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Thursday 3 January 2019
Jackson Man Pleads Guilty to Illegally Possessing a Firearm under Project EJECTRead the Press Release
Jackson, Miss. – Christopher Younger, 37, of Jackson, entered a guilty plea today before U.S. District Judge Henry T. Wingate to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana K. Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Younger was previously convicted of multiple felonies, including house burglary, embezzlement, and auto burglary. On January 31, 2018, Younger was found in possession of a firearm when members of the U.S. Marshals’ Gulf Coast Regional Fugitive Task Force went to arrest him for violating his parole from the Arkansas Department of Corrections.
Younger will be sentenced by Judge Wingate on April 4, 2019 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is being prosecuted by Assistant United States Attorneys Lynn Murray and Andrew W. Eichner.
This case is part of Project EJECT, a nationally-recognized initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indiana County Heroin Dealer Sentenced to 7 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Cherry Tree, Pa. has been sentenced in federal court to 84 months in prison and five years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Robert Neal Fiasco, 41.
According to information presented to the court, on Dec. 21, 2015, Fiasco distributed a quantity of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Fiasco.
Heroin Dealer with Illegal Firearms Pleads Guilty to Federal ChargesRead the Press Release
PITTSBURGH - A resident of Beaver County, Pennsylvania, pleaded guilty in federal court to charges of heroin dealing and firearm possession, United States Attorney Scott W. Brady announced today.
Bobby Leon Cook, aka "Bobby L," or "Shorty," age 30, formerly of New Brighton, PA, and originally from Detroit, Michigan, pleaded guilty to two felony counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that the Drug Enforcement Administration (DEA) received information that Cook was selling heroin from a Washington County hotel room and set up surveillance. DEA Task Force Officer Charles Tenny, a Detective Sergeant with the Canonsburg Police Department, made an undercover call to Cook, who agreed to sell him a "brick" of 50 stamp bags for $350.00. Police stopped the defendant in a vehicle after Cook left the hotel and he was arrested on a warrant for violating his Pennsylvania state parole. Police found Cook’s heroin in the car, confirming the recorded calls with TFO Tenny. The hotel room was searched and law enforcement officers located three handguns, ammunition, and the ID card of Cook. Since Cook had two prior convictions for Robbery in Washington County and a separate gun conviction in Allegheny County, he was prohibited from legally possessing a firearm or ammunition. A search warrant for Cook’s cellphone revealed evidence which included pictures of the guns located in the hotel room. The government also seized and forfeited the $3,293 in cash possessed by Cook.
Judge Conti scheduled sentencing for April 25, 2019 at 3:30 p.m. The law provides for a total sentence of up to 30 years in prison, a fine of up to $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Since the court ordered that he remain in jail pending his sentencing, Cook was remanded to the custody of Deputy United States Marshals.
Assistant United States Attorney Ross E. Lenhardt, a veteran prosecutor in the Major Crimes Section, is prosecuting this case on behalf of the government.
The DEA conducted the investigation that led to the prosecution of Cook, with valuable assistance from the Canonsburg Police Department, the City of Washington Police Department, the Washington County District Attorney’s Office and the Washington County Sheriff’s Office.
Former Postal Employee Pleads Guilty and Gets 2 Years’ Probation for Misappropriating FundsRead the Press Release
JOHNSTOWN, Pa. – Aformer United States Postal Service employee pleaded guilty in federal court today to a charge of misappropriation of postal funds, and immediately following, was sentenced to two years’ probation, United States Attorney Scott W. Brady announced today.
Douglas J. Kubenko, 37, of Johnstown, Pa. pleaded guilty to the criminal information before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Sept. 28, 2012, to Nov. 7, 2013, Kubenko used a United States Postal Service credit card 21 times for purchases totaling $946.15 in gas for his private vehicle.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the United States Postal Service, Office of Inspector General for the investigation leading to the successful prosecution of Kubenko.
Former Director of East St. Louis Public Library Pleads Guilty to Embezzlement and Wire FraudRead the Press Release
Marlon P. Bush, age 47, of East St. Louis, Illinois, pleaded guilty today to federal charges of wire fraud and embezzlement from the City of East St. Louis Public Library, a unit of city government that received federal funds. Bush formerly served as the Library’s director, and from 2014 through 2016 took excess salary and charged personal purchases to the Library’s credit card.
Sentencing is scheduled for April 9, 2019. The offenses carry a maximum sentence of up to 30 years of imprisonment, three years of supervised release, and a fine of up to $250,000. Bush may also be ordered to make restitution for his crimes.
The investigation was conducted by the Southern Illinois Public Corruption Task Force, which consists of agents with the Federal Bureau of Investigation, Internal Revenue Service/Criminal Investigation, and the Illinois State Police. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith. Citizens are encouraged to report suspicions of public corruption to the Southern Illinois Public Corruption Task Force Tip Line at (618) 589-7373.
Wednesday 2 January 2019
Statement of U.S. Attorney Geoffrey S. Berman on the Verdict in the Trial of James Grant and Jeremy Reichberg on Corruption and Bribery ChargesRead the Press Release
“As a unanimous jury found, Jeremy Reichberg orchestrated a years-long bribery scheme that led to tens of thousands of dollars in benefits being provided to a select group of NYPD officers to provide Reichberg with a private, paid police force. These illegal acts clearly undermine the mission of the NYPD and leave the citizens of New York City poorer, and Reichberg’s subsequent attempt to hide evidence of his scheme from law enforcement cannot be tolerated. We respect the jury’s verdict as to James Grant, and we thank the jurors for their service during this lengthy trial. Our Office will continue to work with the NYPD and the FBI to prevent corruption.”
Richard B. Myrus Named Acting United States AttorneyRead the Press Release
PROVIDENCE, RI – Pursuant to the Vacancies Reform Act (VRA), First Assistant United States Attorney Richard B. Myrus has been named Acting United States Attorney for the District of Rhode Island, effective today. In his capacity as Acting United States Attorney, Mr. Myrus serves as the chief Federal law enforcement officer for the District of Rhode Island.
Appointed an Assistant United States Attorney in May 2007, Mr. Myrus served as a civil litigator in the Office’s Civil Division and then as a prosecutor in the Criminal Division. Mr. Myrus was named Civil Division Chief in February 2014 and First Assistant United States Attorney in January 2018.
Prior to his appointment as an Assistant United States Attorney, Mr. Myrus specialized in patent infringement litigation and earlier served as a law clerk in the U.S. District Court for the Southern District of New York.
A 1984 graduate of Columbia University, Mr. Myrus received a Master's degree in 1992 from the University of California, San Diego, and earned his law degree from Fordham University School of Law in 1995.
A veteran, Mr. Myrus served for six years as an officer and helicopter pilot in the United States Navy.
Mr. Myrus succeeds United States Attorney Stephen G. Dambruch who stepped down today, having been appointed Criminal Division Chief of the Rhode Island Department of the Attorney General.
United States District Court Chief Judge William E. Smith appointed Mr. Dambruch United States Attorney on May 4, 2108, pursuant to the VRA. Mr. Dambruch was appointed Interim United States Attorney by Attorney General Jeff Sessions on January 5, 2018, and served as Acting United States Attorney from March 13, 2017, to January 5, 2018, pursuant to the VRA.
Mr. Dambruch, who was appointed an Assistant United States Attorney in January 2004, previously served as a state prosecutor with the Rhode Island Department of Attorney General for more than sixteen years.
Mr. Myrus announced that the leadership team in the United States Attorney’s Office will remain the same.
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Mauk Man Sentenced to 121 Months on Child Porn ChargesRead the Press Release
COLUMBUS – A man who pled guilty in September for child pornography was sentenced to 121 months in a federal prison Wednesday, said Charles “Charlie” E. Peeler, United States Attorney for the Middle District of Georgia. Steven Derek Dukes, 35, of Mauk, Georgia, located about 30 miles away from Columbus, was sentenced by Chief U.S. District Court Judge Clay D. Land on January 2, 2019. As a condition of his sentencing, Mr. Dukes will be required to register as a sex offender and will also have ten (10) years supervised release.
Mr. Dukes admitted that he had exchanged emails with an individual under investigation by the Federal Bureau of Investigation (FBI). The two discussed their past sexual experiences and fantasies involving young boys. Mr. Dukes also admitted to exchanging files of child pornography with the individual under FBI investigation. On May 5, 2018, FBI agents executed a search warrant and seized Mr. Dukes’ computer. Subsequent forensic analysis revealed numerous depictions of child pornography on electronic devices seized from Mr. Dukes’ residence. Mr. Dukes waived his Miranda rights and confessed to receiving child pornography. He pled guilty to one count of Receipt of Child Pornography in front of Judge Land on September 5, 2018.
“Sex crimes involving children are despicable, and the use of pornographic images of kids for a person’s sexual gratification is abusive and only proliferates this sick business,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “Mr. Dukes’ case required skilled investigators to piece together his involvement in child porn. We will track down and prosecute criminals engaging in child sex crimes. I want to commend the FBI for their good work.”
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Crawford Seals is prosecuting the case for the United States. 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.
Manhattan U.S. Attorney Announces the Appointment of Criminal Division ChiefRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, today announced the appointment of Laura Grossfield Birger as Chief of the Office’s Criminal Division.
Ms. Birger returns to the Office from the law firm of Cooley LLP, where she was a partner representing individuals and entities in white collar criminal, complex civil, and regulatory matters. Ms. Birger was previously an Assistant United States Attorney in the Office for 10 years, from 1997 to 2007, serving in the Criminal Division. From 2004 to 2007, Ms. Birger was chief of the General Crimes Unit, and from 2003 to 2004, she was Deputy Chief of the Appeals Unit. Ms. Birger graduated magna cum laude from Brown University in 1990 and from Yale Law School in 1993. Upon graduation from law school, Ms. Birger served as a law clerk to United States District Judge Norma L. Shapiro of the Eastern District of Pennsylvania.
In making the appointment, Manhattan U.S. Attorney Geoffrey S. Berman said: “I am extremely pleased that Laura Birger will be returning to public service as Chief of the Office’s Criminal Division. Laura was an outstanding AUSA during her prior tour in the Office and is an accomplished criminal defense lawyer. I am confident that with her intellect, energy, vision, and leadership, Laura will be a terrific Criminal Division Chief. I welcome Laura’s return, and I thank Lisa Zornberg for her more than two years of exceptional service as Chief of the Criminal Division.”
Colombia’s Former National Director of Anti-Corruption and a Foreign Attorney Sentenced to Prison for Participating in a Conspiracy to Launder Money in Order to Promote Foreign BriberyRead the Press Release
The former National Director of Anti-Corruption in Colombia and a foreign attorney were sentenced to prison today in federal court in Miami for their participation in a conspiracy to launder money with the intent to promote foreign bribery.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
Luis Gustavo Moreno Rivera, 37, the former National Director of Anti-Corruption in Colombia and Leonardo Luis Pinilla Gomez, 32, an attorney practicing in Colombia, each previously pled guilty to conspiracy to launder money in order to promote foreign bribery. U.S. District Judge Ursula Ungaro sentenced Moreno to 48 months and Pinilla to 24 months.
According to the court docket, including the agreed upon factual proffers, beginning in November 2016, in Colombia, a cooperating source of information (CS) was approached by Moreno and Pinilla who attempted to entice a bribe from the CS. Specifically, in exchange for 100 million Colombian pesos (the equivalent of approximately $34,500 US), Moreno and Pinilla offered to give the CS copies of sworn statements taken from cooperators who had testified against the CS. In June 2017, Moreno and Pinilla traveled to Miami, Florida and met with the CS who, under the direction of the DEA, provided Moreno and Pinilla with a $10,000 deposit of the bribe money. Recorded conversations revealed that Moreno and Pinilla discussed Moreno’s ability to control the investigation into the CS and that Moreno could inundate his prosecutors with work so that they would be unable to focus on the CS’s investigation. In exchange, Moreno and Pinilla were asking for a 400 million Colombian peso payment (the equivalent of approximately $132,000 US), with an additional $30,000 to be paid prior to Moreno leaving the United States.
Several of the $100 bills, from the $10,000 paid to Moreno and Pinilla, were found on Moreno and his traveling companion as they boarded their flight back to Bogota, Colombia from Miami. Both Moreno and Pinilla were arrested in Colombia pursuant to an Interpol Red Notice.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy, which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.
U.S. Attorney Fajardo Orshan commends the DEA for their investigative assistance with this case. She also thanked the Criminal Division’s Office of International Affairs and Office of Judicial Attache in Colombia along with the DEA Bogota Country Office; the Internal Revenue Service, Criminal Investigations (IRS-CI), Miami Field Office and Attache Office in Colombia; U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office and Attache Office in Colombia; U.S. Customs and Border Protection, Miami Office of Field Operations; and Federal Bureau of Investigation (FBI), Legal Attache Office in Colombia, for their assistance in this matter. Assistant U.S. Attorneys Juan Antonio Gonzalez and Lynn M. Kirkpatrick of the International Narcotics and Money Laundering Section in the Southern District of Florida prosecuted the case.
The U.S. Attorney’s Office and our federal partners commend the Attorney General of Colombia and the Cuerpo Tecnico de Investigacion (CTI) for their cooperative efforts in this investigation.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Anthony Bland, Former Division I Men’s Basketball Coach, Pleads Guilty in Manhattan Federal Court to BriberyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ANTHONY BLAND, a/k/a “Tony,” a former men’s basketball coach at the University of Southern California (“USC”), pled guilty in Manhattan federal court today to taking a cash bribe from athlete advisers in exchange for using his influence over USC college basketball players to retain the services of the advisers paying the bribes. BLAND pled guilty before U.S. District Judge Edgardo Ramos. Munish Sood, a financial adviser, previously pled guilty, pursuant to a cooperation agreement with the Government, in connection with this scheme.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Tony Bland, a former USC men’s basketball coach, abused his position as a mentor and coach to student-athletes and aspiring professionals. He treated his players not as young men to counsel and guide, but as opportunities to enrich himself. Now Tony Bland awaits sentencing for his crime.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents[1]:
BLAND, a former men’s basketball coach at USC, agreed to accept a cash bribe in connection with agreeing to exert his influence over student-athletes on USC’s Division I men’s basketball team to retain the services of the bribe-payers, including once the student-athletes entered the National Basketball Association. BLAND’s co-defendants, with BLAND’s knowledge and approval, also funneled additional money to USC student-athletes and their families in connection with efforts to sign these potential professional athletes.
Beginning in or around July 2017, and continuing into September 2017, when BLAND was arrested, BLAND’s co-defendants paid and/or facilitated the payment of a cash bribe to BLAND in exchange for BLAND’s agreement to exert his influence over certain student-athletes BLAND coached at USC to retain BLAND’s co-defendant’s business management and/or financial advisory services once those players entered the NBA. In particular, as BLAND told Christian Dawkins and Munish Sood, during a recorded meeting, in return for their bribe payment, “I definitely can get the players. . . . And I can definitely mold the players and put them in the lap of you guys.” In addition, and as part of the scheme, with BLAND’s knowledge and approval, Dawkins and Sood paid or facilitated the payment of an additional $9,000 directly to the families of two student-athletes at USC. In return, BLAND facilitated a meeting between Dawkins and Sood and a relative of a different player attending USC for the purpose of pressuring that player to retain the financial services of Dawkins and Sood.
* * *
BLAND, 38, of Los Angeles, California, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, BLAND agreed to forfeit $4,100. 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 2, 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.
The charges contained in the Indictment against Christian Dawkins, Merl Code, Emmanuel Richardson, and Lamont Evans are merely accusations, and Dawkins, Code, Richardson, and Evans are presumed innocent unless and until proven guilty. Trial is scheduled to commence against the other defendants on April 22, 2019.
Code and Dawkins are scheduled to be sentenced on March 5, 2019, by U.S. District Judge Lewis A. Kaplan in United States v. Gatto, No. 17 Cr. 686 (LAK), based on their conviction for participating in a separate wire fraud scheme to make payments to the families of men’s basketball student-athletes in connection with their decisions to matriculate in Adidas-sponsored Division I schools.
[1] The descriptions set forth below of conduct by BLAND’s co-defendants constitute only allegations, and every fact described should be treated as an allegation with respect to BLAND’s co-defendants, including Christian Dawkins, Merl Code, Emmanuel Richardson, and Lamont Evans.
Monday 31 December 2018
Federal Grand Jury Returns Indictments Charging 25 Individuals in DecemberRead the Press Release
MACON— A federal grand jury has returned indictments during the month of December. Charles “Charlie” E. Peeler, the United States Attorney for the Middle District of Georgia, announced Monday, December 31, 2018 that the grand jury true billed indictments charging 25 new individuals. An indictment is only an allegation of criminal conduct. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
“The successful collaboration between law enforcement at every level helped bring these cases before a federal grand jury,” said U.S. Attorney Peeler. “I want to thank our local, state and federal law enforcement for their dedication and hard work.”
Indictment #1
JANARVIS TUCKER, 21, of Sandy Springs, Georgia is charged with the following:
1) Possession with Intent to Distribute Methamphetamine
If convicted on Count 1, Mr. Tucker faces a mandatory minimum sentence of ten (10) years up to the possibility of life in prison and a $10,000,000 fine.
The case was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation and the Peach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Beth Howard.
Indictment #2
CLIFFORD TERRELL, 43, of Barnesville, Georgia is charged with the following:
1-3) Bank Robbery
If convicted on Counts 1-3, Mr. Terrell faces a maximum sentence of 20 years in prison on each count.
The case was investigated by the Federal Bureau of Investigation, the U.S. Marshals Southeast Regional Fugitive Task Force, the Bibb County Sheriff’s Office, the Lamar County Sheriff’s Office, the Monroe County Sheriff’s Office and the Forsyth Police Department. The case is being prosecuted by Assistant U.S. Attorney Will R. Keyes.
Indictment #3
MARCRESS WILLIAMS a/k/a “BEAST”, 26, of Macon, Georgia is charged with the following:
1) Conspiracy to Distribute Methamphetamine
2-4) Distribution of Methamphetamine
5) Possession with Intent to Distribute Methamphetamine
STEPHANIE THOMAS, 25, of Macon, Georgia is charged with the following:
1) Conspiracy to Distribute Methamphetamine
2-4) Distribution of Methamphetamine
5) Possession with Intent to Distribute Methamphetamine
If convicted on Count 1 and/or Count 5, Mr. Williams and Ms. Thomas face maximum sentences of life in prison, a $10,000,000 fine, or both. If convicted on Counts 2-4, the defendants face a maximum of 40 years in prison, a $5,000,000 fine, or both.
The case was investigated by the United States Drug Enforcement Administration and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts.
Indictment #4
CLAUDIA WASHINGTON, 59, of Valdosta, Georgia is charged with the following:
1 and 4) Possession with Intent to Distribute Heroin
2) Possession with Intent to Distribute Methadone and Hydrocodone
3) Possession with Intent to Distribute Heroin
If convicted on Counts 1-4, Ms. Washington faces a maximum sentence of 20 years in prison, a $1,000,000 fine, or both, on each count.
The case was investigated by the Federal Bureau of Investigation and the Lowndes County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Sonja Profit.
Indictment #5
RANDY ANGELO HILL, 32, of Tifton, Georgia is charged with the following:
1) Bank Robbery
If convicted on Count 1, Mr. Hill faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
The case was investigated by the Federal Bureau of Investigation and the Tifton Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael T. Solis.
Indictment #6
RUSBELY LUCAS-CARBAJAL, 33, of Mexico is charged with the following:
1) Illegal Reentry into the United States
If convicted on Count 1, Mr. Lucas-Carbajal faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Amelia G. Helmick.
Indictment #7
HECTOR BAROJAS-SANCHEZ, 33, of Mexico is charged with the following:
1) Illegal Reentry into the United States
If convicted on Count 1, Mr. Barojas-Sanchez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Amelia G. Helmick.
Indictment #8
MARCOS LEON-CRUZ, 46, of Mexico is charged with the following:
1) Illegal Reentry into the United States
If convicted on Count 1, Mr. Leon-Cruz faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Amelia G. Helmick.
Indictment #9
GILBERTO AMBROSIO-RAMIREZ, 28, of Mexico is charged with the following:
1) Illegal Reentry into the United States
If convicted on Count 1, Mr. Ambrosio-Ramirez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Amelia G. Helmick.
In addition to the above indictments, the following individuals were indicted for firearms offenses. All of these cases were brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. PSN was launched in 2001 by the Office of the Attorney General.
Indictment #10
LAXAVIER PATTERSON, 39, of Valdosta, Georgia is charged with the following:
1) Theft of a Firearm from a Federal Firearms Licensee
2) Possession of a Stolen Firearm
3) Possession of a Firearm by a Convicted Felon
If convicted on Counts 1-3, Mr. Patterson faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both, on each count.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Valdosta Police Department. The case is being prosecuted by Assistant U.S. Attorney Sonja Profit.
Indictment #11
JOHMAR CHANDLER, 40, of Macon, Georgia is charged with the following:
1) Possession of a Firearm by a Convicted Felon
2) Possession of a Firearm in Furtherance of a Drug Trafficking Crime
3) Possession of a Controlled Substance with Intent to Distribute
4) Simple Possession of a Controlled Substance
If convicted on Count 1, Mr. Chandler faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both. If convicted on Count 2, Mr. Chandler faces a maximum sentence of life in prison, a $250,000 fine, or both. If convicted on Count 3, Mr. Chandler faces a maximum sentence of 30 years in prison, a $2,000,000 fine, or both. If convicted on Count 4, Mr. Chandler faces a maximum sentence of two (2) years in prison, a minimum $2,500 fine, or both.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Army Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Chris Williams.
Indictment #12
FREDDIE CLARK, 42, of Columbus, Georgia is charged with the following:
1) Possession of a Firearm by a Convicted Felon
2) Possession of a Controlled Substance with Intent to Distribute
3) Possession of a Firearm in furtherance of a Drug Trafficking Crime
If convicted on Count 1, Mr. Clark faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both. If convicted on Count 2, Mr. Clark faces a maximum sentence of life in prison, a $8,000,000 fine, or both. If convicted on Count 3, Mr. Clark faces a maximum sentence of life in prison, a $250,000 fine, or both.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbus Police Department. The case is being prosecuted by Assistant U.S. Attorney Chris Williams.
Indictment #13
ARRINGTON CULPEPPER, 33, of Columbus, Georgia is charged with the following:
1) Possession of a Firearm by a Convicted Felon
If convicted on Count 1, Mr. Culpepper faces a maximum sentence of life in prison, a $250,000 fine, or both.
The case was investigated by the Federal Bureau of Investigation, the Department of Community Supervision and the Columbus Police Department. The case is being prosecuted by Assistant U.S. Attorney Chris Williams.
Indictment #14
CALVIN AMOS, 35, of Albany, Georgia is charged with the following:
1) Possession with Intent to Distribute Cocaine
2) Possession with Intent to Distribute Marijuana
3) Possession of a Firearm by a Convicted Felon
4) Possession of a Firearm During a Drug Trafficking Offense
If convicted on Count 1, Mr. Amos faces a maximum of 20 years in prison and a $1 million fine. If convicted on Count 2, Mr. Amos faces a maximum of five (5) years in prison and a $250,000 fine. If convicted on Count 3, Mr. Amos faces ten (10) years in prison and a $250,000 fine. If convicted on Count 4, Mr. Amos faces five (5) years to life in prison and a $250,000 fine.
The case was investigated by the Albany Dougherty Drug Unit and is being prosecuted by Assistant U.S. Attorney Jim Crane.
Indictment #15
DADGE PARRISH, 32, of Columbus, Georgia is charged with the following:
1) Possession with Intent to Distribute Xanax
2) Possessing a Firearm in Furtherance of a Drug Trafficking Crime
3) Possession of a Firearm by a Convicted Felon.
If convicted on Count 1, Mr. Parrish faces a maximum sentence of five (5) years in prison, a $250,000 fine, or both. If convicted on Count 2, Mr. Parrish faces a mandatory minimum consecutive sentence of five (5) years with a maximum of life in prison and a $250,000 fine, or both. If convicted on Count 3, Mr. Parrish faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Georgia State Patrol. The case is being prosecuted by Assistant U.S. Attorney Amelia G. Helmick.
Indictment #16
JOSHUA WAYNE COKER, 37, of Hartwell, Georgia is charged with the following:
1) Possession with Intent to Distribute Methamphetamine
2) Possession of a Firearm During a Drug Trafficking Crime
If convicted on Count 1, Mr. Coker faces a maximum sentence of 40 years in prison, a $5 million fine, or both. If convicted on Count 2, Mr. Coker faces a maximum sentence of life in prison, consecutive to any time imposed for Count 1, a $250,000.00 fine, or both.
The case was investigated by the Drug Enforcement Agency and the Hartwell Sheriff’s Office, with collaboration from Parks White, District Attorney for the Northern Judicial Circuit. The case is being prosecuted by Assistant U.S. Attorney Tamara Jarrett.
Indictment #17
IDRIS SHAMSID-DEEN, 32, of Macon, Georgia is charged with the following:
1) Possession of a Firearm by a Person who has been Convicted of a Misdemeanor Crime of Domestic Violence
If convicted on Count 1, Mr. Shamsid-Deen faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bibb County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Will R. Keyes.
Indictment #18
BRANDON WILLIAMS, 25, of Macon, Georgia is charged with the following:
1) Possession of a Firearm by a Convicted Felon
2) Simple Possession of a Controlled Substance
If convicted on Count 1, Mr. Williams faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both. If convicted on Count 2, Mr. Williams faces a maximum sentence of one (1) year in prison, a $1,000 minimum fine, or both.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Will R. Keyes.
Indictment #19
RONNIE LEE HUGHES, 38, of Griffin, Georgia is charged with the following:
1) Possession of a Firearm by a Convicted Felon
If convicted, Mr. Hughes faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both.
The case was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lamar County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Paul McCommon.
Indictment #20
TYLAUN RASHARD MULLINS, 19, of Macon, Georgia is charged with the following:
1) Theft of a Firearm from a Federal Firearms Licensee
2) Possession of a Stolen Firearm
CHRISTIAN JABARI BLACK, 19, of Macon, Georgia is charged with the following:
1) Theft of a Firearm from a Federal Firearms Licensee
JACQUES STEWART, 20, of Macon, Georgia is charged with the following:
1) Theft of a Firearm from a Federal Firearms Licensee
If convicted on Count 1, Mr. Mullins, Mr. Black and Mr. Stewart face a maximum sentence of ten (10) years in prison, a $250,000.00 fine, or both. If convicted on Count 2, Mr. Mullins faces the same additional penalties.
The case was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bibb County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Paul McCommon.
Indictment #21
ISAIAH WALKER, 34, of Valdosta, Georgia is charged with the following:
1) Possession of a Firearm by a Convicted Felon
If convicted on Count 1, Mr. Walker faces a maximum sentence of ten (10) years in prison and a $250,000 fine, or both.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lowndes County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Robert D. McCullers.
Indictment #22
DAVEY BARGE, JR., 37, of Moultrie, Georgia is charged with the following:
1) Possession of a Firearm by a Convicted Felon
If convicted on Count 1, Mr. Barge faces a maximum sentence of ten (10) years in prison and a $250,000 fine, or both.
The case was investigated by the Moultrie Police Department and is being prosecuted by Assistant U.S. Attorney Robert D. McCullers.
Questions concerning this release should 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.
Davenport Man Sentenced to 210 Months in Prison for Methamphetamine and Firearms OffensesRead the Press Release
DAVENPORT, Iowa –On December 18, 2018, Corey Alan Taylor, age 30, of Davenport, was sentenced by United States District Court Chief Judge John A. Jarvey to 210 months in prison to be followed by five years of supervised release for methamphetamine and firearms charges announced United States Attorney Marc Krickbaum.
Taylor was arrested after law enforcement conducted a series of controlled purchases of methamphetamine from him. Taylor was subsequently found in possession of approximately two pounds of methamphetamine; $43,795 in cash; and loaded firearms.
This matter was investigated by the Quad Cities Metropolitan Enforcement Group and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods (PSN), a Department of Justice program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Davenport Man Sentenced to 210 Months in Prison for Federal Firearms OffenseRead the Press Release
DAVENPORT, Iowa—On December 26, 2018, Nathaniel Charles Rockwood, age 42, of Davenport, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 210 months in prison to be followed by five years of supervised release for unlawful possession of a firearm, announced United States Attorney Marc Krickbaum.
Law enforcement made contact with Rockwood on December 3, 2017, after obtaining information he was in possession of a firearm and had warrants for his arrest. As officers approached Rockwood, he rammed two marked police vehicles in an attempt to flee. Rockwood then exited his vehicle and ran from the police officers. After Rockwood was apprehended, he was found in possession of a firearm and methamphetamine.
This case was investigated by the Davenport Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods (PSN), a Department of Justice program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Davenport Man Sentenced to 200 Months in Prison for Drug OffenseRead the Press Release
DAVENPORT, Iowa—On December 20, 2018, Eric James Newman, age 42, of Davenport, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 200 months in prison, to be followed by ten years of supervised release, for Conspiracy to Distribute Methamphetamine, announced United States Attorney Marc Krickbaum.
Law enforcement made contact with Newman on December 4, 2017, after conducting a controlled purchase of methamphetamine from him on December 3, 2017. Officers found Newman to be in possession of approximately one-quarter pound of methamphetamine, over $3,000 cash, and drug paraphernalia. Newman had several prior felony drug convictions and was on probation at the time of this offense.
This case was investigated by the Davenport Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Burlington Man Sentenced to 240 Months Imprisonment for Possession of Methamphetamine with Intent to Distribute and Possession of a FirearmRead the Press Release
DAVENPORT, Iowa- On December 20, 2018, Carlos Jermane Walls, age 37, of Burlington, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 240 months in prison for Possession of Methamphetamine with the Intent to Distribute and 120 months in prison for Possession of a Firearm by a Felon, announced United States Attorney Marc Krickbaum. Walls was ordered to serve five years of supervised release following the 240 months of imprisonment, three years of supervised release following the 120 months of imprisonment, and pay $200 to the Crime Victims’ Fund. The two periods of imprisonment and supervised release will run concurrently.
On July 5, 2018, Walls pleaded guilty to the offenses and admitted on May 2, 2017, he possessed 2567.77 grams of actual methamphetamine and a .38 special revolver inside a residence in the 800 block of Iowa Street in Burlington. He further admitted at the time he possessed the methamphetamine, he intended to distribute some or all of it to others. The charges were the result of an investigation that began with a citizen tip to law enforcement. The investigation culminated in the execution of a search warrant at the residence where law enforcement recovered methamphetamine, the revolver, and other items consistent with drug distribution.
This matter was investigated by the Southeast Iowa Narcotics Task Force, Burlington Police Department, Des Moines County Sheriff’s Office, Iowa Division of Narcotics Enforcement, and the Des Moines County Tactical Response Unit. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Friday 28 December 2018
Four Alleged Leaders and Members of Lev Tahor Charged in White Plains Federal Court with Kidnapping ChildrenRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and George P. Beach II, Superintendent of the New York State Police (“NYSP”), announced today the arrests of NACHMAN HELBRANS, MAYER ROSNER, ARON ROSNER, and JACOB ROSNER, all of whom were charged by complaint with kidnapping two children in Woodridge, New York, and unlawfully transporting them to Mexico. With the help of Mexican law enforcement partners, the children were recovered this morning in the town of Tenango del Air in Mexico. Plans are underway to bring them back to the United States and reunite them with their mother.
ARON ROSNER was arrested in New York City on December 23, 2018, and presented in White Plains federal court before U.S. Magistrate Judge Lisa Margaret Smith the following day. On or about December 27, 2018, NACHMAN HELBRANS, MAYER ROSNER, and JACOB ROSNER were deported from Mexico by Mexican immigration authorities, and arrived in New York City. They were arrested yesterday and presented today in White Plains federal court before U.S. Magistrate Judge Paul E. Davison.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Complaint, the defendants engaged in a terrifying kidnapping of two children in the middle of the night, taking the children across the border to Mexico. Thankfully, the kidnappers were no match for the perseverance of the FBI, the New York State Police, and Mexican authorities, and the children were recovered this morning after a nearly three-week search. These charges and arrests send a clear message that if you are involved in child abduction we will find you and bring you to justice.”
Assistant Director-in-Charge Sweeney said: “As alleged, the defendants are leaders and members of Lev Tahor who kidnapped two innocent children to continue their lives with the group in violation of a legitimate, court-ordered child custody arrangement. This case demonstrates the FBI will never cease our efforts to bring justice to those who would victimize our nation’s most vulnerable citizens in blatant disregard for our laws. I would like to thank the multitude of domestic and international partners who worked tirelessly, shoulder-to-shoulder with us to bring this case to a successful conclusion.”
State Police Superintendent George P. Beach II said: “Through great police work, two children are being returned home safely to their mother. I applaud the teamwork and interagency coordination that lead to getting these suspects into police custody, and these children to safety. We will continue to work with our partners to seek justice on behalf of those who have been victimized and to protect the members of our communities.”
According to the allegations in the Complaints unsealed in White Plains federal court:[1]
On or about December 8, 2018, two children (the “Victims”), ages 12 and 14, were kidnapped from a residence in the Village of Woodridge, Sullivan County, New York (the “Residence”), where they were staying with their mother (the “Mother”). Approximately six weeks earlier, the Mother had fled from an organization in Guatemala called Lev Tahor.
Lev Tahor is an extremist Jewish sect based in Guatemala. Public news reports indicate that children in Lev Tahor are often subject to physical, sexual, and emotional abuse. The Mother was previously a voluntary member of Lev Tahor and her father was its founder and former leader, Rabbi Shlomo Helbrans. According to the Mother, the new leader of Lev Tahor, her brother NACHMAN HELBRANS, is more extreme than her father had been, and, as a result, she fled from the group. Prior to her escape, the Mother spoke out against the growing extremism within Lev Tahor. The Mother indicated that it was not safe to keep her children there. Upon entering the United States, the mother was granted temporary sole custody of the Victims, along with her four other children, in Kings County Family Court and an Order of Protection was issued against the Victims’ biological father on behalf of all six children.
As part of their investigation, law enforcement agents interviewed a participant in the kidnapping who was a member of Lev Tahor for over 19 years before leaving the organization approximately three months ago (“CC-1”). CC-1 stated that the current leaders of Lev Tahor include MAYER ROSNER and NACHMAN HELBRANS. CC-1 also stated that NACHMAN HELBRANS is considered the Rabbi and leader of Lev Tahor, that ARON ROSNER is the brother of MAYER ROSNER, and that JACOB ROSNER a/k/a “Chaim Rosner,” is the son of MAYER ROSNER.
NACHMAN HELBRANS, MAYER ROSNER, JACOB ROSNER, and ARON ROSNER participated in the scheme to kidnap the Victims. HELBRANS was captured in surveillance footage with the Victims at an airport outside Scranton, Pennsylvania, on the day of the kidnapping. In the footage, HELBRANS and the Victims are wearing modern clothing inconsistent with the clothing typically worn by members of Lev Tahor. MAYER ROSNER participated in the planning conversations for the kidnapping and attempted to persuade CC-1 to leave the country once the Victims had been transported to Mexico. JACOB ROSNER, who is considered within Lev Tahor to be the husband of the 14-year old Victim, also participated in the planning conversations for the kidnapping and purchased the clothing worn by HELBRANS and the Victims during the kidnapping. ARON ROSNER helped fund the kidnapping and organized conference calls with several co-conspirators over the course of the kidnapping during which co-conspirators discussed hotels in Mexico as well as purchases of flights, bus tickets, credit cards, and food for the Victims.
* * *
ARON ROSNER, 45, of Brooklyn, New York, MAYER ROSNER, 42, of Guatemala, JACOB ROSNER, 20, of Guatemala, and NACHMAN HELBRANS, 36, of Guatemala, are each charged with one count of kidnapping, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding work of the FBI and members of the FBI Hudson Valley Safe Streets Task Force, the New York State Police and the members of Troops F and NYC, United States Customs and Border Protection, the Sullivan County District Attorney’s Office, the Rockland County District Attorney’s Office, the Rockland County Sheriff’s Department, the Spring Valley Police Department, the Village of Woodridge Police Department, and our law enforcement partners in Mexico. Mr. Berman also thanked the Department of Justice’s Office of International Affairs for its assistance.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Sam Adelsberg and Jamie Bagliebter in charge of the prosecution.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaints and the descriptions of the Complaints set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Avanti Hospitals and Its Owners Agree to Pay $8.1 Million to Settle Allegations of Paying Illegal Kickbacks for Patient ReferralsRead the Press Release
LOS ANGELES – The Department of Justice announced today that Los Angeles-based Avanti Hospitals LLC and six of its owners will pay the federal government $8.1 million to settle allegations that they violated the False Claims Act by submitting – or causing Avanti’s subsidiary, Memorial Hospital of Gardena, to submit – false claims to the Medicare and Medicaid programs for medical services provided to patients who were referred by a physician who received kickbacks and other improper payments.
“Illegal kickbacks paid to doctors for referrals burden our healthcare system, drive up insurance costs for everyone, and corrupt the doctor-patient relationship,” said United States Attorney Nick Hanna. “Patients are not commodities who can be sold to the highest bidder, especially when the bills are ultimately being paid by American taxpayers.”
“Financial arrangements that improperly compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs.”
The government alleged that payments from Avanti, Gardena Hospital and at least two other Avanti affiliates to a high-referring physician violated the Anti-Kickback Statute, which prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. They also allegedly violated the Physician Self-Referral Law, commonly known as the Stark Law, which prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper compensation arrangement. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not distorted by improper financial incentives and is instead based only on the best interests of the patient.
The settlement announced today resolved allegations that Avanti, Gardena Hospital and at least two other Avanti affiliates provided compensation to a physician they engaged as a medical director that both exceeded the fair market value of his services and was an attempt to incentivize him to refer patients to Gardena Hospital.
Avanti and Gardena Hospital have also entered into a corporate integrity agreement with the Department of Health and Human Services, Office of Inspector General.
“Patients and taxpayers rightly should expect that referrals be based on sound medical judgement, not driven by thinly veiled bribes, as alleged here,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Our compliance agreement with Avanti and Gardena Hospital contains strong monitoring and reporting provisions to help ensure that people in government health programs will be protected.”
The settlement announced today partially resolves allegations originally brought in a lawsuit filed by Dr. Joshua Luke, the former C.E.O. of Gardena Hospital, under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Dr. Luke will receive approximately $1.6 million from the federal government.
The government’s intervention in this matter illustrates its emphasis on combating health care fraud. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was handled by the United States Attorney’s Office for the Central District of California, the Civil Division’s Commercial Litigation Branch, and the Department of Health and Human Services, Office of Inspector General.
The case is U.S. ex rel. Luke, State of California ex rel. Luke v. Gardena Hospital, L.P. DBA Memorial Hospital of Gardena, Avanti Hospitals, LLC, et al., CV 15-8732-FMO. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Wednesday 26 December 2018
Spokane Man Sentenced to 4 Years in Federal Prison for Unlawfully Possessing FirearmsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Charles Edgar Troutt, age 49, of Spokane, Washington, was sentenced today after having pleaded guilty on May 18, 2018, to being a felon in possession of firearms. United States District Judge Stanley A. Bastian sentenced Troutt to a 4-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in September 2017, officers with the Spokane Police Department began conducting surveillance of Troutt’s residence. Officers observed Troutt place a backpack in the trunk of his vehicle and drive away. The officers were aware that Troutt had a suspended license and conducted a traffic stop. During the encounter, officers observed butane torches, a scale, drug paraphernalia, and suspected controlled substances wrapped in small baggies. After obtaining warrants to search Troutt’s vehicle and residence, officers seized a Smith and Wesson .357 revolver, a Sears 12-gauge sawed-off shotgun, and other firearms. Troutt is a convicted felon and is prohibited from possessing firearms and ammunition.
Joseph H. Harrington said, “The sentence imposed today should serve as a reminder that convicted felons must not possess firearms. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for previously convicted felons who possess firearms. I commend the ATF and Spokane Police Department officers for their tireless efforts in combating firearms offenses in our community.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Spokane Police Department Patrol Anti-Crime Team (“PACT”). This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Former Dojo Pizza Owner Found Guilty on Federal Child Sex ChargesRead the Press Release
St. Louis, MO – After an eleven-day bench trial in May, U.S. District Court Judge Audrey Fleissig returned guilty verdicts on eight counts, involving four victims, relating to child exploitation and child pornography produced and possessed by Loren “Sensei” Copp, former owner of Dojo Pizza located at 4601 Morganford Road.
According to testimony at trial, Copp held himself out to be a trusted member of the community as a youth pastor, community activist, martial arts instructor, and business owner. He used these positions to gain the trust of parents to gain access to their children. For several years defendant Copp groomed and sexually abused two minor females who had been in his custody since 2009. The grooming process began when defendant Copp began touching the victims’ buttocks while playing “the butt game,” which then led to him touching their vaginas and breasts. Eventually, Copp began having sex with both girls, and he would record the sex acts with a cell phone or video recorder. While at the Dojo Pizza property, Copp would have sex with each girl multiple times a week, and while there he took pornographic pictures of one victim’s genitals and breasts. Copp would also watch pornography with one of the victims in his office at the Dojo Pizza property.
During trial, there was also evidence of Facebook chats between two additional minor female victims and a Facebook account utilized by Copp, which purported to be used by a 13 year-old named “Chrissy.” The aforementioned Facebook account depicted a facial image of a minor female for the profile picture, and this same Facebook profile picture of “Chrissy” was found on Copp’s computer, along with multiple pornographic images of the three victims that were sent to the “Chrissy” Facebook account. Additionally, within the Facebook chats between “Chrissy” and the minor victims, there were multiple references to sexual activity and/or sexually explicit conduct occurring between the victims, as well as one particular victim and Copp. Also, there were coercive and deceptive emails sent from a Yahoo email account directed towards one minor victim, which were between Copp’s Gmail account and the Yahoo account. The majority of the these Yahoo emails were sent from the same IP address attached to emails sent/received from Copp’s Gmail account. The subscriber information and backup emails used for the “Chrissy” Facebook account, as well as the Yahoo email account, were linked to Copp.
Copp, 49, St. Louis, MO, was indicted on April 14, 2016 on nine counts, to include production and attempted production of child pornography; possession of child pornography; and the use of interstate facilities to persuade or coerce a minor to engage in sexual activity. Sentencing has been set for April 5, 2019.
“The bravery of the victims who testified at trial was essential to this case,” said U.S. Attorney Jeff Jensen. “Without them and the relentless work of the investigative and trial teams, these verdicts would not have been rendered.”
Three counts of production of child pornography and attempted production of child pornography carry fifteen year mandatory minimum sentences. Two other counts of criminal enticement carry life maxima. Therefore, Copp faces a term of fifteen years to life at sentencing.
The case was investigated by the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the U.S. Department of Homeland Security – Immigration and Customs Enforcement (ICE). This case was handled by Assistant United States Attorneys Jennifer Winfield, Colleen Lang and Investigator Donya Jackson.
California Man Pleads Guilty to Fraud Charges in Mortgage Fraud, Identity Theft SchemeRead the Press Release
On December 21, 2018, George French Jones, Jr., 50, of Santa Monica, California, pled to mail fraud and identity theft charges in connection with a mortgage fraud scheme involving two waterfront residential properties in Broward County, Florida.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI) made the announcement.
According to information disclosed in open court, in early 2018 Jones identified two residential properties in Fort Lauderdale, Florida, which Jones fraudulently pledged as collateral in order to obtain mortgage loans from a private lender.
The two properties were owned by corporate entities that Jones had no affiliation with and which were in fact owned by independent third parties. To execute his fraudulent loan scheme, Jones created fake identification documents and email addresses in order to impersonate officers of the corporate owners of the two properties. Jones then submitted bogus loan applications and other documents to a private lender in which he pretended to be the owners of the Fort Lauderdale properties. As a result of this scheme, Jones defrauded the private lender out of approximately $1.7 million dollars.
Jones pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). At sentencing, Jones faces a maximum possible sentence of 22 years in prison. He is scheduled to be sentenced by U.S. District Judge Robert N. Scola on March 1, 2018, at 8:30 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Christopher Browne. Assistant U.S. Attorney Nalina Sombuntham is handling the asset forfeiture aspects of the prosecution.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Friday 21 December 2018
York Gang Member Who Was Videotaped Stomping A Rival Gets 21 Years’ ImprisonmentRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyree Eatmon, a/k/a “Ree,” age 30, of York, Pennsylvania, was sentenced to 21 years and eight months’ imprisonment on December 20, 2018, by United States District Court Judge Yvette Kane for racketeering and drug distribution conspiracies.
According to United States Attorney David J. Freed, Eatmon was identified as a member of the “Southside” street gang and was involved in violent gang activity. Four other gang members from the “Southside” case were previously sentenced to life in prison.
At the sentencing hearing, the United States presented evidence of Eatmon’s involvement in the violent gang activity that was the subject of the two-month long trial that occurred in 2015. On September 2, 2012, Eatmon and his fellow gang members were involved in a melee in the parking lot of convenience store. During the melee, Eatmon and co-defendant Maurice Atkinson, a/k/a “Mo,” assaulted, kicked and stomped a member of a rival gang. During the altercation, multiple shots were fired striking an innocent bystander in the head, causing permanent damage. Video footage of the assault and shooting was played at the trial.
The government noted that Eatmon was involved in other shootings and assaults during his years of involvement in the gang.
Judge Kane noted that the violence associated with the gang was a “reign of terror” to community. The court compared Eatmon to the other four defendants on whom she imposed a life sentence. The judge found that Eatmon was not involved in murders and / or violent retaliations against witnesses. She also found that Eatmon served over 42 months of incarceration in state facilities for related conduct.
In November 2015, a jury convicted Eatmon of racketeering conspiracy, drug trafficking conspiracy, and drug trafficking after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury also convicted the other 11 men who went to trial with Eatmon.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
According to U.S. Attorney Freed, the principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges.
The individual defendants and the charges on which they were awaiting sentencing or were sentenced:
Rolando Cruz, Jr., “Mico,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 3, 2017, to life in prison.
Marc Hernandez, a/k/a “Marky D,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 25, 2017, to life in prison.
Douglas Kelly, a/k/a “Killer,” age 39, racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 12, 2017, to life in prison.
Maurice Atkinson, a/k/a “Mo,” age 30; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on February 12, 2018, to life in prison.
Roscoe Villega, a/k/a “P Shawn,” age 44; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 25 years in prison.
Anthony Sistrunk, a/k/a “Kanye,” age 30; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to 30 years in prison.
Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 200 months in prison on December 7, 2017,
Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 165 months in prison on December 21, 2017,
Richard Nolden, age 28; racketeering conspiracy was sentenced to 25 years in prison on December 21, 2017,
Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced to 33 months in prison on June 5, 2017,
Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced to 34 months in prison on November 10, 2016,
Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced to 60 months in prison on May 15, 2017.
Southside gang members who pleaded guilty to racketeering conspiracy prior to the trial are and who are awaiting sentencing are:
James Abney, a/k/a “Doocs,” age 31;
Malik Sturdivant, a/k/a “Base,” age 25;
Jahkeem Abney, a/k/a “Foo,” age 27;
Ronald Payton, a/k/a “Ron Ron,” age 25;
Marquis Williams, a/k/a “Quis,” age 29; and
Quintez Hall, a/k/a “Q,” age 25.
The case included the participation and assistance of the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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White River Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man convicted of Abusive Sexual Contact was sentenced on December 19, 2018, by U.S. District Judge Roberto A. Lange.
Duane Mednansky, age 49, was sentenced to 14 months in federal prison, followed by 5 years of supervised release, a $3,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Mednansky was indicted by a federal grand jury on August 16, 2017. He pled guilty on September 24, 2018.
The conviction stemmed from an incident that occurred between May 1, 2013, and September 1, 2013, wherein Mednansky engaged in sexual contact with a teenage girl who was in his care.
This case was investigated by the Federal Bureau of Investigation, the South Dakota Attorney General’s Office Division of Criminal Investigation, the Mellette County Sheriff’s Office, and the Watertown Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Mednansky was immediately turned over to the custody of the U.S. Marshals Service.
Wayzata Man Sentenced for Role in Stock Manipulation SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DOUGLAS VAUGHN HOSKINS, 50, to 24 months of federal prison. HOSKINS was sentenced earlier today by Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. A federal jury convicted HOSKINS and RYAN RANDALL GILBERTSON, 42, of multiple counts of wire fraud, securities fraud, and conspiracy to commit securities fraud, on June 26, 2018, following an 11-day jury trial before Judge Schiltz.
GILBERTSON who was the founder of Dakota Plains Holdings, Inc., (“Dakota Plains”) was sentenced on December 11, 2018, to 144 months of federal prison.
Dakota Plains was a privately held company based in Wayzata, Minnesota that owned and operated a transloading facility in New Town, North Dakota. As proven in court, as part of the fraud scheme, GILBERTSON caused Dakota Plains to go public via a reverse merger with a company called Malibu Club Tan, which was a publicly traded shell company. GILBERTSON made it a secret condition of the reverse merger that HOSKINS, his friend and polo coach, be able to purchase the majority of the “float” of freely trading shares, which were the only shares that could trade publicly following the reverse merger. GILBERTSON then gave $30,000 to HOSKINS, who was deeply in debt and owed money to the IRS and other creditors, in order to purchase 50,000 shares of Dakota Plains stock at a price of $0.50 per share on March 23, 2012, the morning of the reverse merger.
On the first day of public trading, HOSKINS began selling his newly acquired shares for an inflated price of $12 per share at GILBERTSON’S direction, and continued to do so throughout the first 20 days of public trading following the reverse merger. Throughout that 20-day period, GILBERTSON, with the help of HOSKINS and others, manipulated the price of Dakota Plains stock to increase the average trading price to $11.30 per share. This inflated share price triggered a $32.8 million bonus payment to GILBERTSON and the other noteholders.
In the wake of the fraud scheme, HOSKINS was interviewed by the Securities and Exchange Commission (SEC) about his involvement in these stock sales. HOSKINS repeatedly lied under oath during the deposition, covering up both his and GILBERTSON’S involvement in the stock manipulation scheme. Among other things, HOSKINS claimed that he did not discuss the stock trades with any other individuals.
Ultimately, GILBERTSON made millions as a result of his stock manipulation scheme. HOSKINS made less money, but still pocketed more than $125,000 from his stock sales, much of which he used to purchase an Argentine polo pony.
“The expertise of our partners – the FBI, the U.S. Postal Inspection Service, and the Securities and Exchange Commission - brought to light a complex and detailed stock manipulation scheme, resulting in the convictions of Gilbertson and Hoskins,” said United States Attorney Erica H. MacDonald. “It is thanks to their tireless digging and collaboration that this case had a just outcome.”
This case is the result of an investigation conducted by the FBI and the United States Postal Inspection Service. United States Attorney MacDonald would also like to thank the Securities and Exchange Commission for their assistance on this matter.
This case was prosecuted by Assistant United States Attorneys Joseph H. Thompson, Kimberly A. Svendsen, and Melinda A. Williams.
The Criminal Docket Number for this case is: 17-cr-00066
Defendant Information:
DOUGLAS VAUGHN HOSKINS, 50
Wayzata, Minn.
Convicted:- Wire fraud, 2 counts
- Conspiracy to commit securities fraud, 1 count
- Securities fraud, 3 counts
Sentenced:
- 24 months imprisonment
- 1 year supervised release
- $15,135,360 in restitution (owed jointly with defendant Gilbertson)
RYAN RANDALL GILBERTSON, 42
Delano, Minn.
Convicted:
- Wire fraud, 14 counts
- Conspiracy to commit securities fraud, 1 count
- Securities fraud, 6 counts
Sentenced:
- 144 months imprisonment
- 2 years supervised release
- $2 million fine
- $15,135,360 in restitution (owed jointly with defendant Hoskins)
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Waterloo Felon Twice Convicted of Being a Felon in Possession of a Firearm Sentenced to Prison for Possessing AmmunitionRead the Press Release
A Waterloo felon who possessed 65 rounds of ammunition in a senior citizen home was sentenced December 18, 2018, to more than two years in federal prison.
Robert Donzell Luckie, age 20, from Waterloo, Iowa, received the prison term after an August 14, 2018 guilty plea to being a felon in possession of ammunition.
Evidence at detention and sentencing hearings showed that in March 2017, Luckie received a suspended sentence in state court for possessing a firearm as a felon. In April 2017, a law enforcement officer saw a Facebook photograph of defendant with a .40 caliber handgun, which he was trying to sell. Luckie further posted on Facebook that he had been smoking marijuana all day by “blowing woods.” Luckie’s state probation officer then conducted an unexpected home visit of Luckie’s residence, which was an apartment in a senior citizen home in Waterloo. During a search of Luckie’s room, officers found 65 rounds of .40 caliber ammunition and marijuana. A receipt for the ammunition then led law enforcement officers to a local sporting goods store, which provided law enforcement with a surveillance video that showed Luckie grabbing a box of .40 caliber ammunition and handing it to a woman who purchased the ammunition. Law enforcement ultimately apprehended Luckie in May 2017 in Chicago, Illinois, where he was found with a different gun and convicted of possessing a firearm as a felon.
Luckie was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Luckie was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. At the sentencing, Judge Reade found Luckie posed a high risk to reoffend in light of his strong desire to possess firearms and ammunition notwithstanding the fact he is a felon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Luckie is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Waterloo Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2036
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Wabasha County Brothers Charged with RobberyRead the Press Release
Erica H. MacDonald today announced the unsealing of a federal indictment charging LENNIE DWAYNE BROOKS, 33, RANDY LORENZO BROOKS, 23, and AUTUMN MARIE NICHOLS, 20, each with one count of robbery. [1]
As alleged in the indictment, LENNIE BROOKS, RANDY BROOKS, and NICHOLS stole approximately $50,000 in cash belonging to the Shaung Hur Asian Markets and as a result, caused the death of a robbery victim.
ATF and local law enforcement executed federal search warrants the morning of December 20, 2018. All three defendants are in custody and are scheduled to make their initial appearances today at 2:00 p.m. before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.
The defendants are charged with violating the Hobbs Act. The Hobbs Act prohibits actual or attempted robbery affecting interstate or foreign commerce “in any way or degree.”
This case is the result of a multi-jurisdictional investigation conducted by ATF, Eden Prairie Police Department, Steele County Sheriff’s Office, Woodbury Police Department, Cottage Grove Police Department, St. Paul Police Department, Minneapolis Police Department, Winona Police Department, Wabasha Police Department, Prior Lake Police Department, Southeast Minnesota Violent Crime Enforcement Team, St. Croix County Sheriff’s Office, Wabasha County Sheriff’s Office, Washington County Sheriff’s Office, Olmstead County Sheriff’s Office, and the Winona County Sheriff’s Office. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Assistant United States Attorney Jeffrey S. Paulsen is prosecuting the case.
Defendant Information:
LENNIE DWAYNE BROOKS, 33
Zumbro Falls, Minn.
Charges:
- Interference with Commerce by Robbery, 1 count
RANDY LORENZO BROOKS, 23
Wabasha, Minn.
Charges:
- Interference with Commerce by Robbery, 1 count
AUTUMN MARIE NICHOLS, 20
St. Paul, Minn.
Charges:
- Interference with Commerce by Robbery, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
United States Joins False Claims Act Lawsuit Against Wheeling Hospital, R & V Associates, and Ronald Violi Based on Improper Payments and Kickbacks to PhysiciansRead the Press Release
The United States has partially intervened in a lawsuit under the False Claims Act against Wheeling Hospital Inc. (Wheeling), R & V Associates Ltd. (R & V), and Ronald Violi in the U.S. District Court for the Western District of Pennsylvania, the Department of Justice announced today. The government intervened with respect to allegations that Wheeling, which is located in Wheeling, WV, violated the Stark Law and Anti-Kickback Statute, and that those violations were caused by R & V, Wheeling’s contracted management consultant, and Violi, Wheeling’s CEO.
The Stark Law prohibits a hospital from billing Medicare for services referred by physicians that have an improper financial relationship with the hospital. The Anti‑Kickback Statute, in relevant part, prohibits offering or paying anything of value to encourage the referral of items or services covered by federal healthcare programs. The United States alleges that Wheeling’s compensation to a number of employed and contracted physicians violated these statutory prohibitions because that compensation was based on the volume or value of the physicians’ referrals or was above fair market value.
“Improper financial arrangements between hospitals and physicians threaten patient safety because they can influence the type and amount of health care that is provided,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The department is committed to taking action to eliminate improper inducements that can corrupt the integrity of physician decision-making.”
“By bringing allegations of fraud to light, whistleblowers play an important role in protecting the integrity of our healthcare system.” said Scott W. Brady, U.S. Attorney for the Western District of Pennsylvania.
The lawsuit was initially filed in December 2017 by Louis Longo, who was previously employed as Wheeling’s Executive Vice President, under the whistleblower provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Office for the Western District of Pennsylvania, and the U.S. Department of Health and Human Services Office of Inspector General.
The case is captioned United States of America ex rel. Louis Longo v. Wheeling Hospital, Inc. et al., No. 17-cv-1654 (W.D. Pa.). The claims asserted against defendants are allegations only and there has been no determination of liability.
United States Joins False Claims Act Lawsuit Against Wheeling Hospital, R & V Associates, and Ronald Violi Based on Improper Payments and Kickbacks to PhysiciansRead the Press Release
PITTSBURGH – The United States has partially intervened in a lawsuit under the False Claims Act against Wheeling Hospital, Inc. ("Wheeling), R & V Associates, Ltd. ("R & V"), and Ronald Violi in the U.S. District Court for the Western District of Pennsylvania, United States Attorney Scott W. Brady announced today. The government intervened with respect to allegations that Wheeling, which is located in Wheeling, WV, violated the Stark Law and Anti-Kickback Statute, and that those violations were caused by R & V, Wheeling’s contracted management consultant, and Violi, Wheeling’s CEO.
The Stark Law prohibits a hospital from billing Medicare for services referred by physicians that have an improper financial relationship with the hospital. The Anti-Kickback Statute, in relevant part, prohibits offering or paying anything of value to encourage the referral of items or services covered by federal healthcare programs. The United States alleges that Wheeling’s compensation to a number of employed and contracted physicians violated these statutory prohibitions because that compensation was based on the volume or value of the physicians’ referrals and/or was above fair market value.
"Improper financial arrangements between hospitals and physicians threaten patient safety because they can influence the type and amount of health care that is provided," said Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division. "The department is committed to eliminating improper inducements that can corrupt the integrity of physician decision-making."
"By bringing allegations of fraud to light, whistleblowers play an important role in protecting the integrity of our healthcare system," said U.S. Attorney Brady.
The lawsuit initially was filed in December 2017 by Louis Longo, who was previously employed as Wheeling’s Executive Vice President, under the whistleblower provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, and is being handled by Assistant United States Attorney Colin J. Callahan and Department of Justice Trial Attorney Rohith Srinivas.
The case is captioned United States of America ex rel. Louis Longo v. Wheeling Hospital, Inc. et al., No. 17-cv-1654 (W.D. Pa.). The claims asserted against defendants are allegations only and there has been no determination of liability.
United States Files Complaint Seeking Forfeiture of Oil Painting Recovered by the FBI More Than 75 Years After Its Theft During the Second World WarRead the Press Release
WASHINGTON – The United States has filed a civil complaint seeking the forfeiture of an oil painting by Mikhail N. Panin that was recovered by the FBI decades after it was stolen during the Second World War. The United States intends to return the artwork to its rightful owner.
The announcement was made by U.S. Attorney for the District of Columbia Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
The artwork, “Secret Departure of Ivan the Terrible Before the Oprichina,” is an oil painting on canvas, measuring approximately 7.5 feet by 8.5 feet, created by Panin in 1911. It depicts Ivan the Terrible and his loyal adherents leaving secretly from the Kremlin for Alexandrovskya Sloboda.
The complaint was filed on Dec. 20, 2018, in the U.S. District Court for the District of Columbia and seeks forfeiture of the painting on the basis that it represents the proceeds of the interstate transportation of stolen property and possession of stolen goods.
“The recovery of this art looted during World War II reflects the commitment of this office to pursue justice for victims of crime here and abroad,” said U.S. Attorney Liu. “The looting of cultural heritage during World War II was tragic, and we are happy to be able to assist in the efforts to return such items to their rightful owners.”
“As the FBI returns this painting to the Embassy of Ukraine in Washington, D.C., we do so with the purpose of preserving history,” said Assistant Director in Charge McNamara. “This piece of artwork is of significance not just for its monetary value, but for its place in the world of art and culture. The FBI continues to commit investigative resources to recover cultural property.”
According to the complaint, the painting was transferred from the St. Petersburg Academy of Arts in 1913 to the collection of Ekaterinoslav City Art Museum (today the Dnepropetrovsk Art Museum); was one of the 64 exhibits that comprised the first museum exposition in 1914; was exhibited at the permanent exhibition of the museum until 1941, and disappeared during the occupation of the city during the Second World War.
The painting subsequently surfaced in the United States. In 1962, it conveyed with the sale of a house in Ridgefield, Connecticut, by a Swiss citizen who emigrated to the United States in 1946. After the sale, the prior owners of the home located a certificate in the attic of the house commemorating the original homeowner’s service in the Swiss Army during the Second World War. The original homeowner passed away in 1986.
In November 2017, the current homeowners attempted to consign the painting to an art gallery, but the gallery was notified by a Ukrainian art museum that the item had been stolen during the Second World War. The FBI obtained custody of the painting, and the U.S. Attorney’s Office commenced forfeiture proceedings.
The current homeowners have agreed to waive any claims to the painting. If no other claims are filed, the government plans to return the painting to the Embassy of Ukraine in Washington, D.C.
The lawsuit is captioned United States v. One Painting Entitled Secret Departure of Ivan the Terrible Before the Oprichina.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Zia M. Faruqui, Arvind Lal, Brian P. Hudak, and Supervisory Paralegal Specialist Elizabeth Swienc, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government. Assistance was also provided by Assistant U.S. Attorney Karen Taylor of the U.S. Attorney’s Office for the Eastern District of Virginia.
Two Men Charged in Eastern Connecticut Drug Trafficking OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, United States Attorney for the District of Connecticut, today announced that on December 18, 2018, a federal grand jury in Hartford returned a five-count superseding indictment charging CARLOS DELGADO, also known as “Los,” 49, of Mansfield, and LUIS ALAMO, 42, of Willimantic, with narcotics trafficking and firearm offenses.
As alleged in court documents and statements made in court, earlier this year the DEA Hartford Task Force, Willimantic Police Department and Connecticut State Police began investigating an eastern Connecticut drug trafficking organization headed by Delgado. The investigation revealed that Delgado was having kilogram quantities of cocaine shipped through the U.S. Mail from Puerto Rico to various locations in Eastern Connecticut. He distributed the drugs with the assistance of Alamo and others, and mailed cash proceeds from narcotics sales back to individuals in Puerto Rico.
During the investigation, investigators seized quantities of cocaine and heroin, five firearms, including an AK-15 rifle, and more than $140,000 in cash.
Delgado has been detained since his arrest on a federal criminal complaint on July 9, 2018.
Alamo was arrested yesterday and is released on a $50,000 bond.
The indictment charges Delgado and Alamo with conspiracy to possess with intent to distribute, and to distribute, cocaine. If convicted of this charge, based on the quantity of cocaine involved in the conspiracy, Delgado faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life in prison, and Alamo faces a maximum term of imprisonment of 20 years.
The indictment also charges Delgado with one count of possession with intent to distribute one kilogram or more of heroin, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; one count of possession of firearm by a previously convicted felon, which carries a maximum term of imprisonment of 10 years; one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive term of imprisonment of at least five years, and one count of money laundering, which carries a maximum term of imprisonment of 10 years.
This matter is being investigated by the DEA Hartford Task Force, Connecticut State Police, Willimantic Police Department, the Willimantic Police Department, U.S. Postal Inspection Service and Bureau of Alcohol, Tobacco, Firearms, and Explosives. The DEA Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Willimantic and Windsor Locks Police Departments, and the Food and Drug Administration.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Two Dominican Nationals Arrested for Drug TraffickingRead the Press Release
BOSTON – Two Dominican nationals were arrested yesterday and charged with heroin trafficking.
Angel Martinez-Peguero, 27, and his brother Alexander Martinez-Peguero, 38, both of whom resided in Lawrence, were arrested and charged by criminal complaint with conspiracy to distribute and to possess with intent to distribute controlled substances. Angel Martinez-Peguero was additionally charged with possession of a firearm in furtherance of a drug trafficking crime. They will appear in federal court in Boston this afternoon.
According to charging documents, on Dec. 20, 2018, investigators seized approximately one kilogram of suspected heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest.
The charge of conspiracy to distribute and to possess with intent to distribute controlled substances a sentence of no greater than 20 years in prison, a fine of $1 million, and at least three years of supervised release. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a minimum mandatory sentence of five years in prison to be served consecutive to any sentence imposed for the underlying drug trafficking crime. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Massachusetts State Police Superintendent Colonel Kerry Gilpin made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Twice-Convicted Felon Sentenced to 16 Months for Illegal Re-EntryRead the Press Release
UTICA, NEW YORK – Ronald Pineda-Carias, age 41, and a citizen of Honduras, was sentenced yesterday to 16 months in prison for illegally re-entering the United States as a felon.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Pineda-Carias pled guilty on October 18, 2018. On May 2, 2006, Pineda-Carias was convicted of felony cocaine possession in Miami, Florida, and was thereafter removed from the United States to Honduras. On November 4, 2011, he was convicted of illegally re-entering the United States in the United States District Court for the Western District of Pennsylvania, and was sentenced to time served. Pineda-Carias was again removed to Honduras. In all, Pineda-Carias has been removed to Honduras on 5 occasions.
On August 9, 2018, a Border Patrol Agent encountered Pineda-Carias in downtown Plattsburgh, New York. Pineda-Carias had a brief conversation with the agent, but then fled on foot and dove into the Saranac River in an effort to evade law enforcement. After a brief search, a Plattsburgh Police Officer discovered Pineda-Carias hiding in the bushes on the southwest bank of the river.
Following his term of imprisonment, Pineda-Carias will be transferred to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by the United States Border Patrol, with assistance from the Plattsburgh Police Department, and prosecuted by Assistant U.S. Attorney Douglas Collyer.
Tonawanda Man Who Led Police on A Foot Chase Arrested on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Schmidt, 20, of Tonawanda, NY, was arrested and charged by criminal complaint with possession with the intent to distribute marijuana, attempted possession with intent to distribute cocaine, and possession of a firearm in furtherance of narcotics trafficking. The charges carry a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, on November 16, 2018, Tonawanda police officers responded to a domestic disturbance at 652 Woodstock Avenue in Tonawanda. While on scene, officers received information that a male suspect, later identified as the defendant, had a gun. As officers began speaking with Schmidt, he took off running, leading officers on a chase. He was taken into custody as he attempted to jump a neighboring fence. The defendant resisted arrested. Officers recovered a loaded 9mm handgun in his front waist area.
Officers also recovered a backpack Schmidt was wearing which contained quantities of marijuana and suspected cocaine, and paraphernalia used for the processing and packaging of narcotics.
The defendant appeared before U.S. Magistrate Judge Michael J. Roemer today for a detention hearing and was released on electronic monitoring.
The complaint is the culmination of an investigation led by the Tonawanda Police Department, under the direction of Chief Jerome Uschold, III, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Ocala Men Sentenced for Heroin ConspiracyRead the Press Release
Ocala, FL – U.S. District Judge Roy B. Dalton, Jr. has sentenced Juan Pablo Malagon-Alvarez (41, Ocala) to 11 years and 4 months in federal prison for conspiracy to possess with the intent to distribute one kilogram or more of heroin and for possessing with the intent to distribute heroin. The court also sentenced Jose Lucio Mendoza Servin (36, Ocala) and Aurelio Gomez-Andrade (41, Ocala) to 10 years in federal prison each for their roles in the conspiracy. The court also sentenced each to 5 years of supervised release following their prison sentences, unless they are deported after release from prison.
On August 24, 2018, Malagon-Alvarez, Mendoza Servin, and Gomez-Andrade were found guilty following a federal jury trial in Ocala.
According to testimony and other evidence presented at trial, between June 2015 and December 14, 2017, Malagon-Alvarez distributed multiple ounces of heroin on a weekly or bi-monthly basis to two Ocala drug dealers. During several of these transactions, Mendoza Servin and Gomez-Andrade assisted Malagon-Alvarez. The drug deals typically occurred on horse farms in Ocala. One cooperating witness obtained 49 grams of heroin from Malagon-Alvarez on June 16, 2017.
The case was investigated by the Gainesville resident office of the Drug Enforcement Administration, with assistance from the Ocala Police Department, the Marion County Sheriff’s Office, and the Marion County Unified Drug Enforcement Strike Team. It was prosecuted by Assistant United States Attorney Dale Campion.
Three Foreign Nationals Face up to Life Imprisonment for Drug Smuggling on the High SeasRead the Press Release
HOUSTON – The final defendant in a maritime smuggling venture involving nearly 1300 kilograms of cocaine has pleaded guilty, announced U.S. Attorney Ryan K. Patrick.
Herman Julio Cuenu Valencia, a 34-year-old Columbian national pleaded guilty today, while Ricardo Alberto Parraga Mendoza, a 31-year-old Ecuadoran national, and Jose Luis Landazuri Valdes, a 24-year-old Colombian national, entered their pleas in November. .
On July 3, 2018, while on routine patrol off the Pacific Coast of Colombia and Ecuador, the U.S. Coast Guard (USCG) Cutter Mohawk detected a 47-foot low profile go-fast boat 300 nautical miles northeast of the Galapagos Islands. USCG launched its small boat which approached and stopped the vessel. Officers boarded the boat and discovered three crewmen on board.
The vessel had no flag, no registration documents, no homeport name and no indicia of identification on the hull of the vessel. Parraga Mendoza identified himself as the captain of the boat.
Officers discovered 38 bales of cocaine weighing approximately 1,280 kilograms in the hold of the boat and five sophisticated satellite communication and global positioning devices.
The three crewmen were taken into custody and transported to Florida.
They were charged with conspiracy to possess with intent to distribute more than five kilograms of cocaine on a vessel in the high seas in violation of the Maritime Drug Law Enforcement Act and the Drug Trafficking Vessel Interdiction Act of 2008. This is the first such prosecution in the Southern District of Texas following a change in the law allowing any jurisdiction in the United States to prosecute such smugglers. The law gives the United States jurisdiction over vessels without nationality found on the high seas with contraband as Congress found that “trafficking in controlled substances aboard vessels is a serious international problem and is universally condemned… Such trafficking presents a specific threat to the security and societal well-being of the United States.”
All three defendants remain in custody pending their sentencing hearings. set for April 26, 2019, before U.S. District Judge Ewing Werlein. At that time, each defendant faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine.
The Drug Enforcement Administration and USCG conducted the investigation. Assistant U.S. Attorneys Edward Gallagher and Jimmy Leo are prosecuting the case.
Three Chicago-Area Men Plead Guilty to Robberies of Rockford-Area Cell Phone StoresRead the Press Release
ROCKFORD — Three Chicago-area men have pleaded guilty to the robberies of Rockford-area cell phone stores.
NARCELLUS J. TAYLOR JR., also known as “J.T.,” 23, of Chicago, HERMAN L. DOSS JR., 27, of Dolton, and MARIO J. ANDERSON, 25, of Riverdale, admitted to conspiring with each other to steal cellular telephones and computers from stores in Illinois, Wisconsin and Indiana. Anderson and Doss pleaded guilty today before U.S. District Judge Philip G. Reinhard, while Taylor pleaded guilty on Sept. 21, 2018. Taylor and Doss each pleaded guilty to one count of conspiracy to commit robbery, three counts of robbery by threatened force, and one count of using a firearm during a crime of violence, while Anderson pleaded guilty to one count of conspiracy to commit robbery, two counts of robbery by threatened force, and one count of using a firearm during a crime of violence.
According to written plea agreements, between Aug. 5, 2016, and Jan. 6, 2016, Taylor conspired with Anderson, Doss and others to rob certain cellular telephone and electronics stores. Taylor identified the stores and paid others, including Anderson and Doss, to commit the robberies at his direction. The men conducted surveillance and communicated with other individuals during the robberies. After the robberies were completed, Taylor took the stolen items to Chicago where he sold them. Taylor then determined the amount each defendant received from the proceeds based upon their roles in the robberies. Taylor admitted to conspiring to commit eight robberies, five of which Doss participated in, and four of which Anderson participated in. Taylor admitted that the local robberies included one on Dec. 2, 2016, of a Best Buy in DeKalb, and two with Doss and Anderson at the Simply Mac store in Cherry Valley, on Dec. 16, 2016, and Jan. 6, 2017. The three defendants admitted to using firearms during the Jan. 6, 2017, robbery.
Each count of robbery carries a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000. Using a firearm during a crime of violence carries a maximum sentence of life imprisonment, with a mandatory minimum sentence of 7 years and a term of supervised release of up to five years, which is required to be consecutive to any other sentence imposed, as well as a fine of up to $250,000. The actual sentence for each defendant will be determined by the United States District Court, guided by the Sentencing Guidelines.
Sentencing for Anderson is scheduled for May 13, 2019, at 9:00 a.m. Sentencing for Doss is scheduled for May 13, 2019, at 10:30 a.m.
The guilty pleas were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The Illinois State Police, Cherry Valley Police Department, Rockford Police Department, DeKalb Police Department, Burbank Police Department, Crestwood Police Department, Kenosha (Wisc.) Police Department, and Valparaiso (Ind.) Police Department also assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Texas Couple Sentenced to over 21 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Gulfport, Miss. – Alfonso Fonty Jaimes, 37, and his wife, Maria Teresa Duarte Godinez, 29, both of Bastrop, Texas, were each sentenced yesterday by Senior U.S. District Judge Louis Guirola, Jr. to 262 months in federal prison, followed by 5 years of supervised release, for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
Jaimes was also ordered to pay a $25,000 fine and Godinez was ordered to pay a $7,500 fine. Jaimes pled guilty before Judge Guirola on August 1, 2018 and Godinez pled guilty on July 26, 2018.
On December 19, 2016, Tiffany Snodgrass was arrested following a traffic stop in Jackson County, Mississippi, in which she was found to be in possession of 6 kilograms of methamphetamine. Following her arrest, she was interviewed by the FBI Pascagoula Safe Streets Task Force. Snodgrass admitted to being a courier for a drug trafficking organization that operated out of Texas. Snodgrass admitted to making the drug shipments for a Hispanic female she knew as "Tere," (later identified as Godinez) and a Hispanic male she knew as "Tere’s husband" (later identified as Jaimes). Snodgrass admitted to having made approximately 25 total methamphetamine trafficking trips in for Godinez and Jaimes and she was paid approximately $1,500 to $3,000 in cash for each trip.
During the course of the investigation, FBI agents searched Snodgrass’s cell phone which revealed phone numbers for "Tere2" and "Tere husband." Cell phone subscriber information revealed that "Tere husband" was Jaimes. Agents were able to determine that several vehicles were co-registered to Jaimes and Godinez. Photo line-ups of Jaimes and Godinez were shown to Snodgrass and she positively identified the couple as her sources of supply for methamphetamine.
Snodgrass pled guilty to conspiracy to possess with intent to distribute methamphetamine, and was sentenced on June 7, 2017, to serve 270 months in federal prison.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Shundral H. Cole.
Talking Rock man indicted for producing child pornographyRead the Press Release
GAINESVILLE, Ga. - Michael Lewis Bush has been arraigned on federal charges of producing, receiving, and possessing child pornography. The defendant had thousands of images of children, including some he allegedly took himself.
"This defendant allegedly produced and collected images portraying the sexual exploitation and abuse of young children,” said U.S. Attorney Byung J. “BJay” Pak. “It is essential that we target and remove from the community those individuals who pose such a great threat to our district.”
“Individuals who produce child pornography steal the innocence of children and re-victimize them each time the evidence of their exploitation is shared online,” said ICE Homeland Security Investigations Atlanta Special Agent in Charge Nick Annan. "This case shows HSI is actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce and possess them.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Federal agents determined that Michael Bush purchased child pornography online on multiple occasions between 2015 and 2018. Those agents executed a search warrant at Bush's home in August 2018 and found multiple digital devices containing thousands of images and videos of child pornography. They also discovered that Bush took a series of pornographic photographs of an eleven-year-old child and saved them to his computer where he retained them for years.
Michael Lewis Bush, 49, of Talking Rock, Georgia, was arraigned before U.S. Magistrate Judge J. Clay Fuller. Bush was indicted by a federal grand jury on November 14, 2018. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Jill E. Steinberg, Deputy Chief of the Criminal Division, is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Stilwell Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Waylon Lee Williams, age 37, of Stilwell, Oklahoma, entered a guilty plea to Drug Conspiracy in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on a date unknown to the Grand Jury in 2014, and continuing until on or about January 29, 2018, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally combine, conspire, confederate and agree, with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: possession with intent to distribute and distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charges arose as a result of an investigation by the Drug Enforcement Administration (“DEA”), the Oklahoma Bureau of Narcotics (“OBN”), the National Guard Counterdrug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the U.S. Marshals Service, the Cherokee Nation Marshal Service, the Oklahoma Highway Patrol, the District 27 District Attorney’s Drug Task Force, the Adair County Sheriff’s Office, the Tulsa County Sheriff’s Office, the Stilwell Police Department, the Broken Arrow Police Department, and the Tulsa Police Department.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Settlement Agreement Announced in Medicare and Medicaid InvestigationRead the Press Release
PROVIDENCE – Professional Ambulance, LLC, a local provider of ambulance and medical transportation services based in Providence, will pay $300,000 to resolve allegations that it improperly billed the Medicare and Medicaid programs for medically unnecessary ambulance runs, according to a Civil Settlement Agreement signed today.
An investigation by the United States Attorney’s Office, the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), and the FBI determined that between 2012 and 2015, Professional Ambulance billed the Medicare and Medicaid programs for the cost of transporting patients who were not eligible to travel by ambulance because they were sufficiently mobile. The investigation specifically focused on dialysis patients, who require regular trips to and from a treatment facility to receive care, but who, the United States alleged, did not require ambulance transport, or whose condition was not accurately documented in reports.
Today’s settlement resolves claims by the United States and the State of Rhode Island under the federal and state False Claims Acts, as well as various other civil theories of liability. $250,000 of the recovery will go to the federal government on behalf of the Medicare program; the remaining $50,000 will be returned to Medicaid, which is jointly administered by the federal government and the State of Rhode Island. The matter was settled prior to litigation, without an admission of liability or wrongdoing.
The settlement agreement is announced by United States Attorney Stephen G. Dambruch, Phillip Coyne, Special Agent in Charge of HHS-OIG - New England Region, and Special Agent in Charge of the Boston Division of the FBI Harold H. Shaw.
The case was handled by Assistant U.S. Attorney Zachary A. Cunha.
United States Attorney Stephen G. Dambruch acknowledges and thanks the Rhode Island Department of Attorney General’s Medicaid Fraud Control and Patient Abuse Unit for their assistance in the investigation of this matter.
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Schuylkill County Man Guilty of Participating in A Heroin and Methamphetamine Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Marquese Whitted, age 33, Schuylkill County, Pennsylvania, pleaded guilty before Senior U.S. District Court Judge A. Richard Caputo, to participating in a conspiracy to distribute heroin and methamphetamine in Schuylkill and Berks Counties.
According to United States Attorney David J. Freed, Whitted admitted to conspiring with others to distribute more than 100 grams of heroin (which is equivalent to more than 4,000 retail bags of heroin) and more than 50 grams of methamphetamine during April through October of 2016.
Whitted was indicted by a federal grand jury in January 2017, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of five years’ imprisonment for the offense. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Rosebud Man Indicted on Assault and Child Abuse ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation and Child Abuse.
Edward Leon Wilson, a/k/a Eddie Wilson, age 36, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 18, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 16, 2018, Wilson did unlawfully assault an intimate partner and dating partner, by strangulation and suffocation. The Indictment further alleges Wilson did abuse, expose, torture, torment, and cruelly punish a minor child.
The charges are merely accusations and Wilson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Wilson was released on bond pending trial. A trial date has not been set.
Romanian Man Arraigned for Capital Region ATM Skimming Conspiracy Following Extradition from ColombiaRead the Press Release
ALBANY, NEW YORK - Gheorghe Cirstea, age 31, and a citizen of Romania, was arraigned today on charges that he worked with others to steal account information and personal identification numbers (PINs) from people using ATMs in the Capital Region in 2015.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
On March 30, 2018, Cirstea was arrested while travelling through Bogota, Colombia. On October 19, 2018, he was formally extradited by Colombian authorities to the United States. Cirstea was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending trial.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The indictment charges Cirstea and Ilie Sitariu with conspiring to steal bank customers’ account information and PINs by using skimming devices that they secretly installed on bank ATMs in the Capital Region from August to October 2015.
Sitariu, who was arrested in September 2015, pled guilty on November 22, 2016, and was sentenced to 48 months in prison by Senior United States District Judge Lawrence E. Kahn on May 10, 2017.
If convicted, Cirstea faces up to 5 years in prison, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, U.S. Secret Service, and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon. Cirstea was extradited to the United States with the assistance of the Department of Justice Office of International Affairs.
Rockford Man Sentenced to More Than 9 Years in Federal Prison for Armed RobberyRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to a total of 114 months in federal prison for the robbery of the U.S. Cellular store, 6430 E. State St., in Rockford, on June 1, 2016, and for using a firearm during a violent crime.
RICKY WOODS, 23, was sentenced to 30 months’ imprisonment for the robbery, and was ordered to serve a consecutive term of 84 months’ imprisonment for using a firearm during a crime of violence. After serving his sentence in federal prison, Woods will be placed on three years of supervised release. Woods pleaded guilty to the charges on Sept. 27, 2018.
Also charged was McKINLEY HOARDE III, 23, of Rockford, who on July 9, 2018, pleaded guilty to the robbery and the gun charge. Hoarde was sentenced on Oct. 19, 2018, to 66 months’ imprisonment for the robbery, and was ordered to serve a consecutive term of 84 months’ imprisonment for using a firearm during a crime of violence. After serving his sentence in federal prison, Hoarde will be placed on five years of supervised release.
Both men admitted that after arriving at the U.S. Cellular store they pulled out and pointed their guns at the only employee at the store. One of them grabbed the employee by the shirt collar and pulled the employee to the back room of the store, where they ordered the employee to the ground. Hoarde and Woods then took cellular phones from the store and removed electrical equipment from the wall in an attempt to disable the security system, before running out of the store.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by ATF and the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
Ridgeview Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Ridgeview, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on December 17, 2018, by U.S. District Judge Roberto A. Lange.
William Fielder, Sr., age 55, was sentenced to 24 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fielder was indicted by a federal grand jury on June 19, 2018. He pled guilty on October 3, 2018.
The conviction stemmed from an incident on November 19, 2017, when Fielder assaulted an individual with a hatchet, with the intent to cause bodily harm.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Fielder was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Internet CrimeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on December 17, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Alan Campbell, a/k/a Alex Nolan, age 28, was sentenced to 10 years in federal prison, followed by10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Campbell also will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Campbell was charged on February 21, 2018. The conviction stems from Campbell exchanging child pornography with others on Facebook in January 2016 at Rapid City.
The case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Campbell was immediately turned over to the custody of the U.S. Marshals Service.
Pittsford Man Pleads Guilty for His Role in Multi-Million Mortgage Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kevin Morgan, 42, of Pittsford, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit bank fraud, which carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorneys John D. Fabian and Douglas A.C. Penrose, who are handling the case, stated that between March 2011 and June 2017, the defendant, along with co-defendants Todd Morgan, Frank Giacobbe, Patrick Ogiony, and others, conspired to defraud financial institutions, including UBS Securities LLC, Arbor Commercial Mortgage LLC, and Berkadia Commercial Mortgage, LLC.
Kevin Morgan was employed as a Vice President at Morgan Management, LLC, a real estate management company that managed more than 100 multi-family properties. Todd Morgan also was employed by Morgan Management as a Project Manager. Kevin and Todd Morgan worked with Frank Giacobbe, who owned and operated Aurora Capital Advisors, LLC, a mortgage brokerage company, and Patrick Ogiony, an Aurora employee, to secure financing for properties managed by Morgan Management or certain principals of Morgan Management.
Kevin Morgan and his co-defendants provided false information to financial institutions and government sponsored enterprises that overstated incomes of properties managed by Morgan Management or certain principals of Morgan Management. This resulted in the financial institutions issuing loans for larger amounts than the financial institutions would have authorized had they been provided with truthful information.
The defendants misled the financial institutions regarding the occupancy of properties. For example, Kevin Morgan: conspired to provide false rent rolls to lenders and appraisers on a variety of dates, overstating either the number of renters in a property and/or the rent paid by occupants; conspired to provide false and inflated income statements for the properties; and worked with others to deceive inspectors into believing that unoccupied apartments were, in fact, occupied.
In one such instance, Kevin Morgan and his co-defendants provided false information to Berkadia Commercial Mortgage, LLC, in connection with Rochester Village Apartments at Park Place, a multi-family residential community owned by certain Morgan Management principals. The false information included inflated income derived from storage unit rentals, inflated reports of rental income, and reporting apartment units as occupied before certificates of occupancy were obtained for those units.
In addition, Kevin Morgan and his co-defendants made misrepresentations to conceal from the lending financial institutions that Morgan Management used a portion of the loan proceeds for purposes other than that disclosed in the loan application. Loan funding was used to maintain or improve other properties managed by Morgan Management, and to satisfy debts associated with other properties managed by Morgan Management. For example, the defendants included a fictitious $2.5 million debt in a loan application purportedly owed to a Morgan Management controlled entity and created a fabricated payoff letter for that debt to increase the amount of the loan in connection with a property known as Autumn Ridge.
“History has shown us the havoc that can be wrought when fraud takes place in the mortgage industry,” noted U.S. Attorney Kennedy. “This investigation, and today’s plea, protect that industry from fraud and those who invest in securities which are backed by mortgages.”
“From day one, our investigation has focused on protecting the residential and commercial financing industry,” said Gary Loeffert, Special Agent-in-Charge of the FBI’s Buffalo Division. “With Kevin Morgan's plea today, we have advanced our efforts to safeguard the tens of thousands of investors who own mortgage-backed securities.”
Robert Manchak, Acting Special Agent in Charge for the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General, said, “The financing of multifamily loans is a significant segment of Fannie Mae’s and Freddie Mac’s portfolio. As our commitment to this case demonstrates, FHFA-OIG will work with our partners in law enforcement to investigate and hold accountable those who subject the entities regulated by FHFA to fraud, waste, or abuse.”
Charges are pending against defendants Frank Giacobbe, Patrick Ogiony, and Todd Morgan. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Robert Manchak, Northeast Region.
Sentencing will be scheduled at a later date before Judge Wolford.
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Pharmaceutical Sales Rep Pleads Guilty to Defrauding Insurance Companies Out of Millions of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Scott Trapp, 50, of Clarence, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to commit health care fraud. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that the defendant began working as a pharmaceutical sales representative for various pharmaceutical companies in 1996. In 2014, Trapp began marketing “compounded medications,” such as pain patches, pain creams, and scar creams. “Compounded medications” are medications created when a licensed pharmacist, a licensed physician, or a person working under the supervision of a licensed pharmacist, combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient.
The compounded medications marketed by the defendant, and his associates, were not tailored to the needs of individual patients. Instead, the medications were tailored to contain ingredients that carried high reimbursement rates from health insurers. Formulations of the medications were modified at times to permit reimbursement from health insurance companies and/or to maximize reimbursement rates. For example, a one month supply of one of the compounded pain creams marketed by Trapp carried a reimbursement rate of $22,000.
Unlike typical pharmaceutical sales representatives who market prescription drugs to physicians, the defendant, and his associates, identified patients whose health insurance covered the medications, and convinced the patients to agree to receive the medications.
In furtherance of the conspiracy, Trapp asked a friend, who was a physician, to sign blank, 12 month prescriptions for compounded medications, in the names of the defendant and his wife. Trapp then duplicated the prescriptions and substituted names of different patients for his own name, allowing for additional prescriptions for compounded medications to be filled without the physician knowledge.
Trapp also recruited, supervised, and compensated others to market the compounded pharmaceuticals. One of those individuals then recruited others to be part of the marketing scheme. The defendant received commission payments of approximately 20% of the reimbursement rate of each prescription he personally marketed which was approved and filled. Trapp also received commission payments of approximately 5% of each prescription marketed and filled by those he supervised, and by the individuals working for those people he supervised.
In total, between 2014 and December 2016, the health care benefit programs provided by Blue Cross Blue Shield (BCBS), the Verizon Medical Expense Plan for New York and New England Associates, National Grid USA, and Sunovion Pharma, paid approximately $5,821,331, for compounded prescriptions fraudulently filled, resulting in losses of: $7,352 to BCBS; $3,601,179 to the Verizon Medical Expense Plan for New York and New England Associates; $1,992,354 to National Grid USA; and $220,445 to Sunovion Pharma.
Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special Agent-in-Charge, New York Region; the U.S. Food and Drug Administration, Office of Criminal Investigations, under the direction of Jeffrey Ebersole, Special Agent-in-Charge New York Field Office; the New York State Financial Services Department, under the direction of Superintendent Maria T. Vullo; and the Defense Criminal Investigative Service, under the direction of Special Agent-in-Charge Leigh-Alistar Barzey.
Sentencing is scheduled for May 1, 2019, at 9:00 a.m. before Judge Vilardo.
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Pawtucket Resident Sentenced for Concealing Assets from Bankruptcy CourtRead the Press Release
PROVIDENCE - A Pawtucket resident was sentenced today to two years probation, the first six months to be served with electronic monitoring and an overnight curfew, for concealing $18,000 when petitioning the U.S. Bankruptcy Court for bankruptcy protection.
At sentencing, Marcus A. Collier, 47, was also ordered by U.S. District Court Chief Judge William E. Smith to perform 100 hours of community service and to pay a fine of $4,000.
At the time of his guilty plea on April 27, 2018, Collier admitted to the Court that on March 18, 2016, knowing he was facing a garnishment of $18,000 in savings by a creditor, he purposefully withdrew the cash from his bank account, and filed a bankruptcy petition, failing to disclose the existence of the $18,000 in cash and thereby concealing those assets.
Collier’s sentence is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and William Harrington, U.S. Trustee for Rhode Island, Massachusetts, Maine, and New Hampshire.
The case was prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the FBI, with the assistance of the U.S. Trustee.
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Pasco Woman Pleads Guilty to Cyberstalking and Making Threats OnlineRead the Press Release
Tampa, Florida– United States Attorney Maria Chapa Lopez announces that Tammy Marie Steffen, (36, Holiday) has pleaded guilty to one count of cyberstalking and one count of sending threatening communications online. Steffen faces a maximum penalty of five years in federal prison for each count. A sentencing hearing has not yet been set.
According to the
plea agreement , from at least August 2016 and continuing through July 2018, Steffen engaged in a course of conduct with the intent to harass or intimidate six victims. She cyberstalked, harassed, and threatened several of her former colleagues and associates through repeated emails, phone calls, text messages, and social media messages, from numerous phone numbers and accounts. To date, the FBI has identified at least 369 Instagram accounts and 18 email accounts that Steffen created and used to cyberstalk, harass, and threaten her victims.This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Rachel K. Jones and Lisa M. Thelwell.