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Monday 28 January 2019
Two Cuban Citizens Indicted for Conspiracy to Commit Bank Fraud and Bank FraudRead the Press Release
Orlando, Florida – On January 4, 2019, United States Attorney Maria Chapa Lopez announced the return of an indictment charging Catiel Marquez Gonzalez (21) and Yeran Antigua Martinez (37), citizens of Cuba, with conspiracy to commit bank fraud. The indictment also charges Marquez Gonzalez with three substantive counts of bank fraud and Antigua Martinez with eight substantive counts of bank fraud. If convicted, each faces a maximum penalty of 30 years in federal prison on each count.
According to the indictment, beginning in July 2017, and continuing through at least January 2018, Marquez Gonzalez and Antigua Martinez conspired with each other and other persons to commit bank fraud against federally insured financial institutions. To carry out their scheme, Marquez Gonzalez and Antigua Martinez and their co-conspirators burglarized United States Postal Service mailboxes and stole mail, including personal checks. They then altered the stolen checks to bear their own names and the names of co-conspirators and deposited the altered checks into accounts they controlled.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Postal Inspection Service. It will be prosecuted by Assistant United States Attorney Kara M. Wick.
The xDedic Marketplace, A Website Involved in the Illicit Sale of Compromised Computer Credentials and Personally Identifiable Information, Shut DownRead the Press Release
Tampa, Florida - U.S. Attorney Maria Chapa Lopez, along with Special Agent in Charge Eric Sporre, FBI-Tampa Division, and Special Agent in Charge Mary Hammond, IRS-Criminal Investigation, today announced the seizure of the xDedic Marketplace, a website that operated for years and was used to sell access to compromised computers worldwide and to personally identifiable information of U.S. residents. The xDedic administrators strategically maintained servers all over the world to facilitate the operation of the website.
The international operation to dismantle and seize this infrastructure is the result of close cooperation with law enforcement authorities in Belgium and Ukraine, as well as the European law enforcement agency Europol. On January 24, 2019, seizure orders were executed against the domain names of the xDedic Marketplace, effectively ceasing the website’s operation.
The xDedic Marketplace operated across a widely distributed network and utilized bitcoin in order to hide the locations of its underlying servers and the identities of its administrators, buyers, and sellers. Buyers could search for compromised computer credentials on xDedic by desired criteria, such as price, geographic location, and operating system. Based on evidence obtained during the investigation, authorities believe the website facilitated more than $68 million in fraud. The victims span the globe and all industries, including local, state, and federal government infrastructure, hospitals, 911 and emergency services, call centers, major metropolitan transit authorities, accounting and law firms, pension funds, and universities.
The U.S. investigation was led by the FBI and IRS-CI, with assistance from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and the Criminal Division’s Computer Crime and Intellectual Property Section.
The joint Belgian-Ukrainian investigation was led by the Federal Prosecutor’s Office and the Federal Computer Crime Unit of Belgium, and the National Police and the Prosecutor General’s Office of Ukraine, with significant support by Europol.
Additionally, the German Bundeskriminalamt provided assistance in the operation to seize xDedic’s infrastructure.
Texas Man Sentenced to 35 Years in Prison for “Sextorting” Minors in Eight StatesRead the Press Release
A Texas man was sentenced on Jan. 9 to 420 months in prison, to be followed by a lifetime of supervised release, for producing child pornography in 2016 and committing a sex-related felony involving a minor while being required to register as a sex offender, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney John C. Milhiser of the Central District of Illinois.
Mark P. Barnwell, 36, of Whitehouse, Texas, pleaded guilty before U.S. District Court Judge Joe Billy McDade of the Central District of Illinois on Aug. 29, 2018, to one count of producing child pornography and one count of committing a sex-related felony involving a minor while being required to register as a sex offender.
According to admissions made in connection with his guilty plea, Barnwell, at the time a registered sex offender, exploited minors online through the use of false personas on Facebook. Barnwell controlled multiple female-presenting profiles on Facebook. Using these profiles, Barnwell contacted female Facebook profile users and advertised a modeling opportunity he claimed would pay up to thousands of dollars per photo shoot.
At Barnwell’s urging, the minors that accepted the offer then took and sent to him photographs that they believed were being produced for the purposes of a modeling portfolio. The minor victims believed they would be paid by cash, check, or direct deposit once they completed the modeling portfolio process. At Barnwell’s explicit direction, the photographs taken by the minors progressed from various stages of undress to sexually suggestive and/or sexually explicit photographs of themselves.
Once he obtained compromising images, Barnwell threatened to injure the minor victims’ reputations and embarrass them by posting their nude pictures online if they failed to comply with demands for additional images. In total, Barnwell used this scheme to obtain nude photographs from 43 minor victims located in nine judicial districts across eight states.
In addition to the material, including videos and images, relating to sexual exploitation of children discovered on Barnwell’s devices, law enforcement authorities also found multiple videos captured by Barnwell, including several where he filmed up women’s skirts in public or attempted to do so. Authorities additionally discovered a large number of videos where Barnwell surreptitiously filmed women using public bathrooms. The authorities also discovered what is believed to be the hidden camera he used to capture the videos.
The charges are the result of a joint investigation by the U.S. Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Office. Vital assistance was provided by the U.S. Attorneys’ offices for the Central District of California, Southern District of Mississippi, District of Nevada, Eastern District of Texas, Northern District of Texas, Western District of Washington, Northern District of Iowa, and Southern District of West Virginia. This case is being prosecuted by Assistant U.S. Attorneys Ronald Hanna and Katherine Legge of the Central District of Illinois and Trial Attorney William Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Terminix Branch Manager Sentenced for Illegally Applying Restricted-Use Pesticide to Multiple Residence in the U.S. Virgin IslandsRead the Press Release
Jose Rivera, 59, former Branch Manager of TERMINIX INTERNATIONAL USVI LLC (TERMINIX USVI), was sentenced on Jan. 17, 2019, to 12 months in prison for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Two of the applications were at the Sirenusa condominium resort complex on St. John where a family of four fell seriously ill in March 2015, after the unit below them was fumigated. In September 2018, Rivera pleaded guilty to four-count of the counts charged in an indictment charging violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) for application of a restricted-use pesticide in a manner inconsistent with its label.
According to the plea agreement, Rivera was certified as a pesticide applicator by the Virgin Islands Department of Planning and Natural Resources and received pesticide applicator training from the University of the Virgin Islands. Based on his training, Rivera knew that he was required to read the pesticide label and follow all instructions when using any pesticide. In short, the defendant was instructed that federal law requires applicators to follow the pesticide use instructions on the label. The label on methyl bromide states that its use is restricted to the location and manner on the label, and the label does not authorize application of methyl bromide in a residential unit. Rivera applied methyl bromide, a registered restricted-use pesticide, in a manner inconsistent with the use instructions on the label at the residences named in the counts of conviction.
In November, 2017, the companies TERMINIX LP and TERMINIX, USVI, Rivera’s employer, were sentenced for violations of FIFRA, based on their earlier guilty pleas. Terminix USVI, was sentenced to pay $4.6 million in fines and $1.2 million in restitution to the EPA for response and clean-up costs at the St. John resort. Terminix International Company LP was sentenced to pay a fine of $4.6 million and will perform community service related to training commercial pesticide applicators in fumigation practices and a separate health services training program.
In 1984, the EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted and largely limited to commodity applications for quarantine and pre-shipment purposes. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they may only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. Pesticides can be very toxic and it is critically important that they be used only as approved by EPA.
The case was investigated by EPA Criminal Investigation Division working cooperatively with the Virgins Islands government and, the Agency for Toxic Substances and Disease Registry.
Senior Litigation Counsel Howard P. Stewart of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Kim L. Chisholm of the District of the Virgin Islands are prosecuting the case with assistance of Patricia C. Hick, EPA Region II Regional Criminal Enforcement Counsel.
St. Paul Police Officer Charged with Federal Civil Rights OffenseRead the Press Release
Brett Palkowitsch, 31, an officer with the St. Paul Police Department, was indicted on Jan. 16 by a federal grand jury in Minneapolis for using excessive force against an arrestee, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division and FBI Minneapolis Special Agent in Charge Jill Sanborn.
Today’s indictment charges Palkowitsch with a single count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. The indictment alleges that Palkowitsch used unreasonable force when he kicked arrestee F.B. repeatedly while F.B. was on the ground and in the grips of a police canine, resulting in bodily injury.
The indictment carries a maximum penalty of 10 years of imprisonment and a $250,000 fine. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case was investigated by the Minneapolis Division of the FBI, and is being prosecuted by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Justice Department’s Civil Rights Division.
Springfield Man Pleads Guilty to Second Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man with a prior felony conviction for bank robbery pleaded guilty in federal court today to robbing Guaranty Bank in Springfield.
Donald David Hosey III, 39, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Jan. 15, 2019, federal indictment. Hosey has a prior conviction for a nearly identical bank robbery in 2007.
According to court documents, Hosey entered Guaranty Bank, 2109 N. Glenstone in Springfield, on Nov. 29, 2018. He approached a bank teller and passed her a note that said, “Give me all your money. I have a gun don’t make me use it.” The teller complied with the threatening note and gave him $833 from her teller drawer. Hosey then fled from the bank.
Springfield police officers received a tip on Dec. 3, 2018, indicating that Hosey was the person responsible for the bank robbery. They learned that Hosey was staying at the Flagship Inn in Springfield. According to staff at the Flagship Inn, Hosey was behind on his rent but within an hour of the robbery, he repaid all of the back rent owed in cash. Officers contacted Hosey and arrested him.
Under federal statutes, Hosey is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
South Texas Clinic Owner Sentenced to 30 Years in Prison for Her Role in $20 Million Medicare Fraud SchemeRead the Press Release
A clinic owner and operator was sentenced to 360 months in prison on Jan. 24 for her role in a scheme to defraud Medicare out of payments for medical services. Ann Shepherd was convicted at trial in the Southern District of Texas along with her co-defendants, Dr. John Ramirez and Yvette Nwoko.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Region, and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Ann Nwoko Shepherd, 62, of Houston, Texas was sentenced by U.S. District Judge David Hittner of the Southern District of Texas. Judge Hittner also ordered the defendant to pay $20.928 million in restitution and to forfeit $250,000.
According to evidence presented at trial, from in or around December 2011 to in or around August 2015, John Ramirez, M.D., a physician, Ann Shepherd and Yvette Nwoko conspired and schemed to defraud Medicare out of payments for medical services. Shepherd owned and operated Southwest Total Medical Inc., a purported medical clinic doing business as Amex Medical Clinic in Houston. Shepherd, along with Yvette Nwoko sold medical orders and other documents signed by Dr. Ramirez to home-health agencies in and around Houston. Dr. Ramirez falsely certified in these medical orders information about the patient’s medical condition and need for medical services. Co-conspirators at home-health agencies then used the false and fraudulent paperwork signed by Dr. Ramirez and sold by Ann Shepherd and Yvette Nwoko to bill to, and receive payment from, Medicare for medical services that were not medically necessary or not provided.
Ann Shepherd also caused Amex Medical Clinic to bill Medicare for purported physician services that were actually provided by an unlicensed practitioner, if at all.
In all, Ann Shepherd caused Medicare to pay approximately $20 million on false and fraudulent claims submitted during the charged conspiracy.
Dr. John Ramirez is expected to be sentenced on Jan. 29 and Yvette Nwoko is expected to be sentenced on April 18, before the Honorable David Hittner.
This case was investigated by the FBI, HHS-OIG and the Texas Attorney General’s MFCU. Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tina Ansari of the Southern District of Texas are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, , which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
South Florida Pharmacist Convicted of Health Care Fraud for Role in $100 Million Compounding Pharmacy SchemeRead the Press Release
A federal jury found a South Florida pharmacist guilty of health care fraud for his role in a massive compounding pharmacy fraud scheme, which impacted private insurance companies, Medicare and TRICARE.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
After a four-day trial, Ademola O. Adebayo, 55, of Odessa, FL, was convicted on Jan. 10 of one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and one count of conspiracy to commit money laundering. Sentencing has been scheduled for March 19, 2019 before U.S. District Judge Moreno of the Southern District of Florida, who presided over the trial.
According to evidence presented at trial, from 2012 to 2015, Adebayo and his co-conspirators engaged in a scheme to defraud private insurance companies, Medicare, and TRICARE by submitting false and fraudulent claims for compounded drugs, primarily pain and scar creams, and other prescription medications that were not medically necessary, never provided, or both. The evidence established that in his role as the pharmacist at A to Z Pharmacy, a now-defunct pharmacy located in New Port Richey, Florida, Adebayo conspired to submit or cause the submission of claims that often amounted to several thousands of dollars for a single tube of pain or scar cream. In 2014, when insurance companies discovered the fraud at A to Z Pharmacy and terminated their contracts with the pharmacy, Adebayo agreed to become the straw owner of Havana Pharmacy & Discount in Miami, which Adebayo and his co-conspirators used to continue the fraud, the evidence showed.
The evidence further established that Adebayo personally benefited from the fraud and received $1.5 million, which he used to purchase luxury vehicles, including a Ferrari, a Lamborghini, a Bentley, a Porsche and two Cadillacs, as well as a house in Land O Lakes, Florida, many of which were seized by the government.
Eight other defendants have pleaded guilty in this case. Nicholas Borgesano, 46, of New Port Richey, Florida, was sentenced to 15 years in prison for his role as the owner of A to Z Pharmacy and participation in fraud schemes that involved Havana Pharmacy, Medplus/New Life Pharmacy and Metropolitan Pharmacy, all of Miami; and Jaimy Pharmacy and Prestige Pharmacy, both of Hialeah, Florida.
In addition to Borgesano, the following defendants have previously been sentenced for their roles in the scheme:
- Scott P. Piccininni, 50, of Fort Lauderdale, Florida, sentenced to 51 months in prison;
- Bradley Sirkin, 56, of Boca Raton, Florida, sentenced to 46 months in prison;
- Peter B. Williams, 58, of New Port Richey, sentenced to 26 months in prison, to be served consecutively to a 60-month sentence of imprisonment he is serving as a result of his guilty plea to a separate indictment returned in the Southern District of Florida; and
- Wayne M. Kreisberg, 41, of Parkland, Florida, placed on probation for a term of five years, to be served consecutively to a sentence of probation he is serving as a result of his guilty plea to a separate indictment returned in the Middle District of Florida.
This case was investigated by the FBI with support from HHS-OIG and DCIS and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorneys Timothy P. Loper and Aleza Remis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Seafood Processor Sentenced to 45 Months for Selling Foreign Crab Meat Falsely Labeled as Blue Crab from USARead the Press Release
On January 10, 2019, James R. Casey of Poquoson, Virginia, was sentenced by U.S. District Judge Raymond A. Jackson, in Norfolk, Virginia, to 45 months in prison and a $15,000 fine for his role in conspiring to falsely label millions of dollars’ worth of foreign crab meat as “Product of USA.”
A significant decline in Atlantic blue crab (Callinectes sapidus) harvests that began in 2010 made it increasingly expensive to purchase live Atlantic blue crab and increasingly difficult to profit from the labor-intensive process of picking meat from live-harvested blue crab. According to papers filed in federal court, Casey admitted that, because of this decline, he and his company could not and did not process sufficient quantities of Atlantic blue crab to meet customer demands. To make up the shortfall, Casey and his co-conspirators used foreign crab meat to fulfill customer orders. During the periods when the company did not process blue crab—which sometimes lasted three months—the co-conspirators purchased crab meat (not live crabs) from Indonesia, China, Thailand, Vietnam, and other foreign locales.
The crab meat from Indonesia, China, Thailand, and Vietnam included meat from Portunus pelagicus, Portunus haanii, and Ovalipes punctatus, which are all Indo-West Pacific species of crab that do not live in the continental waters of the United States. The company also purchased crab meat (not live crabs) from Central American sources, which did include Atlantic blue crab, Callinectes sapidus, but also included other species such as Callinectes bocourti, Callinectes bellicosis, Callinectes toxotes, and Callinectes arcuatus.
In his plea agreement, Casey—who was the owner and President of Casey’s Seafood Inc., a wholesale processor of crab meat and other seafood—admitted to substituting foreign crab meat for domestically harvested blue crab. Videos, which were recorded by Casey’s Seafood’s security camera, and which were filed with the court, show company employees removing foreign crab meat from cans and plastic bags, and repackaging the crab meat into plastic containers labeled “Product of USA.” In the filed papers, Casey admitted to directing his employees to substitute and falsely label more than 183 tons of foreign crab meat, which was then sold to grocery stores and independent retailers.
According to the documents filed with the court, Casey further admitted that part of the conspiracy was to purchase discounted foreign crab meat, some of which was referred to as “distressed” because it was approaching or beyond its posted “best used by” dates. Casey admitted to directing company employees to “re-condition” the “distressed” crab meat by re-pasteurizing it, and then packaging the “re-conditioned” meat into the company’s cups, which were labeled and sold as blue crab and “Product of USA.” Casey also directed employees to place labels with “Product of USA” on containers that concealed labels marked as “Product of China” and “Product of Brazil.”
This case was part of an ongoing effort by the Department of Commerce’s National Oceanic and Atmospheric Administration Office of Law Enforcement, in coordination with the Food and Drug Administration, Department of Homeland Security, the Virginia Marine Police, and the Department of Justice to detect, deter, and prosecute those engaged in the false labeling of crab meat. This prosecution is being handled by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of Virginia. The government is represented by Assistant United States Attorney Eric Hurt and Trial Attorney Gary N. Donner.
Retired Highway Patrol Trooper Sentenced for Lying to FBI about GamblingRead the Press Release
WICHITA, KAN. – A retired highway patrol trooper was sentenced Monday to a year on federal probation for lying to the FBI during an investigation into illegal gambling in Wichita, U.S. Attorney Stephen McAllister said.
Michael Frederiksen, 53, Derby, Kan., was convicted in a jury trial in May on one count of making false statements to FBI investigators. During trial, prosecutors presented evidence that in 2014, while Frederiksen was still a Kansas Highway Patrol Trooper, he was filmed taking part in an illegal cash poker game. On Feb. 23, 2017, he was interviewed by FBI agents investigating illegal gambling businesses in Wichita.
The FBI had a video of Frederiksen playing in an illegal cash poker game held Feb. 12, 2014, at 922 1/2 E. Douglas in the Old Town district of Wichita. The site was equipped with poker tables, a cabinet for valuables and poker chips, video surveillance equipment, liquor and snacks. Staff included dealers, someone serving food and a waitress serving drinks and giving massages to the players.
An undercover investigator was at the game posing as a gambler. At one point, the undercover officer tried to use his phone to take photos. The men running the game took him aside and told him he was making other players nervous. They allowed the undercover officer to continue playing, but moved the game to other locations after that night.
During an FBI interview, Frederiksen made false statements, downplaying his involvement in illegal poker and his relationship with the operator of the poker game.
McAllister commended the FBI, the Wichita Police Department, the Internal Revenue Service and Assistant U.S. Attorneys Aaron Smith and Mona Furst for their work on the case.
Randolph County man admits to maintaining a drug houseRead the Press Release
ELKINS, WEST VIRGINIA – Cory Dean Carpenter, of Elkins, West Virginia, has admitted to maintaining a house for drug distribution, United States Attorney Bill Powell announced.
Carpenter, age 24, pled guilty to one count of “Maintaining Drug-Involved Premises.” Carpenter admitted to living at 98 Washington Street in Elkins, and making the home available for distributing methamphetamine, heroin, and cocaine from January 2017 to March 2017.
Carpenter 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 D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force 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 Michael John Aloi presided.
Project Huntington Update: Huntington Man Sentenced to Federal Prison for Drug and Gun ConvictionsRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was arrested as part of Project Huntington who previously pled guilty to drug and gun charges was sentenced today to 72 months and 1 day in federal prison, announced United States Attorney Mike Stuart. Eric Lee Burgess, 34, previously entered guilty pleas to distribution of heroin, prohibited possession of a firearm by a drug user, and possession of firearms in furtherance of a drug trafficking crime. Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department.
“Burgess was one of many gun-toting drug dealers arrested in Huntington as part of Project Huntington,” said United States Attorney Mike Stuart. “I’ve said it before, and I’ll say it again – Huntington is no doubt a safer city today because of our collaborative efforts.”
On October 7, 2014, a confidential informant and an undercover ATF agent met with Burgess at Burgess’s residence located at 306 9th Street West in Huntington to purchase heroin. After negotiating the transaction, Burgess distributed approximately 5 grams of heroin to the agent in exchange for $875. Burgess was also observed using heroin and admitted that he possessed a .40 caliber pistol during the transaction. On December 16, 2014, the undercover agent again met with Burgess at his residence. On this occasion, the agent again observed Burgess using heroin and Burgess sold the agent an AR-15 style rifle along with a 30-round magazine.
On April 17, 2018, investigators arrested Burgess at his residence as part of Project Huntington. Investigators conducted a search of Burgess’s residence and seized a number of items including heroin, digital scales, and three firearms with assorted ammunition. Burgess admitted that he intended to distribute the heroin that was seized and that he possessed the firearms to serve as protection during heroin transactions.
Burgess also admitted to meeting with the informant and undercover agent on six additional occasions. On these occasions, Burgess admitted that he sold the informant and agent oxycodone pills, heroin, and four additional firearms. Burgess also admitted that he possessed other firearms during some of the transactions and that he was prohibited from possessing firearms based on his drug usage.
Assistant United States Attorney Joseph F. Adams handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This prosecution is part of Project Huntington, an effort announced by United States Attorney Mike Stuart in March 2018 in response to the opiate epidemic and violent crime in southern West Virginia.
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Project Huntington Update: Final Operation Saigon Sunset Defendant Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Nyanzangusa Baldwin, also known as “Botch,” 45, from Michigan, pled guilty to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Baldwin, who was caught with heroin in August 2017, entered his guilty plea to an indictment charging him with conspiracy to distribute heroin. Operation Saigon Sunset was a joint investigation conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Baldwin is the last of the 15 defendants indicted as a result of Operation Saigon Sunset to plead guilty,” said United States Attorney Mike Stuart. “I want to commend the team involved in the investigation and prosecution of this case. An exemplary job was done by all involved. The conviction of the 15 defendants indicted in this case dismantled a significant drug trafficking network and substantially advanced our efforts to takeback the streets of Huntington.”
Baldwin admitted Manget Peterson asked him to come to Huntington in August 2017 to distribute heroin. He admitted that he distributed heroin from the Ramada Inn Motel in Huntington, West Virginia in August 2017. Officers executed a search warrant on the motel room and seized approximately 35 grams of heroin.
Baldwin faces up to 20 years in federal prison when he is sentenced on May 20, 2019.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Princeton Man Sentenced for Federal Drug CrimesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a Princeton man was sentenced to 108 months in prison for federal drug crimes. Jerome Jones, 54, previously pled guilty to seven counts of distribution of a quantity of cocaine base, two counts of possession with intent to distribute a quantity of cocaine base, and one count of distribution of cocaine. The case was investigated by the Southern Regional Drug and Violent Crime Task Force and the West Virginia State Police.
“Nine years. Nine years,” said United States Attorney Mike Stuart. “Attacking the drug epidemic is one of our top priorities and Jones now gets to spend much of the rest of his productive life behind bars. My office has been incredibly effective putting drug dealers and drug thugs behind bars and we won’t stop until they stop.”
Jones admitted that between May 18, 2016, and November 13, 2017, he sold quantities of cocaine and cocaine base to a confidential informant who was working with police. He further admitted that law enforcement authorities served search warrants at his residence on June 1, 2016, and on December 20, 2017, and seized quantities of cocaine and cocaine base.
Assistant United States Attorney John File handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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Preston County woman sentenced for oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carlee Cuppett, of Kingwood, West Virginia, was sentenced today to two years probation for a drug distribution charge, United States Attorney Bill Powell announced.
Cuppett, age 27, pled guilty to one count of “Distribution of Oxycodone” in September 2017. Cuppett admitted to selling oxycodone in Monongalia County in September 2015.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force 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.
Senior U.S. District Judge Irene M. Keeley presided.
Philadelphia man indicted on drug and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – David Anthony Richardson, of Philadelphia, Pennsylvania, was indicted by a federal grand jury sitting in Martinsburg on January 23, 2019 on drug and firearms charges, United States Attorney Bill Powell announced.
Richardson, age 33, was indicted on one count of “Possession with Intent to Distribute Cocaine Base,” one count of “Possession with Intent to Distribute Fentanyl,” one count of “Possessing a Firearm in Furtherance of a Drug Trafficking Crime,” and one count of “Unlawful Possession of Firearm.” Richardson is accused of distributing cocaine and fentanyl in Ohio County. Richard, having previously been convicted of two felonies, is also accused of having a .38 special revolver during said drug crimes.
Richardson faces up to 20 years incarceration and a fine of up to $1,000,000 for the cocaine charge and faces up to no less than five years and up to 20 years incarceration for the fentanyl charge. He also faces not less than five years incarceration for the firearm during a drug crime charge and up to 10 years incarceration and a $250,000 fine for the possession of a firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department 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.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Woman Admits Participating in Credit Card ‘Bust Out’ Scheme to Defraud BanksRead the Press Release
NEWARK, N.J. – A Philadelphia, Pennsylvania, woman admitted today that she participated in a scheme to defraud banks by using stolen and altered identities to fraudulently obtain credit cards and then using those cards to make more than $2.5 million in charges that were never repaid, U.S. Attorney Craig Carpenito announced.
Fatou Djambo, 37, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging her with one count of conspiring to defraud financial institutions and one count of aggravated identity theft.
Djambo was originally charged with this conduct in a criminal complaint filed May 22, 2018, along with Talat Ali Maan, 44, of Germantown, Maryland; Syed Rehman, 51, of Jersey City, New Jersey; Kashif Idrees, 36, of Germantown, Maryland; and Jaheed Wahed Ahmed, 54, of Jersey City, New Jersey. Ahmed pleaded guilty to bank fraud conspiracy and aggravated identity theft before Judge Arleo on Jan. 9, 2019. The charges against Maan, Rehman, and Idrees remain pending. Idrees is not in custody, and is a fugitive.
According to documents filed in this case and statements made in court:
The defendants engaged in a scheme to use stolen and fraudulently altered identities to obtain credit cards from banks and then use those credit cards to make purchases that they had no intention to repay, leaving the banks to bear the losses. The defendants stole the identities of actual people and then, in many cases, created “synthetic identities” by pairing the name and Social Security number for an actual person with a fictitious birth date. When creating the synthetic identities, the defendants often used the name and Social Security number of an actual minor and combined them with a fictitious birth date that made the identity appear to be that of an adult.
The defendants used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at banks. The fraudulently obtained credit cards were maintained in good standing with the banks long enough to establish creditworthiness. The defendants then “busted out” the cards by making large purchases and never repaying the debts associated with those purchases.
The defendants also incorporated and registered in various states numerous purported companies that did little or no legitimate business. They obtained credit card processing equipment by opening merchant processing accounts in the names of the sham companies, and then used that equipment to make fraudulent charges on the fraudulent credit cards.
Djambo’s role included arranging for individuals to obtain genuine, but fraudulently obtained, Pennsylvania driver’s licenses, a service for which Maan and Rehman paid her. Djambo also secured addresses in the Philadelphia area to which Maan and Rehman could direct mail containing fraudulently obtained credit cards and other items relating to the scheme. Djambo collected and delivered that mail to conspirators in Jersey City, among other locations.
The charge of conspiring to defraud financial institutions carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The aggravated identity theft charges carries a mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment imposed, and an up to $250,000 fine.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea.
The charges in the complaint are merely allegations, and Maan, Rehman, and Idrees are presumed to be innocent unless and until convicted.
The government is represented by First Assistant U.S. Attorney Rachael A. Honig.
Palm Harbor Man Indicted for Mail and Wire Fraud Relating to IRS Impersonation and Tech Support ScamsRead the Press Release
Tampa, FL – On January 3, 2019, a federal grand jury returned an 11-count indictment charging Glenn Francis (58, Palm Harbor) with conspiracy to commit wire fraud and mail fraud, and with substantive counts of wire fraud, mail fraud, and money laundering. Francis faces a maximum penalty of 20 years in federal prison on each count of wire and mail fraud conspiracy, wire fraud, and mail fraud. He faces up to 10 years in federal prison for each of the three money laundering charges. The indictment also notifies the defendant that the United States is seeking a money judgment for at least $313,370.03, an amount equal to the proceeds of the crimes charged.
According to the indictment, from at least 2016 through January 2019, Francis conspired with India-based call centers to extort money from U.S. residents by impersonating IRS officers and misleading U.S. residents to believe that they owed money to the IRS and that they would be arrested and fined if they did not pay their alleged back taxes immediately; impersonating loan officers and misleading U.S. residents to believe that they would receive loan proceeds upon paying an advance fee to the defendant or others he hired; or impersonating computer technicians and misleading U.S. residents to believe that their computers had been hacked, their identities had been stolen, and/or their computers were infected with viruses and in need of repair, and that the callers would resolve the purported computer problems if paid to do so.
The indictment alleges that the defendant collected the fraud proceeds by withdrawing them from bank accounts he or others he hired (runners) controlled; retrieving the proceeds from money services businesses; and depositing checks and cash equivalents into bank accounts he or his runners controlled. In order to collect the fraud proceeds, the runners were provided with the victims’ names, locations, and amount paid. Runners were then directed to retrieve the fraud proceeds in cash, and turn them over, often less a payment to the runner for opening the account or conducting the transaction.
On January 11, 2019, law enforcement officers executed a search warrant at Francis’s home. Among other items, they seized business and financial records, money transfer receipts, and two electronic devices.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and the defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service–Criminal Investigation, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Treasury Inspector General for Tax Administration, the Department of Homeland Security-Office of Inspector General, and the Pinellas County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Rachel K. Jones.
P.H. Glatfelter Company Agrees to Reimburse Government Costs and Assume Long-Term Responsibility for Massive Superfund Cleanup at Wisconsin’s Fox RiverRead the Press Release
Under a settlement reached with the U.S. Department of Justice’s Environment and Natural Resources Division and the U.S. Environmental Protection Agency, P.H. Glatfelter Company will pay $20.5 million for reimbursement of EPA past costs and natural resource damages and then reimburse all future government costs of overseeing one of the nation’s largest Superfund cleanup projects at Wisconsin’s Lower Fox River and Green Bay Site. Glatfelter also is agreeing to take on responsibility for long-term monitoring and maintenance activities required by EPA. Georgia-Pacific Consumer Products LP is joining this settlement and agreeing to minor adjustments to its commitments under prior settlements.
An enormous amount of cleanup and natural resource restoration work has already been done in Fox River and Green Bay under a set of partial settlements, an EPA administrative cleanup order, and court orders in a federal lawsuit brought by the United States and the State of Wisconsin. The total cleanup costs for the Fox River Site will exceed $1 billion. The cleanup work will reduce the risks to humans and wildlife posed by polychlorinated biphenyls (PCBs) in bottom sediment of the Fox River and Green Bay.
The cleanup remedy for the Fox River Site was jointly-selected by EPA and the Wisconsin Department of Natural Resources. The remedy will remove much of the PCB-containing sediment from the Fox River by dredging. In other portions of the River, contaminated sediment is being contained in place with specially-engineered caps. The dredging and capping will reduce PCB exposure and greatly diminish downstream migration of PCBs to Green Bay.
In 2010, the United States and Wisconsin sued NCR Corporation, Glatfelter, Georgia-Pacific and other parties in a Superfund lawsuit to require them to continue the ongoing cleanup at the Site and pay government costs and natural resource damages. The defendants in the government’s lawsuit included paper companies like Glatfelter and Georgia-Pacific that contaminated the sediment when they made and recycled a particular type of PCB-containing “carbonless” copy paper. NCR and its affiliates produced that paper with PCBs from the mid-1950s until 1971.
Under another settlement reached in 2017, NCR agreed to complete all remaining dredging and capping work at the Site. Today’s settlement requires Glatfelter and Georgia-Pacific to take responsibility for long-term tasks that will continue for many years after the dredging and cap installation is completed in 2019, including periodic monitoring of PCB levels in water and fish and maintenance of the sediment containment caps. This new settlement expands the companies’ obligations under earlier partial settlements and government orders, which already required at least $66 million in expenditures by Glatfelter and at least $154 million by Georgia-Pacific.
The proposed settlement is in the form of a consent decree that must be approved by the federal judge overseeing the legal proceedings over the Fox River Site. If approved, this settlement would end all Superfund litigation over the Site.
This settlement, lodged with the U.S. District Court for the Eastern District of Wisconsin on Jan. 3, 2019, will be subject to a 30-day public comment period after notice of the settlement is published in the Federal Register. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information on cleanup activities at the Lower Fox River and Green Bay Superfund Site, go to the Environmental Protection Agency’s website:
https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0507723
Owner of Income Tax Preparation Business Pleads Guilty to Preparing Falsified Federal Income Tax Returns for ClientsRead the Press Release
BOISE – David Brannum, 55, now of Washougal, Washington, pleaded guilty on January 10, 2019, in United States District Court to preparing false federal income tax returns for clients of his business, “Dave’s Tax Service,” U.S. Attorney Bart M. Davis announced. Sentencing is set for April 17, 2019, before U.S. District Judge B. Lynn Winmill at the Federal Courthouse in Boise.
Brannum pleaded guilty to one count of assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS. According to court records, from 2003 through 2015, Brannum operated his tax preparation business in Idaho and Nevada and submitted hundreds of federal income tax returns. Brannum often claimed false and fraudulent itemized deductions for his clients, which had the effect of decreasing their tax liability and generating improper refunds. Specifically, Brannum (1) inflated the amounts of his clients’ charitable contributions and (2) entered amounts for unreimbursed employee expenses that were not substantiated, that he inflated, or that he knew were not allowable. In total, Brannum’s criminal conduct resulted in over $101,000 in tax loss.
Assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS is punishable by up to three years imprisonment, a term of supervised release of up to one year, and a fine of up to $250,000.
This case was investigated by the IRS Criminal Investigations division.
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Orlando Skilled Nursing Facility, Physician, and Related Providers Agree to Pay $1.5 Million to Resolve Allegations of Illegal Kickback and Patient Referral SchemeRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces that on January 9, 2019, Conway Lakes NC, LLC; its former Administrator, Matthew File; its management company, Clear Choice Health Care, LLC; Clear Choice’s part-owner and President, Jeffrey Cleveland; Clear Choice’s part-owner and Senior Vice President, Geoffrey Fraser; and an Orlando-area orthopedic surgeon, Dr. Kenneth Krumins, agreed to pay $1.5 million to resolve allegations that they engaged in a kickback scheme related to the referral of Medicare and TRICARE patients.
The settlements announced today resolve allegations that Conway Lakes, through File, Cleveland, Fraser, and Clear Choice, conspired to pay Dr. Krumins under a sham “medical director” agreement to induce him to illegally refer Medicare and TRICARE patients to Conway Lakes for rehabilitation services that were billed to the United States. Dr. Krumins’s settlement agreement also resolves allegations that he engaged in a similar kickback scheme with a related home health agency.
The United States alleged that these financial arrangements violated the physician self-referral law, commonly known as the “Stark Law,” and the Anti-Kickback Statute, giving rise to liability under the False Claims Act. Pursuant to two separately executed settlement agreements, Dr. Krumins has agreed to pay $500,000, and Conway Lakes, Clear Choice, Cleveland, Fraser, and File have agreed collectively to pay $1 million to the United States.
“Our office will aggressively pursue health care providers who engage in kickback schemes,” said U.S. Attorney Maria Chapa Lopez. “These schemes drive up costs and undermine patient care. The United States Attorney’s Office will continue to advocate for the integrity of federally subsidized health programs and for the proper care of our seniors and our veterans.”
“Disguising intricate kickback arrangements through directorships and other misrepresented positions corrupts physician decision making and undermines the public’s trust in the healthcare system,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to investigate health care providers that seek to illegally boost profits at the expense of federal health care programs.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold health care providers accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans, and their families. The Defense Health Agency will keep working closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“These investigations require patience, persistence and a strong commitment to protecting our federally funded healthcare programs. The FBI and its law enforcement partners will continue to identify and investigate those individuals who try to cheat the system,” said Eric W. Sporre Special Agent in Charge of the FBI Tampa Division.
The allegations resolved by the settlement agreements were originally brought in a lawsuit filed by a former employee of Conway Lakes, Jonathan Montes de Oca, under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. Mr. Montes de Oca will receive $267,000 of the proceeds from the settlements.
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Middle District of Florida. Investigative assistance was provided by the U.S. Department of Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Trial Attorney Breanna Peterson and Assistant United States Attorney Jeremy Bloor coordinated the investigation.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The lawsuit is captioned United States ex rel. Montes de Oca v. Conway Lakes NC, LLC et al., Civil Action No. 6:16-cv-1374-ORL-37GJK (M.D. Fla.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Orlando Man Sentenced to More Than Six Years for Possessing with the Intent to Distribute Heroin and Cocaine While on Supervised Release for A Prior Drug CrimeRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Alexander Rosado-Figueroa (45, Orlando) to six years and three months in federal prison for possessing with the intent to distribute heroin and cocaine, while Rosado-Figueroa was on supervised release for a prior drug conviction. Rosado-Figueroa had pleaded guilty to the possession and distribution offenses on July 3, 2018. He admitted to violating the terms of his supervised release on November 13, 2018.
According to court documents, on January 31, 2018, Deputy U.S. Marshals arrested Rosado-Figueroa for violating the terms of his supervised release after he had tested positive for using cocaine and opiates. During the arrest, Rosado-Figueroa was found to be carrying 15.5 grams of cocaine, 7 grams of heroin, and supplies used in the distribution of these controlled substances. When agents from the Orange County Sherriff’s Office Narcotics Unit conducted a search of Rosado-Figueroa’s apartment, they recovered an additional 73 grams of heroin, additional materials used in the distribution of controlled substances, and a handgun with a loaded magazine.
This case was investigated by the U.S. Marshals Service, the U.S. Probation Office, the Drug Enforcement Administration, and the Orange County Sheriff’s Office Narcotics Unit. It was prosecuted by Assistant United States Attorneys Dana E. Hill, Embry J. Kidd, and Kara M. Wick.
Orlando Man Charged with $25 Million Investment Fraud SchemeRead the Press Release
Orlando, Florida – On January 16, 2019, a federal grand jury returned an indictment charging Andres Fernandez (37, Orlando) with 12 counts of wire fraud. If convicted, Fernandez faces a maximum penalty of 20 years in federal prison for each count.
According to the indictment, Fernandez orchestrated an investment scheme that defrauded at least 50 victims out of as much as $25 million and solicited individuals to invest in concert events that Fernandez claimed were being produced by his companies – Kadaae Entertainment Corporation and Kadaae LLC. The indictment further alleges that Fernandez told victims that their investment would be used to fund specific concert events from artists including Julio Iglesias and Pitbull, and promised a return on investment of up to 100 percent. Fernandez used fake contracts and other false documents to convince victims that he and his companies were under contract to produce the events. In fact, neither Fernandez nor his companies were involved in most of the events he had solicited to victims. Fernandez used portions of the funds sent by investors for his own personal use and to pay fraudulent “investment returns” to earlier investors.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Nathan W. Hill.
Oregon Man Sentenced to Life in Prison for Sexually Abusing Children at Orphanage in CambodiaRead the Press Release
On Jan. 18, defendant Daniel Stephen Johnson, 40, of Coos Bay, Oregon, was sentenced to life in federal prison for repeatedly sexually abusing children who lived at an orphanage he operated in Cambodia.
The sentencing was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Billy J. Williams for the District of Oregon.
In a jury trial ending on May 16, 2018, Johnson was convicted on six counts of engaging in illicit sexual conduct in a foreign place and one count each of travel with intent to engage in illicit sexual conduct and aggravated sexual assault with a child. He was sentenced to 30 years in prison on each count of illicit sexual conduct in a foreign place, 30 years for traveling with the intent to engage in illicit sexual conduct, and life in prison for aggravated sexual assault with children. The sentences for engaging in illicit sexual conduct in a foreign place will run consecutively.
According to court documents and information shared during trial, between November 2005 and his arrest in December 2013, Johnson systematically and repeatedly molested children who lived at an unlicensed orphanage he started and ran in Phnom Penh, Cambodia. Johnson funded the orphanage by soliciting donations from church groups in Oregon, California, Texas and elsewhere. Ten Cambodian victims—who ranged in age from seven to 18 years old at the time of abuse—have disclosed Johnson’s abuse or attempted abuse.
Victims described a pattern of molestation that includes, among other things, Johnson making them perform oral sex on him and anally raping them. Multiple victims said they were, on numerous occasions, awoken to Johnson abusing them. Following the abuse, Johnson would sometimes provide his impoverished victims with small amounts of money or food. On one occasion, Johnson gave a victim the equivalent of $2.50 in Cambodian currency.
In 2013, a warrant was issued for Johnson’s arrest on an unrelated case by officials in Lincoln County, Oregon. Local law enforcement officers worked with the FBI to locate Johnson overseas. The FBI in turn worked with the U.S. Department of State to revoke Johnson’s passport based on the Oregon warrant. Through the work of the FBI, Action Pour Les Enfants, a non-governmental organization dedicated to ending child sexual abuse and exploitation in Cambodia, and the Cambodian National Police (CNP), Johnson was located in Phnom Penh.
On Dec. 9, 2013, CNP arrested Johnson. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to a year in prison. Following his release from prison, Johnson was escorted back to the United States by the FBI.
Based on the sexual-abuse allegations against him, the FBI undertook a lengthy investigation of Johnson. During the course of their investigation, agents interviewed more than a dozen children and adults who had resided at the orphanage. Many of the interviews were audio- and video-taped and, in several instances, conducted in Cambodia by trained child-forensic interviewers. Some victims were interviewed multiple times before disclosing Johnson’s abuse.
Johnson was indicted by a federal grand jury in Eugene, Oregon on Dec. 20, 2014 on one count of engaging in illicit sexual conduct in a foreign place. Seven additional charges were added by superseding indictment on May 17, 2017.
While in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
This case was investigated by the FBI with the assistance of the Toledo, Oregon, Police Department. It was prosecuted by Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Jeffrey S. Sweet and Ravi Sinha of the District of Oregon and Assistant U.S. Attorney Amy E. Potter assisted with the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Orchard Park Pain Doctor Pleads Guilty to Using Patient Names Fraudulently to Obtain Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Paul Biddle, 54, of Amherst, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to identity theft and possession of unlawful hydromorphone HCL. The charges carry a maximum penalty of five years in prison.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that Biddle was an anesthesiologist and pain management doctor who also operated a medical marijuana practice. Between February 9, 2015 and October 16, 2017, the defendant was prescribing controlled substances for two deceased patients. Biddle knew the patients were deceased and used their names and dates of birth knowingly and without lawful authority to obtain controlled substances for himself.
After the death of one of the patients, Biddle wrote 10 prescriptions using the deceased patient’s name and date of birth between November 21, 2016 and October 16, 2017. All of these prescriptions were filled by a pharmacy in Tampa, FL, and shipped directly to the defendant’s home or office. After the death of the second patient, the defendant wrote 23 prescriptions using that deceased patient’s name and date of birth between February 9, 2015 and August 7, 2017. All of these prescriptions were also filled by a pharmacy in Tampa, FL, and shipped directly to the defendant’s home or office. Biddle was obtaining these prescriptions and using them himself.
The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Federal Bureau of Investigation, Western New York Healthcare Fraud Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the New York State Department of Financial Services, under the direction of Maria T. Vullo, Superintendent of Financial Services; Department of Health and Human Services, Office of Inspector General, Office of Investigations, under the direction of Special Agent-in-Charge Scott Lampert; and the Amherst Police Department, under the direction of Chief John Askey.
Sentencing is scheduled for May 9, 2019, at 11:00 a.m. before Judge Wolford.
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Operators of Prison Consultation Company Charged with Conspiring to Defraud Federal Bureau of PrisonsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned a nine-count indictment charging three Michigan residents with conspiracy and fraud charges stemming from an alleged scheme to qualify prospective and current federal inmates who do not require substance abuse treatment for admission into a Federal Bureau of Prisons program that, if completed successfully, will result in a shortened prison term.
Charged in the indictment, which was returned on January 15, 2019, are TONY TUAN PHAM, also known as “Anh Nguyen,” 49, of Grand Rapids, Michigan; SAMUEL COPENHAVER, 47, of Grand Rapids, Michigan, and CONSTANCE MOERLAND, 33, of Hudsonville, Michigan. The three defendants were arrested on January 23.
According to the indictment, the Residential Drug Abuse Program (“RDAP”) is a 500-hour substance abuse treatment program that is administered by the Federal Bureau of Prisons (“BOP”). In order to gain admission to the RDAP, a federal inmate must meet certain criteria, including having a diagnosable and verifiable drug or alcohol abuse disorder. By successfully completing the RDAP, an inmate can qualify for up to 12 months in early release from custody.
The indictment alleges that Pham, Copenhaver and Moerland were managing partners of Michigan-based RDAP Law Consultants, LLC. The defendants solicited prospective and current federal inmates, including individuals in Connecticut, through telephone calls and emails with offers of assistance in applying to, and qualifying for, the RDAP. For a fee, the defendants coached and advised prospective and current inmates on how to gain admission to the RDAP by lying to the BOP about the existence, duration and extent of a qualifying substance abuse disorder.
“The indictment alleges that these defendants profited by coaching federal inmates and prospective inmates to lie about substance abuse issues in order to be released from prison well before each sentencing judge intended,” said U.S. Attorney Durham. “This is a scheme that defrauds the public by taking advantage of an important Bureau of Prisons treatment program that exists to help rehabilitate inmates with real addiction problems in order to prepare them for life after prison.”
“This indictment illustrates the depths to which federal investigators will go to uncover fraud of all types,” said FBI Special Agent in Charge Turner. “The alleged fraudulent methods used to defraud government programs will not be tolerated and will continue to be vigorously investigated.”
“In this alleged RDAP scheme, the fraudsters not only undermined the authority of the judicial system to administer fair and impactful sentences, but they diverted vital substance abuse treatment from inmates who really needed it,” said IRS-CI Special Agent in Charge O’Connell. “IRS-CI’s tracing of fees allowed investigators to uncover the breadth of this alleged fraud and we are proud of our role in this collaborative law enforcement effort.”
The indictment charges Pham, Copenhaver and Moerland with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years. The indictment also charges Pham and Copenhaver with multiple counts of wire fraud, and offense that carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Trial Attorney Avi Perry of the Department of Justice’s Fraud Section, who has been designated as a Special Assistant U.S. Attorney for this matter. The prosecution in the District of Connecticut was facilitated by significant assistance from Assistant U.S. Attorney Meredith George Thomas of the U.S. Attorney’s Office for the Southern District of West Virginia.
U.S. Attorney Durham thanked the U.S. Attorney’s Office for the Western District of Michigan for its assistance in this matter.
Omega Protein Companies Agree to Pay $1 Million to Resolve Allegations They Misrepresented Compliance with Environmental Laws to Obtain a Federal LoanRead the Press Release
Omega Protein Corp. and Omega Protein, Inc. (collectively “Omega”) have agreed to pay $1 million to resolve allegations that Omega obtained a loan from the United States by falsely certifying compliance with federal environmental laws, the Department of Justice announced today. The matter was unsealed on Jan. 17, 2019.
Omega is based in Houston, Texas, and is a leading domestic producer of Omega-3 rich fish oil, protein-rich specialty fishmeal, and organic fish solubles for livestock and aquaculture feed manufacturers.
“This settlement demonstrates our continuing vigilance in protecting the integrity of federal programs and taxpayer dollars,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Companies will face appropriate consequences if they misrepresent their eligibility to participate in federal programs and divert resources from those who should receive federal support.”
“Businessmen and companies that lie to get their hands on taxpayer money will be held accountable for their actions,” said U.S. Attorney David C. Joseph. “When some people cheat, those who play by the rules are put at a disadvantage. This million dollar payment from Omega Protein to the U.S. Treasury is part of our ongoing effort to combat fraud and protect the taxpayer’s dollar.”
The settlement announced today resolves allegations that Omega violated the False Claims Act in March 2010 when it certified to the Department of Commerce that it was complying with federal environmental laws to obtain a $10 million loan. At the time Omega submitted the certification, it was knowingly violating the Clean Water Act (CWA). In 2013, Omega Protein, Inc. pled guilty to violations of the CWA between May 2008 and December 2010, by unlawfully discharging pollutants into U.S. waters and, between April 2009 and September 2010, by unlawfully discharging a harmful quantity of oil into U.S. waters. The criminal matter was United States v. Omega Protein Inc. No. 2:13-cr-00043-RAJ-TEM (E.D. Va.).
The civil settlement results from a lawsuit brought by Keland O. Harrison, a former employee of Omega, filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims, and share in any recovery. As part of today’s resolution, Mr. Harrison will receive $200,000 of the settlement proceeds.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Western District of Louisiana, and the United States Department of Commerce.
The civil case is captioned United States ex rel. Harrison v. Omega Protein Corp. and Omega Protein, Inc., Civil Action No.16-cv-00359 (W.D. La.). The claims resolved by the settlement, except as admitted in the criminal plea, are allegations only, and there has been no determination of liability.
Oceanside Man Sentenced to Prison for Stealing Benefits Intended for Widow of Military VeteranRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 and Assistant U.S. Attorney Matthew C. Brehm (619) 546-8983
NEWS RELEASE SUMMARY – January 28, 2019
SAN DIEGO – Michael Vanden Brink of Oceanside was sentenced by U.S. District Judge John A. Houston today to eight months in federal prison for stealing over $145,000 in benefits intended for the widow of a military veteran.
At the time of his guilty plea on September 5, 2018, Brink admitted that after the widow’s death in 2004, he converted her Department of Veterans Affairs benefits to his own use. Brink further acknowledged that he knew that he was not entitled to the victim’s benefits, and that he knew the money deposited into the widow’s bank account (over which he had control) rightfully belonged to the United States. But rather than notifying the bank that the widow had died, he used the funds to pay for his own personal expenses, ultimately converting a total of $145,035 in Veterans Affairs money to his own use.
U.S. Attorney Robert S. Brewer commended prosecutors and the Criminal Investigators Division of the Department of Veterans Affairs Office of Inspector General, for their hard work on the case.
“The United States Attorney’s Office is committed to protecting the integrity of the Department of Veterans Affairs and the benefits it provides,” Brewer said. “The prison sentence imposed in this case is an appropriate punishment for someone who, for more than a decade, stole taxpayer money intended for our nation’s veterans and their families.”
In addition to his prison sentence, Judge Houston ordered Brink to serve three years on supervised release and to pay $145,035 in restitution to the Department of Veterans Affairs.
DEFENDANT Case Number 18-cr-3894-JAH
Michael Vanden Brink Oceanside, CA Age: 57
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment
AGENCIES
U.S. Department of Veterans Affairs, Office of Inspector General – Criminal Investigations Division
Northrop Grumman Systems Corporation Agrees to Pay $5.2 Million to Settle Allegations of False Labor ChargesRead the Press Release
The Justice Department announced today that Northrop Grumman Systems Corporation (NGSC) has agreed to pay $5.2 million to resolve its alleged False Claims Act liability for falsely billing labor under contract with the United States Postal Service (USPS). NGSC, which is headquartered in Falls Church, Virginia, provides information and technology services to commercial and government customers, including the USPS.
“Those who do business with the government must do so fairly and honestly,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will seek appropriate remedies against government contractors who knowingly overcharge the government for their services.”
The settlement concerns the Enterprise Technology Services Contract (ETS Contract) between NGSC and USPS. The ETS Contract required NGSC to provide qualified labor and management services to augment information technology services at USPS data centers around the country. The ETS Contract began in 2009 through a predecessor entity, Northrop Grumman Information Technology Inc., which merged with NGSC in 2010.
Under the ETS Contract, NGSC billed USPS for personnel performing information and technology services using hourly rates established for each of more than 100 labor billing categories. The United States alleges that NGSC knowingly billed certain personnel working under the ETS Contract for which they did not have the education and/or experience identified by these categories.
“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Steven Stuller, Acting Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within these contracts. In this instance, we worked hand-in-hand with the Department of Justice's Civil Division to help ensure a reasonable case-related resolution. We applaud the exceptional work by the investigative team and know it will have a positive impact on Postal Service operations.”
This matter was handled by the Civil Division’s Commercial Litigation Branch, the USPS Office of the Inspector General, and the USPS Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
New York Man Sentenced to More Than Four Years in Prison for Engaging in Extensive, Four-Year Cyberstalking Campaign Against Former GirlfriendRead the Press Release
A New York man was sentenced on Jan. 23 in U.S. District Court in the Southern District of New York to 50 months in prison for engaging in an extensive, four-year cyberstalking campaign that targeted a woman he dated for several months. The victim’s name is being withheld to protect her privacy.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York made the announcement.
David Waldman, 50, of New York, New York, was sentenced by U.S. District Court Judge Katherine Polk Failla of the Southern District of New York, who also ordered him to serve three years of supervised release following his prison sentence. Waldman, a non-practicing lawyer, was initially arrested in June 2018 and has been detained since his arrest. In August 2018, he pleaded guilty to one count of cyberstalking.
According to admissions made in connection with his plea and evidence presented at sentencing, Waldman engaged in an extensive cyberstalking campaign targeting a woman he briefly dated. The campaign began in April 2014, shortly after Waldman and the victim ended their relationship, and continued intermittently until the date of Waldman’s arrest. Over the course of almost four years, Waldman sent the victim hundreds of text messages, voicemail messages, and e-mail messages, and made voluminous posts on a variety of online platforms, in which he falsely claimed, among other assertions, that she abused drugs, had been diagnosed with bipolar and narcissistic personality disorder, and fabricated claims that she had been a victim of child sexual abuse. Waldman also sent email messages to the victim’s employers, accusing her of being a “habitual drug user” and claiming that he would sue her for defamation, theft, illegal trespass, violating HIPAA, and engaging in other “illegal behaviors.”
Throughout the four-year campaign, Waldman also repeatedly threatened to rape, kidnap, torture, injure, and kill the victim, kill members of her family, as well as threatened to kill himself at her apartment. As recently as 2018, Waldman continued to surveil the victim online and acquired tools that could be used to injure her. During the search of Waldman’s apartment, agents found, on his kitchen counter, a large hunting knife, which was covered in a sheath. He had a smaller knife in his bedroom. Waldman also kept a bb gun in his closet and a lock-picking kit in his carrying bag. According to Waldman’s internet browser history, in 2018, Waldman tracked the victim’s whereabouts, including her running route, and researched telescopes, “pellet pistols,” “air rifles,” and other similar devices.
Over the course of Waldman’s cyberstalking campaign, the victim obtained multiple state court orders of protection against him. Waldman repeatedly violated these orders.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Nicholas Chiuchiolo of the Southern District of New York prosecuted the case.
New York Man Sentenced for Illegal Possession of FirearmsRead the Press Release
HUNTINGTON, W.Va. – A New York man who illegally possessed firearms in Cross Lanes in 2017 was sentenced today to 41 months in federal prison, announced United States Attorney Mike Stuart. Andre Durrell Watson, 33, previously pled guilty to prohibited possession of a firearm by a felon. U.S. Attorney Stuart commended the investigative efforts of the Federal Bureau of Investigation and the United States Postal Inspection Service.
In May and June of 2017, Watson was living at 5035 St. Patrick Circle in Cross Lanes. Agents executed a search warrant at the residence on June 1, 2017, and recovered four firearms along with a large quantity of ammunition. Watson admitted during his plea hearing that he possessed the firearms, a .40 caliber pistol, a 9mm pistol, and two 5.56mm AR-15 style rifles. Watson also admitted that the .40 caliber pistol was previously stolen. Watson was convicted in 2005 in Philadelphia, Pennsylvania of the felony offense of burglary and was prohibited from possessing firearms by virtue of his conviction.
Assistant United States Attorney Joseph F. Adams handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
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.
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New Vineyard Man Sentenced to More than 13 Years in Prison on Gun and Drug ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jordan Richard, 25, of New Vineyard, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to 160 months years in prison and three years of supervised release for conspiring to distribute cocaine, heroin, fentanyl and oxycodone and discharging a firearm in relation to that conspiracy.
According to court records, between January 2016 and September 2017, the defendant and others conspired to distribute cocaine, heroin, fentanyl, and oxycodone in Franklin County. The defendant supplied drugs to others from his residence in Rangeley, Maine and later from his residence in New Sharon, Maine.
Only July 28, 2016, the defendant shot and killed one of two men who came to his Rangeley residence to rob him. The second man fled and was later captured by federal agents. Investigators responding to the robbery seized from the defendant’s residence a large quantity of cocaine, $20,883, drug scales, drug packaging materials, cellular telephones, drug ledgers and a Beretta 9mm semi-automatic handgun used during the shooting.
“This case demonstrates that drug dealing is a violent, criminal business,” said U.S. Attorney Halsey B. Frank. “One man is dead. Another is going to spend over a decade in prison. We intend to do everything we can to get guns out of the hands of drug dealers.”
The case was investigated by the U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol Tobacco Firearms and Explosives; the Maine State Police; and the Rangeley Police Department; with assistance provided by the Maine Office of the Attorney General. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Nederland Bomber Sentenced to 27 Years in Federal PrisonRead the Press Release
DENVER – David Michael Ansberry, 66 years old, of Berkley, California was sentenced to 324 months (27 years) in federal prison for attempting to detonate an improvised explosive device outside of the Nederland Police Station in Nederland, Colorado, U.S. Attorney Jason R. Dunn and FBI Denver Special Agent in Charge Dean Phillips announced. United States District Court Judge Christine Arguello entered the sentence against Ansberry on January 25, 2019. Ansberry was remanded into the custody of the United States Marshals.
Ansberry pled guilty without a plea agreement on July 18, 2017, to use and attempted use of a weapon of mass destruction. According to facts relied upon during sentencing, including a statement of facts filed with the Court, before dawn on October 11, 2016, Ansberry placed a radio-controlled explosive device that was concealed in a backpack at the foot of a police parking sign at the Nederland Police Station. Ansberry, who had rented a room at an Inn across the street, attempted to detonate the bomb by calling an attached telephone multiple times. A Nederland citizen testified that he was on a balcony directly above the bomb when Ansberry tried to detonate it. However, the bomb failed to detonate. The backpack was then recovered by a police officer who, without realizing its contents, brought the bomb into the station. When the officer realized that the backpack contained a bomb, he evacuated the station and plaza in which it was located.
The Boulder County Regional Bomb Squad, Nederland Police Department, Nederland Fire Department, Federal Bureau of Investigation, and medical and hazardous materials teams responded to the incident. Using two robots, law enforcement officers removed the bomb from the police station and tested its contents. Those tests revealed the high explosive, hexamethylene triperoxide diamine (HMTD), as well as other chemicals and hardened objects inside the backpack. Using the robots and an inert aluminum slug, bomb squad members detonated the HMTD in place due to its instability and explosiveness.
Ansberry was evacuated from the Inn by the Nederland Fire Department before the HMTD was detonated. He was arrested on October 16, 2016, at O’Hare Airport in Chicago, Illinois after the investigation quickly identified him as the bomber. FBI Agents found “STP” stickers in his luggage that matched an STP sticker found at the scene of the bombing. That sticker represented the logo of a counterculture group called, “Serenity, Tranquility, and Peace,” that resided near Nederland in the 1960’s and 1970’s and of which Ansberry had been a member. The STP sticker found at the scene of the bombing had hand-written on it, “RIP Deputy Dawg Murdered by Marshal 7/17/71.” This was a reference to an STP member named Guy Howard Gaughner who had been murdered in Nederland in 1971. A diary recovered from Ansberry contained entries referring to the death of Gaughner and saying, “Poor Deputy. REVENGE is called for.”
In sentencing Ansberry, Judge Arguello applied the terrorism enhancement in the United States Sentencing Guidelines, finding that Ansberry’s actions were calculated to influence or affect the conduct of government or to retaliate against government conduct.
“We’re pleased that the Court saw this case for what it is – an act of domestic terrorism. These are among the most serious cases that we prosecute,” said United States Attorney Jason Dunn. “Together with our law enforcement partners, we are committed to aggressively prosecuting these cases to protect the life and safety of all our citizens, particularly those who serve and protect the public.”
“The FBI is committed to proactively and thoroughly investigating national security matters and protecting our citizens from those who intend to cause harm in our communities,” said FBI Denver Special Agent in Charge Dean Phillips. “Thanks to the diligence and perseverance of our investigators and the U.S. Attorney’s Office, David Ansberry will now face the consequences of his actions. A special thanks to the Boulder County Sheriff’s Office and Nederland Police Department. Their assistance and support was instrumental in this investigation.”
This case was investigated by the Denver Division of the Federal Bureau of Investigation together with the Nederland Police Department, Boulder County Sheriff’s Office, Longmont Police Department, Boulder Country Regional Bomb Squad, Nederland Fire Department, and the FBI Terrorist Explosive Device Analytical Center Explosives Unit. Assistant United States Attorneys Gregory Holloway and David Tonini, and Trial Attorney Jennifer Levy of the Department of Justice Counterterrorism Section, are handling this prosecution.
CASE NUMBER: 16-cr-0341-CMA
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Navy Captain Indicted on Charges of Obstruction of Justice and Other OffensesRead the Press Release
On Jan. 8, a federal grand jury sitting in the Middle District of Florida returned an indictment charging a U.S. Navy Captain with obstruction of justice, concealment, falsifying records, and false statements during the investigation of the death of a civilian at Naval Station Guantanamo Bay (“GTMO”) in Guantanamo Bay, Cuba.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement.
Captain John Nettleton, 53, of Jacksonville, Florida, was charged with two counts of obstruction of justice related to his actions during the Navy’s investigation of the death of Christopher M. Tur, the Loss Prevention Safety Manager at GTMO’s Naval Exchange. Nettleton was also charged with one count of concealing information, two counts of falsifying records, and five counts of making false statements.
Tur, 42, was found drowned in the waters of Guantanamo Bay on Jan. 11, 2015. An autopsy revealed that Tur had suffered injuries prior to his drowning. At the time of Tur’s death, Nettleton was the Commanding Officer of GTMO.
According to the indictment, Tur confronted Nettleton at a party at the GTMO Officers’ Club on Jan. 9, 2015 with allegations that Nettleton and Tur’s spouse had engaged in an extramarital affair. Later that same evening, Tur went to Nettleton’s residence and a physical altercation ensued that left Tur injured. Tur was reported missing on Jan. 10, 2015 by other residents of GTMO. Despite knowing that Tur had been at his residence and injured during the altercation, Nettleton falsely informed his superior officers and other Navy personnel that Tur had last been seen at the Officer’s Club the night before, the indictment alleges. Nettleton also allegedly did not report that Tur had accused him of the extramarital affair, that Nettleton and Tur had engaged in a physical altercation at Nettleton’s residence, or that Tur had been injured. The indictment further alleges that Nettleton persisted in concealment and false statements as the search for Tur and then the investigation into the circumstances of his death continued.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Naval Criminal Investigative Service and is being prosecuted by Deputy Chief Todd Gee and Trial Attorney Peter Nothstein of the Criminal Division’s Public Integrity Section. Former Public Integrity Section Trial Attorney Mark Cipolletti also assisted in the investigation.
Monroe County Man Sentenced to More Than 12 Years in Prison for Heroin and Sex TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jamiell Sims, age 30, of Monroe County, Pennsylvania, was sentenced on January 17, 2019, to 151 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion, for participating in a conspiracy that forced or coerced women to engage in prostitution in northeastern Pennsylvania, and for distributing heroin on four separate occasions in Monroe County.
According to United States Attorney David J. Freed, Sims, who used the street name “Millz,” previously pleaded guilty to conspiring with others to commit sex trafficking by force, fraud, and coercion between 2011 and June 2014, and to distributing heroin on four occasions between September 19, 2016 and October 6, 2016.
Sims’s conviction and sentence resulted from an investigation into the activities of a street gang known as the Black P-Stones. The Black P-Stones would “beat-in” male gang members to the gang and female members were “sexed-in” to the gang. The Black P-Stones obtained heroin in New York and distributed the heroin in Stroudsburg and locations in the state of Maine. Couriers were used to transport heroin from New York to Maine.
Females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various area hotels/motels to work as prostitutes. Male gang members used threats, force, drugs, and intimidation to coerce females to engage in prostitution.
Judge Mannion also ordered the defendant to serve five years of supervised release following his prison sentence. Sims must also comply with sex offender registration and notification requirements.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Monroe County Man Sentenced to Five Years in Prison for Role in Heroin ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Young, age 39, of Stroudsburg, Pennsylvania, was sentenced on January 23, 2019 by Senior U.S. District Court Judge James M. Munley to five years’ imprisonment and three years on supervised release for his role in a Monroe County-based conspiracy that was responsible for distributing heroin and cocaine during a three-year time period.
According to United States Attorney David J. Freed, Young previously pleaded guilty to committing the offense between 2012 and 2015. Young admitted to conspiring with others to obtain the drugs from a supplier in Patterson, New Jersey, then transport the drugs to Monroe County where they were sold to sub-distributors and customers. Young admitted to making at least five trips to Patterson to obtain multiple “bricks” of heroin. Each “brick” of heroin has 50 bags. The amount of heroin obtained by Young was equivalent to approximately 3,000-4,000 retail bags.
In imposing the sentence, Judge Munley noted the dangerous impact of heroin trafficking on the people of our communities.
Young was one of seven people charged by a federal grand jury in a superseding indictment in March 2015. The others charged—Eddie Pace, Shawnette Isaac, Daryl Trent, William Young, Catherine Abbey, Myron Owens, and Anton Woodson—all previously entered guilty pleas in the case. Owens was sentenced to 140 months in prison. Trent received a 90-month prison sentence. Woodson was sentenced to 63 months’ imprisonment. Isaac received a 30-month prison sentence. Abbey was sentenced to one year in prison. Pace is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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Monroe County Man Pleads Guilty to Making Multiple Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Douglas DeHaven, age 35, of East Stroudsburg, Monroe County, pleaded guilty on January 11, 2019, before Senior United States District Court Judge James M. Munley to making false statements in connection with the purchases of multiple firearms.
According to United States Attorney David J. Freed, DeHaven admitted to providing false information to federally licensed firearms dealers regarding the purchases of fourteen firearms between January 5, 2018 and February 11, 2018. Two of the firearms were purchased from Bella Mia Jewels in Tannersville, Monroe County; nine of the firearms were purchased from Dunkelberger’s Sports Outfitters, in Brodheadsville, Monroe County; and three of the firearms were purchased from Dunkelberger’s Sports Outfitters, in Stroudsburg, Monroe County.
A sentencing date for DeHaven is scheduled for April 18, 2019.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Missouri Woman Charged with Assaulting Infant Child While Living OverseasRead the Press Release
On Dec. 11, a federal grand jury in Kansas City, Missouri returned a six-count indictment against a woman for assaulting her infant child while living in military housing in Germany and for obstructing justice and making false statements during the course of the subsequent federal investigation.
Baillie Rachelle Dickenson, a.k.a. Baillie Hannah, 28, was residing in Kaiserslautern, Germany when the events set forth in the indictment occurred. She now lives in St. Joseph, Missouri. She is charged with two counts of assault resulting in serious bodily injury, two counts of obstruction of justice, and two counts of making a false statement to a federal officer. Dickenson was arrested on Jan. 2, and arraigned before Magistrate Judge Lajuana Counts on Jan. 9. Trial in this matter has been scheduled for the Sept. 23, 2019 jury trial docket.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Timothy A. Garrison of the Western District of Missouri, Major General David P. Glaser of the U.S. Army Criminal Investigation Command, and Darrin E. Jones, FBI Special Agent in Charge, Kansas City Division, made the announcement.
The indictment alleges that on or about March 12, 2016, Dickenson was living overseas in Kaiserslautern with her then-husband, Derreck Dickenson, who was an active-duty member of the U.S. Army. The couple resided in military housing with their two minor children, a daughter who was aged 16 months old and a son who was two months old at that time. While he was in her custody, Dickenson allegedly assaulted her son, causing serious injuries, including multiple fractures, eye injuries, and a serious brain injury. During the ensuing investigation of the matter, she obstructed justice by concealing a cell phone and influencing her husband’s statement to investigators, and made a series of false statements to investigators when they questioned her.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the U.S. Army Criminal Investigation Command and the FBI. The prosecution is being handled by Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Teresa Moore of the Western District of Missouri.
Minnesota Tax Return Preparer Sentenced to More Than 10 Years in Prison for Leading a Multimillion Dollar IRS Fraud Scheme and Failing to Appear at SentencingRead the Press Release
A Minneapolis based tax return preparer was sentenced to serve 121 months in prison today for managing and directing a fraudulent return-preparation business, Primetime Tax Services Inc. (Primetime), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman.
Kenneth Mwase, who also fraudulently used the name Chatonda Khofi, 54, of St. Paul, Minnesota, pleaded guilty to one count of conspiracy to defraud the United States, one count of aggravated identity theft, and one count of failure to appear at sentencing.
In addition to the term of imprisonment, Chief U.S. District Judge John R. Tunheim also ordered Mwase to serve 3 years of supervised release, following his release from prison.
In April 2014, the defendant was charged in a seventy-count second superseding indictment, along with codefendants Ishmael Kosh, 39, of Philadelphia, Pennsylvania, Amadou Sangaray, 36, of New York, New York, and Francis Saygbay, 43, of Minneapolis, and David Mwangi, 47, of Arlington, Texas, for their involvement with Primetime, a tax preparation business with three storefronts in the Minneapolis area. Together with his co-defendants, Mwase prepared and filed with the Internal Revenue Service (IRS) over 2,000 fraudulent individual income tax returns on behalf of customers of Primetime for the years 2006, 2007 and 2008. Mwase and his co-defendants also prepared approximately 1,700 fraudulent state income tax returns filed with the state of Minnesota for those years.
In November 2014, Mwase plead guilty to one count of conspiracy to defraud the Government and one count of aggravated identity theft. As part of his plea agreement, Mwase admitted overseeing a conspiracy that caused a tax loss of over $2.5 million dollars. Mwase and co-defendants Kosh, Sangaray, and Saygbay established Primetime’s flagship location in Brooklyn Center, Minnesota, in late 2006. They then prepared tax returns in 2007, 2008, and 2009, for Primetime’s customers, which reported false dependents, fake business income and losses, inflated deductions, inflated credits, and false filing statuses, in order to get their customers inflated refunds. The defendants maintained control over their customers’ IRS refunds by instructing that those refunds be sent directly to Primetime. They then caused their preparation fee to be directly withdrawn from the refund. When a customer came to pick up their refund check or debit card, the defendants sometimes escorted that customer to a check cashing location or ATM and demanded additional cash.
Mwase was scheduled to be sentenced on August 18, 2016, following the two-week trial of co-defendants Kosh and Sangaray, which occurred in September 2015, and the guilty plea of co-defendant Saygbay, in November 2015. However, on August 7, 2016, he fled to South Africa, using a fake identity and a fraudulently-obtained Zimbabwean passport. In April 2017, Mwase was charged with one count of failure to appear for sentencing.
With the assistance of the United States Department of State, INTERPOL, and Zimbabwean and South African authorities, Mwase was arrested in South Africa in May 2018. Over the years, Mwase used multiple fake identities, including passing himself off as Chatonda Khofi, an individual born in Washington, D.C. to diplomats from Malawi. In October 2018, following an extradition request from the United States, Mwase was surrendered to the custody of the United States Marshals Service and returned to Minnesota to face sentencing. On November 16, 2018, Mwase pled guilty to the charge of failing to appear for sentencing. Mwase’s co-conspirators were previously sentenced to prison.
The case was investigated by special agents of IRS-Criminal Investigation and deputy marshals of the United States Marshals Service. It was prosecuted by Trial Attorneys Thomas W. Flynn and Arthur J. Ewenczyk, as well as former Trial Attorneys Dennis R. Kihm and Ryan R. Raybould, of the Tax Division who prosecuted the case. The Tax Division would like to thank the Minnesota Department of Revenue for their significant work in identifying the tax fraud and identity theft occurring at Primetime.
Miami Woman Sentenced to Prison for Role in $4.66 Million Medicare Fraud SchemeRead the Press Release
A woman from Miami, Florida was sentenced to 51 months in prison on Jan. 17 for her role in a $4.66 million health care fraud scheme involving several Miami-area home health agencies, including Sunshine Home Health Services Inc., Empire Home Health Agency Inc., Mildred & Marce Home Health Care Services Inc., and Nursing Care PRN Inc., which purported to provide home health services to Medicare patients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Norma Zayas, 29, of Miami, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida. Judge Martinez also ordered Zayas to pay $4,658,241.00 in restitution and to forfeit $186,650.50. Zayas pleaded guilty on Oct. 22, 2018 to one count of conspiracy to commit health care fraud.
As part of her guilty plea, Zayas admitted that from approximately January 2010 through approximately January 2014, she operated Sunshine, Empire, and Mildred & Marce Home Health and paid kickbacks to patient recruiters in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services. Zayas further admitted that she became the true owner of Nursing Care PRN, which she placed in the name of a nominee owner. She also paid kickbacks to patient recruiters who referred Medicare beneficiaries to Nursing Care PRN.
The defendant admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of nearly $4.66 million. Zayas was charged along with Margarita Palomino, 54, of Homestead, Florida in an indictment returned on June 7, 2018. Palomino was sentenced in December 2018 to a term of 78 months in prison and ordered to pay over $4.65 million in restitution, as well as to forfeit $186,650.50.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Leslie Wright prosecuted the case; the case is now being handled by Trial Attorney Emily Gurskis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Miami Woman Sentenced to More Than Three Years in Prison for Role in $1.36 Million Medicare Fraud SchemeRead the Press Release
A Miami, Florida woman was sentenced to 46 months in prison on Jan. 3 for her role in a $1.36 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tania Gudin, 55, was sentenced by U.S. District Judge K. Michael Moore of the Southern District of Florida. Judge Moore also ordered Gudin to pay $1,366,317.59 in restitution and to forfeit $512,806.05. Gudin pleaded guilty on Oct. 23, 2018 to one count of conspiracy to commit health care fraud and wire fraud.
Gudin pleaded guilty to accepting kickbacks for recruiting and referring Medicare beneficiaries to five Miami-area businesses that claimed to provide home health care services: Maya Home Health Care Corp., Floridian Home Health Care Corp., Healthylife Home Care Inc., ACM Home Health Corp., and Humanity Home Health Inc. She also owned her own medical clinic, the New City Medical Center Inc., which she admittedly utilized to further the scheme, including by obtaining prescriptions for her recruited patients from medical professionals at New City.
As part of her guilty plea, Gudin admitted that from approximately July 2011 through approximately November 2014, she accepted kickbacks in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services, to serve as patients of the five agencies. Gudin caused Maya, Floridian, Healthylife, ACM, and Humanity to submit false claims to Medicare for home health services for the beneficiaries she recruited, which were medically unnecessary, not eligible for Medicare reimbursement and/or – either with Gudin’s knowledge or direction – never actually provided.
Gudin admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of at least $1.36 million.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Leslie Wright of the District of Boston prosecuted the case; the case is now being handled by Trial Attorney Emily Gurskis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Miami Woman Sentenced to Prison for Role in $750,000 Medicare Fraud SchemeRead the Press Release
A woman from Miami, Florida was sentenced to 30 months in prison on Jan. 15 for her role in a $750,000 health care fraud scheme involving six Miami-area home health agencies, Sunshine Home Health Services Inc., Empire Home Health Agency Inc., A&C Home Health Care Inc., Healthylife Home Car, Humanity Home Health and ACM Home Health Corp., which purported to provide home health services to Medicare patients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Milena Gonzalez, 54, of Miami, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida. Judge Martinez also ordered Gonzalez to pay $478,560.54 in restitution and to forfeit $346,595.00. Gonzalez pleaded guilty on Oct. 24, 2018 to one count of conspiracy to defraud the United States and to pay and receive health care kickbacks.
As part of her guilty plea, Gonzalez admitted that from approximately November 2010 through approximately September 2015, she accepted kickbacks in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services, to serve as patients of the six agencies. Gonzalez further admitted that in addition to receiving kickbacks, she paid kickbacks to the owners and operators of a medical clinic called City Rehab Corp., in return for prescriptions for home health services for her recruited Medicare beneficiaries.
The defendant admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of at least approximately $750,000.
Gonzalez was charged along with Nelson Anzardo Calzadilla, 55, of Miami, in an indictment returned on June 15, 2018. Nelson Anzardo Calzadilla pleaded guilty to conspiracy to commit health care fraud and wire fraud and is scheduled for sentencing in February 2019.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Leslie Wright prosecuted the case; the case is now being handled by Trial Attorney Emily Gurskis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Mexican National Pleads Guilty to Marijuana Cultivation in Wilderness Area in Kern CountyRead the Press Release
FRESNO, Calif. — Felipe Angeles Valdez-Colima (Valdez), 35, of Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.
According to court documents, Valdez and his co-defendants, Mauricio Vaca-Bucio (Vaca), 31, and Rodolfo Torres-Galvan, 29, (Torres), both of Mexico, were apprehended in the Kiavah Wilderness area of the Sequoia National Forest, a federally designated wilderness area, after a two-month investigation. Law enforcement officers saw Valdez and Torres emerge from the forest at a drop point that had long been used by marijuana cultivators to access grow sites in that remote area. The men entered a vehicle driven by Vaca and were later stopped in the Kern County town of Weldon. Officers found freshly harvested marijuana in their vehicle and located over 1,800 marijuana plants at the grow sites on the interconnected trails from the drop point. The officers also found harmful and illegal pesticides, including carbofuran and zinc phosphide, in the vehicle and at the grow sites. In pleading guilty, Valdez agreed to pay over $7,000 in restitution to the U.S. Forest Service for the damage he caused to the National Forest.
The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.
This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Valdez is scheduled for sentencing on April 22, 2019. He faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges against Vaca and Torres are still pending. As to them, the charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican Alien Smuggler Sentenced to 70 Months in PrisonRead the Press Release
Tampa, Florida – On January 11, 2019, U.S. District Judge Elizabeth M. Kovachevich sentenced Eutiquio Mendoza-Nandho (46, Mexico) to 5 years and 10 months in federal prison for conspiring to bring and bringing illegal aliens into the United States. Mendoza-Nandho had pleaded guilty on August 29, 2018.
According to court documents, Mendoza-Nandho was the organizer and leader of a Mexican smuggling organization. He worked with his son, Leonel Mendoza-Yerbafria, and family member, Juan Nopal-Nopal, to smuggle at least 78 illegal aliens—many of whom had been previously deported—from Mexico into Texas. They then transferred the aliens to destinations across the United States, including into the Middle District of Florida. The court found that the conditions of the trip, which involved multiple days of walking across the desert in dangerous conditions and without sufficient food or water, put the aliens at substantial risk of injury or death.
According to James C. Spero, the Special Agent in Charge of Homeland Security Investigations (HSI), “HSI remains steadfast in our commitment to aggressively pursue members of transnational criminal organizations that exploit and endanger people they smuggle into this country. These smugglers were motivated by greed in complete disregard for the safety of those they were smuggling. HSI will continue to work with our law enforcement partners, such as Border Patrol, to maintain the integrity of our border and the nation’s immigration laws.”
Tampa Border Patrol Agent in Charge Glenn Lendel stated, “This successful prosecution highlights Border Patrol’s dedication to combatting transnational criminal networks that smuggle aliens into the United States. In close collaboration with our local, state, and federal partners, Border Patrol leverages all available resources to target and dismantle these organizations that threaten border communities.”
This case was investigated by HSI and the United States Border Patrol. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Maryland man indicted on child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Paul Glen Hamilton, Jr., of Bowie, Maryland and Melbourne, Florida, was indicted by a federal grand jury sitting in Martinsburg on January 23, 2019 on a child pornography charge, United States Attorney Bill Powell announced.
Hamilton, age 23, was indicted on one count of “Possession of Child Pornography.” Hamilton is accused of having child pornography that was transported by computer in September 2018 in Berkeley County.
Hamilton faces up to 20 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 is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Berkeley County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Luzerne County Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Aaron Bangaroo, age 37, of Kingston, Luzerne County, pleaded guilty on January 24, 2018, before U.S. District Court Judge Robert D. Mariani to possession with intent to distribute heroin and possession of firearms in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Bangaroo admitted to possessing heroin for further distribution in Luzerne County in July 2015, and to possessing firearms in furtherance of his drug trafficking activities. Investigators made a number of purchases of packets containing heroin from Bangaroo, and then obtained a search warrant for Banagroo’s residence in Kingston, where additional amounts of heroin and two loaded firearms were found.
Judge Mariani ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms, and the Kingston Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law the firearms charge carries a mandatory minimum sentence of 5 years’ imprisonment, which must be served consecutively to any other sentence. The heroin trafficking charge carries a maximum sentence of up to 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lorain man sentenced to life in prison for selling fentanyl that killed a 23-year-old Lorain manRead the Press Release
A Lorain man was sentenced to life in prison for selling fentanyl that killed a 23-year-old Lorain man.
Russell Davis, 50, was sentenced to life in prison by U.S. District Judge Christopher A. Boyko. The jury convicted Davis last year on one count of distribution of fentanyl that resulted in death.
Davis sold fentanyl to Jacob Castro-White that resulted in Castro-White fatally overdosing on March 7, 2016, according to trial testimony and court records.
“Seeking long prison sentences for those who profit from selling the drugs killing our friends and neighbors is a crucial component to overcoming this epidemic that has cause so much pain and suffering,” U.S. Attorney Justin Herdman said. “The Lorain Police Department, FBI, the Lorain County Prosecutor's Office are all to be commended for their diligence in this case.”
“It is almost a daily occurrence to hear of a death due to heroin or fentanyl,” said FBI Acting Special Agent in Charge Robert Hughes. “Law enforcement will continue to work collaboratively to hold accountable those that bring this poison and destruction to our communities.”
This case was prosecuted by Assistant U.S. Attorneys Robert Corts and Vasile Katsaros following an investigation by the FBI and Lorain Police Department, with assistance from the Lorain County Prosecutor's Office.
Jury convicts Billings man in armed casino robberyRead the Press Release
BILLINGS—A jury convicted Billings resident Antonio Francisco Gutierrez on January 16 in the 2018 armed robbery of Dotty’s Casino following a three-day trial, U.S. Attorney Kurt Alme said today.
The jury found Gutierrez, 36, guilty of three counts, including robbery affecting commerce, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm. Gutierrez is detained.
U.S. District Judge Susan Watters presided at the trial. Watters set sentencing for May 16.
Gutierrez faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the robbery count and a consecutive mandatory seven years to life, a $250,000 fine and five years of supervised release on the brandishing count.
Prosecutors alleged that on Feb. 5, 2018, Gutierrez asked co-defendant, Christopher Esrey, to drive him to Dotty’s Casino, on Montana Sapphire Drive, near Shiloh Road, to meet a friend to “get some money.” The pair arrived at the casino at about 11:43 p.m. Esrey waited in the car while Gutierrez entered the casino wearing a hood, hat and facemask. He tried to open the inner door but it was locked. Gutierrez pushed a buzzer to summon a casino attendant, who motioned for him to remove his clothing before she unlocked the inner door.
Gutierrez mimed as if he was going to remove the items and the attendant opened the door and began walking back to her station, prosecutors alleged. When the attendant unlocked the door, Gutierrez stopped removing his face coverings, took a pistol from his coat pocket, cocked it and pointed it at the attendant’s back. The attendant froze, raised her hands and complied with Gutierrez’s instruction to empty the till.
Gutierrez got back into the idling vehicle, and the attendant reported the robbery to the Billings Police Department. Gutierrez and Esrey eventually went to gamble at another casino, where they were detained by officers.
Esrey pleaded guilty to accessory after the fact and is to be sentenced on Feb. 7.
Assistant U.S. Attorneys Colin Rubich and Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings 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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Jacksonville Sex Offender Ordered to Pay $12,000 in Restitution to Victims of Child Sexual ExploitationRead the Press Release
Jacksonville, Florida – On January 8, 2019, United States District Judge Marcia Morales Howard ordered Craig Harry Lipinski (50, Jacksonville) to pay a total of $12,000 in restitution to two victims depicted in images and videos found in Lipinski’s collection of child pornography.
On January 30, 2018, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and other law enforcement officers executed a search warrant at Lipinski’s home and arrested him. A search of Lipinski’s computer media revealed hundreds of videos and thousands of images that depicted children being sexually abused. Lipinski had downloaded these materials using the internet.
On June 5, 2018, Lipinski pleaded guilty to receiving child pornography over the internet. On November 19, 2018, he was sentenced to eight years and one month in federal prison followed by seven years of supervised release.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Man Sentenced to Life Imprisonment for His Role in the Overdose Death of A 23-Year Old WomanRead the Press Release
Jacksonville, Florida – On January 24, 2019, U.S. District Judge Henry Lee Adams, Jr. sentenced Ronald Johnson (32, Jacksonville) to life in federal prison for his actions leading to the overdose death of a 23-year old woman. On October 4, 2018, a federal jury found Johnson guilty of distributing a substance containing fentanyl and methoxyacetyl fentanyl that resulted in death, carrying a firearm in furtherance of his drug trafficking crime, and possessing a firearm as a convicted felon.
According to court documents and evidence submitted during the trial, on September 14, 2017, around midnight, the victim met with Johnson and purchased what she believed to be heroin. She contacted Johnson again around 5:00 p.m. the next day and met him at his apartment where she purchased what she believed to be heroin. Johnson sold her fentanyl. The victim went home early in the morning on September 16, 2017, and in the early afternoon was found dead in the bathroom, with a needle next to her. According to the medical examiner, the victim overdosed and died due to the fentanyl and methoxyacetyl fentanyl in her body.
“This verdict and sentence is an example of justice in the face of an epidemic that plagues our community,” said State Attorney Melissa Nelson. “We will continue to work with the U.S. Attorney’s Office and other law enforcement partners to aggressively prosecute these opioid-fueled overdose deaths.”
This case was investigated by the Jacksonville Sheriff’s Office and the State Attorney’s Office for the Fourth Judicial Circuit. It was prosecuted by Assistant United States Attorney Julie Hackenberry.