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6 February 2019
Laura Sue Aloa Covington Sentenced to Serve 135 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 6, 2019, Laura Sue Aloa Covington, 23, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve over 11 years in federal prison.
Covington pleaded guilty in October 2018 to conspiring with Jeffrey Scott Horner, 34 of Morristown, Tennessee; Joshua Tyler Garrett, 38, of Talbott, Tennessee; Faith Dillman-Covington, 26, of Morristown, Tennessee; Ricky Dwayne Collins, 38, of Morristown, Tennessee and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018.
All defendants in this case have been convicted and await sentencing. Horner is set to be sentenced on February 13, 2019. Garrett is set to be sentenced on March 4, 2019. Sentencing for Dillman-Covington is set for April 1 2019. Finally, Collins is set to be sentenced on April 8, 2018. All face 10 years to life in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
This case was part of the Appalachia High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
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Kayenta Man Sentenced to 14 Years in Federal Prison for Second Degree Murder Related to Drunk DrivingRead the Press Release
PHOENIX – On Feb. 4, 2019, Clayton Begay, 43, of Kayenta, Ariz., was sentenced by U.S. District Judge John Tuchi 14 years’ imprisonment, followed by five years of supervised release. Begay had previously pleaded guilty to one count of second degree murder on August 2018.
In Nov. 8, 2015, Begay who had a history of DUI convictions drove his vehicle with a BAC level between .384 and .401. As a result, Begay caused his vehicle to roll over and crash, killing two passengers and seriously injuring a third passenger. Begay is a member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation, Navajo Nation Department of Law Enforcement and the Arizona Department of Public Safety. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-18-8208-PCT-JJT
RELEASE NUMBER: 2019-006_ Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Kanawha County Man Pleads Guilty to Mail FraudRead the Press Release
CHARLESTON, W.Va. – Robert Casdorph entered a guilty plea to the felony offense of Mail Fraud, announced United States Attorney Mike Stuart. Casdorph, 58, of Charleston, Kanawha County, West Virginia faces up to 20 years of incarceration when he is be sentenced on May 1, 2019. He will also be required to pay restitution to the law firm where he was previously employed. United States Attorney Mike Stuart praised the work of the United States Postal Inspection Service and the Federal Bureau of Investigation.
“It’s hard enough to run a business without employees stealing from you,” said United States Attorney Mike Stuart. “My office is committed to protecting the business community from fraudsters like Casdorph.”
Casdorph previously worked at a Charleston, West Virginia law firm and land company as both a runner and a driver. In 2011, he was internally promoted to receive accounts and help manage money. Casdorph devised a scheme to defraud the law firm by including personal bills within the bills that the law firm was required to pay. He would present a check for signature that included both the law firm/land company bill and his personal bills totaled together. These included power, water, cell phone, taxes and credit card bills. Casdorph would then place the check in the mail. This scheme went on for several years, lasting through 2016. Casdorph also used law firm monies to renovate his home. Finally, Casdorph forged the name of a law firm member on three checks and gave it to a local builder to continue renovations on his home. The total financial loss to the law firm was at least $54,402. Casdorph is no longer employed by the law firm/land company.
Assistant United States Attorney Erik S. Goes handled the prosecution. United States District Judge Joseph R. Goodwin presided over the hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Justice Department Obtains $750,000 from PHH Mortgage Corp. for Unlawfully Foreclosing on Servicemembers’ HomesRead the Press Release
WASHINGTON –The Justice Department today announced that PHH Mortgage Corporation (PHH) has agreed to pay $750,000 to six servicemembers to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by unlawfully foreclosing on their homes without obtaining the required court orders.
“Our men and women in uniform deserve to be able to focus on their job of keeping our country safe without worrying about losing their homes to an unlawful foreclosure,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division is committed to protecting the rights of our servicemembers from unlawful conduct.”
“The brave men and women who serve in our nation’s armed forces frequently are required to deploy and serve overseas with little notice,” U.S. Attorney Craig Carpenito said. “This Office remains resolute in its commitment to honor their personal sacrifices when they do so by ensuring that servicemembers’ rights will be protected, as the law requires, whenever duty calls. This agreement ensures that servicemembers will be compensated for the damages they suffered when their homes were improperly foreclosed upon while they were serving our country.”
The SCRA prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of military service.
PHH is one of the United States’ largest mortgage loan servicers, operating nationwide. The New Jersey-based company also originates, sells and subservices residential mortgage loans.
The Department launched an investigation, which was handled jointly by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey, after it received a complaint in May 2016 through the Department’s Servicemembers and Veterans Initiative. The Department’s investigation revealed that PHH foreclosed on six homes of SCRA-protected servicemembers in violation of the SCRA between 2010 and 2012.
The agreement resolves a suit filed today by the United States in the United States District Court for the District of New Jersey.
The agreement requires PHH to pay $125,000 to each servicemember whose home was unlawfully foreclosed upon. The agreement also requires PHH to provide training to its staff to ensure that servicemembers do not face unlawful foreclosures in the future, and to notify the Department of future complaints regarding servicemembers’ rights.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. Since 2011, the Department has obtained over $468 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
Judge orders 22 years in prison for Hays woman convicted of sexually abusing childRead the Press Release
GREAT FALLS – Hays resident Geneva Nadeau, convicted of sexually abusing and photographing a child, was sentenced today to 22 years in federal prison and to 15 years of supervised release, U.S. Attorney Kurt Alme said.
Nadeau, 38, pleaded guilty earlier to aggravated sexual abuse.
U.S. District Judge Brian M. Morris presided.
Prosecutors said that in October 2015 in Hays, on the Fort Belknap Indian Reservation, Nadeau sexually abused a child, who was younger than 12, and photographed the abuse. Nadeau was indicted after the Blaine County Sheriff’s Office got a tip that Nadeau had an email address that contained child pornography. Nadeau was arrested on unrelated charges and law enforcement discovered she also had on her tablet child porn images, including the sex abuse of the child.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI, Fort Belknap Police Department and the Blaine County Sheriff’s Office.
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Joplin Man Sentenced to 28 Years for Sexual Exploitation of ChildrenRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for the sexual exploitation of several children.
David Allen Giffen, 57, was sentenced by U.S. District Judge M. Douglas Harpool to 28 years in federal prison without parole. The court also sentenced Giffen to spend the rest of his life on supervised release following incarceration.
On July 18, 2018, Giffen pleaded guilty to one count of the sexual exploitation of a child and one count of receiving and distributing child pornography.
According to court documents, Giffen had placed cameras in his bathroom and secretly recorded images and videos of three children. Investigators found images of the victim children on a Micro SD card in Giffen’s cell phone. Investigators also seized a second cell phone from Giffen that contained multiple images of child pornography.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Joplin, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Joplin Day Care Operator Sentenced for Adoption SchemeRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., day care operator was sentenced in federal court today for a scheme to take the infant daughter of a client to Arkansas to be adopted by another couple.
Lasonya Faye Poindexter, 31, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to six years in federal prison without parole. The court also ordered Poindexter to pay $1,500 in restitution to the victim parents.
On June 21, 2018, Poindexter pleaded guilty to one count of wire fraud.
Poindexter began taking care of a Joplin couple’s two children at her home day care in April 2017. Poindexter admitted that she contacted a couple in Lincoln, Ark., and offered to make arrangements for the couple to adopt one of those children, a five-month-old daughter identified in court documents as Jane Doe. The infant’s parents had never put Jane Doe up for adoption, nor had they ever told anyone that Jane Doe was available to be adopted.
Poindexter made multiple trips to Lincoln in June and July 2017 so the Arkansas couple, who had recently suffered the loss of their unborn child due to a miscarriage, could spend time with Jane Doe. Jane Doe’s parents had never given Poindexter permission to take their daughter across state lines to Arkansas and were unaware that any of the trips occurred. The Arkansas couple usually met with Poindexter at the home of Poindexter’s aunt, but one visit was at the couple’s own home (where they had prepared a nursery room for Jane Doe).
Poindexter falsely told the Arkansas couple that the infant’s mother had left her baby at Poindexter’s house and wanted her to find a good family for Jane Doe because she was the product of a rape. Poindexter told the Arkansas couple that Jane Doe’s mother wanted a closed adoption.
Poindexter asked the Arkansas couple for money to provide for the care of Jane Doe until the adoption was finalized. The couple refused to provide Poindexter money until the adoption was finalized.
The Arkansas woman who sought to adopt Jane Doe viewed the mother’s Facebook page in July 2017 and noticed numerous images of Jane Doe with her mother. On July 20, 2017, the Arkansas woman contacted the mother of Jane Doe through Facebook. She sent the mother of Jane Doe a private message, telling the mother that she and her husband were planning to adopt Jane Doe and asking if she truly wanted to put Jane Doe up for adoption. Jane Doe’s parents then contacted law enforcement.
The Arkansas woman confronted Poindexter after communicating with Jane Doe’s mother. Poindexter sent her a screen shot of an e-mail that appeared to be from an attorney. In reality, the fake e-mail was created by Poindexter. The attorney later told investigators he had never represented Poindexter, had any communication with her and was not involved with any adoption proceeding with Jane Doe.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Joplin, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force, the FBI and the Missouri Division of Family Services.
Johnstown Opioid Treatment Center Owner Indicted for Unlawfully Dispensing Controlled Substances, Money LaunderingRead the Press Release
PITTSBURGH, PA. - The owner and operator of SKS Associates, Inc. (SKS) has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to unlawfully distribute controlled substances, using or maintaining a drug involved premises, conspiracy to commit health care fraud and money laundering, United States Attorney Scott W. Brady announced today.
The five-count Indictment, returned on Feb. 5, named Stephen K. Shaner, 69, of Bulger, PA.
According to the indictment presented to the court, Shaner owns and operates SKS, a clinic that provides Medically Assisted Treatment (MAT) to opioid dependent individuals with a location at 2001 Bedford Street in Johnstown, PA. The indictment alleges that Shaner conspired with Dr. Michael Cash and Dr. Ruth Jones to create and submit unlawful prescriptions for buprenorphine, and then unlawfully dispensed those controlled substances. Shaner is also charged with conspiring with Drs. Cash and Jones to commit health care fraud for allegedly submitting fraudulent claims to Medicare, for payments to cover the costs of the unlawfully prescribed buprenorphine. In addition, Shaner is charged with using or maintaining a drug involved premises between May 2012 and April 2018 for the dispensing of the drugs. Finally the indictment alleges that Shaner used the proceeds of the unlawful drug activity to pay for personal obligations in violation of the money laundering statutes. Dr. Michael Cash and Dr. Ruth Jones have pleaded guilty and are awaiting sentencing.
"We have made significant progress in combatting the opioid epidemic in the Western District of Pennsylvania," said U.S. Attorney Brady. "Overdose deaths are down overall in our District. But our work has not ended. We will continue to investigate and prosecute those who prey on people with opioid addiction."
The law provides for a maximum total sentence of 60 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jessica James Sentenced to Serve 180 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 6, 2019, Jessica James, 30, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 15 years in federal prison.
James pleaded guilty in October 2018 to conspiring with Trinity Scott Johnson, 39, of Morristown, Tennessee; Truman Lee Smith, 24, of Russellville, Tennessee; Colby Scarlett, 20, of Morristown, Tennessee; and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018. In October 2018, Johnson was sentenced to serve 204 months in prison. Smith was sentenced in November 2018 to serve 10 years in federal prison. In January 2019, Scarlett was also sentenced to serve 10 years in federal prison.
Sentencing for codefendant Megan Gilliam, 25, of Morristown, Tennessee, is set for February 11, 2019. She also faces 10 years to life in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
This case was also the result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Charles Brown, Jr. 42, of Jackson, pled guilty yesterday before United States District Judge Carlton W. Reeves to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives.
On June 25, 2017, Charles Brown, Jr. arrived at the Jackson Police Department ("JPD") with a female identified as "T.W." Brown stated that he was bringing her to JPD because he believed "T.W." had information about a crime that had been committed. Brown was seen wearing a bulletproof vest walking towards a maroon 2000 Jeep Grand Cherokee. A JPD officer noticed that the vehicle had police dashboard lights on the front windshield. Brown is not a member of any law enforcement agency. JPD officers asked Brown if he had a firearm inside the vehicle and he responded that he did. An inventory of the vehicle was conducted and a Rohm RG38 .38 caliber firearm and a Winchester box containing 28 rounds of ammunition were found.
On April 4, 2018, an indictment was filed charging Brown with being a felon in possession of a firearm. Brown was previously convicted in Hinds County Circuit Court for shooting into an occupied dwelling.
Brown is scheduled to be sentenced by Judge Reeves on May 17, 2019 and faces a maximum sentence of 10 years in federal prison and a $250,000 fine.
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 in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as Project EJECT task force members. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Indictment: Two Topeka Men Were Behind CarjackingsRead the Press Release
TOPEKA, KAN. – Two Topeka men were indicted today on federal carjacking charges, U.S. Attorney Stephen McAllister said.
Chauncey Elliott Lyles, 19, Topeka, Kan., and Mathdaniel Squirrel, 22, Topeka, Kan., were charged with one count of conspiracy and one count of carjacking. In addition, Lyles was charged with brandishing a .223 caliber American Tactical rifle during a carjacking.
The indictment alleges that on Jan. 30 the defendants threatened two drivers and stole their cars, a 2007 Cadillac DTS and a 2013 Dodge Dart. When police responded, the defendants fled in the Dodge Dart. They hit a tree in the 400 block of northeast Freeman and fled on foot before police took them into custody.
If convicted, they face the following penalties:
Conspiracy: Up to five years in federal prison and a fine up to $250,000 on the conspiracy count.
Carjacking: Up to 15 years and a fine up to $250,000.
Brandishing a firearm in a carjacking: Not less than five years and a fine up to $250,000.
The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Skip Jacobs is prosecuting.
OTHER INDICTMENTS
Brian L. Hernandez, 25, who is in custody, is charged with one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana, and one count of unlawful possession of firearms in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 31 in Shawnee County, Kan.
The indictment alleges Hernandez possessed a .40 caliber Glock handgun, a 9 mm Glock handgun, and a .223 caliber Bushmaster rifle.
If convicted, he faces the following penalties:
Possession with intent to distribute cocaine: Up to 20 years in federal prison and a fine up to $250,000.
Possession with intent to distribute marijuana: Up to five years and a fine up to $250,000.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Stephen Hunting is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Independent Contractor Pleads Guilty to Tax EvasionRead the Press Release
A Tulsa man, John D. Petrig, 49, pleaded guilty yesterday to one count of tax evasion in U.S. District Court, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Trent Shores of the Northern District of Oklahoma.
Chief U.S. District Judge Gregory K. Frizzell accepted Petrig’s guilty plea and released the defendant on bond pending sentencing on May 7, 2019.
“The Department of Justice prosecutes tax evaders to hold them accountable for their criminal conduct and to ensure that the tax system is fairly enforced throughout the nation,” stated Principal Deputy Assistant Attorney General Zuckerman.
“The federal income tax system is based upon the compliance of the taxpaying citizens of this nation. When an individual, such as Mr. Petrig, decides to shirk his responsibility to pay what he owes, then other law-abiding citizens end up shouldering the burden,” said U.S. Attorney Trent Shores. “Mr. Petrig’s criminal acts cost taxpayers not only the loss of the unpaid taxes, but also the additional expense for investigating and prosecuting his criminal behavior.”
According to court documents, from 2000 to 2012, Petrig worked for a company as an independent contractor installing ATM machines inside casinos. The company paid him commissions based on the number of transactions executed at the ATMs. In 2012, Petrig late-filed his 2005 tax return, reporting an income of $394,317; however, he did not pay the $110,372 in taxes that he owed. Instead, from January 2012 to December 2012, Petrig attempted to evade payment of the $110,372. When the Internal Revenue Service (IRS) sent a levy to Petrig’s employer directing that Petrig’s commission payments be forwarded to the IRS to pay his tax debt, Petrig sought to thwart this levy by sending a letter to his employer instructing that his future commissions be paid to a fictitious corporation.
Petrig faces a maximum sentence of five years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shores commended special agents of IRS-Criminal Investigation, who investigated the case, and U.S. Department of Justice Tax Division Assistant Chief / Special Assistant U.S. Attorney Andrew J. Kameros and Assistant U.S. Attorneys Victor A.S. Régal and Charles M. McLoughlin, who are prosecuting the case.
Independent Contractor Pleads Guilty to Tax EvasionRead the Press Release
TULSA, Okla. – A Tulsa man, John D. Petrig, 49, pleaded guilty yesterday to one count of tax evasion in U.S. District Court, announced U.S. Attorney Trent Shores of the Northern District of Oklahoma and Principal Deputy Assistant Attorney General Richard E. Zuckerman.
Chief U.S. District Judge Gregory K. Frizzell accepted Petrig’s guilty plea Tuesday in federal court and released the defendant on bond pending sentencing on May 7, 2019.
U.S. Attorney Trent Shores stated, “The federal income tax system is based upon the compliance of the tax paying citizens of this nation. When an individual, such as Mr. Petrig, decides to shirk his responsibility to pay what he owes, then other law abiding citizens end up shouldering the burden. Mr. Petrig’s criminal acts cost taxpayers not only the loss of the unpaid taxes, but also the additional expense for investigating and prosecuting his criminal behavior.”
“The Department of Justice prosecutes tax evaders to hold them accountable for their criminal conduct and to ensure that the tax system is fairly enforced throughout the nation,” stated Principal Deputy Assistant Attorney General Zuckerman.
According to court documents, from 2000 to 2012, Petrig worked for a company as an independent contractor installing ATM machines inside casinos. The company paid him commissions based on the number of transactions executed at the ATMs. In 2012, Petrig late-filed his 2005 tax return, reporting an income of $394,317; however, he did not pay the $110,372 in taxes that he owed. Instead, from January 2012 to December 2012, Petrig attempted to evade payment of the $110,372. When the Internal Revenue Service (“IRS”) sent a levy to Petrig’s employer directing that Petrig’s commission payments be forwarded to the IRS to pay his tax debt, Petrig sought to thwart this levy by sending a letter to his employer instructing that his future commissions be paid to a fictitious corporation.
Petrig faces a maximum sentence of 5 years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shores commended special agents of IRS-Criminal Investigation, who investigated the case, and U.S. Department of Justice Tax Division Assistant Chief / Special Assistant U.S. Attorney Andrew J. Kameros and Assistant U.S. Attorneys Victor A.S. Régal and Charles M. McLoughlin, who are prosecuting the case.
Husband and Wife Sentenced in Scheme to Defraud the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bin “Ben” Wen, 46, and Peng “Jessica” Zhang, 45, both formerly of Horseheads, NY, who were convicted of conspiracy to commit wire fraud and conspiracy to defraud the United States respectively, were sentenced by U.S. District Judge Elizabeth A. Wolford. Wen was sentenced to serve 33 months in prison while Zhang was sentenced to five years of probation, to include six months of home detention. The defendants were also ordered to pay $5,500,000 in restitution.
Assistant U.S. Attorneys Tiffany H. Lee and Grace M. Carducci, who handled the case, stated that between June 2010, and December 2015, the defendants participated in a scheme to defraud departments and agencies of the United States of federal research funds that were awarded to companies controlled by the defendants. The government entities defrauded by the defendants included: the National Science Foundation (NSF); the United States Department of Energy (DOE); and the United States Department of Agriculture (USDA).
In December, 2003, Zhang incorporated United Environment & Energy, L.L.C. (UEE) in Horseheads, NY. Meanwhile, Wen incorporated Advanced Technologies and Materials, L.L.C. (ATM), in December, 2007, also in Horseheads. UEE submitted approximately 13 applications to NSF totaling over $2,600,000, 10 applications to the DOE totaling more than $5,000,000 and four applications to the USDA totaling approximately $650,000. The defendant received, through their companies, approximately $8,400,000 in awards from the NSF, the DOE, and the USDA.
Wen and Zhang submitted false and fraudulent information in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) applications by:• fabricating letters of support and investment; • providing false information in research grant proposals and reports regarding business entities, business employees, business/research facilities, matching funds and investments; and
• providing falsified reports and emails regarding how federal research funds were expended.A substantial amount of the fraudulently obtained money went toward the personal use and benefit of the defendants.
“By diverting monies that were intended to promote innovation and technology in small businesses, the defendants, through their frauds, not only swindled taxpayers but stifled economic and scientific development,” stated U.S. Attorney Kennedy. “One of the core responsibilities of my Office is to ensure that those receiving federal funds are entitled to those funds and that such funds are spent in accordance with the purpose for which they were given. Where, as here, they are not, prosecution will follow.”
Allison Lerner, NSF’s Inspector General said, “It is imperative that federal award recipients be truthful in their grant submissions and that they use grant money appropriately. Through their repeated falsification of key personnel, investments, budget figures, and other information in proposals and reports, defendants fraudulently obtained millions of taxpayer dollars intended to advance new technologies. I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort to protect the integrity of the SBIR/STTR programs.”
Teri L. Donaldson, Department of Energy Inspector General said: “These sentencings serve as a reminder that fraud in the SBIR Program will not be tolerated. The Office of Inspector General remains committed to ensuring the integrity of our programs by holding accountable those who attempt to hide behind sophisticated schemes aimed at diverting Federal research funds. We appreciate the efforts of the DOJ in pursuing this matter and will continue to work aggressively with our investigative partners to bring to justice those who seek to defraud government programs.”
IRS-Criminal Investigation NY Field Office Acting Special Agent-in-Charge Jonathan D. Larsen said, “Today’s sentencing emphasizes the fact that in addition to our tax mission, we are also an essential part of the larger law enforcement community. The detailed analysis of the extremely complex flow of money in this case demonstrated how the defendants laundered the fraudulent grant proceeds they received and led to the seizure of over $6 million in assets that will be forfeited.”
“The sentencing in this investigation of fraudulent grant practices demonstrates that those who seek to do business with the Federal government will be held responsible for maintaining the highest level of integrity,” said Douglas Shoemaker, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General (DOT-OIG). “The Department has made accountability a top priority and working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts in preventing, detecting and prosecuting grant fraud.”
Today’s sentencings are the result of a joint investigation by Special Agents with the National Science Foundation, Office of Inspector General, under the direction of Inspector General Allison Lerner; the Department of Energy, Office of Inspector General, under the direction of Inspector General Teri L. Donaldson; the Internal Revenue Service, Criminal Investigations, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; and the Department of Transportation, Office of Inspector General, under the direction of Special Agent-in-Charge Douglas Shoemaker.
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Heroin Dealer Sentenced for Role in Multi-State Trafficking ConspiracyRead the Press Release
RICHMOND, Va. – A New York man was sentenced today to 10 years in prison for his role as a source of supply in a two-year drug conspiracy that trafficked 5 kilograms of heroin from New York to Richmond.
“Combatting the opioid epidemic is a top priority for this office,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Individuals like Birthright, who pump poison into our communities for profit, will continue to receive the full attention of federal, state and local law enforcement as we seek to rid our streets of dangerous and highly-addictive opioids.”
According to court documents, from on or before December 2015 through May 2017, Antonio Birthwright, 37, of Bronx, participated in a multi-state heroin trafficking conspiracy by serving as a source of supply to several Central Virginia area drug dealers. Birthwright would travel on commercial bus lines from the Bronx to Richmond to distribute varying amounts of heroin. Once in Richmond, Birthwright would distribute the heroin, collect the drug proceeds, and travel back to New York.
“DEA will continue to work hand in hand with our state and local law enforcement counterparts and commends the U.S. Attorney’s Office for holding accountable those individuals and organizations who transport deadly opioids into Virginia and distribute them in our communities,” said Jesse R. Fong, Special Agent in Charge for DEA’s Washington Field Division. “This investigation is a prime example of the lengths that drug traffickers are willing to go in order to profit from the deadly opioid epidemic, as well as the extent that law enforcement will go in order to bring them to justice.”
In late April 2017, DEA agents executed a search warrant at a Richmond area residence operated by Birthwright’s co-conspirators and recovered 1.4 kilograms heroin, a hydraulic press, drug packaging materials, and $2500. The heroin recovered in the residence was distributed by Birthwright to his Richmond based co-conspirators. During the course of the conspiracy, Birthwright distributed a total of 5 kilograms of heroin.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert and Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-87.
Fourteen Individuals Charged for Operating “Pill Mills” and Illegally Prescribing Drugs to Hundreds of Patients in Multiple Locations in the Philadelphia AreaRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced two indictments charging 14 people with a multitude of crimes, including conspiracy to dispense and distribute controlled substances outside the course of professional practice and without a legitimate medical purpose; distribution of oxycodone; health care fraud; and maintaining a drug-involved premises. These charges are the result of coordinated law enforcement effort across multiple federal, state, and local agencies. U.S. Attorney McSwain announced these charges as part of a press conference held today to highlight the Eastern District of Pennsylvania’s recent efforts to combat the opioid crisis in the District.
Criminal Indictment No. 18-CR-101: Advanced Urgent Care (AUC). This superseding indictment charges 13 defendants with crimes in connection with their employment at AUC, a medical business with office locations at 5058 City Avenue in Philadelphia, PA; 9432 East Roosevelt Boulevard in Philadelphia, PA; 721 Bethlehem Pike in Montgomeryville, PA; and 126 Easton Road in Willow Grove, PA.
The 13 defendants charged in this indictment are Dr. Mehdi Nikparvar-Fard, 49, of Penn Valley, PA; Dr. Vincent Thompson, 70, of Elkins Park, PA; Dr. Loretta Brown, 65, of Landsowne, PA; Dr. Avrom Brown, 70, of Elkins Park, PA; Dr. Frederick Reichle, 83, of Warrington, PA; Dr. Marcus Rey Williams, 70, of Coatesville, PA; Dr. William Demedio, 58, of Springfield, PA; Dr. Neil Cutler, 77, of Warminster, PA; Physician’s Assistant Mitchell White, 33, of Philadelphia, PA; Physician’s Assistant Jason Dillinger, 40, of West Chester, PA; Physician’s Assistant Debra Cortez, 56, of Bristol, PA; Physician’s Assistant Samantha Hollis, 42, of Wilmington, DE, and Office Manager Joanne Rivera, 35, of Pennsauken, NJ. Each defendant is charged with maintaining a drug-involved premises, and five defendants (Nikparvar-Fard, Rivera, Dillinger, Thompson, and White) are charged with conspiring to unlawfully distribute controlled substances.
AUC was owned and operated by Dr. Mehdi Nikparvar-Fard. The indictment alleges that, in exchange for an $80 to $140 office fee, members of the public were offered “pain management” by AUC doctors and physician’s assistants. Pain management typically involved obtaining a prescription for opioid painkillers. The superseding indictment further alleges that AUC medical providers unlawfully prescribed controlled substances, such as opioid painkillers, on a daily basis from January of 2014 through August of 2017 and routinely ignored warning signs that patients were abusing and/or selling their prescription painkillers. The warning signs included urine drug screens that were positive for illicit drugs like heroin, cocaine, and methamphetamine, urine drug screens that were positive for Suboxone (a drug used to treat opiate addiction), and urine drug screen that were negative for all drugs, suggesting the patients may have been selling their prescription pills. In the face of these test results, AUC medical providers nonetheless prescribed enormous quantities of opioid painkillers. According to the indictment, at least 3,678 illegal prescriptions were issued by AUC’s doctors and physician’s assistants.
Criminal Indictment No. 18-CR-591: Drs. Murray Soss and Frederick Reichle. This indictment charges Dr. Murray Soss, 78, of Philadelphia, PA, and Dr. Frederick Reichle,[1] 83, of Warrington, PA, with conspiracy to distribute and dispense oxycodone, outside the usual course of practice and not for a legitimate medical purpose. Dr. Soss is also charged with seven counts of distributing oxycodone and seven counts of health care fraud.
As alleged in the indictment, Soss hired Reichle to write oxycodone prescriptions for Soss’s pain management patients after Soss’s Pennsylvania medical license was suspended in April 2017. Soss and Reichle charged the patients a fee to obtain oxycodone prescriptions, written by Reichle, that were not medically necessary. At times, Soss allegedly collected $2,500 in exchange for accepting a new patient for the sole purpose of that patient obtaining Schedule II narcotics. The indictment further states that Reichle provided oxycodone prescriptions to one of Soss’s patients without this patient being present, and claims Soss was engaged in a sexual relationship with this same patient. It further states that Soss obtained oxycodone prescriptions in Soss’s name and then distributed the prescriptions to this patient in exchange for sexual favors.
If convicted, these 14 defendants face a range of penalties, including substantial prison time and fines, depending on each defendant’s degree of involvement in the alleged crimes.
“Our country is in the midst of a deadly drug epidemic, and our District is, in many ways, ground zero in combatting this crisis,” said U.S. Attorney McSwain. “As alleged in these indictments, thousands of illegally prescribed pills flooded our streets because of the conduct of these defendants. My Office will continue to do its part to enforce our nation’s drug laws and hold physicians, physician’s assistants, and their agents accountable. As these indictments show, medical professionals who violate their oaths and exploit their patients’ addictions to make an easy buck will be prosecuted to the fullest extent of the law.”
“We're seeing it over and over again: medical professionals, deciding to cash in on our area’s opioid crisis,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “It seems ‘first, do no harm’ is a principle fast forgotten when money starts changing hands. These doctors are just doling out piles of pills to anyone willing to pay for them. It’s despicable, it’s criminal, and the FBI and our law enforcement partners will never stop working to put pill mills, and the people who run them, out of business.”
“The defendants arrested in this case are accused of setting up and operating a scheme in which the defendants sold opioid prescriptions to individuals without any legitimate medical need or purpose in exchange for cash. The defendants issued 3,678 prescriptions which amount to hundreds of thousands of pills being used by addicted individuals,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “When the DEA determines that a doctor is prescribing controlled substance medications without a legitimate medical purpose, the DEA will refer the investigation to the US Attorney’s Office for prosecution to the fullest extent of the law.”“Healthcare providers who ignore their Hippocratic oaths and put illegal prescription drugs on our streets are nothing more than drug dealers in white lab coats,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General for the Department of Health and Human Services (HHS-OIG). “Medical providers who disregard the law and put greed in front of helping patients can expect criminal repercussions.”
“An important mission of the Office of Inspector General is to investigate allegations of health care fraud related to the U.S. Department of Labor's (DOL) Office of Workers’ Compensation Programs (OWCP). We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s benefit programs,” stated Richard Deer, Special Agent in Charge, Philadelphia Region, U.S. Department of Labor, Office of Inspector General.
The AUC case was investigated by the following agencies: Drug Enforcement Administration; the Federal Bureau of Investigation; Health and Human Services, Office of Inspector General; the Department of Labor, Office of the Inspector General; and the Office of Personnel Management. These agencies were assisted in their investigation by the Pennsylvania Department of State; Pennsylvania Office of Attorney General; Abington Police Department; Easttown Township Police Department; and Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys Jason P. Bologna and Seth Schlessinger.
The Soss/Reichle case was investigated by Health and Human Services, Office of Inspector General and Federal Bureau of Investigation, with assistance from Pennsylvania Office of Attorney General and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Karen Marston.
[1] Dr. Reichle also is a named co-defendant in the AUC superseding indictment, though the charges alleged in the AUC case arise from conduct that is separate from that alleged in Soss/Reichle case.
Four Individuals Charged for Their Participation in Schemes to Attempt to Defraud Victims of Nearly $46 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the unsealing today of an Indictment charging four individuals, CHRISTOPHER HAMMATT, a/k/a “Craig Johnson,” SUSAN HAMMATT, JOSEPH HOATS, and EDWIN TANGLAO, with participation in multiple fraud schemes. HOATS was arrested today in California and will be presented later this afternoon before U.S. Magistrate Judge Shashi H. Kewalramani. The HAMMATTs are expected to surrender later today in Oregon and will be presented this afternoon in federal court there. TANGLAO was already in custody on state charges in Texas. The case is assigned to U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendants fraudulently enriched themselves at the expense of others, including small businesses in New York. Equally disturbing is the Hammatts’ alleged use of the federal courts to perpetrate their fraud. Now, as a consequence of their alleged conduct, the Hammatts will return to the Southern District of New York not as civil plaintiffs but as criminal defendants.”
The Indictment unsealed today in Manhattan federal court alleges two fraud schemes. As alleged in the Indictment[1]:
The first scheme arises from a civil lawsuit in the United States District Court for the Southern District of New York, in which CHRISTOPHER HAMMATT, a/k/a “Craig Johnson,” and SUSAN HAMMATT were plaintiffs. The HAMMATTs’ lawsuit against a multinational car company based in Detroit, Michigan (“Car Company-1”), alleged that CHRISTOPHER HAMMATT, a lawyer by training, sustained “traumatic brain injury” when the airbags suddenly deployed in his vehicle, which was manufactured by Car Company-1. While the HAMMATTs’ lawsuit was pending, the HAMMATTs created a fake $16.5 million settlement agreement, which included a forged signature of Car Company-1’s attorney, and used the fake settlement agreement to borrow approximately $75,000 from a litigation funding company.
To carry out their fraud scheme, and to conceal their identities when communicating with victims, the HAMMATTs created the fake identity, “Craig Johnson,” who purported to be a “legal coordinator” who represented the HAMMATTs. In that capacity, “Johnson” negotiated directly with legal funding companies to induce them to lend money to the HAMMATTs, using the fraudulent settlement agreement as collateral. In one email, “Johnson” wrote to a legal funding company, “I know that they [the HAMMATTs] will be getting a large sum of money in about six months, but it is so sad to see this family suffer. They are on food stamps and get donations from the Church for their kids clothing.”
When the HAMMATTs’ fraud came to light, SUSAN HAMMATT submitted a declaration to the Court that contained numerous false statements regarding her and her husband’s involvement in the fraud.
The Indictment also alleges that each of the defendants participated in a scheme to defraud oil and gas trading companies. Specifically, the defendants induced victims to transmit money to the defendants in exchange for large orders of oil and gas products that the defendants could not fulfill. To conceal the nature of the fraud, the defendants created fake companies and fraudulent documents. For example, the Indictment alleges that JOSEPH HOATS, an attorney, and SUSAN HAMMATT created the company “Shell Western Supply & Trading,” and used the Shell Oil Company logo without permission, as a means to trick victims. The defendants succeeded in defrauding a New York-based victim of nearly $1.5 million as part of their oil and gas scheme.
* * *
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents with the United States Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Nicholas W. Chiuchiolo is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Wire fraud conspiracy
18 U.S.C. § 1349
CHRISTOPHER HAMMATT, a/k/a “Craig Johnson” (age 49)
SUSAN HAMMATT (age 44)
20 years in prison
2
Wire fraud
18 U.S.C. § 1343
CHRISTOPHER HAMMATT, a/k/a “Craig Johnson”
SUSAN HAMMATT
20 years in prison
3
Perjury
18 U.S.C. § 1621
SUSAN HAMMATT
5 years in prison
4
Wire fraud conspiracy
18 U.S.C. § 1349
CHRISTOPHER HAMMATT, a/k/a “Craig Johnson”
SUSAN HAMMATT
JOSEPH HOATS (age 69)
EDWIN TANGLAO (age 54)
20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Waterbury Resident Sentenced to Prison for Violating Sex Offender Registration LawsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ISMAEL SANCHEZ COLON, 44, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 10 months of imprisonment, three months of home confinement and five years of supervised release, for violating the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, in December 2001, Sanchez Colon was convicted in the State of Wisconsin of the felony offense of causing a child between the ages of 13 and 18 to view sexual activity, and he was subsequently ordered to comply with sex offender registration requirements for a period of 15 years after completion of a five-year term of probation.
In March 2009, Sanchez Colon advised the State of Wisconsin that he had moved to Puerto Rico.
Sanchez Colon began residing in Connecticut in approximately April 2016, based on evidence that he obtained food stamps and Husky healthcare benefits at that time, and did not register as a sex offender in this state, as required by law. He subsequently began working at a restaurant in Waterbury, and he obtained a Connecticut driver’s license. Between April 2016 and March 2018, Sanchez Colon was registered in Puerto Rico, and he traveled to Puerto Rico to update his registration. At no time did Sanchez Colon advise Wisconsin and Puerto Rico of his Connecticut residence.
Sanchez Colon’s non-compliance with sex offender registration requirements in Connecticut was discovered when he used his Waterbury address in the process of renewing his U.S. passport.
Sanchez Colon has been detained since his arrest on April 12, 2018. On September 5, 2018, he pleaded guilty to the SORNA violation.
Sanchez Colon has two previous convictions for SORNA violations, and he has a SORNA charge pending in Colorado.
Sanchez Colon will reside in Puerto Rico when he is released from prison.
This matter was investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Former Office Manager Sentenced for Embezzlement SchemeRead the Press Release
TULSA, Okla. –A former Tulsa resident has been sentenced today in U.S. District Court for committing wire fraud and for signing a false tax return.
U.S. District Judge Claire V. Eagan ordered Kristiana P. Collins, 44, to federal prison for 21 months to be followed by 3 years of supervised release.
“White collar crime undermines the rule of law and harms business. My office ensures there is an accounting for those who embezzle from businesses in northeastern Oklahoma,” said U.S. Attorney Trent Shores. “Ms. Collins abused the responsibility entrusted to her, and now she will pay the price for stealing more than $640,000. Moreover, she also cheated on her tax returns. Cheaters get caught, and she will suffer the consequences of her greed. I commend the Creek County Sheriff’s Office, the IRS Criminal Investigations Division, the FBI and AUSA Kevin Leitch for their excellent work on this case.”
At her plea hearing last September, Collins admitted to embezzling funds from her former employer between 2008 and 2014, when she responsible for paying the credit card accounts and handling bookkeeping operations at a company in west Tulsa. She also admitted to failing to report the illegal income on her federal tax returns.
While working in her position, Collins secretly obtained two Visa cards for herself under the company’s account, which was supposed to be used by various approved employees for company purposes. As part of her scheme, Collins made purchases for her own personal gain on both credit cards and later used company funds to pay the billed charges.
In papers filed with the court, the government explained that Ms. Collins had squandered her employer’s funds by making hundreds of purchases in the course of taking trips to Las Vegas, Taos, Cancun and other locations in and around Oklahoma. In 2013 alone, Collins charged $161,961.67 on the company credit card account. The court ordered Collins to repay the victim $640,314.17 and to pay the Internal Revenue Service $99,160 for taxes that she owed on the stolen funds.
Investigative agencies involved in this case include the Creek County Sheriff’s Office, the Federal Bureau of Investigation, and the Department of Treasury, Internal Revenue Service—Criminal Investigation Division. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Former Clinton Township Trustee Dean Reynolds Sentenced to 17 Years in Prison for Multiple Bribery SchemesRead the Press Release
Former Clinton Township Trustee Dean Reynolds, 51, of Clinton Township, Michigan, was sentenced today to seventeen years in prison and ordered to pay $15,000 in fines based on his convictions at trial on four counts of bribery conspiracy and ten counts of accepting bribes, in connection with millions of dollars in township garbage, towing, and engineering contracts, United States Attorney Matthew Schneider announced today.
During the trial of this matter, the evidence showed that Reynolds demanded and took over $150,000 in bribes in four separate bribery conspiracies involving four different government contracts. The bribes included over $75,000 in cash, $50,000 in free legal services for Reynolds’ divorce, and an all-expenses paid trip to Disney World, including an eight-night stay in a deluxe-level room costing over $600 per night. The jury found that Reynolds demanded bribes in connection with the Clinton Township garbage-hauling contract worth over $16 million, the township engineering contract worth over $500,000 per year, and the township towing contract. In addition, the jury convicted Reynolds of conspiring to pay bribes to former New Haven, Michigan Trustee Brett Harris and to corrupt the garbage contract for New Haven. Reynolds was convicted of taking multiple bribes from convicted garbage executive Chuck Rizzo, from Paulin Modi, a former managing partner of Giffels Webster Engineering, who was also convicted of bribery, and from Gasper Fiore, the owner of multiple towing companies in southeast Michigan, who was also previously convicted of bribery conspiracy.
Schneider was joined in the announcement by Timothy Slater, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
United States Attorney Schneider said, “The Court’s sentence today shows that public officials who violate the trust of their communities by taking bribes and betraying their oaths of office will not escape our pursuit of justice.”
“Today’s sentence serves as a reminder that there are consequences for robbing our communities of the honest government they deserve,” said SAC Slater. “The FBI and the Detroit Area Public Corruption Task Force will continue to pursue those who - like Mr. Reynolds - abuse their position for personal financial gain.”
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, R. Michael Bullotta, and Adriana Dydell.
Florida Woman Sentenced to Prison for $1.3 Million Mail Fraud Scheme Involving False Claims of Veterans Affairs SettlementRead the Press Release
LAS VEGAS, Nev. – A Florida resident was sentenced Tuesday to 27 months in federal prison and three years’ supervised release for committing a $1.3 million mail fraud scheme, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Maria Jesus Luciano, 67, of Tampa, Florida, previously of Las Vegas, pleaded guilty without the benefit of a plea agreement to 11 counts of mail fraud. In addition to the prison term, U.S. District Judge Andrew P. Gordon ordered her to pay $1,292,748 in restitution.
According to court documents, Luciano resided in Las Vegas in 2010 and 2011. During that time period, Luciano befriended 48-year-old James McMillan. After relocating to Tampa in 2011, Luciano fraudulently represented to McMillan that she had a pending settlement award from the U.S. Department of Veterans Affairs and that she would share the settlement award with McMillan if he provided her money to pay fees, interest, and other costs related to obtaining the settlement award. In fact, although she served briefly in the U.S. Army and received some benefits from the U.S. Department of Veterans Affairs for a non-military service related disability, Luciano was not entitled to any large monetary award or settlement.
In July 2013, Luciano mailed McMillan a fake promissory note granting him an interest in the purported settlement award. McMillan in turn used his position as a controller at a large real estate investment business to embezzle and steal approximately $1.3 million from the business and its investors. He mailed Luciano numerous envelopes and packages containing the stolen money, which Luciano used for gambling and personal expenses.
On May 2, 2017, McMillan pleaded guilty to wire fraud in a separate case and is pending sentencing before U.S. District Judge Gordon.
The case was investigated by the FBI with assistance from the Offices of Inspectors General for the U.S. Department of Housing and Urban Development and the U.S. Department of Veterans Affairs. Assistant U.S. Attorney Patrick Burns prosecuted the case.
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Felon Pleads Guilty to Multiple Fraud ChargesRead the Press Release
BOSTON – A Springfield man pleaded guilty in federal court in Springfield yesterday in connection with various fraud schemes.
Talal H. Soffan, 46, pleaded guilty to making false statements to a federally insured financial institution, wire fraud, aggravated identity theft, conspiracy, and bank fraud. U.S. District Court Judge Mark G. Mastroianni scheduled Soffan’s sentencing for May 23, 2019.
In 2014, Soffan was charged by indictment, and in 2018, he was charged by information with additional criminal counts.
In March 2007, Soffan applied for two bank loans totaling $45,000 for his company, All Waste Management LLP. In the process of securing the loans, Soffan concealed his and an associate’s prior felony convictions. After receiving the loans, Soffan then misspent the loan proceeds, defaulted on the loans, and exploited both accounts in connection with a series of credit card bust-out schemes. In those schemes, Soffan defrauded various banks and credit card companies through 27 different accounts obtained in his name, the name of his business, other businesses, and other individuals, resulting in an overall loss of approximately $528,624.
In addition, Soffan conspired with a local real estate broker to defraud various banks relating to foreclosed properties owned by the banks. Soffan sent the broker e-mails containing his company’s genuine bid and false bids from other companies to ensure that his company received contracts to perform repair and maintenance work on the foreclosed properties. In exchange for receiving approximately $75,186 in contracts for his company, Soffan allowed the broker to keep approximately five percent of his company’s invoiced amounts.
The charges of making false statements to a federally insured financial institution and bank fraud each provide for a sentence of no greater than 30 years in prison, up to five years of supervised release, and a fine of $1 million. The wire fraud charges each provide for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of $250,000. The conspiracy charge provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. The aggravated identity theft charges provide for a mandatory two year prison sentence consecutive to any other sentence imposed. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office are prosecuting the case.
Federal Law Enforcement Efforts to Combat the Opioid CrisisRead the Press Release
PHILADELPHIA, PA – On February 6, 2019, United States Attorney William M. McSwain convened a press conference to highlight the Eastern District of Pennsylvania’s recent efforts to combat the opioid crisis. U.S. Attorney McSwain announced two separate criminal indictments charging 14 individuals with a multitude of crimes, including conspiracy to dispense and distribute controlled substances outside the course of professional practice and without a legitimate medical purpose; distribution of oxycodone; health care fraud; and maintaining a drug-involved premises. U.S. Attorney McSwain also announced details about a civil lawsuit his Office has filed to prevent the establishment of a facility in Philadelphia where drug users would go to inject themselves with illegal narcotics. The suit, filed against the nonprofit corporation Safehouse and its Executive Director, Jeanette Bowles, seeks a judicial decree that Safehouse’s planned opening of one or more so-called “consumption rooms” would violate federal law. This lawsuit is the first of its kind in the United States.
Remarks as Prepared for Delivery
Good morning. I’m Bill McSwain, the U.S. Attorney, and I am here today to update the public on our ongoing efforts to combat the opioid epidemic in the Eastern District of Pennsylvania, and to make some specific announcements about several important cases in our District.
First, I want to recognize and thank the representatives from multiple federal, state, and local law enforcement partners that are here today as part of our announcement of two recent criminal indictments. Thank you to the Federal Bureau of Investigation; the Drug Enforcement Administration; the Department of Health and Human Services, Office of Inspector General; the Department of Labor, Office of Inspector General; the Office of Personnel Management; Pennsylvania Department of State; the Pennsylvania Office of the Attorney General; the Abington Police Department; the Easttown Township Police Department, and the Philadelphia Police Department.
I also want to thank Greg David, the Chief of our Civil Division at the U.S. Attorney’s Office, who is here with me to announce developments on the civil enforcement front.
Our collaborative approach to attacking the opioid epidemic includes aggressive criminal prosecutions and other initiatives to promote awareness, prevention, and addiction recovery. On both the criminal and civil side, we continue to focus on stopping the illicit production, distribution, and use of opioids. It is our duty to hold accountable those who have flooded our streets with heroin, synthetic opioids, and prescription opioids, and we will continue to indict and aggressively prosecute, including through civil penalty, everyone in that supply chain: manufacturers, importers, distributors, doctors, pharmacies, organized crime, and street dealers. Those who make money by illegally exploiting addiction will be caught and prosecuted to the fullest extent of the law.
Prosecuting doctors who run “pill mills” and commit Medicare fraud is a priority for the Department of Justice and this Office, and two recent cases in the Eastern District are excellent examples of our work in this area. In one case, we charged physicians Murray Soss and Frederick Reichle with operating a pill mill medical practice out of Dr. Soss’s medical office in Philadelphia, and charged Dr. Soss with healthcare fraud for billing medically unnecessary charges to Medicare. The indictment describes an elaborate scheme in which Dr. Soss paid others to recruit so-called “patients” seeking oxycodone and then paid Dr. Reichle to write prescriptions for those patients in Dr. Soss’s office, even though they had no medical need for the prescriptions. According to the indictment, Dr. Soss recruited Dr. Reichle after his own medical license was suspended by the Drug Enforcement Administration (DEA). And in one particularly heinous example, Dr. Soss even directed Dr. Reichle to write oxycodone prescriptions for a long-time patient with whom Dr. Soss had a sexual relationship, knowingly feeding this victim’s addiction in order to obtain sexual favors.
In a second recent case, we have charged eight physicians, four physicians’ assistants, and an office manager in connection with the operation of a pill mill at Advanced Urgent Care (or AUC). AUC is a provider of medical services, including pain management, with four locations throughout the Eastern District of Pennsylvania. The superseding indictment charges Dr. Frederick Reichle (again) along with Dr. Mehdi Nikparvar-Fard, Dr. Vincent Thompson, Dr. Loretta Brown, Dr. Avrom Brown, Dr. Marcus Rey Williams, Dr. William Demedio, and Dr. Neil Cutler; Physician’s Assistants Mitchell White, Jason Dillinger, Debra Cortez, and Samantha Hollis; and Office Manager Joanne Rivera, with multiple drug crimes.
Through a long-term, coordinated, multi-agency investigation, it became clear that AUC was functioning as a “pill mill” in its treatment of pain management patients. Our law enforcement partners worked with our Office to uncover a whopping number of illegal prescriptions – at least 3,678 alleged illegal prescriptions that were medically unnecessary. We uncovered a pattern of abuse where these doctors and physician’s assistants provided patient after patient with oxycodone – often despite clear evidence of overt illicit drug use and despite no diagnostic reason supporting the prescriptions.
As we work to stem the tide of illegal, medically unnecessary prescriptions, we remain committed to taking out violent drug-traffickers who operate on the streets and suppliers who cause overdose deaths. Recently, working again with the DEA, we secured a guilty verdict against Angel Luis Concepcion-Rosario, of Reading, Pennsylvania, for trafficking in fentanyl. Fentanyl, of course, is the deadliest and most unpredictable opioid we see on the streets, and fentanyl is a major source of the spike in overdose deaths in Philadelphia.
A federal jury also recently convicted Emma Semler of Collegeville, Pennsylvania, for distributing heroin and thereby killing her friend. The jury at the Semler trial heard about how the defendant supplied the victim with heroin, watched as she injected it, and then fled the scene when she realized the victim was overdosing on the bathroom floor of a fast-food restaurant in West Philadelphia, leaving her to die. Both defendants - Concepcion-Rosario and Semler - await sentencing, and we will do everything in our power to ensure they receive the punishment that they both deserve.
I’m grateful for the hard work of our agency partners and of those in my Office who prosecuted these cases, especially Assistant United States Attorneys Karen Marston, Jason Bologna, Seth Schlessinger, Kishan Nair, Randy Hsia, and Nicole Phillips. By enforcing our drug laws in these cases and others, we prevent addiction and violence from spreading.
Beyond our criminal prosecutions and civil enforcement work, our Office participates in many types of outreach programs that focus on prevention and addiction recovery. One such program of particular note is Relapse Prevention Court, a program just launched in October 2018 in coordination with the U.S. District Court, the Federal Defenders’ Office, and U.S. Pretrial Services. Relapse Prevention Court helps non-violent drug users who have entered the criminal justice system to maximize opportunities for long-term recovery from substance abuse while they complete their terms of supervised release. The key attribute of this program is that it provides participants with a path forward to long-term addiction recovery while abiding by federal, state, and local laws.
The work that we do in all these areas helps to keep drugs out of our communities and sends a powerful deterrent message. And this work helps to save lives.
Today also marks a new chapter in the federal government’s fight against the opioid epidemic. Philadelphia is, in many ways, ground zero in this crisis. That is why my Office, and our dedicated federal, state, and local law enforcement partners, stand together today to reassure the community that we are aggressively fighting this epidemic by deploying all of the tools and resources at our disposal.
I am here to announce that the United States Attorney’s Office for the Eastern District of Pennsylvania has filed a federal civil lawsuit – the first of its kind in the United States – to ask the U.S. District Court to declare that so-called “supervised injection sites” violate federal law. Because these deadly drug injection sites undoubtedly do violate the law. And because it is the Department’s job to promote and enforce the rule of law, not to look the other way. Normalizing the use of deadly drugs like heroin and fentanyl is not the answer to solving the opioid epidemic.
The civil lawsuit that we have filed names Safehouse, a private, non-profit corporation formed for the specific purpose of opening a deadly drug injection site in the Kensington neighborhood of Philadelphia. Safehouse was incorporated in August 2018, after the Philadelphia Mayor’s Office publicly endorsed the idea of opening an injection site and Philadelphia District Attorney Larry Krasner pledged not to bring charges against those who fund, operate, or use such sites.
Emboldened by the Mayor’s support and the District Attorney’s blessing, Safehouse ramped up its operations in the months that followed. Its website described how the site would be operated: as drug users arrived at Safehouse, staff would direct them to a “consumption room,” provide them with drug paraphernalia, and observe the users as they prepare and inject themselves with illegal narcotics. Safehouse’s staff would monitor the users for signs of overdose and, if necessary, step in and try to provide overdose reversal services.
Let’s step back for a moment, consider the big picture, and discuss what we really know about injections sites. Safehouse claims that an injection site in Philadelphia would “save lives.” But are we sure about that? Consider the study the City of Philadelphia commissioned to evaluate this very issue. The way the study qualified its recommendations is telling:
The vast majority of the available evidence in recent years comes from only one Supervised Consumption Facility, the [facility] in Vancouver, Canada. The current models for harm-reduction estimates are sensitive to population-specific factors. In turn, hyper-local population-level characteristics . . . and social and economic factors determine the need and potential utilization by [drug users] of Supervised Consumption Facilities. The majority of the available literature with useful statistical methodology and analysis relies more commonly on the Vancouver Supervised Consumption Facility than on any other site. It is uncertain how relevant or applicable the assumptions are to communities in other geographies.
The study, by Main Line Health Center at Lankenau Institute for Medical Research, went on to caution that “[b]ecause it appears that existing Supervised Consumption Sites have not incorporated rigorous evaluation into their design and implementation, it has been difficult to disentangle the full impact of Supervised Consumption Sites on relevant harm-reduction outcomes.”
Translation: the study has no idea whether an injection site in Philadelphia would actually save lives. So when Safehouse declares that an injection site would save lives, all they’re doing is speculating and trying to pass it off as fact. They have no proof and no reliable data. There is no expert consensus that this plan would do any good for anybody.
But here is what we do know: setting up a drug house is illegal. And on the legal issues in this case, our position has remained firm and our communications to Safehouse clear. Safehouse’s operation would violate federal law, namely, section 856(a)(2) of the Controlled Substances Act. That section makes it unlawful to “manage or control any place” that is “knowingly and intentionally . . . ma[d]e available for use . . . for the purpose of unlawfully . . . using a controlled substance.” On November 9, 2018, I sent a letter to Safehouse, advising that if it went forward with its plans as described, my Office would pursue appropriate remedies unless Safehouse provided me with assurances that it would comply with the law. In response, Safehouse provided no such assurances, and its actions (most recently, its hiring of an Executive Director last month) point to the opposite conclusion.
The law is clear – and my job is to respect and enforce the rule of law. If Safehouse wants to operate an injection site, it should work through the democratic process to try to change the law. It should not expect prosecutors to turn a blind eye to wholesale illegal behavior and play politics by allowing political ideologies to determine their prosecutorial decisions. That would be an abandonment of my oath to enforce the law. While that may be a way of life for the Philadelphia District Attorney, it is something that I will never do.
And how much political support do injection sites really have among our law making bodies, anyway? The answer is none. Congress does not support the idea, the Pennsylvania legislature does not support it, nor does the Philadelphia City Council. Councilwoman Maria Quinones Sanchez, whose district includes Kensington, does not support injection sites. Governor Wolf does not support them, nor does Pennsylvania Attorney General Shapiro.
What is Safehouse’s response to this lack of support and to the fact that it is illegal under federal law to set up a drug house? Their response is defiance. Their response is that they are beholden to a supposedly higher power than our laws; they are beholden to saving lives. While I do not doubt Safehouse’s good intentions, substituting its judgment in place of the law is not the way that democracy works. It is not the way that a republic works. If Safehouse doesn’t like the law, it should channel its efforts into changing it. The bottom line is that when it comes to our justice system, there is no higher purpose than respecting the rule of law when our laws are consistent with our Constitution and enacted by our democratically elected representatives. If you think that you’re above the law, you’ll soon find yourself in court to account for your actions. That is exactly the situation here.
In closing, the lawsuit that we have filed is a necessary and important step in the Justice Department’s enforcement of our federal drug laws. But it is just one part of my Office’s comprehensive approach to addressing the opioid crisis. Again, I want to thank all of the law enforcement partners here today; we are proud to stand with you as we fight this crisis together.
Thank you, and at this time, I am happy to take your questions relating to these announcements.
Federal Charges Announced for Disaster Fraud Related to Hurricane MatthewRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces an Indictment charging SHEILA RUFFIN, 50, of Rocky Mount, with 15 counts of Disaster Fraud related to the Hurricane Matthew recovery effort conducted by the Federal Emergency Management Agency (FEMA).
According to the allegations in the Indictment, RUFFIN, knowingly made materially false, fictitious, and fraudulent statements and representations, and knowingly made and used false writings and documents knowing the same to contain materially false, fictitious, and fraudulent statements and representations, to FEMA, in an application for benefits authorized, transported, transmitted, transferred, disbursed, and paid with FEMA funds in connection with the Presidential Major Disaster Declaration for the State of North Carolina, effective October 10, 2016.
RUFFIN is alleged to have made false statements and submitted fraudulent documentation in connection with applications for FEMA assistance following Hurricane Matthew. From January 31, 2017 to January 29, 2018, RUFFIN was awarded more than $11,000.00 in rental assistance to which she was not entitled.
If convicted of the Disaster Fraud charges, RUFFIN would face a maximum penalty of 30 years imprisonment, a $250,000 fine, a term of supervised release of not more than 3 years, and restitution.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case was conducted by the U.S. Department of Homeland Security Office of Inspector General. Assistant United States Attorney Toby Lathan is prosecuting the case for the government.
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Fayetteville Man Sentenced to 15 Years in Federal rison for Receiving and Possession of Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Joshua Box, age 35, of Fayetteville, Arkansas was sentenced yesterday to 180 months in federal prison followed by thirty years of supervised release, and ordered to pay a total of $13,000.00 in restitution for one count each of Receiving Child Pornography and Possession of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in May of 2018, Arkansas Community Correction (ACC) was conducting a home visit/compliance check on Box’s residence, as he is a supervised registered sex offender. Box admitted to ACC officers that he had downloaded child pornography from the Dark Web and saved it to his hard drive. Box’s electronic devices were seized by Homeland Security Investigators, and a forensic review yielded images and videos of child pornography.
Box was indicted in May 2018 on federal charges and plead guilty in August 2018.
This case was investigated by the Internet Crimes Against Children (ICAC) Task Force and the National Center for Missing and Exploited Children (NCMEC). Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Families United Services and Pamela McKenzie to pay $645,000.00 and agree to exclusion in order to resolve False Claims Act allegationsRead the Press Release
ATLANTA – Families United Services, Inc. (FUS) and Pamela McKenzie, the owner of FUS, have agreed to pay $645,000, and to be excluded from federal health care programs for a period of five years to resolve allegations that they submitted claims to the Georgia Medicaid Program for behavioral health services that they never provided. The effect of the exclusion is that federal health care programs will not make any payments to FUS or McKenzie, or anyone who employs them, for any services that they have provided.
“Georgia Medicaid provides valuable mental health services and treatment for many of Georgia’s most vulnerable citizens,” said U.S. Attorney Byung J. “BJay” Pak. “False billing of the Georgia Medicaid Program diverts monies for citizens who depend on Medicaid for vital medical care. Our pursuit of individuals who defraud federal health care programs will not cease.”
“Working with our law enforcement partners, we are dedicated to protecting patients and the federal health care programs intended to serve them,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Using our exclusion authority is a great remedy for banning bad providers from the program and protecting the American taxpayer.”
“We appreciate the Department of Community Health’s Program Integrity Section for being diligent in bringing this issue to our attention to investigate,” said Attorney General Chris Carr. “We will continue to work with our federal partners and root out those organizations and individuals that cross legal boundaries and do so at the expense of taxpayers.”
The government alleges that FUS and McKenzie violated the False Claims Act, 31 U.S.C. § 3729, et seq., by causing the submission of false claims to the Georgia Medicaid Program between October 1, 2010 and June 10, 2012 for behavioral health care services that were never provided.
FUS is a Georgia corporation that was enrolled with the Georgia Department of Community Health to provide behavioral health services. Between October 1, 2010 through June 10, 2012, FUS provided services to Medicaid members under two programs operated by the Georgia Department of Behavioral Health and Developmental Disabilities—Assertive Community Treatment (ACT) and Core. ACT is a recovery focused, high intensity, community based service for adults with severe and persistent mental illness. Core services are a comprehensive range of outpatient and out of center mental health services provided to persons of all ages. The Georgia Medicaid Fraud Control Unit initiated its investigation after receiving a referral from the Program Integrity Section of the Georgia Department of Community Health.
This settlement highlights a powerful tool to protect federal health care programs and beneficiaries and to hold accountable those who commit health care fraud—the exclusion authority of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Section 1128 of the Social Security Act gives HHS-OIG the authority to exclude individuals and entities from participation in federal health care programs for fraud or other misconduct.
The claims resolved are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, and the U.S. Department of Health & Human Services Office of Inspector General.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti and Assistant Attorney General Sara Vann.
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.
Employee of Mississippi Band of Choctaw Indians Pleads Guilty to EmbezzlementRead the Press Release
Jackson, Miss. – Savannah Galvan, 30, of Philadelphia, a member of the Mississippi Band of Choctaw Indians, entered a guilty plea today before U.S. District Judge Henry T. Wingate to embezzlement for her role in the unauthorized use of a tribal-issued fuel credit card to purchase fuel for her personal use, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
The embezzlement took place at gas stations located in Mississippi, Alabama, and Louisiana, while Galvan was employed with the Mississippi Band of Choctaw Indians as Recreation Coordinator for the Crystal Ridge Facility Building.
Sentencing has been set for May 7, 2019 at 1:30 p.m. Galvan faces a possible statutory sentence of five years in prison and a fine of $250,000.
The case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It is being prosecuted by Special Assistant United States Attorney Kevin Payne.
Embezzlement from Doctor's Office Sends Former Office Manager to Federal Prison for Nearly Three YearsRead the Press Release
Cassandra D. Eberhart, age 49, of Moro, Illinois, has been sentenced to serve 33 months in federal prison for her convictions of wire fraud and filing a false federal income tax return, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Eberhart previously pleaded guilty to the charges in October 2018.
Eberhart’s convictions stem from her employment as the office manager at A to Z Pediatrics in Caseyville, Illinois. From 2011 through 2017, she embezzled over $350,000 from the business by making unauthorized personal charges on medical practice credit cards, overpaying herself salary, reimbursing herself for overtime and mileage that was not authorized, fraudulently adding herself and family members to medical insurance, falsifying business journal entries and diverting electronic payments from the medical practice’s bank account to a personal credit card account. Eberhart also failed to report the money she embezzled on her federal income tax returns.
As part of her sentence, Eberhart was ordered to pay full restitution in the amount of $368,308.99 and to serve three years of supervised release, during which time she will not be permitted to engage in any occupation that involves fiduciary responsibility without obtaining prior approval from the court.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Electronic Health Records Vendor to Pay $57.25 Million to Settle False Claims Act AllegationsRead the Press Release
Greenway Health LLC (Greenway), a Tampa, Florida-based developer of electronic health records (EHR) software, will pay $57.25 million to resolve allegations in a complaint filed by the United States under the False Claims Act alleging that Greenway caused its users to submit false claims to the government by misrepresenting the capabilities of its EHR product “Prime Suite” and providing unlawful remuneration to users to induce them to recommend Prime Suite, the Justice Department announced today.
“Electronic health records are critically important to the health care decision process, and both patients and providers rely on these technologies to safely and accurately record and transmit vital health information,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This resolution demonstrates our continued commitment to pursue EHR vendors who misrepresent the capabilities of their products, and our determination to promote public health while holding accountable those who seek to abuse the government’s trust.”
The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments available to eligible healthcare providers that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obt ain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.
In its complaint, the government contends that Greenway falsely obtained 2014 Edition certification for its product Prime Suite when it concealed from its certifying entity that Prime Suite did not fully comply with the requirements for certification. Among other things, Greenway’s product did not incorporate the standardized clinical terminology necessary to ensure the reciprocal flow of information concerning patients and the accuracy of electronic prescriptions. Greenway accomplished its deception by modifying its test-run software to deceive the company hired to certify Prime Suite into believing that it could use the requisite clinical vocabulary.
Additionally, in order to be eligible to receive incentive payments, healthcare providers were required to meet certain targets for EHR-related activities. For example, at certain times providers were required to provide patients with clinical summaries following office visits. In its complaint, the government further alleges that Greenway was aware that an earlier version of Prime Suite, which was certified to 2011 Edition criteria, did not correctly calculate the percentage of office visits for which its users distributed clinical summaries and thereby caused certain Prime Suite users to falsely attest that they were eligible for EHR incentive payments. Greenway refrained from rectifying this error in order to ensure that its users would receive incentive payments. As a result, numerous users of this earlier version of Prime Suite falsely attested that they were eligible for EHR incentive payments when, in fact, they had not met all necessary use requirements
Finally, the government also alleged that Greenway violated the Anti-Kickback Statute by paying money and incentives to its client providers to recommend Prime Suite to prospective new customers.
“In the last two years my office has resolved two matters against leading EHR developers where we alleged significant fraudulent conduct. These are the two largest recoveries in the history of this District and represent the return of over two-hundred and twelve million dollars of fraudulently-obtained taxpayer monies. These cases are important, not only to prevent theft of taxpayer dollars, but to ensure that the promise of health technology is realized in the form of improved patient safety and efficient healthcare information flow,” said United States Attorney Christina E. Nolan for the District of Vermont. “This resolution demonstrates my office’s initiative and resolve to vigorously uncover and to doggedly pursue these complex cases. We will be unflagging in our efforts to preserve the accuracy and reliability of Americans’ health records and guard the public fisc against corporate greed. EHR companies should consider themselves on notice.”
“Medical professionals and patients depend on the security and competency of electronic health records as a means to improving both the quality and coordination of health care services," said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. "Vendors who falsify the viability of their products erode the integrity of public health systems and will be held accountable for their misrepresentations.”
“The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly circumvent our federal healthcare programs for their own benefit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate companies stealing from federal taxpayers and the people who trust in the fairness of our federally funded healthcare programs.”
As part of the settlement, Greenway entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. This innovative five-year CIA requires, among other things, that Greenway retain an Independent Review Organization to assess Greenway’s software quality control and compliance systems and to review Greenway’s arrangements with health care providers to ensure compliance with the Anti-Kickback Statute. Greenway must provide prompt notice to its customers of any patient safety related issues and maintain on its customer portal a comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks. The CIA also requires Greenway to allow Prime Suite customers to obtain the latest versions of Prime Suite at no additional charge, the opportunity to migrate their data from Prime Suite to another Greenway-developed software product also at no additional charge, and to give Prime Suite customers the option to have Greenway transfer their data to another EHR software vendor without penalties, service charges, or any other fees other than contractual amounts still owed in connection with goods or services already provided.
“Electronic Health Records can be key to an integrated health system providing improved care” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Putting patients at risk will result in intensive investigation and compliance obligations such as those in OIG’s comprehensive five-year Corporate Integrity Agreement.”
This matter was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the District of Vermont and Northern District of Georgia, the HHS Office of Inspector General, and multiple HHS agencies and components. The Federal Bureau of Investigation’s field office in Atlanta, Georgia provided significant investigative support to the investigation.
The case is captioned United States v. Greenway Health, LCC, 2:19-CV-20 (D. Vt.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Electronic Health Records Developer to Pay Second Largest Recovery in the History of the District of Vermont -- $57.25 Million -- To Settle False Claims Act AllegationsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Greenway Health, LLC (Greenway), a Tampa, Florida-based developer of electronic health records (EHR) software, will pay $57.25 million to resolve False Claims Act allegations that Greenway caused its users to submit false claims to the government by misrepresenting the capabilities of its EHR product “Prime Suite” and providing unlawful remuneration to users to induce them to recommend Prime Suite.
“In the last two years my office has resolved two matters against leading EHR developers where we alleged significant fraudulent conduct. These are the two largest recoveries in the history of this District and represent the return of over two-hundred and twelve million dollars of fraudulently obtained taxpayer monies. These cases are important, not only to prevent theft of taxpayer dollars, but to ensure that the promise of health technology is realized in the form of improved patient safety and efficient healthcare information flow,” said Christina E. Nolan, United States Attorney for the District of Vermont. “This resolution demonstrates my office’s initiative and resolve to vigorously uncover and to doggedly pursue these complex cases. We will be unflagging in our efforts to preserve the accuracy and reliability of Americans’ health records and guard the public fisc against corporate greed. EHR companies should consider themselves on notice.”
“Electronic health records are the central hub from which many health care decisions flow,” said Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division, “and both patients and providers rely on these technologies to safely and accurately record and transmit vital health information.” “This resolution demonstrates our continued commitment to uncovering misconduct in the EHR space, and our determination to promote public health while holding accountable those who seek to abuse the government’s trust.”
The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments available to eligible healthcare providers that adopt certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.
In its complaint, the government contends that Greenway falsely obtained certification for its product Prime Suite when it concealed from its certifying entity that Prime Suite did not fully comply with the requirements for certification. Among other things, Greenway’s product did not fully incorporate the standardized clinical terminology necessary to ensure the reciprocal flow of information concerning patients and the accuracy of electronic prescriptions. Greenway accomplished its deception by preparing its test-run software to deceive the company hired to certify Prime Suite into believing that it could use the requisite clinical vocabulary.
Additionally, in order to be eligible to receive incentive payments, healthcare providers were required to meet certain targets for EHR-related activities. For example, at certain times providers were required to provide patients with clinical summaries following office visits. In its complaint, the government further alleges that Greenway was aware that an early version of Prime Suite did not correctly calculate the percentage of office visits for which its users distributed clinical summaries and thereby caused certain Prime Suite users to attest falsely that they were eligible for EHR incentive payments. Greenway refrained from rectifying this error in order to ensure that its users would continue to receive incentive payments. As a result, numerous users of this earlier version of Prime Suite falsely attested that they were eligible for EHR incentive payments when, in fact, they had not met all necessary use requirements.
Finally, the government alleged that Greenway violated the Anti-Kickback Statute by paying money and incentives to its client providers to recommend Prime Suite to prospective new customers.
“The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly circumvent our federal healthcare programs for their own benefit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate companies stealing from federal taxpayers and the people who trust in the fairness of our federally funded healthcare programs.”
As part of the settlement, Greenway entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. This innovative five-year CIA requires, among other things, that Greenway retain an Independent Review Organization to assess Greenway’s software quality control and compliance systems and to review Greenway’s arrangements with health care providers to ensure compliance with the Anti-Kickback Statute. Greenway must provide prompt notice to its customers of any patient safety related issues and maintain on its customer portal a comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks. The CIA also requires Greenway to allow Prime Suite customers to obtain the latest versions of Prime Suite at no additional charge, the opportunity to migrate their data from Prime Suite to another Greenway-developed software product also at no additional charge, and to give Prime Suite customers the option to have Greenway transfer their data to another EHR software vendor without penalties, service charges, or any other fees other than contractual amounts still owed in connection with goods or services already provided.
“Electronic Health Records can be key to an integrated health system providing improved care” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Putting patients at risk will result in intensive investigation and compliance obligations such as those in OIG’s comprehensive five-year Corporate Integrity Agreement.”
This matter was jointly handled by Assistant United States Attorneys Owen C.J. Foster and Nikolas P. Kerest, of the U.S. Attorney’s Office for the District of Vermont, Kelley Hauser and Edward Crooke of the Commercial Litigation Branch of the Civil Division, the Northern District of Georgia, the HHS Office of Inspector General, and multiple HHS agencies and components. Special Agents Gregory Peacock and Patrick Finno from the Federal Bureau of Investigation’s field office in Atlanta, Georgia provided significant investigative support to the investigation. Health Care Fraud Investigators George Thabault and Richard Lewis provided important investigative resources.
The case is captioned United States v. Greenway Health, LCC, 2:19-cv-20 (D. Vt.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
District Man Sentenced to 15 Years in Prison for Striking His Brother-In-Law in the Head with a Lug WrenchRead the Press Release
WASHINGTON – Keith Johnson, 49, of Washington, D.C., was sentenced today to 15 years in prison for an attack in which he hit his brother-in-law in the head with a lug wrench, announced U.S. Attorney Jessie K. Liu.
Johnson was found guilty by a jury in August 2018 of charges of assault with a dangerous weapon and assault with significant bodily injury while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable José M. López. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of Jan. 10, 2018, Johnson’s wife was visiting her sister and brother-in-law, in the 4300 block of Wheeler Road SE. Johnson went to the residence to take his wife home. When his wife refused to leave with him, Johnson became irate. The brother-in-law, 56, intervened and asked Johnson to leave.
A fight ensued, which culminated in Johnson pulling his brother-in-law by his ankles down two flights of stairs. With his brother-in-law in and out of consciousness at the bottom of the stairs, Johnson went to his car, retrieved a steel lug wrench, and returned to strike him over the head with the lug wrench. He hit him with such force that the lug wrench broke into two pieces. Johnson fled and was arrested during a traffic stop a few minutes later. His brother-in-law suffered a 4 ½-inch gash across the top of his head, which required surgical staples to close.
While he was on release and this case was pending, Johnson was arrested and charged with threats in a separate matter. He allegedly used the charging document in this case to threaten a couple. Johnson has remained detained since his arrest in the threats matter.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Louis Manzo and Kristina Wolf; Appellate Division Deputy Chief Nicholas Coleman; Victim/Witness Advocate Elsa Maltese; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Litigation Technology Supervisor Jeanie Latimore-Brown; Paralegal Specialists Tiffany Jones and Brenda Williams; Criminal Investigator Tommy Miller, and Interns Megan Hughes, Alexa Perlmutter, and Jill Rogowski.
Finally, she commended the work of Assistant U.S. Attorneys Jennifer B. Loeb and Amy Joy Thomas, who prosecuted the case at trial.
DOJ, ICE Recognize International Day of Zero Tolerance for Female Genital Mutilation/CuttingRead the Press Release
February 6 marks the International Day of Zero Tolerance for Female Genital Mutilation. The FBI, the Human Rights and Special Prosecutions Section (HRSP) of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE), all members of the Human Rights Violators and War Crimes Center (HRVWCC), join U.S. and foreign government partners, non-governmental organizations and local communities to call for the eradication of the practice.
Female genital mutilation/cutting (FGM/C) is a federal crime, and any involvement in committing this crime is a serious human rights violation, which may result in imprisonment and potential removal from the United States. Individuals suspected of FGM/C, including sending girls overseas to be cut, may be investigated by the HRVWCC and prosecuted accordingly.
The elimination of FGM/C has broad implications for the health and human rights of women and girls, as well as societies at large. This day serves as an opportunity to reflect on victims who have suffered from female genital mutilation/cutting, including many women and girls who have died or suffered lifelong health complications from the practice. The day also renews a global commitment to the health and well-being of all women, girls and communities by eliminating the practice.
In 2018, ICE expanded Operation Limelight USA, an outreach operation designed to educate travelers on the dangers and consequences of FGM/C, from one international airport to seven. U.S. officials with Operation Limelight USA spoke to 1300 travelers on 80 different flights from May 22 to July 2 at seven airports across the United States, while UK partners spoke to travelers at Heathrow Airport and train stations throughout the UK. In Aug. 2018, U.S. officials, including representatives from the FBI and ICE, were again joined by their partners in the United Kingdom to sign a proclamation signaling the nations’ commitment to preventing the practice.
“The FBI is committed to investigating human rights violations, including female genital mutilation/cutting (FGM),” said Unit Chief Maureen Schutz of the FBI’s Criminal Division. “We continue to work with our partners at U.S. Immigration and Customs Enforcement to protect the rights of young women and children and to bring justice to those who have violated them.”
“Female genital mutilation is a global issue and we rely on our domestic and international partners as we work to eliminate this practice. We continue to partner with the FBI, non-governmental organizations, and other government agencies to identify potential victims and find those who conduct female genital mutilation,” explained Unit Chief Mark Shaffer of ICE’s Homeland Security Investigations Human Rights Violators and War Crimes Center.
FGM/C prevalence is primarily concentrated in 30 countries in Africa, the Middle East, and Asia, but also occurs in parts of Western Europe, North America, Australia and New Zealand. It is global in scope and found in multiple geographies, religions, and socioeconomic classes.
Anyone who has information about an individual who is suspected of assisting in this crime is urged to call the toll-free ICE tip line at (866) 347-2423 or complete the ICE online tip form or the FBI online tip form. All are staffed around the clock, and tips may be provided anonymously.
- ICE Human Rights Violators and War Crimes Unit
- FBI International Human Rights Unit
For more information about the practice of female genital mutilation/cutting, view this Fact Sheet on FGM/C from the U.S. Department of State or visit the United Nations’ Zero Tolerance Day website.
Customs and Border Protection Officer Arrested on Federal Charges Alleging He Operated Unlicensed Business that Sold GunsRead the Press Release
LOS ANGELES – A U.S. Customs and Border Protection supervisory officer has been arrested on federal charges alleging that he engaged in the business of unlawfully selling firearms without a license and sold an illegal short-barreled rifle to an undercover investigator.
Wei Xu, 56, of Santa Fe Springs, an officer at the Los Angeles and Long Beach Seaport, was taken into custody Tuesday afternoon and is making his initial appearance this afternoon in federal court in downtown Los Angeles.
A criminal complaint unsealed this afternoon alleges that Xu sold or otherwise transferred at least 70 firearms through a federal firearms license (FFL) dealer since 2014. As detailed in the complaint affidavit, Xu allegedly exploited his status as a law enforcement officer to purchase and then transfer at least 14 “off-roster” handguns that cannot be sold to the general public by an FFL. Xu also sold or transferred firearms within days or weeks from the date he purchased them. Xu allegedly operated his business by posting advertisements on internet marketplaces.
According to the complaint affidavit, as part of the investigation, an undercover law enforcement officer posing as a buyer purchased a total of four firearms from Xu, three of which Xu unlawfully sold out of the trunk of his car. The firearms included an “off-roster” pistol, high-capacity magazines, and a short-barreled rifle.
Xu was arrested on Tuesday by special agents from the Federal Bureau of Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and IRS Criminal Investigation.
Pursuant to a federal search warrant executed at Xu’s residence on Tuesday and unsealed today, federal authorities seized more than 300 firearms, including numerous assault rifles, two additional short-barreled rifles, and what appear to be machine guns.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the charge of dealing firearms without a license, Xu would face a statutory maximum sentence of five years in federal prison. The charge of possessing an unlicensed firearm carries a maximum sentence of 10 years in prison.
This case is being prosecuted by Assistant United States Attorneys Annamartine Salick of the Terrorism and Export Crimes Section and Valerie Makarewicz of the Major Frauds Section.
Cuban Citizen Arrested on Charge of Making False Statements on an Application for Lawful Permanent ResidenceRead the Press Release
A Cuban citizen residing in Miami, Florida, was arrested on Feb. 5, by federal agents after being indicted on one count of making false statements in an immigration document.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Saul Santos Ferro, 73, was charged in an indictment alleging that Santos made a number of lies and misrepresentations in his application to register as a permanent resident which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status. Specifically, the indictment asserts that, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit, and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a high-ranking officer in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades. Additionally, Santos falsely stated that he never by fraud or willful misrepresentation of a material fact, ever sought to procure, or procured, a visa, other documentation, entry into the United States, or any other immigration benefit.
“Saul Santos Ferro allegedly lied to immigration authorities about his membership in the Cuban government’s internal security force to obtain lawful permanent residence status,” said Assistant Attorney General Benczkowski. “The Justice Department will continue to aggressively prosecute those who seek to exploit our immigration system through fraud and deceit.”
“Individuals who make false statements in immigration documents expose themselves to the serious threat of federal prosecution,” said U.S. Attorney Fajardo Orshan. “Law enforcement in South Florida will continue to work together to prosecute those individuals who knowingly deceive the authorities about their criminal past or foreign ties, in order to fraudulently obtain immigration benefits.”
“The United States has a lawful system of immigration that is necessary for our country to be a prosperous and orderly nation,” said Special Agent in Charge Piro. “When the system is circumvented, the FBI and our law enforcement partners have a duty to investigate in order to protect our citizens from lawbreakers who may be hiding amongst us.”
“The arrest of Saul Santos Ferro should send a clear message that we will not tolerate individuals who purposely deceive the government and violate our immigration laws,” said HSI Special Agent in Charge Salisbury. “HSI is committed to working with our federal law enforcement partners to ensure that these crimes are properly investigated and prosecuted to the fullest extent of the law.”
Santos Ferro had his initial court appearance today before U.S. Magistrate Judge Edwin G. Torres for the Southern District of Florida, who ordered him released to home confinement with GPS monitoring and a $100,000 bond.
The charges contained in the indictment are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and HSI. The case is being jointly prosecuted by Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida.
Convicted Sex Offender Pleads Guilty to Using Snapchat to Produce Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of BARTON GEORGE SCOTT, 35, a registered sex offender, for producing child pornography. SCOTT, who was indicted on September 12, 2018, entered his guilty plea earlier today before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, between April 30 and August 8, 2017, SCOTT gained unauthorized access to the Snapchat accounts of dozens of victims, including minors between 14-16 years of age. In several cases, SCOTT used threats and extortionate tactics in an attempt to obtain sexually explicit images and videos from the victims.
Based on the evidence obtained in this case, authorities believe there may be additional victims of this alleged conduct. Anyone with information about this matter is encouraged to call the FBI at (763) 569-8000. Callers may remain anonymous.
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. Attorney’s 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.
This case is the result of an investigation conducted by the FBI, the New Richmond Police Department, the Anne Arundel County Police Department, the Carver County Sheriff’s Office, the St. Croix County Sheriff’s Office, the Stillwater Police Department, the Spring Green Police Department, and the Washington County Sheriff’s Office.
Assistant U.S. Attorney Katharine T. Buzicky is prosecuting the case.
Defendant Information:
BARTON GEORGE SCOTT, 35
City of residence unknown
Convicted:
- Production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Columbus man sentenced to 9 years for connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Matthew Jackson, of Columbus, Ohio, was sentenced today to 108 months incarceration for his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Jackson, also known as “Matt-Matt,” age 23, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances” in August 2018. Jackson admitted to working with others to distribute heroin, cocaine, and methamphetamine from 2016 to April 2018 in Wetzel County and elsewhere.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
Columbia Heights Restaurant Owner Sentenced to 42 Months in Prison for Visa Fraud and Harboring an Illegal WorkerRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of PISANU SUKHTIPYAROGE, a/k/a “Pat,” 72, owner of the Royal Orchid Restaurant, to 42 months in prison for visa fraud and alien harboring. The sentence was handed down by U.S. District Judge Wilhelmina M. Wright in St. Paul, Minnesota.
“This defendant not only violated our immigration laws, he exploited a young, vulnerable victim for his own financial and sexual benefit,” said Assistant United States Attorney Laura M. Provinzino. “While nothing can make the victim truly whole, the prison sentence - which was above the guideline range for his crimes - and restitution ordered by the Court represent a just outcome. Our hope is that this brave, resilient victim can finally move forward.”
“This individual used his knowledge of our laws to fraudulently bring the victim to our country on smoke and mirror promises of the American Dream,” said Special Agent in Charge Tracy J. Cormier, of HSI St. Paul. “Instead he used the victim for sex and forced them to work at his business without pay. HSI is proud of the work accomplished in bringing Sukhtipyaroge to justice.”
According to the defendant’s guilty plea and documents filed in court, in July 2015, SUKHTIPYAROGE assisted in the procurement of an F-1 student visa for an individual identified as A.M., a citizen of the Dominican Republic whom the defendant met and befriended. At the time, SUKHTIPYAROGE was very familiar with the F-1 student visa process and knew that an F-1 student visa is a temporary, non-immigrant visa that does not permit employment in the United States. SUKHTIPYAROGE used false statements in preparing the visa application and instructed A.M. as to what he should and should not say during the visa interview.
According to the defendant’s guilty plea and documents filed in court, October 19, 2015, upon arrival in the United States, A.M. lived with the defendant and the defendant’s family in Maplewood and attended Edison High School until May 2016. At some point during this time, A.M. began living and working at the Royal Orchid Restaurant in Columbia Heights. At the restaurant, A.M. was subjected to poor living and working conditions. SUKHTIPYAROGE told A.M. he would be paid $500 per month in cash for his labor; however, A.M. did not receive the promised pay each month, as SUKHTIPYAROGE deducted the costs incurred in bringing A.M. to the United States in a debt bondage scheme. A.M. also worked at SUKHTIPYAROGE’S home in Maplewood without pay. SUKHTIPYAROGE admitted to engaging in a sexual relationship with A.M. shortly after he brought A.M. to the United States.
SUKHTIPYAROGE has also been charged in Anoka County with one felony count of third degree criminal sexual conduct and one felony count of labor trafficking.
This case was the result of an investigation conducted by Homeland Security Investigations, the Anoka County Sheriff’s Office, U.S. Department of State Diplomatic Security Service, and U.S. Department of Labor Wage and Hour Division.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino prosecuted the case.
Defendant Information:
PISANU SUKHTIPYAROGE, a/k/a “Pat,” 72
Maplewood, Minn.
Convicted:
- Visa fraud, 1 count
- Alien harboring, 1 count
Sentenced:
- 42 months in prison
- 3 years of supervised release
- Restitution ordered – amount to be determined at a later date
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Cleveland man sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA –Dennis D. Chapman, of Cleveland, Ohio, was sentenced today to 30 months incarceration for distributing cocaine near an Ohio County playground, United States Attorney Bill Powell announced.
Chapman, also known as “Kobe,” age 26, pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location” in October 2018. He admitted to selling cocaine near Pulaski Playground in Ohio County, West Virginia, in January 2018.
Assistant U.S. Attorney Steven L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.Civil Lawsuit Filed to Seek Judicial Declaration that Drug Injection Site Is Illegal Under Federal LawRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that his Office has filed a civil lawsuit to prevent the establishment of a facility in Philadelphia where drug users would go to inject themselves with illegal narcotics. The suit, filed against the nonprofit corporation Safehouse and its Executive Director, Jeanette Bowles, seeks a judicial decree that Safehouse’s planned opening of one or more so-called “consumption rooms” would violate federal law. This lawsuit is the first of its kind filed in the United States.
In response to the city’s opioid crisis, Safehouse announced last fall its intention to open a location for drug users to inject street-purchased heroin and fentanyl under medical supervision of Safehouse employees. With tacit backing from city officials, including Philadelphia District Attorney Larry Krasner who promised not to prosecute those who established or used an injection site, Safehouse plans to open the nation’s first consumption room in Philadelphia imminently.
While U.S. Attorney McSwain emphasized that community organizations play an important role in combatting the opioid scourge, he cautioned that any response must be legal. “I recognize that we are all on the same side in this fight,” he said. “The proponents of the injection site share our goal of ending this terrible epidemic. We all want solutions that save lives, but allowing private citizens to break long-established federal drug laws passed by Congress is not an acceptable path forward.”
Safehouse’s proposed consumption room would violate the federal Controlled Substances Act, a comprehensive regulatory scheme enacted in 1970. The Act makes it a felony to maintain any place for the purpose of facilitating illicit drug use. According to the government, that is exactly what Safehouse plans to do.
“So-called ‘supervised injection sites’ would break the law, plain and simple,” said U.S. Attorney McSwain. “The law is clear – and it is my job to respect and enforce the rule of law. If Safehouse wants to operate an injection site, it should work through the democratic process to try to change the law. But normalizing the use of deadly drugs like heroin and fentanyl and ignoring the law is not the answer to solving the opioid epidemic.”
“The Department of Justice’s Civil Division is committed to using every tool at its disposal to combat the opioid crisis, and that includes stopping the establishment of centers where individuals can go to illegally use and abuse dangerous drugs,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Operating spaces for the purpose of allowing the use of illegal drugs like heroin and fentanyl violates federal law and creates serious public safety risks. The Civil Division will not hesitate to bring actions like this against any state, city, municipality, or private entity that attempts to open a so-called ‘safe-injection site.’”
In partnership with federal, state, and local law enforcement, the United States Attorney’s Office prioritizes cutting off the supply of illegal opioids, prosecuting drug dealers and traffickers, and enforcing civil rights laws to ensure that people suffering from addiction have access to treatment. Local government and community organizations play a critical role in providing effective treatment options, making overdose prevention medication more readily available, and leading prevention efforts.
According to U.S. Attorney McSwain, a partnership between federal, state, and local government, along with community leaders, is needed to implement a coordinated and effective response to the opioid crisis. “I invite a dialogue with our community partners, including Safehouse, to discuss ways we can work together within the law to bring an end to this epidemic,” he said.
Child Sex Offender Charged with Illegally Re-Entering the United StatesRead the Press Release
HOUSTON – A 50-year-old Honduran citizen has been charged in federal court for illegally re-entering the country after having been convicted and deported for multiple sex offenses in California, announced U.S. Attorney Ryan K. Patrick.
Marvin Mejia Ramos aka Ricardo Morales Rodriguez and Martin Jose Romes-Ramirez was charged with illegally re-entering the United States following an aggravated felony conviction and subsequent deportation. According to court records, in 2007, he was convicted in California for continuous sexual abuse and lewd act upon a child. He was sentenced to six years imprisonment for those offenses and was deported in 2013, according to the complaint.
As such, he is not permitted to return to the United States.
However, on Jan. 30, 2019, authorities with the Precinct 4 Montgomery County Constables Office discovered him during a traffic stop in New Caney. He was subsequently charged with illegal re-entry after deportation.
At a hearing in federal court today, Assistant U.S. Attorney (AUSA) Adam Laurence Goldman argued Mejia Ramos is both a flight risk and danger to the community. U.S. Magistrate Judge Dena Hanovice Palermo then ordered Mejia Ramos into custody pending further criminal proceedings.
If convicted, Mejia Ramos faces up to 20 years in federal prison.
Immigration and Customs Enforcement – Enforcement Removal Operations conducted the investigation. AUSA Goldman is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Career Criminal Charged with Illegally Possessing FirearmRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for being a felon in possession of a firearm.
On Nov. 26, 2018, Reginald Boyd, 29, was allegedly found in possession of a .22 caliber North American Arms revolver with five rounds of ammunition. Boyd is prohibited from possessing a firearm due to three previous drug convictions, all punishable by more than a year in prison.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Norfolk County District Attorney’s Office and the Massachusetts State Police. Assistant U.S. Attorney Evan Gotlob of Lelling’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Man Sentenced for Distributing Fentanyl Which Resulted in DeathRead 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 Carlique DeBerry, 40, of Buffalo, NY, who was convicted of distribution of fentanyl causing death, was sentenced to serve 20 years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Brendan T. Cullinane and Wei Xiang, who handled the case, stated that on February 25, 2016, the defendant traveled to Hamburg, NY, shortly after 9:00 p.m. to the home of a repeat drug customer identified as R.G. DeBerry sold a quantity of “heroin” to R.G. then left. Shortly after midnight, R.G.'s mother found R.G. slumped over deceased in a chair.
Law enforcement officers who responded to the residence seized R.G.'s cell phone. The next morning, the defendant sent a text message to R.G. stating, "Call me wen u get this bro." A police officer pretending to be R.G. responded, leading to the following exchange with the defendant:
“R.G.”: Yo my mins are about used. What's up? That was some good (expletive) last night
Defendant: K Just checkn on u thts all
“R.G.”: That was some heavy stuff wtf was up w thay
Defendant: Its pure thats whats up wit it broDeberry then arranged to sell another bundle of the “heroin” for $100.
An autopsy determined that R.G.’s cause of death was acute fentanyl intoxication.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Hamburg Police Department, under the direction of Chief Gregory Wickett.
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$3.6 Million Settlement Resolves Procurement Fraud Investigation Against Colorado and Maryland Construction Companies Involved with SBA’s Minority Disadvantaged Business Development ProgramRead the Press Release
DENVER – VMJ Construction, LLC (“VMJ”) and its owner, Colorado resident Michael T. Vigil, as well as Maryland-based Vigil Contracting, Inc. (“Vigil Contracting”) and its Operations Manager, John J. Vigil, have agreed to pay the United States $3.6 million to resolve allegations that they defrauded the Small Business Administration (“SBA”) 8(a) Business Development Program.
The SBA’s 8(a) Business Development Program (the “8(a) Program”) for economically and socially disadvantaged small businesses serves dual roles. First, the program helps socially and economically disadvantaged small business owners gain access to valuable federal contracts, thereby promoting economic and social mobility. Second, the program saves taxpayers money by spurring a competitive marketplace. By promoting the development of small businesses, the 8(a) Program helps prevent the formation of monopolies that would stifle innovation and restrict consumers’ ability to negotiate lower prices. It is important that the 8(a) Program is reserved only for companies that actually meet the program’s criteria because misuse of the program deprives legitimate 8(a) Program participants of valuable economic opportunities and undermines the integrity of the program.
There are several rules that businesses in the 8(a) Program must abide by. The socially and economically disadvantaged owner of the business must manage the day-to-day operations of the company and have responsibility for the long-term decision-making for the company. 8(a) Program applicants must also truthfully disclose any affiliation with other businesses so that SBA may accurately assess whether the applicant meets the definition of a small business, and whether the applicant shows potential for success and the ability to perform the requisite percentage of the contracts secured through the Program. Businesses also cannot remain in the 8(a) Program indefinitely; after nine years, they graduate from the program and are no longer eligible to bid on 8(a) contracts.
VMJ was accepted into the 8(a) Program in 2011. Michael T. Vigil, who is Hispanic, was the 91% owner of VMJ, and was the socially and economically disadvantaged individual upon which VMJ based its application to the 8(a) program. John J. Vigil was a 9% owner of VMJ. John J. Vigil was also the Operations Manager of Vigil Contracting. Vigil Contracting is a 2011 graduate of the 8(a) Program. Since 2011, Vigil Contracting has not been eligible to bid for contracts reserved for 8(a) Program participants.
The United States contends that VMJ made false statements to the SBA regarding its eligibility to participate in the 8(a) Program. Specifically, VMJ relied almost exclusively upon Vigil Contracting to bid on and complete the work awarded to VMJ under the 8(a) Program. VMJ used Vigil Contracting’s bonding, office space, employees, contractors, software, computers, and vehicles. Vigil Contracting employees and contractors, including John J. Vigil, made the high-level business decisions of VMJ and managed the day-to-day operations of VMJ. Michael T. Vigil did not control VMJ, did not set the long-term policy, nor manage the day-to-day management of the business. VMJ knowingly misrepresented these facts to SBA, in both VMJ’s initial application to participate in the 8(a) Program and in an annual update to SBA. As a result of the deception, the United States Army, the United States Navy, and the United States Department of Agriculture awarded VMJ several federal government contracts set aside for 8(a) Program participants.
“The United States uses these set-aside contracts for a clear reason: to help small businesses owned by economically and socially disadvantaged individuals. This program continues the promise of the American Dream by helping new small businesses get on their feet, and with more businesses on their feet, our markets are healthier and more competitive.” said United States Attorney, Jason Dunn. “When companies lie about their eligibility to get these contracts, they prevent other deserving small businesses from getting the assistance that Congress intended.”
“The false statements in this case were intended to deceive the government into believing that VMJ Construction was operated by a disadvantaged small business owner whom was eligible to participate in SBA’s 8(a) Program,” said SBA Office of Inspector General Western Region Acting Special Agent-in-Charge Weston King. “The defendants in this scheme sought personal gain at the expense of disadvantaged small businesses. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication to enforcing compliance in SBA’s contracting programs.” SBA’s General Counsel Christopher Pilkerton adds, “The outcome in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and other Federal law enforcement agencies, to detect procurement fraud and prosecute those individuals and companies that engage in such activities.”
“The Defense Criminal Investigative Service will investigate all allegations of abuse related to Government set aside programs designed to encourage and support veteran, woman and minority owned small businesses. DCIS will pursue all appropriate criminal, civil and administrative actions against individuals who abuse these programs for illicit financial gain,” stated Michael Mentavlos, Special Agent in Charge, Southwest Field Office.
The United States Attorney’s Office thanks the SBA Office of Inspector General, U.S. Army Criminal Investigation Command, and the Department of Defense Office of Inspector General for their diligent work on this investigation. The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
5 February 2019
York Man Pleads Guilty to Health Care FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nagy Mohamed Abdelhamed, age 68, of York, Pennsylvania, pleaded guilty before U.S. District Court Judge John E. Jones to health care fraud for his fraudulent receipt of Medicaid and SNAP (Supplemental Nutritional Assistance Program, formerly known as Food Stamp) benefits.
According to United States Attorney David J. Freed, Abdelhamed admitted he applied for Medicaid and SNAP benefits with the York County Assistance Office in August 2014 even though he owned a four bedroom residence in York, a gas station in York, a 2008 Mercedes Benz E350 automobile, received $1,124 a month in Social Security disability benefits, and held approximately $58,500 in eight different bank accounts.
On August 22, 2014, Abdelhamed sold his gas station for $172,883 and deposited $87,016 of the sales proceeds into a bank account. Abdelhamed did not notify the York County Assistance Office of the sale or his receipt of the sales proceeds. Abdelhamed continued to receive Medicaid and SNAP benefits into 2018 and as a result, fraudulently obtained approximately $29,337 in benefits, including approximately $20,000 in Medicaid benefits.
Abdelhamad agreed the loss in the case was $29,337, and to make full restitution as ordered by the Court.
No date has yet been scheduled for sentencing pending preparation of a presentence report.
The matter was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and the Health and Human Services Office of Inspector General. Assistant U. S. Attorney Kim Douglas Daniel is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilmington Man Receives More than 6 Years for Gun and Drug ConvictionsRead the Press Release
NEW BERN — Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced that today, United States District Judge Louise Flanagan sentenced RONNELL MELVIN, 32, of New Hanover County to 83 months’ imprisonment, followed by 3 years of supervised release. On October 18, 2018, MELVIN pled guilty to possession of a firearm by a convicted felon and possession with intent to distribute a quantity of heroin and cocaine base (crack).
On December 29, 2017, Wilmington Police Officers responded to a shots fired call in the 600 block of Campbell Street, Wilmington North Carolina. When they arrived, officers observed MELVIN possessing a handgun. MELVIN was ordered to drop the gun and he complied with the officer’s directive. MELVIN was searched and found to have 2 cell phones, a quantity of crack cocaine and heroin and $229 on his person. MELVIN had a prior felony conviction for attempting to traffic in heroin by transportation.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation Safe Streets Task Force and the Wilmington Police Department. Assistant United States Attorney Timothy Severo prosecuted the case.
Williamson County Man Charged with Drug and Gun OffensesRead the Press Release
Jonathan P. W. Garrison of Marion, Illinois, has been charged by indictment with unlawful delivery of methamphetamine, possession with intent to distribute methamphetamine, and unlawful possession of a firearm by a convicted felon (2 counts), United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The four-count federal indictment alleges that the offenses occurred between November 13, 2018, and December 19, 2018, in Williamson and Franklin Counties. Garrison, 28, made his initial appearance in federal court earlier this week and pleaded not guilty to the charges. He was ordered held without bond pending an April 8, 2019 jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offenses carry a maximum penalty of 20 years imprisonment, three years of supervised release, and a fine of $1 million. The firearm offenses carry a maximum penalty of 10 years imprisonment, three years of supervised release, and a fine of up to $250,000.
The ongoing investigation is being conducted by the Marion Police Department, Southern Illinois Drug Task Force, West Frankfort Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Williamson County State’s Attorney’s Office also assisted in the investigation.
Woman from Albuquerque Charged with Setting Fire to FBI PropertyRead the Press Release
ALBUQUERQUE –Josephine Gervais, 39, of Albuquerque, N.M., appeared in federal court today on a charge of malicious damage by fire to federal property.
According to court documents, Gervais committed the offense on January 31, 2019, by setting fire to a sign and vegetation outside the FBI office in Albuquerque. Albuquerque Fire and Rescue responded to the scene and put out the fire. Gervais fled the scene. Agents arrested her at her home later the same day.
Gervais faces from 5 to 20 years in prison if convicted. Allegations in indictments are only accusations. A criminal defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
The Albuquerque office of the FBI investigated the case with assistance from Albuquerque Fire and Rescue. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case.
Woman from Albuquerque Charged with Setting Fire to FBI PropertyRead the Press Release
ALBUQUERQUE –Josephine Gervais, 39, of Albuquerque, N.M., appeared in federal court today on a charge of malicious damage by fire to federal property.
According to court documents, Gervais committed the offense on January 31, 2019, by setting fire to a sign and vegetation outside the FBI office in Albuquerque. Albuquerque Fire and Rescue responded to the scene and put out the fire. Gervais fled the scene. Agents arrested her at her home later the same day.
Gervais faces from 5 to 20 years in prison if convicted. Allegations in indictments are only accusations. A criminal defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
The Albuquerque office of the FBI investigated the case with assistance from Albuquerque Fire and Rescue. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case.
Upshur County Methamphetamine Trafficking Operation BustedRead the Press Release
TYLER, Texas – U.S. Attorney Joseph D. Brown announced today that seven individuals have been arrested and indicted as the result of a lengthy investigation into drug trafficking activities in the Eastern District of Texas.
Beginning in 2017, a combined task force of federal, state and local law enforcement began a multi-agency investigation into the trafficking of methamphetamine in and around Upshur County, Texas. During the course of the investigation, law enforcement agencies conducted numerous audio- and video-recorded controlled purchases of methamphetamine from suspects. Furthermore, law enforcement officers and agents executed search and arrest warrants, seizing additional quantities of methamphetamine and firearms.
This operation resulted in the arrests of Roger Dale Hall, 53; Denise Michelle Taylor, 35; Christopher Dewayne Bunn, 43; Shaun Dale Weeks, 43; Jessie Darwin Ezell, 37; Darrell Lynn Gage, Jr., 41; and Kenny Okeith Harris, 32, all of Gilmer, Texas.
The defendants were indicted by a federal grand jury on Dec. 13, 2018, and charged with conspiracy to possess with intent to distribute methamphetamine. In addition, Weeks, Bunn, and Harris are charged with firearms offenses including felon in possession of a firearm and use, carrying, and possession of a firearm during and in furtherance of a drug trafficking crime. Hall, Taylor, Bunn, Weeks, Ezell, and Gage each have prior federal or state felony convictions relating to the possession and distribution of controlled substances. The defendants have appeared before U.S. Magistrate Judge Roy Payne. The indictment remained sealed by the court until Feb. 4, 2019, and after the final defendant, Roger Dale Hall, was arrested.
If convicted, the defendants could each face from five to 40 years in federal prison.
“These arrests have made a big impact on the supply of methamphetamine in this part of East Texas,” said U.S. Attorney Joe Brown. “The defendants were moving large amounts of drugs, and staying in the more rural areas to avoid detection. Credit really goes to the cooperation of several local, state, and federal agencies which worked together to take these people off the street.”
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Drug Enforcement Administration, the Texas Department of Public Safety, the Upshur County Sheriff’s Office, the Gregg County Sheriff’s Office, the Upshur County District Attorney’s Office, the Gregg County Organized Drug Enforcement (CODE) Unit, and the Gilmer Police Department. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek.
An indictment or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Thomas T. Cullen Offers Condolences to the Virginia State Police as They Mourn Slain Virginia State Trooper Lucas B. DowellRead the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen joins the Virginia State Police and law enforcement throughout the Commonwealth in mourning the loss of Virginia State Police Trooper Lucas B. Dowell, a Chilhowie, Virginia native who died in the line of duty Monday, February 4, 2019.
“As this terrible incident illustrates, police officers risk their lives every time they put on a uniform,” U.S. Attorney Cullen stated today. “Trooper Dowell’s bravery and sacrifice are a sobering reminder of those dangers. The federal law-enforcement community in Western Virginia mourns the loss of this courageous young man and will honor his legacy.”
Trooper Dowell was a member of the Virginia State Police Tactical Team that was assisting the Piedmont Regional Drug Task Force with executing a search warrant at a residence in Cumberland County, Virginia just north of the town of Farmville. According to the Virginia State Police, the tactical team had made entry into the residence shortly before 10 p.m. when an adult male inside the residence began shooting at them, hitting Trooper Dowell.
Trooper Dowell was transported to Southside Community Hospital in Farmville where he later died from his injuries. Trooper Dowell becomes the Virginia State Police’s 66th line of duty death. Trooper Dowell graduated from the Virginia State Police’s 122nd Basic Session in November 2014. Since graduation, he has been assigned to the Virginia State Police Appomattox Division. Trooper Dowell is survived by his parents and a sister.