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11 March 2019
Owner of South Hills Suboxone Clinic Sentenced for Filing False Income Tax ReturnsRead the Press Release
PITTSBURGH, PA. - A resident of Washington County, Pennsylvania, has been sentenced in federal court to five years of probation with 180 days of incarceration at Renewal, Inc. along with 180 days of home incarceration, a $15,000 fine and ordered to pay $391,472 in restitution on his conviction of filing false income tax returns, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Allan W. Clark, M.D.
According to information presented to the court, Clark was the owner and operator of the South Hills Recovery Project (SHRP), a strictly cash-based suboxone clinic. A patient’s first visit fee during the relevant times was $250. The follow-up monthly visits were $150. Over the course of 2011, 2012 and 2013, Clark hired approximately 11 different doctors to work part time at SHRP to assist him in handling the follow up visits. Of the $150 collected from the patient for the follow- up visit, the 11 doctors were paid approximately half, or $75, and SHRP kept the other $75. Clark did not report all of the cash collected, and used some of it for personal expenses such as improvements on his home.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service-Criminal Investigations for the investigation leading to the successful prosecution of Clark.
Oklahoma City Home Builder Sentenced to Prison and Ordered to Pay $941,475.60Read the Press Release
OKLAHOMA CITY – GREGORY L. COBBS, 60, of Oklahoma City, has been sentenced to 24 months in federal prison for committing wire fraud, announced Robert J. Troester of the U.S. Attorney’s Office. He has also been ordered to pay $941,475.60 in restitution to ten victims.
On August 20, 2018, Cobbs pleaded guilty to a one-count information that charged wire fraud. According to the information, Cobbs was a custom home builder doing business in Oklahoma as GL Cobbs and Company, LLC. The information explains that Cobbs promised an Oklahoma couple living in The Netherlands that he would assist them in purchasing a lot and custom home in 2014. He is alleged to have caused the couple to sign a purchase agreement and wire him $100,000 but then to have used $95,000 of that money for purposes other than delivering the promised home. He also allegedly induced the couple to send him more money, for a total of over $200,000. According to the information, shortly before the couple was to receive their home in 2016, they learned that Cobbs had not purchased the lot as promised and had paid only $15,000 toward the construction cost.
Today U.S. District Judge David L. Russell sentenced Cobbs to 24 months in prison. After release from prison, Cobbs will serve three years on supervised release.
Judge Russell considered not only the victims described in the information, but similarly-situated victims whom Cobbs defrauded. The court concluded Cobbs’s fraudulent scheme caused losses of over $940,000 to ten separate victims. At sentencing, two victims not referenced in the information described the manner in which Cobbs defrauded them and the effect of his crimes.
This case is the result of an investigation by the FBI Oklahoma City Division and the Yukon Police Department. It was prosecuted by Assistant U.S. Attorneys Kerry A. Kelly and William E. Farrior.
Reference is made to public filings for further information.
Ohio man admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Zachary Price, of Flushing, Ohio, has admitted to drug distribution, United States Attorney Bill Powell announced.
Price, age 23, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and Distribute Cocaine, MDMA, LSD, Marijuana, Oxycodone, Adderall, Codeine, and Alprazolam.” Price admitted to distributing cocaine, MDMA, LSD, Marijuana, Oxycodone, Adderall, Codeine, and Alprazolam from April 2017 to November 2017 in Ohio County.
Price faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio Man Sentenced for Tax EvasionRead the Press Release
PITTSBURGH, PA - A resident of Canfield, Ohio, has been sentenced in federal court to probation for a term of five years and was ordered to pay restitution in the amount of $331,509.00 on his conviction of tax evasion, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Douglas A. Hagy.
According to the information presented to the court, Hagy earned approximately $982,000 in personal income between 2012 and 2016, which he failed to disclose on federal income tax returns.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The U.S. Attorney commended the Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation, and United States Postal Inspection Service for the investigation leading to the successful prosecution of Douglas A. Hagy.
North Florida Bingo Operators Ordered to Forfeit $5.8 Million Due to Illegal Gambling OperationRead the Press Release
PENSACOLA, FLORIDA – Striking a blow against illegal gambling operators who profit behind a facade of good causes, U.S. Attorney Lawrence Keefe for the Northern District of Florida today announced that the owners/operators of Racetrack Bingo in Fort Walton Beach have been ordered to forfeit $5,813,584 to the United States. In February 2018, a federal jury convicted Larry L. Masino, 68, of Gulf Breeze, and Dixie L. Masino, 66, of Pensacola, of operating an illegal gambling business and money laundering charges.
Assistant U.S. Attorney Alicia H. Forbes prosecuted the Masinos after a joint investigation by the Florida Department of Law Enforcement, the Internal Revenue Service—Criminal Investigation, Federal Bureau of Investigation, and Okaloosa County Sheriff’s Office.
U.S. Attorney Keefe issued this statement: “The investigation and prosecution of financial crimes joins the criminal and civil enforcement resources of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement. This multimillion-dollar forfeiture order delivers a powerful message to law breakers who would try to reap millions destined for legitimate charitable organizations. Thanks to the outstanding work of AUSA Forbes and her investigative team, these criminals will pay for their misdeeds.”
FDLE Pensacola Special Agent in Charge Jack Massey offered additional perspective.
“I appreciate the work of the U.S. Attorney’s Office, our agents, and law enforcement partners ensuring our local charities have the resources they earned to address the needs of our community,” he said.
Rather than returning all proceeds from bingo games to players in the form of prizes, as required by law, the Masinos concocted a scheme in which charities sponsored games and paid Racetrack Bingo extremely high “lease” payments to conduct the games at its location. Although Racetrack Bingo made it appear that the charities were conducting the games themselves, the Masinos were actually illegally conducting bingo and keeping a substantial amount of the bingo proceeds for themselves. Over $20 million was brought in from the illegal bingo games conducted at Racetrack Bingo, of which $5,813,584 was personally retained by the Masinos and their children as illegal profit.
The forfeiture order requires the Masinos to turn over substantial sums of cash, as well as three properties purchased with monies they received through the Racetrack Bingo operation. The forfeiture order will be incorporated into the final judgment when the Masinos are sentenced. A sentencing hearing is currently scheduled for March 25, 2019, at 1:00 p.m.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Nine Charged in Schenectady Heroin Trafficking ConspiracyRead the Press Release
ALBANY, NEW YORK – Nine people have been charged with operating a heroin distribution ring in Schenectady, New York.
The announcement was made by United States Attorney Grant C. Jaquith; Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Acting Superintendent Keith M. Corlett.
The defendants arrested to date, all of whom are charged with conspiracy to possess with intent to distribute and to distribute heroin, are:
- Jean Carlos Rivera-Perez, aka “Tego,” age 44, of Bronx, New York;
- Esteban Ressy, aka “The Boss,” age 43, of Schenectady and Puerto Rico;
- Leamzy Soto Calderon, aka “Lee,” aka “Gordo,” age 28, of Schenectady;
- Linette Marie Soto, age 24, of Schenectady;
- Kristen Jansen, age 27, of Schenectady;
- Jose Cortes-Cruz, aka “Bimbo,” age 28, of Schenectady;
- Gregory Insogna, age 45, of Amsterdam, New York;
- Patrick McNamara, age 47, of Amsterdam.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Ressy, who was arrested in Puerto Rico on January 8, 2019, faces at least 15 years and up to life in prison, and a maximum fine of $20 million.
Rivera-Perez, Calderon, and Soto each face at least 10 years and up to life in prison, and a maximum fine of $10 million.
Jansen and Insogna each face at least 5 years and up to 40 years in prison, and a maximum fine of $5 million.
Cortes-Cruz and McNamara each face up to 20 years in prison and a maximum fine of $1 million.
The group is alleged to have distributed over a kilogram of heroin in Schenectady between 2017 and December 2018. In executing search warrants in Schenectady and the Bronx, law enforcement seized hundreds of grams of heroin, cash, and heroin-processing materials.
This case is being investigated by HSI, the New York State Police, U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
New Orleans Man Sentenced for Possession with Intent to Distribute Cocaine HydrochlorideRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that JAYVONNE JOHNSON, age 49, of New Orleans, Louisiana, was sentenced on March 7, 2019 after having pleaded guilty to possession with intent to distribute 500 grams or more of cocaine hydrochloride.
United States District Judge Carl J. Barbier sentenced JOHNSON to 120 months’ imprisonment and a supervised release period of 4 years.
According to court documents, on June 25, 2017, JOHNSON was stopped by law enforcement officers as he disembarked from an Amtrak train arriving in New Orleans from Houston, Texas and was found to be in possession of 1.3 kilograms of cocaine hydrochloride.
U.S. Attorney Strasser praised the work of the Amtrak Rail Police, the Kenner Police Department and the Drug Enforcement Administration. Assistant U.S. Attorneys Sharon D. Smith and Brandon S. Long are in charge of the prosecution.
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Missouri Resident Who Illegally Possessed Gun in Arkansas, Threatened to Kill Law Enforcement Officers, Receives 10-Year Prison SentenceRead the Press Release
LITTLE ROCK—A Missouri resident overheard on jail calls threatening to kill law enforcement officers and witnesses was sentenced today to federal prison for 10 years for possessing a firearm in Arkansas. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced that multi-convicted felon Jimmy David McVay, 34, of Steele, Mo., was sentenced to the statutory maximum 120 months in prison for his illegal possession of a firearm in Blytheville in 2016.
On May 4, 2018, a grand jury returned an indictment charging McVay, who has also lived in Blytheville, with one count of being a felon in possession of a firearm, one count of threatening witnesses in a federal proceeding, and one count of threatening to assault a Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) special agent. McVay pleaded guilty to being a felon in possession of a firearm on October 3, 2018. Today, United States District Court Chief Judge Brian S. Miller sentenced McVay to10 years in prison, followed by three years of supervised release. There is no parole in the federal system.
“Jimmy David McVay illegally possessed guns on numerous occasions, and threatened to harm witnesses and law enforcement officers on numerous occasions,” Hiland said. “This significant sentence properly reflects the seriousness of his crime. Any time an individual combines illegal gun possession with violence—threats or otherwise—they should know there will be a spot in a federal prison waiting for them.”
At his change of plea hearing, McVay admitted that he possessed a Ruger .357 revolver during the filming of a rap video in Blytheville in July 2016. According to evidence presented at McVay’s sentencing hearing today, officers recovered the Ruger revolver seen in the video from a body of water in Pemiscot County, Mo.
At the sentencing hearing, an ATF special agent testified that on July 26, 2016, approximately three weeks after the video in Blytheville was produced, Steele, Mo., Police Chief Billy Joe Stanfield attempted to pull over McVay in McVay’s vehicle in Steele. McVay fled, and during the pursuit, McVay crossed a bridge in Pemiscot County, Mo., and threw the firearm out his window and into the water below.
Law enforcement divers eventually located the Ruger revolver, which was loaded with the hammer cocked back, in the water.
Also at today’s sentencing hearing, Judge Miller heard numerous recorded jail calls in which McVay threatened to harm the local and federal law enforcement officers involved in his cases, as well as harm any witnesses who may have spoken to police about McVay’s illegal activities. The ATF agent also testified about numerous Facebook posts McVay made involving threats to witnesses who may appear before the grand jury, including both civilians and federal agents.
The investigation was conducted by the Cape Girardeau, Mo., ATF Field Office, as well as the Pemiscot County, Mo., Sheriff’s Department, the Steele, Mo., Police Department, and the Caruthersville, Mo., Police Department. The case was prosecuted by Assistant United States Attorney Chris Givens.
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at http://www.justice.gov/edarTwitter: @EDARNEWS
Mineral County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Kenneth Niland, of Keyser, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Niland, age 49, pled guilty to one count of “False Statement to a Federal Agent.” Niland admitted to lying to an ATF agent in November 2018.
Niland faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Miami County Man Sentenced for Distributing Child PornRead the Press Release
KANSAS CITY, KAN. – A Miami County man was sentenced Monday to nine years in federal prison on child pornography charges, U.S. Attorney Stephen McAllister said.
William Bresee, 32, Fontana, Kan., pleaded guilty to three counts of distributing child pornography and one count of possessing child pornography. At sentencing, the prosecutor told the court Bresee admitted that federal agents downloaded child pornography from his computer using an online file sharing program. Bresee was a staff member at Lakemary Center in Paola, Kan., working an overnight shift when investigators tracked child pornography to an IP address at the center. Breesee no longer works there.
McAllister commended Homeland Security Investigations (HSI) and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Mexico citizen arrested in Glacier National Park sentenced to prisonRead the Press Release
GREAT FALLS—A Mexico citizen arrested in Glacier National Park was sentenced today to six months in prison and to two years of supervised release for conviction of being in the United States illegally, U.S. Attorney Kurt Alme said.
Luis Alejandro Lopez-Solis, 38, pleaded guilty in December to illegal re-entry.
U.S. District Judge Brian M. Morris presided.
On Sept. 24, 201, while on routine patrol of the Goat Haunt area in Glacier National Park, park personnel told St. Mary Border Patrol agents of a suspicious person walking south from the Goat Haunt Ranger Station area. Border Patrol agents searched and found Lopez-Solis talking to a park law enforcement ranger on a trail south of the ranger station. Lopez-Solis was taken to the ranger station for an interview. Lopez-Solis, who was in wet clothing and shivering, said he had fallen into a nearby creek while trying to cross it.
Agents arrested Lopez-Solis and flew him by helicopter from the ranger station to the St. Mary Border Patrol Station for further investigation. He confirmed he was a citizen of Mexico.
Lopez-Solis told agents he left Mexico on Sept. 21, 2018 and had arrived the same day in Canada. There, he rented a car and traveled to Waterton, Alberta, where on Sept. 24 he started walking south, crossing into the United States, until he got found by the National Park Service rangers. He said his plan was to follow the NPS trail system to Chief Mountain where his girlfriend was going to pick him up.
Lopez-Solis was deported in May 2017 after conviction on passport fraud. He did not have permission to reenter the United States.
Assistant U.S. Attorney Paulette Stewart is prosecuting the case, which was investigated by U.S. Border Patrol and Glacier National Park Law Enforcement.
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Mexican Man Pleads Guilty to False Claim to United States CitizenshipRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Edgar Ramirez aka Rodolfo O. Salinas, 36, pleaded guilty today to false claim of United States citizenship.
According to a plea agreement filed with the court, on December 20, 2018, Ramirez presented himself for inspection to Customs and Border Protection (CBP) Officers at the Cyril E. King Airport on St. Thomas, Virgin Islands, while attempting to board Delta Airlines flight #307 to Atlanta, Ga. During primary inspection, Ramirez presented a Pennsylvania identification card bearing the name Rodolfo Salinas to the CBP Officer. During questioning, Ramirez also stated that he was a citizen of the United States. Ramirez was referred to secondary inspection where he also stated that he was a U.S. citizen who was born in Texas. After waiving his Miranda rights, Ramirez stated that he was born in Mexico with dual citizenship in Mexico and Guatemala. Ramirez stated that in 2001, he paid $2,000 to cross the border into the United States and has been living in the United States ever since. Ramirez admitted that he told the CBP Officers that he was a U.S. citizen.
Ramirez faces a three-year period of incarceration and a fine of $250,000. Sentencing is set for June 11, 2019.
The case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Kim L. Chisholm.
Masterminds in four ton, million dollar cross-country drug conspiracy sentencedRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that Kelly Joe Spinks, Jr and Joseph Pickett, Sr., were sentenced in United States District Court in Indianapolis by the Honorable Tanya Walton Pratt, to terms of imprisonment of 140 months’ and 135 months’ imprisonment, respectively, for their roles in a drug conspiracy in which over four tons of marijuana were obtained and distributed in the Southern District of Indiana.
Spinks and Pickett were prosecuted in an Organized Crime and Drug Enforcement Trafficking Force (OCDETF) investigation dubbed “Operation Northern Exposure” which was conducted by the U.S. Drug Enforcement Administration – Indianapolis District Office, Internal Revenue Service, Indianapolis Metropolitan Police Department and Beech Grove Police Department. The two-year investigation resulted in the indictment of seven defendants on violations of the Federal Controlled Substance Act, Money Laundering and other charges.
Over twenty search warrants served in the case led to discovery and seizure of over $4,000,000.00 in U.S. currency, 181 firearms, 31 vehicles, 2 motor homes, and 16 motorcycles.
The investigation led to the discovery of an Indianapolis, Indiana based, large scale, cross-country marijuana drug trafficking organization that was run by JOSEPH PICKETT, SR., and KELLY JOE SPINKS, JR., and operated from 2015 through March of 2017.
The investigation revealed that beginning in 2015 and continuing through March of 2017, JOSEPH PICKETT, SR., KELLY JOE SPINKS, JR., DARRELL PICKETT and others traveled to California and obtained anywhere between 100 pounds (45.45 kilograms) and 700 pounds (318.18 kilograms) of marijuana per trip from sources of supply in California. These trips to California occurred roughly every two to three weeks during the previously indicated period of time. The marijuana was then transported from California to Indianapolis, Indiana where it was stored and ultimately redistributed by PICKETT, SR., SPINKS, JR., DARRELL PICKETT and others, including SHEILA STEPP and WILLIAM BELLEW, JR.
“One of this Administration’s priorities is to dismantle organized crime operations like the Pickett crew,” said Josh J. Minkler, United States Attorney. “The fruits of this complex joint investigation including the seizure of significant assets and the Court’s sentence should serve as a warning bell to all.”
The SPINKS-PICKETT drug trafficking organization procured and distributed over four tons (3,636 kilograms) of marijuana during the course of the charged conspiracy.
Other defendants sentenced in the case include:
Darrell Pickett – 60 months’ imprisonment
Sheila Stepp - 20 months’ imprisonment
William Bellew, Jr. – 20 months’ imprisonment
Leonard Allen – 10 months’ imprisonment
According to Assistant United States Attorney Barry D. Glickman, Deputy Chief of the Drug and Violent Crime Unit, who prosecuted the case for the United States, Judge Pratt ordered both Spinks and Pickett to serve five-year terms of supervised release at the conclusion of their terms of imprisonment.
Marshall County man sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Kevin Mark Simms, of Moundsville, West Virginia, was sentenced today to 18 months incarceration for drug distribution, United States Attorney Bill Powell announced.
Simms, age 63, pled guilty to one count of “Distribution of Oxycodone” in December 2018. Simms admitted to selling oxycodone in Marshall County in October 2017.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Manhattan Man Sentenced to 87 Months for Capital Region Drug ConspiracyRead the Press Release
ALBANY, NEW YORK – Jose Gilberto Harris, age 59, of Manhattan, New York, was sentenced today to 87 months in prison, to be followed by 4 years of supervised release, for conspiring to distribute cocaine to the leader of a drug ring that operated in Schenectady and Albany.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Between August 2016 and May 2017, Harris supplied Darren Clay Robinson, aka “Mountain,” with large quantities of cocaine that Robinson and others then sold in Schenectady and Albany. Harris began selling drugs shortly after serving nearly 40 years for a murder he committed in 1976.
As a result of this drug offense, Harris also received a 22-month, consecutive sentence for violating the terms of his state parole.
The following defendants have pled guilty in connection with the conspiracy and been sentenced as follows. Corey White, aka “Stacks,” pled guilty to conspiring to distribute heroin with Robinson.
Name
Residence
Sentence
Darren Clay Robinson, aka “Mountain”
Schenectady and Teaneck, New Jersey
135 months in prison
8 years of supervision
Corey White, aka “Stacks”
Schenectady
125 months in prison
6 years of supervision
Yusef Boothman, aka “Rocket”
Schenectady
Sentencing Pending
Shenika D. Boyd, aka “Misses”
Albany
46 months in prison
6 years of supervision
Lashaunda Tarver, aka “Shaunda”
Schenectady
Sentencing Pending
Bobby R. Graham
Albany
Time served
3 years of supervision
Marty Humphrey
Schenectady
15 months in prison
3 years of supervision
Jalessa Scott
Schenectady
Time served (about
14 months in jail)3 years of supervision
Willie C. Hayes, aka “Man”
Schenectady
Time served
3 years of supervision
Kimberly Petties, aka “Shorty”
Schenectady
Time served
3 years of supervision
Manuel Clemente
Manhattan
Time served
3 years of supervision
Kristy L. Smith
Schenectady
Sentencing Pending
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, Schenectady County District Attorney’s Office, the U.S. Drug Enforcement Administration, Albany County Sheriff’s Office, New York State Police, and the New York Department of Corrections and Community Supervision. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Man Pleads Guilty to Fatal Stabbing in Indian CountryRead the Press Release
OKLAHOMA CITY – SAGE ATHEAKEE GOMEZ, 23, a member of the Ponca Tribe of Oklahoma, has pleaded guilty to involuntary manslaughter, announced Robert J. Troester of the U.S. Attorney’s Office.
According to court documents, on September 15, 2018, Gomez stabbed B.L.W., a member of the Tonkawa Tribe, at a rural residence on Indian land near Ponca City. The victim died of his wounds on October 2.
Gomez was charged by complaint on September 21 and made his initial appearance in federal court in Oklahoma City on September 25. He has remained in federal custody since that time.
On October 16, 2018, a federal grand jury charged Gomez with three federal crimes: voluntary manslaughter "upon sudden quarrel and heat of passion" in Indian Country, Assault with a Dangerous Weapon in Indian Country, and Assault Resulting in Serious Bodily Injury in Indian Country.
On March 8, 2019, Gomez pleaded guilty to a superseding information that charged him with involuntary manslaughter. In particular, the new charge alleged that when he stabbed the victim during an altercation, Gomez committed a reckless act "without due caution and circumspection, which might produce death."
The maximum penalty that could be imposed as a result of this guilty plea is eight years in prison and a fine of $250,000. Gomez could also face up to three years of supervised release and will be required to pay restitution to the victim’s estate. Sentencing will take place in approximately ninety days.
This case is result of an investigation by the Bureau of Indian Affairs. It is being prosecuted by Assistant U.S. Attorneys Arvo Q. Mikkanen and Matthew Anderson.
Reference is made to public filings for further information.
Local, State, and Federal Law Enforcement will Join State Prosecutors and U.S. Attorneys from South Carolina and the Southern District of Georgia at a Press Conference Tomorrow at 2:30 p.m. in Aiken, South CarolinaRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that a press conference will be held tomorrow, Tuesday, March 12, 2019, at the Aiken Public Safety Department, J. Carroll Busbee Headquarters, 834 Beaufort Street NE, Aiken, SC 29801.
Represented at the press conference will be members of the Aiken Department of Public Safety; Aiken County Sheriff’s Office; North Augusta Department of Public Safety; South Carolina Law Enforcement Division; South Carolina Department of Probation, Pardon, and Parole Services; Richmond County (GA) Sheriff’s Office; Burke County (GA) Sheriff’s Office; the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Second Circuit (SC) Solicitor’s Office; District Attorney’s Office (Augusta Judicial Circuit); and the United States Attorney’s Offices from the Southern District of Georgia and South Carolina.
NOTE: Press inquiries regarding logistics should be directed to Lance Crick, 864-282-2105. All media must present a government-issued photo ID (such as a driver’s license). Members of the media wishing to attend should gather at the media staging area at 2:00 p.m., 30 minutes in advance of the press conference.
Media Staging Area: Aiken Public Safety Department, J. Carroll Busbee Headquarters, 834 Beaufort Street NE, Aiken, SC 29801
Local Man Sentenced for Fraud and ID TheftRead the Press Release
HOUSTON – A Houston man has been ordered to prison following his convictions of theft of government money and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation (CI).
Eric W. King, 49, of Houston, and Theresa K. Goffney, 46, of Rosharon, pleaded guilty May 29 and July 9, 2018, respectively. The court found the defendants submitted a total of 179 fraudulent tax returns requesting refunds in the amount of $888,261.
Today, U.S. District Judge Nancy F. Atlas imposed a 65-month total sentence for King – 41 months for the conspiracy and a consecutive 24 months for the identity theft. He was further ordered to serve three years of supervised release following his sentence and must pay $29,264 in restitution.
Co-defendant Goffney will be sentenced Friday, March 15.
The defendants admitted they unlawfully acquired the personal identifying information (PII) of others such as name, date of birth, Social Security number and address. They then used the unlawfully acquired PII to file fraudulent tax returns in the victims’ names.
The fraudulent tax returns requested the IRS refund to be directed to bank accounts the conspirators opened and controlled, checks mailed to addresses conspirators controlled or be loaded onto prepaid debit cards they had purchased.
King was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS – CI conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Jefferson County Man Gets 14 Years in Prison for Meth OffenseRead the Press Release
Joshua A. Pearce, a/k/a "Josh," and "Junior," 32, of Mt. Vernon, Illinois, has been sentenced to 168 months imprisonment for his role in a methamphetamine conspiracy, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Pearce previously pled guilty to a one-count indictment charging him with conspiracy to distribute 50 grams or more of methamphetamine.
The indictment alleged that the offense occurred between 2017 and September 2018, in Williamson and Jefferson Counties. Evidence at the plea and sentencing hearings established that Pearce was involved with others in the unlawful distribution of ice. Ice is methamphetamine, which has a purity level of at least 80%. Pearce routinely transported dealer amounts of ice from Mt. Vernon to Herrin for distribution. At sentencing, the district court found that Pearce was responsible for the distribution of 1.7 kilograms of ice.
The investigation was conducted by the Southern Illinois Enforcement Group. The Mt. Vernon Police Department and Herrin Police Department assisted in the investigation.
This case was brought as part of Project Safe Neighborhoods (PSN), 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.
Inmate Sentenced to 6 Years in Prison for Making Threats to Harm Federal JudgeRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Craig Shults, 52, of Huntington Beach, today to six years in prison for threatening to harm a federal judge, U.S. Attorney McGregor W. Scott announced.
Shults was convicted of this offense following a December 2018 jury trial.
According to court documents and evidence at trial, in 2016 at a federal prison in Taft, California, Shults, then an inmate, made threats to assault a federal judge with the intent to retaliate against the judge for presiding over a prior criminal case involving Shults. He made the threatening communications in retaliation for, among other reasons, being remanded to custody following a bond violation hearing, and being sentenced to a substantially longer prison sentence than Shults requested. Some of Shults’s threats were captured on a recording device and presented at trial.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Angela L. Scott and Henry Z. Carbajal prosecuted the case.
IRS Employee Facing Federal Theft and Fraud ChargesRead the Press Release
NASHVILLE, Tenn.- March 11, 2019 – Tracey R. Allison, 47, of Antioch, Tennessee, was indicted last week by a federal grand jury and charged with theft of government property; five counts of wire fraud; and five counts of aggravated identity theft, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Allison, employed by the IRS at its Franklin, Tennessee office, is accused of faking military duty orders in order to receive paid leave from her employer.
According to the indictment, Allison was discharged from the U.S. Army Reserve in August 2012 and enlisted in the Tennessee National Guard on July 5, 2018. The indictment alleges that while employed by the IRS, between November 2013 and October 2018, Allison regularly submitted forms used by the Department of the Army, to the Payroll and Personnel Systems Unit of the IRS, to record reserve duty and receive payment. Each form submitted bore the forged signature and Department of Defense identification number of Allison’s former commanding officer, who was actually retired and ceased supervising Allison in July 2013.
During the five-year scheme, the indictment alleges that Allison submitted approximately 70 fraudulent forms and collected paid military leave and other benefits totaling $22,864.24, even though she had no authorized military duty status for those dates.
If convicted, Allison faces up to 20 years in prison for each count of wire fraud; up to 10 years in prison for theft of government property; and a mandatory minimum of two years in prison for each count of aggravated identity theft; and a $250,000 fine.
This case was investigated by the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty in a court of law.
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Husband and Wife Plead Guilty in Connection with Pain Clinic Pill Mill SchemeRead the Press Release
BIRMINGHAM – A Springville couple involved in a St. Clair County pill mill scheme entered dual guilty pleas today in federal court, announced U.S. Attorney Jay E. Town, Drug Enforcement Administration-Birmingham Acting Assistant Special Agent in Charge Andy Langan and Internal Revenue Service-Criminal Investigation Special Agent in Charge Thomas J. Holloman.
CINDY LOUISE HYCHE DUNN, 53, pleaded guilty to one count of conspiracy to distribute controlled substances outside the usual course of professional practice and not for a legitimate medical purpose and to one count of conspiracy to commit money laundering for purposes of promoting the pill mill scheme. Her husband, THOMAS MASON DUNN, 56, pleaded guilty to the same money laundering conspiracy. The couple entered their guilty pleas before U.S. District Judge R. David Proctor. A sentencing date has not been set.
From January 2012 through December 2015, Cindy Dunn ran a pain management clinic in Moody, Alabama operating under the name Cindy Dunn & Dr. Buckingham, M.D., Weight Loss Clinic and Pain Management (CDPM). CDPM was not a legitimate pain clinic. It was a pill mill churning out thousands of prescriptions for opioid painkillers. Thomas Dunn performed financial transactions on behalf of CDPM to further the pill mill scheme. He also received prescriptions for opioid painkillers from CDPM.
“This couple operated a pain management clinic with reckless disregard for patient safety,” U.S. Attorney Town said. “To those who continue to poison our communities by this illegal practice and enable the growth of the opioid crisis in our state, you will be caught, you will be prosecuted, and you will have a bed in federal prison.”
“This investigation demonstrates the fact that if you are a doctor in the state of Alabama and you are illegally prescribing controlled substances we will find you and you will pay a heavy price,” Acting Assistant Special Agent in Charge Langan said. “This is another example of the great teamwork between federal, state, and local law enforcement partners to positively impact the lives of the good people living in our communities.”
“Pill Mills continue to plague our communities as the illegal distribution of prescription drugs remains a profitable criminal enterprise,” Special Agent in Charge Holloman said. “IRS-CI pledges to follow the money to the profiteers and work with our partners to shut down these illegal operations. Today’s guilty pleas are a step forward in law enforcement’s efforts to address the prescription drug problem in our community”.
As part of their plea agreements, the couple will forfeit their Springville home to the United States. The agreement with Cindy Dunn stipulates a 10-year prison sentence. The agreement with Thomas Dunn stipulates a 30-month prison sentence. Judge Proctor accepted the couples’ guilty pleas today, but reserved decision on whether to accept the stipulated prison sentences until the couples’ sentencing hearings. The plea agreements entered by Cindy Dunn and Thomas Dunn with the United States are binding, meaning any party may withdraw if the court does not accept the stipulated prison sentences.
According to her plea agreement, as the owner and president of CDPM, Cindy Dunn ran its day-to-day operations, and hired and directed physicians and staff. Two doctors issued the majority of CDPM’s controlled substance prescriptions, neither were pain management specialists. John Ladd Buckingham was CDPM’s primary physician while Steven Bruce Hefter also issued prescriptions for CDPM at various times. CDPM attracted patients from all over Alabama and outside the state. Patients came from Huntsville, Muscle Shoals, Florence, and Mobile, Alabama. Patients also flocked to CDPM from Florida, Georgia, and Tennessee. CDPM received anywhere from forty to eighty patients in a single day.
CDPM typically did not treat patients with anything other than high doses of opioid painkillers, according to Cindy Dunn’s plea agreement. Prescribed opioids included fentanyl, hydrocodone, methadone, morphine, oxycodone, and oxymorphone. CDPM rarely, if ever, ordered diagnostic tests, such as x-rays or MRIs, to identify and potentially treat the source(s) of pain. Patients often received opioid prescriptions or dosage increases upon request. CDPM also issued prescriptions for a combination of drugs known as “the holy trinity,” which consists of an opioid painkiller, a muscle relaxer, and a benzodiazepine. The plea agreement states that this “cocktail” has a high potential for abuse and carries a significant risk of overdose.
According to her plea agreement, Cindy Dunn had no formal medical education, qualifications, or licensing, yet she directed, oversaw, and guided prescriptions for opioids and other controlled substances at CDPM. For example, Cindy Dunn allowed patients to continue receiving opioid prescriptions after failing multiple drug tests. She also permitted patients who admitted buying pills on the street and/or who had a history of drug abuse to receive opioid prescriptions. It further states that Cindy Dunn devised a system for pre-signing prescriptions in order to maximize revenue. CDPM staff wrote prescriptions, which the doctors signed far in advance of patient visits. The pre-signed prescriptions were then handed to patients in exchange for cash without the doctor seeing the patient. Cindy Dunn, Thomas Dunn, and others used the money generated through CDPM’s pill mill scheme to continue CDPM’s operations, according to both plea agreements.
“The Dunns had no business running a pain management clinic,” said Assistant United States Attorney Mohammad Khatib. “They harnessed the prescribing power of their physician co-conspirators for the sole purpose of making fast money. Their greed spread the opioid epidemic in Alabama and inflicted real damage on the legitimate medical community. For that, they must pay a very dear price.”
Doctor Hefter pleaded guilty for his involvement with CDPM in December 2017.
DEA and IRS-Criminal Investigation investigated the case, which Assistant U.S. Attorneys Mohammad Khatib and Robin Beardsley Mark are prosecuting.
Hershey Man Sentenced to More Than 12 Years in Prison on Bankruptcy Fraud and Loan Fraud ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Jay Jackson, age 59, formerly of Hershey, Pennsylvania, was sentenced to 145 months’ imprisonment and three years’ supervised release by U.S. District Court Judge Sylvia H. Rambo on multiple bankruptcy fraud, wire fraud, false statement, aggravated identity theft, and money laundering charges. Judge Rambo also ordered Jackson to pay $1,567, 275 in restitution and $3,000 in special assessments.
According to United States Attorney David J. Freed, Jackson pleaded guilty on November 3, 2017, to an Indictment charging him with twelve counts of wire fraud, five counts of bankruptcy fraud, nine counts of false bankruptcy declarations, and two counts of aggravated identity theft. The Indictment alleged Jackson defrauded his creditors, the Bankruptcy Court for the Middle District of PA, and his wife by filing seven Chapter 13 and 11 bankruptcy petitions, five of which under Jackson’s name, and two under his wife’s name without her knowledge or consent. The petitions contained false information regarding Jackson’s income, assets, and employment, and were filed in order to postpone multiple Sheriff’s sales of his Hershey residence. Jackson filed the last two petitions on June 3, 2015, and January 19, 2017, under his wife’s name after the Bankruptcy Court barred Jackson from filing any further petitions for two years on May 28, 2015.
Thereafter, Jackson also pleaded guilty on March 13, 2018, to a two count Information charging him with wire fraud and money laundering. The Information alleged Jackson perpetrated a bogus business venture, loan fraud scheme between 2007 and 2017 that defrauded 22 victims out of approximately $1.7 million. According to the Information, Jackson registered a corporation by the name of INTEX Building Materials Group, Inc. (INTEX BMG) with the Pennsylvania Department of State in 2007, listing himself as the sole shareholder and Chief Executive Officer of the company. Jackson defrauded his victims by convincing them he had the backing of Brookstone Partners, a New York City capital investment company, to lend him millions of dollars to acquire companies that manufactured building products. Jackson induced his victims into giving him loans to pay for his personal expenses, including his children’s college tuition, while they awaited consummation of the deal with Brookstone. Jackson promised his victims huge returns on what were supposed to be short-term loans. Jackson also provided copies of what he claimed to be e-mails from Brookstone principals that falsely represented the INTEX BMG deal was real.
In reality, INTEX BMG was a “paper” company that did not hold any significant assets, didn’t have any paid employees, and never generated any income. In order to deceive his victims, Jackson established bogus email accounts under the assumed identities of Brookstone principals and drafted fake e-mails from them. Jackson provided his victims a variety of explanations as to why the INTEX BMG did not go “live” in order to lull them into not taking action against him. Jackson would repeatedly blame the protracted delays upon the Internal Revenue Service (IRS), the U.S. Security and Exchange Commission (SEC), various state regulators and the Canadian government. Many of the victims of Jackson’s loan fraud scheme were from Central Pennsylvania.
“Thieves and fraudsters use many different methods to separate honest citizens and businesses from their hard-earned money, most often for no other reason than simple greed,” said U.S. Attorney Freed. “The brazen fraud in this case attempted to use the legal Bankruptcy process to continue to line his own pockets. I commend the fine work of our partners at IRS-Criminal Investigations and the FBI for achieving some measure of justice for Jackson’s victims.”
"The bankruptcy system is based on debtors fully disclosing their assets and liabilities,” said Guy Ficco, Special Agent in Charge of IRS Criminal Investigation. “When someone intentionally files a petition with the bankruptcy court that contains false information, they are engaging in criminal activity. The Special Agents of IRS Criminal Investigation will continue working with our law enforcement partners on these types of cases to help preserve the integrity of the bankruptcy system."
"Michael Jay Jackson blatantly abused the bankruptcy process," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "By breaking the law in an attempt to hide, and hold on to, his assets, he's instead cost himself dearly, losing his very freedom. The FBI will continue to investigate and hold accountable those who engage in such financial fraud."
The case was investigated by the Harrisburg Offices of the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Harrison County man indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kevin Alexander Miske, of Clarksburg, West Virginia, was arrested today and had his initial appearance in a federal courtroom, United States Attorney Bill Powell announced.
Miske, age 26, was indicted by a federal grand jury sitting in Clarksburg on March 5, 2019. Miske was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession of a Firearm with an Obliterated and Altered Serial Number.” Miske, having been previously convicted of a felony, is accused of having a .357 magnum revolver with an altered serial number in December 2018 in Harrison County.
Miske faces up to 10 years incarceration and a fine of up to $250,000 for the unlawful possession count and faces up to 5 years incarceration and fine of up to $250,000 for the serial number 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.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated. The United States Marshal Service made the arrest.
U.S. Magistrate Judge Michal John Aloi presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Great Falls man sentenced for illegally possessing firearmRead the Press Release
GREAT FALLS—A federal judge today sentenced Great Falls resident Marcus Wayne Logan, 44, to 14 months in prison and to three years of supervised release for illegally possessing a firearm, U.S. Attorney Kurt Alme said.
Logan pleaded guilty in October to being a prohibited person in possession of a firearm.
U.S. District Judge Brian M. Morris presided.
An investigation found that the Montana State Prison released Logan on Feb. 26, 2018 and directed him to report to the probation and parole office in Great Falls. Logan, who had two prior felony convictions and was prohibited from possessing firearms, signed a Firearms Regulation form acknowledging he was prohibited from possessing firearms. Logan checked in with probation but failed to show up for subsequent appointments. A warrant was issued for his arrest.
Law enforcement ultimately arrested Logan in a traffic stop on April 18. In a search of the vehicle, a probation officer found a loaded, .45-caliber semi-automatic pistol in a backpack belonging to Logan.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.
The 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.
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Former West Covina Resident Pleads Guilty to Advertising Pornographic Images of Children on Russian Photo-Sharing WebsiteRead the Press Release
LOS ANGELES – A former West Covina resident pleaded guilty today to knowingly creating and publishing an advertisement that sought to exchange sexually-explicit images of children on a Russian photo-sharing website frequently used to trade child pornography.
Christopher Clay Roman-Tuttle, 38, now of Spokane, Washington, who told the court he now goes by the name Christopher Clay Tuttle, faces a 15-year mandatory minimum prison sentence and a statutory maximum sentence of 30 years’ imprisonment for his guilty plea to one felony count of advertising child pornography. United States District Judge Percy Anderson scheduled a May 20 sentencing hearing.
According to Roman-Tuttle’s plea agreement, in March 2015 he created an account with a Russian photo-sharing website and used this account to knowingly publish an advertisement seeking to receive, exchange, and distribute child pornography. Roman-Tuttle admitted to posting two photo albums: one that featured non-pornographic images of a minor known to him, and one password-protected album that contained pornographic images of unknown child victims. Roman-Tuttle advertised these images by posting a statement, which read, in part, “preteens and tween’s [sic] in diapers is cool too. I’d love to meet up with a parent that wants to share their daughter (of course id make it worth their w[h]ile).”
In response to Roman-Tuttle’s advertisement, he received numerous emails over the course of two days from dozens of individuals seeking to exchange child pornography with him, the plea agreement states. Roman-Tuttle also admitted to sending and receiving images and videos of child pornography to many of these individuals, at times requesting child pornography videos depicting girls between 5 and 8 years old. In other emails, Roman-Tuttle described his desire to sexually abuse children, including the minor known to him, whom he admitted to having sexually abused in the past, according to his plea agreement. Roman-Tuttle also admitted to knowingly possessing more than 9,000 images and 330 videos of child pornography on his computer and on other devices, including images depicting the sexual abuse and exploitation of infants or toddlers. He also admitted to knowingly possessing a sexually explicit image of the minor known to him.
As part of his plea agreement, Roman-Tuttle will have to register as a sex offender, undergo counseling, and be subject to lifetime supervised release once he is out of federal prison.
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorney Damaris Diaz of the Violent and Organized Crime Section.
Former Springfield Man Sentenced for Leading Scheme to Market Dietary SupplementsRead the Press Release
SPRINGFIELD, Mo. – A former Springfield, Mo., business owner was sentenced in federal court today for his role in leading a scheme with two Nixa, Mo., residents to market an all-natural male enhancement supplement that actually contained the same active ingredient found in Viagra.
“This criminal scheme involved thousands of individual acts of fraud over several years, and distributed misbranded and dangerous products throughout the United States,” said Tim Garrison, U.S. Attorney for the Western District of Missouri. “This placed the health of an untold number of individuals at risk, because the product actually contained dangerous levels of sildenafil – the active ingredient found in Viagra – more potent than what a person could obtain through a doctor’s prescription.”
“American consumers are put at risk when the true nature of ingredients for dietary supplements is hidden,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize the public health.”
Michael S. Schindele, 44, of Jacksonville, Fla., was sentenced by U.S. Chief District Judge Beth Phillips to three years and one month in federal prison without parole. The court also ordered Schindele to forfeit $47,930, which represents his profit from the scheme.
On Aug. 15, 2018, Schindele pleaded guilty to one count of wire fraud and one count of delivering adulterated or misbranded food. Schindele, the owner and operator of Executive Image International, operated a website that sold dietary supplements and drugs to the general public. He worked through businesses owned and operated by co-defendants John G. Schindele, 42 (his brother), and Jennifer S. Travis, 46, both of Nixa, to sell dietary supplements, which they claimed contained only all-natural ingredients. John Schindele and Travis both pleaded guilty, in separate but related cases, and were each sentenced to five years of probation.
Among the many supplements sold by Michael Schindele was Silver Bullet, marketed as an “all-natural male performance enhancer,” an “Extreme Male Stimulant,” and a “dietary supplement.” In reality, Silver Bullet contained materially different ingredients than what was listed, including sildenafil, a synthetic pharmaceutical ingredient that was not disclosed to consumers purchasing the product.
Sildenafil is the active pharmaceutical that is commonly used in the erectile dysfunction drug Viagra. The labeling for Silver Bullet failed to provide adequate warnings about the use of a sildenafil-containing product, which is only legally available with a prescription from a doctor. Michael Schindele was not authorized or licensed to sell this pharmaceutical.
Michael Schindele’s misrepresentations resulted in him, Executive Image International, Schindele Enterprises, and Midwest Wholesale obtaining at least $150,000 from consumers. Michael Schindele, personally, received at least $47,930, which must be forfeited to the government.
Michael Schindele directed the purchase of sildenafil from a supplier in the People’s Republic of China. He directed hundreds, if not thousands, of mass mailings of misleading and fraudulent advertisements claiming the product was “all natural,” which included samples of the tainted products. He coordinated the sale of the tainted products through his brother, John Schindele, and Travis over several years. Michael Schindele also directed his brother to use the proceeds from these fraudulent sales to pay for his personal expenses and transfer the cash in order to conceal his involvement in the fraud.
After he moved to Jacksonville, according to court documents, Michael Schindele started another business to perpetrate the same criminal fraud. He hired another person in the state of Georgia to handle the mailings and distribution of the illegal product. The new operation fraudulently sold dangerous misbranded food products that contained sildenafil and tadalafil at higher than normal levels that a reasonable physician would initially prescribe. In fact, there is not a combination pill currently approved by the FDA that contains both drugs, as they are created by different manufacturers.
During the time of the fraud scheme, which operated from Oct. 11, 2011, through Jan. 6, 2014, Michael Schindele also pleaded guilty in a separate and unrelated case to the misdemeanor offense of introducing an unapproved animal drug. Schindele admitted that he sold heartworm tablets that were produced in Australia and had not been approved for sale in the United States, and which required a veterinarian’s prescription. Federal agents seized 1,368 doses of the heartworm tablets from Michael Schindele’s EZBody store in Springfield. Michael Schindele was sentenced for that offense on July 17, 2012, to one year of unsupervised probation.
According to court documents, Michael Schindele recruited his brother and Travis to become the face of the operation after he became aware of the government’s investigation into this earlier criminal enterprise.
According to his plea agreement, John Schindele fraudulently received $210,000 for the misrepresented and mislabeled dietary supplements from April 16, 2012, to July 8, 2015. According to her plea agreement, Travis fraudulently received $152,862 for the misrepresented and mislabeled dietary supplements from June 2, 2014, through Jan. 31, 2017.
These cases were prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Patrick Carney. They were investigated by the U.S. Food and Drug Administration’s Office of Criminal Investigations (OCI).
Former Sheriff’s Deputy Sentenced to 87 Months for Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Peter Farnum, age 42, of Clifton Park, New York, was sentenced today to 87 months in prison, to be followed by a 20-year term of supervised release, for possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The sentence follows Farnum’s June 5, 2018 conviction, after a two-week jury trial, for possession of child pornography. The evidence at trial established that Farnum, a former sergeant with the Saratoga County Sheriff’s Office, possessed more than 1,000 image and video files on his family computer that contained child pornography. These included, among many others, image files that Farnum imported through the computer’s RealPlayer application while he conducted online research related to his position with the Sheriff’s Office and while his wife was in the hospital. Senior United States District Judge Norman A. Mordue presided over the trial and imposed today's sentence.
This case was investigated by the FBI and its Child Exploitation Task Force, with assistance from the Saratoga County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers. Former Assistant U.S. Attorney Joseph A. Giovannetti prosecuted the case to trial.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Nevada Senate Majority Leader Pleads Guilty to Misusing $250,000 of Donor Money for Personal ExpensesRead the Press Release
LAS VEGAS, Nev. – Nevada State Senate Majority Leader Kelvin Atkinson, who resigned his position last week, pleaded guilty in federal court to a wire fraud scheme involving the misuse of at least $249,000 of donor money on personal expenses. Those expenses included operating a Las Vegas night club, payments to personal credit cards, and leasing a luxury car.
United States Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI Las Vegas Office, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation made the announcement.
“In the Silver State, the vast majority of public officials serve with integrity. They serve others, not their own self-interests,” said United States Attorney Trutanich. “Public service is a public trust. And when federal law enforcement learn of potential violations of that trust, justice requires us to do our level best to conduct a fair and dispassionate inquiry into the facts.”
“Rooting out corruption is exceptionally difficult, but it is a top criminal priority for the FBI,” said Special Agent in Charge Rouse. “Public corruption erodes public confidence and undermines the strength of our democracy. The FBI, along with our law enforcement partners, will continue to aggressively investigate elected officials who choose to exploit the public’s trust for their personal gain.”
“Public corruption erodes the trust and confidence the public has for our elected officials,” said Special Agent in Charge Sullivan. “IRS Criminal Investigation will continue to investigate individuals who violate that trust.”
Before his resignation, Atkinson, 49, represented District 4. He was elected to Nevada State Senate in November 2012, having previously served in the Nevada State Assembly since November 2002. He was named the Senate’s Majority Leader in November 2018.
Atkinson admitted that, from at least January 2010 to about December 2017, he devised a scheme to mislead donors contributing to his campaign by falsely representing to them that he would use donations for lawful campaign purposes. But in reality, Atkinson misused contributions in his campaign account for personal expenses and not for legitimate campaign purposes.
According to the plea agreement and today’s court proceedings, the manner in which Atkinson withdrew the money, how he spent the money, where he spent it, the age of certain transactions, and his failure to keep adequate records, make Atkinson’s precise fraud amount presently indiscernible. In total, however, Atkinson admitted that he spent nearly $250,000 of unreported withdraws on personal expenses and not for legitimate campaign purposes. Atkinson’s personal spending of campaign funds included $100,000 in payments to his personal credit cards, $75,000 towards opening and operating a Las Vegas night club, and $20,000 on leasing a Jaguar Sports Utility Vehicle, among many other personal expenditures.
Atkinson remains out of custody pending sentencing, which is scheduled for July 11, 2019. The statutory maximum term of imprisonment for wire fraud is 20 years. He has agreed to pay $249,900 in restitution.
The case was investigated by the FBI and IRS Criminal Investigation. Assistant United States Attorney Daniel R. Schiess is prosecuting the case.
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Former Logan County Deputy Sheriff Pleads Guilty to Overtime FraudRead the Press Release
OKLAHOMA CITY – Former Logan County Deputy Sheriff DOYLE ALLEN BAKER, 31, of Weatherford, Texas, has pleaded guilty to theft from a federal transportation grant, announced Robert J. Troester of the U.S. Attorney’s Office.
On November 7, 2018, a federal grand jury indicted Baker for stealing more than $5,000 from federal grant funds administered by the Oklahoma Highway Safety Office ("OHSO"), part of the Oklahoma Department of Transportation. The National Highway Traffic Safety Administration, part of the U.S. Department of Transportation, provided these funds to OHSO, which passed them on to the Logan County Sheriff’s Office.
According to the indictment, as a Deputy Sheriff, Baker knew these federal funds could be used only to pay for employees working outside regular duty hours. From July to September of 2016, he allegedly submitted fraudulent timesheets that represented he worked overtime hours he did not in fact work. The indictment states he hid the fraudulent nature of more than $5,000 in overtime hours by submitting fake citations and warnings.
On March 7, 2019, Baker pleaded guilty to the indictment before U.S. District Judge Stephen P. Friot.
The maximum penalty that could be imposed as a result of this guilty plea is ten years in prison and a fine of $250,000. Baker could also face up to three years of supervised release and will be required to pay restitution. Sentencing will take place in approximately ninety days.
This case is result of an investigation by the U.S. Department of Transportation—Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Rozia McKinney-Foster.
Reference is made to public filings for further information.
Former KPMG Executive and Former PCAOB Employee Convicted of Wire Fraud for Scheme to Steal and Use Confidential PCAOB InformationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID MIDDENDORF, who was the National Managing Partner for audit quality at the accounting firm KPMG LLP (“KPMG”), and JEFFREY WADA a former employee of the Public Company Accounting Oversight Board (the “PCAOB”), were convicted of wire fraud charges in connection with their scheme to defraud the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections.
U.S. Attorney Geoffrey S. Berman said: “As this trial revealed, David Middendorf and Jeffrey Wada were two links in a chain of corruption, where confidential PCAOB inspection information was taken at the behest of high-level executives at KPMG so they could cheat on inspections. This confidential information was critical to the PCAOB and its core mission of ensuring audit quality. As a unanimous jury found, the actions of Middendorf and Wada defrauded the PCAOB.”
According to the evidence presented during the trial:
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms (“Auditors”) with respect to the financial statements of publicly traded companies (“Issuers”). The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review, commonly referred to as an inspection. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an Auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections, and in 2014 received approximately twice as many comments as its competitor firms. By at least in or about 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel. At the time, MIDDENDORF was head of KPMG’s National Office, also known as the Department of Professional Practice (the “DPP”), which was broadly responsible for the quality of KPMG’s audits and KPMG’s performance in PCAOB inspections.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, MIDDENDORF and others worked illicitly to acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected in an effort to game the system and improve inspection results. For example, beginning in 2015, Brian Sweet, a former PCAOB employee who had joined KPMG, provided MIDDENDORF, Thomas Whittle, and others with the PCAOB’s confidential 2015 list of inspection selections, at MIDDENDORF’s request, so that the information could be used by MIDDENDORF, Whittle, and others, to improve KPMG’s performance on PCAOB inspections.
WADA was an Inspections Leader at the PCAOB, who was obligated to keep confidential the PCAOB’s nonpublic information. WADA joined the conspiracy in the fall of 2015 and began passing confidential information to KPMG. In March 2016, WADA provided Cynthia Holder, a KPMG employee, with confidential information on certain of the PCAOB’s 2016 inspection selections. Holder, in turn, provided the 2016 inspection selections to Sweet, who passed them to MIDDENDORF, Whittle, and others. MIDDENDORF, Whittle, Sweet, and others then agreed to launch a stealth program to “re-review” the audits that had been selected, and agreed to keep their stealth re-reviews within their “circle of trust.” In order to cover up their illicit conduct, other KPMG engagement partners were given a false explanation for the re-reviews. The stealth re-review program allowed KPMG to strengthen its work papers.
In January 2017, WADA, who had been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to Holder, referring to it in a voicemail as the “grocery list.” At the same time, WADA provided Holder with his resume and sought her assistance in helping him to acquire employment at KPMG. Sweet internally shared the preliminary inspection selections provided by WADA with Whittle, another co-conspirator, who in turn shared it with MIDDENDORF, who approved its use to improve the audits on the list.
In February 2017, WADA texted Holder saying, “I have the grocery list. . . . All the things you’ll need for the year.” WADA then spoke to Holder and provided her with the full confidential 2017 final inspection selections. Holder again shared the stolen information with Sweet, who shared it with MIDDENDORF, Whittle, and others, so that it could be acted upon to improve the audits on the list.
In 2017, a KPMG partner learned from Sweet that one of her audits was on the PCAOB inspection list, and she reported the matter to her supervisor. The matter was then ultimately reported to KPMG’s Office of General Counsel.
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MIDDENDORF, 54, was convicted of one count of conspiracy to commit wire fraud (Count Two) and three counts of wire fraud (Counts Three, Four, and Five). WADA, 43, was convicted of one count of conspiracy to commit wire fraud (Count Two) and two counts of wire fraud (Counts Four and Five). The conspiracy to commit wire fraud and wire fraud charges each carry a maximum prison term of 20 years. MIDDENDORF and WADA were each acquitted of one count of conspiracy to defraud the United States (Count One).
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Berman praised the outstanding investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Amanda Kramer, and Jordan Estes are in charge of the prosecution.
Former Fifth Circuit Director of Communications Sentenced in Federal Court for FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Nicole Halliett Holland, age 50, former Director of Communications for the Fifth Circuit Solicitor’s Office and a resident of Columbia, South Carolina, was sentenced to three years probation after pleading guilty to committing Wire Fraud and Mail Fraud. Senior United States District Court Judge Cameron McGowan Currie presided. Holland also was ordered to pay $11,164.60 in restitution to the Solicitor’s Office.
Facts presented in court established that from 2011 to March 2018, Holland was employed by Daniel Edward Johnson at the Fifth Circuit Solicitor’s Office. During her time of employment, Nicole Holland used Solicitor’s Office funds to pay for personal expenses.
Using a Solicitor’s Office credit card issued to her for office-related expenses, she made the following unauthorized purchases, among others:
• In May 2017, various hotel stays at the Hampton Inn and Suites in Hopkinsville, Kentucky, totaling over $2,700. These charges correlate to Count 11 of the Indictment, which is the wire fraud for the August 7, 2017, payment covering these personal expenses.
• In March 2017, a $1,020 expense for a family member’s orthodontics treatment that Holland labelled as “tournament sponsorship.” This charge correlates to Count 19, the mailing of the Bank of America statement ending on March 8, 2017, which contained this expense.
The Federal Bureau of Investigation (FBI) and South Carolina Law Enforcement Division (SLED) investigated the case. Assistant United States Attorneys Winston D. Holliday, Jr., Alyssa L. Richardson, and William C. Lewis of the Columbia office prosecuted the case.
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Former Credit Union Lending Director Charged with Bank Fraud, Aggravated Identity Theft, and Filing False Tax ReturnsRead the Press Release
TALLAHASSEE, FLORIDA – Kevin Robert Lee, 35, of Tallahassee, Florida, was arraigned on Friday in the U.S. District Court in Tallahassee after a federal grand jury returned an indictment charging him with twenty counts of bank fraud, aggravated identity theft, theft from a lending institution, and three counts of filing a false tax return. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The indictment alleges that Lee was the lending director of FSU Credit Union (FSUCU), a Tallahassee-based credit union, a position that allowed him to open new customer accounts and approve lines of credit. The indictment also alleges that Lee served as treasurer of the Tallahassee Chapter of Credit Unions (TCCU), a non-profit organization that advocates pro-credit union legislation.
The indictment further alleges that, between June 2014 and November 2017, Lee fraudulently opened customer accounts at FSUCU using the names, dates of birth, and social security numbers of three individuals without their consent or knowledge, and in doing so, that Lee forged their signatures and fraudulently opened lines of credit for those accounts. Further, Lee is alleged to have made unauthorized withdrawals and transfers of funds from the accounts of approximately 20 FSUCU customers, which were deposited into the three fraudulently opened accounts. The indictment also alleges that Lee used the embezzled funds and fraudulently obtained loan proceeds to pay his personal creditors (such as for his home mortgage and credit cards) and to conceal his embezzlement. In total, Lee allegedly obtained or attempted to obtain more than $800,000. Lee also allegedly submitted false tax returns for the 2015-2017 calendar years.
The maximum penalty for bank fraud is 30 years in prison. Lee faces a 2-year mandatory minimum prison sentence for aggravated identity theft. The trial is scheduled for April 15, 2019, at 8:15 a.m. at the United States Courthouse in Tallahassee.
This case resulted from an investigation by the Florida Department of Law Enforcement and the Internal Revenue Service – Criminal Investigation, after being alerted by FSU Credit Union. Assistant United States Attorney Justin M. Keen is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Father and Son Convicted of Multimillion-Dollar Investment Fraud SchemeRead the Press Release
A federal jury in Birmingham, Alabama found a father and son guilty Friday of multiple charges for their roles in investment fraud and bank fraud schemes in which they stole over $10 million from individual investors—including multiple former professional athletes—and Alamerica Bank of Birmingham, Alabama.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI Birmingham Field Office made the announcement.
Donald Watkins Sr., 70, of Atlanta, Georgia, was convicted on seven counts of wire fraud, two counts of bank fraud and one count of conspiracy. Donald Watkins Jr., 46, of Birmingham was convicted on one count of wire fraud and one count of conspiracy. Sentencing is set for July 16 before U.S. District Court Judge Karon O. Bowdre of the Northern District of Alabama, who presided over the trial.
“The jury’s verdict today sends a clear message: Donald Watkins Sr. and Donald Watkins Jr. are frauds, plain and simple,” said Assistant Attorney General Benczkowski. “They induced their victims to part with more than $10 million of supposed ‘investment capital’ and used it to support their lavish lifestyle. I want to thank the prosecutors and law enforcement agents for their hard work investigating and prosecuting this case.”
“This was a case about deception and greed at the expense of too many,” said U.S. Attorney Town. “The findings of guilt for these two individuals should forewarn anyone who would seek to defraud investors so brazenly. We appreciate the labor of the jurors whose role as citizens in this process is so critical to our system of justice. We are also grateful to the Alabama Securities Commission and the Department of Justice’s Fraud Section for allowing their personnel to engage in this prosecution.”
“Both of the men found guilty today are financial predators who truly represent pure greed,” said FBI Special Agent in Charge Sharp. “We are pleased that the defendants in this case are being held accountable for their crimes and we will continue to work with our law enforcement partners to investigate and prosecute those who commit these types of financial crimes.”
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid millions of dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol. Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures. The evidence showed that victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet and clothing purchased by Donald Watkins Jr. and his wife. Emails introduced at trial also showed that Donald Watkins Jr. and Donald Watkins Sr. planned to obtain millions of dollars for these purposes from one victim on multiple occasions, when they knew that their victims trusted them to put their money to use in growing Masada. The defendants’ scheme eventually grew to include another business venture, Nabirm Global, a company that Donald Watkins Sr. claimed held mineral rights in Namibia.
Donald Watkins Sr. also defrauded Alamerica Bank, an entity in which Donald Watkins Sr. was the largest shareholder, the evidence showed. In order to pay hundreds of thousands in litigation expenses associated with another one of Donald Watkins Sr.’s business ventures, the defendants, Donald Watkins Sr. executed a plan to use a straw borrower to take out money from Alamerica Bank and give it to them. This straw borrower—Donald Watkins Sr.’s long-time mentor and a prominent figure in the Birmingham community—took over $900,000 in loans from Alamerica Bank and then immediately permitted Donald Watkins Sr. and Donald Watkins Jr. to use those funds for their personal benefit.
The investigation was conducted by the FBI’s Birmingham Field Office. Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Lloyd C. Peeples III, Special Assistant U.S. Attorney Beau Brown (on detail from the Alabama Securities Commission) and Special Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama prosecuted the case.
Fall River Man Sentenced for Tiverton Bank RobberyRead the Press Release
ROVIDENCE - A Fall River, Mass., man who admitted to robbing a Tiverton, R.I., bank in October 2017 was sentenced today in U.S. District Court in Providence to 48 months in federal prison.
Justin M. Davis, 36, previously admitted to the Court that on October 11, 2017, he passed a note to a teller at a branch office of Bank Newport which read “All $100 50, Empty Draw, No Dye packs, No Alarms.”
After the teller handed Davis $4,920 in cash, he ran from the bank toward a nearby cemetery and was seen on surveillance video leaving the area in a vehicle. A short time later, Tiverton police recovered a piece of clothing from the cemetery Davis wore during the robbery. Shortly thereafter, Fall River Police stopped the vehicle Davis was operating. From inside the vehicle police recovered other items of clothing Davis wore during the bank robbery and $3,470 in cash in the same denominations as those stolen during the robbery.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Davis to serve 3 years supervised release upon completion of his term of incarceration. He pled guilty on September 21, 2018, to a charge of bank robbery.
Davis’ sentence is announced by United States Attorney Aaron L. Weisman, Tiverton Police Chief Patrick Jones, and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the Tiverton Police Department and the FBI.
Fair Oaks Man Sentenced to 4 years in Prison for Conspiring to Sell Stolen Credit Card Information and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Mkrtych “Mike” Sargsyan, 55, of Fair Oaks, was sentenced today by Senior U.S. District Judge William B. Shubb to four years in prison for conspiring to sell stolen credit card information and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, between September 2015 and April 2016, Sargsyan and others agreed to obtain and sell stolen credit card information. On three occasions, Sargsyan traveled to Southern California to obtain electronic storage devices containing stolen credit card numbers and corresponding account holder information. Sargsyan then delivered that information to a buyer in Southern California and Rancho Cordova. During the course of the conspiracy, Sargsyan and his co-conspirators obtained information related to 587 credit card accounts.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
Driver of Ridesharing Service Pleads Guilty in White Plains Federal Court to Kidnapping A RiderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that HARBIR PARMAR pled guilty in White Plains federal court to kidnapping and wire fraud. PARMAR was arrested on October 16, 2018, and pled guilty today before U.S. District Judge Vincent L. Briccetti.
U.S. Attorney Geoffrey S. Berman said: “Last year, Harbir Parmar took advantage of a vulnerable woman who utilized a ridesharing service by kidnapping and terrorizing her. In addition, he charged many of his ridesharing customers with fraudulent fees. Today, he admitted his guilt in open court, and will now be held accountable for his brazen crimes.”
According to the Indictment and statements made during today’s plea proceedings:
On February 21, 2018, PARMAR, who worked as a driver for a ridesharing company (“Company-1”), picked up an individual (“Victim-1”) in Manhattan, New York, who sought to be driven to White Plains, New York. After Victim-1 fell asleep in the backseat of the vehicle, PARMAR changed Victim-1’s destination in Company-1’s mobile application to an address in Boston, Massachusetts, and proceeded to drive toward that location. When Victim-1 awoke, the vehicle was in Connecticut. Victim-1 requested that she be taken to White Plains or to the police station, but PARMAR refused. PARMAR instead dropped Victim-1 off on the side of I-95 in Branford, Connecticut. Victim-1 went to a nearby convenience store where she sought assistance.
In addition, from December 2016 through February 2018, PARMAR sent false information about the destinations of Company-1’s customers through Company-1’s mobile application on several occasions. At times, he also sent false information about the application of a cleaning fee to be applied to the accounts of Company-1’s customers. In these instances, customers of Company-1 filed complaints with Company-1 about being overcharged for their rides. These instances have resulted in thousands of dollars in improper charges to the accounts of Company-1’s customers.
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PARMAR, 25, of Howard Beach, New York, pled guilty to one count of kidnapping, which carries a maximum sentence of life in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PARMAR is scheduled to be sentenced by United States District Judge Vincent L. Briccetti Honorable Vincent L. Briccetti on June 24, 2019.
Mr. Berman praised the outstanding investigative work of FBI’s Westchester County Safe Streets Task Force, which comprises investigators from the FBI, U.S. Probation Office, New York State police, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, the New York City Police Department, Yonkers Police Department, Greenburgh Police Department, Mount Vernon Police Department, and the Peekskill Police Department.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jamie Bagliebter is in charge of the prosecution.
District of South Carolina Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
Columbia, South Carolina – Attorney General William P. Barr and United States Attorney Sherri A. Lydon today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
United States Attorney Lydon stated, “Our office is fully committed to the protection of the elderly as a part of the national Elder Fraud Initiative (EFI). Our prosecutors work day in and day out with law enforcement partners to protect the most vulnerable members of our society from harm. I thank Attorney General Barr and the Department of Justice for their leadership in putting a stop to elder fraud schemes.”
United States Attorney Lydon has appointed an Assistant United States Attorney (AUSA) as her statewide EFI coordinator and has designated an AUSA in each of the Columbia, Charleston, Florence, and Greenville Offices to lead the EFI efforts in their regions. Two cases prosecuted by the U.S. Attorney’s Office for the District of South Carolina in the last year demonstrate that the EFI effort goes after anyone who seeks to harm the elderly financially, no matter how small or large the loss.
Lashonda Ravenell, age 29, of Charleston, South Carolina, pleaded guilty to a fraud charge in federal court after obtaining credit card information from a resident at the care facility where she worked and stealing $30,786.62 from him.
Melvin Wimmer, Jr., age 53, of Greenwood, South Carolina, is serving 75 months in federal prison after pleading guilty to a securities fraud scheme that targeted numerous elderly people. Mr. Wimmer, an “investment advisor,” talked his victims into investing their retirement savings with him. After obtaining approximately $3.6 million from them, he managed to lose $3 million of it through high-risk trading. At no time did he ever advise his clients of the risk to their money, and after losing the money he kept the venture going by providing his investors with bogus earnings statements to keep them in the game, to use a conman’s phrase. Wimmer will be under court-ordered supervision for five years when he is released from prison.
The U.S. Attorney’s Office’s EFI team has reached out to and is coordinating with numerous federal, state, and local groups that are committed to protecting the elderly from all types of abuse. Additionally, members of the EFI team are available to make educational presentations to any group throughout the State.
United States Attorney Lydon would invite the public to visit her office’s EFI website at https://www.justice.gov/usao-sc/elder-justice-initiative. Additionally, reports of elder fraud may be made by calling any of the U.S. Attorney’s Offices in South Carolina and asking to speak to an elder fraud attorney.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
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Department of Justice FY 2020 Budget RequestRead the Press Release
President Trump’s FY 2020 Budget proposal totals $29 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local, and tribal law enforcement partners. The request represents a comprehensive investment in the Justice mission and includes increases in funding for strengthening security efforts to reduce violent crime, enforce the nation’s immigration laws, combat the opioid epidemic, and continues its commitment to National Security.
“The men and women of the Department of Justice perform critical duties every day that keep the American people safe, protect civil rights, and uphold the rule of law,” said Attorney General William P. Barr. “Over the past year, federal prosecutions of violent offenses, drug offenses, firearm offenses, immigration violations, and white collar crimes have all gone up while violent crime nationally has gone down. The President’s budget request increases our resources for fighting the opioid epidemic, transnational organized crime, violent crime, illegal immigration, and cybersecurity threats, and I urge our representatives in Congress to pass it into law.”
The Department of Justice’s areas of investment include:
- +$290.5 million in program enhancements and transfers to fight the opioid crisis and support law enforcement safety. Additional resources will be devoted to combatting transnational criminal organizations, known for supplying illicit substances to the United States.
- +$137.9 million to strengthen federal law enforcement’s ability to reduce violent crime.
- +$72.1 million in immigration related program enhancements to enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration.
- +$132.0 million in program enhancements to address critical national security and cyber threats.
- $4.3 billion in discretionary and mandatory funding for federal grants to state, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the Public Safety Partnership Program and the Project Safe Neighborhood Program, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement.
For more information, view the FY 2020 Budget and Performance Summary at https://www.justice.gov/doj/fy-2020-budget-and-performance-summary.
Drug Enforcement and the Opioid Crisis
The United States is in the midst of the deadliest drug epidemic in American history. According to the Centers for Disease Control and Prevention (CDC), more than 70,200 Americans died from drug overdoses in 2017, a 10 percent increase from the previous year.[1] Over 47,600, or over two-thirds, of these overdose deaths were caused by heroin, fentanyl, and prescription opioids. The President declared a National Public Health Emergency in October 2017, and the Department remains committed to doing its part to protect the American people from the impact of drugs and drug-related crime nationwide.
The FY 2020 budget requests $291 million in program enhancements and transfers to combat the opioid crisis and bolster drug enforcement efforts. These resources enable the Department to target the drug trafficking organizations responsible for opioid abuse and drug-related violence in our communities. It also bolsters the capacity of Department agents to deny revenues to drug traffickers using the best cyber capabilities and technologies, enabling the Department to keep pace with these nefarious actors.
For more information, view the Drug Enforcement and the Opioid Crisis Fact Sheet at https://www.justice.gov/doj/fy-2020-budget-fact-sheets.
Combating Violent Crime
Protecting the American people from violent crime is a top priority for the Department of Justice. Unfortunately, in recent years, crime has been on the rise throughout the country. FBI statistics show that, in 2015 and 2016, the United States experienced the largest increases in violent crime in a quarter-century.[2] Over those two years, violent crime increased by nearly 7 percent. Robberies, assaults, and rapes all increased, and murder increased by a shocking 20 percent.
In 2017 and 2018, the Department revitalized Federal efforts to fight violent crime, including the launch of the enhanced Project Safe Neighborhoods initiative, which brings together all levels of law enforcement and the communities they serve to develop effective, locally-based strategies to reduce violent crime. In FY 2018, the Department prosecuted the greatest number of violent criminals in at least 25 years—since the Department began tracking “violent crime” as a category.
The FY 2020 budget requests $137.9 million in program enhancements to reduce violent crime and combat transnational criminal organizations. The Department of Justice is committed to restoring law and order by providing Federal resources where they are most needed and most effective. These resources will enable the Department to dismantle the worst criminal organizations, target the most violent offenders, and protect the public.
For more information, view the Combating Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2020-budget-fact-sheets.
Enforce Immigration Laws
The FY 2020 budget strengthens the Nation’s security through stronger enforcement of the Nation’s immigration laws. The Department is requesting $72.1 million in immigration related program enhancements for FY 2020, which will enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration to the United States by expanding capacity, improving efficiency, and removing impediments to the timely administration of justice. This budget supports the Department’s efforts, along with our partners at the Department of Homeland Security, to fix our immigration system.
For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2020-budget-fact-sheets.
National Security and Cyber
National security remains the Department’s highest priority. Threats are constantly evolving, requiring additional investments to mitigate those threats in innovative ways. Terrorists seek to sabotage critical infrastructure; organized crime syndicates seek to defraud banks and corporations; and spies seek to steal defense and intelligence secrets and intellectual property. Each threatens our nation’s economy and security.
The FY 2020 budget supports the Department in responding to those evolving threats by dedicating $132 million to provide program enhancements for areas of 1) Cyber, 2) Counterterrorism, 3) Counterintelligence, and 4) Dignitary Protection.
State, Local, and Tribal Assistance
The Justice Department is solidly committed to the President’s initiatives to reduce violent crime and address the opioid epidemic. Federal law enforcement officers constitute only 15 percent of the total number of law enforcement officers nationwide; therefore, 85 percent of the officer support relies upon strong partnership with state and local law enforcement. The Department supports its partners in state and local law enforcement, who have critical intelligence about violent crime in their communities, and whose actions are crucial in the fight against violent crime and the opioid epidemic.
The FY 2020 budget continues its commitment to state, local and tribal law enforcement by investing approximately $4.3 billion in discretionary and mandatory funding in programs to assist them. Funding has been prioritized to meet the most pressing law enforcement concerns – violent crime and opioid abuse – and to help the victims of crime.
For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2020-budget-fact-sheets
[1] Hedegaard H. Drug Overdose Deaths in the United States, 1999-2017. NCHS Data Brief, no 329. Hyattsville, MD: National Center for Health Statistics. 2019. Available from: https://www.cdc.gov/nchs/data/databriefs/db329_tables-508.pdf
[2] U.S. Dep’t of Justice, Fed. Bureau of Investigation, Crime in the United States, 2016: Table 1 & n.6, https://ucr.fbi.gov/crime-in-the-u.s/2016/crime-in-the-u.s.-2016/tables/table-1; for data years prior to 1995, see U.S. Dep’t of Justice, Fed. Bureau of Investigation, UCR Data Tool, https://www.ucrdatatool.gov/index.cfm.
Covidien to Pay over $17 Million to the United States for Allegedly Providing Illegal Remuneration in the Form of Practice and Market Development Support to PhysiciansRead the Press Release
Covidien LP has agreed to pay $17,477,947 to resolve allegations that it violated the False Claims Act by providing free or discounted practice development and market development support to physicians located in California and Florida to induce purchases of Covidien’s vein ablation products, the Department of Justice announced today.
“Today’s settlement serves as an important reminder to those in the health care community that unlawful kickbacks come in many forms and are not limited to monetary payments to providers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Providing free or discounted services to health care providers to induce the use of certain items or services can lead to excessive and unnecessary treatments, and drive up health care costs for everyone.”
“Patients in federal health care programs deserve medical care that is free from improper financial incentives,” said U.S. Attorney David L. Anderson for the Northern District of California. “As this case makes clear, companies must steer clear of violating the Anti-Kickback Statute or risk being pursued.”
The United States alleged that Covidien violated the Anti-Kickback Statute and, correspondingly, the False Claims Act by providing practice development and market development support to health care providers located in California and Florida from Jan. 1, 2011, through Sept. 30, 2014, to induce those providers to purchase ClosureFASTTM radiofrequency ablation catheters that were billed to Medicare and to the California and Florida Medicaid programs. ClosureFastTMcatheters are used in procedures that treat venous reflux disease, a disease often marked by the presence of varicose veins. The practice and market development support Covidien provided included customized marketing plans for specific vein practices; scheduling and conducting “lunch and learn” meetings and dinners with other physicians to drive referrals to specific vein practices; and providing substantial assistance to specific vein practices in connection with planning, promoting, and conducting vein screening events to cultivate new patients for those practices.
The Anti-Kickback Act prohibits the payment of remuneration to induce the referral or use of items or services paid for by federal health care programs. Remuneration includes not only cash payments but also offers or payments made “in kind.”
“The government contended that Covidien provided discounted or free services to health providers – and so hoped to evade kickback charges,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Companies seeking to buy clients through such arrangements can expect to pay a steep price.”
“Kickback schemes don’t just victimize those directly involved, they undermine the public’s trust in our healthcare system and drive up costs for everyone,” said FBI San Francisco Special Agent in Charge John F. Bennett, “This significant settlement sends a clear message: healthcare providers who engage in this kind of activity and put their own greed before the needs of their patients will be aggressively pursued by the FBI and our federal partners.”
Under the settlement agreement, Covidien will pay an additional $1,474,892 to California and $1,047,160 to Florida for claims settled by these state Medicaid programs. The Medicaid program is a jointly funded federal and state program.
The settlement resolves allegations contained in lawsuits filed by Erin Hayes and Richard Ponder (former sales managers for Covidien) and Shawnea Howerton (a former employee of one of Covidien’s customers), which are pending in federal court in San Francisco, California. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in any recovery. Mr. Hayes and Mr. Ponder will receive $3,146,030 as their share of the federal recovery.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation, as well as the California Attorney General’s Office and the Florida Attorney General’s Office. Covidien cooperated in the government’s investigation, including by sharing the results of its extensive internal investigation and by assisting in the development of a sophisticated damages model, and received credit for its cooperation.
The cases are captioned United States ex rel. Hayes, et al. v. Covidien, Inc., et al., Case No. C 14-1511-EDL (N.D. Cal.), and United States, et al. ex rel. Howerton v. Covidien, et al., Case No. C 15-0559-EDL (N.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Covidien to Pay over $17 Million to the United States for Allegedly Providing Illegal Remuneration in the Form of Practice and Market Development Support to PhysiciansRead the Press Release
SAN FRANCISCO – Covidien LP has agreed to pay $17,477,947 to resolve allegations that it violated the False Claims Act by providing free or discounted practice development and market development support to physicians located in California and Florida to induce purchases of Covidien’s vein ablation products, the Department of Justice announced today.
“Patients in federal health care programs deserve medical care that is free from improper financial incentives,” said U.S. Attorney David L. Anderson for the Northern District of California. “As this case makes clear, companies must steer clear of violating the Anti-Kickback Statute or risk being pursued.”
“Today’s settlement serves as an important reminder to those in the health care community that unlawful kickbacks come in many forms and are not limited to monetary payments to providers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Providing free or discounted services to health care providers to induce the use of certain items or services can lead to excessive and unnecessary treatments, and drive up health care costs for everyone.”
The United States alleged that Covidien violated the Anti-Kickback Statute and, correspondingly, the False Claims Act by providing practice development and market development support to health care providers located in California and Florida from Jan. 1, 2011, through Sept. 30, 2014, to induce those providers to purchase ClosureFASTTM radiofrequency ablation catheters that were billed to Medicare and to the California and Florida Medicaid programs. ClosureFastTM catheters are used in procedures that treat venous reflux disease, a disease often marked by the presence of varicose veins. The practice and market development support Covidien provided included customized marketing plans for specific vein practices; scheduling and conducting “lunch and learn” meetings and dinners with other physicians to drive referrals to specific vein practices; and providing substantial assistance to specific vein practices in connection with planning, promoting, and conducting vein screening events to cultivate new patients for those practices.
The Anti-Kickback Act prohibits the payment of remuneration to induce the referral or use of items or services paid for by federal health care programs. Remuneration includes not only cash payments but also offers or payments made “in kind.”
“The government contended that Covidien provided discounted or free services to health providers — and so hoped to evade kickback charges,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Companies seeking to buy clients through such arrangements can expect to pay a steep price.”
“Kickback schemes don’t just victimize those directly involved, they undermine the public’s trust in our healthcare system and drive up costs for everyone,” said FBI San Francisco Special Agent in Charge John F. Bennett, “This significant settlement sends a clear message: healthcare providers who engage in this kind of activity and put their own greed before the needs of their patients will be aggressively pursued by the FBI and our federal partners.”
Under the settlement agreement, Covidien will pay an additional $1,474,892 to California and $1,047,160 to Florida for claims settled by these state Medicaid programs. The Medicaid program is a jointly funded federal and state program.
The settlement resolves allegations contained in lawsuits filed by Erin Hayes and Richard Ponder (former sales managers for Covidien) and Shawnea Howerton (a former employee of one of Covidien’s customers), which are pending in federal court in San Francisco, California. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in any recovery. Mr. Hayes and Mr. Ponder will receive $3,146,030 as their share of the federal recovery.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation, as well as the California Attorney General’s Office and the Florida Attorney General’s Office. Covidien cooperated in the government’s investigation, including by sharing the results of its extensive internal investigation and by assisting in the development of a sophisticated damages model, and received credit for its cooperation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. This case is being handled by Assistant United States Attorney Kimberly Friday and U.S. Department of Justice Trial Attorney Amy Kossak with assistance from Garland He, Jonathan Birch, and Tina Louie.
Clarksville Man Sentenced to 20 Years in Federal Prison for Firing Weapon at Police OfficersRead the Press Release
NASHVILLE, Tenn. – March 11, 2019 – Levi West, 35, of Palmyra, Tennessee, was sentenced Friday to 20 years in federal prison, as the result of an incident in February 2018, during which he fired a handgun at Clarksville police officers, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
West was indicted by a federal grand jury in April 2018 on charges of being a convicted felon in possession of a firearm and being a violent felon in possession of body armor. He pleaded guilty to the charges on December 3, 2018.
“Assaults against our law enforcement officers will be reviewed by the U.S. Attorney’s Office and when appropriate, as in this case, we will bring federal charges and vigorously pursue lengthy prison sentences as we have here,” said U.S. Attorney Don Cochran.
According to court documents, on February 3, 2018, West was involved in a high-speed pursuit in Clarksville while attempting to elude police officers. Officers later located West’s vehicle parked in a residential area and saw West standing outside the car. West refused the officer’s directives to comply with arrest commands and fired three shots at them, before fleeing into a nearby wooded area. West was apprehended by a police K-9 a short time later.
In addition to past convictions for robbery, aggravated assault and aggravated burglary, West also has a history of violent interactions with law enforcement dating back to 2001, when at age 17, he assaulted and threatened to kill arresting officers; in 2005 West assaulted a Virginia State Trooper; in 2006 West assaulted another Virginia police officer; at age 25, after violating a protective order, West assaulted a sheriff’s deputy and threatened to kill his family and dog; at age 33, while a member of the Outlaws Gang, West and two others beat an inmate to death; at age 34, West assaulted a probation officer; and while incarcerated awaiting trial in this case, he struck two sheriff’s deputies in the face multiple times. For these and other convictions, West received mostly probationary sentences in the state system, with relatively short sentences over the past decade.
Although West was facing 10 years in prison, in sentencing him, U.S. District Court Judge William L. Campbell, Jr., found that West qualified as an Armed Career Criminal and was subject to enhanced punishment and sentenced him to 20 years in prison.
This case was investigated by the Clarksville, Tennessee Police Department and the Bureau of Alcohol, Tobacco, Firearms & explosives. The case was prosecuted by Assistant U.S. Attorney Thomas Jaworski.
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Child Pornography Leads to 10 Year Sentence for Centralia ManRead the Press Release
William P. Keller, 42, of Centralia, Illinois, has been sentenced to 10 years in federal prison for distributing and receiving child pornography over the internet. Chief United States District Judge Michael J. Reagan handed down the sentence, which includes five years of supervised release and a $15,000 restitution award to the victims.
The case against Keller began in October 2017, when an online investigation discovered an IP address associated with Keller sharing child pornography over peer-to-peer software. During the execution of a search warrant at Keller’s home, federal agents seized a computer, a cell phone, and multiple external hard drives. An FBI forensic analysis of those devices uncovered over 1,400 images and 26 videos of child pornography. Some of the illicit files depicted the sexual abuse of children as young as toddlers.
On July 31, 2018, Keller pleaded guilty to a two-count felony information charging him with distributing and receiving identified child pornography files. He also agreed to forfeit his computer and an external hard drive that had been used in the commission of the crimes. At sentencing, Keller admitted his criminal conduct but maintained that he had collected the child pornography in a ham-fisted attempt to frame a relative he believed had molested his sister when they were children.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Christopher Hoell. It 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."
California Woman Sentenced for Shipping Methamphetamine to Red Cliff ReservationRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western Disttrict of Wisconsin, announced that Rita Witter, 69, Fremont, California, pleaded guilty and was sentenced last week by U.S. District Judge William M. Conley to three years in prison for conspiring to distribute methamphetamine. Witter appeared in federal court in Madison on March 7.
Witter conspired with others, including her son, to traffic methamphetamine to the Red Cliff Reservation in Bayfield, Wisconsin. While the conspiracy was ongoing for approximately one year, Witter did not join until the final six months. During that time, she shipped four or five packages containing substantial amounts of methamphetamine to the Red Cliff Reservation. Judge Conley described Witter as knowingly fueling the addiction of untold others in the small Red Cliff community.
Rita Witter and three other individuals were charged for their roles in this methamphetamine distribution conspiracy. All have pleaded guilty and Witter is the second to be sentenced. Simon Sayers was sentenced to 7.5 years in prison for his role in the conspiracy. Ryan Witter, Rita Witter’s son, is scheduled to be sentenced March 20, and Tyrone Butterfield’s sentencing is scheduled for April 3.
The charge against Witter was the result of an investigation conducted by the Red Cliff Police Department; Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; Drug Enforcement Administration in Wisconsin and California; Bayfield County Sheriff’s Office; Ashland Police Department; and the Fremont (Calif.) Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Branchland Woman Pleads Guilty to Federal Fentanyl ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Branchland woman caught delivering fentanyl to another individual last year in Huntington pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Rebecca S. Bryant, 41, entered a guilty plea to conspiracy to distribute fentanyl in federal court in Huntington. Stuart commended the investigative efforts of the Huntington Police Department.
“Over 100 grams of fentanyl,” said United States Attorney Mike Stuart, “could have wiped out the entire population of Huntington. Everyone. Nada. Game over. We owe law enforcement a huge debt of gratitude for intercepting this deadly drug before it hit the streets. As part of Operation Synthetic Opioid Surge (S.O.S.), we are continuing to prosecute each and every fentanyl dealer to the maximum extent of the law.”
On May 23, 2018, officers with the Huntington Police Department observed Bryant meet with another individual in her vehicle in the parking lot of the Little Caesar’s restaurant located at 100 7th Avenue in Huntington. After meeting with the individual, Bryant left the lot and officers conducted a traffic stop of Bryant’s vehicle. Bryant admitted that she had provided a package containing drugs to the individual. The other individual was also stopped and officers seized a package containing in excess of 100 grams of fentanyl. Bryant admitted that she received the fentanyl earlier the prior week and that, on May 23, she was directed to deliver it at the Little Ceasar’s.
Bryant faces up to 20 years in federal prison when she is sentenced on June 17, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Boston Man Arrested for Sexual Exploitation of ChildrenRead the Press Release
BOSTON – A Boston man was arrested today and charged in federal court in Boston for surreptitiously filming boys in the restrooms at Boston Latin School (BLS).
Eric Tran Thai, 36, was charged with five counts of sexual exploitation of children. He will appear in federal court in Boston at 3:30 p.m. today.
According to court documents, on Feb. 6 and Feb. 27, 2018, two separate Boston College students reported to the police that they had been videotaped without their knowledge or consent while they were using the men’s restrooms on the Boston College campus. Following the Feb. 27, 2018, report, police located and spoke with Thai, who was then arrested on state charges in Middlesex County Superior Court.
It is alleged that while speaking with police, Thai admitted to “taking some pictures” of a man in the stall next to him without the man’s consent. He further admitted to engaging in such activity for about a year. Thai was placed under arrest on state charges and his bag was subsequently searched; in it, police found several covert camera devices, including faux smoke detectors, a water bottle containing a small cube recording device, and a pair of sunglasses outfitted with a built-in camera.
During a search of Thai’s home on March 1, 2018, law enforcement seized approximately 26 computer hard drives, 20 thumb drives, 27 covert and regular cameras, 14 computers, iPads, and cell phones, and multiple SD and Sim cards. During forensic analysis of the recovered items, investigators found several folders labeled: BU, MIT, Harvard, Northeastern, Bunker Hill, Boston Latin High School, and several different malls, airports, and foreign country locations. Given the amount of data seized by investigators, forensic analysis is ongoing.
It is alleged that the videos contained in folders labeled “Boston Latin High School” contained approximately 45 surreptitiously-recorded videos of male students in various states of dress using the urinals and stalls in a Boston Latin High School boys’ bathroom. The videos appear to have been created on approximately 10 separate dates between February and December 2017.
In general, the videos show Thai sitting in a bathroom stall at Boston Latin High School recording individuals in adjacent stalls or at the urinals through various secret recording methods. In some videos, Thai appears to hold a camera over the top of the partition between the bathroom stalls and videotaping from overhead. In other instances, he appears to hide a small camera inside of his backpack, place the backpack on the bathroom floor and videotape individuals in the adjacent bathroom stall from under the stall’s partition. While recording, it appears that Thai would simultaneously view what the camera was recording on a cellphone or a tablet device in his possession. Based on this evidence, Thai was charged with five counts of sexual exploitation of children in violation of federal law.
The defendant also allegedly surreptitiously video recorded individuals in numerous public restroom locations throughout greater Boston and elsewhere.
Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office at 617-748-3274.
Each charge of sexual exploitation of children provides for a mandatory minimum 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Middlesex District Attorney Marian T. Ryan; Boston Police Commissioner William G. Gross; and Boston College Police Chief William B. Evans made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of his Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Battle Creek Woman Sentenced to 3 Years in Federal Prison for Filing False Tax ReturnsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that U.S. District Judge Janet Neff sentenced Tammy Sue Burdette, 52, of Battle Creek, to 36 months in prison and ordered her to pay $569,852 in restitution for filing false tax returns.
From 2009 through 2012, Burdette was employed as the office manager at VHC, PC and stole more than $3 million. Burdette wrote checks payable to herself from VHC’s bank account and spent the money gambling. Burdette failed to account for the money on her income tax returns.
"The defendant, Tammy Sue Burdette, stole more than $3 million and willfully failed to report that income to the Internal Revenue Service. Her conduct deprived the American taxpayer of $569,852 in tax revenue," stated IRS Criminal Investigation Special Agent in Charge Manny Muriel. "As we approach the April 15 tax deadline, the public can rest assured that the special agents of IRS Criminal Investigation will continue to protect the U.S. tax system, ensuring everyone accurately reports their income and pays their fair share of taxes."
The case was investigated by IRS Criminal Investigations. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
Ball felon sentenced to nearly three years in prison for possessing revolverRead the Press Release
ALEXANDRIA, La. – Terrence Taylor, 38, of Ball, Louisiana, was sentenced last week to 34 months in prison by U.S. District Judge Dee D. Drell for possession of a firearm by a convicted felon, U.S. Attorney David C. Joseph announced. He was also sentenced Friday to three years of supervised release.
According to the guilty plea, when Alexandria police officers approached Taylor’s vehicle on August 12, 2017 at a local park, they noticed the handle of a firearm under the armrest of the driver’s seat, and later identified the firearm as a Smith & Wesson .357 Magnum revolver, which was loaded with six rounds. A warrant check revealed that Taylor had outstanding warrants for probation violations and he was arrested at the scene. Taylor is a felon who has previously been convicted of forcible rape, illegal use of a weapon and possession of a controlled dangerous substance. As a felon, he is prohibited under federal law from possessing a firearm and ammunition. He pleaded guilty on October 30, 2018.
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.
The ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
Alexandria felon sentenced to more than 4 years in prison for possessing pistolRead the Press Release
ALEXANDRIA, La. – Theodore Hines, 37, of Alexandria, was sentenced last week to 51 months in prison by U.S. District Judge Dee D. Drell for possession of a firearm by a felon, U.S. Attorney David C. Joseph announced. He was also sentenced Thursday to two years of supervised release and was ordered to pay a $5,000 fine.
According to the guilty plea, an Alexandria police officer observed Hines on June 26, 2018 remove a pistol from his pocket and throw it onto the ground. Hines told police officers he had the pistol to protect himself. After his arrest, police took possession of the loaded Kel-Tec .380-caliber pistol. Hines has multiple previous felonies related to drug trafficking. According to federal law, Hines is not allowed to possess a firearm or ammunition as a convicted felon. He pleaded guilty on December 11, 2018.
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 ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney Cadesby B. Cooper prosecuted the case.
Alexandria felon sentenced to 18 months in prison for possessing pistolRead the Press Release
ALEXANDRIA, La. – Terrance Duane King, 30, of Alexandria, was sentenced last week to a year and six months in prison by U.S. District Judge Dee D. Drell for possession of a firearm by a convicted felon, U.S. Attorney David C. Joseph announced. King was also sentenced Friday to three years of supervised release.
According to the guilty plea, Alexandria police responded to drug related complaints on February 23, 2017 at an apartment complex on Sunset Drive. As the officers approached a group of men standing between apartment buildings, King fled the area, took a pistol from his waistband and tossed it to the ground. Officers arrested King and retrieved a firearm that was identified as a Springfield Armory, Model XD-40, .40-caliber pistol. King is a convicted felon who was convicted on drug-related charges in 2009, 2011 and 2016. Under federal law, as a convicted felon, he is prohibited from possessing a firearm and ammunition. King pleaded guilty November 19, 2018.
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.
The ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.