woman pleaded guilty today to being part of a drug ring that distributed methamphetamine from Mexico in the Kansas City metro area, U.S. Attorney Stephen McAllister said.
Karen Ortega, 41, Kansas City, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine from premises in which children reside. In her plea, she admitted working out of her home in the 3000 block of North 34th Street in Kansas City, Kan., where she and her minor children lived. A search warrant at the residence turned up approximately 20 pounds of methamphetamine, 1.8 pounds of heroin and more than $230,000 in cash.
In her plea, she admitted federal investigators had her under surveillance when she met another conspirator in a Wal-Mart parking lot at 10824 Parallel Parkway and sold almost two pounds of methamphetamine for $4,500.
Sentencing is set for May 7. She faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Sheri Catania for their work on the case.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Charles E. Williams, 41, was sentenced by U.S. District Judge Roseann Ketchmark to 15 years in federal prison without parole. Williams was sentenced as an armed career criminal due to his prior felony convictions.
On March 20, 2018, Williams pleaded guilty to being a felon in possession of a firearm. Williams admitted that he was in possession of a loaded Norinco semi-automatic rifle on Aug. 7, 2015. Police officers had been called to the scene of a single-vehicle accident, which involved a Dodge Charger driven by Williams. When officers arrived, they were informed by members of the Kansas City Fire Department that Williams had been tossing items from the vehicle.
Williams refused to step away from the vehicle, and instead reached into the trunk and retrieved a red blanket, which he threw away from the vehicle. Officers ordered Williams to the ground; as they attempted to handcuff him, Williams became combative and resisted arrested. An officer utilized his Taser. At one point, Williams was able to stand up and began physically assaulting an officer by pulling at his traffic vest and kicking him several times in the leg. Several members of the fire department came to the aid of the officers. Williams was eventually arrested and placed in handcuffs.
The Norinco rifle was found inside the red blanket that Williams had taken from the trunk. When officers searched Williams, they found a small baggy that contained 1.13 grams of cocaine in his right pant pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has prior felony convictions for murder, armed criminal action, trafficking and three prior felony convictions for sale of a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Brad K. Kavanaugh and Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department Warns Taxpayers to Avoid Unscrupulous Tax Return PreparersRead the Press Release
As tax filing season begins, the Department of Justice warns taxpayers to beware of unscrupulous tax return preparers. The Department of Justice applies both civil and criminal tools at its disposal to shut down illegal tax return preparation activity. Taxpayers should always remain wary of tax return preparers who claim they can obtain larger refunds than others or engage in other unscrupulous practices.
While most tax return preparers are professional and honest, some prepare returns with false information in order to improperly boost a taxpayer’s refund or reduce their liability or to increase business and preparation fees. But, under the law, taxpayers are responsible for what is reported on their returns. When the IRS uncovers the falsehoods, the taxpayer can face penalties and interest and, if circumstances warrant, criminal prosecution.
“Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “The Justice Department is committed to working with our partners at the Internal Revenue Service to protect the law-abiding American public and the treasury by stopping this fraud.”
Every year, the Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, files dozens of civil actions throughout the United States seeking court orders to shut down tax return preparers who allegedly prepared false tax returns, and to punish dishonest tax return preparers for their fraudulent activities. When the evidence supports criminal enforcement action, the Department of Justice and U.S. Attorney’s offices pursue criminal prosecutions of tax return preparers.
In 2019, the Justice Department has already obtained several injunctions barring individuals from filing returns for others, and filed actions against numerous others:
- On Jan. 4, 2019, a federal court in Indianapolis, Indiana, permanently enjoined Antonio Chappell and G & A Tax Service LLC, from preparing federal tax returns for others. The court noted that the defendants had prepared tax returns with a wide range of scams, including falsifying reported income or losses to wrongfully increase or claim the Earned Income Tax Credit, fabricating education expenses to obtain the American Opportunity Credit for certain educational expenses; misrepresenting a taxpayer’s filing status; and reporting non-qualifying dependents to take advantage of the Additional Child Tax Credit.
- On Jan. 7, 2019, a federal court in Orlando, Florida, entered a preliminary injunction barring Erotida Harden, Michael Harden, Aida Cortes, Yahaira Claudio, Tamika Robenson, Natasha Williams, and Certified Taxes LLC, from acting as tax return preparers and directing them to immediately close all tax return preparation stores that they currently own directly or through any entity and not to reopen them without a court order.
- On Jan. 16, 2019, a federal court in Orlando, Florida, entered a preliminary injunction barring Marcgenson Marc, Tiana Character, LeNorris LaMoute, Dosuld Pierre, Shirleen Thales, Advanced Tax Services Inc., Genson Financial Group LLC, and Character Financial Solutions LLC from acting as tax return preparers and directing them to immediately close all tax return preparation stores that they currently own directly or through any entity and not to reopen them without a court order.
Examples of some recent criminal convictions obtained by the Tax Division include:
- On Jan. 28, 2019, a Minneapolis-based tax return preparer was sentenced to serve 121 months in prison for managing and directing a fraudulent return-preparation business, which prepared returns that reported false dependents, fake business income and losses, inflated deductions, inflated credits, and false filing statuses, in order to get customers inflated refunds.
- On Nov. 14, 2018, a Las Vegas, Nevada, tax return preparer was sentenced to 37 months in prison for aiding and assisting in the filing of false tax returns that included multiple false items, including charitable contributions, capital loss deductions, energy tax credits, and unreimbursed employee expenses—such as business meals and transportation expenses.
- On Sept. 13, 2018, a resident of Winton-Salem, North Carolina, who was licensed as an attorney in Georgia, was sentenced to 13 months in prison for aiding and assisting in the preparation of fraudulent tax returns.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
In addition, when selecting a tax return preparer:
- Be wary of tax return preparers who claim they can obtain larger refunds than others can.
- Avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of your refund into their financial accounts.
- Ensure you use a preparer with a preparer tax identification number (PTIN). Paid tax return preparers must have a PTIN to prepare all or substantially all of a tax return.
- Use a reputable tax professional, who enters their PTIN on your tax return, signs the tax return, and provides you a copy of the return (as required).
- Consider whether the individual or firm will be around for months or years after filing the return to answer questions about the preparation of the tax return.
- Never sign a blank tax form.
- Check the person’s credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collections, and appeals.
The IRS has some information on its website about selecting a return preparer and has launched a free directory of federal tax preparers and a list of tips for choosing a tax preparer.
Justice Department Warns Taxpayers to Avoid Unscrupulous Tax Return PreparersRead the Press Release
WASHINGTON – As tax filing season begins, the Department of Justice warns taxpayers to beware of unscrupulous tax return preparers. The Department of Justice applies both civil and criminal tools at its disposal to shut down illegal tax return preparation activity. Taxpayers should always remain wary of tax return preparers who claim they can obtain larger refunds than others or engage in other unscrupulous practices.
While most tax return preparers are professional and honest, some prepare returns with false information in order to improperly boost a taxpayer’s refund or reduce their liability or to increase business and preparation fees. But, under the law, taxpayers are responsible for what is reported on their returns. When the IRS uncovers the falsehoods, the taxpayer can face penalties and interest and, if circumstances warrant, criminal prosecution.
“Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “The Justice Department is committed to working with our partners at the Internal Revenue Service to protect the law-abiding American public and the treasury by stopping this fraud.”
Every year, the Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, files dozens of civil actions throughout the United States seeking court orders to shut down tax return preparers who allegedly prepared false tax returns, and to punish dishonest tax return preparers for their fraudulent activities. When the evidence supports criminal enforcement action, the Department of Justice and U.S. Attorney’s offices pursue criminal prosecutions of tax return preparers.
In 2019, the Justice Department has already obtained several injunctions barring individuals from filing returns for others, and filed actions against numerous others:
- On Jan. 4, 2019, a federal court in Indianapolis, Indiana, permanently enjoined Antonio Chappell and G & A Tax Service LLC, from preparing federal tax returns for others. The court noted that the defendants had prepared tax returns with a wide range of scams, including falsifying reported income or losses to wrongfully increase or claim the Earned Income Tax Credit, fabricating education expenses to obtain the American Opportunity Credit for certain educational expenses; misrepresenting a taxpayer’s filing status; and reporting non-qualifying dependents to take advantage of the Additional Child Tax Credit.
- On Jan. 7, 2019, a federal court in Orlando, Florida, entered a preliminary injunction barring Erotida Harden, Michael Harden, Aida Cortes, Yahaira Claudio, Tamika Robenson, Natasha Williams, and Certified Taxes LLC, from acting as tax return preparers and directing them to immediately close all tax return preparation stores that they currently own directly or through any entity and not to reopen them without a court order.
- On Jan. 16, 2019, a federal court in Orlando, Florida, entered a preliminary injunction barring Marcgenson Marc, Tiana Character, LeNorris LaMoute, Dosuld Pierre, Shirleen Thales, Advanced Tax Services Inc., Genson Financial Group LLC, and Character Financial Solutions LLC from acting as tax return preparers and directing them to immediately close all tax return preparation stores that they currently own directly or through any entity and not to reopen them without a court order.
Examples of some recent criminal convictions obtained by the Tax Division include:
- On Jan. 28, 2019, a Minneapolis-based tax return preparer was sentenced to serve 121 months in prison for managing and directing a fraudulent return-preparation business, which prepared returns that reported false dependents, fake business income and losses, inflated deductions, inflated credits, and false filing statuses, in order to get customers inflated refunds.
- On Nov. 14, 2018, a Las Vegas, Nevada, tax return preparer was sentenced to 37 months in prison for aiding and assisting in the filing of false tax returns that included multiple false items, including charitable contributions, capital loss deductions, energy tax credits, and unreimbursed employee expenses—such as business meals and transportation expenses.
- On Sept. 13, 2018, a resident of Winton-Salem, North Carolina, who was licensed as an attorney in Georgia, was sentenced to 13 months in prison for aiding and assisting in the preparation of fraudulent tax returns.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
In addition, when selecting a tax return preparer:
- Be wary of tax return preparers who claim they can obtain larger refunds than others can.
- Avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of your refund into their financial accounts.
- Ensure you use a preparer with a preparer tax identification number (PTIN). Paid tax return preparers must have a PTIN to prepare all or substantially all of a tax return.
- Use a reputable tax professional, who enters their PTIN on your tax return, signs the tax return, and provides you a copy of the return (as required).
- Consider whether the individual or firm will be around for months or years after filing the return to answer questions about the preparation of the tax return.
- Never sign a blank tax form.
- Check the person’s credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collections, and appeals.
The IRS has some information on its website about selecting a return preparer and has launched a free directory of federal tax preparers and a list of tips for choosing a tax preparer.
# # #
If you have questions, please use the contacts in the message or call the Office of Public Affairs at 202-514-2007.
Investment Advisor Sentenced for Operating $6.6 Million Ponzi SchemeRead the Press Release
NORFOLK, Va. – A Chesterfield man was sentenced today to 13 years in prison for mail fraud and engaging in a monetary transaction in criminally derived property.
According to court documents, Edward Lee Moody, Jr, 47, was a registered investment adviser and the sole owner and operator of CM Capital Management LLC, an investment firm with its principal office located in Virginia Beach. Moody solicited investors on the basis of his representation that he would profitably invest their assets in securities on their behalf and manage those investments on an ongoing basis. In reality, he ran a Ponzi scheme over a 13 year period. He solicited and collected approximately $6.6 million from 55 investors, at least 13 of whom were elderly persons who liquidated assets from their existing, legitimate retirement accounts in order to provide funds to him that they expected he would invest on their behalf.
In most instances, Moody did not manage the accounts of the investors or buy or sell securities on their behalf, and did not even open individual brokerage accounts for them. Instead, he diverted investor monies for his own personal benefit and to enrich himself, using at least $1.4 million for business expenses, to purchase a home, make car loan payments, shop, travel to Las Vegas and other destinations. Moody also used approximately $885,000 of investor monies to buy and sell securities on his own behalf. He perpetuated the scheme by using approximately $1.8 million that he received from new investors to make periodic lulling payments to earlier investors, and he provided investors with fraudulent monthly account statements that falsely indicated that the investors’ funds had been invested in securities and had earned returns.
In addition to the prison sentence, Moody was ordered to pay over $4.8 million in restitution to his victims.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-154.
Illinois Man Sentenced to 5 Years in Prison for Identity Theft and Unemployment Benefits Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICHARD M. LACH, 32, of Richton Park, Illinois, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for operating a scheme to defraud state unemployment insurance programs in Connecticut and 37 other states.
According to court documents and statements made in court, Lach fraudulently filed claims with the Connecticut Department of Labor for unemployment benefits in the names of identity theft victims, using their names, dates of birth and social security numbers. Lach directed that the unemployment benefits be directly deposited to Green Dot debit cards that he opened in the names of other identity theft victims. For claims that were approved, the unemployment benefits were deposited to the Green Dot cards, and Lach withdrew the funds or otherwise spent the funds for his own personal use and benefit.
In addition to fraudulently obtaining unemployment benefits from the Connecticut Department of Labor, Lach fraudulently filed or attempted to file for unemployment benefits, in the names of identity theft victims, from unemployment agencies in Alabama, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington DC, Wisconsin, and West Virginia.
In some cases, Lach purchased the personal information of identity theft victims through online websites, including a website that sold the information for $1, in bitcoins, per identity. Lach shared his account on that website. He also shared his Green Dot cards, and several email accounts he used, with other individuals so that they also could file fraudulent claims for unemployment benefits.
In total, Lach and others purchased identity information for approximately 845 identity theft victims through LACH’s account on the website that sold the information. Between February 2017 and January 2018, Lach and others filed approximately 380 fraudulent claims for unemployment benefits in the names of identity theft victims. If the state agencies had approved and paid benefits on all 380 claims, the total loss from this scheme would have exceeded $3.8 million. However, the state agencies approved and paid benefits on only 42 of the claims, resulting in an actual loss of $54,006.
Lach also fraudulently purchased cars and obtained car loans in the names of two identity theft victims. In September 2017, he fraudulently purchased a car for approximately $59,000 from a dealership in Florida and had it shipped to Illinois. Lach provided copies of a fake driver’s license and utility bill in the name of in an identity theft victim in order to obtain a car loan to purchase the vehicle. Similarly, in January 2018, Lach fraudulently purchased a car for approximately $83,000 from a dealership in Tennessee. Again, LACH provided copies of a fake driver’s license, utility bill, W-2, and paystub in the name of an identity theft victim. The cars were recovered and returned to the dealerships.
Judge Meyer ordered Lach to pay restitution in the total amount of $65,866.09 to the victim states and the two car dealerships.
Lach has been detained since his arrest on February 2, 2018. On August 30, 2018, he pleaded guilty to one count of wire fraud and one count of aggravated identity theft.
This matter was investigated by the U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor, New York State Department of Labor, State of New Jersey Department of Labor and Workforce Development, and Matteson (Illinois) Police Department, with assistance from the state unemployment agencies in the other states.
This case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Illinois Accountant Charged with Fraud for Allegedly Misappropriating More Than $65 Million from Individuals and Financial InstitutionsRead the Press Release
CHICAGO — An Illinois accountant was charged today with criminal fraud for allegedly misappropriating more than $65 million from individuals and financial institutions.
SULTAN ISSA was a certified public accountant and the Chief Financial Officer of a group of partnerships, corporations and trusts owned by a Chicago-area family. From 2007 to 2017, Issa embezzled at least $55 million of the family’s assets and solicited at least another $8.8 million from individuals in his personal capacity, claiming he would invest their money in legitimate opportunities, including a luxury auto dealership Issa owned in Burr Ridge, according to a criminal information filed in U.S. District Court in Chicago. Issa used tens of millions of dollars in fraud proceeds to cover personal expenses and to secure fraudulent loans from financial institutions totaling at least $83 million to acquire, among other things, 25 residential properties in Illinois, Montana, Michigan, and Cabo San Lucas, Mexico, two private aircraft, four yachts, approximately 60 firearms, and assorted watches, jewelry and memorabilia, the information states. He used another $15 million in fraudulently obtained funds to pay expenses related to the auto dealership, including the purchase of a showroom, the acquisition of luxury cars, and the salaries of employees, the information states.
The information charges Issa, 45, of Hinsdale, with one count of wire fraud affecting a financial institution. Arraignment in federal court in Chicago has not yet been scheduled.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Kathryn E. Malizia.
Issa attempted to conceal the scheme by providing financial institutions with fraudulent loan documents and forging authorizations to gain control of funds belonging to the family-owned group, the information states. Issa also created false account statements and made Ponzi-type payments to individual investors, the information states.
The public is reminded that a charge is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud affecting a financial institution carries a maximum sentence of 30 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Hartford Felon Sentenced to 2 Years in Prison for Possessing Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRANDON SPENCE, also known as “Spun,” 31, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded handgun.
According to court documents and statements made in court, on June 12, 2018, Hartford Police received information that Spence was in possession of a firearm on Enfield Street. When officers encountered Spence on Enfield Street, Spence fled on foot. During the pursuit, Spence discarded a Bryco Arms, model T380, .380 caliber firearm, loaded with seven rounds of ammunition. The firearm was recovered, and Spence was arrested after officers found him hiding under the porch of a house on Greenfield Street.
Spence’s criminal history includes multiple convictions related to the illegal possession of firearms.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On October 29, 2018, Spence pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
This case was investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Hancock County man indicted on drug and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Lavel L. Hicks, of Weirton, West Virgnia, was indicted by a federal grand today on drug and firearms charges, United States Attorney Bill Powell announced.
Hicks, age 43, was indicted on two counts of “Distribution of Cocaine Base,” four counts of “Distribution of Cocaine Hydrochloride,” and one count of “Unlawful Possession of a Firearm.” Hicks is accused of distributing the drugs in November and December 2017 and December 2018 in Brook and Hancock Counties. Hicks, having previously been convicted or murder in the second degree in Brooke County Circuit Court, is also accused of possessing a 9mm pistol.
Hicks faces up to 20 years incarceration and a fine of up to $1,000,000 for each drug count, and he faces up to 10 years incarceration and a fine of up to $250,000 for the firearms 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 Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hancock-Brooke-Weirton 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.
Gary Man Sentenced to 74 Months in PrisonRead the Press Release
HAMMOND- Francisco Rivera, 29, of Gary, Indiana, was sentenced before District Court Judge Philip P. Simon on his plea to distribution of cocaine and possession of a firearm in furtherance of a drug crime, announced U.S. Attorney Kirsch.
Cruz received a sentence of 74 months in prison followed by 3 years of supervised release.
According to documents filed in this case, DEA agents used a confidential source to purchase cocaine from Francisco Rivera at his Lake Station residence on April 3, 2017. A federal search warrant for that residence was executed that same day. Within a locked room inside the residence law enforcement found over a kilogram of cocaine, 30 kilograms of marijuana, and four firearms including an assault rifle that had previously been reported stolen.
This case was investigated by the DEA HIDTA Task Force with the assistance of the Hobart Police Department and was prosecuted by Assistant United States Attorney Thomas M. McGrath.
###
Fresno Man Sentenced for CarjackingRead the Press Release
FRESNO, Calif. — Nicholas Lobkowski, 39, of Fresno, was sentenced Monday by U.S. District Judge Lawrence J. O’Neill to seven years and eight months in prison for carjacking, U.S. Attorney McGregor W. Scott announced.
According to court documents, on September 28, 2017, Lobkowski carjacked a victim at knifepoint. Lobkowski fled in the vehicle and was located by police. Lobkowski drove recklessly, proceeded through a stop sign without stopping, and crashed into two vehicles, causing injuries to several of the occupants.
This case was the product of an investigation by Homeland Security Investigations and Fresno Police Department. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Louisville Armored Truck Driver Indicted by Federal Grand JuryRead the Press Release
LOUISVILLE, Ky. – Former GardaWorld armored truck driver Mark Nicholas Espinosa has been indicted by a federal grand jury with five charges related to the theft of more than $900,000 from the vehicle, announced United States Attorney Russell M. Coleman.
“Mr. Espinosa’s charged conduct demonstrates the same flawed assumption found in Louisville’s violent trigger-pullers and narcotics peddlers, that the rule of law simply does not apply to him/them,” stated U.S. Attorney Russell Coleman. “As in this case, they should expect a wake-up call in 2019. LMPD and the FBI are to be commended for their fine police work here.”
Espinosa is charged with theft from a common carrier, bank robbery, interstate transportation of stolen money, monetary transactions involving stolen money, and money laundering.
According to the five count indictment: On December 5, 2018, Espinosa stole more than $900,000 from a GardaWorld armored truck, including more than $1,000 in cash from the PNC Bank. Espinosa transported the $900,000 in stolen cash and fled to Connecticut, where he was found with $850,000 in cash on January 30, 2019.
On or about December 10, 2018, in Wilkes-Barre, Pennsylvania, Espinosa, using the name Sam Smith, purchased a 2018 Chevrolet Malibu for $21,193.28 in cash, using money stolen from the armored truck.
On December 21, 2018, in Middlesex County, Connecticut, Espinosa deposited $3,300 into a Citizens Bank account under the name Sam Smith, using money stolen from the GardaWorld truck.
Espinosa faces no more than 10 years per count for theft from a common carrier, bank robbery, interstate transportation of stolen money, monetary transactions involving stolen money and no more than 20 years for money laundering, in addition to a term of supervised release.
Assistant United States Attorneys David Weiser and Rob Bonar are prosecuting the case which is being investigated by the Federal Bureau of Investigation and the Louisville Metro Police Department.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Former Hadley Police Officer Found Guilty of Using Excessive Force Against ArresteeRead the Press Release
BOSTON – A former Hadley Police Department Officer was found guilty today of using unreasonable force during an arrest and then falsifying a police report of the incident.
Christopher M. Roeder, 49, of Agawam, was convicted by a federal jury after a seven-day trial of one count of deprivation of rights under color of law and one count of falsification of a document.
Evidence presented at trial established that, on April 3, 2017, Roeder struck an arrestee in the face without legal justification, while the arrestee was seated on a bench in the Hadley Police Department booking area. The strike fractured the arrestee’s nose in multiple places and required plastic surgery to repair. Roeder subsequently attempted to obstruct the investigation into his assault of the arrestee by falsifying his police report describing the incident.
“Police officers put themselves at risk for the public good every day. The defendant, however, diminished the sacrifices of his fellow officers by violating the constitutional rights of an arrestee,” said United States Attorney Andrew E. Lelling. “Law enforcement officers are rightfully held to a higher standard and, on the very rare occasions when officers refuse to meet that standard, they will be held to account.”
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said Assistant Attorney General Eric Dreiband. “When they abuse their power to violate those very laws, they not only deprive citizens of their individual rights, but they also compromise the public’s trust in law enforcement. The Department of Justice will continue to hold officers accountable for their actions.”
“With today’s conviction, Mr. Roeder finds himself on the opposite end of the very laws he was sworn to uphold. Wearing a badge is a privilege and honor that most law enforcement officers take seriously. It’s not a license to corrupt the administration of justice, but Mr. Roeder clearly forgot that when he broke a man’s nose and tried to cover it up by falsifying his police report. His actions undermined the hard work of the entire law enforcement community,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The charge of deprivation of civil rights under color of law resulting in injury provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of falsifying a police report provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; Assistant Attorney General Dreiband; and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office and Trial Attorney Timothy Visser of the Department of Justice’s Civil Rights Division are prosecuting the case.
Former Hadley Police Officer Found Guilty of Using Excessive Force Against ArresteeRead the Press Release
A former Hadley Police Department Officer was found guilty today of using unreasonable force during an arrest and then falsifying a police report of the incident.
Christopher M. Roeder, 49, of Agawam, was convicted by a federal jury after a seven-day trial of one count of deprivation of rights under color of law and one count of falsification of a document.
Evidence presented at trial established that, on April 3, 2017, Roeder struck an arrestee in the face without legal justification, while the arrestee was seated on a bench in the Hadley Police Department booking area. The strike fractured the arrestee’s nose in multiple places and required plastic surgery to repair.
It was further established that Roeder subsequently attempted to obstruct the investigation into his assault of the arrestee by falsifying his police report describing the incident.
“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said Assistant Attorney General Eric Dreiband. “When they abuse their power to violate those very laws, they not only deprive citizens of their individual rights, but they also compromise the public’s trust in law enforcement. The Department of Justice will continue to hold officers accountable for their actions.”
“Police officers put themselves at risk for the public good every day. The defendant, however, diminished the sacrifices of his fellow officers by violating the constitutional rights of an arrestee,” said United States Attorney Andrew E. Lelling. “Law enforcement officers are rightfully held to a higher standard and, on the very rare occasions when officers refuse to meet that standard, they will be held to account.”
“With today’s conviction, Mr. Roeder finds himself on the opposite end of the very laws he was sworn to uphold. Wearing a badge is a privilege and honor that most law enforcement officers take seriously. It’s not a license to corrupt the administration of justice, but Mr. Roeder clearly forgot that when he broke a man’s nose and tried to cover it up by falsifying his police report. His actions undermined the hard work of the entire law enforcement community,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The charge of deprivation of civil rights under color of law resulting in injury provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of falsifying a police report provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division; United States Attorney Andrew E. Lelling; and Joseph Bonavolonta, Special Agent in Charge of the FBI, Boston Field Division, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office and Trial Attorney Timothy Visser of the Department of Justice’s Civil Rights Division are prosecuting the case.
Former Correctional Officer Sentenced to Prison for Sexting and Propositioning Teenaged GirlRead the Press Release
SACRAMENTO, Calif. — Timothy Holt, 27, formerly of Susanville, was sentenced today by U.S. District Judge John A. Mendez to 21 months in prison and three years of supervised release for transportation of obscene matters, U.S. Attorney McGregor W. Scott announced.
According to court documents, the father of a teenaged girl reported that Holt, as an adult correctional officer, had been sexually propositioning his daughter over an internet messaging service. Law enforcement officers took over the girl’s messaging account. Posing as the teenaged girl, officers continued to chat with Holt and agreed to meet him. Officers arrested Holt when he arrived at the meet location.
This case was the product of an investigation by the FBI and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Matthew Segal prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Blackfeet Tribal chairman arraigned on theft, fraud chargesRead the Press Release
Great Falls – Former Blackfeet Tribal Chairman Willie Andrew Sharp, who is accused of stealing federal money from the Head Start Program, pleaded not guilty to charges in an indictment today, U.S. Attorney Kurt Alme said.
Sharp, 65, of Browning, pleaded not guilty to theft from an Indian tribal government receiving federal funding and to wire fraud as charged in an indictment. The indictment is merely an accusation. Sharp is presumed innocent until proven guilty.
Sharp appeared for arraignment before U.S. Magistrate Judge John T. Johnston in Great Falls. Johnston released Sharp pending trial.
The case is assigned to U.S. District Judge Brian M. Morris.
Sharp faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the most serious charge. The indictment also is seeking a criminal forfeiture money judgment of $38,711 from Sharp.
The indictment alleges that Sharp, while chairman of the Blackfeet Tribe, ultimately oversaw the Head Start Program and approved and ensured others approved overtime at the Blackfeet Head Start Program, knowing that the overtime was false. In total, individuals at the Blackfeet Head Start Program, including Sharp’s wife, Denise L. Sharp, claimed more than 7,800 hours in overtime and received more than $232,000 in federal funds from the program in a 15-month time period, starting in about April 2013. Denise Sharp pleaded guilty earlier to charges in the case and is awaiting sentencing.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI.
Pacer case reference. 19-03.
Progress on the case can be monitored through the U.S. District Court calendar and the PACER system. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Former Army colonel, wife sentenced to prison for roles in Fort Gordon fraud, kickback schemeRead the Press Release
AUGUSTA, Ga: A former active-duty U.S. Army colonel and his wife have been sentenced to federal prison and fined more than $200,000 for their roles in steering government contracts to co-conspirators in return for cash.
Anthony Roper, 57, of Augusta, pled guilty to Procurement Integrity Fraud and was sentenced to 60 months in prison and fined $200,000 by Senior U.S. District Court Judge Dudley H. Bowen. He also will be subject to three years of supervised release after his sentence is completed, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. There is no parole in the federal prison system. Roper’s wife, Audra Roper, 51, pled guilty to Accessory After the Fact and was sentenced to 28 days in prison, fined $10,000 and placed on five years of probation.
According to evidence presented during guilty pleas and sentencing hearings, Anthony Roper, then in active-duty status at Fort Gordon, accepted bribes from Calvin Devear Lawyer, 60, a retired U.S. Army colonel, to steer Army contracts worth more than $20 million to Lawyer’s company, the CREC group. Based on false representations from Lawyer and Dwayne Oswald Fulton, 58, then an employee of a defense contractor, CREC group had been awarded Small Business Administration (SBA) status as a small, disadvantaged business, and the company used that status to gain competitive advantage in contracting.
The conspiracy also included the creation of fraudulent documents in an attempt to cover up bribes to Anthony Roper after law enforcement agencies discovered the scheme. Lawyer previously pled guilty in the case and was sentenced to 60 months in prison. As part of his sentence, Lawyer also paid a $3 million personal money judgment and a $2 million civil penalty.
The cases were investigated by the United States Army Criminal Investigations Division (CID), the Defense Criminal Investigative Service (DCIS), the Small Business Administration’s Office of Inspector General, and the United States Attorney’s Office.
“Taxpayers deserve above-board behavior from those who do business with the federal government, especially with the military,’” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “It is particularly disappointing when members of the armed forces violate their oaths of office to steal from the public, and our office will prosecute those crimes vigorously.”
“These sentencings are the result of the Defense Criminal Investigative Service’s commitment to ensuring that Department of Defense programs and missions are protected from fraud throughout the procurement process,” said Special Agent in Charge John F. Khin, DCIS Southeast Field Office. “Through joint investigations with our law enforcement partners, DCIS aggressively pursues criminal prosecutions and all available remedies to hold violators accountable for their fraudulent schemes.”
“These sentencings are proof of the great work our agents, and our law enforcement partners, do on a daily basis,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “These defendants used their business to line their pockets, ripping off taxpayer dollars. The MPFU, along with our law enforcement partners, will continue to identify, investigate those who choose to exploit federal contracts and the people these programs serve.”
SBA’s General Counsel Chris Pilkerton said, “The resolution of this matter clearly demonstrates the commitment of federal agencies to discover and prosecute procurement fraud undertaken by those seeking to obtain illicit financial benefit through abuse of small business contracting programs. SBA will continue to work closely with federal law enforcement agencies to ensure that the contracting opportunities offered by SBA programs are available solely to businesses entitled to participate in those programs.”
Assistant U.S. Attorney Brian T. Rafferty prosecuted the case on behalf of the United States.
Five Individuals Indicted for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that William Terron, age 35, of Reading, Francheska Quinones, age 26, of Reading, Amanda Boyle, age 36, of Sweet Valley, Rudolph Ford, age 30, of Olyphant, and Adam Holcomb, age 35, of Shickshinny, Pennsylvania were indicted on December 11, 2018, by a federal grand jury for conspiring to distribute methamphetamine, heroin and cocaine in Northeastern Pennsylvania. The indictment was unsealed following the arrests of the defendants.
According to United States Attorney David J. Freed, the indictment alleges that defendants conspired to distribute more than 500 grams of methamphetamine, more than 100 grams of heroin, and more than 500 grams of cocaine in Schuylkill, Luzerne and Lackawanna Counties between January 2017 and the present. One hundred grams of heroin is the equivalent of approximately 4,000 individual doses of heroin.
The matter was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 for the charge under federal law is up to life in prison, a term of supervised release following imprisonment, and a $10,000,000 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.
# # #
Final Members of East Alabama Drug Trafficking Organization SentencedRead the Press Release
Montgomery, Alabama – The final three members of a drug trafficking organization based in Lee County were sentenced in federal court last week, announced United States Attorney Louis V. Franklin, Sr., and Acting Assistant Special Agent in Charge Andy Langan with the Drug Enforcement Administration (DEA). Marquis Lanez Miller, Lester Stephen Young, and Worldly Dieago Holstick were sentenced last week, bringing the total number of organization members sentenced in federal court to nineteen.
- Alfred Lorenzo Cole – 37 years old, Santa Rosa, California; 168 months’ imprisonment;
- Sakeya Monique Donaldson, 39 years old, Atlanta, Georgia; 26 months’ imprisonment;
- Leanne Grimmett, 32 years old, Auburn, Alabama; 12 months and a day imprisonment;
- James Lee Hamilton, 41 years old, Santa Rosa, California; 48 months’ imprisonment;
- Jermichael Lamar Hart, 32 years old, Auburn, Alabama; 120 months’ imprisonment;
- Worldly Dieago Holstick – 36 years old, Auburn, Alabama; 420 months’ imprisonment;
- Mackenzie Leigh Keith, 24 years old, Auburn, Alabama; 3 years’ probation;
- Tyesha Lanise Lockhart – 21 years old, Auburn, Alabama; 12 months and a day imprisonment;
- John Willie Maddox, Jr. - 28 years old, Auburn, Alabama; 170 months’ imprisonment;
- Phillip Maddox; 41 years old, Auburn, Alabama; 60 months’ imprisonment;
- James Earl McIntyre, 29 years old, Montgomery, Alabama; 24 months’ imprisonment;
- Marquis Lanez Miller – 37 years old, Auburn, Alabama; 81 months’ imprisonment;
- Tyquavious Roequan Mitchell, 20 years old, Opelika, Alabama; 36 months’ imprisonment;
- Jamarcus Deandre Pettus, 34 years old, Opelika, Alabama; 120 months’ imprisonment;
- Eric Kendall Smith, 26 years old, Opelika, Alabama; 120 months’ imprisonment;
- Timothy Lamar Spinks, 43 years old, Auburn, Alabama; 180 months’ imprisonment;
- Erin Kristen Turner – 24 years old, Auburn, Alabama; 6 months’ imprisonment;
- Lateasha Lashun Williams, 31 years old, Auburn, Alabama; 20 months’ imprisonment; and
- Lester Stephen Young, 35 years old, Auburn, Alabama; 33 months’ imprisonment.
Each of the defendants previously entered guilty pleas to various drug, gun, and money laundering offenses, including four who did so after a jury trial had commenced. According to witnesses who testified during the trial and the sentencing hearings, Worldly Holstick was the leader of the drug trafficking organization which stretched from Alabama and Georgia to California. The investigation began after an 11-year-old child was shot while sitting in a vehicle outside one of Holstick’s residences in the Orchard Way trailer park in Auburn, Alabama on September 16, 2016. During the ensuing investigation, officers seized the DVR system located at the residence, which contained video of the shooting as well as Holstick and other members of the conspiracy possessing cocaine, marijuana, and various firearms.An additional fifteen defendants were prosecuted in state court by the Lee County District Attorney’s Office.
In the mid-1990s, Worldly Holstick’s father, Lester Holstick, along with five of Lester Holstick’s siblings (Anthony, Mack, Betty Jean, Rochester, and Curtis) were convicted in federal court on drug trafficking charges. Lester Holstick was sentenced to 20 years’ imprisonment. Mack Holstick was sentenced to 30 years’ imprisonment.
"These sentencings are the result of the hard work and dedication of multiple agencies and will strike a severe blow to an organization that was bringing dangerous drugs and violence into our communities," said U.S. Attorney Franklin. "Too often, multiple generations participate in the drug trafficking trade and society is left to deal with this vicious cycle. My office will continue to work with all of our law enforcement partners to identify and dismantle these drug trafficking organizations.”
“This was a huge impact investigation for the Auburn and Lee County communities,” stated Acting ASAC Langan. “It shines a spotlight on the great things that are accomplished when Federal, State, and Local Law Enforcement partners work together with their prosecuting counterparts toward a common goal. These sentences should send the message to everyone involved in the illicit drug trade in the State of Alabama that we will bring you to justice and you will be held accountable for your crimes.”
These cases were investigated by the following agencies: DEA – Montgomery Resident Office, Auburn Police Department, Eufaula Police Department, Prattville Police Department, Alabama Attorney General’s Office, Alabama Law Enforcement Agency, Alabama HIDTA Task Force, Alabama National Guard, Autauga County Sheriff’s Office, Central Alabama Drug Task Force (CADTF), Elmore County Sheriff’s Office, Millbrook Police Department, Montgomery County Sheriff’s Office, Montgomery Police Department, Lee County Sheriff’s Office, Lee County District Attorney’s Office, Opelika Police Department, Troy Police Department, and the United States Marshals.
The federal case was prosecuted by Assistant United States Attorneys Kevin Davidson, Josh Wendell, and Curtis Ivy.
Federal Jury Convicts in Multi-Million-Dollar Oil and Gas FraudRead the Press Release
OKLAHOMA CITY – A jury has convicted JUSTIN LANE FOUST, 42, of Sulphur, Oklahoma, of wire fraud, money laundering, and aggravated identity theft in connection with fraud against Chesapeake Energy, announced Robert J. Troester of the U.S. Attorney’s Office.
According to an 11-count indictment filed on January 16, 2018, Foust was employed by Chesapeake Operating, Inc., a wholly owned subsidiary of Chesapeake Energy Corporation, from April 2002 until September 2011. In July 2011, Foust formed Platinum Express, LLC, which became an approved vendor for Chesapeake Operating in October of that year. The indictment alleged that from October 2011 until July 2014, Chesapeake Operating contracted with Platinum Express primarily to transport waste water to disposal facilities in western Oklahoma.
Trial began on January 28, 2019. Over the course of six trial days, the evidence showed Foust defrauded Chesapeake Operating by causing Platinum Express to submit false invoices for services it did not perform. In particular, he created fraudulent work tickets for steam cleaning, dirt berm work, plating tanks, hauling rock, repairing fence, supplying sand separators, and other services. He generated many fraudulent invoices for amounts just under $5,000, which he knew from his prior work with Chesapeake Operating required a lower level of approval for processing and payment. The trial evidence established he forged the signature and employee identification number of certain Chesapeake Operating employees to ensure Chesapeake Operating’s accounting department would process the invoices. He further caused these work tickets and invoices to be submitted through interstate wire communications to Oildex, the Denver, Colorado, company that processed the claims on behalf of Chesapeake Operating.
Alleging eight counts of wire fraud, the indictment stated Foust was responsible for over 1,100 fraudulent invoices, which generated over $4.3 million in Chesapeake Operating payments to which Platinum Express was not entitled. Foust was also charged with two counts of aggravated identity theft based on his alleged use of the names and employee identification numbers of other people without their consent. Finally, he was charged with one count of laundering money by transferring $43,857.09 to pay for Platinum Express payroll, after at least $10,000 of that transfer had been derived from wire fraud.
Today the jury returned guilty verdicts on six counts of wire fraud, one count of aggravated identity theft, and one count of money laundering. It was unable to reach a unanimous verdict on the two remaining counts of wire fraud and the other count of aggravated identity theft.
Sentencing will take place in approximately ninety days. Foust could be imprisoned for a maximum of twenty years on each of the wire-fraud convictions, to be followed by three years of supervised release. Aggravated identity theft carries a mandatory minimum sentence of two years in prison, in addition to any other sentence of imprisonment. The money-laundering conviction could result in a sentence of ten years in prison, followed by three years of supervised release. Foust could also be fined up to $250,000 on each count and would be subject to mandatory restitution and to a forfeiture money judgment in the amount of the proceeds of the fraud, which the indictment alleges to be $4,345,619.00.
This case is the result of an investigation by the Oklahoma Economic and Identity Crimes Task Force, which is composed of the United States Secret Service, the FBI, IRS–Criminal Investigations, Homeland Security Investigations, the U.S. Postal Inspection Service, the Oklahoma Highway Patrol, the Oklahoma City Police Department, the Edmond Police Department, the Moore Police Department, and the Norman Police Department. The case agents hail from FBI and IRS–Criminal Investigations. Assistant U.S. Attorneys Jessica L. Perry, Amanda Green, and Tom Snyder are prosecuting the case.
Reference is made to court filings for further information.
Eurofins Lancaster Laboratories Environmental to Pay $135,742 to Resolve False Claims Allegations Arising from Improper Testing of U.S. Army Water SamplesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Eurofins Lancaster Laboratories Environmental LLC, of Lancaster, Pennsylvania, has agreed to pay the United States $135,742 to resolve allegations that it billed the U.S. Army for testing numerous water samples after a Eurofins employee had improperly manipulated or changed the results. Eurofins has terminated the employee, retested the affected samples, and implemented changes to prevent similar misconduct.
In 2017, an investigation was launched after Eurofins disclosed to the United States that between June 21, 2016 and September 14, 2017, an employee in its Lancaster, Pennsylvania laboratory had improperly manipulated quality control data and altered the test results of numerous water samples. Eurofins had contracted with the U.S. Army Public Health Command to test environmental samples, and Eurofins had billed the government $67,871 for testing of 1436 water samples, the results of which the employee had manipulated or altered. Eurofins disclosed information related to its former employee’s misconduct and cooperated with the government’s investigation.
“Government contractors are accountable for their employees’ conduct, especially when they are relied on to ensure the public health of personnel working and living on U.S. military facilities,” said U.S. Attorney McSwain. “This resolution should remind contractors of the high value we place on safeguarding our military service members and civilian employees. We commend Eurofins for coming forward to disclose the issues and for working with the federal government and other regulators to bring its practices into compliance with the law.”
“This settlement further demonstrates the resolve of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit and our law enforcement partners to protect and defend the assets of the United States Army,” stated Special Agent in Charge L. Scott Moreland, of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit’s Mid‑Atlantic Fraud Field Office.
“The settlement agreement announced today is the result of a joint investigative effort,” stated Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the U.S. Army Criminal Investigation Command to ensure the integrity of the Defense Department’s procurement system.”
The case was handled by Assistant United States Attorney Mark J. Sherer with investigative assistance from auditor Denis Cooke, the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, and the Defense Criminal Investigative Service.
EDPA Announces 2018 Affirmative Civil Enforcement AchievementsRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain today announced calendar year 2018 affirmative civil enforcement (ACE) achievements by the U.S. Attorney’s Office Civil Division. As the 2018 achievements demonstrate, the Eastern District of Pennsylvania (EDPA) continues to have one of the busiest and most prolific Civil Divisions in the country.
For calendar year 2018, the EDPA Civil Division recovered over $115.5 million in settlements and judgments from civil cases involving fraud against the government. These matters originated largely from qui tam, or whistleblower filings and agency referrals. Of that amount, over $108 million resulted from False Claims Act (FCA) cases, largely from those alleging healthcare fraud violations. Whistleblowers recovered over $18 million from these resolutions. During the same calendar year, EDPA opened a record-setting number of ACE investigations into alleged fraud on the government, Controlled Substances Act violations, and civil rights violations.
“We sincerely thank the whistleblowers and their counsel who have brought these matters to the attention of the United States. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said U.S. Attorney McSwain.
“We also thank our federal law enforcement partners, including the U.S. Department of Health and Human Services Office of the Inspector General, the Defense Criminal Investigative Service, the Drug Enforcement Administration, the U.S. Office of Personnel Management Office of the Inspector General, the U.S. Postal Inspection Service, and the Railroad Retirement Board Office of the Inspector General. The agency support and dedication in these matters is critical to the success of our civil enforcement.”
“We plan to build on these achievements in 2019,” continued U.S. Attorney McSwain. “I anticipate that the newly created ACE Strike Force will help us realize even greater success this year.” In August 2018, the U.S. Attorney formed the ACE Strike Force. It consists of five Assistant U.S. Attorneys within the Civil Division who focus their efforts on ACE work. Its mission is to pursue complex fraud investigations, including FCA whistleblower cases, combat the opioid crisis through civil enforcement, and enforce federal civil rights statutes.
“The Civil Division will continue to build its robust pipeline of ACE cases, and we have every reason to expect to see a large number of complex whistleblower filings under the False Claims Act and agency referrals,” said U.S. Attorney McSwain. “I expect ongoing ACE success, reflecting the identification and targeting of specific ACE areas including government fraud, Controlled Substances Act enforcement, and civil rights enforcement.”
The following are significant calendar year 2018 achievements:[1]
FCA Healthcare Fraud Settlements
- HMA. In this qui tam against Health Management Associates (HMA), its hospitals Lancaster Regional and Heart of Lancaster, and the physicians group Physicians Alliance Ltd. (PAL), EDPA and DOJ negotiated a large, multi-district $260 million settlement involving medically unnecessary hospital admissions and kickbacks to doctors. The kickback methods included: physicians participating in whole-hospital joint ventures of HMA facilities, physicians receiving excessive compensation, physicians receiving bogus co-management fees, and physicians receiving bogus medical directorship fees. The settlement amount is $55 million for the joint venture piece of the litigation arising out of EDPA, with a global settlement of $260 million for eight qui tams filed in five districts. https://www.justice.gov/usao-edpa/pr/national-hospital-chain-will-pay-over-260-million-resolve
- Abbott. Abbott Laboratories and AbbVie Inc. (“Abbott”) agreed to pay $25 million to resolve allegations that it employed kickbacks and unlawful methods of off-label marketing and promotion to induce physicians to prescribe the drug TriCor,® a blockbuster cholesterol reducing drug that was promoted for use in conjunction with other cholesterol lowering medications. https://www.justice.gov/usao-edpa/pr/abbott-laboratories-and-abbvie-inc-pay-25-million-resolve-false-claims-act-allegations
- Coordinated Health and Emil DiIorio, M.D. Coordinated Health Holding Company, LLC (“Coordinated Health”) and its founder, principal owner, and Chief Executive Officer, Emil DiIorio, M.D., agreed to settle allegations that they abused billing modifiers to unbundle surgery codes resulting in false claims submitted to federal health care programs. Coordinated Health agreed to pay $11.25 million and DiIorio agreed personally to pay $1.25 million, for total settlement of $12.5 million. Coordinated Health has also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services that will require regular monitoring of its billing practices for five years. https://www.justice.gov/usao-edpa/pr/coordinated-health-and-ceo-pay-125-million-resolve-false-claims-act-liability
- SouthernCare. SouthernCare, Inc., a hospice care provider, agreed to pay $5,863,426 to the federal government to resolve allegations that the company submitted false claims to Medicare for hospice care that was medically unnecessary or lacked documentation. In their qui tam complaints, the whistleblowers alleged that SouthernCare provided hospice care to patients who were not eligible under the Medicare program. https://www.justice.gov/usao-edpa/pr/hospice-care-provider-pays-nearly-6-million-resolve-false-claims-act-allegations
- I&L Express Pharmacy. I&L Express Pharmacy and its owners agreed to pay $3.2 million to the federal government to resolve allegations that they submitted false claims to Medicare for prescription medications that were not actually dispensed during a six-year period. Significantly, they also agreed to enter into an integrity agreement that requires them to undertake substantial compliance obligations and to contract with an Independent Review Organization that will conduct quarterly audits of their Medicare and Medicaid claims and drug inventory. https://www.justice.gov/usao-edpa/pr/pharmacy-owners-agree-pay-32-million-resolve-false-claims-case
- Community Health Clinics / Dr. Melchor Martinez. In this case, EDPA filed a complaint in intervention of a qui tam alleging that Martinez had been excluded from participating in all federally funded healthcare programs, but had nonetheless continued to own and operate community mental health clinics that billed Medicaid and Medicare. The complaint also alleged widespread fraud in billing for mental health services, billing for services provided by unqualified individuals, and falsifying credentials. https://www.justice.gov/usao-edpa/pr/civil-complaint-alleges-fraud-operators-community-mental-health-clinics The district court entered a $3 million consent judgment on October 18, 2018, which required the defendants to shut down their remaining Medicare business and for significant periods of exclusion from participation in federally funded healthcare programs for the defendants. https://www.justice.gov/usao-edpa/pr/united-states-obtains-3-million-consent-judgment-and-federal-healthcare-exclusions-0
- Bromedicon. Marshfield Medical, Inc., formerly known as Bromedicon, Inc., agreed to pay $550,000 to resolve a qui tam lawsuit’s allegations that Bromedicon submitted false claims to Medicare and other federal healthcare programs for failing to provide a qualified interpreting physician to monitor each surgery for which it purportedly provided remote Intraoperative Neurophysiological Monitoring. https://www.justice.gov/usao-edpa/pr/intra-operative-monitoring-company-agrees-pay-550000-settle-false-claims-act-claims
- Dr. Banka. Vidya Banka, MD agreed to pay a civil penalty of $126,617 and to a five-year term of exclusion from all federal healthcare programs to settle allegations that he improperly submitted Medicare claims for unnecessary cardiac stent procedures. The University of Pennsylvania Health System (“UPHS”), which owns Pennsylvania Hospital, brought the matter to the United States’ attention through a voluntary self-disclosure. The United States then continued to investigate Dr. Banka. https://www.justice.gov/usao-edpa/pr/united-states-resolves-claims-philadelphia-cardiologist-billed-medicare-unnecessary
- Rosenbaum. A personal injury law firm, Rosenbaum & Associates, and its principal, Jeffrey Rosenbaum, Esq., agreed to pay $28,000 to resolve allegations that they failed to reimburse the United States for certain Medicare payments the government had previously made to medical providers on behalf of firm clients who sought medical care. The government’s investigation arose under the Medicare Secondary Payer provisions of the Social Security Act. Rosenbaum also agreed to (1) designate a person at the firm responsible for paying Medicare secondary payer debts; (2) train the designated employee to ensure that the firm pays these debts on a timely basis; and (3) review any outstanding debts with the designated employee at least every six months to ensure compliance. https://www.justice.gov/usao-edpa/pr/philadelphia-personal-injury-law-firm-agrees-start-compliance-program-and-reimburse
Controlled Substances Act Enforcement
- Passavant/PDC. Arising from a voluntary self-disclosure, Passavant Memorial Homes, and its subsidiaries Passavant Development Corporation, PDC Pharmacy Philadelphia, PDC Pharmacy Pittsburgh, and PDC Pharmacy Colorado, paid the United States $1,850,000 to resolve allegations that it dispensed controlled substances to patients without a valid prescription in violation of the Controlled Substances Act and FCA. This matter also involved two additional disclosures in coordination with the District of Colorado and the Western District of Pennsylvania. The U.S. Attorney’s Offices worked in close collaboration with each other, HHS, DEA, and Medicaid Fraud Control Units from all three districts to obtain the resolution in this case. https://www.justice.gov/usao-edpa/pr/passavant-memorial-homes-pay-185-million-resolve-allegations-improperly-dispensing
- Dr. Stephen Latman. This civil complaint resulted in a first-of-its-kind consent decree against a physician who had been allegedly overprescribing opioids for years. According to the complaint, Dr. Latman issued 343 opioid prescriptions to three of his patients that lacked a legitimate medical purpose and were issued outside of the usual course of his professional practice. Dr. Latman entered into a Stipulated Order and Consent Judgment, requiring him to pay $400,000 to the United States, prohibiting him from ever seeking a future DEA controlled substance license, requiring him to voluntarily relinquish his license to practice medicine, and requiring him to execute an agreement with the U.S. Department of Health and Human Services to be excluded from Medicare, Medicaid, and all other federal health care programs. https://www.justice.gov/usao-edpa/pr/united-states-files-suit-against-reading-area-physician-opioid-prescribing
- Stephen Humbert, D.O. and Raymond Ferraro, P.A. These medical providers agreed to pay $112,500 to resolve allegations for improperly prescribing opioids to one of their former patients. Additional conditions of compliance with the DEA required regular reporting of their prescriptions for controlled substances and new policies for their opioid patients. https://www.justice.gov/usao-edpa/pr/two-healthcare-providers-agree-pay-over-100000-settle-civil-claims-improper-opioid
FCA Procurement/Grant Fraud Settlements
- Shubhada Industries. EDPA filed a civil fraud lawsuit against Babu Metgud and Shubhada Kalyani, and four companies, Shubhada Industries, d/b/a Shubhada, Inc., Metcon Aerospace & Defense, d/b/a Metcon Industries, NRI Capital Corporation, and The Innovation Technology & Enterprise Development Center, Inc., for a scheme to overcharge the military for spare vehicle parts. The United States, as the plaintiff, moved for summary judgment against Metgud and Kalyani. In granting the United States’ motion, the district court entered judgment against the individual defendants, awarding damages and imposing the maximum penalty allowable under the FCA. The couple has been ordered to pay $232,891.37 to the United States. https://www.justice.gov/usao-edpa/pr/lawsuit-filed-against-defense-contractors-over-alleged-false-claim. The press release for the judgment is here: https://www.justice.gov/usao-edpa/pr/court-enters-judgment-against-new-jersey-couple-overcharging-military-spare-vehicle
- Scholars in Print. EDPA filed a civil complaint alleging that Scholars in Print and its owners, John Paul Ryan and Mary Motz Ryan, violated the FCA by shipping unordered textbooks to the Federal Bureau of Prisons and demanding payment, in conjunction with a motion asking the court to enter a stipulated order and consent judgment to resolve the matter. The defendants will pay a civil penalty of $75,689 for submitting false claims. They will also refrain from marketing products to any federal agency through unsolicited communications or telemarketing. https://www.justice.gov/usao-edpa/pr/bucks-county-couple-and-telemarketing-firm-agree-pay-penalty-resolve-false-claims-act
FCA Benefits Fraud Settlements
- Richard Cundari. A former Railroad Retirement Board employee resolved civil fraud claims under the FCA for $307,500 concerning allegations that he applied for and received occupational disability annuities that he was ineligible to receive due to income earnings in excess of the applicable limits. https://www.justice.gov/usao-edpa/pr/doylestown-man-pay-307500-resolve-civil-false-claims-allegations-he-illegally-received
[1] The civil claims resolved by settlement are allegations only, and there has been no determination of liability.
- HMA. In this qui tam against Health Management Associates (HMA), its hospitals Lancaster Regional and Heart of Lancaster, and the physicians group Physicians Alliance Ltd. (PAL), EDPA and DOJ negotiated a large, multi-district $260 million settlement involving medically unnecessary hospital admissions and kickbacks to doctors. The kickback methods included: physicians participating in whole-hospital joint ventures of HMA facilities, physicians receiving excessive compensation, physicians receiving bogus co-management fees, and physicians receiving bogus medical directorship fees. The settlement amount is $55 million for the joint venture piece of the litigation arising out of EDPA, with a global settlement of $260 million for eight qui tams filed in five districts. https://www.justice.gov/usao-edpa/pr/national-hospital-chain-will-pay-over-260-million-resolve
Drug Dealer Sentenced to 8 Years in Federal Prison for Possession with Intent to Distribute 1,980 Grams of MethRead the Press Release
COLUMBUS – A defendant caught in a drug sting with almost 2,000 grams of methamphetamine and more than $11,000 in cash was sentenced to 96 months in federal prison, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Amber Hass, 30, of Columbus, GA was sentenced to 96 months for Possession of Methamphetamine with Intent to Distribute by the Honorable Clay D. Land in Columbus federal court. Ms. Hass pled guilty to this charge in November 2018. There is no parole in the federal system.
Agents with the Drug Enforcement Administration and the Columbus Police Department received information regarding a large delivery of meth that would occur near a local restaurant on Bradley Park Drive in Columbus on December 5, 2017. Agents established surveillance in the general vicinity, and monitored Ms. Hass exiting her vehicle, carrying a bag which contained $11,720 and entering a car occupied by co-defendant Maria Lopez, 22, of Atlanta. Ms. Hass admitted that she attempted to exchange the cash for 1,980 grams of meth, which agents found located inside Ms. Lopez’s center console. Ms. Lopez is charged with Possession of Methamphetamine with Intent to Distribute.
“Methamphetamine is destroying lives in our communities every single day,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Ms. Hass was directly involved in distributing an enormous quantity of this illegal drug across the Columbus area, and I am grateful our dedicated law enforcement partners were able to stop this significant drug deal. Our office will continue to stand with law enforcement agents who are putting their lives on the line daily to protect our communities from meth, and the terrible harm this drug creates.”
The case was investigated by the Drug Enforcement Agency and the Columbus Police Department. Assistant U.S. Attorney Melvin Hyde is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Driver Who Fled Topeka Police Sentenced on Federal Gun ChargeRead the Press Release
TOPEKA, KAN. – A driver who led Topeka police on a chase at more than 70 mph was sentenced today to 42 months in federal prison on a firearm charge, U.S. Attorney Stephen McAllister said.
Darryl Kevin Norwood, 30, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm following a felony conviction. In his plea, Norwood admitted that instead of stopping at a DUI check lane he fled from police at speeds exceeding 70 mph. He hit another car and continued to flee on foot before being arrested. Police found a .380 caliber pistol on the floorboard of his car.
Norwood was prohibited from possessing a firearm because of prior felony convictions.
McAllister commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Greg Hough for their work on the case.
The case was prosecuted under the Department of Justice’s Project Safe Neighborhoods initiative.
Dog Pound Gangster Sentenced to over 11 Years in PrisonRead the Press Release
FRESNO, Calif. — Kiandre Johnson, 25, of Fresno, was sentenced Monday to 11 years and six months in prison for engaging in a conspiracy to commit murder in aid of racketeering and using a facility of interstate commerce to facilitate prostitution, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March and April 2016, Johnson conspired with other Dog Pound Gang members to kill rival gang members for the purpose of gaining or maintaining his status within the Dog Pound enterprise. Between March 23, 2016, and April 7, 2016, three Dog Pound members or associates were shot or shot at by rival gang members. After the March 23 shooting, Johnson and other Dog Pound members conspired to murder rival gang members in retaliation for the shootings. On April 7, 2016, Johnson obtained a firearm from co‑defendant William Lee to use in a shooting later that evening. Johnson was armed with the gun when he and others went to Fink White Park, rival gang territory, and engaged in a shooting. Johnson tried to fire the gun, but it jammed. After, Johnson returned to a local hotel where other Dog Pound members were located. Johnson met with Lee, and the two planned to go and test the gun to see what the problem was. However, before they could do so, police attempted to stop them. They threw the gun out of the window of the car and police recovered it.
Additionally, York, Monson, Wharry, Maxey, Johnson, and Millro were involved in sex trafficking female victims both within and outside of California. Wharry, Johnson, and Windfield were also involved in fraud that involved obtaining stolen credit card account numbers, manufacturing counterfeit credit cards, and conducting transactions with the counterfeit credit cards throughout California, Nevada, Oregon, Minnesota, Illinois, and Missouri to obtain money, goods and services.
Johnson was the last of the defendants in the case to be sentenced. Following are the other defendants charged in this case:
James York, 41, a leader in the Dog Pound enterprise, was sentenced to 14 years in prison for conspiracy to commit murder in aid of racketeering, use of a facility of interstate commerce to promote prostitution, and possession of an unregistered firearm;
Trenell Monson, 31, a leader in the Dog Pound enterprise, was sentenced to 15 years in prison for conspiracy to commit murder in aid of racketeering, interstate transportation for prostitution, and use of a facility of interstate commerce to promote prostitution;
Deandre Stanfield, a leader in the Dog Pound enterprise, was sentenced to 10 years in prison for conspiracy to commit murder in aid of racketeering;
Kenneth Wharry Jr., 35, was sentenced to 10 years and one month in prison for conspiracy to commit murder in aid of racketeering, interstate transportation for prostitution, and conspiracy to effect transactions with access devices issued to other persons;
Darrell Maxey, 23, was sentenced to 10 years in prison for conspiracy to commit murder in aid of racketeering, and use of a facility of interstate commerce to promote prostitution;
Davon Millro, 24, was sentenced to 10 years and one month in prison for conspiracy to commit murder in aid of racketeering, and use of a facility of interstate commerce to promote prostitution;
Kenneth Johnson III, 28, was sentenced to 10 years and one month in prison for conspiracy to commit murder in aid of racketeering, and conspiracy to effect transactions with access devices issued to other persons;
William Lee, 41, was sentenced to 10 years in prison for conspiracy to commit murder in aid of racketeering; and,
Anthony Windfield Jr., 33, was sentenced to 7 years, 3 months in prison for conspiracy to commit murder in aid of racketeering and conspiracy to effect transactions with access devices issued to other persons.
This case was the product of an investigation by the California Department of Justice/California Highway Patrol Special Operations Unit; Fresno Police Department; the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the IRS Criminal Investigation; the Multi-Agency Gang Enforcement Consortium; the Fresno County District Attorney’s Office; and California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez and Jeffrey A. Spivak prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Defendant Involved in Defrauding Stepson's Business of Close to One Million Sentenced on Conspiracy ChargeRead the Press Release
COLUMBUS – A defendant who testified last month that she was duped by an Alabama woman into conspiring to steal money from a Columbus business was sentenced today in Columbus federal court, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. The Honorable Clay D. Land sentenced Darlene Corbett, 65, of Phenix City, Alabama to 24 months in prison on Conspiracy to Commit Wire Fraud, a charge she pled guilty to in July 2018. There is no parole in the federal system.
In her plea agreement, Ms. Corbett admitted she embezzled over $950,000 as Chief Financial Officer (CFO) of The Grand Reserve of Columbus, an apartment complex owned by her stepson. Ms. Corbett later testified at the trial of her co-defendant, Dorita Clay, 51, of Selma, Alabama, in January 2019. Under oath, Ms. Corbett testified that the money she embezzled all went to Ms. Clay and was in the service of various schemes that Ms. Clay had convinced her were legitimate, include a pending multi-million dollar estate settlement and a multi-million lawsuit settlement that Ms. Clay claimed she was about to receive. Ms. Corbett further admitted at trial that she had conspired with Ms. Clay to embezzle the money, to then conceal the theft and deceive the FBI with a false story about business loans.
Both at trial and in her signed plea agreement filed with the court, Ms. Corbett admitted that the business loan story was not true and she had been induced to steal from her employer by Ms. Clay, who promised Corbett a future financial windfall. Even after being fired by The Grand Reserve in 2016, Ms. Corbett admitted to giving Ms. Clay her life’s savings, which she estimated was approximately $500,000. A Columbus jury found Ms. Clay guilty on 21 counts of Wire Fraud and one count of Conspiracy to Commit Wire Fraud on January 9, 2019. Ms. Clay will be sentenced for her crimes on April 9, 2019.
“The scheme of lies and theft concocted by Ms. Clay, and supported by Ms. Corbett, caused great harm to a reputable business and numerous individuals,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. “Today, Ms. Corbett has been held accountable for her role in this illegal racket, and soon Ms. Clay will have to face the consequences of swindling large amounts of money from her victims. I want to recognize the good investigative work of our law enforcement partners in helping bring an end to this fraud.”
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Convicted Felon Sentenced to Prison for Possessing a FirearmRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to seven years in prison for possession of a firearm by a convicted felon.
According to court documents, Timothy Cureton, 27, possessed a firearm in a Facebook live video posted to his Facebook account on Jan. 25, 2018. In the video, which was discovered by the Richmond Police Department, Cureton held a brown Glock handgun with an extended magazine.
Officers suspected that Cureton stayed at an apartment in Creighton Court. Just five days later, on Jan. 30, 2018, officers received information that individuals were storing illegal narcotics at an apartment in Creighton Court. Officers went to the apartment and upon entering the residence observed drug paraphernalia. After officers obtained a search warrant for the residence, they discovered two firearms in a bedroom closet. One of those firearms was a brown Glock handgun, consistent with the firearm Cureton displayed in the Facebook live video. Inside the same bedroom of the residence, officers located Cureton’s social security card and a document with Cureton’s name on it.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney. Assistant U.S. Attorney Heather H. Mansfield prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-108.
Columbia Man Pleads Guilty to Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who was in a vehicle that led police officers in a pursuit pleaded guilty in federal court today to illegally possessing a firearm.
Justin Craig Ewing, 30, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a felon in possession of a firearm. Ewing admitted that he was in possession of a loaded Browning .40-caliber handgun.
On Dec. 22, 2017, police officers attempted to stop a 2006 Chevy Impala driven by Jeremy Wade Gerlach, 36, of Harrisburg, Mo., in which Ewing was the passenger. Officers, who were seeking to arrest Gerlach, pulled in behind the parked vehicle at the Days Inn Motel, 900 I-70 Drive Southwest, Columbia, Mo. As officers approached the vehicle on foot, the Impala fled north through a grassy area next to the motel. As another patrol vehicle arrived from the east side of the motel, the Impala swerved left to go around them and crashed into an electric pole. An officer ran up to the vehicle and pointed his gun at the occupants. When the officer realized Gerlach was trying to put the vehicle in reverse, he ran back to his patrol vehicle and used it to pinch in the rear of the Impala to prevent escape and further jeopardy to officers.
When officers approached the vehicle, the driver’s side windows were up and the doors were locked. An officer used his baton to break the driver’s window, and officers pulled Gerlach out of the Impala through the broken driver’s side window.
When officers removed Gerlach and Ewing from the vehicle, they saw the Browning handgun (which had been reported as stolen) lying on the floorboard where Ewing had been sitting. Ewing was wearing a shoulder handgun holster. Officers also found a loaded Rock Island Armory .45-caliber handgun wedged between the driver’s seat and center console.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ewing has four prior felony convictions for forgery and prior felony convictions for burglary, resisting arrest, possession of a controlled substance, distribution of a controlled substance, and unlawful use of a weapon.
Gerlach pleaded guilty on Oct. 9, 2018, to being a felon in possession of a firearm.
Under federal statutes, Ewing and Gerlach are each subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Clermont Eye Doctors Agree to Pay over $157,000 to Settle False Claims Act Liability for Improperly Billing MedicareRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces today that Dr. Craig D. Fishman and Dr. Jeffrey A. Sheridan have agreed to pay the United States a combined total of $157,312.32 to resolve allegations that they violated the False Claims Act by knowingly billing the government for mutually exclusive eyelid repair surgeries. Dr. Fishman and Dr. Sheridan are ophthalmologists who operate Fishman & Sheridan Eye Care Specialists.
The settlement relates to Dr. Fishman and Dr. Sheridan’s billing of two procedures, blepharoplasty and ptosis. Medicare identifies these procedures as mutually exclusive eyelid repair surgeries that usually should not be billed simultaneously. According to the settlement agreement, from April 11, 2011, through March 31, 2017, Dr. Fishman and Dr. Sheridan each regularly billed for simultaneously performing blepharoplasty and ptosis on patients and submitted those claims to the United States for reimbursement.
“Protecting Medicare and other federal health care programs from fraud is a priority of the U.S. Attorney’s Office,” said U.S. Attorney Maria Chapa Lopez. “This settlement highlights our commitment to identifying doctors who do not follow the law.”
“Improperly billing for services to increase revenue burdens our healthcare system,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to investigate health care providers that seek to illegally boost profits at the expense of federal health care programs.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by two whistleblowers—Dr. Michael Pennachio, a former partner of Drs. Fishman and Sheridan, and Sharon Drake, their former office manager. Dr. Pennachio and Ms. Drake sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting private citizens to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Dr. Pennachio and Ms. Drake will receive $26,000 of the proceeds from the settlement with Dr. Fishman and Dr. Sheridan.
This settlement resulted from an investigation coordinated by Assistant U.S. Attorney Jeremy R. Bloor, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case is captioned United States ex rel. Michael Pennachio, M.D. and Sharon Drake v. Craig D. Fishman, M.D., and Jeffrey A. Sheridan, M.D., Case No. 5:17-cv-152-OC-34PRL. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.