Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 22 January 2019
Project Huntington Update: Operation Saigon Sunset Defendant Sentenced to 108 Months in Prison for His Role in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – An Operation Saigon Sunset defendant was sentenced today to 108 months in prison for his role in a federal drug conspiracy, announced United States Attorney Mike Stuart. Manget Peterson, also known as “Money,” 45, of Detroit, previously pled guilty to an indictment charging him with conspiracy to distribute 100 grams or more of heroin and a quantity of fentanyl. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Significant drug dealer. Significant sentence for his crimes,” said United States Attorney Mike Stuart. “Manget Peterson peddled poisons and wreaked havoc in the City of Huntington for far too long. Our objective in implementing Project Huntington was to make the city safer by ridding city streets of dangerous drug dealers and holding them accountable. Huntington is no doubt safer today as a result of our efforts.”
Peterson admitted that between August 2017 and April 2018 he conspired with individuals to distribute heroin and fentanyl in Huntington, West Virginia. Peterson admitted that he obtained heroin from Willie Peterson, also known as “Chill,” in Detroit, Michigan to sell in Huntington and would send drug proceeds to Willie Peterson. Peterson also admitted that between September 2017 and April 2018 he supplied Lonnie Berry, II with heroin to sell in exchange for money
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
Follow us on Twitter: SDWVNews
###
Pittsburgh Man Pleads Guilty to Child Exploitation ChargeRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Ryan Grasha, 24, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on January 31, 2018, Grasha possessed approximately 250 images depicting the sexual exploitation of minors, some of whom were under the age of 12 years. Grasha obtained and distributed the sexually exploitive images over the Internet, using the "Omegle" and "Kik" peer-to-peer networks.
Judge Conti scheduled sentencing for May 14, 2019, at 3:30 p.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Grasha remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Grasha.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Monongalia County man admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Howard, of Morgantown, West Virginia, has admitted to his role in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Howard, age 32, pled guilty to one count of “Unlawful Use of Communication Facility.” Howard admitted to using a phone to distribute and conspire to distribute a controlled substance in April 2018 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Mineral County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Thomas Edward Wright, of Keyser, West Virginia, was sentenced today to 103 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Wright, age 30, pled guilty to one count of “Possession of a Stolen Firearm” in October 2018. Wright admitted to possessing a stolen .22 caliber long rifle in February 2016 in Mineral County.
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 Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Keyser Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Michigan Residents Arrested for Conspiracy to Provide Material Support to ISISRead the Press Release
Three residents of Lansing, Michigan, were arrested without incident Monday afternoon for conspiring to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS). The U.S. Attorney’s Office for the Western District of Michigan charged all three in a criminal complaint filed today in U.S. District Court in Grand Rapids, Michigan. The conspiracy charge is punishable by up to 20 years in federal prison.
Members of the FBI Joint Terrorism Task Force (JTTF) arrested Muse Abdikadir Muse (Muse Muse) at the Gerald R. Ford Airport in Grand Rapids, Michigan, after checking in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia. Shortly thereafter, law enforcement arrested alleged coconspirators Mohamud Abdikadir Muse (Mohamud Muse), and Mohamed Salat Haji (Haji). All three defendants are naturalized U.S. citizens who were born in Kenya.
According to the complaint affidavit, Muse Muse purchased airline tickets earlier this month to travel from Grand Rapids to Mogadishu, departing on Monday, January 21, 2019. Among other support, the complaint alleged Haji and Mohamud Muse aided in the purchase of the ticket and drove Muse Muse to the Grand Rapids airport, each knowing the true purpose of the travel was for Muse Muse to join and fight for ISIS.
The complaint asserts that all three defendants pledged allegiance to ISIS through videos they recorded themselves. Muse Muse and Haji allegedly discussed with each other their desire to join ISIS, to kill non-believers, and even to potentially use a car for a martyrdom operation to run down non-believers here in the United States if they could not travel overseas to fight for ISIS. Following the arrests, federal agents executed search warrants at a residence shared by Mohamud Muse and Muse Muse.
Assistant Attorney General for National Security John C. Demers, Andrew B. Birge, U.S. Attorney for the Western District of Michigan, and Tim Slater, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division, announced the arrests.
The public is reminded that a complaint contains only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces $269.2 Million Recovery from Walgreens in Two Civil Healthcare Fraud SettlementsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Gregory E. Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), Scott J. Lampert, Special Agent in Charge of HHS-OIG’s New York Regional Office, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Leigh-Alistair Barzey, Special Agent-in-Charge of the Defense Criminal Investigative Service (“DCIS”) Northeast Field Office, Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Matthew Modafferi, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, Northeast Area Field Office (“USPS-OIG”), and Thomas W. South, Deputy Assistant Inspector General for Investigations, U.S. Office of Personnel Management, Office of the Inspector General (“OPM-OIG”), announced today that the United States filed and settled two healthcare fraud lawsuits against national pharmacy chain WALGREENS BOOTS ALLIANCE, INC. (“WALGREENS”), pursuant to which WALGREENS must pay the United States and state governments a total of $269.2 million. The first settlement, approved on January 16, 2019, by U.S. District Judge Paul A. Crotty and unsealed today, requires WALGREENS to pay $209.2 million to resolve allegations that it improperly billed Medicare, Medicaid, and other federal healthcare programs for hundreds of thousands of insulin pens it knowingly dispensed to program beneficiaries who did not need them. The second settlement, approved on January 15, 2019, by U.S. District Judge J. Paul Oetken and unsealed today, requires WALGREENS to pay $60 million to resolve allegations that it overbilled Medicaid by failing to disclose to and charge Medicaid the lower drug prices that WALGREENS offered the public through a discount program. In both settlements, WALGREENS admitted and accepted responsibility for conduct the Government alleged in its complaints under the False Claims Act.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Medicare and Medicaid provide essential healthcare coverage to millions of people across this country. The financial integrity of these programs depends on truthful and accurate billing by pharmacies like Walgreens. Overbilling and improper billing of Medicare and Medicaid unduly burden taxpayers and put the solvency of these vital healthcare programs at risk. This Office will hold healthcare providers to account when they fail to deal honestly with federal programs.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Walgreens engaged in practices that undermined the integrity of the Medicare and Medicaid programs, compromised patient care, and wasted taxpayer dollars. Along with our law enforcement partners, HHS-OIG will continue to protect the individuals that depend on federally funded health care programs, and ensure that companies that do business with those programs do so in an honest fashion.”
DCIS Special Agent-in-Charge Leigh-Alistair Barzey said: “Health care fraud impacting the U.S. Department of Defense (DoD) is a top investigative priority for the DCIS. The settlements announced today by the U.S. Attorney’s Office are the direct result of a joint investigative effort by the DCIS, the FBI, HHS OIG, DoL OIG, OPM OIG, Postal OIG, and the U.S. Department of Justice. The successful resolution of these cases demonstrates the DCIS’s ongoing commitment to work with its law enforcement partners to combat health care fraud, protect Defense Health Agency funds, and ensure the integrity of TRICARE, the DoD’s health care system.”
DOL-OIG Special Agent-in-Charge Michael C. Mikulka said: “Walgreens defrauded the U.S. Department of Labor’s (DOL) Federal Employees’ Compensation Act Program and other health care programs out of millions of dollars by over-dispensing insulin pens at the risk of potentially causing harm to beneficiaries. We will continue to work with our law enforcement partners to protect the integrity of DOL’s benefit programs.”
USPS-OIG Special Agent in Charge Matthew Modafferi said: “This settlement sends a clear message to pharmaceutical chains to follow the law. Pharmacies that attempt to take advantage of federal benefit systems will be pursued by the Special Agents of the U.S. Postal Service Office of Inspector General, their law enforcement partners, and the U.S. Attorney’s Office.”
OPM-OIG Deputy Assistant Inspector General for Investigations Thomas W. South said: “The OPM-OIG has zero tolerance for fraud against the Federal Employees Health Benefits Program. Today’s settlement reflects our commitment to pursuing and preventing improper and illegal billing practices that waste taxpayer dollars and increase the cost of medical care. I would like to thank the DOJ attorneys, OPM-OIG agents, and their law enforcement partners for all their hard work.”
Insulin Pens Settlement
The United States’ complaint alleges that WALGREENS routinely submitted false days-of-supply data to federal healthcare programs when it sought federal reimbursement for insulin pens it dispensed to federal beneficiaries who did not need them. Specifically, WALGREENS engaged in two practices that resulted in the fraudulent submissions. First, WALGREENS configured its electronic pharmacy management system to prevent its pharmacists from dispensing less than a full box of five insulin pens, even when patients did not need that much insulin. Second, when a full box of insulin pens exceeded the federal healthcare program’s limit on the total days of supply (i.e., the total number of daily doses) that could be dispensed and reimbursed at that time, WALGREENS evaded this restriction by falsely stating in its reimbursement claims that the total days of supply did not go over the limit. As a result, federal healthcare programs paid WALGREENS millions of dollars for insulin that many beneficiaries did not actually need, and substantial quantities of valuable medication were wasted. This conduct also opened the door to potential healthcare risks and abuse, such as the improper resale of insulin pens on the Internet.
The settlement requires WALGREENS to pay approximately $168 million to the United States, and WALGREENS has agreed separately to pay approximately $41.2 million to state governments.[1] Under the settlement, WALGREENS admitted, among other things, that:
- When a federal health program denied a claim from WALGREENS because the reported days of supply for a full carton of five insulin pens exceeded the federal program’s days-of-supply limit, it was WALGREENS’s practice to dispense and bill for the full carton and reduce the reported days of supply to conform to the program’s days-of-supply limit; and
- WALGREENS thus repeatedly reported days-of-supply data to federal health programs that were different from, and lower than, the days-of-supply calculated according to the standard pharmacy billing formula.
Discount Drug Pricing Settlement
The United States’ complaint in this case alleges that WALGREENS operated a program called the Prescription Savings Club (the “PSC”), under which customers received discounts when they ordered drugs from WALGREENS. Medicaid regulations directed WALGREENS to seek Medicaid reimbursement only at the lowest of certain drug price points, including the “usual and customary price” (“U&C price”). Medicaid rules of many states defined the U&C price as the price offered through discount programs like the PSC. Contrary to these requirements, WALGREENS did not disclose to Medicaid the discount drug prices it offered customers through the PSC when it sought reimbursement from Medicaid. As a result, Medicaid programs paid WALGREENS more in reimbursements than they would have paid had WALGREENS disclosed the lower PSC prices.
The settlement requires WALGREENS to pay a total of $60 million, of which approximately $32 million is to the United States and approximately $28 million will go to state governments. Under the settlement, WALGREENS admitted, among other things, that:- Customers who enrolled in the PSC were eligible to receive discounts for thousands of types of drugs, and WALGREENS offered a savings guarantee under which PSC enrollees could recoup through a store credit the difference between the amount they paid to enroll in a given year and the amount they received in discounted savings in that year; and
- In submitting claims for reimbursement to Medicaid, WALGREENS did not identify its PSC program prices as its U&C prices for the drugs on the PSC program formulary, which resulted in the States paying more in reimbursement than they would have paid if WALGREENS had identified its PSC program prices.
Both cases arose from lawsuits filed by whistleblowers under the False Claims Act.
In connection with these settlements, WALGREENS has entered into a Corporate Integrity Agreement with HHS-OIG. The Corporate Integrity Agreement reaches broadly across WALGREENS’s retail and specialty pharmacies that bill federal health care programs. Board oversight, multi-site claims reviews to be conducted by an Independent Review Organization, and other Corporate Integrity Agreement requirements seek to foster adherence to federal health care program requirements and thereby protect the programs.
Mr. Berman praised the outstanding investigative work of the HHS-OIG, FBI, DOD-OIG, DOL-OIG, USPS-OIG, and OPM-OIG. He also thanked the Medicaid Fraud Control Units for Indiana, Washington, New York, and Texas for their assistance in these cases.
These cases are being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Li Yu and Jessica Jean Hu are in charge of the insulin pens case against Walgreens, and former Assistant U.S. Attorney Christopher Harwood was in charge of the discount drug pricing case against Walgreens.
[1] The Medicaid program is primarily administered by the states but financed jointly by federal and state funds.
Los Angeles-Area Attorney Arrested on Federal Drug Trafficking Charges Alleging Opioid Sale after Posting Ads on CraigslistRead the Press Release
LOS ANGELES – Members of a federal task force have arrested an attorney on narcotics distribution charges that allege she illegally sold oxycodone pills after offering drugs for sale on Craigslist.
Jackie Ferrari, 36, a resident of Downey, who investigators believe recently started a new job at a Beverly Hills law firm, was arrested late Friday without incident by law enforcement officers affiliated with the High Intensity Drug Trafficking Area (HIDTA) Task Force, which operates under the direction of the Drug Enforcement Administration.
The criminal complaint filed on January 15 and unsealed today specifically charges Ferrari with one count of distributing a controlled substance. The affidavit in support of the complaint states that a law enforcement source with a long history of purchasing narcotics from Ferrari made a buy earlier this month in which Ferrari sold the informant 50 oxycodone pills for $1,200. Ferrari subsequently sent the informant and other likely customers a text message that she “recently obtained a new supply of oxycodone and [had] other drugs available for sale,” according to the affidavit.
The investigation into Ferrari began after a 22-year-old woman died in August of a fentanyl overdose, and text messages on the victim’s phone initially indicated she may have purchased the narcotics from Ferrari. While investigators currently do not believe that Ferrari sold the narcotics that led to the overdose death, they have continued to investigate her “based on evidence…that she is a large-scale trafficker in opiates via the website Craigslist,” according to the affidavit, which notes that two local police departments developed information about Ferrari’s alleged drug trafficking activities in late 2017.
The affidavit also notes that records obtained from Craigslist pursuant to a subpoena demonstrate Ferrari’s “long history of posting advertisements for…the sale of narcotics” using coded names such as “roxy dolls” (i.e., Roxicodone, a short-acting version of oxycodone), “Chinese **White** Rice” (i.e., “China white” or powdered heroin, which is often mixed with fentanyl) and “Black Rice” (i.e., black tar heroin).
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Ferrari is expected to make her initial appearance in this case this afternoon in United States District Court.
If convicted of the charge in the criminal complaint, Ferrari would face a statutory maximum sentence of 20 years in federal prison.
The investigation into Ferrari is being conducted by the HIDTA Task Force and was led by agents and officers with the Drug Enforcement Administration and the Los Angeles County Sheriff’s Department. The task force also includes representatives of the Los Angeles Police Department; the United States Department of Veterans Affairs, Office of Inspector General; the California Department of Justice; and the Los Angeles County District Attorney’s Office, Office of Investigations.
The Costa Mesa Police Department and the Cypress Police Department provided substantial assistance in the investigation.
The case against Ferrari is being prosecuted by Assistant United States Attorneys Benjamin Barron and Carley A. Palmer of the Organized Crime Drug Enforcement Task Force.
Lansing Residents Arrested for Conspiracy to Provide Material Support to ISISRead the Press Release
Grand Rapids, MI - Three residents of Lansing, Michigan, were arrested without incident Monday afternoon for conspiring to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS). The U.S. Attorney’s Office for the Western District of Michigan charged all three in a
criminal complaint unsealed today in U.S. District Court in Grand Rapids, Michigan. The conspiracy charge is punishable by up to 20 years in federal prison.Members of the FBI Joint Terrorism Task Force (JTTF) arrested MUSE ABDIKADIR MUSE (MUSE MUSE) at the Gerald R. Ford International Airport in Grand Rapids, Michigan, after he checked in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia. Shortly thereafter, law enforcement arrested alleged coconspirators MOHAMUD ABDIKADIR MUSE (MOHAMUD MUSE), and MOHAMED SALAT HAJI (HAJI). MUSE MUSE and MOHAMUD MUSE are brothers and HAJI is a cousin. All three were born in Kenya. HAJI is a naturalized U.S. citizen and the brothers are derivative U.S. citizens, having received U.S. citizenship as minors through the naturalization of their parents.
According to the
complaint affidavit , MUSE MUSE purchased airline tickets earlier this month to travel from Grand Rapids to Mogadishu, departing on Monday, January 21, 2019. Among other support, the complaint alleged HAJI and MOHAMUD MUSE aided in the purchase of the ticket and drove MUSE MUSE to the Grand Rapids airport, each knowing the true purpose of the travel was for MUSE MUSE to join and fight for ISIS.The
complaint asserts that all three defendants pledged allegiance to ISIS through videos they recorded themselves. MUSE MUSE and HAJI allegedly discussed with each other their desire to join ISIS, kill non-believers and even to potentially use a car for a martyrdom operation to run down non-believers here in the United States if they could not travel overseas to fight for ISIS. Following the arrests, federal agents executed a search warrant at a residence in Lansing, Michigan, shared by MOHAMUD MUSE and MUSE MUSE.Assistant Attorney General for National Security John C. Demers, Andrew B. Birge, U.S. Attorney for the Western District of Michigan, and Tim Slater, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division, announced the arrests.
The JTTF is comprised of agents and officers from area federal and state law enforcement agencies, including the FBI, Michigan State Police, Michigan State University Police Department, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Lansing and Grand Rapids Police Departments, U.S. Marshals Service, Lansing and Grand Rapids Airport Police and the Department of Homeland Security, specifically the Transportation Security Administration, Federal Air Marshals and Customs and Border Protection.
The defendants were scheduled to make their initial appearance in court today to hear the charges against them. They will remain in custody pending formal arraignment and a hearing on the government’s request that their detention continue until trial. The public is reminded that a complaint contains only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
END
Four Plead Guilty to Filing Hundreds of Fake Tax ReturnsRead the Press Release
COLUMBUS — Four defendants pleaded guilty Tuesday to a scheme defrauding the Internal Revenue Service (IRS) by using stolen identities to file tax returns and obtain refunds, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Erica D. Wise, 33, Ciourziae Weaver, 27, Linda Weaver, 52, and April Byrd, 40, all of Columbus, GA, entered guilty pleas to Conspiracy to Defraud the United States in the Collection of Income Taxes on January 22, 2019 before the Honorable Clay D. Land. The crimes are punishable to a term of imprisonment of up to five (5) years, a fine of up to $250,000, or both, and up to three (3) years of supervised release. Sentencing is scheduled for April 11, 2019 before Chief Judge Land.
According to the plea agreements, the defendants conspired together to file multiple fraudulent tax returns from March 2012 to September 2013 under the business Wise Tax, using the names and personal information of real taxpayers, unknown to those victims. The defendants used four addresses around Columbus to accept mailed refunds, totaling 316 fraudulently filed refunds. The defendants conspired together to deposit the tax refunds, and further shielded their illegal activity by using stolen identities as named income tax return preparers. None of the preparers had any knowledge of, or involvement with, the scheme.
“This tax return scheme enacted in Columbus is vast, with several layers of fraud concocted to not only steal people’s identities but also defraud the government,” said Charles “Charlie” Peeler, U.S. Attorney for the Middle District of Georgia. “With tax season in full swing, I want to remind would be criminals that our office will prosecute to the fullest extent of the law those defrauding the government through tax schemes. I want to applaud the good work of the IRS in helping unravel this conspiracy.”
This case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Mel Hyde.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former Pharmacy Owner Headed to Prison for Bogus Claims to Health InsurersRead the Press Release
The pharmacist and former owner of Gibson’s Discount Drugs in Red Bud, Illinois, has been sentenced to 33 months in prison for engaging in a scheme to defraud federal health care benefit programs and private insurance companies. Steven P. Gibson, 30, pleaded guilty to federal charges back in August 2018.
Court records establish that Gibson purchased the pharmacy in October 2016 and began defrauding health insurers just two months later. From December 2016 to February 2018, Gibson submitted nearly 1,000 claims for "make believe" prescriptions under the names of his wife, his family members, and his pharmacy customers. To maximize his fraudulent gains, Gibson deliberately chose the most expensive drugs, such as Creon, a drug used to treat chronic pancreatitis, Pentasa, a drug used to treat ulcerative colitis, and hydroxychloroquine, a drug used to treat and prevent malaria. The fictitious prescriptions were not authorized by a licensed medical practitioner and were never actually filled. Gibson’s total take from Medicare, Medicaid, and private insurance companies exceeded $620,000 – money he has now been ordered to pay back in restitution.
Gibson’s crimes first came to light in late 2017, after a pharmacy customer recognized that her son had been billed for expensive medications he had not received and called to complain. The pharmacist who took that call then discovered Gibson’s fraud, quit her job, and notified authorities. A federal search warrant was executed at the pharmacy on February 8, 2018. Shortly thereafter, Gibson agreed to cooperate in the investigation and plead guilty.
As part of his plea deal with the United States, Gibson agreed to repay all of the money and to make restitution payments in advance of sentencing to the fullest extent possible. At sentencing, however, Gibson had repaid only $30,000 and had otherwise failed to account for the rest of the money he stole. In imposing sentence, United States District Judge Staci M. Yandle found Gibson’s failure to pay back more of the money incompatible with his expressions of remorse and refused to award him credit for acceptance of responsibility. "Talk is cheap," Judge Yandle told the defendant, quoting an opinion from the Seventh Circuit Court of Appeals. "The remorseful or repentant criminal would want to do everything possible to rectify the harmful consequences of his crime, and so if he still has any of the loot he will return it."
Judge Yandle was also troubled by statements made by Gibson’s wife in an online post to the pharmacy’s public Facebook account. The post, which was made on the same day Gibson pleaded guilty but was recently taken down, attempted to downplay his criminal conduct to the pharmacy’s customers:
Everything that was wrote about us receiving 630,000 or whatever the number that was put out there, is laughable to me and completely false. I SEE our bank accounts , I KNOW. * * * Everything that was wrote about him running claims and collecting money on multiple people that is a complete LIE. I know all the details of the investigation.
Although Gibson’s attorney maintained that his client had not known about his wife’s Facebook post and did not condone it, Judge Yandle found that position not credible and specifically cited the Facebook post as further indication that Gibson had not adequately accepted responsibility for his crimes. In handing down the nearly three-year sentence, Judge Yandle also emphasized the seriousness of so-called "white collar crimes" such as this one. "Some people minimize these kinds of crime," she said. "This court does not.
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Kansas City Region, stated, "Individuals in trusted positions who submit false claims to our healthcare programs for personal enrichment will be pursued to the fullest and brought to justice."
Gibson was released on bond with special conditions pending the start of his prison term. His sentence also includes two years of supervised release. Because of the large amount of restitution he still owes, Gibson was not ordered to pay a fine.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Illinois State Police, Medicaid Fraud Control Bureau; the Federal Bureau of Investigation; the Drug Enforcement Administration; United States Postal Inspection Service; and the National Insurance Crime Bureau. The case was prosecuted by Assistant United States Attorneys Michael J. Quinley and Nathan D. Stump.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Felon Sentenced for Illegally Reentering the United StatesRead the Press Release
NORFOLK, Va. – A Mexican national was sentenced last week to 15 months in prison for illegally reentering the United States.
According to court documents, Carlos Matute-Midence, 25, was found to be in the country illegally after his arrest for participating in a large conspiracy in which he and several others traveled up and down the Eastern Shore cashing bad checks at local businesses serving the Hispanic community, stealing a total of almost $70,000. He was convicted of 15 racketeering and uttering counts and sentenced to serve three years in state custody. His federal sentence will be served consecutive to his state sentence.
Before he committed those crimes, Matute-Midence had been deported twice within a week. A week after his second deportation, he voluntarily removed himself from the United States after entering the country a third time. He returned yet again and was arrested for his part in the bad-check scheme sometime later.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-111.
Emanuel “Book” Richardson, Former Division I Men’s Basketball Coach, Pleads Guilty to Bribery in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that EMANUEL RICHARDSON, a/k/a “Book,” a former men’s basketball coach at the University of Arizona (“Arizona”), pled guilty in Manhattan federal court today to taking approximately $20,000 in cash bribes from athlete advisers in exchange for using his position to influence Arizona basketball players on his team to retain the services of the advisers paying the bribes. RICHARDSON pled guilty before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Emanuel Richardson, a former Arizona men’s basketball coach, abused his position as a mentor and coach to student-athletes for his own personal gain. Richardson, entrusted to help players develop as athletes and young men, instead helped himself to the cash offered by unscrupulous agents and financial advisers.”
According to the Complaint, the Indictment, statements made in court and publicly available documents:
RICHARDSON, a former men’s basketball coach at Arizona, agreed to accept cash bribes in return for agreeing to exert his influence over student-athletes on Arizona’s Division I men’s basketball team to retain the services of the bribe-payers once the student-athletes entered the National Basketball Association (“NBA”).
Beginning in or around February 2017, and continuing into September 2017, when RICHARDSON was arrested, RICHARDSON received approximately $20,000 in cash bribes from current and aspiring financial advisers and/or managers for professional athletes in exchange for RICHARDSON’s agreement to exert his influence over certain student-athletes RICHARDSON coached at Arizona to retain the services of the bribe payers once those players entered the NBA. For example, in discussing his commitment to steering Arizona players to retain the bribe payers upon entering the NBA, RICHARDSON told an undercover FBI agent and others, during a recorded meeting, “I used to let kids talk to three or four guys, but I was like, why would you do that? You know that’s like taking a kid to a BMW dealer, a Benz dealer, and a Porsche dealer. They like them all . . . You have to pick for them.” In return for the cash bribes RICHARDSON received, RICHARDSON facilitated a meeting between the bribe payers and a relative of a player attending Arizona for the purpose of pressuring that player to retain the financial services of the bribe payers.
In addition to today’s plea, Anthony Bland, a/k/a “Tony,” a former men’s basketball coach at the University of Southern California, previously pled guilty, pursuant to a plea agreement with the Government, in connection with this scheme. Munish Sood, a financial adviser, also previously pled guilty, pursuant to a cooperation agreement with the Government, in connection with this scheme
* * *
RICHARDSON, 46 years old, of Tucson, Arizona, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, RICHARDSON agreed to forfeit $20,000. The charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for April 24, 2019, before Judge Ramos.
Mr. Berman praised the work of the Federal Bureau of Investigation and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert Boone, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
Berkeley County man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Carl Cedric Booth, of Martinsburg, West Virginia, was sentenced today to 12 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Booth, age 21, pled guilty to one count of “Possession With the Intent to Distribute Heroin” in December 2017. Booth admitted to distributing heroin in October 2016 in Berkeley County, West Virginia.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Friday 18 January 2019
Woman Sentenced to 15 Years for $5 Million FraudRead the Press Release
ALEXANDRIA, Va. – An Ashburn woman was sentenced today to over 15 years in prison for orchestrating a scheme that defrauded more than 50 victims of over $5 million.
According to court documents, Keisha L. Williams, 43, told individual victim lenders that she had paid a lot of money for a certain healthcare-related software overseas in Austria; that the software was being held in “escrow” because she still owed taxes, attorney’s fees, and other debt associated with the purchase; and that if they would just provide her with a short-term loan to get this software out of escrow and bring it to the United States, everyone would be quickly repaid, with interest. Williams received over $5.4 million from over 50 victims for the alleged purpose of getting this software out of escrow.
In reality, Williams spent this money on a lifestyle of luxury. For example, Williams spent more than $1 million on travel for herself and her girlfriend, including trips to Bora Bora, Italy, and the Bahamas, and on $4,000-a-night stays at the Four Seasons hotel. Williams also conspired with others to impersonate federal officials to extort money, and bribed various T-Mobile employees to obtain one of the extortion victim’s personal toll records.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the Criminal Division at the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Grace L. Hill and Jack Hanly prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-298.
Winnebago Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Joe Kelly announced that Oliver Whitewing-Saul, age 23, was sentenced in federal court on Friday, January 18, 2019, in Omaha, Nebraska, for one count of Sexual Abuse of a Minor. The Honorable Robert F. Rossiter, Jr. sentenced Whitewing-Saul to 108 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Whitewing-Saul will begin a five-year term of supervised release.
On January 29, 2018, on the Winnebago Indian Reservation, Whitewing-Saul engaged in sexual intercourse with a 15-year-old female victim. Whitewing-Saul was 22 at the time. The investigation revealed that Whitewing-Saul’s DNA and the victim’s DNA were located on clothes that Whitewing-Saul was wearing at the time of the sexual encounter.
The case was investigated by the Federal Bureau of Investigation and the United States Department of the Interior, Bureau of Indian Affairs.
Tyler County woman sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA –Rachel A. Cook, of Sistersville, West Virginia, was sentenced to 18 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Cook, age 29, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine” in July 2018. Cook admitted to distributing crystal methamphetamine in Tyler County in November 2017.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Men Convicted of Running Prostitution Business in Northern VirginiaRead the Press Release
ALEXANDRIA, Va. – Two men pleaded guilty today to running a prostitution business that catered to the Hispanic population in northern Virginia over the past three years.
According to court documents, Luis Bonilla-Hernandez, 32, of Sterling, and Eliazar Duran Mota, 23, of Herndon, ran the prostitution business out of their homes. Each week, the defendants would obtain a woman to work in prostitution for a week at a time. The women, known as “Treinteras,” would travel by bus to Union Station in Washington, D.C. from states such as Pennsylvania and New York. The defendants then picked up the women from Union Station and transported them throughout northern Virginia to commercial sex customers. The defendants would advertise the women with business cards purporting to be tied to an automobile shop, and they would tell Hispanic patrons via word of mouth that the cards related to prostitution.
The women performed over a dozen commercial sex transactions each day, charging between $30 and $40 each time. After the prostitution dates, the women were required to turn all of their money over to the defendants, with a portion of the proceeds returned to the women at the end of the week. After a woman worked for a week, the defendants would switch out their “inventory” by obtaining a new woman from Union Station to work in prostitution throughout northern Virginia.
When law enforcement executed a search warrant on Bonilla Hernandez’s house, they recovered evidence of prostitution and over $14,000 in cash. Both defendants pleaded guilty in connection with the prostitution of five adult victims.
Bonilla-Hernandez and Duran Mota pleaded guilty to one count of interstate travel or transportation in aid of a racketeering enterprise. The defendants each face a maximum of five years in prison when sentenced on April 12, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This matter was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI agents, along with detectives from the Fairfax County Police, Arlington County Police, Prince William County Police, Loudoun County Sheriff’s Office, Leesburg Police, Alexandria City Police, Washington Metropolitan Police, Fauquier County Sheriff’s Office, George Mason University Police, United States Marshal’s Service, and agents of various Office of Inspector Generals. This matter was brought to the task force by the Loudoun County Sheriff’s Office.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michael L. Chapman, Loudoun County Sheriff, made the announcement after Senior U.S. District Judge T. S. Ellis III accepted the plea. Assistant U.S. Attorney Maureen C. Cain is prosecuting the case, with significant assistance provided by the Loudoun County Commonwealth’s Attorney’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-26 and 1:19-cr-27.
Toledo man sentenced to five years in prison, the last of four defendants sent to prison for their roles in a plot to provide money to al QaedaRead the Press Release
A Toledo man was sentenced to five years in prison, the final defendant sent to prison for their roles in a conspiracy to provide thousands of dollars to Anwar Al-Alwaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.
Ibrahim Zubar Mohammad, 39, was sentenced to five years in prison on Friday, and will be deported upon completion of the sentence. He previously pleaded guilty to concealing the financing of terrorism.
Sultane Room Salim, 43, was sentenced to five years in prison earlier this week. He previously pleaded guilty to concealing the financing of terrorism
Yahya Farooq Mohammad, 40, is currently serving a sentence of more than 27 years in prison. He previously pleaded guilty to conspiracy to provide material support to terrorists and to soliciting the murder of a United States District Judge.
Asif Ahmed Salim, 38, is serving six years in prison. He previously pleaded guilty to concealing the financing of terrorism.
“These defendants sent thousands of dollars abroad to support al Qaeda and attacks on Americans,” U.S. Attorney Justin E. Herdman said. “This case demonstrates that we will aggressively pursue leads and evidence around the world to bring to justice those who would strike at our nation and the ideals we hold dear.”
"We are pleased these individuals will spend significant time behind bars for providing funds to a known terrorist who called for violent jihad,” said Robert Hughes, Acting Special Agent in Charge of the FBI’s Cleveland office. “The FBI's Joint Terrorism Task Force will continue all collaborative and investigative efforts to root out individuals who provide material support to terrorists and their organizations.”
Farooq Mohammad was an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. He married a U.S. citizen around March 2008. His brother, Ibrahim Mohammad, was also an Indian citizen who studied engineering at the University of Illinois Urbana-Champaign from 2001 through 2005. In or around 2006, he moved to Toledo, Ohio, and married a U.S. citizen. He became a lawful permanent resident of the United States in or around 2007.
Asif Salim was a U.S. citizen who studied at Ohio State University between 2000 and 2005. He became a resident of Overland Park, Kansas, in 2007. His brother, Sultane Salim, is also a U.S. citizen who resided in the Chicago area from 2006 through 2012, until he moved to the Columbus area.
The four defendants conspired to provide money, equipment and other assistance to Anwar Al-Awlaki. Al-Awlaki, a key leader of Al Qaeda in the Arabian Peninsula, was designated a global terrorist in 2010. The defendants’ support was to be used in furtherance of violent jihad against the U.S. and U.S. military in Iraq, Afghanistan and throughout the world, according to court documents.
The defendants made various financial transactions in 2008 and 2009, and communicated about raising funds for a trip to the Middle East. Farooq Mohammad and Ibrahim Mohammad obtained money by opening credit cards and withdrawing money with no intention of repaying the amounts obtained from the financial institutions, according to court documents.
On July 22, 2009, Farooq Mohammad traveled with two other people to Yemen to meet Awlaki. They were unable to meet with Awlaki, so instead travelled to Sana’a, Yemen, to meet with one of his associates. Farooq Mohammad and his two fellow travelers gave the associate approximately $22,000 to be given to Awlaki, according to court documents.
In addition to pleading guilty to conspiring to provide and conceal material support to terrorists, Yahya Farooq Mohammad also admitted to soliciting an undercover FBI employee (UCE), posing as a “hitman,” to kidnap and murder U.S. District Judge Jack Zouhary. In or about April 2016 – after he was arrested on the terrorism charge and while the case was pending and assigned to Judge Zouhary – Mohammad told another inmate in the Lucas County Corrections Center in Toledo, Ohio that he wanted Zouhary kidnapped and murdered and that he was willing to pay $15,000 to have this carried out. The inmate provided Mohammad with the contact information for the UCE and stated that the UCE would need a $1,000 down payment before the murder could occur. The inmate also provided Mohammad with an agreed upon code to use when discussing the planned murder over the jail telephone.
On or about April 26, 2016, Mohammad called the UCE from the Lucas County Corrections Center. Using the agreed-upon code, Mohammad told the UCE he wanted to have Judge Zouhary killed. Mohammad agreed to provide the $1,000 down payment. When asked when he wanted the murder committed, Mohammad stated, “The sooner would be good, you know.” Over the ensuing days, Mohammad arranged to have a family member provide the $1,000 in cash to the UCE. On May 5, 2016, that family member met with the UCE and provided the UCE with $1,000 in cash. Mohammad later informed the inmate that the rest of the money for the murder was coming, according to court documents.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Michael Freeman and Trial Attorney David C. Smith of the Justice Department’s Counterterrorism Section.
Monongalia County woman indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tara Nicole Shock, of Rosedale, West Virginia, was indicted by a federal grand jury sitting in Clarksburg on January 8, 2019 on firearms charges, United States Attorney Bill Powell announced.
Shock, age 27, was indicted on one count of “Unlawful Possession of a Firearm" and one count of “Possession of a Stolen Firearm.” Shock, a person prohibited from having firearms, is accused of having a .40 caliber pistol and a .45 caliber pistol, both of which are suspected stolen. The crimes allegedly occurred in August 2018 in Monongalia County.
Shock faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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 Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Morgantown Police Department, and the Williamstown Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced for Multi-Kilogram International Drug Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Mexican national was sentenced today to 10 years in prison for participating in a drug trafficking conspiracy involving the distribution of kilogram-level amounts of illegal drugs on behalf of co-conspirators located overseas and throughout the United States.
According to court documents, Jose Ramon Felix Meza, 52, traveled to Northern Virginia in June 2018 with Gilberto Paz Madrid, 33, another citizen of Mexico, to distribute controlled substances on behalf of co-conspirators located in Mexico, the Washington, D.C. area, and elsewhere. Following a successful operation, law enforcement agents from Homeland Security Investigations interdicted and seized nearly 9 kilograms of heroin.
In June 2018, the Virginia State Police attempted a traffic stop of a sport utility vehicle that Madrid was driving (with Meza as his passenger) along the Capital Beltway after he and Meza paid thousands of dollars for what they believed were numerous bricks of illicit narcotics. Madrid accelerated away from a pursuing law enforcement vehicle. Madrid and Meza’s vehicle collided into several cars, yet they continued to flee from law enforcement until officers successfully arrested both individuals. Madrid was sentenced to 10 years in prison on January 4.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, and the Virginia State Police as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D.C., Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Raj Parekh prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-317.
Medical Company Executive Sentenced for Smuggling $18 Million in Misbranded Pharmaceuticals into United StatesRead the Press Release
ALEXANDRIA, Va. – Tzvi Lexier, of Toronto, Canada, was sentenced today to 26 months in prison for conspiring to smuggle misbranded pharmaceuticals into the United States and for the unlicensed wholesale distribution of prescription drugs.
According to court documents, while he was CEO of TC Medical and SB Medical, Lexier instructed subordinates to smuggle misbranded prescription drugs and devices into the United States, including oncology drugs, orthopedic injections, and cosmetic devices. These products were not approved by the FDA and did not contain the labels, warnings, and instructions required by the FDA. In order to smuggle these products into the United States, TC Medical and SB Medical employees used false names and false customs forms, and broke large shipments into multiple smaller shipments. At Lexier’s direction, co-conspirators in the United States stored TC and SB Medical’s products in their private residences, often in violation of safety regulations requiring the pharmaceuticals to be stored at cool temperatures.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Jay V. Prabhu, Kellen S. Dwyer, and Nathaniel Smith III prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No 1:14-cr-397.
Man Sentenced to 12 Years for Distributing Fentanyl Analogue That Killed Florida ManRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael Schoenmann, 31, Spring Green, Wisconsin, was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 12 years in federal prison for attempting to distribute fentanyl, and distributing a fentanyl analogue that resulted in the overdose death of a Florida man. Schoenmann pleaded guilty to these charges on November 16, 2018.
On December 26, 2017, Wyatt Cox, a 25-year-old Florida resident, received a package in the mail containing a bottle of nasal spray containing what was later determined to be a fentanyl analogue. Cox died shortly after ingesting the substance. Based on a comprehensive investigation involving state and federal law enforcement officers, the package was traced back to the defendant, Michael Schoenmann.
From 2017 through March 2018, Schoenmann was running a vendor site on the dark web, advertising and selling fentanyl nasal spray. Schoenmann sold his product throughout the United States. He indicated on his website that he got his fentanyl from overseas and from various vendors, then packaged it as nasal spray to allow addicts like himself to use the fentanyl undetected. Schoenmann was arrested on March 8, 2018, following the execution of a federal search warrant at his residence in Spring Green.
Two of Wyatt Cox’s family members spoke during yesterday’s sentencing hearing, expressing the extraordinary pain, sadness, and loss that they felt. At one point, Cox’s sister acknowledged that both families lost someone – her brother forever, and the defendant for a long time to federal prison. She then told the defendant that she blamed both him and her brother, but she forgave the defendant. Judge Peterson commended her for her words of forgiveness and hoped that the sentencing would provide some justice and healing for both families. Judge Peterson assured the Cox family that Wyatt was not just another statistic.
In addressing Schoenmann, Judge Peterson pointed out that Schoenmann’s addiction was a disease, but that the disease was his responsibility, and noted that not every addict turns to crime to support their addiction. Judge Peterson called Schoenmann a danger to the public, and someone who was willing to do anything to feed their addiction, including exploiting other addicts. Judge Peterson also acknowledged that although Schoenmann did not murder Cox, nor did he want or intend to kill him, fentanyl is such a powerful drug that the risk of death is ever-present, and Schoenmann’s conduct made an overdose death extremely likely.
Judge Peterson concluded by warning Schoenmann that dealing with his addiction is his life’s work, and that a lifetime commitment to his sobriety was his responsibility. Schoenmann apologized to the Cox family, saying simply, “I am so, so sorry.”
U.S. Attorney Blader stated, “Fentanyl and all related substances and analogues are inherently dangerous. Ingesting any illegal substances obtained from the internet and in the mail are extraordinarily dangerous. Users have no idea what is really in the substance and illegal drug makers don’t care about users or the family they may leave behind – the risk cannot be overstated.”
The charges against Schoenmann were the result of an investigation conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, Wisconsin Department of Justice Division of Criminal Investigation, Richland-Iowa-Grant Drug Task Force, Sauk County Drug Task Force, Boscobel Police Department, and the Charlotte County (Florida) Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.
Man Sentenced to 102 months for Using Stolen Identities to Attempt to Defraud Various Financial Institutions of More Than $1.9 Million DollarsRead the Press Release
Memphis, TN – On Wednesday, January 16, 2019, Senior U.S. District Judge Samuel Hardy Mays sentenced Jeremy Jones, 39, of Memphis to a total of 102 months in the Federal Bureau of Prisons for conspiracy to commit identity theft and mail fraud, and separate counts of identity theft, mail fraud, aggravated identity theft, and obstruction of justice. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentencing today.
Jones was originally indicted for the above offenses on February 16, 2016, and on November 21, 2017, after a six-day jury trial in the U.S. District Court, Jones was found guilty as charged of using stolen identities to defraud over 100 individual victims and various financial institutions of more than $1.9 million dollars. In addition, he was found guilty on two counts of tampering with government witnesses.
According to information presented in court, Jones executed a scheme to steal the identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients throughout 2011, 2012 and 2015. Jones used this identifying information to apply for loans and credit cards and open bank accounts in the individuals’ names without their knowledge. A co-conspirator who was employed at Memphis Neurology removed patient information from the company’s database and provided it to Jones upon his request. Jones agreed to compensate the co-conspirator for providing him with this information.
Jones sent and received loan applications, checks and other financial information from numerous lenders throughout the United States via the internet and mail carriers. The potential loss was $1.9 million.
"This is one of the most egregious acts of fraud that has been seen in the Western District of Tennessee. Identity theft and financial fraud of this magnitude and scale by the defendant has victimized hundreds of people by compromising their personal and private information for his own selfish and unjust enrichment, and I am pleased that we have been able to hold the defendant accountable and achieve justice for the victims." said U.S. Attorney D. Michael Dunavant.
David M. McGinnis, the Inspector in Charge of the Charlotte Division of the United States Postal Inspection Service, stated, "Identity theft has a huge financial and emotional impact on individual victims and the American public as a whole. It is especially egregious when the criminals intentionally target patients of a doctor’s office. The U.S. Postal Inspection Service has aggressively investigated cases of identity theft for decades. This case is a prime example of our agency’s commitment to protect the public and hold those accountable that steal from innocent victims."
"Identity Theft is a heinous crime that attacks individuals’ credit worthiness, U.S. financial institutions and our trusted merchants," said Channing Irvin, Special Agent in Charge of the U.S. Secret Service Memphis Field Office. "This case illustrates the significant community impact, whereby a doctor’s office and its patients were victimized. The Secret Service prides itself in protecting our communities and nation’s financial institutions. Identity Theft crimes serve as one of our core violations, which we vigorously investigate."
After multiple sentencing hearings throughout 2018 and 2019, Jones was ordered to pay criminal restitution to the victims in the total amount of $199,698.35. During the sentencing hearing, Judge Mays commented that this case involved "one of the most egregious acts of fraud I’ve seen since being on the bench."
The United States Postal Inspection Service and the United States Secret Service investigated this case. Assistant United States Attorneys Damon K. Griffin and Murre Foster prosecuted the case on behalf of the government.
Kansas Man Charged in Government Contract Fraud SchemeRead the Press Release
KANSAS CITY, KAN. – Troy L. Bechtel, 49, of Overland Park, Kan., is charged in a federal indictment with two counts of major program fraud against the United States and two counts of lying to federal investigators, U.S. Attorney Stephen McAllister said.
The indictment alleges that from August 2009 to April 2013 Bechtel aided and abetted other persons unlawfully to obtain more than $12.7 million from a contract with the Department of Defense.
The indictment alleges Bechtel and other persons falsely represented that United Medical Design Builders, LLC, of Merriam, Kan., was controlled by co-defendant Joseph David Dial, Jr., a disabled veteran of the U.S. Army.
In fact, UMDB was a pass-through company that Dial did not control. The company received a contract through the Service-Disabled Veteran-Owned Small Business program that was awarded by the U.S. Army Corps of Engineers for the design and construction of healthcare facilities at Langley AFB, Andrews AFB, Hanscom AFB, and McGuire AFB.
The indictment alleges Bechtel ran the daily operations for UMDB and made project decisions without reporting to or consulting with Dial. Dial was rarely in the office. He also signed a blank sheet of paper that was scanned for use on official letters and correspondence.
Co-defendant Dial pleaded guilty to one count of major program fraud and one count of wire fraud. He is set for sentencing Jan. 28.
If convicted, Bechtel faces up to 10 years in federal prison on each count of defrauding the government and up to five years on each count of lying to investigators, as well as fines and forfeiture judgment representing the amount of proceeds obtained by committing the offenses set out in the indictment. Investigative agencies include the Small Business Administration - Officer of Inspector General, General Services Administration - Office of Inspector General, Defense Criminal Investigative Service and the Army CID Major Procurement Fraud Unit. Assistant U.S. Attorney Tris Hunt is prosecuting.
Jackson County Gang Member Sentenced to 10 Years for Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss – James Edward Hays, 36, a Simon City Royals gang member from Pascagoula, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 120 months in prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Hays was also ordered to pay a $5,000 fine.
On April 25, 2018, the Jackson County Sheriff’s Department responded to a call of a person passed out behind the wheel of a running car at a gas station. Deputies found Hays, a felon with multiple convictions, with methamphetamine, heroin and a loaded gun. Less than one month later, Hays was found in a motel room with a stolen gun and methamphetamine.
The Jackson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
Harrison County woman admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nicoma L. Knight, of Clarksburg, West Virginia, has admitted to drug distribution, United States Attorney Bill Powell announced.
Knight, age 23, pled guilty to one count of “Unlawful Use of Communication Facility.” She admitted to using a phone to distribute methamphetamine in June 2018 in Monongalia County.
Knight faces up to four 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.
Assistant U.S. Attorney Traci M. Cook is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Former State Department Employee Sentenced to Prison for Student Loan FraudRead the Press Release
ALEXANDRIA, Va. – A Georgia man was sentenced to 15 months in prison today for fraudulently discharging over $250,000 in student loan debt.
In addition to the prison sentence, Corey Cadet Dukes, 39, of Jonesboro, was ordered to pay $244,884.31 in restitution to victims of his crimes, and to a three-year term of supervised release following his prison sentence.
According to court documents, Dukes, formerly of Alexandria, was an employee of the U.S. Department of State from 2013-2017. Simultaneously, Dukes was also a full-time supervisor for a security company providing protection to a federal building in Washington, D.C. Nevertheless, Dukes applied through the Department of Education for a Total and Permanent Disability (TPD) discharge of over $200,000 in student loan debt, affirming that he was unable to work and was earning no income.
The Department of Education conditionally discharged Dukes’ student loans subject to successful completion of a three-year income monitoring period, which required that TPD applicants not earn over the Federal Poverty Guidelines for a family of two, which was no higher than $16,020. Earned income over that amount triggered a repayment obligation and the loans would be reinstated. After failing to respond to multiple requests for proof of income, in October 2016 Dukes submitted a signed self-certification stating: “I, Corey Dukes, did not have any earned income from May 1, 2013 – October 13, 2016.” In reality, during this same period Dukes had earned over $331,000 from his two full-time jobs, and had purchased a Bentley, a Porsche, and other luxury vehicles. The Department of Education permanently discharged over $250,000 of Dukes’ student loan debt.
Court documents revealed that approximately two years later, in June 2018, Dukes discharged an additional $300,000 in personal debt in a Bankruptcy Court in Georgia. Around the time of the bankruptcy proceeding, and at the same time the Department of Veterans Affairs increased his disability rating to 100 percent and ordered Dukes to be given additional benefits, Dukes traveled extensively on vacations, including to Paris, Amsterdam, The Bahamas, Italy, Spain, Greece, Turkey, Egypt, and Cabo San Lucas, among others.
Court documents also revealed that during the period of time from 2013-2018, Dukes also submitted numerous false and misleading statements to the Department of Veterans Affairs in order to obtain first an 80 percent disability rating based on migraine headaches, then a 100 percent disability rating, based in part on a PTSD claim. Documents filed in court show that Dukes had an insider in the VA email him confidential VA adjudication criteria for PTSD that he then used in order to obtain a PTSD rating. At the same time he was working two full-time jobs and engaging in foreign travel, Dukes informed the VA he was unable to work or to function independently.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Steve A. Linick, Inspector General of the State Department, Kathleen S. Tighe, Inspector General of the Department of Education, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. The case was prosecuted by Assistant U.S. Attorneys Kimberly R. Pedersen and Karen L. Taylor, and Special Assistant U.S. Attorneys Russell L. Carlberg and Brian D. Harrison.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-298.
Former State Criminal Investigator Pleads Guilty to ExtortionRead the Press Release
Jackson, Miss. – Frank Saddler, 52, of Ridgeland, Mississippi, pled guilty today, before United States District Judge Henry T. Wingate, to extortion under color of official right, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and Dax Roberson, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General - Southwest Regional Office.
Saddler was a Branch Director with the Mississippi Department of Human Services (“MDHS”), which has oversight of the Supplemental Nutrition Assistance Program (“SNAP”) of the United States Department of Agriculture in Mississippi. Saddler’s duties included investigating violations of the SNAP regulations and pursuing criminal charges against violators.
In entering his guilty plea, Saddler admitted that he extorted money from convenience store owners who had been charged with criminal violations relating to SNAP in exchange for not pursuing the criminal charges against them. Saddler told the store owners that they were paying restitution to the State of Mississippi when in fact they made payments to Saddler which he deposited into his personal bank account.
“Public corruption erodes confidence in our democracy. This defendant put his own greed above the interests of the people he was entrusted to serve. This type of abuse of power will continue to be doggedly investigated and prosecuted by this office. Credit belongs to the FBI and USDA agents and our prosecutors who brought this criminal to justice,” said U.S. Attorney Hurst.
“I want to thank the U.S. Attorney’s Office, Office of Inspector General Special Agents, and our law enforcement partners for their hard work on this investigation. The Office of Inspector General is committed to protecting the integrity of United States Department of Agriculture programs,” said USDA OIG Special Agent in Charge Dax Roberson.
Saddler will be sentenced before Judge Wingate on April 16, 2019. He faces a maximum penalty of twenty years in prison, a fine of up to $250,000, and supervised release of up to three years.
The case was investigated by the FBI and the Office of the Inspector General of the United States Department of Agriculture. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
Former L.A. Sheriff’s Deputy Found Guilty of Lying to FBI Agents as Part of Cover-Up of Attack of Visitor to Men’s Central JailRead the Press Release
LOS ANGELES – A former deputy with Los Angeles Sheriff’s Department was convicted today on federal charges of lying to the FBI about the beating of handcuffed man at the Men’s Central Jail in 2011.
Byron Dredd, 36, was found guilty of making false statements to the FBI, a federal felony offense that carries a statutory maximum penalty of five years in federal prison.
Dredd and five other deputies who were previously convicted and sentenced in relation to the beating were assigned to the Visiting Center at Men’s Central Jail. On February 26, 2011, the victim went to the jail to visit his brother, who was in custody in the jail. Deputies handcuffed the victim and brought him to an employee break room because they suspected he had a cell phone on him. Deputies then beat the victim, who remained defenseless with his arms handcuffed behind his back the entire time. Dredd witnessed the beating from an adjacent room through a metal window. As a result of false reports authored by Dredd and other deputies, the victim was charged with several crimes, including resisting an officer and battery.
Dredd was convicted today of lying to the FBI during an interview on July 17, 2012. Dredd falsely told the FBI that the victim was the aggressor, and that he saw the victim swing at a deputy, tried to push past a deputy in an attempt to escape, and that he saw the victim punch a deputy in the chest. Those statements were lies because the victim remained handcuffed during the entire beating.
“All law enforcement officers will be held accountable for abusing their positions – whether that includes the illegal use of force or lying to cover up a civil rights violation,” said United States Attorney Nick Hanna. “This former deputy actively tried to conceal the illegal actions of his fellow deputies, and today a jury held him accountable for his role in the cover-up of an unjustified beating.”
“The defendant deceived investigators who were investigating very serious crimes, including civil rights abuses and an attempted cover-up,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to hold accountable those who cover up crimes involving civil rights abuses and malfeasance by public officials inside and outside prison walls.”
Dredd is scheduled to be sentenced in this case on May 20 by United States District Judge Dale S. Fischer.
In a previous trial in 2016, a jury was unable to reach a unanimous verdict against Dredd on the false statements. At that trial, Dredd was also acquitted of conspiring to violate the victim’s civil rights and obstructing a federal investigation.
Previously in this investigation, five deputies who participated in the beating and cover-up were convicted and sentenced to prison, including former Sergeant Eric Gonzalez who is serving an eight-year prison term after being found guilty of violating the victim’s civil rights and falsifying reports.
This case is the result of an investigation by the FBI, and is the last in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 22 members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
The case against Dredd is being prosecuted by Assistant United States Attorneys Veronica Dragalin and Agustin D. Orozco of the Public Corruption and Civil Rights Section.
Drug Trafficker Sentenced to 121 Months’ for Conspiring to Distribute Heroin, Cocaine and Marijuana Across New York CityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, John Santos was sentenced by United States District Judge Frederic Block to 121 months’ imprisonment, to be followed by five years’ supervised release, following his December 2017 guilty plea to participating in a conspiracy to distribute a kilogram or more of heroin, five kilograms or more of cocaine, and marijuana.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigation, New York (HSI), Keith M. Corlett, Acting Superintendent, New York State Police (NYSP), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Santos will serve a significant prison term for his role as the leader of a large-scale drug trafficking ring,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are responding to the opioid epidemic by vigorously investigating and prosecuting those like the defendant who seek to line their own pockets by selling dangerous drugs in our communities.”
“This sentencing is one of many successes in law enforcement’s battle against opioid abuse because it serves as a reminder that we are dedicated to identifying, investigating and dismantling drug trafficking organizations,” stated DEA Special Agent-in-Charge Donovan. “Enforcement is a key factor in fighting opioid abuse and in stopping fatal overdoses in our cities because it takes away their means to wreak havoc.”
“Running the full gamut of drug trafficking, John Santos ran a criminal organization that flooded the streets on New York City with cocaine, heroin and marijuana,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing proves once again that being employed as a drug dealer in this city comes with severe consequences.”
“The sentencing of Santos sends a clear message that we will not tolerate this kind of activity anywhere in New York State,” stated NYSP Acting Superintendent Corlett. “Santos had no regard for the damage his actions inflicted upon the communities where he trafficked narcotics. The State Police will continue to work aggressively with our federal and local partners to stop the flow of illegal and dangerous drugs onto our streets.”
“The NYPD’s efforts to combat the far-reaching opioid crisis by ridding New York City streets of drug traffickers are greatly strengthened by our close partnerships with the U.S. Attorney for the Eastern District and the Drug Enforcement Administration,” stated NYPD Commissioner O’Neill. “Anyone who deals in illegal narcotics should understand that the nation’s best investigators will stop at nothing to fight crime and keep safe all the people we serve.”
Between July 2016 and March 2017, Santos led a Bronx-based drug trafficking ring that distributed large amounts of heroin, cocaine and marijuana throughout New York City, including to out-of-state customers. At the time of Santos’s arrest, DEA special agents seized quantities of those controlled substances, a kilogram press and other drug paraphernalia in his Bronx apartment. Santos also served as the principal point of contact for the narcotics source of supply based in the Dominican Republic.
Two co-defendants, Robert Santos and Kevin Brito, previously pleaded guilty and are awaiting sentencing.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Ryan C. Harris is in charge of the prosecution.
The Defendant:
JOHN SANTOS
Age: 36
Bronx, New YorkE.D.N.Y. Docket No. 17-CR-147 (FB)
Bismarck Man Indicted for Multiple Child Sexual Abuse Charges on Fort Berthold Indian ReservationRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on January 17, 2019, Owen Cordell Smith, age 28, from Bismarck, ND, was charged by an Indictment returned on December 5, 2018, for three counts of Aggravated Sexual Abuse of a Child under 12 Years of Age; Abusive Sexual Contact of a Child under 12 Years of Age; and two counts of Abusive Sexual Contact of a Child between 12 and 16 Years of Age.
The Indictment alleges that between May 2011 and May 2015, Smith, an enrolled member of the Navajo Nation at Window Rock, AZ, engaged in sexual acts with three minor females, 12 years old and younger, on the Fort Berthold Indian Reservation, ND. Smith’s Initial Appearance and Arraignment was before Magistrate Judge Charles Miller Jr., at 2:30 p.m., January 17, 2019.
The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case was investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
###
Thursday 17 January 2019
Woman Sentenced to 10 Months in Prison for Hoax Bomb Threat Against Claremore SchoolsRead the Press Release
Chief Judge Gregory K. Frizzell sentenced Stephanie Louise Montgomery, 49, of Claremore to ten months in Federal prison followed by three years of supervised release for providing False Information about Bombs in Schools. As part of the plea agreement, Montgomery will pay restitution in the amount of $6,391.78 to law enforcement agencies and first responders, including the Claremore Police and Fire Departments, the Tulsa Police Department, and the Oklahoma Highway Patrol, for costs incurred when responding to and investigating the false threats. The Court also imposed a mandatory special monetary assessment of $100.00.
On March 27, 2018, Montgomery made a threatening phone call to the Claremore High School, indicating there were “five bombs in backpacks at the high school and ten more bombs located at elementary schools.” Approximately 7,000 students, faculty, coaches, and staff from all Claremore schools were evacuated or sheltered in place until being transported to alternate safe locations. Multiple law enforcement personnel responded and performed sweeps of the seven area schools but found no explosive devices. The threats followed shortly after the Marjory Stoneman Douglas High School mass shooting in Parkland, Florida.
“Hoax bomb threats are no joke, and this sentence reflects the seriousness of the crime. The response by law enforcement and school officials in the moments after receiving the threats was excellent. They mobilized quickly and communicated effectively to protect our school children, teachers, and administrators. Public safety is our highest priority. If you engage in hoax bomb threats, we will find you and hold you accountable,” said United States Attorney Trent Shores.
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, the Rogers County Sheriff’s Department, the Rogers County District Attorney’s Office, the Oklahoma Highway Patrol Bomb Squad, the Claremore Police Department, and the Tulsa Police Department. Assistant United States Attorney Robert T. Raley handled the prosecution of the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Woman Indicted and Arrested for ExtortionRead the Press Release
SAN JUAN, Puerto Rico –Today, a federal Grand Jury returned a two-count indictment charging Celinés Rivera-Díaz with conspiracy to interfere with commerce by extortion and extortion. Defendant Rivera-Diaz was arrested on December 19, 2018, and is currently detained pending trial.
Pursuant to the Affidavit in support of the criminal Complaint filed on December 21, 2018, on December 19, 2018, an unknown individual (“Suspect One”) contacted over the phone a 62-year-old female (the “Victim”), and informed her that he abducted her adult son. Suspect One told the Victim that her son owed him $4,000, and was not responding. Suspect One demanded that the Victim pay him $4,000 and threatened that, unless she paid that amount, her son would be harmed. More specifically, Suspect One threatened that the Victim’s son “se iba a joder.” The Victim responded that she only had $1,600 in the bank and could only pay $1,000. Suspect One then instructed the Victim that a woman would drive to the Victim’s home, pick up the Victim, and drive the Victim to the bank so the Victim could withdraw the money and pay the ransom. The Victim acquiesced to Suspect One’s demands.
Later that day, a woman, later identified as defendant Celinés Rivera Díaz (“Rivera-Díaz”), drove to Victim One’s house, picked her up and drove her to a Banco Popular de Puerto Rico branch located in Humacao, Puerto Rico. During the drive to the bank, defendant Rivera-Díaz and the Victim maintained telephone communications with Rivera-Díaz’s coconspirators. Upon arriving at the bank, the Victim entered the bank on foot while the defendant remained outside. Once inside the bank, the Victim informed bank employees that she was being extorted. Bank employees called Puerto Rico Police Department (PRPD) agents, who quickly arrived at the scene. PRPD agents later arrested defendant Celinés Rivera-Díaz. Further investigation revealed that the Victim’s son was not abducted.
“We will not stand by as criminals attempt to rip-off our elders by force, violence, and fear. These con-artists who trick victims into sending money before they realize it’s a scam, by playing into their emotions, should know that they will be prosecuted to the full extent of the law,” stated U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The investigation continues as to other coconspirators.”
Assistant U.S. Attorney Juan C. Reyes-Ramos is in charge of the prosecution of the case and Homeland Security Investigations (HSI) is in charge of the investigation. If convicted the defendant could face up to 20 years of imprisonment on each count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
# # #
U.S. Department of State, Diplomatic Security Service, San Juan Resident Office Arrests on Passport Fraud Charges an Individual Wanted for Capital Murder in the State of AlabamaRead the Press Release
SAN JUAN, Puerto Rico –United States Magistrate Judge Bruce McGiverin authorized a criminal complaint against an individual purporting to be Stephen Williamson Varner, charging him with willfully and knowingly making false statements in a U.S. Passport Renewal Application.
According to the criminal complaint, on December 7, 2018, this same individual executed in San Juan a U.S. Passport Renewal Application under the Stephen Williamson Varner identity. Due to inconsistencies and fraud indicators in the passport renewal form, including a finding of a death record for a Stephen Williamson Varner, born and deceased at the early age of 22 months in the State of Alabama; the State Department’s Bureau of Consular Affairs referred it on December 31st, 2018 to the Diplomatic Security Service (DSS) for investigation. During the course of the investigation conducted by DSS, with the collaboration of the U.S. Marshals Service, the U.S. Postal Inspection Service and the U.S. Department of Homeland Security, Office of the Inspector General, agents confirmed that the individual purporting to be Stephen Williamson Varner was in fact David Anthony Pike, a fugitive wanted since 1985 in Chambers County, State of Alabama, on capital murder charges (a death penalty eligible offense).
“The Diplomatic Security Service not only has a statutory mandate to investigate passport and visa fraud cases, but is also firmly committed to work with the U.S. Attorney’s Office and other federal, state and local law enforcement agencies to bring fugitives to justice,” said Norman Ramirez-Seda, Resident Agent in Charge of the DSS office in San Juan. “In this case, an individual evading the authorities in Chambers County for over thirty years, moved to Puerto Rico where he committed fraudulent activities against multiple government agencies, including the U.S. Department of State, the U.S. Postal Service and the Federal Emergency Management Agency. My office is already working with the U.S. Marshals Service and Chambers County authorities to have David Anthony Pike eventually removed to the State of Alabama, where he will need to respond to the capital murder charges pressed against him in 1985. I thank our special agents and investigative specialists, as well as the agents and inspectors with our sister federal law enforcement organizations who completed, with exceptional professionalism and dedication, this case in sixteen days.”
“The teamwork between DSS and the federal law enforcement agencies which collaborated in this investigation, led to the arrest of this dangerous fugitive. We commend the work and dedication of all the agents who turned this passport fraud investigation into the capture of someone who had been running from justice for over 30 years,” said U.S. Attorney Rosa E. Rodríguez-Vélez.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
# # #
Texas man indicted for having one kilogram of fentanyl, three kilograms of heroin and three kilograms of cocaineRead the Press Release
A Texas man was indicted for having one kilogram of fentanyl, three kilograms of heroin and three kilograms of cocaine.
Roland Herrera, 52, of San Antonio, was indicted on one count of possession with intent to distribute fentanyl, heroin and cocaine and one count of interstate travel in aid of racketeering.
Herrera was arrested on December 29 following a traffic stop in Westlake and found to have more than 15 pounds of drugs hidden in his vehicle, according to court documents.
“Fentanyl, heroin and cocaine have been the source of a long-running mass-casualty event here in Ohio,” U.S. Attorney Justin Herdman said. “This seizure undoubtedly saved lives in our community, and law enforcement will continue prosecuting those who traffic in deadly narcotics while working with other partners to make help available for people who want it.”
“HSI and its Ohio law enforcement partners will continue to vigorously identify, disrupt and dismantle these drug traffickers organizations that exploit and continue to cause great harm to members of the community,” said Steve Francis, Special Agent in Charge of Homeland Security Investigation’s Detroit office, which includes Ohio. “The arrest of Mr. Herrera is another example a drug trafficker in possession of a large amount of narcotics that would have likely caused a significant number of overdoses and deaths.”
“The indictment of this individual is another fine example of the results that come from a collaborative policing effort,” said Cleveland Police Chief Calvin D. Williams. “The hard work put forth by the officers and investigators in this case prevented a significant amount of dangerous narcotics from being distributed on our streets. This is the kind of work that saves lives.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being investigated by Homeland Security Investigations, the Cleveland Division of Police and the Westlake Police Department. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Statement from United States Attorney Jay E. Town on this Morning’s Shooting of Two Birmingham Police OfficersRead the Press Release
“This tragedy is a heartbreaking reminder of the dangers all law enforcement face while we sleep. While they keep us safe. While they do the job. Our thoughts and prayers are with the families of the officers, the officer still fighting for life, and the fallen officer whose end of watch came much too soon.”
Seven people indicted for firearms crimesRead the Press Release
Seven people were indicted in federal court for firearms violations.
They are: Justin A. McGeever, aka Jonor A. McGree, 30, of Cleveland Heights; Gabriel T. Williams, 35, of Cleveland; Marcus L. Lockett, 29, of Akron; Melvin Wright, 37, of Akron; Deshaun A. Jones, 39, of Columbus; Fuquawn Baldwin, 26, of Akron, and Rowland L. Babb, 27, of Canton.
According to the indictments:
McGeever possessed ammunition and a .38-caliber pistol in 2016 while subject to a protection order.
Williams possessed a sawed-off 20-gauge shotgun in 2016.
Lockett possessed a Springfield Arms 9 mm pistol and ammunition, despite a previous conviction for felonious assault with a firearms specification. He also possessed at least 50 grams of methamphetamine and was using the firearm in relation to drug trafficking, according to the indictment.
Wright possessed a .38-caliber revolver and ammunition on September 8, 2018, despite a previous conviction for felonious assault.
Jones possessed a stolen .45-caliber pistol and ammunition on October 1, 2018, despite a previous conviction for being a felon in possession of a firearm.
Baldwin possessed a Ruger 9 mm pistol and ammunition on November 24, 2018, despite a previous conviction for robbery.
Babb possessed a Glock 9 mm pistol and ammunition on November 24, 2018, despite a previous conviction for felonious assault.
This case is part of Project Safe Neighborhoods, 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. PSN was reinvigorated 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.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Canton FBI Safe Streets Task Force, the Canton Police Department, the Akron Police Department,
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Romanian Man Sentenced for ATM Scam and ID TheftRead the Press Release
RICHMOND, Va. – A Romanian man was sentenced today to 65 months in prison for conspiracy to commit bank fraud and aggravated identity theft.
According to court documents, Viorel Naboiu, aka “Luigi Latorza,” 44, originally from Craiova, Romania, conspired with several other individuals, including co-defendant Florin Bersanu, to steal money from banks and credit unions in multiple states through an ATM-skimming operation. Naboiu and his co-conspirators manufactured and then inserted small skimming devices deep into the card reader slots of dozens of bank branch ATMs. These skimming devices copied the information on the magnetic stripe of the bank customer’s debit cards when customers used their cards to conduct ATM transactions. The conspirators also mounted pinhole cameras, hidden behind plastic flashing designed to blend into the ATMs’ housing, which surreptitiously recorded the finger-taps of PINs used by bank customers during their transactions. Naboiu and his cohorts skimmed card information and PINS from over 1,300 bank customers. At sentencing he was held accountable for over $150,000 in actual losses and over $646,000 in intended losses.
Naboiu’s co-defendant, Bersanu, was sentenced on Dec. 6, 2018, to 57 months in prison.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and MaryJo Thomas, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Brian R. Hood prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-75.
Prominent Global Law Firm Agrees to Register as an Agent of a Foreign PrincipalRead the Press Release
Skadden, Arps, Slate, Meagher & Flom LLP has entered into a settlement agreement with the Department of Justice, resolving its liability for violations of the Foreign Agents Registration Act (FARA), announced Assistant Attorney General for National Security John Demers.
According to the Agreement, Skadden acted as an agent of the Government of Ukraine within the meaning of FARA, 22 U.S.C. § 611 et seq., by contributing to a public relations campaign directed at select members of the U.S. news media in 2012. Moreover, in 2012 and 2013, Skadden received multiple inquiries from the Department’s FARA Registration Unit about its role in that campaign. A partner then at Skadden made false and misleading statements to the FARA Unit, which led it to conclude in 2013 that the firm was not obligated to register under FARA. The facts, when uncovered, showed that Skadden was indeed required to register in 2012, and, under the Agreement, it will do so retroactively.
“Law firms should handle inquiries from the federal government the same way they would counsel their clients to: with appropriate due diligence to ensure the honesty of their response,” said Assistant Attorney General Demers. “Skadden’s failure to do so, and reliance on only the representations of the lead partner on the matter, hid from the public that its report was part of a Ukrainian foreign influence campaign. FARA protects the integrity of the American political system by enabling Americans to consider the identity of the speaker as they evaluate the substance of the speech.” Assistant Attorney General Demers added, “The Department appreciates Skadden’s more recent extensive cooperation in the investigation of this matter, which facilitated its resolution.”
In addition to agreeing to register under FARA, Skadden has agreed to pay the U.S. Treasury more than $4.6 million, which it received in fees and expenses for its work with Ukraine, and will ensure that it has formal, robust procedures for responding to inquiries concerning its conduct from any federal government entity and ensuring FARA compliance as to its engagements on behalf of foreign clients.
The Agreement acknowledges that Skadden has already taken substantial steps to comply with its terms, and so long as the firm continues to comply with it, the Department will not undertake any action against the firm relating to any of the conduct described in the Agreement and its Appendix.
Background of the Investigation
According to the Agreement, in the spring of 2012, Ukraine, Ministry of Justice (MOJ), with the assistance of Paul Manafort, hired Skadden to write a report (Report) on the evidence and procedures used during the 2011 prosecution and trial of former Prime Minister Yulia Tymoshenko and to address various questions regarding its fairness. Skadden also agreed to advise Ukraine in connection with a second, potential future prosecution of Tymoshenko. Although the engagement letter between Skadden and the MOJ stated that Skadden would be paid its customary fees and expenses, the contract Skadden signed with the MOJ, and which the MOJ made public, stated that the law firm would be paid only 95,000 Ukrainian hryvynas, which is approximately $12,000. Skadden understood that a Ukrainian business person would be paying its fees, which the law firm received from a Cypriot bank account of an entity named Black Sea View Ltd., which Manafort controlled. Skadden was eventually paid $4,657,568.91 for its work on behalf of the MOJ. The arrangements with the Ukrainian business person, the amounts paid, and advice on a second criminal prosecution of Tymoshenko were not disclosed in connection with the issuance of the Report.
Soon after it began work for the MOJ, Skadden became aware that Ukraine intended to use the Report as part of a public relations campaign to influence U.S. policy and public opinion toward Ukraine. After that point, Skadden’s lead partner for the Ukraine engagement took steps to advance the public relations campaign. In the fall of 2012, shortly after a meeting in New York with Manafort and a representative from Ukraine’s public relations firm to finalize the Report and discuss the media strategy for its rollout, the lead partner contacted a journalist at a national newspaper and asked whether the journalist would take a call from a lobbyist for Ukraine about the Report in advance of its release. Then, shortly before Ukraine released the report on December 13, 2012, the lead partner again contacted the journalist and arranged for delivery of the Report to the journalist, both via email and in person. On December 12, 2012, the lead partner spoke with the national newspaper about the Report and provided a quotation for attribution.
The lead partner’s pre-release outreach to the journalist was consistent with Ukraine’s media strategy for the Report, which including leaking the Report prior to its official release so as to “effectively set the agenda for subsequent coverage.”
FARA requires those in the U.S. who engage in political activities on behalf of foreign principals, which include foreign governments, to make a variety of written public disclosures to the Department of Justice. Based on its awareness of and involvement in Ukraine’s public relations campaign, Skadden had an obligation to register with the Department of Justice under FARA, but it failed to do so. If Skadden had registered, it would have had to disclose, among other things, the full amount it was being paid, the source of those payments, and the full scope of the work it was doing on behalf of the MOJ.
Five days after news articles appeared about the Report, the FARA Unit sent Skadden a letter, seeking information about its activities on behalf of Ukraine in order to assist the FARA Unit in determining whether Skadden had a registration obligation. This was the first of several requests for information the FARA Unit made to Skadden.
In both written and oral responses to the FARA Unit between February 6, 2013, and October 11, 2013, Skadden, in reliance on the lead partner, made false and misleading statements including, among other things, that Skadden provided a copy of the Report only in response to requests from the media and spoke to the media to correct misinformation about the report that the media was already reporting. The firm also submitted documents to the FARA unit that were false.
The FARA Unit made a determination that Skadden did not have a registration obligation in connection with its work for Ukraine, and it based that conclusion on the false and misleading information Skadden had provided. Before making its representations to the FARA Unit, Skadden had conducted no investigation to confirm the information the lead partner was providing to the FARA Unit and to other partners at the firm.
The investigation and negotiation of the Agreement was handled by Jason B.A. McCullough, a Trial Attorney in the Counterintelligence and Export Control Section, which includes the FARA Registration Unit, with assistance from the Federal Bureau of Investigation’s Counterintelligence Division.
Peoria Bomb Squad Member Pleads Guilty to RICO Conspiracy; Gang Violence, Attempted Murder, Gun and Drug ChargesRead the Press Release
PEORIA, Ill. – A Peoria, Ill., man, Terry Moss, a member of the Bomb Squad street gang, today pleaded guilty to conspiring with other alleged gang members as an organized criminal enterprise to commit violent crimes. In addition, Moss, 23, aka “Lil Man,” admitted to attempted murder in aid of racketeering; use of a firearm in relation to a violent crime; and possession and distribution of crack cocaine. Moss appeared in federal court before Chief U.S. District Judge James E. Shadid. Sentencing for Moss is scheduled on Aug. 8, 2019.
Moss is one of the 15 men charged in June 2018 with federal racketeering conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO). Trial for the remaining 14 defendants remains scheduled on June 10, 2019, before Judge Shadid. These defendants are presumed innocent unless proven guilty.
Under the RICO statute, a crime which carries a statutory penalty up to life, the defendants are charged with working as an organized criminal enterprise to achieve its objectives, including activities that affect interstate commerce. From 2013 to June 2018, members and associates of Bomb Squad allegedly engaged in acts of violence, including murder, attempted murder, assault with a dangerous weapon, arson, and drug trafficking. The enterprise used violence to protect itself, its members and associates from rival gangs and to protect the standing and reputation of Bomb Squad.
During his appearance in court today, Moss admitted that he was first exposed to Bomb Squad when he was approximately 13 years old. As a member of the Bomb Squad enterprise, on multiple occasions, Moss admitted he shot at rival gang members in Bomb Squad territory, including on June 27, 2017, when a bullet struck a rival gang member in the foot. Moss admitted he sold and helped others sell narcotics, including crack cocaine, and that he possessed guns, held guns for others and loaned guns to other gang members or associates.
At sentencing, Moss faces potential statutory penalties of up to life for the offense of RICO conspiracy; for violent crime in aid of racketeering (VICAR) attempted murder, the statutory penalty is up to 20 years in prison. Use of a firearm in a crime of violence carries a mandatory minimum penalty of 10 years in prison to be served consecutive to any other term of imprisonment. For possession with intent to distribute and distribution of crack cocaine, the maximum penalty is up to 30 years in prison.
The charges are part of the Department of Justice’s Project Safe Neighborhoods violent crime reduction strategy and an ongoing investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a partnership of federal, state and local law enforcement agencies working together to identify, disrupt and dismantle drug trafficking organizations and violent street gangs.
U.S. Attorney John Milhiser reinforced the office’s commitment to working with partner law enforcement agencies to use and coordinate all necessary resources to combat violence in our communities. “Working with our state and local partners, we will target those individuals who choose to commit violent crime,” said U.S. Attorney Milhiser.
Law enforcement agencies conducting the investigation include ATF, the Peoria Police Department, and DEA, in coordination with the Office of Peoria County State’s Attorney Jerry Brady. Assistant U.S. Attorney Ron Hanna is coordinating the prosecution on behalf of the government in the Peoria Division, Central District of Illinois.
Ohio man accused of plotting July 4th attack in Cleveland indicted for attempting to provide support to al QaedaRead the Press Release
A Maple Heights man was indicted on one count of attempting to provide material support to al Qaeda.
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 49, has been in custody since July, when he was arrested after allegedly planning a terrorist attack in Cleveland.
“Protecting our citizens and our nation remains the Justice Department’s top priority,” U.S. Attorney Justin E. Herdman said. “This defendant plotted and scouted locations in downtown Cleveland for an attack on July 4th, when he knew it would be packed with people celebrating our nation’s birthday. We will continue to do all we can to identify, arrest and prosecute those threats while working to keep our communities safe and secure.”
“Pitts, a U.S. citizen living in Ohio, pledged his allegiance to al-Qaeda, a foreign terrorist organization, and was planning to conduct an attack in Cleveland on Independence Day, the very day we celebrate the freedoms we have in this country,” said FBI Acting Special Agent in Charge Robert Hughes. “The FBI commends the public for reporting individuals that espouse their radical beliefs and/or engage in behavior that threaten the lives of our military personnel and community.”
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts and the UCE met in Walton Hills, Ohio, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts and the UCE searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
The UCE texted Pitts later on June 22 and where he indicated al Qaeda “brothers” would provide Pitts with a bus pass and cellular phone.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, who provided Pitts with a bus pass and a phone Pitts could use to communicate with the UCE. The bus pass was provided to Pitts, as he requested, so he could travel to downtown Cleveland to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This investigation is being conducted by the FBI-Cleveland Division’s Joint Terrorism Task. The case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Matthew Shepherd of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
NDTX Roundup - 1/17/2019Read the Press Release
PLEA – Roberto Rodriguez Salinas
On Jan. 17, Robert Rodriguez Salinas, 38, of Nuevo Laredo, Tamaulipas, Mexico, pleaded guilty to conspiracy to possess 500 grams or more of a mixture or substance containing a detectable amount of cocaine and conspiracy to launder money. Plea documents reveal Mr. Salinas was arrested with approximately 8 kilograms of cocaine, $115,913.00 in United States Currency, and a .380 Bersa Firearm. Mr. Salinas admitted he was conspiring with others to distribute the cocaine he had in his possession and that the currency was drug proceeds which he was going to send to an individual located in Mexico. Rodriguez Salinas agreed to forfeit the currency and the firearm. The case was investigated by the Drug Enforcement Administration, the Dallas Police Department, and the Dallas County Sheriff’s Department.SENTENCING – LaPorshya Polley
On Jan. 16, Chief Judge Barbara Lynn sentenced LaPorshya Polley, convicted of firearms offenses last April, to 4 years in federal prison, followed by 2 years of supervised release. Last year, a jury found her and her codefendant, Darius Fields, guilty of straw purchasing. Mr. Fields -- who was at the time a person of interest in the kidnapping and eventual murder of 13-year-old Shavon Randle -- is set to be sentenced in April. The FBI and Irving Police Department conducted the investigation.PLEA – Corry Jessie
On Oct. 16, Corry Jessie, 26, of Dallas pleaded guilty to two counts of felon in possession of a firearm. Jessie was prosecuted in connection with the Project Safe Neighborhoods program, an initiative bringing together federal and local law enforcement to stem violent crime in hard-hit communities. He now faces up to 20 years in prison and a fine of up to $500,000. The FBI investigated.SENTENCING – Jose Benavidez III
On Jan. 14, Judge Sam A. Lindsay sentenced 29-year-old Jose Benavidez, III, of Dallas, to 13 years in federal prison for conspiring to possess with intent to distribute 50 grams or more of methamphetamine between February 2017 and October 2017. Plea documents reveal that, on multiple occasions, Jose Benavidez, III sold methamphetamine from an address located on Duleth Street in Dallas. Lab reports revealed the methamphetamine ranged in purity from 94% to 100%. During one of the methamphetamine transactions Jose Benavidez, III opened the door of his residence and discharged a firearm. The Texas Department of Public Safety investigated.SENTENCING – Roger Zamora, 41
On Jan. 14, Roger Zamora was sentenced to 8 years in federal prison for his role in a RICO conspiracy. In March 2018, Zamora pled guilty to participation in a transnational criminal enterprise, comprised mostly of Colombian nationals or individuals of Colombian descent, whose members targeted and robbed traveling diamond and jewelry salesmen across the United States. Zamora participated in six armed robberies of traveling diamond and jewelry salesmen over a four month period, between 2015 and 2016, in Texas, Florida, Indiana, and Virginia.NOTE: Due the the lapse in appropraitions, the U.S. Attorney's Office in the Northern District of Texas will not be issuing press releases or distributing news roundups via email. We will, however, post roundups online.
Multiple Removed Aliens Plead Guilty to Immigration CrimesRead the Press Release
CHARLESTON, W.Va. – In three separate cases, two Mexican Nationals and a Guatamalan National entered guilty pleas to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“Multiple defendants. Multiple prior deportations. Repeat offenders. These are three of many, many similar cases that this district has prosecuted in the past few months,” said United States Attorney Mike Stuart. “We seek to prosecute every reentry case involving someone who is here illegally, repeatedly, against the laws of the United States. The number of these cases is growing in this district. This is an area of real concern to ensure the safety of the citizens.”
Mexican National Sebastian Gonzalez-Cid, 26, is scheduled to be sentenced on February 26, 2019, and is also subject to deportation proceedings. On December 6, 2018, Gonzalez-Cid was found in a Huntington, West Virginia apartment complex by members of ICE after receiving a tip that a person was in the country illegally and living in Huntington. Agents approached Gonzalez-Cid, who confirmed his name, offered a Mexican identification, and admitted he was not in the United States legally. Agents immediately confirmed that Gonzalez-Cid was not in the United States legally, and took him into federal custody. Gonzalez-Cid’s fingerprints matched him to a 2017 prior encounter in South Charleston, West Virginia where he was found in West Virginia and deported from the United States. Gonzalez-Cid reentered the United States without obtaining legal permission to do so.
Guatamalan National Marcus Tojin Tiu, 25, is scheduled to be sentenced on February 26, 2019. Tojin Tiu is also subject to deportation proceedings. On October 30, 2019, Tojin Tiu was found in Barboursville, West Virginia by members of ICE after receiving a tip that a person was in the country illegally and working at a restaurant in Barboursville, West Virginia. Agents approached Tojin Tiu, who immediately admitted he was not in the United States legally and offered them a Guatemalan identification. Agents promptly confirmed that Tojin Tiu was not in the United States legally, and took him into federal custody. Tojin Tiu’s fingerprints matched him to a 2012 prior encounter in Harlingen, Texas where he was found in Texas and deported from the United States. Tojin Tiu reentered the United States without obtaining legal permission to do so. Assistant United States Attorney Erik S. Goes is responsible for the prosecutions. United States District Judge Robert C. Chambers presided over the hearings.
Gilberto Espino-Velasquez, 41, faces up to two years of in prison when he is sentenced on March 7, 2019. Espino-Velasquez is also subject to deportation proceedings at the conclusion of any sentence. On November 8, 2018, Espino-Velasquez was found in Nitro, Kanawha County, West Virginia by members of ICE after receiving a tip that individuals were in the country illegally and working on a construction crew in the area. Pursuant to this investigation, ICE agents approached Espino-Velasquez and he surrendered to them. Agents immediately confirmed that Espino-Velasquez was not in the United States legally, and took him into federal custody. Espino-Velasquez’s fingerprints matched him to three prior encounters in 2003 where he was found in the United States illegally and deported from the United States to Mexico. He was also previously convicted of illegally entering the United States in September 8, 2003 in the Western District of Texas. Espino-Velasquez again illegally reentered the United States prior to his capture in 2018. Espino-Velasquez had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Espino-Velasquez also admitted to ICE agents that he was a Mexican citizen. Assistant United States Attorney Erik S. Goes is handling the prosecution. United States District Judge John T. Copenhaver Jr. presided over the hearing.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Monongalia County man admits to lying to federal agentRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darus Zehrbach, of Westover, West Virginia, has admitted to making a false statement, United States Attorney Bill Powell announced.
Zehrbach, age 72, pled guilty to one count of “False Statement to Federal Agent.” Zehrbach admitted to sending a letter to an agent of the United States Department of Commerce stating that a shipment he sent to Iran had originated in China when in fact that shipment originated in the United States. The crime took place in Monongalia County in June of 2018.
Zehrbach faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The U.S. Department of Commerce Office of Export Enforcement investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Indicted for Aiming A Laser Pointer at A Coast Guard HelicopterRead the Press Release
SAN JUAN, P.R. – Yesterday, a federal grand jury returned a one-count indictment against Juan L. Pantoja De Jesus, charging him with aiming the beam of a laser pointer at a Coast Guard helicopter, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The case is being investigated by Coast Guard Investigative Services (CGIS).
On or about June 12, 2018, Pantoja De Jesus knowingly aimed the beam of a laser pointer at a Coast Guard helicopter, and at the flight path of such aircraft, which was an aircraft in the special aircraft jurisdiction of the United States, in violation of Title 18, United States Code, Section 39A.
“Aiming laser pointers at aircraft while in flight is a serious safety threat. It may create a visual distraction or even damage a pilot’s eyes, and may force a pilot to relinquish control of the aircraft to a co-pilot. In cases of law enforcement aircraft, responses to emergency or crime scenes may have to be terminated because of a laser interference. The public should be aware that there are severe consequences to these actions,” said U.S. Attorney Rosa E. Rodriguez-Velez.
Assistant U.S. Attorney Edward G. Veronda is in charge of the prosecution of the case. If convicted, the defendant faces imprisonment of up to 5 years and a fine. The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
# # #Macy Man Sentenced to 90 Months for Assault and Domestic ViolenceRead the Press Release
United States Attorney Joe Kelly announced that Roman Harlan, 34, of Macy, Nebraska, was sentenced in federal court in Omaha, Nebraska, for assault with a dangerous weapon; strangling an intimate partner; and domestic abuse by a habitual offender. Chief United States District Court Judge John M. Gerrard sentenced Harlan to a total sentence of 90 months. There is no parole in the federal system. After his release from prison, Harlan will begin a three-year term of supervised release.
On September 18, 2018 a jury found Harlan guilty of assault, strangulation and domestic violence-related charges. The evidence at trial established that on March 17, 2018, Harlan returned to his home in Macy. He punched his victim, T.M., in the face, held her down by pressing his knees into her shoulder and strangled her until she was unconscious. When T.M. regained consciousness, Harlan was holding two knives to her throat. He threatened T.M.’s life and that of her two-year-old child should she report the assault to the police. Harlan was found to be a habitual domestic offender. One of his earlier convictions was in federal court. He previously received a 51-month sentence for punching and kicking his wheelchair bound partner.
The federal government has jurisdiction over major crimes on the Omaha Indian Reservation involving a Native American. United States Attorney Joe Kelly credits the Federal Bureau of Investigation and Omaha Nation Law Enforcement Services for their response and investigation of this matter. Kelly noted that aggravated and domestic assaults are a priority and will be vigorously pursued by his office.
This case was investigated by the Federal Bureau of Investigation and Omaha Nation Law Enforcement Services.
Hastings Man Sentenced for Health Care FraudRead the Press Release
United States Attorney Joe Kelly and Nebraska Attorney General Doug Peterson announced today that Randy Kirby, 61, of Hastings, Nebraska, was sentenced January 17, 2019, to a year and a day in federal prison and ordered to pay restitution of more than $130,000 by Senior U.S. District Judge Richard Kopf in Lincoln, following Kirby’s plea to one count of Health Care Fraud. He will be on supervised release for three years following his prison term.
Kirby was formerly a mental health therapist in Hastings and operated a mental health practice called Transitions Counseling. Between September 2013 and September 2016, Kirby submitted false claims for reimbursement to Nebraska Medicaid for services that he could not show had occurred. Nebraska Medicaid paid Kirby $133,639.57 for those services. As a result, Kirby was indicted on nine counts of Health Care Fraud. He pleaded guilty to one count of Health Care Fraud in October 2018.
The matter was investigated by the Program Integrity Unit of Nebraska Medicaid and the Medicaid Fraud and Patient Abuse Unit of the Nebraska Attorney General’s Office, following a referral by Medicaid contractor Magellan Behavioral Health. Magellan was concerned about suspicious billings that were submitted by Kirby.
Former Crockett County 911 Director Sentenced to 57 Months for EmbezzlementRead the Press Release
Jackson, TN – On Monday, January 14, 2019, U.S. District Judge S. Thomas Anderson sentenced Brian Black, 42, of Dyersburg, Tennessee to 57 months in the Federal Bureau of Prisons for embezzlement. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentencing today.
According to information presented in court, Black embezzled at least $178,000 from the trust account of the Oleen H. Fewell Estate. Black was the Chancery Court appointed trustee for the trust, which had been set up by the will of Oleen Fewell for benefit of her daughter, Sharon Connor of Alamo, Tennessee. Instead of using the trust’s money for the benefit only of Sharon Connor, Black spent a large part of the trust’s funds for his own personal benefit. Among other things, Black wrote over $70,000 in trust checks directly to himself, spent almost $6,000 of trust money to take a vacation trip to Florida to attend the St. Louis Cardinals baseball team fantasy camp, and used over $12,000 of trust money to buy items for his own home in Dyersburg.
By the time United States Postal Inspectors learned of the fraud and began an investigation, Black had spent all of the money in the trust account. Black was the former 911 director for Crockett County.
U.S. Attorney D. Michael Dunavant said: "This office is committed to exposing and holding accountable any persons who use their position of trust and authority to prey upon innocent victims. Across the rural communities of the Western District of Tennessee, including Crockett County, we will always aggressively prosecute cases involving financial fraud and exploitation of the vulnerable or elderly. We believe that this sentence achieves justice for the victim’s estate in this case, and we commend the United States Postal Inspection Service for their outstanding investigation in this complex matter."
David M. McGinnis, the Inspector In Charge of the Charlotte Division of the United States Postal Inspection Service, stated "Protecting vulnerable victims is a top priority for the Postal Inspection Service. Postal Inspectors are committed to protecting the sanctity of the United States Mail and will hold those accountable that steal from innocent victims."
Black was convicted on June 15, 2018, after a two-week jury trial in Jackson. The United States is seeking a judgment against Black for restitution, and a subsequent hearing will be conducted to determine the exact amount and extent of criminal restitution to be paid by Black to the victim’s estate.
The United States Postal Inspection Service investigated the case. Assistant United States Attorney Tony Arvin prosecuted the case on behalf of the United States.
Floridian Sentenced to 9 Years in Prison for Distributing Multiple Drugs, Including Fentanyl and CarfentanilRead the Press Release
PITTSBURGH, PA. - A Florida resident has been sentenced in federal court to nine years in prison followed by four years of supervised release on his conviction of conspiracy to distribute 40 grams or more of fentanyl and a quantity of carfentanil, as well as distribution of quantities of methamphetamine, carfentanil, and ecstasy, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Cathy Bissoon imposed the sentence on Robert M. Gilner, aka Gman19635, 30, of St. Petersburg, Fla.
According to information presented to the court, Gilner conspired with others, in the Western District of Pennsylvania and elsewhere, to distribute 40 grams or more of fentanyl and a quantity of carfentanil. Additionally, on March 10, 2017, Gilner distributed a quantity of methamphetamine and, on March 22, 2017, he distributed a quantity of carfentanil and a quantity of ecstasy to the Western District of Pennsylvania..
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, United States Postal Inspection Service, and Homeland Security Investigations for the investigation leading to the successful prosecution of Gilner.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the January 2019 Federal Grand Jury.
The following individuals have been charged with violations of United States law in an indictment returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Brandon Dewayne Atnip. Carjacking; Carrying, Brandishing, and Using a Firearm During and in Relation to a Crime of Violence; Felon in Possession of Firearm and Ammunition. Atnip, 31, of Sulphur, is charged with unlawfully taking a 2001 Toyota Corolla and a 1999 GMC Sonoma by force, violence, and intimidation; using a firearm during and in relation to a crime of violence; and being a felon in possession of a firearm and ammunition, including a Kimber Manufacturing, Inc., .45 ACP caliber semi-automatic pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rogers County Sheriff’s Office, and the Craig County Sheriff’s Office are the investigative agencies.
Carlos Banegas. Felon in Possession of Firearm and Ammunition. Banegas, age unknown, of Tulsa, is charged with being a felon in possession of a firearm and ammunition, including a Jimenez Arms Inc., JA3850, .38 caliber pistol. The Federal Bureau of Investigation is the investigative agency.
Jeffrey Scott Cooper. Attempted Coercion and Enticement of a Minor. Cooper, 45, of Broken Arrow, is charged with knowingly attempting to persuade an individual under the age of 18 to engage in sexual activity. The Tulsa Police Department and the Tulsa County Sheriff’s Office are the investigative agencies.
Jesus Ponce Dominguez. Possession of Methamphetamine With Intent to Distribute; Possession of Heroin With Intent to Distribute; Maintaining a Drug-Involved Premises; Possession of Firearms in Furtherance of Drug Trafficking Crimes. Dominguez, 29, of Tulsa, is charged with possession with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine; possession with intent to distribute 100 grams or more of a mixture and substance containing heroin; maintaining a place to manufacture and distribute methamphetamine and heroin; and possessing firearms in furtherance of drug trafficking crimes, including a Glock 21, .45 caliber pistol and a Smith & Wesson M&P9, 9mm caliber pistol. The Drug Enforcement Administration, and the Tulsa Police Department are the investigative agencies.
Robert James Hogard and Iola Mae Canon. Carjacking; Carrying, Brandishing, and Using a Firearm During and in Relation to a Crime of Violence. Hogard, 26, of Tulsa, and Canon 29, of Midwest City, are charged with unlawfully taking a 2007 Chrysler Sebring by force, violence, and intimidation; and using a firearm during and in relation to a crime of violence. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department are the investigative agencies.
Dominic Larocca. Felon in Possession of Firearms and Ammunition. Larocca, 55, of Acworth, Georgia, is charged with being a felon in possession of firearms and ammunition, including a Springfield Firearm, .45 caliber pistol and a Glock Firearm, .40 caliber pistol. The Federal Bureau of Investigation and the Tulsa Police Department are the investigative agencies.
Meldonado Lavoise Lewis. Felon in Possession of Firearms and Ammunition. Lewis, 33, of Tulsa, is charged with being a felon in possession of firearms and ammunition, including a Taurus, .40 S&W caliber pistol, a Glock, .45 Auto caliber pistol, a Smith & Wesson, .22 LR caliber rifle, and a Norinco, 7.62x39mm caliber rifle. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa County Sheriff’s Office, and the Oklahoma Highway Patrol are the investigative agencies.
Sean Clarke McCain. Attempted Coercion and Enticement of a Minor. McCain, 31, of Tulsa, is charged with knowingly attempting to persuade an individual under the age of 18 to engage in sexual activity. The Tulsa Police Department and the Tulsa County Sheriff’s Office are the investigative agencies.
Javier Najera-Adame. Possession of an Unregistered Weapon Made From a Shotgun; Possession of Firearms and Ammunition by an Alien Illegally in the United States. Najera-Adame, 59, of Broken Arrow, is charged with possessing a weapon made from a shotgun, specifically a modified Ithaca Gun Co., 12 gauge shotgun, not registered to him in the National Firearms Registration and Transfer Record; possessing firearms and ammunition by an alien illegally in the United States, including a weapon made from an Ithaca Gun Co., 12 gauge shotgun and a German Sports Guns, .22 long rifle caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Broken Arrow Police Department are the investigative agencies
Gerardo Resendez-Rosales. Reentry of Removed Alien. Resendez-Rosales, 52, address unknown, is charged with having returned to the United States unlawfully after being deported on August 13, 2002 from Del Rio, Texas. The Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.
Devon Marie Rosen. Felon in Possession of Firearm and Ammunition. Rosen, 32, of Tulsa, is charged with being a felon in possession of a firearm and ammunition, including a Taurus .38 caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Tulsa Police Department are the investigative agencies.
Feliciano Saldana-Juarez. Possession of a Firearm After Conviction for a Misdemeanor Crime of Domestic Violence; Possession of a Firearm by an Alien Illegally in the United States; Reentry of Removed Alien. Saldana-Juarez, 53, of Tulsa, is charged with possessing a firearm after being convicted of a misdemeanor crime of assault and battery; being an alien illegally in the United States and knowingly possessing a firearm, including a Beretta US Corp., .22 caliber semi-automatic pistol; and having returned to the United States unlawfully after being deported on April 17, 2015 from Del Rio, Texas. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Immigration and Customs Enforcement’s Homeland Security Investigations, and the Sand Springs Police Department are the investigative agencies.
Hongjin Tan. Theft of Trade Secrets; Unauthorized Transmission of Trade Secrets; Unauthorized Possession of Trade Secrets. Tan, 35, of Bartlesville, is charged with stealing trade secrets pertaining to methods for developing a particular Research and Development Downstream Energy Market Product; and knowingly possessing, duplicating, and transmitting the trade secrets to persons other than the trade secrets’ owner without permission. The Federal Bureau of Investigation, and the Dallas Customs and Border Protection are the investigative agencies.