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21 February 2019
St. Peters Woman Pleads Guilty to $231,000 Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A St. Peters, Mo., woman pleaded guilty in federal court today to a fraud scheme in which she received more than $231,000 in disability payments intended for her mother, who died nearly 50 years ago.
Marsha Gail Coy, 68, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to a federal information that charges her with one count of bank fraud.
Coy’s mother was an employee of the Kirkwood, Mo., R-VII School District until she retired with the Public School Retirement Systems of Missouri (PSRS) in 1968. PSRS is a non-Social Security contributory system that provides retirement, disability and survivor benefits. Although Coy’s mother died on Sept. 23, 1969, PSRS unwittingly continued to make disability benefit payments into her bank accounts. PSRS made 584 disability benefit payments totaling $382,933 before learning on May 1, 2018, that she had died. Coy’s father was placed in a long-term care facility in April 1996 and resided there until the last few days prior to his death in 1999.
By pleading guilty today, Coy admitted that she engaged in a fraud scheme from April 1996 to May 1, 2018, to steal from PSRS by obtaining benefits to which she was not entitled, and to use the money for her own benefit. Under the terms of today’s plea agreement, Coy must forfeit to the government $231,148, which is the amount of disability benefits paid by PSRS after April 1, 1996.
Under federal statutes, Coy is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI.
St. Louis Man Indicted on Additional Federal Charge of Drug Distribution Resulting in DeathRead the Press Release
St. Louis, MO –Antonio Adrian Minnis, Jr., 26, of St. Louis, MO, was charged today in a superseding indictment with felony charges of being a felon in possession of a firearm and distributing a controlled substance which resulted in the death of another. Minnis was originally charged with the federal gun crime in January 2019. Today’s superseding indictment added the federal drug charge.
According to the superseding indictment and court documents, Minnis was responsible for distributing fentanyl that caused the death of another individual on or about July 18, 2018. Then, on September 16, 2018, Minnis possessed a Glock 19 nine-millimeter semi-automatic pistol despite the fact that Minnis had been previously convicted of a felony crime.
Following the return of today’s indictment, United States Attorney Jeff Jensen commended law enforcement’s continued investigation into Minnis’ criminal activity. “Today’s charge is another example of this Office’s commitment to combating the opioid epidemic that is taking far too many lives far too often. Just because a person is indicted does not mean that the investigation stops. That was certainly the case here.”
If convicted, the charge of felon in possession of a firearm carries a maximum penalty of 10 years in prison and a $250,000 fine. The drug distribution charge carries a term of imprisonment of not less than 20 years and not more than life with a fine of not more than $1 million dollars or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Saint Louis County Police Department.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sons of Joaquin Guzman Loera Aka “El Chapo” Charged with Drug TraffickingRead the Press Release
An indictment against Joaquin Guzman Lopez and Ovidio Guzman Lopez, charging them with a conspiracy to distribute cocaine, methamphetamine, and marijuana for importation into the United States was unsealed last week. The Guzman Lopez brothers, believed to currently reside in Mexico, are the sons of Joaquin Guzman Loera, aka “El Chapo,” who was convicted by a jury in the Eastern District of New York for his role as the leader of the Sinaloa Cartel.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Arizona Field Office made the announcement.
Joaquin Guzman Lopez, 34, and Ovidio Guzman Lopez, 28, are charged in a one-count indictment alleging that from in or around April 2008, through April 2018, they conspired to distribute cocaine, methamphetamine, and marijuana from Mexico and elsewhere for importation into the United States. This case is assigned to U.S. District Judge Rudolph Contreras.
The case was investigated by HSI. This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle, and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Anthony Aminoff and Anthony Nardozzi of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) are prosecuting the case.
Sex Trafficking Ring Leader SentencedRead 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 Feng Yang Chen, 43, of Flushing, NY, who was convicted of conspiracy to violate the Mann Act and the Travel Act related to the operation of an interstate prostitution business and using the internet to promote prostitution, was sentenced to serve 57 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that between March 2011 and March 2016, Chen operated a multi-state prostitution organization. The defendant was the leader of the organization – she told the victim sex workers how much to charge, what sex acts to provide, and where they had to work. Chen actively advertised the women on Backpage.com and operated a call center from her home in Flushing, Queens that scheduled meetings between prostitutes and their clients. The Government identified more than 6,000 Backpage advertisements that led to encounters with prostitutes in multiple states including New York, Connecticut, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, and Texas. Some of the commercial sex acts took place in Tonawanda, NY and Henrietta, NY.
The defendant, who worked with co-defendants Chengqi Li and LiangLiang Guo, victimized at least 12 individuals who traveled state to state to engage in prostitution in various hotels. Chen recruited the victim women in China and used threats of violence and deportation against the victims and their families to force participation. One victim indicated that the defendant forced her to have commercial sex with rapists and made her work while she was menstruating and ill. After another victim was badly assaulted by a client, Chen forced the victim to return to work immediately, showing no compassion for her physical and emotional injuries.
“The conduct by the defendant amounted to treating her sex workers as modern day slaves,” noted U.S. Attorney Kennedy. “She had the victims sell their bodies—robbing them of their dignity—in order that she might enrich herself. Such heinous behavior bought Chen the one thing she truly earned—a significant prison sentence.”
“Many people are unaware that human trafficking occurs and this tragic crime usually goes unnoticed in the United States,” said HSI Special Agent-in-Charge Kevin Kelly. “While we can't erase the suffering these women experienced, we can aggressively investigate and prosecute those responsible. HSI and our partners will continue to send a powerful warning that consequences await those engaged in these heinous acts.”
The defendant made more than $2,000,000 each year from the prostitution business. The Court has ordered the forfeiture of approximately $450,000 in proceeds from the illegal prostitution activities; proceeds from the sale of two properties located in Flushing, NY; a 2012 Porsche Cayenne; as well as multiple cellular telephones, computers, and iPads utilized during the prostitution conspiracy. In addition, Chen was ordered to pay the victims more than $290,000 in restitution.
At sentencing, the Court noted the serious nature of the offense and the defendant’s financial motivation. The Court also noted that other individuals who worked for Chen were prosecuted and are currently in jail. Defendants Li and Guo were previously convicted, Li was sentenced to serve 21 months in prison, and Guo was sentenced to serve six months in prison.
Today’s sentencing is the result of an investigation by the U.S. Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III; the New York Police Department, under the direction of Chief James P. O’Neill; the South Portland, Maine Police Department, under the direction of Chief Edward Googins; and the Fairview Township Police Department, under the direction of Chief Jason C. Loper.
Seven Defendants Sentenced to over 39 Years Combined for Methamphetamine Trafficking in Fort Smith, Arkansas AreaRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that seven individuals were sentenced by the United States District Court for their roles in a methamphetamine trafficking ring, which operated in the Fort Smith, Arkansas area. The Honorable P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, on June 5, 2018, a federal grand jury returned a sixteen (16) count Indictment against eight (8) individuals in the Fort Smith, Arkansas area for activities in a large-scale drug trafficking conspiracy. This drug trafficking ring was responsible for the distribution of multiple kilograms of methamphetamine dating back as far as early 2015.
Defendants in this conspiracy received the following sentences:
Brian Christopher Jones, age 38, of Fort Smith, Arkansas was sentenced yesterday to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Jones was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Tina Renee Branson, age 53, of Winslow, Arkansas was sentenced yesterday to 24 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Branson was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Christopher Mitchell Harbour, age 42, of Fort Smith, Arkansas was sentenced yesterday to 46 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Harbour was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
Amber Dawn Boursh, age 37, of Mountainburg, Arkansas was sentenced today to 24 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Boursh was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Belinda Marvelle McBay, age 47, of Fort Smith, Arkansas was sentenced today to 51 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. McBay was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
April Jo Thompson, age 35, of Camden, Arkansas was sentenced today to 41 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Thompson was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
Jimmy Franklin Fore, age 57, of Paris, Arkansas was sentenced today to 51 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine and Felon in Possession of a Firearm to run concurrently. Fore was indicted in the Western District of Arkansas in June 2018 and plead guilty in July 2018.
An eighth co-defendant on the same Indictment, Dylan Dempsey, entered a plea of guilty to one (1) count of Conspiracy to Distribute Methamphetamine on February 20, 2019 and will be sentenced at a later date.
This case was investigated by the Drug Enforcement Administration, the 12th Judicial Drug Task Force, the 21st Judicial Drug Task Force, the Crawford County Sheriff’s Office, the Sebastian County Sheriff’s Office, the Fort Smith Police Department, the Van Buren Police Department and the Arkansas National Guard Counter Drug. Assistant United States Attorney’s Candace Taylor and Aaron Jennen is prosecuting the case for the Western District of Arkansas.
Settlement with City of Holyoke Will Address Pollution in Connecticut RiverRead the Press Release
BOSTON – The City of Holyoke has entered into a proposed consent decree with federal and state enforcement authorities agreeing to take critical remedial action to prevent future sewage discharges into the Connecticut River from the City’s sewer collection system.
The consent decree, filed today in federal court, is the result of an enforcement action brought by the Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), and the Massachusetts Attorney General’s Office, on behalf of the Massachusetts Department of Environmental Protection (MassDEP). According to complaints filed with the consent decree, Holyoke allegedly discharged pollutants into the Connecticut River in violation of its wastewater permits intended to limit combined sewer overflow (CSO) discharges to the Connecticut River from the City’s collection system and failed to properly operate and maintain its sewer system.
“By entering into this consent decree, Holyoke will take important and necessary steps to prevent pollutants from entering the Connecticut River,” said United States Attorney Andrew E. Lelling. “This resolution will result in cleaner discharges from the City’s sewer system and a healthier environment for area communities.”
“This settlement will help us ensure that our businesses and families along the Connecticut River have access to clean and safe water,” Massachusetts Attorney General Maura Healey said. “We will continue to work with our partners to protect public health, our natural resources, and our economy.”
“This settlement is progress towards a cleaner Connecticut River and puts Holyoke on a path to improving its water infrastructure in a way that will substantially reduce pollution,” said EPA New England Acting Regional Administrator Deb Szaro. “EPA is committed to working with cities like Holyoke to find practical and cost-effective ways to improve infrastructure and to advance the healthy and clean iconic waterways that make New England so special.”
“The Long-term Control Plan to address CSOs is a significant step toward a cleaner Connecticut River,” said MassDEP Commissioner Martin Suuberg. “Upon submittal of Holyoke’s Long-term Control Plan, all Massachusetts communities discharging to the Connecticut River have either completely eliminated their combined sewer overflow (CSO) discharges or are subject to a final Long-term Control Plan to address the remaining CSOs.”
In addition to a wastewater treatment facility, Holyoke owns and operates a sewer collection system that services approximately 70 percent of the City, two-thirds of which carries both sewage and stormwater. Most of the time, the combined system transport all wastewater to the facility for treatment. However, during periods of heavy rain the wastewater volume can exceed the capacity of the sewer system or the treatment facility and the excess wastewater will discharge to the Connecticut River without treatment. CSO discharges contain raw sewage and are a major water pollution concern.
The complaints allege that from at least 2012, Holyoke discharged untreated pollutants from its sewer system in violation of its permits and both the federal Clean Water Act and the state Clean Waters Act. In 2015, for example, the City reported discharging 133 million gallons of untreated effluent during wet weather, and during a 2012 inspection, EPA identified 40 potential overflows in dry weather. The complaints also allege that the City periodically discharges sewage and other pollutants into the Connecticut River outside its sewer system, such as through manholes that flow to storm drains.
The proposed consent decree requires Holyoke to develop an enforceable, long-term plan to control discharges from the City’s sewer system by Dec. 31, 2019. Holyoke has already begun work on developing this plan and has submitted a scope of work, which EPA and MassDEP have approved. While the City had taken steps over the years to address its unlawful sewer discharges pursuant to a number of EPA-issued administrative orders, it remained in noncompliance with its permits and both the federal Clean Water Act and the state Clean Waters Act. Once the City submits the plan, the consent decree calls for the parties to negotiate what further steps the City must take regarding the discharges.
The consent decree does not assess a civil penalty against the City for its violations at this time. Holyoke, however, is subject to vigorous reporting requirements to ensure compliance with the terms of the consent decree. If the City fails to comply, it may be subject to penalties as high as $2,500 per each day of violation.
This settlement is part of EPA’s National Compliance Initiative to keep raw sewage and contaminated stormwater out of our nation’s waters. Raw sewage overflows and inadequately controlled stormwater discharges from municipal sewer systems introduce a variety of harmful pollutants, including disease causing organisms, metals and nutrients that threaten our communities’ water quality and can contribute to disease outbreaks, beach and shellfish bed closings, flooding, stream scouring, fishing advisories and basement backups of sewage. Read more about the initiative at: https://www.epa.gov/enforcement/national-compliance-initiative-keeping-raw-sewage-and-contaminated-stormwater-out-our.
The proposed consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at https://www.justice.gov/enrd/consent-decrees.
U.S. Attorney Lelling, Massachusetts Attorney General Healey, Acting EPA Regional Administrator Czaro, and MassDEP Commissioner Suuberg made the announcement today. The case is being handled by Assistant U.S. Attorney Brian M. LaMacchia of Lelling’s Civil Division and Assistant Attorney General I. Andrew Goldberg of Healey’s Environmental Protection Division.
San Antonio Area Pharmaceutical Sales Representative Pleads Guilty for Her Role in $8 Million Health Care Fraud SchemeRead the Press Release
In San Antonio this morning, 45-year-old former pharmaceutical representative Holly Blakely, of San Antonio, TX, pleaded guilty for her role in an $8 million health care fraud scheme that netted her over $1 million, announced U.S. Attorney John Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before Senior U.S. District Judge Fred Biery, Blakely pleaded guilty to one conspiracy to commit wire fraud, health care fraud, bribery, and paying kickbacks. Blakely faces up to five years in federal prison. She remains on bond pending sentencing scheduled for June 13, 2019, in San Antonio. Blakely was charged in a thirty-count indictment and had been scheduled to begin trial February 25, 2019.
As part of her plea, Blakely admitted her role in a scheme to defraud health care benefit programs by paying over $400,000 in kickbacks and bribes to health care providers that prescribed compounded medications to individuals who did not need the medications. Blakely and her co-conspirators attempted to disguise the kickbacks and bribes to health care professionals by writing fictitious and back-dated “consulting agreements.” In many instances, Blakely and her co-conspirators submitted prescriptions to compounding pharmacies for patients that had never seen a medical professional. Moreover, Blakely and her co-conspirators would occasionally forge the signature of a medical professional on prescriptions. Blakely admitted that she conspired with two compounding pharmacies that would submit claims for reimbursement to health care benefit programs, including TRICARE, for compounded medications based on the prescriptions. In exchange for her role in the conspiracy, the two compounding pharmacies paid Blakely approximately $1,147,885.14. From approximately February 2013 through December 2014, health care benefit programs reimbursed the two compounding pharmacies approximately $8,846,972.24 based on the claims submitted in connection with the compounded medications.
The FBI, together with the Defense Criminal Investigative Service, Drug Enforcement Administration--Diversion, U.S. Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, Texas Department of Public Safety, and the Office of Personnel Management—Office of Inspector General, investigated this case. Assistant United States Attorneys Sean Bryan O’Connell and Antonio Franco, Jr., are prosecuting this case on behalf of the Government.
Rosebud Man Indicted for Assault and Failure to Register as a Sex OffenderRead 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, Domestic Assault by an Habitual Offender, and Failure to Register as a Sex Offender.
Michael Yellow Eyes, age 36, was indicted on the Assault charges on October 16, 2018, and the Failure to Register charges on December 11, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2019, and pled not guilty to both Indictments.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Yellow Eyes was convicted of Abusive Sexual Contact in April 2017. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 1, 2018, and August 29, 2018, Yellow Eyes, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The Indictment charging Yellow Eyes for Assault by Strangulation and Suffocation and Domestic Assault by an Habitual Offender alleges that on September 20, 2018, Yellow Eyes unlawfully committed a domestic assault upon his spouse and intimate partner and that, at the time of the domestic assault, Yellow Eyes had at least two prior convictions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner. The Indictment further alleges that Yellow Eyes assaulted his spouse and intimate partner by strangulation and suffocation.
The charges are merely accusations and Yellow Eyes is presumed innocent until and unless proven guilty.
The investigations are being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the cases.
Yellow Eyes was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been scheduled for April 16, 2019.
Queens Man Sentenced to 15 Years’ Imprisonment for Producing Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Keith Liwanag was sentenced to 15 years’ imprisonment by United States District Judge Jack B. Weinstein following the defendant’s guilty plea in June 2018 to sexual exploitation of a child. Upon completion of his sentence, Liwanag must register as a sex offender.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, announced the sentence.
“This is a just sentence for a defendant who used technology to victimize vulnerable children half a world away,” stated United States Attorney Donoghue. “Protecting children from sexual exploitation will always be a priority of this Office.” Mr. Donoghue extended his grateful appreciation to INTERPOL’s Crimes Against Children Unit for its investigative work and assistance during the investigation.
“Liwanag paid others to victimize children for his own pleasure,” stated HSI Special Agent-in-Charge Melendez. “His use of women in the Philippines to exploit children for the production of child pornography is not just criminal, it’s evil. Because of the great work of law enforcement and the prosecutor’s office, he will now serve 15 years for his unfathomable acts, facing the full justice of his actions behind bars.”
Between September 2016 and October 2016, Liwanag used a Facebook account to direct women in the Philippines to engage in sexual acts with children in exchange for money, and to produce and send child pornography to him over Facebook’s private messaging service. During the government’s investigation, law enforcement seized over 50 recorded video conferences between Liwanag and women engaged in the sexual abuse of children over Facebook and Skype. The investigation revealed that Liwanag shared the videos he created online.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being prosecuted by Assistant United States Attorneys Tanya Hajjar and Erin Reid.
The Defendant: KEITH LIWANAG
Age: 27
Queens, New YorkProject Parkersburg Update: Two Parkersburg Residents Plead Guilty to Federal Methamphetamine ChargesRead the Press Release
CHARLESTON, W.Va. – Two Parkersburg residents arrested as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin -- pled guilty to conspiracy to distribute 50 grams or more of methamphetamine, announced United States Attorney Mike Stuart. Amy Rake, 38, and Edward Marks, 32, entered guilty pleas before United States District Judge Irene C. Berger. Stuart commended the investigative efforts of the FBI, the Parkersburg Police Department, the Dayton Ohio Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court, the seizure of 150 pounds of methamphetamine and 4 pounds of heroin.
“The Project Parkersburg takedown was the largest meth bust in the history of not only West Virginia but also Ohio,” said United States Attorney Mike Stuart. “Project Parkersburg was only the start of our efforts to remove drug dealers like Rake and Marks from the streets of Parkersburg and the surrounding area. Not only did our efforts rid the community of more than two dozen drug dealers, it prevented hundreds of pounds of methamphetamine and heroin from poisoning our families and our kids.”
Rake and Marks admitted that they had been part of a methamphetamine distribution ring operating in and around Parkersburg from at least February 2018 until they were arrested on September 20, 2018. The investigation identified Rakes and Marks as street level dealers supplied by local distributors being supplied by sources in Phoenix, Arizona. Both defendants admitted receiving methamphetamine in multiple ounce quantities at a time and selling it to local users and dealers.
Rakes and Marks were charged with 15 other defendants in a two-count federal indictment in October 2018. They each face 5 years to 40 years in federal prison when they are sentenced. Rake is scheduled to be sentenced on June 12, 2019, and Marks will be sentenced on June 26, 2019.
Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Ponder, Texas Man Pleads Guilty to Transportation of Stolen Vehicle, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Leon Smith II, age 28, of Ponder, Texas, entered a guilty plea to Transportation Of Stolen Vehicle, in violation of Title 18, United States Code, Sections 2312 and 2, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both; and to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 2, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about November 26, 2017, within the Eastern District of Oklahoma, the defendant, did unlawfully transport and cause to be transported in interstate commerce a stolen motor vehicle, that is a 2001 Dodge Ram pickup truck, VIN ending in 520331, from the State of Oklahoma to the State of Texas, knowing the same to be stolen.
The Indictment further alleges that on or about November 26, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to wit: One (1) Beretta Model A300 Outlander 12 gauge shotgun, serial number RU004247, and One (1) Remington Model Seven .22-250 caliber rifle, serial number 7857999, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Texas Department of Public Safety, the Oklahoma Department of Agriculture, and the Federal Bureau of Investigation.
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.
First Assistant United States Attorney Christopher Wilson represented the United States.
Police Officer Pleads Guilty to Robbing Two San Francisco BanksRead the Press Release
SAN FRANCISCO – San Francisco police officer Rain Olson Daugherty pleaded guilty today to robbing two San Francisco banks, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty plea was accepted by the Honorable William H. Orrick, United States District Judge.
According to the plea agreement, on November 29, 2018, Daugherty, 44, of San Francisco, entered a bank in the Sunset District of San Francisco and slid a note containing a demand for money across the counter. The teller gave Daugherty cash from her drawer. Then, two weeks later, on December 13, 2018, Daugherty robbed a bank on Clement Street in San Francisco. Again, he approached a bank teller and slid a note containing a demand for money across the counter. Again, the teller gave Daugherty cash from the drawer.
A federal grand jury indicted Daugherty on January 10, 2019, charging him with the above two bank robberies - two counts for each robbery, all in a violation of 18 U.S.C. § 2113(a). Pursuant to today’s plea agreement, Daugherty pleaded guilty to two counts of 18 U.S.C. § 2113(a), one for each bank robbery. If Daugherty complies with the plea agreement, the remaining two counts will be dismissed at sentencing.
Daugherty remains in custody pending sentencing. Judge Orrick scheduled Daugherty’s sentencing hearing for May 9, 2019. Daugherty faces a maximum statutory penalty of 20 years in prison for each count. Further, additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Ajay Krishnamurthy with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the FBI with assistance from the San Francisco Police Department.
Pascagoula Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Gulfport, Miss. – Clynn Partee, 46, of Pascagoula, Mississippi, was sentenced today by U.S. District Judge Louis Guirola, Jr. to a term of 21 months in federal prison, followed by 5 years of supervised release for failure to register as a sex offender, announced U.S. Attorney Mike Hurst. Partee was also ordered to pay a $2,100 fine. He entered a guilty plea to the charge on November 28, 2018 before Judge Guirola.
In 2006, Partee was convicted in the Circuit Court of Cook County, Illinois, of Predatory Criminal Sexual Assault against a 12-year old female victim. He was sentenced to eight years with the Illinois Department of Corrections and deemed a Tier III Sex Offender with a lifetime registration requirement. After he was released from custody in Illinois, Partee moved to Mississippi in 2015. He did not register as required when he departed Illinois, and he did not register within the required time of his arrival in Mississippi.
In September 2018, Pascagoula Police officers responded to a disturbance call at a hotel in Pascagoula and encountered Partee. While Partee was not arrested during that encounter, a National Criminal Information Center database check was conducted regarding him. It was brought to the attention of the Jackson County Sheriff’s Office that Partee was a convicted sex offender and that he had been listed as a non-compliant sex offender in Illinois. The Sheriff's Office contacted the U.S. Marshals Service, which conducted further investigation.
The Marshals Service learned that Partee had never registered as a sex offender in the State of Mississippi and the State of Mississippi had not received a notification from the State of Illinois indicating the Defendant’s intent to relocate to Mississippi. The Marshals Service investigation concluded that Partee’s current residence was at a hotel in Pascagoula that also routinely houses a wide variety of people including children. Partee was arrested by local law enforcement officials as a non-compliant sex offender in September 2018 and subsequent to his federal indictment, Partee was arrested by the U.S. Marshal’s Service in October 2018.
In failing to register as a sex offender when he moved from Illinois to Mississippi, Partee knowingly and willfully violated the Sex Offender Registration and Notification Act, also known as the Adam Walsh Act.
This case was investigated by the U.S. Marshals Service, law enforcement officials in the State of Illinois, the Mississippi Department of Public Safety, the Jackson County Sheriff’s Office, and the Pascagoula Police Department. It was prosecuted by Assistant U.S. Attorney Stan Harris.
Pain Clinic Owner Sentenced for Illegally Dispensing Schedule II and Schedule III Controlled SubstancesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announces that KENNETH KNIGHT, age 69, was sentenced today pursuant to his plea of guilty to a one count bill of information charging him with conspiring with others to dispense quantities of Schedule II and Schedule III drug controlled substances outside the scope of professional practice and not for legitimate medical purposes.
KNIGHT admitted in a factual basis that he owned and operated the Axcess Medical Clinic in New Orleans. He acknowledged that during the operation of the clinic, he directed a physician Dr. Barbara Bruce, to write prescriptions that were provided to patients without conducting medical examinations of the patients. KNIGHT split 50 percent of the profits received with co-conspirator Dr. Bruce through her medical practice.
KNIGHT was sentenced to 60 months incarceration, a period of supervised release of at least 3 years, and a $15,000.00 fine. The Honorable Barry W. Ashe sentenced the defendant.
The case was investigated by the Drug Enforcement Administration New Orleans Field Office Tactical Diversion Squad Task Force consisting of Harahan Police Department, Jefferson Parish Sheriff’s Office, St. Bernard Parish Sheriff’s Office, New Orleans Police Department, Westwego Police Department, Louisiana State Police, New Orleans District Attorney’s Office, and the Internal Revenue Service, Gulfport, Mississippi.
This case was prosecuted by Assistant U.S. Attorneys John F. Murphy and Bill McSherry.
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One of the Largest Fentanyl Distributors in Wilmington Gets 17 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced SHAWQI GRAY, 37, of Wilmington to 204 months imprisonment, followed by 5 years of supervised release.
On November 6, 2018, GRAY plead guilty to possession with the intent to distribute 100 grams or more of heroin and a quantity of fentanyl and possession of a firearm in furtherance of drug trafficking crime.
On November 30, 2017, the New Hanovery County Sheriff’s Office conducted a search of GRAY’s residence and a storage container on the property. Law enforcement found the following items: more than 150 grams of a mixture of heroin and fentanyl, more than 150 grams of a mixture of heroin and ketamine, 5 handguns (two of which were stolen) and more than $47,000 in cash. The investigation uncovered that GRAY had been involved in the distribution of more than a kilogram and half of a mixture of heroin and fentanyl from July until November 2017.
On August 4, 2016, the Easton, Pennsylvania Police searched GRAY’S residence. Gray was not present. Law enforcement found 20 grams of heroin, 68 grams of crack cocaine and more than $19,000 in cash.
This case is part of an FBI lead OCDETF operation “Tooth Fairy”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation is focused on the distribution of heroin from New Jersey to New Hanover, Brunswick, Bladen, Duplin, and Sampson Counties and associated gang activities.
This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation Coastal Carolina Criminal Enterprise Task Force, The Bureau of Alcohol, Tobacco, Firearms, & Explosives, New Hanover County Sheriff’s Office and the Easton, Pennsylvania Police Department. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Omaha Man Convicted of Receiving Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Mark Ringland, age 53, was convicted Wednesday of receiving child pornography after a two-day jury trial in federal court. The Honorable Laurie Smith Camp was the presiding judge.
Agents with the Federal Bureau of Investigation’s Child Exploitation Task Force received information in the spring of 2017, from the National Center for Missing and Exploited Children, that a specific email address was receiving child pornography. The investigators were able to determine that it was Ringland’s email. He was contacted on September 1, 2017, and had a cell phone and iPad in his possession. The investigators seized both devices for which they had an authorized search warrant. Searches were done and investigators located more than 900 images of what they believed to be child pornography between the two devices. It was determined that at least one of the images was received by Ringland between April 1, 2017 and September 1, 2017.
Ringland faces not less than five years’ nor more than 20 years’ imprisonment, a $250,000 fine, and when released from prison, a term of at least five years to life of supervised release. Sentencing has been set for June 3, 2019.
Ohio Man Sentenced to 140 Months for Distributing MethamphetamineRead the Press Release
COVINGTON, Ky. — John Lee McCloud, 29, of Fairfield, Ohio, was sentenced today, by United States District Judge David Bunning, to 140 months in federal prison, for trafficking in methamphetamine.
McCloud was indicted in June 2018, and pled guilty in November 2018. According to court documents, McCloud was arrested in Florence, Kentucky, when he attempted to sell approximately five ounces of methamphetamine.
Under federal law, McCloud must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a term of five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; and Tom Grau, Chief of the Florence Police Department, jointly made the announcement.
The investigation was conducted by the DEA and the Florence Police Department. The United States was represented by Assistant United States Attorney Tony Bracke.
Nine Real Estate Investors Sentenced for Rigging Bids at Mississippi Public Foreclosure AuctionsRead the Press Release
WASHINGTON – Nine real estate investors have been sentenced for their role in a conspiracy to rig bids, in violation of the U.S. antitrust laws, at public real estate foreclosure auctions in Southern Mississippi, the Department of Justice announced.
Today, Christopher Vaughan and Jon Gregg Goodhart Jr. were each sentenced to serve four months in prison, with Vaughan receiving a fine of $20,000. Both defendants were ordered to pay restitution. Separately, but as a result of the same investigation, Jason Boykin, Shannon Boykin, Kimberly Foster, Kevin Moore, Chad Nichols, Ivan Spinner, and Terry Tolar were each sentenced to a term of four months in prison on Jan. 17, 2019, and were ordered to pay fines ranging from $20,000 to $48,000 and restitution to victims of their crimes.
At various times between 2009 and 2017, according to court documents, these defendants and others conspired not to bid against each other for properties sold at public real estate foreclosure auctions. Instead, they designated a winning bidder for the property and made and received payoffs in exchange for their agreement not to bid. When properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds paid to the homeowner. These conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.
“Those who subvert the competitive process will be held accountable and violations of the nation’s antitrust laws will be taken seriously,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division has prosecuted more than 100 individuals across the country for bid rigging at real estate foreclosure auctions, and we will continue our efforts to prosecute and deter this conduct.”
“These types of crimes affect all Americans, because when individuals rig bids at auction, it ultimately damages our economy and hurts individuals,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “We want to send a clear message to those participating in this type of corruption: the FBI and Department of Justice will investigate and prosecute anyone betraying the trust of our country’s economic foundation.”
“There is a simple lesson from these cases – if you rig bids, you will be caught and you will be punished. These are not victimless crimes, as we all suffer when people violate our antitrust laws. I want to thank the FBI and the Antitrust Division for rooting out this corruption in our foreclosure auctions here in Mississippi. We will remain vigilant against these and other types of crimes as we move forward in protecting the public,” said United States Attorney Mike Hurst for the Southern District of Mississippi.
The sentences announced today resulted from an ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.
Nine Real Estate Investors Sentenced for Rigging Bids at Mississippi Public Foreclosure AuctionsRead the Press Release
Nine real estate investors have been sentenced for their role in a conspiracy to rig bids, in violation of the U.S. antitrust laws, at public real estate foreclosure auctions in Southern Mississippi, the Department of Justice announced.
Today, Christopher Vaughan and Jon Gregg Goodhart Jr. were each sentenced to serve four months in prison, with Vaughan receiving a fine of $20,000. Both defendants were ordered to pay restitution. Separately, but as a result of the same investigation, Jason Boykin, Shannon Boykin, Kimberly Foster, Kevin Moore, Chad Nichols, Ivan Spinner, and Terry Tolar were each sentenced to a term of four months in prison on Jan. 17, 2019, and were ordered to pay fines ranging from $20,000 to $48,000 and restitution to victims of their crimes.
At various times between 2009 and 2017, according to court documents, these defendants and others conspired not to bid against each other for properties sold at public real estate foreclosure auctions. Instead, they designated a winning bidder for the property and made and received payoffs in exchange for their agreement not to bid. When properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds paid to the homeowner. These conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.
“Those who subvert the competitive process will be held accountable and violations of the nation’s antitrust laws will be taken seriously,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division has prosecuted more than 100 individuals across the country for bid rigging at real estate foreclosure auctions, and we will continue our efforts to prosecute and deter this conduct.”
“These types of crimes affect all Americans, because when individuals rig bids at auction, it ultimately damages our economy and hurts individuals,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “We want to send a clear message to those participating in this type of corruption: the FBI and Department of Justice will investigate and prosecute anyone betraying the trust of our country’s economic foundation.”
“There is a simple lesson from these cases – if you rig bids, you will be caught and you will be punished. These are not victimless crimes, as we all suffer when people violate our antitrust laws. I want to thank the FBI and the Antitrust Division for rooting out this corruption in our foreclosure auctions here in Mississippi. We will remain vigilant against these and other types of crimes as we move forward in protecting the public,” said United States Attorney Mike Hurst for the Southern District of Mississippi.
The sentences announced today resulted from an ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.
Newton Physician to Pay $680,000 to Resolve Allegations of Medicare and Medicaid FraudRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that Dr. Hooshang Poor, a Newton geriatric medicine physician, has agreed to pay $680,000 to resolve allegations that he violated the False Claims Act by submitting inflated claims to Medicare and the Massachusetts Medicaid program (MassHealth) for care rendered to nursing home patients.
In the settlement agreement, the government contends that, between May 31, 2017, and June 1, 2011, Dr. Poor submitted inflated claims for nursing home care by assigning false procedural codes that overstated the length, extent, and scope of services he and his employees furnished to nursing home residents. The government further contends that Dr. Poor did not abide by MassHealth limitations on the frequency of billable visits and did not use required modifier codes when billing for care his non-physician employees provided, causing MassHealth to reimburse inflated amounts for those services.
“Dr. Poor enriched himself at taxpayer expense by improperly billing Medicare and Medicaid,” said United States Attorney Andrew E. Lelling. “We will continue to work with our law enforcement partners to ensure that federal and state health care dollars are spent properly.”
“It’s our agency’s mission to ensure government health funds are spent properly,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our Federal and State partners, we will continue to hold accountable any medical professional who bills Medicare and Medicaid for more intensive and expensive services than those actually provided.”
Under the terms of the agreement with the United States and the Commonwealth of Massachusetts, Dr. Poor will pay $265,896 to the Medicare program and $414,103 to the Medicaid program.
U.S. Attorney Lelling and HHS-OIG SAC Coyne made the announcement today. This matter handled by Assistant U.S. Attorney David J. Derusha of Lelling’s Office and Assistant Attorneys General Kevin Lownds and Gregory Matthews of the Massachusetts Attorney General’s Medicaid Fraud Division.
Nevada, Iowa Man Sentenced to Prison for Mailing Powder Letter to SchoolRead the Press Release
DES MOINES, Iowa – On February 19, 2019, Mondell V. Olson, age 67, of Nevada, was sentenced to 18 months in federal prison to be followed by three years of supervised release for the offense of false information and hoaxes, or mailing a ‘powder letter’ to the Nevada Schools, announced United States Attorney Marc Krickbaum. Olson was sentenced by United States District Court Senior Judge Robert W. Pratt, in the United States District Court for the Southern District of Iowa.
In March 2018, Olson mailed an envelope addressed to a teacher at the Nevada Schools. Inside the envelope was a white powdery substance, and a note indicating the substance was anthrax. The investigation revealed the substance was not toxic. Olson admitted to sending the teacher the envelope. Olson was previously convicted of harassment charges in Story County for leaving threatening voice mails with the Nevada High School and a teenage student at the school.
This matter was investigated by the United States Postal Inspection Service, Federal Bureau of Investigation, and Nevada Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Montgomery County Man Guilty of Producing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Omar Santiago-Muniz, age 28, of Pottstown, Pennsylvania, pleaded guilty on February 21, 2019, before U.S. District Court Judge Robert D. Mariani to production of child pornography.
According to United States Attorney David J. Freed, Santiago-Muniz admitted that in June-July 2017, he enticed and persuaded two minors, ages 9 and 10, from Schuylkill County, to engage in sexually explicit conduct for the purpose of producing images of such conduct, and that he used a cell phone and the internet to commit the crimes.
Judge Mariani ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
The case was investigated by Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and the Schuylkill County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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 the offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment. 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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Monongalia County woman admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tina Hart, of Glenville, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Hart, age 40, pled guilty to one count of “Unlawful Use of Communication Facility.” Hart admitted to using a phone to distribute a controlled substance in April 2018 in Monongalia County.Hart faces up to four years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michel John Aloi presided.
Missoula man sentenced to six years for methRead the Press Release
MISSOULA—Missoula resident Gerald Eugene Kennedy, who admitted to distributing methamphetamine for two to three years, was sentenced today to six years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Kennedy, 54, pleaded guilty in October to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
Kennedy was charged after a Missoula Police Department sergeant pulled Kennedy over during a traffic stop and discovered meth on Kennedy’s person during a pat down. Kennedy admitted that the substance was meth and later admitted to having distributed meth for about two to three years.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Montana Regional Violent Crimes Task Force and FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mission Man Charged with Escape and Criminal ContemptRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Escape from Custody and Criminal Contempt.
Roger James Spider, II, a/k/a Roger Spider, Jr., age 28, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 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.
Spider was indicted for Assault by Strangulation and Suffocation and Domestic Assault by an Habitual Offender on July 17, 2018. He made his initial appearance on that Indictment on December 18, 2018, and was detained in the custody of the U.S. Marshals Service pending trial.
The Indictment alleges that on January 22, 2019, Spider failed to report to the Hughes County Jail following a furlough, as ordered by the U.S. District Court for the District of South Dakota. The Indictment further alleges that Spider willfully and unlawfully disobeyed an order of the U.S. District Court, by not following the terms of the furlough order.
The charges are merely accusations and Spider is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Spider was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Middle District of Florida U.S. Attorney’s Office Collects More Than $142 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Tampa - U.S. Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $38,073,605.20 in criminal and civil actions in the fiscal year ending September 30, 2018 (FY 2018). Of this amount, $27,941,783.60 was collected in local civil actions and $10,131,821.60 was collected in criminal actions. The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $96,663,640 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The Middle District of Florida’s Civil Division recovered an additional $68,721,857.63 in these jointly handled cases.
Additionally, the Office’s Asset Forfeiture Division, led by Anita Cream, recovered $35,367,506 in asset forfeiture actions last fiscal year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2018, more than $1 million forfeited in the MDFL in prior years was returned to victims of the criminal offenses upon which the forfeitures were based (with more than $150 million pending distribution to additional crime victims), and more than $2.8 million was shared with federal, state, and local law enforcement agencies.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The U.S. Attorney’s Office will continue working with its partners to investigate and prosecute fraud at every level,” said U.S. Attorney Chapa Lopez. “Our coordinated efforts aim to ensure that criminals are held accountable for their illegal actions and that victims are able to recover from their losses, wherever possible.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
CIVIL HEALTHCARE FRAUD ENFORCEMENT CASE SUMMARIES
United States ex rel. Nurkin v. Health Management Associates, Case no. 2:11-cv-14-FtM-29DNF
The former Chief Executive Officer of the Charlotte Regional Medical Center (CRMC) filed a qui tam case alleging that CRMC’s owner, Health Management Associates, Inc. (HMA), implemented a scheme to generate referrals of Medicare business to CRMC and to Peace River Medical Center in violation of the federal Anti‑Kickback and Stark statutes. Specifically, HMA offered referring physicians free office space, staff, equipment, and direct expense payments of $20,000 to $40,000 per month. During the investigation, the HMA hospital chain was purchased by a larger nationwide hospital chain based in Nashville, Tennessee, Community Health Services.
A nationwide investigation of HMA and its hospitals around the country ensued and led the Department of Justice to consolidate this case with eight other related qui tam cases that had been filed in other judicial districts. The nine overlapping qui tam cases were eventually consolidated in the District of Columbia for pretrial proceedings.
A global resolution of the kickback allegations was finalized in September 2018 that paid the United States $143 million to address the claims in the Nurkin case as well as those raised in a separate qui tam case filed in the Eastern District of Pennsylvania. Of the total settlement amount, $93.5 million was allocated to the Middle District of Florida’s Nurkin case. It was the largest recovery of all nine of the consolidated cases against HMA. Community Health Services also entered into a non-prosecution agreement with the Department of Justice, Criminal Frauds Section that addresses allegations unrelated to the MDFL case.
Press release: https://www.justice.gov/opa/pr/hospital-chain-will-pay-over-260-million-resolve-false-billing-and-kickback-allegations-one
United States ex rel. Moore v. 21st Century Oncology, Inc., et al., Case no. 2:16-civ-99-FtM-29MRM
The relator in this case alleged that a nationwide oncology provider, 21st Century Oncology, had entered into illegal compensation agreements with physicians that paid incentives that violated federal law. During our investigation, the defendant also voluntarily disclosed that it had falsified reports to CMS to justify incentive payments under a Medicare program called the EHR Incentive Program. Commercial pressures drove the defendant to seek bankruptcy protection. While the bankruptcy was pending, settlement discussions ensued to address the civil fraud claims, and resulted in an ability to pay agreement that will pay the United States $26 million.
Press release: https://www.justice.gov/opa/pr/21st-century-oncology-pay-26-million-settle-false-claims-act-allegations
United States ex rel. Van Raalte, et al. v. Healogics, Inc., Case no. 6:14-civ-283-Orl-41KRS;
DAB United States ex rel. Wilcox v. Healogics, Inc., Case no. 6:15-civ-1510-Orl-41
Two overlapping qui tam cases were filed in Orlando against a Jacksonville based management consultant, Healogics, Inc., that provides management services to wound healing clinics owned by hospitals around the country. The relators were several wound healing physicians employed by a Healogics wound healing center, and a former management level employee of Healogics. The relators alleged that the defendant had caused the hospitals to submit false claims to federal health programs for medically unnecessary hyperbaric oxygen services and debridements, among other things. After a lengthy investigation, we opened settlement discussions that culminated in an ability to pay resolution that will pay up to $22.5 million to resolve all claims in the cases.
Press release: https://www.justice.gov/opa/pr/healogics-agrees-pay-2251-million-settle-false-claims-act-liability-improper-billing
United States ex rel. Sharpe v. Americare Ambulance, Inc., Case no. 8:13-civ-1171-T-36AEP
The relator in this qui tam case was a former employee of the largest ambulance company in Hillsborough County who alleged that the defendant had submitted false claims to Medicare and TRICARE for up-coded patient transportation services. Our investigation corroborated the allegations but pre-intervention settlement discussions were not fruitful. We intervened in the case and after a year of litigation, we reached a settlement of the claims that paid the United States $5,496,816.
Press release: https://www.justice.gov/usao-mdfl/pr/tampa-s-largest-ambulance-providers-agree-pay-55-million-resolve-false-claims-act
United States ex rel. Gross v. James Norman, MD, PA et al., Case no. 8:14-civ-978-T-33EAJ
Patients of this Tampa thyroid surgeon, James Norman, MD, filed a qui tam complaint alleging that he had staged pre-surgery patient consultations to improperly circumvent Medicare’s reimbursement rules for thyroid surgery services. We determined that the practice was widespread among the defendant’s patients and constituted a violation of his participation agreement with Medicare. We reached an agreement that resolved the allegations under the False Claims Act in return for $4,070,800.
Press release: https://www.justice.gov/usao-mdfl/pr/owner-tampa-parathyroid-practice-agrees-pay-4-million-resolve-false-claims-act
United States ex rel. Simons v. North Central Florida Hospice, Inc., Case no. 3:16-civ-330-J-41JRK
A former employee of this Jacksonville, Florida based hospice provider (doing business as Haven Hospice, Inc.) alleged that the defendant had provided hospice services to Medicare patients who did not qualify for the service, and improperly billed Medicare for those services. A civil investigation corroborated this claim and led to an ability to pay settlement that paid $5,085,024 to the United States.
Press release: https://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-allegations-against-haven-hospice-more-5-million
Trinity Medical Pharmacy, LLC
This was a direct referral from the TRICARE program that centered upon allegations that a New Port Richey based compounding pharmacy, Trinity Medical Pharmacy, and a handful of its executives had engaged in a variety of illegal practices designed to defraud the military’s health program. Trinity, its Chief Executive Officer Krutika Patel, its Chief Operating Officer Devan Patel, its National Sales Director Jay Martinez, and its National Account Director Nicholas Petrillo, implemented a variety of kickback schemes designed to incentivize overutilization of compounded pain creams. These kickback arrangements included bogus philanthropies, waiver of patient co-payments, and kickbacks to physicians in the guise of speaker programs and honoraria. The pharmacy also failed to disclose to the TRICARE program that Devan Patel was a convicted felon when it applied to become an authorized provider with the program’s pharmacy benefit manager, Express Scripts. Trinity and the four individual defendants ultimately agreed to pay $2,244,270 to resolve these civil claims.
Press release: https://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-act-allegations-against-trinity-medical-pharmacy-and
United States ex rel. Sawicki v. Arthur Portnow, MD, et al., Case no. 8:15-civ-987-T-27MAP
An ultrasound technician alleged that her former employer – a Sarasota internist – had conducted medically unnecessary carotid and arterial ultrasound tests, and falsified patient records to justify those tests in claims to federal health programs. A civil investigation corroborated these allegations and we resolved the claims in a settlement that paid $1.95 million to the United States.
Press release: https://www.justice.gov/usao-mdfl/pr/sarasota-physician-agrees-pay-195-million-resolve-false-claims-act-allegations
United States ex rel. Loebl v. Eurogynecology Specialists of Florida, Inc., et al., Case no. 6:16-cv-1722-Orl-37KRS
A physician’s assistant, formerly employed by a large gynecology practice with multiple offices all over central Florida, filed a qui tam complaint alleging that the practice group had defrauded Medicare by improperly using a billing modifier in connection with certain gynecology services. The modifier justifies additional payment from government health programs when used in connection with “separate identifiable” services that cannot be bundled with an underlying service. Our investigation corroborated widespread billing improprieties involving this modifier code, and we negotiated a settlement resolving the civil claims in return for $1.7 million.
Press release: https://www.justice.gov/usao-mdfl/pr/fwc-urogynecology-llc-agrees-pay-17-million-settle-false-claims-act-liability-misuse
United States ex rel. Stone v. Riverside Spine and Pain Physicians, LLC, Case no. 8:16-civ-945-T-36EAJ
A Tampa pain management doctor filed a qui tam complaint alleging that her former employer, a large Jacksonville-based physicians group, had filed false claims to federal payors for unnecessary urine drug testing services. Our investigation corroborated these allegations and separately revealed that the practice group had accepted kickbacks from a nationwide urine drug-testing lab in the form of specimen cups. We negotiated a settlement of these civil claims for the total amount of $1,491,478.
Press release: https://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-act-allegations-against-riverside-spine-pain
United States ex rel. Pelletier v. Liberty Ambulance Co., Case no. 3:11-civ-911-J-37JRK
A former employee of a Jacksonville ambulance company filed a qui tam complaint alleging that the defendant had submitted false claims to Medicare and other federal payors for up-coded patient transportation services. We settled these claims with other named defendants, but our negotiations with Liberty Ambulance broke down. We intervened in the case and after over a year of litigation, we reached an ability to pay settlement with Liberty wherein it agreed to pay $1.2 million to resolve all claims.
Press release: https://www.justice.gov/usao-mdfl/pr/united-states-settles-false-claims-act-allegations-against-liberty-ambulance-12-million
United States ex rel. Steppe v. RS Compounding, LLC and Renier Gobea, Case no. 8:13-cv-3150-T-33AEP
This qui tam case was filed by a former sales representative of a Tampa, Florida compounding pharmacy, RS Compounding d/b/a Westchase Pharmacy. She alleged that the pharmacy and its owner, Renier Gobea, engaged in a number of schemes to defraud the military’s TRICARE health program. Notable of these was the pharmacy’s practice of billing compounded pain creams to TRICARE at rates that were astronomically higher than the rates the pharmacy charged to private insurers and cash-paying customers. This practice violated the TRICARE program’s reimbursement requirements and came at a time when the program was reeling from the impact of a vast network of fraud schemes underway around the country that involved illegal marketing of compounded pain creams. An investigation confirmed that the Westchase Pharmacy was charging TRICARE prices that were in excess of 2,000% higher than prices charged to private insurers for the same pain cream products.
We intervened in the case in April 2017 and after a period of litigation, eventually resolved the allegations in the case against the pharmacy and Mr. Gobea in exchange for $1.2 million.
Press Release: https://www.justice.gov/usao-mdfl/pr/government-settles-12-million-lawsuit-against-florida-compounding-pharmacy-and-its
Member of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Pleads GuiltyRead the Press Release
NEWARK, N.J. – A New York man today admitted participating in a scheme that used secret card-reading devices and pinhole cameras on various New Jersey bank locations to steal at least $428,581, U.S. Attorney Craig Carpenito announced.
Bogdan Rusu, 39, of Queens, New York, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Rusu and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Rusu admitted installing equipment on ATMs at banks in New Jersey. Eleven other defendants charged in this scheme have pleaded guilty.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for July 1, 2019.
U.S. Attorney Carpentio credited special agents of the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael in Newark; special agents of the U.S. Secret Service, Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department, with assistance from the victim banks, with the investigation leading to today’s guilty plea. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Marshall County man admits to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Charles J. Chambers, of Moundsville, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Chambers, age 44, pled guilty to one count of “Distribution of Methamphetamine.” Chambers admitted to selling methamphetamine in July 2018 in Marshall County.
Chambers faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Marijuana Manufacturer and Convicted Felon in Possession of Loaded Guns -- Sentenced to Six Months in Federal PrisonRead the Press Release
A man who had of multiple felony offenses, including an Iowa State conviction for dominion and control of a firearm as a felon in 1991, was sentenced February 20, 2019, to federal prison for, once again, unlawfully possessing a firearm.
Jon Merrit Draper, age 57, from Cherokee, Iowa, received the prison term after a September 18, 2018, guilty plea to possessing a firearm as a felon.
Evidence at Draper’s sentencing and change of plea hearings revealed on January 14, 2018 he was a marijuana manufacturer, distributor, and user who was also a felon in possession of three guns. It also revealed Draper’s marijuana operation fed the weekly habit of at least one person for approximately two years, the daily habit of others for an unknown time period.
Draper kept the guns in a bedroom adjacent to a parlor used for drug-use, and above a basement used to manufacture drugs. Two of the guns were loaded, none of them were cased. Ammunition was also found in the basement.
Draper’s criminal history included a conviction for dominion and control of a firearm as a felon in 1991 (for which he received a 15-year suspended sentence), two minor controlled substance related violations in 2003, and 2015, six OWI convictions, and an assault conviction.
Draper was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Draper was sentenced to 6 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term and pay a $100 special assessment. There is no parole in the federal system.
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.
Draper was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was investigated by Cherokee Police Department, Cherokee Sheriff’s Office and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4058.
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Manhattan U.S. Attorney Announces Indictment of Former Vice President of Teamsters Labor Union for BriberyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeny Jr., Assistant Director-in-Charge, New York Division, Federal Bureau of Investigation (“FBI”), Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (“DOL-OIG”); Darren Cohen, New York Regional Director, U.S. Department of Labor Employee Benefits Security Administration (“DOL-EBSA”); and Andriana Vamvakas, New York Regional Director, U.S. Department of Labor Office of Labor-Management Standards (“DOL-OLMS”), announced that JOHN ULRICH, who previously served as the vice president of International Brotherhood of Teamsters Local 812 (the “Union”) and as a trustee of the Union’s employee health benefit plan (the “Plan”), was charged in an indictment unsealed today with soliciting tens of thousands of dollars in bribe payments from an executive with the Plan’s Third Party Administrator (the “TPA-1”), in exchange for using his influence to ensure the Union’s continued retention of TPA-1 as its Plan administrator. ULRICH was arrested this morning, and will be presented this afternoon in Manhattan federal court before United States Magistrate Judge Ona T. Wang. ULRICH’s case is assigned to United States District Judge Analisa Torres.
U.S. Attorney Geoffrey S. Berman said: “As alleged, John Ulrich abused his position as the vice president of a labor union and trustee for its health plan by selling his influence to the Union’s health care administrator. As part of this alleged scheme, Ulrich betrayed the trust of the Union members who elected him in order to line his pockets with bribe money. This Office is committed to prosecuting those who abuse their positions of trust for their own financial benefit.”
FBI Assistant Director William F. Sweeny Jr. said: “Instead of advocating for the best possible benefit programs for the union members he represented, Ulrich allegedly entered into a quid-pro-quo arrangement that served to advance his needs and the needs of the Plan’s third-party administrator. In his official role, he was charged with protecting the interests of his fellow union employees, but as we allege today, this trustee couldn’t be trusted.”
DOL-OIG New York Region Special Agent-in-Charge Michael C. Mikulka said: “An important mission of the Office of Inspector General is to investigate allegations relating to corruption within labor unions and their affiliated employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations.”
DOL-EBSA New York Regional Director Darren Cohen said: “Trustees of union sponsored health benefit plans have a fiduciary obligation to perform their duties solely in the interests of union members and plan participants. In this case, the plan trustee allegedly abdicated this responsibility in order to serve his own interest. EBSA will pursue plan trustees and other officials when they engage in criminal schemes to defraud private sector benefit plans. EBSA is very pleased to have had the opportunity to work collaboratively with our law enforcement partners in the Labor Department’s Office of the Inspector General and Office of Labor-Management, the Federal Bureau of Investigation, and the U.S. Attorney’s Office to protect plan participants.”
DOL-OLMS New York Regional Director Andriana Vamvakas said: “Investigating corruption and ensuring financial integrity in labor organizations is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards. We will continue to work with our investigative partners to ensure that those who are affiliated with labor organizations adhere to the highest standards of conduct to protect the assets of union members and do not misuse their positions of trust for their own personal gain.”
According to the allegations in the Indictment[1]:
The Union has more than approximately 3,000 members, and represents workers in the beverage industry throughout the New York metropolitan area. The Union’s members are covered by the Plan, which provides, among other things, life insurance, health insurance, dental, vision, and disability benefits to Union members and their families. As the Plan’s third-party administrator, TPA-1 processed health insurance claims for participants in the Plan. At all times relevant to the Indictment, ULRICH was a member and officer of the Union and a trustee of the Plan.
In or about 2013, ULRICH was experiencing financial difficulties, and solicited bribe payments from an executive with TPA-1 (“Executive-1”) of $5,000 per quarter in exchange for using his influence to maintain TPA-1 as the Plan’s third-party administrator. Before ULRICH solicited these bribes, the Plan had issued a request for proposals for a new third-party administrator, and TPA-1 was at risk of losing the Plan’s business. ULRICH told Executive-1 that ULRICH would use his influence with the Union to ensure that the Plan continued to use TPA-1 to administer the Union’s health care plan. Executive-1 agreed to make $5,000 quarterly payments to ULRICH, and began doing so. Subsequently, despite receiving multiple bids from other third-party administrators, the Plan then continued to work with TPA-1.
In or about 2014, ULRICH demanded increased bribe payments from Executive-1. In part, ULRICH told Executive-1 that these increased bribe payments were needed for another trustee of the Plan, and Executive-1 began making such increased payments. On or about September 19, 2015, ULRICH again solicited additional bribe payments for this trustee.
After a special board meeting convened by the Plan in February 2016, ULRICH was terminated as vice president and trustee of the Union and Plan, respectively. In total, ULRICH demanded, and Executive-1 paid, tens of thousands in bribes before ULRICH was removed from office.
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ULRICH, 48, of Newburgh, New York, is charged in four counts with conspiracy to solicit and receive bribe payments to influence the operation of an employee benefit plan, which carries a maximum penalty of five years in prison; soliciting and receiving bribe payments to influence the operation of an employee benefit plan, which carries a maximum penalty of three years in prison; conspiracy to commit honest services health care fraud, which carries a maximum penalty of 10 years in prison; and honest services health care fraud, which carries a maximum penalty of 10 years 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 defendant will be determined by the judge.
Mr. Berman praised the FBI, DOL-OIG, DOL-EBSA, and DOL-OLMS for their outstanding investigative work in this case.
This matter is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Eli J. Mark and Louis A. Pellegrino are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Sentenced to 70 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - David Fagan, 32, of Manchester, was sentenced to 70 months in prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 6, 2018, Fagan intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase drugs. Agents conducted surveillance in the area of the transaction and observed the defendant’s vehicle arrive. The vehicle left Massachusetts and agents followed it directly to Nashua, New Hampshire, where they stopped the vehicle. Officers later received a search warrant and recovered approximately one gram of suspected fentanyl in the car.
On March 29, 2018, agents learned that Fagan again intended to travel from New Hampshire to a location in Lawrence to purchase drugs. Agents conducted surveillance in the area of the transaction. Investigators passed on information to the New Hampshire State Police.
A trooper later stopped the vehicle heading northbound on I-93. The trooper identified the driver as the registered owner of the car and Fagan as the sole passenger. The officer spoke to both individuals and obtained consent to search the vehicle. The trooper located approximately 50 grams of fentanyl under the hood of the car inside the air filter.
The investigation revealed that from February 23, 2018, through April 2018, Fagan ordered and purchased 1050 grams of fentanyl.
Fagan previously pleaded guilty on September 26, 2018.
“Drug traffickers who choose to bring fentanyl into New Hampshire should understand that they will face justice in federal court,” said U.S. Attorney Murray. “As is apparent from this case, serious prison time awaits those who trade in this lethal substance. Law enforcement agencies at every level of government have made it a top priority to stop the flow of fentanyl.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Man Sentenced to Prison for Multiple Armed RobberiesRead the Press Release
RICHMOND, Va. – A Chester man was sentenced today to 27 years for robbing four convenience stores and the attempted robbery of another convenience store.
According to court documents, Anthony Wilson Jr., and his co-defendants were involved in a string of armed robberies and an attempted robbery at various gas stations and convenience stores located in the areas of Chesterfield County and Richmond during March 2018. In each of the robberies and attempted robbery, Wilson entered the stores with a firearm, brandished the gun, and placed all of the store clerks in fear for their lives. In each of the robberies, Wilson made off with cash and other store items.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and MaryJo Thomas, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by United States District Judge John A. Gibney, Jr. Assistant U.S. Attorney Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-88.
Man Sentenced to More than 16 Years for Violent Hobbs Act Robbery in Elizabeth CityRead the Press Release
ELIZABETH CITY – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced NATHAN LAMONTE SILVER, 44, of Clarksville, Tennessee to 200 months imprisonment, followed by 3 years of supervised release.
SILVER was named in an Indictment filed on May 2, 2018 charging him with a Hobbs Act Robbery on October 19, 2017. On November 5, 2018, SILVER pled guilty to the charge.
According to the investigation, on October 19, 2017, SILVER entered Star One Tobacco and Wine in Elizabeth City and went to the beer cooler of the store. SILVER picked up a beer and immediately dropped it. After acquiring another beer, the defendant took it to the register and attempted to pay with a credit card; however, the card was declined. SILVER advised the clerk, who is also the store owner, he would be back with some money. Thinking SILVER had left the store, the clerk went to the back room in order to get a broom to clean up the broken beer bottle. SILVER entered the back room behind the clerk, punched the clerk, knocking the clerk to the ground, and locked the door to the room. The clerk told SILVER to take the money from the register and leave. Instead, SILVER continued punching the clerk in the head, pulled a pocket knife, and stabbed it into the left side of the clerk’s neck. The clerk was able to kick the knife breaking the blade from the handle. SILVER attempted to stab the clerk on top of the head with the knife handle. Finally, SILVER placed the clerk in a headlock cutting off the clerk’s air supply; however, he did not lose consciousness.
While SILVER and the clerk struggled in the backroom, an off-duty employee entered the store and heard the clerk yelling for help from the backroom. Noticing the door was locked and hearing a commotion in the room, the off-duty employee kicked in the door, startling SILVER, who released the clerk. The clerk and off-duty employee fled from the building. SILVER then broke into the cash register and stole $2,360 before exiting the business.
Emergency personnel were called, and the wounded clerk was taken to a nearby hospital; however, due to the severity of his injuries, the clerk had to be airlifted to a hospital in Norfolk, Virginia, for treatment of a throat laceration, head trauma, and a swollen left ear. Early in the morning on October 20, 2017, Elizabeth City Police Departmane officers located and arrested SILVER without incident. SILVER was still in possession of the knife handle when he was apprehended. The stolen money was not recovered.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Elizabeth City Police Department and the Bureau Alchol, Tobacco, Firearms and Explosives. Assistant United States Attorney Charity L. Wilson represented the government.
Major Fentanyl Supplier Pleads GuiltyRead the Press Release
Tampa, Florida – Miguel Dumeng Alvira (35, New York City) has pleaded guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and cocaine; distributing 40 grams or more of fentanyl and 100 grams or more of heroin; and distributing 400 grams or more of fentanyl, 100 grams or more of heroin, and cocaine. Dumeng Alvira faces a minimum mandatory term of 10 years, and up to life, in federal prison. A sentencing date has not been set.
According to court documents, in April 2018, Dumeng Alvira and a co-conspirator gave approximately 124 grams of a mixture of fentanyl and heroin to a Drug Enforcement Administration confidential source in Tampa.
In June 2018, Dumeng Alvira met his co-conspirator in New York and gave him the following narcotics to distribute in Tampa: approximately 375 grams of fentanyl, approximately 470 grams of a mixture containing fentanyl and heroin, and approximately 487 grams of cocaine. DEA agents arrested the co-conspirator back in Tampa and seized those narcotics.
Following the co-conspirator’s arrest, Dumeng Alvira attempted to supply the DEA confidential source with additional narcotics to distribute in the Tampa area. On October 12, 2018, DEA agents arrested Dumeng Alvira in Tampa with over half a kilogram of heroin and nearly $30,000 in cash.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
MS-13 Gang Members Charged with Kidnapping and MurderRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging death-eligible offenses against 11 members of MS-13 for their role in the kidnapping and murder of two juveniles in 2016.
According to allegations in the indictment, in August and September 2016, Edenilson Misael Alfaro, aka “Lil Sicario,” originally from El Salvador and holding a high-ranking position in MS-13, authorized numerous lower-ranking members of MS-13’s Park View Locos Salvatrucha (PVLS) clique in Virginia to lure, kidnap, and murder two juveniles, E.E.E.M. and S.A.A.T.
According to the indictment, Alfaro was notified in August 2016 that E.E.E.M. posted a photograph of a masked man to his Facebook account with the number 666 superimposed above his head. Perceiving the Facebook post as evidence that E.E.E.M. was a member of the rival 18th Street gang, Alfaro authorized and directed members of the PVLS clique to kill E.E.E.M. Today’s indictment charges Alfaro and six other members and associates of the PVLS clique for their role in luring E.E.E.M. to Holmes Run Stream Valley Park in Fairfax County where E.E.E.M. was attacked and murdered. The indictment further alleges that the defendants videotaped E.E.E.M.’s murder to prove to gang leadership that the murder had been completed and that they were worthy of promotion within the gang.
According to the indictment, in September 2016, Elmer Zelaya Martinez, aka “Killer,” originally from El Salvador and holding a high-ranking position in the PVLS clique, reported to Alfaro his belief that S.A.A.T. was cooperating with law enforcement. Alfaro authorized and directed members of the PVLS clique to kill S.A.A.T. Today’s indictment charges all 11 defendants for their role in luring S.A.A.T. to Holmes Run Stream Valley Park, where S.A.A.T. was attacked and murdered. The indictment further alleges that the defendants videotaped S.A.A.T.’s murder as well to prove to gang leadership that the murder had been completed and that they were worthy of promotion in the gang.
The defendants are charged with conspiracy to commit kidnapping and murder in aid of racketeering activity, conspiracy to kidnap, murder in aid of racketeering activity, and kidnapping resulting in death. If convicted of the substantive counts, the defendants may face the death penalty. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was also investigated as part of the Organized Crime Drug Enforcement Task Force’s (OCDETF) Operation Devil’s Playground. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the indictment was returned. Assistant U.S. Attorneys Rebeca H. Bellows and Alexander E. Blanchard are prosecuting the case.
The U.S. Immigration and Customs Office’s Enforcement and Removal Operations, the Northern Virginia Gang Task Force, the United States Marshal's Service, Prince William County Police Department, Montgomery County Police Department, Prince George's County Police Department, Loudoun County Sheriff's Office, Alexandria Police Department, Leesburg Police Department, and Homeland Security Investigations provided significant assistance during this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-123.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Lower Brule Man Charged with Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jeffrey Jandreau, age 40, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 30, 2018, and November 16, 2018, Jandreau, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, did fail to register and update his registration.
The charge is merely an accusation and Jandreau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Jandreau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Local Men Charged in Stolen Baby Formula ConspiracyRead the Press Release
CINCINNATI – Three Butler County men have been arrested and charged in a conspiracy to ship stolen baby formula and other goods.
Khalil Yacub, 44 of Liberty Township, Ohio, Khalil Jaghama of West Chester, Ohio, and Jasser Saleh, 41 of Liberty Township, Ohio, were each arrested this morning.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division and Colerain Township Police Chief Mark C. Denney announced the charges.
According to an affidavit filed in support of the criminal complaint, Yacub’s family owns and operates the Pit Stop, a convenience store located on Galbraith Road in Colerain Township.
Employees of the Pit Stop, including Yacub, Jaghama and Saleh, would allegedly pay individuals (often drug addicts) to work as “boosters” to steal baby formula. The defendants would pay boosters with cash from the convenience store register for the stolen formula. For example, boosters might sell cans of stolen baby formula to the Pit Stop for $5 per can. On June 30, 2018, alone, one woman brought 40 cans of baby formula to the Pit Stop to be sold.
Before the defendants would purchase the stolen baby formula from boosters, they would often take a photo of the booster’s driver’s license or state ID in order to prevent the boosters from reporting co-conspirators to the police. Defendants also allegedly brandished a handgun and used a taser to intimidate and control buyers.
It is alleged that between 2017 and January 2019, the defendants stored and shipped hundreds of cans of baby formula for resale to other parts of the country. The defendants used a storage facility to warehouse the stolen goods. A GPS monitor placed one an Enfamil can in the storage facility showed that the product was transported interstate to the West Coast.
The defendants are charged with conspiring to transport and transporting stolen goods. The transporting of stolen goods is a crime punishable by up to 10 years in prison. Conspiracy to commit the crime is punishable by up to five years in prison. The defendants are also charged with unlawful possession of a means of identification, which carries a potential maximum sentence of five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Colerain Township Police Department and the assistance of Kroger, as well as Assistant United States Attorneys Timothy S. Mangan and Karl P. Kadon, who are prosecuting the case.
Criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Little Rock Man Sentenced to Prison for His Role in Stealing Money Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—A Little Rock man was sentenced for his role in a scheme that defrauded a government program intended to feed Arkansas children in low income areas. Nigel Hall, 49, of Little Rock, was sentenced to 27 months in federal prison by U.S. District Judge J. Leon Holmes.
Judge Holmes also sentenced Hall, who pleaded guilty to conspiring to commit wire fraud on February 12, 2018, to three years of supervised release following his term of imprisonment. Hall was also ordered to pay $882,657.95 in restitution. The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
“Stealing money from a program designed to feed hungry children is reprehensible,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “These funds were intended to provide food for children in Arkansas, not to line the pockets of those who commit fraud. Today’s sentence sends a message that we will find and prosecute those who abuse these programs and take advantage of the most vulnerable among us.”
Hall was a sponsor for a feeding program through an organization called “Creative Minds.” Hall had four approved feeding site locations, which were located in Little Rock, North Little Rock, Mabelvale, and Woodson. Hall submitted fraudulent claims to DHS, claiming to have fed many more children than were actually fed, and then DHS would reimburse him for that amount. Hall submitted claims of up to 846 children per day at some of his feeding sites, but at two of those sites, no children were fed. At a third location, fewer than 50 children were actually fed.
Hall is the 17th defendant sentenced who was charged in connection with a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants include: Kattie Jordan (63 months imprisonment on March 15, 2016); Reuben Nims (21 months imprisonment on November 2, 2016); Tonique Hatton (108 months imprisonment on January 4, 2017); James Franklin (24 months imprisonment on January 10, 2017); Maria Nelson (30 months imprisonment on January 31, 2017); Michael Lee (30 months imprisonment on May 1, 2017); Christopher Nichols (3 years probation on May 16, 2017); Gladys Waits (108 months imprisonment on July 17, 2017); Alexis Young (18 months imprisonment on August 18, 2017); Erica Warren (18 months imprisonment on August 18, 2017); Francine Leon (34 months imprisonment on September 21, 2017); Anthony Waits (175 months imprisonment on October 20, 2017); Jacqueline Mills (150 months imprisonment on December 6, 2017); Dorothy Harper (33 months imprisonment on January 9, 2018); Waymon Weeams (15 months imprisonment on February 15, 2018); and Elbert Harris (33 months imprisonment on February 28, 2018).
Debora Washington, Zina Lambert, and Cedric Maxwell have been charged in separate cases with conduct related to this scheme and are awaiting a jury trial.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Dax Roberson, Special Agent-in-Charge of the USDA – Office of Inspector General, Southwest Region, announced today’s sentencing. The investigation is still ongoing and continues to be conducted by the USDA–Office of Inspector General and the FBI. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg, and Cameron McCree.
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at: http://www.justice.gov/edarTwitter: @EDARNEWS
Leader of Multi-Million Dollar Immigration Fraud Scheme Pleads GuiltyRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981 and Meghan Heesch (619) 546-9442
NEWS RELEASE SUMMARY – February 21, 2019
SAN DIEGO – Hardev Panesar pleaded guilty in federal court today, admitting that he orchestrated a long-running immigration-fraud scheme that tricked more than 100 victims out of millions of dollars based on false claims that they could secure immigration status in the United States.
Panesar pleaded guilty before U.S. District Judge Gonzalo P. Curiel to all counts, including one count of conspiracy to commit wire fraud, three counts of wire fraud, four counts of false impersonation of a federal officer, and one count of structuring financial transactions. Panesar also pleaded guilty to a separate count of failing to appear in court, resulting from his decision “jump bail” and flee to Mexico in June 2018, where he remained a fugitive for two months.
According to his plea agreement, Panesar admitted that from at least 2012 through May 24, 2017, he defrauded immigrants and aliens by inducing them to pay money to him based on fraudulent claims that he and his co-conspirators could obtain legal status in the United States for the victims and their families. Panesar managed to defraud the victims by, in part, impersonating an official from the Department of Homeland Security (DHS) and claiming that he had the power to stop deportation proceedings. To trick his victims, Panesar repeatedly showed fake agency credentials, provided immigration applications, and took fingerprints of victims. He often demanded more money to speed up the process or guarantee the immigration documents by a certain date. Panesar and his co-conspirators never delivered on their promise to provide immigration documents, despite collecting hundreds of thousands of dollars from victims. As part of the plea agreement, Panesar agreed to pay approximately $2.5 million in restitution to his many victims.
Panesar also admitted that on June 21, 2018, he fled to Tijuana, Mexico, the day before a hearing scheduled in this case. Panesar remained a fugitive, hiding in Mexico, until August 13, 2018, when he was arrested by Mexican authorities and expelled back to the United States. Panesar has been in custody ever since, pending trial.
Panesar is scheduled to be sentenced on May 10, 2019, at 8:30 a.m. before Judge Curiel. Rafael Hastie, one of Panesar co-conspirators, was sentenced to 46 months in custody on January 4, 2019.
The investigation into this case continues. The San Diego Division of the Federal Bureau of Investigation is seeking possible victims in this investigation from 2000 through 2017. If you believe you are a potential victim of this crime, please fill out the questionnaire at https://forms.fbi.gov/SDImmigrationFraud or email the FBI at [email protected].
DEFENDANT
Hardev PANESAR Age: 70
SUMMARY OF CHARGES (17CR1371-GPC)
Count 1: 18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud; Maximum Penalty 20 years in prison, $250,000 fine, forfeiture, restitution
Counts 2-4: 18 U.S.C. § 1343, Wire Fraud; Maximum Penalty 20 years in prison, $250,000 fine, forfeiture, restitution
Counts 5-8: 18 U.S.C. § 912, False Personation of an Officer or Employee of the United States; Maximum Penalty 3 years in prison, $250,000 fine, forfeiture, restitution
Count 11: 31 U.S.C. § 5324(a)(3), Structuring at Domestic Financial Institutions; Maximum Penalty 10 years in prison, $250,000 fine, forfeiture
SUMMARY OF CHARGES (18CR3229-GPC)
Count 1: 18 U.S.C. § 3146(a)(1), Failure to Appear
AGENCY
Federal Bureau of Investigation
LaPlace Man Charged with Making False Statement to the Small Business AdministrationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KEITH CRAIG, age 57, a resident of LaPlace, Louisiana, was charged yesterday in a one-count Bill of Information with making a false statement to the Small Business Administration, in violation of 18 U.S.C. ' 1001.
If convicted, CRAIG faces a term of imprisonment of up to five (5) years imprisonment, followed by a term of supervised release of up to three (3) years, and a $250,000 fine.
U. S. Attorney Strasser reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Small Business Administration, Office of Inspector General in investigating this matter. Assistant United States Attorney Duane A. Evans is in charge of the prosecution.
LPR Indicted for Smuggling More than $1 MillionRead the Press Release
McALLEN, Texas – A 50-year old resident of Hidalgo has been charged with bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury has returned an indictment against legal permanent resident Alberto Hernandez Gallegos Feb. 12, 2019. He was originally charged by criminal complaint Jan. 26, 2019, and has remained in custody since that time. He is expected to make his appearance on the indictment before U.S. Magistrate Judge Juan Alanis at 8:30 a.m. today.
The indictment alleges that on Jan. 25, 2019, Gallegos attempted to exit the United States via vehicle at the Hidalgo Port of Entry. Customs and Border Protections Officers (CBP) conducted an outbound inspection which allegedly led to the discovery of approximately $1,081,375.00 in bulk U.S. currency concealed in a speaker box in the trunk of the vehicle.
The charges allege Gallegos was aware of the currency in the vehicle but not the total amount. He allegedly planned to smuggle the currency for others in return for $1000.
It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more to a CBP officer upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements.
If convicted, Gallegos faces up to five years in federal prison along with a possible $250,000 fine. Gallegos could also lose his status as an LPR.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with CBP. Assistant U.S. Attorney Andrew Henning is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Kanawha County Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pled guilty today to federal drug and gun charges. James Michael Hill, 50, of South Charleston, pled guilty to three counts of distribution of marijuana and one count of possession of a firearm by a prohibited person. Stuart praised the investigation conducted by MDENT.
“A convicted felon with multiple firearms. Marijuana is illegal and my office aggressively prosecutes its distribution,” said United States Attorney Mike Stuart. “22 pounds of pot, nearly $35,000, and firearms. This is an egregious case and another example of the criminal activity underlying the marijuana industry. I want to thank MDENT for excellent work in the case. We rely on the excellent work of our task forces who, in turn, are funded by the illegal assets underlying these types of cases.”
Hill admitted that on April 30, 2018, he sold marijuana to a confidential informant. He also admitted to having an associate of his sell marijuana to a confidential informant on May 7 and May 9 of 2018. Based on those sales and a subsequent search warrant, MDENT detectives were able to seize over 10 kilograms of marijuana, $34,904 in U.S. currency, two luxury vehicles, and five firearms belonging to Hill. Hill agreed that the money, vehicles, and firearms were tied to his drug operation and proceeds. Hill was previously convicted in federal court in April of 2001 for distribution of a cocaine base.
Hill faces up to 25 years in federal prison when he is sentenced on May 21, 2019.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Justice Department Files Lawsuit Alleging Disability-Based Discrimination in Housing in Galveston, TexasRead the Press Release
The Justice Department today filed a federal civil rights lawsuit against TFT Galveston Portfolio LTD (Galveston Portfolio), the owners of the Seasons Resort, an apartment complex located in Galveston, Texas, as well as against James W. Gartrell Jr., a licensed engineer whose primary place of business is Texas City, Texas. The lawsuit alleges that defendants Galveston Portfolio and Gartrell failed to design and construct an eight-building addition and associated rental office at the Seasons Resort to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) accessibility requirements and the Americans with Disabilities Act (ADA).
“The Department of Justice is committed to eliminating disability-based discrimination in housing,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This lawsuit is the latest step in the Department of Justice’s efforts to ensure equal accessibility for persons with disabilities, including making multifamily housing FHA compliant.”
“The United States Attorney’s Office is committed to working with the Civil Rights Division in enforcing the Fair Housing Act and the Americans with Disabilities Act,” said U.S. Attorney Ryan K. Patrick. “We are fully devoted to protecting the rights of persons with disabilities in the Southern District of Texas.”
The suit, filed in U.S. District Court in Galveston, Texas, alleges that the eight-building addition and rental office designed and built by the defendants have significant accessibility barriers that inhibit access to the 24 ground-floor units and the associated public and common-use areas at the property. Those barriers include: multiple steps on walkways throughout the property; multiple steps leading to ground-floor unit entrances; barriers at property amenities such as the mail centers, the pool, the rent drop box at the rental office, and the trash dumpster; inaccessible parking, bathrooms, kitchens, thermostats and electrical outlets; and door knobs at all unit entrances that make those entrances inaccessible to many people with disabilities.
The lawsuit arises from a complaint by a former tenant with physical disabilities who was compelled to move from the property because she could not get from her apartment to the parking area unassisted.
The lawsuit seeks a court order prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. The lawsuit also seeks an order requiring the defendants to bring the portions of the Seasons Resort that they have designed and constructed since 1991 into compliance with the FHA and the ADA, as well as monetary damages for persons harmed by the lack of accessibility.
The Justice Department, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Among other things, the FHA requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground-floor units. The full and fair enforcement of the ADA and its mandate to integrate individuals with disabilities is a major priority of the Civil Rights Division. The ADA protects individuals with disabilities from discrimination in public accommodations, including the rental office at issue in this case.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777, or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in court.
Justice Department Files Lawsuit Alleging Disability-Based Discrimination in Galveston HousingRead the Press Release
GALVESTON, Texas - The Justice Department has filed a federal civil rights lawsuit against TFT Galveston Portfolio LTD (Galveston Portfolio), the owners of the Seasons Resort, an apartment complex located in Galveston as well as against James W. Gartrell Jr., a licensed engineer whose primary place of business is Texas City. The lawsuit alleges Galveston Portfolio and Gartrell failed to design and construct an eight-building addition and associated rental office at the Seasons Resort to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) accessibility requirements and the Americans with Disabilities Act (ADA).
“The Department of Justice is committed to eliminating disability-based discrimination in housing,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This lawsuit is the latest step in the Department of Justice’s efforts to ensure equal accessibility for persons with disabilities, including making multifamily housing FHA compliant.”
“The United States Attorney’s Office is committed to working with the Civil Rights Division in enforcing the Fair Housing Act and the Americans with Disabilities Act,” said U.S. Attorney Ryan K. Patrick. “We are fully devoted to protecting the rights of persons with disabilities in the Southern District of Texas.”
The suit, filed in U.S. District Court in Galveston, alleges the eight-building addition and rental office designed and built by the defendants have significant accessibility barriers that inhibit access to the 24 ground-floor units and the associated public and common-use areas at the property. Those barriers include multiple steps on walkways throughout the property; multiple steps leading to ground-floor unit entrance; barriers at property amenities such as mail centers, pool, rent drop box at the rental office and the trash dumpster; inaccessible parking, bathrooms, kitchens, thermostats and electrical outlets; and door knobs at all unit entrances that make those entrances inaccessible to many people with disabilities.
The lawsuit arises from a complaint by a former tenant with physical disabilities who was compelled to move from the property because she could not get from her apartment to the parking area unassisted.
The lawsuit seeks a court order prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. The lawsuit also seeks an order requiring the defendants to bring the portions of the Seasons Resort that they have designed and constructed since 1991 into compliance with the FHA and the ADA, as well as monetary damages for persons harmed by the lack of accessibility.
The Justice Department, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Among other things, the FHA requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground-floor units. The full and fair enforcement of the ADA and its mandate to integrate individuals with disabilities is a major priority of the Civil Rights Division. The ADA protects individuals with disabilities from discrimination in public accommodations, including the rental office at issue in this case.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777, or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in court.
Jury Convicts Former Dental Clinic Owners of $1 Million Health Care, Payroll Tax FraudRead the Press Release
SPRINGFIELD, Mo. – U.S. Attorney Tim Garrison and Missouri Attorney General Eric Schmitt announced today that a Marshfield, Mo., couple has been convicted by a federal trial jury of multiple fraud schemes totaling more than $1 million that involved Medicaid payments to their dental clinics, failing to pay over payroll taxes and collecting unemployment benefits they were not entitled to receive.
Pamela M. Van Drie, 59, and her husband, Lorin G. Van Drie, 60, were found guilty on Wednesday, Feb. 20, 2019, of all 40 counts contained in a Nov. 2, 2016, federal indictment.
“When criminals cheat federal programs like Medicaid, they are stealing from the pockets of honest tax-paying citizens,” said Garrison. “This multi-faceted investigation exposed hundreds of fraudulent Medicaid claims and a payroll tax fraud conspiracy that totaled more than $1 million. We are pleased to partner with the Missouri Attorney General’s Office to combat health care fraud and hold accountable those who abuse the system for their own benefit.”
“Those who rig the Medicaid system for unlawful personal gain will be held accountable, and my office’s dedication to this case illustrates how we’re continually working towards bringing fraudsters and scammers to justice,” said Schmitt, “I’m thankful to have such a talented team fighting tirelessly to protect all 6 million Missourians, and I’m grateful to have worked alongside U.S. Attorney Garrison and his talented team.”
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Kansas City, Mo., said, “Our office will continue to pursue those individuals who bill HHS-funded programs for services that were never rendered or for services provided to ineligible beneficiaries, as such actions place an unnecessary financial burden on both our programs and the American taxpayer.”
“Withholding and properly remitting employment taxes is the responsibility of all business owners,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “As demonstrated by these guilty verdicts, choosing to spend withheld employment taxes on a luxurious lifestyle will not be tolerated. IRS Criminal Investigation and the Department of Justice will vigorously investigate and prosecute those who commit employment tax fraud.”
Pamela and Lorin Van Drie were the owners of All About Smiles, LLC, a Springfield company that provided dental services at clinics in Springfield (until it closed in November 2015), Mountain Grove, Mo., (until it closed in October 2014) and Bolivar, Mo. (until it closed in March 2014). They also owned PL Family Management Company, LLC, which managed the staff for those clinics.
$885,748 Health Care Fraud Conspiracy
Pamela Van Drie participated in a conspiracy to commit health care fraud from Oct. 6, 2010, to Aug. 19, 2015. This conspiracy consisted of a fraud scheme related to dentures and other dental services and a fraud scheme related to orthodontic appliances. Both fraud schemes involved fraudulent Medicaid claims and payments.
Pamela Van Drie and Dr. James R. Dye, a dentist at the clinics, arranged for All About Smiles to provide dentures and other dental services to adults who did not qualify for Medicaid reimbursement. They submitted claims to Medicaid for those dentures and other dental services, knowing that Medicaid’s requirements were not met.
Pamela Van Drie, through All About Smiles, submitted and received $720,048 on numerous claims for dentures and other dental services that lacked the required written referral from a physician.
Additionally, Pamela Van Drie and Dye purchased Ortho-Tain orthodontic appliances (designed to straighten teeth without braces) for approximately $50 each, provided them to Medicaid pediatric beneficiaries and billed each such appliance to Medicaid as a speech aid prosthesis for approximately $695. They knew the Ortho-Tain appliances should have been billed to Medicaid as orthodontic services; they also knew Medicaid did not cover orthodontic services unless the Medicaid program’s requirements were met and they received precertification, which required review by a dentist/orthodontist employed by Medicaid. They billed the Ortho-Tain appliances as speech aid prostheses in order to bypass the precertification requirement.
Between Oct. 6, 2010, and Aug. 19, 2015, Pamela Van Drie submitted and received payment for approximately 241 claims submitted for speech aid prosthesis. On each claim, All About Smiles (or its predecessor company) was paid between $675 to $695, for an approximate total amount of $165,700.
Dye pleaded guilty on Feb. 11, 2016, to health care fraud in a separate but related case.
$194,751 Payroll Tax Fraud ConspiracyPamela and Lorin Van Drie participated in a conspiracy to defraud the government by failing to pay over the IRS payroll taxes from Jan. 31, 2013, to Jan. 31, 2015. Although payroll taxes were withheld from the paychecks of employees at All About Smiles and PL Family Management Company, the Van Dries failed to pay over to the IRS approximately $194,751 in payroll taxes.
The Van Dries diverted a substantial amount of money from their businesses during this period. They caused All About Smiles and PL Family Management Company to make thousands of dollars for their personal benefit while failing to pay over to the IRS payroll taxes withheld from their employees’ paychecks.
Rather than paying the payroll taxes due and owing, the Van Dries purchased and made payments on a 2013 Tracker boat and trailer, a recreational vehicle, multiple vehicles (including a 2010 Hummer and a 2009 Mercedes), several utility trailers, two golf carts, a motorcycle, expenses associated with two homes and family vacations in Florida, and a pulling truck called “Momma’s Money,” which Pamela Van Drie’s son used in pulling competitions throughout Missouri.
Additional Charges
In addition to these two criminal conspiracies, Pamela Van Drie was found guilty of eight counts of health care fraud related to fraudulent claims for speech aid prosetheses, 10 counts of health care fraud related to fraudulent claims for dentures and other dental services and one count of theft of public money related to $3,520 in unemployment benefits that she was not entitled to receive while working full-time at All About Smiles.
In addition to the payroll tax conspiracy, Lorin Van Drie also was found guilty of 18 counts of failure to pay over employment tax and one count of theft of public money related to $11,840 in unemployment benefits that he was not entitled to receive while working at his own construction company and doing maintenance work at All About Smiles.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about one and half hours before returning the guilty verdicts to U.S. District Judge M. Douglas Harpool, ending a six-day trial that began Monday, Feb. 11, 2019.
Under federal statutes, Pamela Van Drie is subject to a sentence of up to 10 years in federal prison without parole on each count of conviction except the payroll tax conspiracy, which carries a maximum penalty of five years in federal prison without parole. Lorin Van Drie is subject to a sentence of up to 10 years in federal prison without parole for theft of unemployment benefits and five years in federal prison without parole on each additional count of conviction. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorneys Cindi S. Woolery and Steve Mohlhenrich and Special Assistant U.S. Attorney Shannon Kempf of the Missouri Attorney General’s Office. It was investigated by Health and Human Services – Office of Inspector General, the Missouri Attorney General’s Office Medicaid Fraud Control Unit and IRS-Criminal Investigation.
Jefferson City Woman Pleads Guilty to Embezzling $65,000 from EmployerRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., woman pleaded guilty in federal court today to embezzling more than $65,000 from her employer.
Laura Lynn Winge, 47, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to a federal information that charges her with one count of bank fraud and one count of theft from an employee benefit plan.
Winge worked as a bookkeeper for Turk’s Construction, Inc., a residential construction company, and an affiliated company, Pools Unlimited, LLC, which builds in-ground swimming pools and spas, from July 2009 until she left employment on March 11, 2016. Company employees participated in an IRA plan that was administered by Winge.
By pleading guilty today, Winge admitted that she withheld $56,876 of the IRA plan deferrals from employees’ payroll from Jan. 1, 2013, to March 31, 2016, but never forwarded them to their individual accounts. Winge also admitted that she never forwarded the required employer matching contributions of $38,913 for the same time period. Instead, Winge kept those funds in the companies’ operating accounts, and used the employees’ deferrals for her own use and the use of another, including approximately $49,214 for her own personal benefit.
Winge’s theft consisted of $12,871 in unauthorized payroll checks to herself, $19,073 in unauthorized pay by inflating her hours worked, $5,447 in unauthorized spending on the companies’ credit card, and $11,822 in health insurance premiums for her dependents. Winge also admitted that she obtained $16,316 in services and products from the companies and a related company (Midwest Welding) for which she did not pay, but amended the invoices to show paid. Winge’s theft from the companies totaled $65,531.
Under federal statutes, Winge is subject to a sentence of up to 35 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Department of Labor – Employee Benefits Security Administration and Office of Inspector General, and the Cole County, Mo., Sheriff’s Department.
Jacksonville Woman Sentenced to More Than Five Years for Stealing Handguns from Local Gun StoresRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Bruquanna Griffin (22, Jacksonville) to 5 years and 10 months in federal prison for stealing firearms and for conspiring to steal firearms from federally licensed firearms dealers. Griffin had pleaded guilty on March 12, 2018.
According to court documents, throughout the summer of 2017, Griffin and another individual worked together to steal firearms from at least three Jacksonville gun stores. At each location, a co-conspirator distracted the sales staff while Griffin snuck behind the counter to steal handguns. She stole as many as five guns from a single location.
On August 23, 2017, Griffin was arrested after she attempted to leave a gun store with two stolen pistols in her purse. Initially, she provided a false name to the arresting officers. Eventually, Griffin admitted her involvement in the theft ring. She explained to the officers that, after she stole the firearms, her co-conspirator kept some of them, sold others, and traded others for drugs.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Tommy Robert Spells, also known as Thomas Spell, 32, of Jackson, pled guilty today before U.S. District Judge Carlton W. Reeves to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On July 24, 2018, Jackson Police officers conducted a traffic stop on a vehicle driven by Spells after he made an illegal U-turn at the intersection of Highway 80 and Robinson Street in Jackson. Spells, a convicted felon, was found to be in possession of a Hi-Point .45 caliber pistol, which was later determined to be stolen. Spells was previously convicted of statutory rape in Hinds County.
Spells will be sentenced on May 24, 2019, by Judge Reeves, and faces a maximum penalty of ten years in prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an 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 through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is 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.
Illegal Charter Operator Sentenced Federally for Violating Coast Guard OrderRead the Press Release
An illegal charter operator was sentenced in federal court yesterday for violating a U.S. Coast Guard Captain of the Port Order.
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement.
Randy Postma, 71, of Davie, previously pled guilty to violating a Captain of the Port Order, in violation of Title 33, United States Code, Section 1232(b)(1)). He was sentenced by U.S. District Judge Cecilia M. Altonaga to three years of probation, including 180 days of home detention, and a $4,000 fine.
According to the court record, Postma is the registered owner of the 147-foot motor yacht GOLDEN TOUCH II. On or about August 19, 2018, the Coast Guard suspected that the GOLDEN TOUCH II yacht was operating illegally as a charter vessel. Illegal charters can cause accidents resulting in property damage, injuries and death. Given these concerns, the Coast Guard issued Postma a Captain of the Port Order on August 24, 2018, requiring him to immediately cease operation of the GOLDEN TOUCH II yacht as a passenger vessel until the defendant was in compliance with all federal laws and regulations. Postma was advised that his failure to comply with the Captain of the Port Order could subject him to civil penalties, imprisonment and a fine.
Thereafter, on or about September 1, 2018, Postma continued to operate the GOLDEN TOUCH II as an illegal charter, in violation of the Captain of the Port Order.
“The operation of illegal charters poses a safety risk to passengers and the public at large,” stated U.S. Attorney Fajardo Orshan. “The U.S. Attorney’s Office will continue to partner with the U.S. Coast Guard to protect our South Florida residents and visitors. We will continue to forge ahead with federal charges against those who knowingly violate laws and regulations that endanger lives and compromise legitimate business practices.”
“Those who seek to dodge federal regulations and take shortcuts by operating illegally willfully put their passengers at risk and will be held accountable,” said Capt. Ladonn Allen, Chief of Coast Guard 7th District Prevention Department. “This sentence demonstrates the aggressive posture the Coast Guard and our partners from the U.S. Attorney’s Office have taken in the detection of illegal passenger vessels and in seeking maximum enforcement actions for violations.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the CGIS in this matter. This case was prosecuted by Coast Guard Special Assistant U.S. Attorney Philip Jones.
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.
Illegal Alien Pleads Guilty to Striking Federal AgentRead the Press Release
CORPUS CHRISTI, Texas - A 26-year-old undocumented alien from Guatemala has admitted he assaulted a Border Patrol (BP) agent and illegally entered the country, announced U.S. Attorney Ryan K. Patrick.
Edison Sory Velasquez-Velasquez entered a guilty plea today before U.S. Magistrate Judge Jason B. Libby.
On Dec. 18, 2018, a group of illegal aliens were spotted walking on the east side of highway 281 on the Viboras Pasture in the King Ranch in Encino. BP tracked the group, but as they closed in, the aliens began to run in all directions.
As one of the agents was apprehending two of the illegal aliens, Velasquez-Velasquez appeared from a thick group of trees. The agent grabbed him and gave commands to stop and get on the ground. Velasquez-Velasquez turned on the agent and swung a plastic bag that contained canned foods and hit the agent in the face.
Velasquez-Velasquez continued to run, was given verbal commands to stop, but refused. The injured agent was able to catch up to him and attempted to subdue him. Velasquez-Velasquez continued to resist and swung at the agent again. The agent was able to evade the second attack and gained control and arrested Velasquez-Velasquez.
In total, agents arrested eight illegal aliens, all of whom were transported to the Falfurrias BP Checkpoint for processing.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing May 16, 2019. At that time, Velasquez-Velasquez faces up to eight years imprisonment and a maximum $250,000 fine.
He has been and will remain in federal custody pending the sentencing hearing.
BP and the FBI conducted the investigation. Assistant U.S. Attorney Cody Barnes is prosecuting the case.