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14 February 2019
San Francisco Man Sentenced to Twelve and A Half Years in Prison for Scheme to Use Internet to Entice A Minor to Engage in Sexual ActivityRead the Press Release
SAN FRANCISCO – Roger Dale Boshers was sentenced today to 150 months in prison for coercing and enticing a minor to engage in sexual activity, announced United States Attorney David L. Anderson and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable William H. Orrick, United States District Judge.
Boshers, 64, of Bethel Island, Calif., pleaded guilty to the charge on November 29, 2018. According to the plea agreement, Boshers admitted that between April 6, 2018, and April 11, 2018, he exchanged messages online with a person he believed was a 14-year-old girl. Boshers sent this person sexually explicit messages and a photograph of his genitals. Ultimately, Boshers arranged to meet the purported 14-year-old girl on April 11, 2018, to engage in sexual activity. When Boshers arrived at the prearranged meeting location, he was stopped by law enforcement officers and placed under arrest. Boshers later discovered that the person he had exchanged messages with was in fact an undercover police officer.
In addition, Boshers acknowledged that on October 19, 2017, he possessed multiple electronic devices, including three laptops and several hard drives, on which he stored images of females he believed to be under the age of eighteen engaged in sexually explicit conduct. Boshers also admitted that as early as August 31, 2017, he used an internet-based messaging application to distribute at least three pictures of children engaged in sexually explicit activity.
On May 31, 2018, a federal grand jury returned a three-count indictment charging Boshers with one count of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b)(1); one count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2); and one count of coercion and enticement of a minor to engage in sexual activity, in violation of 18 U.S.C. § 2422(b). Boshers pleaded guilty to the coercion and enticement charge and the other two charges were dismissed. As a condition of his plea agreement, Boshers was ordered to pay restitution to the victims identified in the child pornography counts.
In addition to the prison term, Judge Orrick ordered that Boshers serve a life term of supervised release and to register as a sex offender. Boshers has been in custody since his April 11, 2018, arrest and will begin serving his sentence immediately.
Assistant United States Attorney Sloan Heffron is prosecuting the case with the assistance of Kimberly Richardson. This prosecution is the result of an investigation by Homeland Security Investigations, the San Francisco Police Department, the Contra Costa County District Attorney’s Office, the Contra Costa County Sheriff’s Office, and the Silicon Valley Internet Crimes Against Children Task Force.
Members of the public who have information regarding suspected child predators or suspicious activity should contact HSI through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form at https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
San Diego Physical Therapy Clinics’ Owners Pay $450,000 to Resolve Fraud AllegationsRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – February 13, 2019
Two San Diego physical therapy clinics and their owners have paid $450,000 to resolve allegations that they fraudulently billed military healthcare provider TRICARE for medical services that were supposedly performed by qualified medical doctors, but were actually provided by unqualified and unauthorized employees.
South Bay Physical Medicine, Inc. and Direct Health Medical Center, Inc. d/b/a San Diego Spine and Rehabilitation were physical therapy clinics. Brett Allan, Sr., Brett Allan, Jr. and Jeff Allan owned the clinics.
TRICARE is the health care program for uniformed service members, retirees, and their families. TRICARE specifically limits billing privileges to enrolled providers for a variety of reasons, including the safety of patients. Some incidental services rendered by non-authorized providers can be billed as “incident to” the services of an enrolled physician, but only under rare circumstances and when the physician provides direct supervision. The United States alleged that the Allans violated the False Claims Act by billing TRICARE for physical therapy services provided solely by unqualified and unauthorized personnel and without the necessary physician supervision.
“The United States Attorney’s Office works hard to safeguard the integrity of the TRICARE program and the safety of our soldiers and their family members,” said U.S. Attorney Robert Brewer. “Health care fraud hurts the entire health care system, from taxpayers down to honest providers and innocent patients. We are committed to using all available remedies, both civil and criminal, to combat health care fraud.”
“The announced resolution is a significant victory because the integrity of the U.S. military's health care program is of utmost importance to our military personnel and their families,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney's Office to combat health care fraud and, more specifically, bring to justice those who seek to defraud the military health care system.”
“When health care providers participate in fraudulent billing schemes in order to increase profits, they steal from the pockets of the taxpayer and jeopardize federal healthcare programs,” said John Brown, FBI Special Agent in Charge. “San Diego is a military town and military personnel represent a large part of our community. It goes without saying that the FBI is committed to working with our partners to aggressively investigate health care providers that defraud the DoD, in order to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”
The Government’s resolution of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, and abuse can be reported at https://www.tricare.mil/ContactUs/ReportFraudAbuse.
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Defense Health Agency Program Integrity Office.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Restaurant Owner Sentenced to A Year in Prison for Tax Evasion and Employing Illegal AliensRead 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 Sergio Ramses Mucino, 48, of Buffalo, NY, who was convicted of tax evasion and conspiracy to unlawfully employ more than ten aliens during any 12-month period, was sentenced to serve 12 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant owned and operated multiple restaurants in the Western New York area, including: Don Tequila, located at 73 Allen Street, Buffalo; El Agave located at 3870 Union Road, Cheektowaga, NY; Agave, located at 765 Elmwood Avenue, Buffalo; and La Divina, located at 2896 Delaware Avenue, Kenmore, NY.
For the tax years 2013, 2014, and 2015, Mucino owed substantial federal income tax as a result of income generated at the his restaurants through his employment of illegal aliens. However, the defendant concealed cash payments, failed to collect payroll taxes, paid employees with cash, and placed assets in the names of others, to evade payment of income taxes totaling $1,006,161.
Between March of 2014 and October 16, 2016, Mucino, along with co-defendants Jose Sanchez-Ocampo and Marguin Sanchez, conspired to hire at least 10 illegal aliens to work in the defendant’s restaurants. In furtherance of the conspiracy, Mucino provided money to Sanchez to purchase homes where the alien employees would live, including 149 North End in Kenmore, and 4024 Union Road in Cheektowaga. The defendant also paid rent for nine apartments where the alien employees lived. The two houses and nine apartments were within close proximity to the defendant’s restaurants.
Mucino is forfeiting nearly $40,000 in cash that was seized from his restaurants, a 2009 Porsche Boxster that the defendant purchased with his illegal profits, and another $1,000,000 representing additional profits made from operating the restaurants against the laws of the United States. Previously, Mucino forfeited two houses, which housed some of the illegal workers, as well as another $35,000 in cash by managers of Mucino’s restaurants.
Jose Sanchez-Ocampo and Marguin Sanchez were previously convicted.
“Those employers who evade immigration laws and put their own financial interests above the responsibilities incurred by all citizens of our country do great harm to the fabric of our Nation,” noted U.S. Attorney Kennedy. “While immigration and economic opportunity are part of the warp of our Nation’s fabric, their value exists only when interwoven into the weft of unyielding principles such as fairness and respect for the law. Through this prosecution we seek to reinforce our adherence to those important and enduring principles, as without them, the fabric of our Nation will be frayed into a tattered collection of individual threads of self-interest.”
“Today’s outcome marks the successful culmination of a complex worksite investigation and demonstrates our intent to hold businesses accountable who ignore their employment and tax obligations,” said Kevin Kelly, HSI Buffalo Special Agent-in-Charge. “Employers who knowingly hire unauthorized workers are not only contributing to the magnet that fuels illegal immigration, but these illegal practices also undercut legitimate businesses who play by the rules.”
Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly, the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office, and the New York State Department of Taxation and Finance, under the direction of Executive Deputy Commissioner Nonie Manion.
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Registered Sex Offender Sentenced to 20 Years in Prison for Attempting to Coerce a MinorRead the Press Release
COLUMBUS, Ohio – John C. Fortner, 44, of Chillicothe, was sentenced in U.S. District Court to 240 months in prison for attempting to coerce a minor while registered as a sex offender.
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 Franklin County Sheriff Dallas Baldwin, as well as members of both the FBI’s Cyber Crimes Task Force and the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, a task force officer with the FBI Cyber Crimes Task Force was posing undercover online as the mother of minor children. In August 2017, the officer posted a web advertisement stating he was looking to chat with people interested in “taboo fetishes.”
Fortner emailed the officer asking “can we do your daughter or son?”
Fortner asked to be connected to “any other that would let me f***” and began communicating with a second undercover officer, who investigates cyber crime with the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force. He told that officer he heard the persona had a nice daughter who was 13 years old. He asked “you and your daughter play with guys much?” Fortner also asked if the daughter was cute and offered to meet with them.
Fortner and the officer planned to meet in a public place, and, if the meeting went well, to later meet in a hotel for sexual purposes.
On August 21, 2017, Fortner asked the officer to pick him up at a gas station in Chillicothe for their meeting. Fortner was subsequently arrested.
Fortner was convicted in 2015 in Texas for possession of child pornography and in 2016 in Belmont County, Ohio for importuning and attempted unlawful sexual conduct with a minor. As a result, he was a registered sex offender at the time of his new offense.
Fortner pleaded guilty in this current case in May 2018.
U.S. Attorney Glassman commended the cooperative investigation by the FBI Cyber Crimes Task Force and the Franklin County ICAC, as well as Assistant United States Attorneys Heather A. Hill and Noah R. Litton, who are representing the United States in this case.
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Recently Released Felon Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Christopher Campbell, 30, of Jackson, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana K. Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 28, 2018, Campbell was found in possession of a firearm after he was stopped by officers for driving under the influence. Campbell was previously convicted of house burglary on April 17, 2014, in Hinds County and was sentenced to serve 25 years in the custody of the Mississippi Department of Corrections, with eight of those years suspended. Campbell was released from MDOC less than one year before being arrested for the current charge.
Campbell will be sentenced by Judge Reeves on May 15, 2019, at 9:30 a.m., where he faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, a nationally-recognized initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department investigated the case. It is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Produce Importer Convicted in Brooklyn Federal Court of Conspiring to Import Cocaine in a Shipment of Chili PeppersRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn returned a guilty verdict against Humberto Baez for conspiring to import and distribute cocaine, and for possessing with intent to distribute cocaine, in connection with his participation in a scheme responsible for smuggling 16 kilograms of cocaine into the United States through the Dominican Republic in February 2018. When sentenced by United States District Judge Jack B. Weinstein, the defendant faces a mandatory minimum sentence of 10 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Field Division (DEA), announced the verdict.
“The defendant’s scheme to conceal 16 kilograms of cocaine in a shipment of chili peppers wasn’t such a hot idea, and with today’s verdict, he has been held responsible for his crimes,” stated United States Attorney Donoghue. “I commend the prosecutors and the Drug Enforcement Administration agents for their excellent work in preventing illegal narcotics from being distributed in our country.”
“Drug traffickers go to extraordinary lengths to bring poison into our country,” stated DEA Special Agent-in-Charge Donovan. “The DEA has seen smuggling groups conceal drugs in bananas, floor tiles, exotic statues and even animals. This conviction sends a message to drug trafficking organizations that law enforcement is on watch. I applaud the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners in their diligent efforts to bring Baez and other drug traffickers to justice.”
Between August 2016 and March 2018, Baez, a produce importer based in Pennsylvania, conspired with others to import cocaine, hidden inside a shipping container, into the United States. In furtherance of the conspiracy, Baez contacted an individual who, unbeknownst to Baez was cooperating with the DEA, to use the individual’s importing company as a front to transport cocaine from Baez’s source of supply in the Dominican Republic. Baez and his co-conspirators then set up two “dry run” shipments containing only produce into the Red Hook Terminal in Brooklyn, to establish the appearance of a legitimate business relationship between the exporter and importer and not attract scrutiny when subsequently shipping cocaine. In late February 2018, a third shipment arrived in Miami, Florida with approximately 16 kilograms of cocaine concealed in cardboard boxes containing chili peppers. Baez informed the cooperator that the third shipment contained “ripe tomatoes,” using agreed upon code words for cocaine, and instructed him to transport the narcotics by truck to Baez’s warehouse in Pennsylvania. On March 1, 2018, law enforcement officers searched the container and seized the hidden cocaine.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Attorneys Nomi D. Berenson and Erin M. Reid are in charge of the prosecution.
The Defendant:
HUMBERTO BAEZ
Age: 50
Lancaster, PennsylvaniaE.D.N.Y. Docket No. 18-cr-168 (JBW)
Prime Healthcare Services and CEO, Dr. Prem Reddy, to Pay $1.25 Million to Settle False Claims Act AllegationsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Prime Healthcare Services, Inc. (“Prime”) and Prime’s Founder and Chief Executive Officer, Dr. Prem Reddy, have agreed to pay the United States $1.25 million to settle allegations that two Prime hospitals in Pennsylvania – Roxborough Memorial Hospital in Philadelphia and Lower Bucks Hospital in Bristol – knowingly submitted false claims to Medicare by engaging in the following conduct: (1) admitting patients to the hospital for overnight stays who required only less costly, outpatient care and (2) billing for more expensive patient diagnoses than the patients had (the latter practice known as “up-coding”).
“We are committed to ensuring that hospitals, companies that own and operate them, and their executives appropriately bill Medicare,” said U.S. Attorney McSwain. “Charging the government for more costly services than what the patient actually needs and billing the government for more serious diagnoses than what the patient actually has is a waste of taxpayer dollars. Those who engage in these practices will be held accountable.”
Headquartered in Ontario, California, Prime is one of the largest hospital systems in the nation, with 45 acute-care hospitals located in 14 states. Prime acquired Roxborough Memorial Hospital on February 22, 2012, and Lower Bucks Hospital on October 3, 2012.
The Settlement resolves allegations that Prime submitted or caused the submission of fraudulent claims to Medicare. Specifically, from the date that Prime acquired Roxborough and Lower Bucks through September 30, 2013, under Prime management, Roxborough and Lower Bucks hospitals admitted emergency room Medicare patients for costly and medically unnecessary one- and two-day overnight hospital stays, instead of treating the patients in less costly outpatient service or keeping them under observation. In addition, from the dates of acquisition through December 31, 2014, the hospitals upcoded inpatient diagnoses (i.e., billed Medicare for more serious medical conditions than the patients actually had) to increase Medicare payments.
As part of a separate lawsuit in the Central District of California, Prime and Dr. Reddy paid the United States $65 million dollars in August 2018 to settle similar Medicare fraud allegations arising out of 14 Prime hospitals in California.
Also in August 2018, Prime, Roxborough Memorial Hospital, Lower Bucks Hospital, and Dr. Reddy entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Prime is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to Medicare beneficiaries.
“We expect health care companies to accurately bill federal health care programs for services they provide, not pad profits by charging for more expensive services than were actually provided,” said Maureen Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, Philadelphia Regional Office. “Our investigators will ensure those who launch such deceptive schemes are held accountable.”
This settlement resolves a lawsuit filed under the False Claims Act (FCA) in the U.S. District Court for the Eastern District of Pennsylvania by an employee and former employee of Roxborough Memorial Hospital. Under the qui tam or whistleblower provisions of the FCA, private citizens are permitted to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The FCA also permits the government to intervene and take over the lawsuit.
“We thank the relators for their invaluable contribution in this case. Together with their lawyers, they provided vital assistance to the government throughout this case. Without information from citizens like the relators, detecting fraud and conserving government program funds would be far more difficult,” said U.S Attorney McSwain.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Assistant U.S. Attorneys Jacqueline Romero and Judith Amorosa, and Health Care Fraud auditor Dawn Wiggins, in coordination with Senior Trial Counsel Marie Bonkowski of the Department of Justice’s Civil Division’s Commercial Litigation Branch
The case is captioned United States ex rel. Jane Doe v. Prime Healthcare Services, Inc., et al., No. 14-cv-1695 (E.D.Pa.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Pittsburgh Man Sentenced to 15+ Years in Prison for Armed Bank Robbery Spree in Allegheny and Beaver CountiesRead the Press Release
PITTSBURGH – Bryan Campbell, 27, of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years and one month in prison, to be followed by three years of supervised release on his convictions for conspiring to rob three area banks, armed bank robbery, attempted armed bank robbery and brandishing a firearm during and in relation to a crime of violence, United States Attorney Scott W. Brady announced today.
On February 13, 2019, United Stated District Court Judge Cathy Bissoon imposed the sentence on Campbell. Campbell was initially charged by criminal complaint on March 8, 2019 and has been detained since his initial appearance.
According to information presented to the court, Campbell with co-defendant Daymon Ottey conspired to rob the S&T Bank in Verona, PA, on March 7, 2017, the First National Bank in Verona, PA, on May 1, 2017, and the Huntington Bank in Baden, PA, on July 22, 2017. Campbell robbed the S&T Bank in Verona, PA, on March 7, 2017 using a silver firearm to hold bank employees at gunpoint. Ottey acted as the getaway driver for this robbery using his girlfriend’s vehicle. On May 1, 2017, Campbell entered the First National Bank in Verona, PA with the same silver firearm and held employees at gun point demanding money. Campbell then scaled the teller station and entered the bank’s vault taking over $84,000 before fleeing. After this robbery, Campbell and Ottey split the proceeds, enabling Ottey to buy a new Jeep Cherokee vehicle. Campbell’s girlfriend also posted photos on social media of lavish meals, jewelry and vacations provided to her by Campbell. This information helped FBI to identify Campbell as a possible suspect. Finally, on July 22, 2017, Ottey drove Campbell in the Jeep Cherokee purchased with the prior bank robbery proceeds to the Huntington Bank in Baden, PA. Campbell entered the bank with the same silver firearm and attempted to rob it but was interrupted when an Economy Police Department vehicle pulled in the driveway. Campbell fled without receiving any money.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the Government.
The FBI Pittsburgh’s Violent Crimes Task Force, with assistance from the Plum Police Department, Verona Police Department, Economy Borough Police, Allegheny County Sherriff’s Department, and Shaler Township Police Department conducted the investigation leading to the indictment in this case.
Pittsburgh Man Pleads Guilty to Cocaine Trafficking ChargesRead the Press Release
PITTSBURGH - A 68-year-old resident of Pittsburgh, PA, pleaded guilty in federal court to charges regarding his trafficking of cocaine, United States Attorney Scott W. Brady announced today.
Walter John Amman, III, pleaded guilty to two counts before President United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Amman’s 77 year-old co-defendant had been purchasing kilogram level amounts of cocaine for more than two decades. The co-defendant would process the cocaine by packaging it in smaller quantities and converting some into crack. In more recent years, the current defendant would help the co-defendant with the processing, packaging and distribution of the cocaine. Two controlled purchases of cocaine were made from Amman and the DEA, IRS and Pittsburgh Police obtained search warrants for locations attributable to Amman and the co-defendant. The resulting January 11, 2017 searches resulted in law enforcement locating items which included:
- In the co-defendant’s residence: cocaine prepackaged for sale and color-coded for size; multiple firearms and thousands of rounds of ammunition; large amounts of cash; multiple vehicles registered to Amman and his family
- In the co-defendant’s garage: amounts of powder cocaine; numerous inositol bottles and material to convert cocaine into crack; large amounts of cash; 3 pistols (including one registered to Amman); and a safe imbedded into the concrete floor
- At Amman’s residence; firearms; prepackaged amounts of crack and cocaine in a jacket with Amman’s name on it; keys to a truck (in the jacket); in the truck was approximately $1,000 and additional prepackaged cocaine.
The co-defendant and Amman both utilized the same color-coded bread-tie system to signify the quantities in the baggies. In this way, the co-defendant was both a buyer of large quantities and a street-level dealer, keeping all of the middleman profits for himself. Amman agreed that he himself was responsible for between 700 grams and one kilogram of cocaine, as well as the 5.767 grams of crack cocaine found at his property.
Chief Judge Hornak scheduled sentencing for June 7, 2019 at 10:30 am. The law provides for a total sentence of up to 40 years in prison, a fine of up to $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain incarcerated pending his sentencing and remanded the defendant back to the custody of the United States Marshal Service.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Internal Revenue Service (IRS) and the Drug Enforcement Administration (DEA) conducted the investigation that led to the prosecution of Walter John Amman, III, with the valuable assistance of the Pittsburgh Bureau of Police.
Pine Ridge Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Elmer Yellow Hair III, age 23, was sentenced on February 11, 2019, to 14 months in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Yellow Hair was indicted by a federal grand jury in July 2018. The conviction stems from Yellow Hair engaging in sexual intercourse with a 15 year old female on May 9, 2018, at Pine Ridge.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Yellow Hair was immediately turned over to the custody of the U.S. Marshals Service.
Parkersburg man admits to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jesse N. Perez, of Parkersburg, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Perez, age 36, pled guilty to one count of “Conspiracy to Distribute and to Possess With the Intent to Distribute Controlled Substances.” Perez admitted to distributing methamphetamine, heroin, cocaine, and cocaine base in Wetzel County, as well as the Southern District of West Virginia, Ohio, and Georgia from 2016 to April 2018.
Perez 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.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Owner of Colorado Business Sentenced to Prison for Tax CrimesRead the Press Release
A Colorado paving company owner was sentenced to prison yesterday for failure to pay income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Douglas A. Wieland was sentenced to 12 months and one day in prison by U.S. District Judge R. Brooke Jackson in Denver, Colorado. In September 2018, Wieland pleaded guilty to two counts of failure to pay income taxes, in violation of 26 U.S.C. § 7203.
According to court documents, Wieland owned and operated Performance Paving, a company that performed asphalt and concrete work. Wieland admitted that, from April 1999 through December 2017, he did not make any payments toward his income taxes. He also admitted that he took steps to conceal his income and assets to prevent the IRS from seizing his assets. Wieland deposited over $1.8 million into a “warehouse bank” account and then used that account to pay for his personal expenses. The purpose of a “warehouse bank” is to maintain the financial privacy of all “account holders” by commingling the funds of numerous account holders in a single bank account, usually at a domestic bank in the United States. Wieland also cashed checks his customers gave him for his services, and admitted at a court proceeding held in Adams County, Colorado, that he “cashed a check somewhere outside the box so the IRS doesn’t steal it from my bank.”
In addition to the term of imprisonment imposed, Wieland was ordered to pay restitution in the amount of $166,658.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Lori A. Hendrickson and Sarah A. Kiewlicz, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.
Owner of Home Construction Company Charged with PerjuryRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man was charged today with lying during proceedings before the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA), U.S. Attorney Craig Carpenito announced
Robert Riley, 42, of Far Hills, New Jersey, is charged with one count of perjury. Riley was scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
Riley owns RSR Home Construction in Bernardsville, New Jersey. Riley became the subject of an OSHA safety investigation after two separate incidents in which workers fell from a roof and were seriously injured. The workers had purportedly been tasked by Riley to perform roof repairs on a barn structure without proper training or safety equipment. As part of its investigation, OSHA took Riley’s deposition, at which he testified under oath that he never authorized anyone to perform roof repairs. Text messages from Riley to construction workers reveal that he instructed the very roof work that precipitated the fall incidents.
The perjury charge carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka; Occupational Safety and Health Administration, under the direction of Acting Regional Administrator Richard Mendelson; and Office of the Solicitor, Region II, under the direction of Regional Solicitor Jeffrey S. Rogoff.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John A. Azzarello Esq., Morristown, New Jersey
One Chinese National and One American Indicted in East Tennessee for Conspiracy to Commit Theft of Trade Secrets and Wire FraudRead the Press Release
GREENEVILLE, Tenn. – On February 12, 2019, a grand jury sitting in Greeneville, Tennessee, returned an nine-count indictment against Xiaorong You, a/k/a Shannon You, 56, of Lansing, Michigan, and Liu Xiangchen, 61, of Shandong Province, China, for conspiracy to commit theft of trade secret information (TSI) related to formulations for bisphenol-A-free (BPA-free) coatings. You was also indicted on seven counts of theft of trade secrets and one count of wire fraud.
The BPA-free TSI allegedly stolen by these individuals belonged to multiple owners and cost an estimated total of $119,600,000 to develop. Until recently, bisphenol-A (BPA) was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to the potential for BPA to be harmful to human health, companies began searching for BPA-free alternatives. These alternatives are difficult and expensive to develop.
From December 2012 through August 31, 2017, You was employed as Principal Engineer for Global Research by a company in Atlanta, Georgia, which had agreements with numerous companies to conduct research and development, testing, analysis, and review of various BPA-free technologies. Due to her extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of employees with access to TSI belonging to the various owners. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for a company in Kingsport, Tennessee, where she was one of a limited number of employees with access to TSI belonging to that company.
Details of the conspiracy are included in the indictment on file with the U.S. District Court. The indictment alleges that You, Xiangchen, and a third co-conspirator formulated a plan in which You would exploit her employment with the two American employers to steal TSI and provide the information for the economic benefit of persons other than the TSI owners, including a Chinese company that would manufacture and profit from products developed using the stolen TSI.
“Our office is committed to working closely with our federal, state and local partners to identify and prosecute those who engage in illegal and deceptive practices to steal trade secret and protected information from companies who spend millions of dollars to develop it. Not only can theft of this information be potentially devastating to our American companies, it could also pose a threat to our overall national and economic security,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
"As this indictment highlights, theft of trade secrets from American companies is an emerging economic threat, even here in East Tennessee," said Special Agent in Charge Troy Sowers, FBI Knoxville Field Division. "The tireless work of our agents and prosecutors in this case underscores the FBI's commitment to protecting American ingenuity."
“The conduct alleged in today’s indictment exemplifies the rob, replicate and replace approach to technological development,” said Assistant Attorney General John C. Demers, National Security Division. “Xiaorong You is accused of an egregious, premediated theft and transfer of trade secrets worth more than $100 million for the purpose of setting up a Chinese company that would compete with the American companies from which the trade secrets were stolen. Unfortunately, China continues to use its national programs, like the ‘Thousand Talents,’ to solicit and reward the theft of our nation’s trade secrets and intellectual property, but the Justice Department will continue to prioritize investigations like these, to ensure that China understands that this criminal conduct is not an acceptable business or economic development practice.”
“The facts laid out in this indictment show the conspirators engaged in blatant criminal activity,” said FBI Executive Assistant Director Jay S. Tabb, Jr. “They didn't stop at going after technical secrets belonging to just one company. They allegedly targeted multiple companies and made off with trade secrets at an estimated value of almost 120 million dollars. As this case demonstrates, the FBI is determined to do everything possible to bring to justice those who try to steal secrets belonging to American companies.”
Assistant U.S. Attorney TJ Harker and National Security Division Trial Attorney Matthew Walczewski will prosecute the case for the U.S. Attorney's Office for the Eastern District of Tennessee. The investigation was conducted by the FBI.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt in a court of law.
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One American and One Chinese National Indicted in Tennessee for Conspiracy to Commit Theft of Trade Secrets and Wire FraudRead the Press Release
A grand jury sitting in Greeneville, Tennessee has returned an indictment against Xiaorong You, a/k/a Shannon You, 56, of Lansing, Michigan, and Liu Xiangchen, 61, of Shandong Province, China for conspiracy to steal trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings. You was also indicted on seven counts of theft of trade secrets and one count of wire fraud.
Assistant Attorney General National Security John C. Demers, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee, FBI Executive Assistant Director for the National Security Branch Jay Tabb, and Special Agent in Charge Troy Sowers of the FBI’s Knoxville Field Office made the announcement.
“The conduct alleged in today’s indictment exemplifies the rob, replicate and replace approach to technological development,” said Assistant Attorney General Demers. “Xiaorong You is accused of an egregious, premediated theft and transfer of trade secrets worth more than $100 million for the purpose of setting up a Chinese company that would compete with the American companies from which the trade secrets were stolen. Unfortunately, China continues to use its national programs, like the ‘Thousand Talents,’ to solicit and reward the theft of our nation’s trade secrets and intellectual property, but the Justice Department will continue to prioritize investigations like these, to ensure that China understands that this criminal conduct is not an acceptable business or economic development practice.”
“Our office is committed to working closely with our federal, state and local partners to identify and prosecute those who engage in illegal and deceptive practices to steal trade secret and protected information from companies who spend millions of dollars to develop it,” said U.S. Attorney Overbey. “Not only can theft of this information be potentially devastating to our American companies, it could also pose a threat to our overall national and economic security.”
“The facts laid out in this indictment show the conspirators engaged in blatant criminal activity,” said Executive Assistant Director Tabb. “They didn't stop at going after technical secrets belonging to just one company. They allegedly targeted multiple companies and made off with trade secrets at an estimated value of almost 120 million dollars. As this case demonstrates, the FBI is determined to do everything possible to bring to justice those who try to steal secrets belonging to American companies.”
"As this indictment highlights, theft of trade secrets from American companies is an emerging economic threat, even here in East Tennessee," said Special Agent in Charge Sowers. "The tireless work of our agents and prosecutors in this case underscores the FBI's commitment to protecting American ingenuity."
The BPA-free trade secrets allegedly stolen by these individuals belonged to multiple owners and cost an estimated total of at least $119,600,000 to develop. Until recently, bisphenol-A (BPA) was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss, and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to the discovered potential harmful effects of BPA, companies began searching for BPA-free alternatives. These alternatives are difficult and expensive to develop.
From December 2012 through Aug. 31, 2017, You was employed as Principal Engineer for Global Research by a company in Atlanta, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Due to her extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of employees with access to trade secrets belonging to the various owners. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for a company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to that company.
Details of the conspiracy are included in the indictment on file with the U.S. District Court. The indictment alleges that You, Liu, and a third co-conspirator formulated a plan in which You would exploit her employment with the two American employers to steal trade secrets and provide the information for the economic benefit of trade secrets the Chinese company that Liu managed, which would manufacture and profit from products developed using the stolen trade secrets. In exchange, Liu would cause the Chinese company to reward You for her theft, by helping her receive the Thousand Talent and another financial award, based on the trade secrets she stole, and by giving You an ownership share of a new company that would “own” the stolen trade secrets in China. The conspirators also agreed to compete with U.S. and foreign companies, including some of the owners of the stolen stolen trade secrets, in China and elsewhere, by selling products designed, developed and manufactured using the stolen trade secrets.
The charges contained in this indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Knoxville Field Office.
The government’s case is being prosecuted by the Eastern District of Tennessee and the National Security Division’s Counterintelligence and Export Control Section.
Omaha Woman Enters Plea for Preparing a False Tax ReturnRead the Press Release
United States Attorney Joe Kelly announced that Opal Harris, 38, entered a plea of guilty on February 14, 2019, in United States District Court in Omaha to the charge of willfully preparing a false tax return. Preparing a false return carries a penalty of up to three years in prison, a fine of up to $100,000, and up to one year of supervised release. The Honorable Robert F. Rossiter, Jr. accepted the guilty plea and set sentencing for May 10, 2019, at 10:30 a.m.
“Dishonest return preparers use a variety of methods to cheat the government and the taxpaying public,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Tax practitioners and return preparers have a duty to their clients to prepare tax returns that comply with the law and are complete and accurate.”
This case was investigated by the Internal Revenue Service.
Ohio Man Sentenced to 35 Years in Prison for Sex Crimes Against Minor Girls in Multiple StatesRead the Press Release
ROCK ISLAND, Ill. – An Ohio man, Andrew J. Stone, was sentenced today to 35 years in prison for committing sex crimes against minor girls, specifically transportation of a minor for unlawful sexual activity and production of child pornography. Stone, 33, of Rocky River, appeared before U.S District Judge Sara Darrow in Rock Island. Judge Darrow ordered that Stone remain on supervised release for the remainder of his life following release from prison. Stone has remained in law enforcement custody since his arrest in Ohio in July 2017.
“Thanks to the hard work of our federal, state and local law enforcement partners, this dangerous predator is off the streets,” said U.S. Attorney John Milhiser. “We will continue to identify and prosecute those who prey on our children.”
Stone pleaded guilty to the charges on Oct. 17, 2018. According to court documents and admissions made in connection with his guilty pleas, Stone engaged in internet communications with a 15-year old girl who lived in Illinois. In December 2016, Stone traveled from Ohio to Illinois to meet the girl and then drove her to Iowa, where he and the girl engaged in sexual activity and Stone created video of the sexually explicit conduct. In addition, Stone admitted to illegal sexual activity with other minor girls in Illinois, Missouri, and Ohio. Further, Stone admitted that he caused the girls in those states and other girls in Iowa, Virginia, and Pennsylvania to create videos of themselves engaged in sexually explicit conduct and to send the videos to Stone.
The charges were investigated by the U.S. Secret Service, the Moline Police Department, Illinois State Police, and the Ohio Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney Don Allegro.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Northern District of Oklahoma U.S. Attorney’s Office Collects $2,159,920 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018.Read the Press Release
TULSA, Okla. –U.S. Attorney Trent Shores announced today that the Northern District of Oklahoma collected $2,159,920 in criminal and civil actions in Fiscal Year 2018, representing a jump in collections as compared to Fiscal Year 2017. Of this amount, $1,258,097 was collected in criminal actions and $901,833 was collected in civil actions.
Additionally, the Northern District of Oklahoma worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $8,609,640 in cases pursued jointly by these offices. Of this amount, $2,879 was collected in criminal actions and $8,606,760 was collected in civil actions.
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 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
U.S. Attorney Shores stated, “The United States Attorney’s Office diligently collected this money on behalf of American taxpayers and victims of crime. The recovered monies go directly to crime victims to help compensate them for their physical injuries or financial loss. To all those who owe money to the United States as the result a criminal or civil debt, there will be a day of accounting. You will pay out of pocket or through the forfeiture of your criminally obtained assets. This U.S. Attorney’s Office will see victims wholly restored, restitution and fines paid in full, and civil financial obligations satisfied.”
“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.
In one case, the court ordered a criminal defendant to pay $153,610.35 in restitution. After release from prison, the Northern District of Oklahoma’s U.S. Attorney’s Office doggedly pursued the defendant and, through garnishment, asset hearings and seizure of retirement accounts, collected the total amount of restitution. In another criminal case, a defendant was ordered to pay restitution of $79,942.52. Though the office is still pursuing collection in the case, significant amounts have been recovered using the Treasury Offset Program, which allows the government to intercept tax refunds.
The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs and allows the government to address losses it sustains by providing for civil monetary penalties. In 2018, the U.S. Attorney’s Office assessed such a penalty against a nurse involved in pharmacy kickbacks. The nurse immediately began making payments voluntarily to pay off her debt of more than $130,000.
The 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 collected to federal and 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, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Northern District of Alabama U.S. Attorney’s Office Collects $9,044,060.80 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Birmingham, AL-- U.S. Attorney Jay E. Town announced today that the Northern District of Alabama collected $9,044,060.80 in criminal and civil actions in Fiscal Year 2018. Of this amount, $7,221,160.63 was collected in criminal actions and $1,822,900.17 was collected in civil actions.
Additionally, the Northern District of Alabama worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,651,100.00 in cases pursued jointly by these offices.
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 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“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.
“The prosecutors and support staff in my office strive each day to put criminals behind bars and protect the public fisc, and the collection of civil and criminal debts is an essential part of that,” Town said. “The forfeitures collected shows our continued commitment to pursue the recovery of those ill-gotten gains so that victims of crime and the federal treasury can be given restitution. We will continue to do so aggressively.”
The 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 collected to federal and 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, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
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North Carolina Man Convicted of Traveling to Nashville Tennessee to Have Sex with 15 Year-OldRead the Press Release
NASHVILLE, Tenn. – February 14, 2019 – A federal jury returned guilty verdicts today on all counts against James Frei, 50, of Union Mills, North Carolina, after a trial on child pornography related offenses, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Frei was indicted in March 2017 and charged with child pornography offenses, including production and transportation of child pornography, on-line enticement of a minor and traveling to have sex with a minor.
According to evidence and testimony at trial, in July 2016, the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip from Facebook regarding an adult male engaging in sexually explicit conversations with a minor female, later identified as a 15 year-old living in Nashville. The conversations indicated that the adult may have already traveled to Nashville to have sex with the minor female. This information was relayed to the Metropolitan Nashville Police Department (MNPD) for further investigation.
A MNPD detective interviewed the minor and learned that she had met the man, later identified as Frei, in May 2016 through a teen chat room on Facebook and that he had traveled to Nashville multiple times in May 2016 and went to her house after her father had left for work, where they engaged in sexual activity. The minor female was then driven to a nearby park where they again engaged in sexual activity. Frei returned to Nashville for a few days in June 2016 and on two occasions, he took the minor to a hotel near the airport and engaged in sexual activity. The detective also learned that Frei had recorded the sexual encounters with his cell phone.
A subsequent search warrant served at Frei’s North Carolina home resulted in the seizure and forensic examination of his cell phone, which was found to contain numerous images and videos of him engaging in sex with the minor female.
Frei faces up to life in prison when he is sentenced on May 20, 2019. The production of child pornography charge carries a mandatory minimum sentence of 15 years in prison.
This case was investigated by the Metropolitan Nashville Police Department and is being prosecuted by Assistant U.S. Attorneys Katy Risinger and Christopher Suedekum.
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New Orleans Man Sentenced for Hate Crime in Shooting of Three African-American Men Attempting to Evacuate After Hurricane KatrinaRead the Press Release
Roland J. Bourgeois Jr., 55, of New Orleans, Louisiana, was sentenced to 10 years imprisonment, followed by five years of supervised release on charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Assistant Attorney General for the Civil Rights Division Eric Dreiband; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.
“Today’s sentencing brings closure to this race-motivated shooting that occurred over 13 years ago, in the wake of Hurricane Katrina,” said Assistant Attorney General Eric Dreiband. “This sentence sends a clear message to those who attempt to divide our community with violence and fear that the Department of Justice will work tirelessly to prosecute perpetrators of hate-motivated violence.”
“Upholding the civil rights of our citizens is one of the most important duties of the Department of Justice. This sentencing clearly demonstrates the tenacity of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hurricane Katrina was a tragic chapter in the history of our city. Hopefully this plea brings some measure of finality to those directly affected by this crime and to this great city that endured so much in the days following this calamity.”
Eric Rommal, FBI New Orleans Special Agent in Charge stated: “Justice is blind, but she is also patient. Mr. Bourgeois’ cowardly, unprovoked, and racially based violent acts were unjustly carried out upon his victims over a decade ago, leaving the victims, their families, and our community torn by hate. We hope his sentencing will help the healing process and serve notice that violence especially borne from hate, will never be tolerated and the FBI remains committed to upholding the Constitution and protecting civil rights.”
According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.
On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived. Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”
The prosecution of this matter was delayed because the defendant was repeatedly found incompetent to stand trial after being charged in July 2010. The defendant’s competency was evaluated six different times between 2010 and 2018. After he was declared competent in 2018, Bourgeois pleaded guilty in October 2018.
The FBI conducted the investigation. The case was prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division, and Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana.
For more information about Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
New Orleans Man Sentenced for Hate Crime in Shooting of Three African-American Men Attempting to Evacuate After Hurricane KatrinaRead the Press Release
WASHINGTON – Roland J. Bourgeois Jr., 55, of New Orleans, Louisiana, was sentenced to 10 years imprisonment, followed by five years of supervised release on charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Assistant Attorney General for the Civil Rights Division Eric Dreiband; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.
“Today’s sentencing brings closure to this race-motivated shooting that occurred over 13 years ago, in the wake of Hurricane Katrina,” said Assistant Attorney General Eric Dreiband. “This sentence sends a clear message to those who attempt to divide our community with violence and fear that the Department of Justice will work tirelessly to prosecute perpetrators of hate-motivated violence.”
“Upholding the civil rights of our citizens is one of the most important duties of the Department of Justice. This sentencing clearly demonstrates the tenacity of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hurricane Katrina was a tragic chapter in the history of our city. Hopefully this plea brings some measure of finality to those directly affected by this crime and to this great city that endured so much in the days following this calamity.”
Eric Rommal, FBI New Orleans Special Agent in Charge stated: “Justice is blind, but she is also patient. Mr. Bourgeois’ cowardly, unprovoked, and racially based violent acts were unjustly carried out upon his victims over a decade ago, leaving the victims, their families, and our community torn by hate. We hope his sentencing will help the healing process and serve notice that violence especially borne from hate, will never be tolerated and the FBI remains committed to upholding the Constitution and protecting civil rights.”
According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.
On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived. Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”
The prosecution of this matter was delayed because the defendant was repeatedly found incompetent to stand trial after being charged in July, 2010. The defendant’s competency was evaluated six different times between 2010 and 2018. After he was declared competent in 2018, Bourgeois pleaded guilty in October 2018.
The FBI conducted the investigation. The case was prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division, and Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana.
For more information about DOJ’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to DOJ hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
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New Britain Man Sentenced to More Than 11 Years in Federal Prison for Cocaine and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ORLANDO QUIROS, also known as “O” and “Gordo, 42, formerly of New Britain and Suffield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 136 months of imprisonment, followed by five years of supervised release, for cocaine trafficking and firearm possession offenses.
This matter stems from a joint investigation headed by the DEA New Haven Task Force into a central Connecticut cocaine and crack cocaine trafficking ring. The investigation, which included the use of court-authorized wiretaps, controlled purchases of crack cocaine and seizures of cocaine and cash proceeds, revealed that Westley Northrup, also known as “Piff,” operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody at the Cheshire Correctional Institution. Northrup conspired with Carlos Roman, also known as “Frizz,” of Middletown, to purchase cocaine from suppliers, including Omar Rivera, convert some of the cocaine to crack cocaine, and then distribute crack and cocaine through a network of dealers.
Further investigation revealed that Rivera, of New Britain, was being supplied with cocaine by Quiros, who regularly received packages containing multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico. Quiros’s operation was assisted by individuals who agreed to accept delivery of the packages.
On July 12, 2017, law enforcement officers intercepted and seized approximately $210,000 in cash that Quiros had in a vehicle he was driving from Connecticut to New York.
Quiros and others involved in this narcotics trafficking conspiracy were arrested on July 26, 2017. On that date, investigators executed multiple search warrants and seized approximately seven kilograms of cocaine, several pounds of marijuana, four firearms, and nearly $100,000 in cash.
One of the firearms, and approximately $90,000 in cash, were found in a Hartford apartment that Quiros maintained.
Investigators also seized from Quiros a 2016 Maserati and 2016 BMW 6 Series.
On July 17, 2018, Quiros pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine, and one count of possession of a firearm by a previously convicted felon.
Northrup, Roman and Rivera pleaded guilty to related charges. On April 12, 2018, Roman was sentenced to 120 months of imprisonment. Northrup and Rivera await sentencing.
This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Nashville Man Facing Federal Charges for Setting Fires to the Music City GarageRead the Press Release
NASHVILLE, Tenn. – February 14, 2014 – James Hayward Williams, aka Spanky, 42 of Nashville, Tennessee, was charged today with 11 federal offenses relating to the burning of the Music City Garage in East Nashville in December 2018 and for firing multiple rounds from a semi-automatic pistol at On the Go Tires in East Nashville on January 5, 2019, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint obtained today charges Williams with using Instagram messages to threaten to burn the Music City Garage and vehicles located on the property, with the intent to extort money from the owner; four counts of using fire to commit a federal felony; four counts of maliciously damaging a building used in interstate commerce, by means of fire; and being a convicted felon in possession of a firearm.
According to the complaint, after threatening the owner with burning the business, Williams set fire to the Music City Garage two times during the early morning hours on December 22, 2018, and again set fire to the building on December 24th and on December 26th, in an effort to extort $30,000 from its owner. During each incident, the Metropolitan Nashville Fire Department (MNFD) responded and extinguished blazes at the business, including vehicles which had been set on fire. The complaint also charges Williams with possessing a .40 caliber Smith & Wesson pistol after having been convicted of a felony and firing multiple rounds from that pistol at On the Go Tires, in furtherance of an extortion attempt to collect $20,000 from a person associated with that business. As alleged in the complaint, multiple rounds were fired at the business and at a vehicle that was occupied by a young girl, narrowly missing her.
If convicted, Williams faces more than 100 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the MNPD Gang Unit and recently formed Crime Gun Unit; and the MNFD Fire Marshal’s Office. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
The charges in the criminal complaint are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Moss Point Man Sentenced to Nearly 15 Years in Federal Prison for Illegally Possessing Firearm and Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. –Aaron Rouleau, 32, of Moss Point, Mississippi, was sentenced yesterday by U.S. District Judge Louis Guirola to 178 months in prison for possession with intent to distribute more than 50 grams of methamphetamine, and 120 months in prison for possession of a firearm by a felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. The sentences will run concurrently. Rouleau was also sentenced to 5 years of supervised release and ordered to pay a $10,000 fine.
On February 26, 2018, the South Mississippi Metropolitan Enforcement Team (MET) executed a search warrant at a residence in Moss Point, where Rouleau was found in a parked vehicle with 99 grams of methamphetamine and two firearms. Rouleau had been selling methamphetamine from that location during the weeks prior to his arrest.
The Jackson County Metropolitan Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Emily Nobile.
Monongalia County woman admits to child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tara Ponceroff, of Morgantown, West Virginia, has admitted today to a child pornography charge, United States Attorney Bill Powell announced.
Ponceroff, age 26, pled guilty to one count of “Aiding and Abetting Production of Child Pornography.” Ponceroff admitted to producing and distributing child pornography involving a minor in December 2017 in Monongalia County.
Ponceroff faces up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Middle District Prosecutor Recognized with Shield Award for Work on Kadar Bomb Threat CaseRead the Press Release
MACON – The First Assistant United States Attorney for the Middle District of Georgia was recognized for his role in the current investigation and prosecution of a U.S./Israeli man indicted for hate crimes and threats to Jewish institutions at the Anti Defamation League’s (ADL) annual SHIELD Awards, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Peter Leary is one of 23 individuals recognized with a SHIELD award in the Michael Kadar case (to learn more about this case, please visit https://www.justice.gov/usao-dc/pr/usisraeli-man-indicted-hate-crime-and-threats-jewish-community-centers-israeli-embassy).
A SHIELD award is an expression of gratitude for law enforcement who courageously protect citizens and uphold the United States constitution, especially recognizing those who successfully respond to hate crimes, extremism, genocide, terrorism and other malicious, illegal acts that undercut our nation’s freedom. Created by ADL in 2010, the name of the award is an acronym for the core values of the law enforcement profession: Service, Honor, Integrity, Excellence, Leadership and Dedication. Recipients are chosen by a committee of more than 20 agency heads in the Washington, DC region, representing more than 90,000 personnel.
“Our office is extremely proud of Peter Leary, who joins a team from across the nation investigating crimes that terrorize our communities and disturb the freedoms that our nation holds dear,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. “I join our entire office serving the citizens of Middle Georgia in saluting Peter and our other dedicated law enforcement partners for this very worthy recognition.”
The SHIELD awards ceremony was held at the National Press Club, in Washington, DC on Wednesday, February 13, 2019. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Michigan Man and His Company Plead Guilty to Illegally Storing Hazardous Waste in Madison Heights, MichiganRead the Press Release
Gary Alfred Sayers and his company, Electro-Plating Services Inc., both pleaded guilty in federal court in Detroit, Michigan, to illegally storing hazardous wastes at the company’s premises in Madison Heights, Michigan, in knowing violation of the Resource Conservation and Recovery Act, the Department of Justice and U.S. Environmental Protection Agency (EPA) announced. Under the terms of the plea agreement, Sayers and Electro-Plating Services each pleaded guilty to a felony charge of illegally storing hazardous waste and will pay the EPA $1,444,510 for its direct costs to clean up the plating facility. The court will decide any term of incarceration and fine at sentencing.
According to the plea agreement, Sayers — who owns and has been the President of Electro-Plating Services from the late 1990s — used various dangerous chemicals in his electroplating business that became hazardous wastes when they no longer fulfilled their industrial purpose. Sayers almost never sent those wastes away for proper disposal, preferring to keep them on site indefinitely.
“Sayers’s knowing, illegal storage of waste cyanide, highly corrosive wastes, toxic chromium waste, and reactive wastes posed a significant danger and threat to nearby communities and the environment. He and his company continued their illegal and poor handling despite many years of warnings by environmental regulators, and they are now being held accountable for their willful refusal to comply with the law,” said Jeffrey Bossert Clark, Assistant Attorney General for the Environment and Natural Resources Division.
“Illegal storing of hazardous waste is a danger not only to the environment but to communities as well,” stated United States Attorney Matthew Schneider. “The actions by this defendant showed a blatant disregard for the law. It is our hope that prosecutions such as this one will serve as a deterrent to others who seek to serve their own interests rather than the safety of the environment.”
“Hazardous wastes pose serious risks to the health of entire communities, so it’s imperative they be handled and disposed of safely and legally,” said EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance Susan Bodine. “EPA and its law enforcement partners are committed to the protection of public health and will continue to pursue those who blatantly undermine those efforts.”
According to the plea agreement, Sayers knew that such storage was illegal because he also managed the company’s former Detroit facility — where he kept hazardous wastes illegally until 2005 — and because the Michigan Department of Environmental Quality (MDEQ) repeatedly sent him warnings. In 2005, Sayers was charged with and pleaded guilty to illegally transporting hazardous wastes. During the ensuing years, MDEQ attempted to get Sayers and Electro-Plating Services to properly manage the amounts of hazardous wastes piling up at the Madison Heights location. MDEQ issued numerous Letters of Warning and Violation Notices to the company regarding its hazardous wastes.
In 2016, MDEQ identified over 5,000 containers of liquid and solid wastes at the Madison Heights location. That same year, the City of Madison Heights revoked the company’s occupancy permit. In January 2017, EPA initiated a Superfund removal action, after determining that the nature and threats posed by the stored hazardous waste required a time-critical response. The cleanup was completed in January 2018.
Sentencing is scheduled for May 16, 2019.
Assistant Attorney General Clark and U.S. Attorney Schneider thanked the U.S. Environmental Protection Agency’s Criminal Investigation Division and the Michigan Department of Environmental Quality for their work in this investigation. The case is being prosecuted by Senior Counsel Krishna Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Sara Woodward of the U.S. Attorney’s Office for the Eastern District of Michigan.
Mexican National Admits to Trafficking Fentanyl into the United StatesRead the Press Release
NEWARK, N.J. – A Mexican man today admitted his role in conspiring to traffic approximately 300 grams of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.
Angel Santo Jerez Matos, 60, a/k/a “El Colonel,” pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 40 grams of fentanyl.
According to the documents filed in this case and statements made in court:
Matos was a supplier of fentanyl, heroin, and cocaine to a drug trafficking organization operating in and around New Jersey.
Matos and a member of a New Jersey drug trafficking organization were heard, on intercepted communications, discussing the pricing of “cars,” meaning kilograms of narcotics to be shipped from Mexico into the United States through California. The drugs would then be shipped to New Jersey. Additional communications among members of the New Jersey drug trafficking organization revealed that 300 grams of fentanyl that had originated with Matos in Mexico made its way to users in Newark in May 2017.
The conspiracy charge to which Matos pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for June 19, 2019.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s guilty plea.
This case is being conducted under the auspices of the OCDETF. 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.
Defense counsel: Robert Galuccio Esq., Paterson, New Jersey
Mason City Nurse Sentenced to Three Years in Federal Prison for Stealing Pain Medication for over a Year from PatientsRead the Press Release
An Iowa nurse who stole pain medications from his patients and created false medical records to cover up his thefts was sentenced February 13, 2019, to three years in federal prison.
James Allen Moorehead, age 58, from Mason City, Iowa, received the prison term after an August 13, 2018 guilty plea to one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge, one count of false statements relating to health care matters, and one count of aggravated identity theft.
In a plea agreement, Moorehead admitted that he was employed at Franklin General Hospital in Hampton, Iowa, as a registered nurse in 2016 and 2017. During this employment, he used patient identities to get controlled substances by accessing their prescribed medication in the hospital’s system and diverting those pain pills to himself. He specifically stole pills containing hydrocodone. Moorehead concealed his scheme by making false entries in medical records that the medications were actually administered to the patients. He would also give his patients Tylenol instead of their prescribed pain medication. Multiple patients reported increased pain during Moorehead’s shifts.
Moorehead had previously surrendered his nursing license under a 2008 Iowa Board of Nursing agreement, after having been terminated from North Iowa Mercy Health Center and Genesis Health Center for stealing opioids. The Iowa Board of Nursing reinstated Moorehead’s nursing license in June 2011, and he began working at Franklin General Hospital in March 2012. He was terminated from that job in March 2017.
Moorehead was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. At Moorehead’s sentencing, Judge Reade called his crimes “outrageous” and found the impact upon his victims to be “significant.” Judge Reade noted that Moorehead had received a second chance from the Iowa Board of Nursing but had reengaged in the same criminal conduct to the detriment of vulnerable people in his care.
Moorehead was sentenced to 36 months’ imprisonment and fined $20,000. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Judge Reade also found Moorehead lied on a court form, under oath, in order to obtain court-appointed counsel, by failing to disclose assets, including bonds and an IRA. Judge Reade ordered Moorehead’s lawyer to itemize all of the lawyer’s costs in defending Moorhead and indicated the Court would order Moorehead to repay all of those costs to the Court at a later date.
Moorehead 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 prosecuted by Assistant United States Attorneys Lyndie M. Freeman and Tim Vavricek and investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3021.
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Maryland Man Sentenced to 12 Years in Prison for Federal Drug Trafficking OffenseRead the Press Release
WASHINGTON – Jeremiah Woodfork, 33, of District Heights, Md., has been sentenced to a total of 12 years in prison on a federal cocaine trafficking charge stemming from his apprehension after he fired multiple gunshots from his car at another motorist in Northeast Washington. At the time of his arrest, Woodfork was awaiting sentencing in the Circuit Court for Prince George’s County, Md., for an attempted robbery conviction, for which he failed to appear.
The announcement was made by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Woodfork pled guilty in September 2017, in the U.S. District Court for the District of Columbia, to one count of unlawful possession with intent to distribute cocaine. He was sentenced on Feb. 13, 2019, by the Honorable Randolph D. Moss. Following completion of his prison term, Woodfork will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 18, 2017, at approximately 9:40 a.m., Woodfork was driving in a teal-colored Mercedes-Benz with his pregnant girlfriend when he cut off another vehicle. The driver of the other vehicle began to follow Woodfork’s vehicle in an effort to obtain the license plate number to call in a report of a reckless driver.
As the other motorist followed Woodfork, Woodfork abruptly stopped the Mercedes in the 1900 block of 3rd Street NE, rolled down the driver’s side window, and fired multiple gunshots at the other vehicle. The driver of the other vehicle called 911 and provided a description of the Mercedes Woodfork was operating.
Officers with the Metropolitan Police Department (MPD) spotted Woodfork’s Mercedes a short time later and attempted to stop him. However, Woodfork fled at a high rate of speed through parts of Northeast and Northwest Washington.
Officers eventually cut Woodfork off near Fifth and T Streets NW, at which time Woodfork crashed the Mercedes into a parked vehicle and fled on foot. Woodfork was apprehended a short distance away. In a search of his pockets, police found cocaine and $1,290. Police also recovered additional quantities of cocaine and marijuana in a vest lying next to the driver’s seat of the Mercedes, as well as a Taurus .22-caliber semi-automatic pistol in an alleyway a short distance from where Woodfork crashed the Mercedes.
At the time of his arrest, Woodfork had failed to appear for sentencing in the Circuit Court for Prince George’s County, Md., after his conviction for attempted robbery, first-degree burglary, and second-degree assault in an unrelated case.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham, commended the work of the MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Steven B. Wasserman and Paralegal Specialist Rommel Pachoca.
Manhattan Doctor Pleads Guilty to Accepting Bribes and Kickbacks from Pharmaceutical Company in Exchange for Prescribing Fentanyl DrugRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ALEXANDRU BURDUCEA, a doctor who practiced in Manhattan, pled guilty today to conspiracy to violate the Anti-Kickback Statute in connection with a scheme to prescribe Subsys, a potent fentanyl-based spray, in exchange for bribes and kickbacks from Subsys’s manufacturer, Insys Therapeutics (“Insys”). BURDUCEA pled guilty before U.S. Magistrate Judge Kevin Nathaniel Fox. The case is assigned to U.S. District Judge Kimba M. Wood.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Alexandru Burducea, a prominent Manhattan pain management doctor, accepted tens of thousands of dollars in speaker fees from Insys in exchange for prescribing large volumes of Insys’s powerful fentanyl-based spray, Subsys. The corrupting influence of money has no place in medicine, especially when it comes to prescribing fentanyl and other dangerous opioids. Like many other doctors around the country, Dr. Burducea is now being held to account for his participation in this corrupt kickback scheme.”
According to the allegations contained in the Indictment against BURDUCEA and filings in related proceedings:
The Insys Speakers Bureau
Subsys, which is manufactured by Insys, is a powerful painkiller approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration (“FDA”) approved Subsys only for the management of breakthrough pain in cancer patients. Prescriptions of Subsys typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by BURDUCEA.
In or about August 2012, Insys launched a “Speakers Bureau,” a roster of doctors who would conduct programs (“Speaker Programs”) purportedly aimed at educating other medical practitioners about Subsys. In reality, Insys used its Speakers Bureau to induce the doctors who served as speakers to prescribe large volumes of Subsys by paying them Speaker Program fees. Speakers were supposed to conduct an educational slide presentation for other health care practitioners at each Speaker Program. In reality, many of the Speaker Programs were predominantly social affairs where no educational presentation about Subsys occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of medical practitioners who were not present.
BURDUCEA’s Participation in the Scheme
BURDUCEA, a doctor certified in pain management and anesthesiology, was an Assistant Professor of Anesthesiology at a large Manhattan hospital. BURDUCEA also practiced at an anesthesiology and pain management office associated with the hospital. From in or about September 2014 until in or about June 2015, BURDUCEA received approximately $68,400 in Speaker Program fees from Insys in exchange for prescribing large volumes of Subsys. In addition, Insys hired BURDUCEA’s then-girlfriend, now wife, to work as BURDUCEA’s sales representative, and the company paid her large commissions based on the volume of Subsys prescribed by her assigned doctors, including BURDUCEA.
BURDUCEA, who had never prescribed Subsys before in or about September 2014, became approximately the 14th-highest prescriber of Subsys nationally in the second quarter of 2015, accounting for total net sales of the drug of approximately $621,345 in that quarter.
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BURDUCEA, 42, of Little Neck, New York, pled guilty to one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BURDUCEA is scheduled to be sentenced by Judge Wood on May 22, 2019, at 11:00 a.m.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and thanked the U.S. Department of Health and Human Services Office of Inspector General for its assistance in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk and David Abramowicz are in charge of the prosecution.
Manhattan Art Gallery Owner Mary Boone Sentenced to 30 Months in Prison for Filing False Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that Manhattan art gallery owner MARY BOONE was sentenced to 30 months in prison for filing false tax returns as part of a multi-year tax fraud scheme that cost the U.S. Treasury over $3 million. BOONE previously pled guilty to two counts of filing false tax returns in 2011 before U.S. District Judge Alvin K. Hellerstein, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As Manhattan art gallery owner Mary Boone has admitted, her personal tax returns were more a work of impressionism than realism. Seemingly in order from afar, the picture Boone painted of her profits, losses, and expenses was, upon closer inspection, a palette of lies and misrepresentations mixed together to avoid paying over $3 million in taxes. Today, Boone was sentenced to 30 months in prison for failing to pay her fair share in taxes.”
According to allegations in the Information to which BOONE pled guilty, court filings, and statements made in public court proceedings:
BOONE, the owner of Mary Boone Gallery (the “Gallery”) in Manhattan, engaged in a multi-year scheme to evade paying millions of dollars in federal income taxes for the calendar years 2009 through 2011. During each of these years, BOONE regularly provided false records to her accountant and thereby caused the accountant to prepare false tax returns for BOONE and the Gallery.
BOONE’s tax fraud scheme had two principal components. First, BOONE converted the Gallery’s funds to her own personal use and then falsely claimed these personal expenses as business deductions. In 2011, BOONE used business funds to pay approximately $1.28 million in personal expenses, including $793,003 to remodel BOONE’s Manhattan apartment; $120,856 for rent and expenses for a second Manhattan apartment; and approximately $300,000 in personal credit card charges. To evade paying federal income taxes on this personal income, BOONE fraudulently characterized these expenses as tax-deductible business expenses on the handwritten check registers that BOONE provided to her accountant. For example, BOONE falsely characterized a $500,000 payment to a contractor for remodeling BOONE’s apartment as a “commission.” In addition, BOONE withdrew over $560,000 in cash from the Gallery’s accounts between 2009 and 2011. BOONE either falsely reported the withdrawals as business payments to a printing company or failed to report them at all.
Second, BOONE artificially inflated the Gallery’s stated expenses and, to a lesser degree, the Gallery’s stated income, in order to fraudulently generate business losses when, in reality, the Gallery was generating profits each year. In furtherance of this aspect of the tax fraud scheme, BOONE engaged in complex financial machinations and further falsification of the check registers that BOONE provided to her accountant. For example, in 2011, BOONE transferred approximately $9.5 million from one business bank account to another, and falsely characterized these transfers as tax-deductible business expenses, such as commissions to artists, on the check registers that Boone provided to the accountant.
In all, BOONE caused the Internal Revenue Service (“IRS”) to incur losses of over $3 million, not including penalties and interest.
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In addition to the prison term, Judge Hellerstein ordered BOONE to serve one year of supervised release, including 180 hours of community service. Boone previously paid court-ordered restitution to the IRS in the amount of $3,097,160, which represents the additional tax due and owing as a result of BOONE’s filing of false individual and corporate income tax returns for calendar years 2009, 2010, and 2011.
Mr. Berman praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.
Local businessman illegally in United States pleads guilty to bribing IRS agent to fix his federal taxesRead the Press Release
ATLANTA – Local business owner Magdaleno Garcia Alonso has pleaded guilty to attempting to bribe an IRS Revenue Agent to get out of paying his personal and business taxes.
“Garcia attempted to buy his way out of paying his taxes by bribing an IRS Revenue Agent,” said U.S. Attorney Byung J. “BJay” Pak. “As expected, the agent reported his illegal offer – and now Garcia must answer for his crimes.”
“It is the mission of the Treasury Inspector General for Tax Administration (TIGTA) to protect the integrity of the IRS and promote the fair administration of our federal tax system,” said Special Agent in Charge Gary Smith of TIGTA’s Southern Field Division. “TIGTA and our law enforcement partners at the U.S. Attorney’s Office will do everything within our power to ensure those individuals who attempt to bribe IRS agents and corrupt our nation’s tax system will be prosecuted to the fullest extent of the law.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Garcia owned and operated Acworth Georgia Concrete, Inc. Garcia filed tax returns with the Internal Revenue Service (“IRS”) for 2015 and 2016, both as an individual and on behalf of his concrete business. Based on those filings, the IRS notified Garcia that it was auditing his tax returns. As a result of the audit, the IRS calculated that Garcia owed approximately $234,000 in back taxes for his business and approximately $111,000 in back taxes personally.
In mid-September 2018, Garcia offered to pay the IRS Revenue Agent who completed the audit of his tax returns a cash bribe if the agent reduced Garcia’s tax liabilities. The Revenue Agent properly reported Garcia’s bribe offer to the appropriate authorities – and federal law enforcement agents set up an undercover operation to record Garcia.
On September 19, 2018, Garcia met the Revenue Agent at a fast-food restaurant in Cobb County, Georgia. During that recorded meeting, Garcia proposed that if the IRS agent reduced his back taxes from $345,000 to $100,000, then he would pay the IRS agent $30,000 in cash. In fact, Garcia hand wrote an agreement setting out the terms of his bribery scheme, writing that he would “pay [the] IRS $100,000” in back taxes (instead of $345,000) and would give the IRS Agent a bribe payment of “$20,000 now” and “$10,000” in the future. In her undercover role, the IRS agent agreed and signed Garcia’s contract. Garcia then gave the IRS Agent $20,000 in cash. On November 10, 2018, federal law enforcement officers arrested Garcia as he arrived to meet the IRS agent to give her an additional $5,000 cash bribe payment.
Garcia has admitted and agreed that he is a citizen of Mexico, is illegally in the United States, and will consent to being removed from the United States after he completes his prison sentence.
On November 6, 2018, a federal grand jury returned an indictment against Garcia, 50, of Acworth, Georgia, for bribery. Garcia pleaded guilty to that charge via criminal information.
This case is being investigated by the U.S. Department of the Treasury, Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney Jeffrey W. Davis, Public Integrity and Special Matters section chief, is prosecuting the case. The case was previously prosecuted by former Assistant U.S. Attorney Jenny R. Turner.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Kenner Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – Garrett Roth, age 26, a resident of Kenner, pleaded guilty Tuesday, February 12, 2019 before United States District Judge Susie Morgan to an indictment charging him with being an unlawful user/drug addict in possession of a firearm, in violation of the Federal Gun Control Act announced U.S. Attorney Peter G. Strasser.
Garrett Roth was charged on August 13, 2018 in a one-count bill of information with possessing a Taurus, 9 mm semi-automatic pistol while being an unlawful user of and addicted to heroin. ROTH faces up to 10 years imprisonment, a fine of up to $250,000 and up to three years of supervised release following any term of imprisonment. The sentencing is set for May 21, 2019 at 2 pm.
This case was brought as 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.
U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
Justice Department Requires College Multimedia Rights Provider to Refrain from Unlawful Agreements Not to CompeteRead the Press Release
The Department of Justice announced today that it had reached a settlement with Learfield IMG College to resolve a Department lawsuit alleging that it engaged in unlawful agreements not to compete for multimedia rights contracts for universities’ athletic programs.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to challenge unlawful agreements not to compete. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the lawsuit’s alleged competitive harm.
“The illegal agreements not to compete allowed Learfield IMG College to benefit at the expense of the nation’s universities, students, and fans,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Public and private universities rely on competition among multimedia rights providers to provide critical resources to athletic programs, but these agreements lessened that competition and thereby harmed the universities and, ultimately, American students and taxpayers.”
The proposed settlement prohibits agreements not to bid, or to submit joint bids, between Learfield IMG College and any of its competitors in multimedia rights management. The Department has determined that prohibiting this conduct would resolve the competition concerns raised as a result of Learfield IMG College’s actions. The proposed settlement further requires Learfield IMG College to adopt rigorous antitrust compliance and reporting measures to prevent similar anticompetitive conduct in the future. Learfield IMG College has cooperated with the Department’s investigation and will continue to do so as it adopts these measures.
Learfield IMG College, a subsidiary of A-L Tier I LLC, is headquartered in Plano, Texas. Learfield IMG College provides a variety of services to universities, including multimedia rights management, trademark licensing, and ticketing.
Judge Sentences Businessman for Wire Fraud and Aggravated Identity TheftRead the Press Release
In San Antonio this morning, 53-year-old Reynaldo “Sonny” Jesus Peralez, owner and operator of Bohannon Oil Services, L.L.C., was sentenced for scheming to defraud investors of over $3.5 million dollars by routing false and fraudulent investment into trucks and transportation involved in the transport of fracking sands and for stealing the identity of one of his victims to further his fraudulent schemes announced United States Attorney John F. Bash and Federal Bureau of Investigations (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
Chief United States District Judge Orlando L. Garcia sentenced Peralez to 75 months imprisonment followed by a three year supervised release term. Judge Garcia also ordered Peralez to pay $3,599,105 in restitution.
On April 30, 2018, Peralez pleded guilty to one count of wire fraud and one count of aggravated identity theft. By pleading guilty to the charges, Peralez admitted to knowingly engaging in a scheme to defraud investors and knowingly possess and use the identification of another person.
According to court documents, Peralez was the owner and operator of Bohannon Oil Services, L.L.C. Through his company, Peralez made false and fraudulent representations to prospective investors indicating his company needed additional trucks to haul frac sand in order to fulfill contracts he had with oilfield services companies. In fact, Peralez had no such contracts with the companies. Peralez then grossly inflated the value of trucks, which he purchased with investor funds, and kept the remaining funds for his own personal use. Peralez sent investors emails that included false documentation regarding his business dealings. Peralez also made false representations to investors regarding payouts his business was supposedly receiving. Peralez created fictitious businesses that he pretended were selling trucks directly to investors. Peralez also forged the signature of a victim on a title to a truck to further his scheme.
Peralez was taken into custody by the U. S. Marshal Service to begin serving his sentence.
The Federal Bureau of Investigation (FBI) investigated this case. Assistant United States Attorney Joseph Blackwell prosecuted this case on behalf of the Government.
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Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss – Rodrecas Tims, 33, of Jackson, pled guilty today before U.S. District Judge Henry T. Wingate to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On November 1, 2018, Jackson Police officers approached Tims as he was walking away from his car in a Jackson parking lot after the officers smelled, and observed in plain view, marijuana rolled into a “cigar” in an ashtray. Tims was found to have two pistols concealed in the waistband of his pants. One of the pistols was stolen.
Tims was previously convicted of armed robbery in 2000 and again in 2005, and unlawfully possessing a firearm in 2005. On November 27, 2018 he was charged in a federal indictment with possession of a firearm by a convicted felon.
Tims will be sentenced on May 15, 2019, by Judge Wingate, and faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Bert Carraway.
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.
Indictment: Kansas Couple Crashed Car into Cabela’s to Steal GunsRead the Press Release
KANSAS CITY, KAN. – A man and a woman from Kansas were indicted Wednesday on federal charges of crashing a car into a Cabela’s store and stealing guns, U.S. Attorney Stephen McAllister said.
Kyle Mendez, 29, Kansas City, Kan., and Brenda Tosh, 27, Kansas City, Kan., were charged with one count of conspiring to steal guns from a federally licensed firearms dealer. In addition, Mendez was charged with two counts of unlawful possession of firearms by a convicted felon and one count of transporting a stolen 2014 Dodge Challenger across state lines. The crimes are alleged to have occurred Nov. 6, 2018, in Kansas City, Kan.
The indictment alleges the defendants entered the Cabela’s store in Kansas City, Kan., by crashing a car through an exterior door. Mendez smashed through a locked door to get into the store’s Gun Library. The defendants took long guns from the firearms section of the store and placed them into a shopping cart. The guns included two 12-gauge shotguns, a .22-caliber rifle, a .308-caliber rifle and a .223-caliber rifle.
Before the defendants could get away with the guns, however, law enforcement officers arrived at the store. Tosh was arrested at the scene. Mendez fled from the store and was arrested later.
Upon conviction, the crimes carry the following penalties:
Unlawful possession of firearms by a felon (count one and count two): Up to 10 years in federal prison and a fine up to $250,000.
Theft from a federally licensed firearms dealer (count three): Up to five years and a fine up to $250,000.
Transporting a stolen car (count four): Up to 10 years and a fine up to $250,000.
The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER INDICTMENTS
Salvador Veleta-Sinola, 33, Kansas City, Kan., is charged with assaulting law enforcement officers who were attempting to arrest him.
Veleta-Sinola is charged with two counts of assaulting law enforcement officers with a dangerous weapon and one count of assaulting another officer.
The indictment alleges he bit an FBI agent and tried to stab him with a ballpoint pen. In addition, the defendant is alleged to have attacked two members of an FBI task force.
The crimes are alleged to have occurred Jan. 3, 2019 in Wyandotte County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the two counts of attacking officers with a dangerous weapon and up to eight years and a fine up to $250,000 on the other assault charge. The FBI investigated. U.S. Attorney Stephen McAllister is prosecuting.
Cristian Maese-Solano, 22, Kansas City, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon. The crime is alleged to have occurred Nov. 12, 2018, in Wyandotte County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
Ramon Alejandro Magallanes-Carta, 24, who is in custody, is charged with unlawfully re-entering the United States after being deported. He was found Jan. 16, 2019, in Hutchinson, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Unsealed Charging Three with Operating a Fictitious Immigration Law Firm That Targeted and Defrauded Undocumented Aliens, Family Members, and Other VictimsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced the unsealing of an Indictment dated February 7, 2019, charging ESTEBAN RAMIREZ, III (“RAMIREZ”), age 26, HEATHER TOLSON (“TOLSON”), age 26, JOSE FERNANDEZ MOREL, a/k/a Benny Veintitres, a/k/a Robert McCane, a/k/a Domi (“FERNANDEZ”), age 28, with one (1) count of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 371 and three (3) counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. RAMIREZ and TOLSON are residents of Lorain, OH and FERNANDEZ, formerly a resident of Lorain, OH, now lives in Santo Domingo, in the Dominican Republic after he was ordered removed from the United States by immigration officials in 2016.
Conspiracy to Commit Wire Fraud carries a maximum sentence of five (5) years and Wire Fraud carries a maximum sentence of twenty (20) years. Upon release from prison, all defendants also face a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to each defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571.
According to the Indictment, in the beginning of February 2017, FERNANDEZ devised a scheme to defraud by fraudulently representing himself as an immigration attorney. Specifically, FERNANDEZ and other coconspirators acting at his direction, created the fictitious law firm of “Micheal (sic) Browns Immigration Attorneys” with an address of 4207 Parliament Drive, Alexandria, LA 71303. FERNANDEZ enlisted the assistance of RAMIREZ and TOLSON to receive funds from various individuals who were victims of FERNANDEZ’s scheme. RAMIREZ and TOLSON agreed to wire via Western Union the fraudulently obtained funds they received to FERNANDEZ in the Dominican Republic. Part of their agreement was that FERNANDEZ would split these funds with RAMIREZ and TOLSON.
During the scheme, FERNANDEZ fraudulently represented himself as an attorney named “Robert McCane” and FERNANDEZ, RAMIREZ, and TOLSON represented themselves as employees with the “Micheal Browns Immigration Attorneys” law firm. According to the Indictment, FERNANDEZ, RAMIREZ, and TOLSON represented to Individual A’s family members that “McCane” was an attorney associated with the “Micheal Browns Immigration Attorneys” law firm located in Alexandria, LA which also had offices in New York and Ohio. The Indictment alleges that FERNANDEZ, RAMIREZ, and TOLSON utilized various email accounts to communicate with Individual A’s family members in an effort to promote the scheme. For example, FERNANDEZ, RAMIREZ, and TOLSON created a “Legal Services Agreement” that was emailed to Individual A’s family members which referenced a $4,980.00 fee and a $980.00 initial deposit for “attorney’s fees and cost incurred by clients.” FERNANDEZ, RAMIREZ, and TOLSON obtained money from Individual A’s family members under the guise of collecting a retainer to provide legal services for Individual A and under the pretense of posting a bond to secure the release of Individual A from immigration custody.
The Indictment details how TOLSON opened a bank account at a Chase Bank branch in Lorain, OH in order to receive fraudulently obtained payments from Individual A’s family members and how FERNANDEZ, RAMIREZ, and TOLSON utilized various Chase Bank locations in Lorain, OH and Western Union agent branches to conduct cash transactions to withdraw payments from Individual A’s family members. Further, the Indictment describes how RAMIREZ and TOLSON utilized Western Union locations to wire fraudulently obtained payments to FERNANDEZ in the Dominican Republic. The Indictment also alleges that FERNANDEZ, RAMIREZ, and TOLSON falsely represented themselves as employees of the U.S. Department of Homeland Security.
On February 11, 2019, Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) arrested TOLSON and RAMIREZ in Ohio. On February 11, 2019, TOLSON and RAMIREZ appeared before a federal magistrate judge in Ohio who released TOLSON on a $10,000 bond and with the condition that she appear in U.S. District Court for the Eastern District of Louisiana on February 25, 2019. RAMIREZ was detained pending a detention hearing scheduled for February 13, 2019, in federal court in Toledo, Ohio. The U.S. Attorney’s Office for the Eastern District of Louisiana and HSI are working with the U.S. Department of Justice’s Office of International Affairs and the U.S. Department of State to extradite FERNANDEZ from the Dominican Republic.
U.S. Attorney Peter G. Strasser praised the work of Homeland Security Investigations. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Indiana Man Charged with Sexual Exploitation Involving a Minor from Madera CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Scott Matthew Trischler, 24, of Ft. Wayne, Indiana, charging him with one count of sexual exploitation of a minor, one count of enticement of a minor, and one count of receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to a criminal complaint, Trischler developed a relationship with a minor in Madera County while playing an online game with her. Trischler then communicated with the minor through Kik Messenger, Skype, TextNow, and Google Hangouts. He convinced her to create and transmit to him images of herself engaging in sexually explicit conduct from approximately December 2017 through March 2018.
Trischler was arrested in Ft. Wayne, Indiana on February 5, 2019, and he has been ordered detained at least through his next court appearance there on March 5, 2019.
This case is the product of an investigation by the Fresno, California and Ft. Wayne, Indiana offices of the Federal Bureau of Investigation as well as the Madera County Sheriff’s Office. Assistant U.S. Attorney David Gappa is prosecuting the case.
If convicted, Trischler faces the following possible penalties: a mandatory minimum term of 15 years and a maximum of 30 years in prison for the sexual exploitation count; a mandatory minimum of 10 years to a maximum of life in prison for the enticement count; and a potential five to 20 years in prison for the one count of receipt of child pornography. For all counts there is a potential $250,000 fine and a lifetime term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Haughville drug trafficking organization dismantledRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced federal criminal charges against 24 individuals for a methamphetamine, heroin and cocaine distribution conspiracy and a federal firearms related charge.
On February 13, 2019, agents and officers from various law enforcement agencies executed arrest and search warrants in numerous locations centralized to the Haughville community in Indianapolis, Indiana. This operation led to the arrest of 22 individuals. During the investigation approximately 40 firearms, $155,000 in currency, 3 vehicles, and quantities of heroin, fentanyl, methamphetamine, cocaine and marijuana were seized.
Those charged include:
Jshaun Trice, 31, Indianapolis
Terrence Stum, 35, Indianapolis
Demetrick Holder, 20, Indianapolis
Darryl Allen, 35, Indianapolis
Eric Bard, 33, Indianapolis
Dustin Manuel, 30, Indianapolis*
Kelvin Washington, 34, Indianapolis
Gerald Hoskins, 23, Indianapolis
Devin Jones, 28, Indianapolis*
Adrian Myles, 40, Indianapolis
Christopher Hill, 30, Indianapolis
Robert Hadley, 48, Indianapolis
Danny Jenkins, 47, Indianapolis
Antonio McClure, 37, Indianapolis*
James Gibson, 33, Indianapolis
Carlo Payne, 39, Indianapolis
Thomas Acord, 30, Bloomington
Alton Brown Sr., 53, Indianapolis*
Steven Savage, 29, Indianapolis
Derrick O’Connor, 52, Indianapolis
Melissa Kidwell, 39, Indianapolis
Jacqueline Huffman, 40, Indianapolis
Jacob Jones, 30, Indianapolis
Sheridan Sisk, 37, Indianapolis
*Remains a fugitive
According to the indictment, Jshaun Trice and Terrence Stum directed the activities of a methamphetamine, heroin and cocaine trafficking organization in Indianapolis, Indiana. Jshaun Trice, Terrence Stum, Demetrick Holder and Gerald Hoskins coordinated their activities by receiving methamphetamine, heroin and cocaine from diverse sources, sharing controlled substances with each other, and distributing the controlled substances to customers. Individuals in the conspiracy distributed methamphetamine, heroin and cocaine on the 700 block of Arnolda Avenue, in the Haughville neighborhood in Indianapolis, Indiana, among other locations.
“Utilizing the Organized Crime Drug Enforcement Task Force model, the Justice Department works collaboratively to target, investigate and prosecute organizations engaged in dangerous and harmful drug trafficking activity in our community,” said Josh Minkler. “This year, the United States Attorney’s Office created a standalone OCDETF Unit led by Senior Litigation Counsel Bradley A. Blackington to tackle and unearth individuals and organizations operating to the detriment of communities like Haughville. The challenges we face are not insurmountable when we pair criminal prosecution as a deterrent with wraparound services like those being offered by the City in this instance.”
This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Indianapolis Metropolitan Police Department, Marion County Sheriff’s Department, United States Postal Inspection Service, Internal Revenue Service Criminal Investigation Division, and the Indiana State Police.
“These arrests disrupted a violent drug trafficking ring and sent a clear message – if you are involved in illegal drug activity and violent crime in our city you will wake up one morning with law enforcement at your door. This case is at the heart of our collective mission to rid our communities of violent drug offenders and the destruction their activities create,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI, along with our federal, state and local partners, remains strongly committed to identifying and investigating those responsible for harming our communities.”
“Our community and the Haughville neighborhood deserve better than to be re-victimized by the crime and violence they have endured,” said Mayor Joe Hogsett. “This means the illicit economy and criminal infrastructure that existed here must be replaced with hope and opportunity. And so our Office of Public Health and Safety will be convening community and City resources to help fill the needs of a neighborhood in recovery.”
“The individuals removed from our community account for thousands of reported violent crimes. These arrests will reduce not only the amount of illicit drugs in our city, but also the violence that accompanies the drug trade,” said IMPD Chief Bryan Roach. “To break the cycle of drug-related crime and violence, we must fill the economic vacuum left behind, which is why the wraparound services that will be available are critically important to the safety of our city. The dedicated women and men of the IMPD will continue to work alongside our local and federal partners to improve the safety of our neighborhoods and the quality of residents’ lives.”
“As violence and drug trafficking tactics evolve, so does the strategy we implement with federal, state, and local law enforcement agencies as well as our community partners,” Marion County Prosecutor Terry Curry stated. “We are your neighbors, and we are committed to improving public safety in every neighborhood of our county.”
“This is a great example of the synergy that can be gained when law enforcement pools resources and works together to bring down criminal drug organizations,” said Inspector in Charge Patricia Armstrong of the Detroit Division, U.S. Postal Inspection Service.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation said, “IRS Criminal Investigation is charged with disrupting the money flow of criminal organizations. Our agents trace criminal proceeds and work to deprive criminals of their illicit spoils. Together with our OCDETF partners we dismantle illegal drug and money laundering enterprises that try to take root in Indiana.”
Indiana State Police Superintendent Doug Carter said, “Partnerships like this are what put criminal organizations out of business and their operators in prison.” Carter continued, “For those who are addicted, there is help, but for those who are contributing to - and profiting from - the addiction and misery of others; we have prison cells waiting.”
An indictment is merely a charge and not evidence of guilt. All defendant are considered innocent until proven guilty in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. The Organized Crime Drug Enforcement Task Force (OCDETF) is utilized to target, investigate, and prosecute more violent criminal organizations, with a goal of detaining and sentencing more violent offenders to significant prison terms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.1
Hartford Resident Charged with Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging MICHAEL SZWARC, 31, last residing in Hartford, with one count of receipt of child pornography.
The indictment was returned on February 5, 2019. Szwarc, who had been detained in state custody since September 8, 2018, appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charge. He is detained pending trial.
As alleged in the indictment, between June and September 2018, Szwarc received images of minors engaged in sexually explicit conduct.
The indictment further alleges that, in October 2013, Szwarc was convicted in Connecticut Superior Court of possession of child pornography.
If convicted of the federal charge, due to his alleged prior conviction, Scwarc faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department, with the assistance of the Office of Adult Probation. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Gregorio Blas Cruz Jr. Sentenced to Prison in Drug CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Gregorio Blas Cruz, Jr., age 50, originally from Mongmong, Guam, was sentenced on February 13, 2019, in two cases involving Possession with Intent to Distribute Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The District Court sentenced Cruz to concurrent 70-month terms of imprisonment, to be followed by three years of supervised release. The Court also ordered Cruz to pay a mandatory $200 assessment fee. In addition, defendants who are convicted of a federal drug offense may no longer qualify for certain federal benefits.
On July 8, 2015, Cruz pled guilty to possessing methamphetamine with intent to distribute, in a case involving approximately 33 grams of ice and the seizure of $3,390 in U.S. currency. On April 21, 2016, while on pretrial release for that case, Cruz was arrested again for a similar offense. His second case involved 292 grams of methamphetamine and the seizure of over $1,000 in U.S. currency. Cruz had prior convictions in the Superior Court of Guam for family violence, theft and drugs.
The government requested a significant downward departure in Cruz’s sentence due to his providing law enforcement with information that resulted in the seizure of approximately ten pounds of methamphetamine. A DEA Task Force Officer from the Judiciary of Guam, Probation Office, testified at sentencing that the street value of the ten pounds of methamphetamine was over two million dollars. Due to Cruz’s 25-year drug addiction, the Court recommended his enrollment in a Bureau of Prisons drug treatment program while incarcerated.
The Drug Enforcement Administration conducted the investigation, in conjunction with Judiciary of Guam, Probation Office and Guam Police Department. The case was prosecuted by Belinda Alcantara, an Assistant U.S. Attorney in the District of Guam.
Grayson County Man Sentenced to 10 Years in Federal Prison for $2.1 Million Bank Fraud OffenseRead the Press Release
SHERMAN, Texas – A 38-year-old Sherman man has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown.
Michael Shelley pleaded guilty on July 18, 2018, to bank fraud and was sentenced to 120 months in federal prison on Feb. 7, 2019, by U.S. District Judge Amos Mazzant. Shelley was also ordered to pay restitution in the amount of $2,189,073 to Lone Star Agricultural Credit Association (LSAC).
According to information presented in court, Shelley engaged in bank fraud while employed as a licensed loan officer at LSAC. Shelley devised and executed a scheme to defraud LSAC of millions of dollars through loan manipulation. Without LSAC’s knowledge or authorization, Shelley fabricated loan documents, advanced funds to fictitious borrowers, and manipulated collateral and loan interest rates. He made unauthorized fund transfers from fictitious borrowers to existing LSAC customers, all to the detriment of LSAC. Shelley’s criminal conduct involved nearly $9 million in LSAC loans and funds.
At sentencing, counsel for the victim, LSAC, explained the expansive financial harm Shelley’s fraud caused to both LSAC and its borrower-members. Due to Shelley’s position of authority within the bank, LSAC had to expend significant resources to unwind and uncover the full breadth and impact of his fraud. According to LSAC, the impact of Shelley’s fraud will be felt for years to come.
“Employee theft affects many businesses, and it can be devastating to a company,” said U.S. Attorney Joe Brown. “Unfortunately, this man had access to a whole lot of money, and he took advantage of that, and took advantage of the bank. It doesn’t matter whether it’s stolen with a gun or computer, it hurts just as bad to the victim.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason, with the assistance of Assistant U.S. Attorney Robert Austin Wells.
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Former Grain Elevator Manager Pleads Guilty to Mail Fraud and Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of JEROME ROBERT HENNESSEY, 56, to one count of mail fraud and one count of tax evasion. HENNESSEY, who was charged via felony information on December 18, 2018, entered his guilty plea earlier today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from 2003 through September 2018, HENNESSEY, the former manager of Ashby Farmers’ Co-Operative Elevator Company (“the Co-op”), was responsible for overseeing the day-to-day activities of the Co-op, controlling the bank accounts and obtaining loans for the business. Using his position and his control over the Co-op’s bank accounts, HENNESSEY wrote checks to himself and to third parties for, among other things, renovations and improvements to his residence and a cabin, the purchase of real estate, the purchase of all-terrain vehicles, outstanding credit card balances, property taxes, expensive hunting trips, and taxidermy services.
According to the defendant’s guilty plea and documents filed in court, HENNESSEY attempted to disguise the payments by writing descriptions on the carbon copies of the checks falsely indicating that the checks were for the purchase of corn and soybeans or other operating expenses and supplies. HENNESSEY then provided the carbon copies to the Co-op’s bookkeeper, thus ensuring that the Co-op’s accounting records would give the false impression that the funds HENNESSEY had taken had been used for legitimate purposes. In order to make sure that the Co-op had sufficient funds to cover its legitimate expenses and to cover the millions of dollars that HENNESSEY stole, HENNESSEY obtained a line of credit for more than $7 million. In total, HENNESSEY stole approximately $5,338,922.21.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division, the Grant County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney John Kokkinen is prosecuting the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Convicted:
- Mail Fraud, 1 count
- Income Tax Evasion, 1 count
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Former Federal Employee and Former Director of Defense Contractor Charged in Fraud SchemeRead the Press Release
NEWARK, N.J. – A former civilian employee at Picatinny Arsenal and a former official of a defense contractor with a branch office in Lake Hopatcong, New Jersey, have been charged with conspiracy to commit wire fraud, U.S. Attorney Craig Carpenito announced today.
Robert Dombroski, 63, of Branchville, New Jersey, is charged by complaint with one count of conspiracy to commit wire fraud and four counts of making false statements. Indra Nayee, 51, of Metuchen, New Jersey, is also charged by complaint with one count of conspiracy to commit wire fraud. Both men are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
Dombroski worked at Picatinny Arsenal for over 30 years, retiring as a federal employee in 2015. He was then hired as a civilian, serving as a Senior Products Manager for advanced weapons. Prior to retiring, Dombroski held the position of senior associate for advanced weapons and worked on and supervised contract projects with a defense contractor, identified in court papers as “Company A,” which is headquartered in Arlington, Virginia, and has a branch office in Lake Hopatcong, New Jersey. In that capacity, Dombroski had influence over the awarding of government contracts to this company and influenced how the money was allocated.
Nayee was the former Picatinny Arsenal division director of Company A, and had direct oversight and control over how his company executed the government contracts it had with Picatinny Arsenal. He supervised and directly managed all branch employees. Nayee was the primary point of contact at Company A for Picatinny Arsenal employees, including Dombrowski.
From 2010 through 2018, Dombroski and Nayee conspired with other federal employees at Picatinny Arsenal and employees of Company A to seek and accept gifts and other items of value, such as Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at $150,000 to $250,000, in exchange for government contracts and other favorable assistance for Company A at Picatinny Arsenal.
The count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison. The false statement charges each carry a maximum penalty of five years in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge L. Scott Moreland, with the ongoing investigation.
The government is represented by Senior Trial Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office’s National Security Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Dombrowski: John Reilly Esq., Nayee: Mauro Wolf Esq., New York
Former Cheerleading Coach Who Committed Sexual Assault on Cruise Ship Found Guilty of Two FeloniesRead the Press Release
LOS ANGELES – A former cheerleading coach has been found guilty of two federal felony charges for sexually assaulting an intoxicated woman on a cruise ship bound from Long Beach to Ensenada, Mexico during the summer of 2015.
Anthony Paul De La Torriente, 30, of Simi Valley, on Wednesday was found guilty by a jury of one count of sexual abuse and one count of abusive sexual contact. In reaching the verdict, the jury found that De La Torriente knew the victim was physically unable to decline participation or she had communicated unwillingness to engage in the sexual act.
United States District Judge Dale S. Fischer has scheduled a June 10 sentencing hearing, where De La Torriente faces a statutory maximum sentence of life in federal prison.
During the one-week trial, prosecutors presented evidence that De La Torriente volunteered to stay alone in the victim’s cabin with the victim, whose severe intoxication from a daytime excursion in Ensenada had worried their colleagues, while the colleagues got food on the cruise ship. Once alone with the victim, De La Torriente sexually assaulted her. When their colleagues returned, they found the victim’s cabin door had been double-locked from the inside. When De La Torriente eventually unlocked the door and allowed their colleagues inside, the victim identified De La Torriente as her assailant.
The victim reported the assault to the cruise ship’s medical and security staff. Swabs taken from the victim’s body matched De La Torriente’s DNA while swabs taken from inside and outside of his underwear matched the victim’s DNA.
This case was investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorneys Cassie D. Palmer of the Public Corruption and Civil Rights Section and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
Florida Compounding Pharmacy and Its Owners to Pay at Least $775,000 to Resolve False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that Vital Life Institute LLC (formerly known as AgeVital Pharmacy LLC), located in Sarasota, Florida, and owners Jenny and William Wilkins have agreed to pay at least $775,000 to resolve claims that they violated the False Claims Act by engaging in an illegal kickback scheme to induce the referral of compounded drug prescriptions for TRICARE and Medicare beneficiaries. AgeVital and the Wilkinses have agreed to pay additional amounts in the event certain contingencies are triggered.
The settlement resolves allegations that AgeVital, at the direction of the Wilkinses, paid kickbacks to a third-party marketing company to solicit prospective patients for compounded drug prescriptions regardless of patient need. The marketing company arranged for prescribers to sign those prescriptions, which were then referred to AgeVital to be filled. The kickbacks to the marketing entity allegedly consisted of a substantial share of the pharmacy’s TRICARE and Medicare reimbursements. The Anti-Kickback Statute prohibits, among other things, the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute can subject the violator to liability under the False Claims Act.
“The Department will continue to hold accountable providers that pay illegal kickbacks to induce patient referrals,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Kickback schemes undermine public trust in our health care system and lead to unnecessary health care costs at taxpayers’ expense.”
“We will not tolerate those who profit at the expense of taxpayers by entering into illegal kickback arrangements,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “Our office is committed to holding individuals accountable for corporate malfeasance.”
“These prescriptions were ordered to increase profits, not improve the healthcare of patients. Healthcare providers who satiate their greed at the expense of the American taxpayer will not be tolerated,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (OIG). “This settlement demonstrates the resolve of OIG and our law enforcement partners to root out fraud, waste, and abuse in our healthcare system.”
“I thank the Department of Justice and the U.S. Attorney for their efforts throughout this investigation,” said Vice Admiral Raquel Bono, director of the Defense Health Agency. “American service members, veterans, and their families appreciate that the Department of Justice works diligently to safeguard their health benefit. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies, to investigate all those who participate in fraudulent practices.”
The settlement resolves a lawsuit filed in federal court in Tampa, Florida, by Manfred Knopf, who allegedly received unwanted compounded medications from AgeVital that were billed to Medicare. That lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act. The Act permits private parties to bring a lawsuit on behalf of the United States for false claims and to share in any recovery. Mr. Knopf will receive at least $139,500 of the settlement.
The United States’ investigation of this matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States ex rel. Knopf v. AgeVital Pharmacy, LLC et al., Case No. 8:15-cv-2591-T-36JSS (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Florida Compounding Pharmacy and Its Owners to Pay at Least $775,000 to Resolve False Claims Act AllegationsRead the Press Release
Tampa, FL – The Department of Justice announced today that Vital Life Institute LLC (formerly known as AgeVital Pharmacy LLC), located in Sarasota, Florida, and owners Jenny and William Wilkins have agreed to pay at least $775,000 to resolve claims that they violated the False Claims Act by engaging in an illegal kickback scheme to induce the referral of compounded drug prescriptions for TRICARE and Medicare beneficiaries. AgeVital and the Wilkinses have agreed to pay additional amounts in the event certain contingencies are triggered.
The settlement resolves allegations that AgeVital, at the direction of the Wilkinses, paid kickbacks to a third-party marketing company to solicit prospective patients for compounded drug prescriptions regardless of patient need. The marketing company arranged for prescribers to sign those prescriptions, which were then referred to AgeVital to be filled. The kickbacks to the marketing entity allegedly consisted of a substantial share of the pharmacy’s TRICARE and Medicare reimbursements. The Anti-Kickback Statute prohibits, among other things, the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute can subject the violator to liability under the False Claims Act.
“The Department will continue to hold accountable providers that pay illegal kickbacks to induce patient referrals,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Kickback schemes undermine public trust in our health care system and lead to unnecessary health care costs at taxpayers’ expense.”
“We will not tolerate those who profit at the expense of taxpayers by entering into illegal kickback arrangements,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “Our office is committed to holding individuals accountable for corporate malfeasance.”
“These prescriptions were ordered to increase profits, not improve the healthcare of patients. Healthcare providers who satiate their greed at the expense of the American taxpayer will not be tolerated,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (OIG). “This settlement demonstrates the resolve of OIG and our law enforcement partners to root out fraud, waste, and abuse in our healthcare system.”
“I thank the Department of Justice and the U.S. Attorney for their efforts throughout this investigation,” said Vice Admiral Raquel Bono, director of the Defense Health Agency. “American service members, veterans, and their families appreciate that the Department of Justice works diligently to safeguard their health benefit. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies, to investigate all those who participate in fraudulent practices.”
The settlement resolves a lawsuit filed in federal court in Tampa, Florida, by Manfred Knopf, who allegedly received unwanted compounded medications from AgeVital that were billed to Medicare. That lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act. The Act permits private parties to bring a lawsuit on behalf of the United States for false claims and to share in any recovery. Mr. Knopf will receive at least $139,500 of the settlement.
The United States’ investigation of this matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States ex rel. Knopf v. AgeVital Pharmacy, LLC et al., Case No. 8:15-cv-2591-T-36JSS (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.