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4 February 2019
Pentec Health, Inc. to Pay $17 Million to Settle False Claims Act AllegationsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Pentec Health, Inc. (“Pentec”) has agreed to pay the United States $17 million to settle allegations that Pentec submitted false claims to Medicare and other government healthcare programs.
Headquartered in Glen Mills, Pennsylvania, Pentec furnishes a range of renal and specialized pharmacy compounding services, including the compounding of its drug, Proplete, and the provision of intradialytic parenteral nutrition (“IDPN”) and intraperitoneal nutrition (“IPN”) to individuals with end stage renal disease.
The United States alleges that from 2007 to 2018, Pentec billed Medicare and other federal healthcare programs for excessive amounts of product wasted during the compounding of Proplete, and Pentec routinely waived patient copayments and deductible obligations in order to induce the prescription and use of Proplete. Pentec also submitted duplicate and improperly coded claims to the Federal Employee Health Benefits Program.
Along with this Settlement, Pentec has also signed a Corporate Integrity Agreement (“CIA”) with the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) that will require regular monitoring of its billing practices for a period of five years.
“We are committed to ensuring that compounding pharmacies appropriately bill Medicare,” said U.S. Attorney McSwain. “Pentec allegedly padded its bottom line through several improper means, including by charging the government for quantities of medication that its patients did not actually need or receive. Those who engage in these practices will be held accountable.”
“Compounding pharmacies play an integral role in the delivery of quality health care services and are required to follow rules designed to protect patients and prevent the waste of taxpayer funds,” said Maureen Dixon, Special Agent in Charge of HHS-OIG in Philadelphia. “We will continue to work closely with the United States Attorney’s Office to ensure the integrity of taxpayer funds.”
This settlement resolves a lawsuit filed under the False Claims Act (FCA) in the U.S. District Court for the Eastern District of Pennsylvania by Jean Brasher, a former employee of Pentec, under the qui tam or whistleblower provisions of the FCA, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The FCA also permits the government to intervene and take over the lawsuit. Ms. Brasher was represented by David Bocian, Esq. of Kessler Topaz Melzter & Check, LLP.
“We thank the relator for her invaluable contribution in this case. Together with her lawyers, they provided vital assistance to the government throughout this case. Without information from citizens like the relator, detecting fraud and conserving government program funds would be far more difficult,” said U.S Attorney McSwain.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The case was investigated by Assistant U.S. Attorney Jacqueline C. Romero of the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from Health Care Fraud auditor George Niedzwicki, HHS-OIG, the United States Office of Personnel Management-Office of Inspector General, and the United States Department of Veterans Affairs-Office of Inspector General.
The case is captioned United States et al. ex rel. Jean Brasher v. Pentec Health, Inc. No. 13-cv-05745 (E.D.Pa.). The claims resolved by this settlement are allegations only and there has been no determination of liability
Orono Man Sentenced to 87 Months of Prison for Tax Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of SCOTT PHILLIP FLYNN, 57, to 87 months of federal prison. He was also ordered to pay over $5 million in restitution. FLYNN was sentenced by Senior U.S. District Judge Ann D. Montgomery on January 24, 2019, in Minneapolis, Minnesota. On June 4, 2018, FLYNN pleaded guilty to one count of conspiracy to defraud the IRS and one count of tax evasion.
According to the defendant’s guilty plea and documents filed in court, between 2005 and 2015, FLYNN evaded the assessment of millions of dollars in income taxes by fraudulently hiding millions of shares of stock that he obtained for himself. In 2006 and 2008, FLYNN assisted two privately-held Wisconsin-based companies, Tower Tech Systems, Inc. and Advanced Fiberglass Technologies, in becoming publicly traded through stock-for-stock “reverse merger” transactions. As compensation for FLYNN’S work, millions of shares of publicly-traded stock in the resulting public companies were transferred to “Integritas, Inc.” and “Diversified Equities Partners,” both of which were controlled by FLYNN. FLYNN, who exercised control over the stock, which had considerable value, was required to, but did not, report the receipt of the shares of stock as income on his individual income tax returns.
According to the defendant’s guilty plea and documents filed in court, in order to conceal his control and ownership of the stock, and to evade paying income taxes, FLYNN caused a portion of the stock to be put in the names of Australian nominees recruited by FLYNN’S co-conspirator. The Australian nominees, who never actually owned or controlled the stock, were directed to open brokerage accounts in the United States to receive the shares, but FLYNN possessed their login and password data so he could maintain control of the accounts and the shares of stock.
According to the defendant’s guilty plea and documents filed in court, during the course of the conspiracy, when FLYNN needed money, he caused the Australian nominees to sell shares of stock and transfer the proceeds to entities in the United States controlled by FLYNN, which in turn made payments to FLYNN or on his behalf. These sales generated millions of dollars in income, which FLYNN purposely failed to report to the IRS. For example, in 2007, FLYNN received approximately $2.7 million of the proceeds from the Australian nominees to buy a house in Orono, Minnesota, which was considered income to FLYNN. That year, in a tax return FLYNN acknowledged was materially false at his guilty plea hearing, FLYNN reported only $26,136 of total income.
United States Attorney MacDonald thanked the Criminal Investigation Division of the IRS who investigated the case and Assistant United States Attorneys David J. Maclaughlin and Benjamin F. Langner who prosecuted the case.
Defendant Information:
Scott Phillip Flynn, 57
Orono, Minnesota
Convicted:
- Conspiracy to defraud the IRS, 1 count
- Tax Evasion- 2007, 1 count
Sentenced:
- 87 months (60 months on Count 1 and 27 months on Count 3 to run consecutively)
- 2 years of supervised release
- $5,392,442.87
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
North Charleston Man Sentenced to 20 Years in Federal Prison for Mt. Pleasant Armed RobberiesRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Leonard Franklin Clark, 31, of North Charleston, South Carolina, was sentenced to 20 years in federal prison for his role in three Mt. Pleasant robberies. There is no parole in the federal system.
Evidence presented by the Government established that on May 9, 2017, Leonard Clark and his codefendants robbed a grocery store located on SC Highway 41 in Mt. Pleasant, South Carolina. Kalee Lynn-Bishop entered the store hours before the robbery to surveil the robbery location. During the robbery, three masked men, including Leonard Clark and Cortlyn Brown, entered the grocery store while Kamal Backman remained in a vehicle to serve as the lookout and getaway driver. The men that entered the grocery store carried firearms, brandishing the firearms in furtherance of the robbery. The gunmen ordered the employees to lay face down on the floor while pointing the weapons to their heads. The men stole $9,109.00 from the store.
On May 12, 2017, Leonard Clark, Cortlyn Brown, and Kamal Backman robbed a bank located on Park West Boulevard, Ace Area 6 in Mt. Pleasant, South Carolina. Kalee Lynn-Bishop entered the bank prior to the robbery to surveil the location. At approximately 3:56 p.m., four masked men entered the bank armed with firearms and demanded money. The men pointed their guns at the employees, brandishing the firearms in furtherance of the robbery. The defendants stole $21,238.00 and an employee’s cell phone and purse.
On July 11, 2017, at approximately 9:00 a.m., Leonard Clark and a second man robbed a bank on Anna Knapp Blvd. in Mt. Pleasant, South Carolina. Both men carried firearms and pointed the weapons at the bank tellers in furtherance of the robbery. The men stole $13,227.00 from the bank, but a bank teller was able to insert a dye pack into the stolen money.
The next day, Leonard Clark deposited $1,440.00 in dye-stained money into his bank account through an ATM in West Ashley. That same day, the Berkeley County Sheriff’s Office performed a traffic stop on the defendant’s registered vehicle while he was the sole occupant and driver of the vehicle. During a subsequent search of the vehicle, officers located a Springfield 9mm firearm with an extended magazine containing 19 rounds and one in the chamber. The firearm was reported stolen from Coastal Firearms in Cainhoy, South Carolina. Officers also located $2,735.00 in cash on Leonard Clark’s person.
On July 21, 2017, investigators obtained a search warrant for Leonard Clark’s North Charleston residence. The sink in the master bathroom was covered in red dye, and investigators recovered dye-stained cash from numerous areas in the master bedroom. Investigators also located an empty Smith & Wesson box, black gloves, a black and camo mask, and bank documents for Leonard Clark in the master bedroom.
Shortly thereafter, officers initiated a traffic stop on Leonard Clark’s vehicle. A subsequent search of the vehicle revealed items consistent with Clark’s involvement in the robberies: a white and black bandana and a black ski mask in the back seat, black gloves with blue trim, a loaded Smith & Wesson magazine, and a silver and black Smith & Wesson handgun stained with red dye. The handgun had the same serial number as the empty Smith & Wesson box located in Clark’s bedroom at the North Charleston residence.
The Honorable Richard M. Gergel, who sentenced Clark, previously sentenced Clark’s three codefendants, Cortlyn DaQuan Brown, 23; Kamal De’Andrea Backman, 21; and Kalee Lynn-Bishop, 25, all of Mt. Pleasant, for their roles in the grocery store and bank robberies. Cortlyn Brown received a 10-year federal prison sentence on November 6, 2018. Kamal Backman received a 108-month sentence on January 25, 2019. Kalee Lynn-Bishop received a 44-month sentence on November 6, 2018.
The convictions are the result of an investigation conducted by the Federal Bureau of Investigation and the Mt. Pleasant Police Department. Assistant United States Attorneys Emily Limehouse of the Charleston office and JD Rowell of the Columbia office prosecuted the case.
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North Carolina man sentenced to 15 years in prison for trying to recruit people to launch attacks on behalf of ISISRead the Press Release
Erick Jamal Hendricks, 38, of Charlotte, North Carolina, was sentenced to 15 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
A jury in Akron, Ohio, convicted Hendricks last year of attempting and conspiring to provide material support to a designated foreign terrorist organization.
The sentence was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman of the Northern District of Ohio and Special Agent in Charge Eric Smith of the FBI’s Cleveland Office.
“This defendant sought to create a cell of ISIS supporters, train those people and then launch attacks from inside the United States,” U.S. Attorney Herdman said. “This defendant posed a very real threat to the safety of our community and nation.”
“Erick Jamal Hendricks represents the significant online ISIS threat that we face daily – a US citizen that became radicalized online and attempted to recruit and train individuals to commit jihad, all while living in the United States,” said Special Agent in Charge Smith. “The FBI urges the public to report information regarding individuals pledging their allegiance to ISIS or other identified terrorist groups. The FBI is pleased that Hendricks was stopped before he was successful and now will spend a significant amount of time behind bars.”
According to court documents and trial testimony, Hendricks tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIS.
Amir Al-Ghazi was arrested in the Northern District of Ohio in June 2015 after attempting to purchase an AK-47 assault rifle and ammunition from an undercover law enforcement officer. Al-Ghazi had pledged allegiance to ISIS in social media and made statements expressing interest in conducting attacks in the U.S.
Hendricks had contacted Al-Ghazi over social media to recruit him in the spring of 2015. Hendricks allegedly told Al-Ghazi that he “needed people” and wanted to meet in person; that there were several “brothers” located in Texas and Mexico; that he was attempting to “get brothers to meet face to face;” and that he wanted “to get brothers to train together,” according to court documents and trial testimony
Al-Ghazi said Hendricks tested his religious knowledge and commitment, inquiring about his willingness to commit “jihad,” to die as a “martyr” and his desire to enter “jannah” (paradise). Al-Ghazi understood these statements to mean that Hendricks was recruiting people to train together for the purpose of conducting a terrorist attack in the U.S. and to see if Al-Ghazi was suitable for recruitment, according to the allegations. Al-Ghazi believed that Hendricks and the “brothers in Texas and Mexico” may have been responsible for a thwarted terrorist attack in Garland, Texas, on May 3, 2015, and therefore he decided to stay away from social media for a period following the attack to minimize detection by law enforcement.
Hendricks also communicated over social media with several other people, including an undercover FBI employee (UCE-1). Hendricks on April 16, 2015 instructed UCE-1 to download the document “GPS for the Ghuraba in the U.S.”, which included a section entitled “Final Advice” which advocated that “brothers and sisters” should not allow themselves to go to jail. This section also allegedly encouraged Muslims to die as a “Shaheed” (martyr), to “Boobie trap your homes,” to “lay in wait for them” and to “never leave your home without your AK-47 or M16.” Hendricks also directed UCE-1 to communicate online with other people and stated “It’s hard to sift through brothers;” “Allah chooses only the few;” and “Everyday I do this day in and day out,” according to court documents and trial testimony.
Hendricks told another person that his goal was to create a sleeper cell to be trained and housed at a secure compound that would conduct attacks in the U.S. He mentioned that potential targets included military members whose information had been released by ISIS and the woman who organized the “Draw Prophet Mohammad contest,” and he claimed to have 10 members signed up for his group, according court documents and trial testimony.
On April 23, 2015, Hendricks used social media to contact Elton Simpson, who, along with Nadir Hamid Soofi, was inspired by ISIS and launched the attack on the “First Annual Muhammad Art Exhibit and Contest” in Garland. Simpson and Soofi opened fire, wounding a security guard, before Garland police returned fire and killed both Simpson and Soofi. Hendricks also connected UCE-1 with Simpson via social media, communicated with UCE-1 about the contest in Garland, and directed UCE-1 to go to the contest. Hendricks said: “If you see that pig (meaning the organizer of the contest) make your ‘voice’ heard against her.” He also asked UCE-1 a series of questions related to security at the event, including: “How big is the gathering?” “How many ppl?” “How many police/agents?” “Do you see feds there?’ “Do you see snipers?” and “How many media?” Shortly thereafter, Simpson and Soofi committed the attack on the cartoon drawing contest.
Al-Ghazi is serving a 16-year prison sentence after pleading guilty to attempting to provide material support to a designated terrorist organization and being a felon in possession of firearms.
This case was investigated by the FBI’s offices in Cleveland; Columbia, South Carolina; Baltimore; and Charlotte, with assistance from the U.S. Attorney’s Offices in the District of Maryland, District of South Carolina and the Western District of North Carolina.
This case was prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Mark S. Bennett and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
North Carolina Man Sentenced to 15 Years in Prison for Attempting and Conspiring to Provide Material Support to ISISRead the Press Release
Erick Jamal Hendricks, 38, of Charlotte, North Carolina, was sentenced to 15 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
A jury in Akron, Ohio, convicted Hendricks last year of attempting and conspiring to provide material support to a designated foreign terrorist organization.
The sentence was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman of the Northern District of Ohio and Special Agent in Charge Eric Smith of the FBI’s Cleveland Office.
According to court documents and trial testimony, Hendricks tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIS.
“Hendricks used social media to recruit others to plan and carry out attacks on our homeland in the name of ISIS, with the goal of creating a sleeper cell on our soil,” said Assistant Attorney General Demers. “Thanks to the collaborative efforts of law enforcement, Hendricks’ plan was thwarted, and with today’s sentence, he is being held accountable for his terrorist activities.”
“This defendant sought to create a cell of ISIS supporters, train those people and then launch attacks from inside the United States,” U.S. Attorney Herdman said. “This defendant posed a very real threat to the safety of our community and nation.”
“Erick Jamal Hendricks represents the significant online ISIS threat that we face daily – a US citizen that became radicalized online and attempted to recruit and train individuals to commit jihad, all while living in the United States,” said Special Agent in Charge Smith. “The FBI urges the public to report information regarding individuals pledging their allegiance to ISIS or other identified terrorist groups. The FBI is pleased that Hendricks was stopped before he was successful and now will spend a significant amount of time behind bars.”
According to court documents and trial testimony, Hendricks tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIS.
Amir Al-Ghazi was arrested in the Northern District of Ohio in June 2015 after attempting to purchase an AK-47 assault rifle and ammunition from an undercover law enforcement officer. Al-Ghazi had pledged allegiance to ISIS in social media and made statements expressing interest in conducting attacks in the U.S.
Hendricks had contacted Al-Ghazi over social media to recruit him in the spring of 2015. Hendricks allegedly told Al-Ghazi that he “needed people” and wanted to meet in person; that there were several “brothers” located in Texas and Mexico; that he was attempting to “get brothers to meet face to face;” and that he wanted “to get brothers to train together,” according to court documents and trial testimony
Al-Ghazi said Hendricks tested his religious knowledge and commitment, inquiring about his willingness to commit “jihad,” to die as a “martyr” and his desire to enter “jannah” (paradise). Al-Ghazi understood these statements to mean that Hendricks was recruiting people to train together for the purpose of conducting a terrorist attack in the U.S. and to see if Al-Ghazi was suitable for recruitment, according to the allegations. Al-Ghazi believed that Hendricks and the “brothers in Texas and Mexico” may have been responsible for a thwarted terrorist attack in Garland, Texas, on May 3, 2015, and therefore he decided to stay away from social media for a period following the attack to minimize detection by law enforcement.
Hendricks also communicated over social media with several other people, including an undercover FBI employee (UCE-1). Hendricks on April 16, 2015 instructed UCE-1 to download the document “GPS for the Ghuraba in the U.S.”, which included a section entitled “Final Advice” which advocated that “brothers and sisters” should not allow themselves to go to jail. This section also allegedly encouraged Muslims to die as a “Shaheed” (martyr), to “Boobie trap your homes,” to “lay in wait for them” and to “never leave your home without your AK-47 or M16.” Hendricks also directed UCE-1 to communicate online with other people and stated “It’s hard to sift through brothers;” “Allah chooses only the few;” and “Everyday I do this day in and day out,” according to court documents and trial testimony.
Hendricks told another person that his goal was to create a sleeper cell to be trained and housed at a secure compound that would conduct attacks in the U.S. He mentioned that potential targets included military members whose information had been released by ISIS and the woman who organized the “Draw Prophet Mohammad contest,” and he claimed to have 10 members signed up for his group, according court documents and trial testimony.
On April 23, 2015, Hendricks used social media to contact Elton Simpson, who, along with Nadir Hamid Soofi, was inspired by ISIS and launched the attack on the “First Annual Muhammad Art Exhibit and Contest” in Garland. Simpson and Soofi opened fire, wounding a security guard, before Garland police returned fire and killed both Simpson and Soofi. Hendricks also connected UCE-1 with Simpson via social media, communicated with UCE-1 about the contest in Garland, and directed UCE-1 to go to the contest. Hendricks said: “If you see that pig (meaning the organizer of the contest) make your ‘voice’ heard against her.” He also asked UCE-1 a series of questions related to security at the event, including: “How big is the gathering?” “How many ppl?” “How many police/agents?” “Do you see feds there?’ “Do you see snipers?” and “How many media?” Shortly thereafter, Simpson and Soofi committed the attack on the cartoon drawing contest.
Al-Ghazi is serving a 16-year prison sentence after pleading guilty to attempting to provide material support to a designated terrorist organization and being a felon in possession of firearms.
This case was investigated by the FBI’s offices in Cleveland; Columbia, South Carolina; Baltimore; and Charlotte, with assistance from the U.S. Attorney’s Offices in the District of Maryland, District of South Carolina and the Western District of North Carolina.
This case was prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Mark S. Bennett and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Myrtle Beach Man Pleads Guilty to Selling Heroin and Cocaine “Speedball” That Caused Overdose DeathRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that James Latron Sumter, a/k/a “T”, age 35, of Myrtle Beach, South Carolina, has pled guilty in federal court to conspiring to distribute a quantity of cocaine and heroin, the use of which resulted in serious bodily injury or death. This charge potentially carries a mandatory sentence of 20 years to life in federal prison.
Assistant United States Attorney Everett McMillian presented evidence that reflects Sumter was contacted on December 29, 2017, by co-conspirator Charles Rayford Hunt, Jr., who was seeking to purchase what is commonly called a “speedball”—a potent combination of cocaine and heroin—for $100 for a female acquaintance of Hunt’s. Hunt met the female while working as an Uber driver and had a short-lived romantic relationship with her for two days prior to this incident. As reflected in text messages between Hunt and Sumter and statements from witnesses, Hunt drove the female victim to an apartment where Sumter provided the drugs sometime after 9:00 pm. The victim later used the drugs and immediately thereafter showed signs of an overdose.
Upon seeing her reaction, Hunt contacted Sumter and returned to pick him up. Not wanting to take the overdosing victim home to her father with whom she lived, Hunt and Sumter drove around and eventually stopped at Magoo’s Sports & Spirits to play pool sometime after midnight—leaving the overdosing victim passed out in the back seat of the car. After playing pool, Hunt took Sumter back to the apartment complex and drove around the Myrtle Beach area with the victim still passed out in the back seat of his car. Eventually, Hunt realized the victim had quit breathing at which time he “panicked” and dumped her body in a wooded area just across the North Carolina border during the early morning hours of December 30. Hunt then drove back to Myrtle Beach, throwing the victim’s cell phone into the intercostal waterway on the way back. He took the victim’s purse and belongings to another conspirator, Jose Anthony Ortiz, Jr., who destroyed many of the victim’s personal items in a burn pit at Hunt’s request.
On December 31, Special Agents with the Federal Bureau of Investigation and Drug Enforcement Administration learned of the incident. Working together, the FBI and DEA quickly collaborated with detectives from the Horry County Police Department and Columbus County Sheriff’s Office in North Carolina to unravel the scheme. Hunt was located, promptly confessed his role in the event, and led officials to the victim’s body. An autopsy and toxicology report later confirmed the victim died as a result of a heroin and cocaine overdose. Further investigation uncovered that Sumter had conspired with several other individuals in the Myrtle Beach area during 2017 to distribute cocaine and heroin on other occasions.
Hunt and Ortiz were prosecuted for their roles in covering up the overdose. Both men pled guilty and were sentenced to 21 and 27 months in federal prison, respectively.
This case is part of a concentrated effort to disrupt and dismantle the flow of illegal opioids and other narcotics in the Myrtle Beach area. By joining with local, state, and federal law enforcement partners, the United States Attorney’s Office will continue to aggressively prosecute those who deal in illegal narcotics, especially those individuals who distribute opioids that cause serious bodily injury or death to others.
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Multi-State Drug Smuggling Prison Ring DismantledRead the Press Release
PITTSBURGH, PA – A federal grand jury returned an indictment charging 27 defendants, many of whom are serving federal prison sentences or were recently released from federal prison sentences, with committing drug trafficking and money laundering crimes and with engaging in interstate travel and transmissions in aid of racketeering, United States Attorney Scott W. Brady announced today.
The 8-count Indictment, returned on January 18, 2019, charges 25 defendants with conspiring from January 2017 to January 2019 to distribute large volumes of drugs, including 5 kilograms or more of cocaine, 1 kilogram or more of heroin, fentanyl and a fentanyl analog, oxycodone, synthetic cannabinoids, and buprenorphine, commonly known as SubOxone.
The 25 defendants charged in Count 1 are Noah Landfried (age 34 of Moon Township), Mario Allen (age 40 at USP-Lee in Virginia), Larry Benavides (age 43 at the Clinton County Jail in Pennsylvania), Dashawn Burley (age 20 of Monroeville), Michel Cercone (age 45 of Sewickley), Ahmad Fletcher (age 26 at FCI-Gilmer in West Virginia), Michael S. Frawley (age 47 of Pittsburgh), Christopher Gahagan (age 35 of Ambridge), Richard Georgelos (age 34 of Santa Cruz, Arizona), Nicholas Giammichele (age 34 at FCI-Danbury in Connecticut), Robert Korbe (age 49 at FCI-Loretto in Pennsylvania), Ross Landfried (age 37 at USP-Lee in Virginia), Sterling Marshall (age 24 at USP-Lee in Virginia), Darren Martin (age 30 of Aliquippa), Harold Novick (age 38 of Ambridge), Paul Nuara (age 51 of Erie), Omari Patton (age 39 at FCI-Fort Dix in New Jersey), James Perry (age 52 of Ambridge), John Ramsey (age 47 at FCI-Ray Brook in New York), Donnell Steward (age 49 at FCI-Otisville in New York), Quoc Boa Trinh (age 39 at FCI-Otisville in New York), Terrell Williams (age 39 of Pitcairn), Richard Wood (age 39 of Pittsburgh), Shayla Yates (age 38 of Dinwiddie, Virginia), and Krystian Zarate (age 27 of Santa Cruz, Arizona).
"Thanks to the hard work of a dedicated team of investigators and prosecutors, we have dismantled one of the largest prison drug smuggling rings in the country," said U.S. Attorney Brady. "This drug trafficking organization, which consists largely of repeat offenders, peddled dangerous drugs in prisons and in our communities. If this type of conduct doesn’t demonstrate the need for tougher drug sentences, I don’t know what does."
As part of the drug trafficking scheme, narcotics were smuggled into federal prisons facilities by saturating paper (including into printed court opinions and greeting cards) and mailing the paper to inmates. The prisoners paid for the drugs through an elaborate money laundering scheme involving the inmates’ financial accounts at the prison. The indictment seeks forfeiture of those accounts, among other things. The Indictment charges 9 defendants with conspiring to launder drug trafficking proceeds from January 2017 to January 2019. The nine defendants charged in Count 2 are Noah Landfried, Allen, Benavides, Cercone, Fletcher, Ross Landfried, Marshall, Perry, and Yates.
The Indictment charges Angelo Williams (age 33 of FCI-Cumberland in Maryland) and Priyanka Kumar (age 32 of Potomac, Maryland) in Count 3 with engaging in interstate travel and transmissions in aid of racketeering from January 2017 to January 2019.
Counts 4, 6, and 7 of the Indictment charge Gahagan with distributing cocaine in September 2017, January 2018, and April 2018. Count 5 charges Benavides with possessing a fentanyl analog and synthetic cannabinoids with intent to distribute in November 2017. Count 8 charges Noah Landfried with distributing heroin in June 2018.
The Indictment seeks forfeiture of the proceeds of the crimes as well as property that was acquired with the proceeds or was used to commit the crimes.
The law provides for minimum and maximum sentences for the counts in the Indictment ranging from at least 10 years to up to life in prison for Count 1, up to 20 years for Count 2, up to 5 years for Count 3, and up to 30 years for each of Counts 4 through 8. Fines ranging from $250,000 to up to $20,000,000 may also be imposed. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Middlesex County, New Jersey, CPA Admits Filing False Tax ReturnRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, certified public accountant today admitted that he underreported his income on his personal tax return, avoiding paying more than $672,000 in taxes, U.S. Attorney Craig Carpenito announced.
Amit Govil, 58, of New Brunswick, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to Count 1 of an indictment charging him with making and subscribing a false tax return.According to documents filed in the case and statements made in court:
Govil, licensed as a CPA in New York and New Jersey, operated P&G Associates, a business headquartered in East Brunswick, New Jersey, providing risk management and audit services to community banks. Govil admitted that for the tax year 2010, he underreported and failed to report the gross receipts or sales of P&G Associates on Schedule C of his personal tax return, avoiding more than $672,000 in taxes.
The count of making and subscribing a false tax return carries a maximum potential penalty of three years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 13, 2019.
U.S. Attorney Carpenito credited special agents of the IRS, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Courtney A. Howard and Catherine R. Murphy of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Jeffrey Alberts Esq., New York
Mexican National Sentenced to Prison for Reentering the U.S. after Being Deported Multiple TimesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE LUIS MERINO HERNANDEZ, also known as “Jose Mendez,” 50, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to seven months of imprisonment for illegally reentering the U.S. after being deported. Merino Hernandez is a citizen of Mexico last residing in Waterbury.
According to court documents and statements made in court, in January 2005, Merino Hernandez was removed from the U.S. to Mexico after he sustained convictions in New York. He illegally reentered the U.S. and was encountered by ICE while he was incarcerated in New York in November 2010. He was again removed to Mexico in January 2011.
U.S. Customs and Border Patrol agents encountered Merino Hernandez in Tucson, Arizona, three times in May and June 2011. After the third encounter, he was charged in the District of Arizona with illegal reentry. He was convicted of the offense, sentenced to 120 days of imprisonment, and removed to Mexico in October 2011.
On June 9, 2018, Merino Hernandez was arrested in Waterbury and charged with four counts of risk of injury of a minor, one count of interfering/resisting arrest, one count of breach of peace and one count of assault 3rd degree. He has been detained since his arrest. On September 10, 2018, Merino Hernandez pleaded guilty in state court to one count of reckless endangerment in the first degree. He was sentenced to 11 months of imprisonment, execution suspended, and three years of probation.
On November 19, 2018, Merino Hernandez pleaded guilty in Hartford federal court to one count of reentry of a removed alien.
Merino Hernandez will be removed to Mexico when he completes his federal sentence.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), with the assistance of the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Mexican Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Mexican man who illegally returned to the United States after being deported was sentenced today to eight months in prison.
Alfonso Salazar-Ruiz, age 41, a citizen of Mexico illegally present in the United States and residing in Eagle Grove, Iowa, received the prison term after a December 5, 2018, guilty plea to one count of illegal reentry into the United States after having been convicted of a felony offense.
At the guilty plea, Salazar-Ruiz admitted he had previously been deported from the United States in October 2017 and illegally reentered the United States without the permission of the United States government. Salazar-Ruiz was found by immigration agents in October 2018 after he was charged in Cerro Gordo County, Iowa, with possession of methamphetamine, possession of drug paraphernalia, and interference with official acts. That case is still pending. Salazar-Ruiz provided a false name to law enforcement when he was arrested. Fingerprint analysis confirmed Salazar-Ruiz’s identity and prior removal from the United States. Salazar-Ruiz has prior convictions in Wright County, Iowa, for possession of methamphetamine in 2015, two convictions for driving while license under suspension in 2017, and one conviction for driving while barred, habitual offender in 2017. Salazar-Ruiz has also been convicted nine times for driving without a valid driver’s license.
Salazar-Ruiz was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Salazar-Ruiz was sentenced to eight months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Salazar-Ruiz is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3052-CJW.
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Methamphetamine Trafficking in the Fox Valley Region of Wisconsin Leads to Prison Sentences for Seven IndividualsRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that seven individuals received sentences for drug trafficking in the Fox Valley Region of Northeastern Wisconsin. The sentences, imposed by Chief United States District Judge William C. Griesbach, were the result of guilty pleas by the seven individuals between June 14, 2018 and September 18, 2018:
Defendant
Charge of Conviction
Sentencing date
Months of Prison
Months of Supervised Release
Robert Losse (35), formerly of Menasha, Wisconsin
Conspiracy to Distribute Methamphetamine
9/17/2018
180
84
Lee H.A. Carter (38) formerly of Menasha, Wisconsin
Conspiracy to Distribute Methamphetamine
10/2/2018
132
120
Anthony Cabrera-Santiago (31) formerly of Milwaukee, Wisconsin
Conspiracy to Distribute Methamphetamine
12/10/2018
120
96
Joshua Murphy (39) formerly of Bruce, Wisconsin
Conspiracy to Distribute Methamphetamine
9/7/2018
120
72
Andrew Thede (31) formerly of Appleton, Wisconsin;
Possession with Intent to Deliver Methamphetamine
12/11/2018
120
72
Craig Hannemann (35) formerly Menasha, Wisconsin
Possession with Intent to Deliver Methamphetamine
9/17/18
80
60
Zachary Dittmer (24) formerly of Fox Crossing, Wisconsin
Conspiracy to Distribute Methamphetamine
1/29/2019
42
72
The investigation revealed that between December 2016 and November 2017, the defendants conspired amongst themselves and with others, and to distribute a large quantity of methamphetamine in the Fox Valley. Evidence collected throughout the case suggests the amount of methamphetamine attributable to the group exceeded 200 pounds.
Numerous controlled purchases and multiple search warrants led to the recovery of controlled substances, packaging material, drug ledgers, firearms, and ammunition, including:
- 6,188.74 grams of methamphetamine
- 24.01 grams of heroin
- 131 prescription opioid pills
- $16,021.56 in US Currency
- $1,500.00 in “motion picture” currency
- Two .22 caliber handguns
- Two .40 caliber handguns
- Two 9mm handguns
- One .380 caliber handgun
Chief Judge Griesbach noted the seriousness of the crimes the defendants committed, remarking that the sale and distribution of “poison” that “took away people’s freedom” required stiff sentences as a deterrent to those who would consider engaging in this sort of activity. Chief Judge Griesbach also pointed out the defendants’ direct and indirect support of international drug cartels who perpetrated horrific violence against innocent citizens throughout the United States and elsewhere.
The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group-Drug Unit and the U.S. Drug Enforcement Administration, with assistance from the Appleton Police Department, Oshkosh Police Department, Waupaca County Sheriff’s Office, and Wisconsin State Crime Laboratory. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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Man Pleads Guilty in Pennsylvania to Trafficking Protected TurtlesRead the Press Release
David Sommers pleaded guilty today in the U.S. District Court for the Eastern District of Pennsylvania to trafficking protected turtles.
On July 10, 2018, a grand jury charged Sommers with smuggling a package containing diamondback terrapins to Canada and several Lacey Act offenses for mislabeling the package and trafficking turtles domestically. Sommers pleaded guilty to one felony count of violating the Lacey Act and agreed to forfeit nearly 3,500 diamondback terrapin hatchlings. The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits falsely labeling packages containing wildlife, fish, or plants.
Sommers acknowledged that he falsely labeled and trafficked turtles taken from their New Jersey marsh habitat from Aug. 7, 2014, through Oct. 24, 2017. According to the plea agreement, Sommers admitted to sending a package to Canada in 2014 containing 11 terrapin hatchlings. Sommers mislabeled the package as a book and underreported its value to avoid detection by customs authorities. Wildlife authorities from Environment and Climate Change Canada intercepted the package.
Sommers faces a maximum of five years’ imprisonment, three years of supervised release, a fine of up to $250,000, and restitution to New Jersey for the value of the turtles. The government agreed to dismiss the remaining charges against Sommers at sentencing, which is scheduled for May 15, 2019.
Diamondback terrapins (Malaclemys terrapin) are a semi-aquatic species of turtle native to brackish waters in eastern and southern United States. They are not found in the wild in Pennsylvania, where Sommers resided, but have a dwindling habitat range in neighboring New Jersey. The terrapins are prized in the reptile pet trade for their unique, diamond-shaped shell markings. The turtles are protected under New Jersey law and by an international treaty, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
The United States, Canada, and approximately 181 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Due to declining populations, CITES listed the diamondback terrapin as threatened in 2013, and New Jersey banned collecting, possessing, and transporting them in 2016.
The U.S. Fish and Wildlife Service conducted the investigation with assistance from the New Jersey Division of Fish and Wildlife. The government is represented by Trial Attorney Ryan Connors of the Environmental Crimes Section and Assistant U.S. Attorney Joan Burnes of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Madison Man Charged with Sexual Exploitation of ChildRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that a complaint has been filed against a Madison, Wisconsin resident for sexual exploitation of a child to produce a visual depiction. Bryan Rogers, 31, was charged in a complaint filed in U.S. District Court in Madison today with knowingly persuading a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and such visual depiction was transported from Tennessee to Wisconsin.
Rogers will make an initial appearance in federal court in Madison at 3:00 p.m. today.
The affidavit supporting the complaint alleges that Rogers came into contact with a minor in Tennessee through an online game who told him that she was being sexually assaulted. The affidavit alleges that Rogers persuaded the minor to engage in sexually explicit conduct, to make a video recording of the conduct, and send the video recording to him. The affidavit further alleges that Rogers traveled to Tennessee and returned to Wisconsin with the minor.
If convicted, Rogers faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison. The charge against him is the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Madison Police Department, Dane County Sheriff’s Office, and Monroe County (Tennessee) Sheriff’s Office. The prosecution of this case is being handled by Assistant U.S. Attorneys Julie Pfluger and Elizabeth Altman.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Laredo Man Gets Massive Sentence for Carjacking and Firearm OffenseRead the Press Release
LAREDO, Texas – A 34-year-old Laredoan has been ordered to federal prison for a carjacking and for possessing a firearm during a crime of violence which occurred in September 2017, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Rodrigo Garza-delaCruz pleaded guilty June 19, 2018.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Rodrigo Garza-delaCruz to serve a total of 300 months in federal prison - 120 months for the carjacking and another 180 months for the related firearm offense to be served consecutively. The sentence will be immediately followed by five years of supervised release.
“Protecting our community from the most violent offenders is at the core of the ATF mission,” said Milanowski. “Taking criminals off the street who prey on our citizens while using firearms will continue to remain an ATF priority.”
On Sept. 14, 2017, Garza-delaCruz entered a park in Laredo where he shot and killed one individual.
He then carjacked an 81-year-old man while fleeing the scene. He approached the man in his vehicle and threatened to kill him if he did not drive him to Mexico. Garza-delaCruz fled with the vehicle before officers tracked him down to a residence in Laredo.
Garza-delaCruz engaged in a three-hour standoff with SWAT and a hostage negotiations team before he was ultimately apprehended.
He is also facing related charges in Webb County.
Garza-delaCruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The ATF and the Laredo Police Department conducted the investigation. Assistant U.S. Attorneys April Ayers-Perez and Alfredo DeLaRosa prosecuted the case.
Lansing Man Sentenced to More Than 13 Years in Prison for International Identity Theft and Tax Refund Fraud SchemeRead the Press Release
GRAND RAPIDS, MICHIGAN — On Tuesday, January 29, 2019, Chief U.S. District Judge Robert J. Jonker sentenced Oghenevwakpo Igboba to a total of 162 months’ in federal prison to be followed by three years’ supervised release, $514,823 in restitution, a money judgment of $48,205, and $1800 in court assessments.
In September 2018, a jury found Igboba guilty of one count of conspiracy to defraud the United States, one count of wire fraud, eight counts of making a false claim to the United States, and eight counts of aggravated identity theft. Igboba used other individuals’ personally identifying information to access tax information using an Internal Revenue Service website. He then took that sensitive tax and personal information and used it to file false federal income tax returns directing the IRS to pay fraudulent refunds to bank accounts he controlled.
"My office will seek appropriate punishment for those who undermine the functioning of Internal Revenue Service systems and steal refunds owed to other hard-working Americans," said U.S. Attorney Andrew Byerly Birge. "This crime harms the individual tax payers whose identities were stolen in connection with the fraud, but it also harms all Americans who place their trust in the proper functioning of the tax system and expect an orderly and prompt payment of tax refunds. This defendant stole from all of us."
By filing Form 1040s before the real taxpayers, Igboba managed to direct hundreds of thousands of dollars to himself. IRS systems stopped many of the stolen returns from being issued, but Igboba personally received at least $57,000 as a result of his crime. He used personally identifying information to access tax information for more than 100 individuals through IRS systems. The evidence introduced at trial demonstrated that the defendant conspired with numerous individuals, both in the United States and abroad, to compile personal information and direct the tax returns to numerous bank accounts.
"The defendant’s theft of hundreds of tax transcripts from the IRS in furtherance of a scheme to enrich himself at the expense of the American people is a grave violation of federal law and cannot be tolerated under any circumstances," said J. Russell George, Treasury Inspector General for Tax Administration. "I am proud of our investigators, including those in our cybercrimes division, for cracking this case, their counterparts at IRS Criminal Investigation, and the U.S. Attorney’s office for helping us bring this individual to justice."
Special Agent in Charge Manny Muriel, IRS - Criminal Investigation, stated, "This sentencing demonstrates that combating identity theft remains a priority for the IRS. IRS will not tolerate stealing the identities of innocent taxpayers. Stealing from the government and its taxpayers is not acceptable and with the start of the tax filing season, you can rest assured that IRS will be vigilant and work to protect taxpayers’ identities this tax season."
The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA) and IRS - Criminal Investigation. Assistant United States Attorneys Sally J. Berens and Christopher M. O’Connor prosecuted the case.
END
La Crosse Woman Sentenced to 130 Months for Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Roberta Draheim, 51, La Crosse, Wisconsin, was sentenced on Friday, February 1 by U.S. District Judge William M. Conley to 130 months in federal prison for conspiring to distribute methamphetamine. Draheim pleaded guilty to this charge on October 23, 2018.
Draheim was responsible for the shipment of more than 35 packages of methamphetamine from California to the La Crosse area over a 15-month period. Many of those packages consisted of multiple pound-level quantities of methamphetamine. During sentencing, Judge Conley stated that Draheim used her friends in California to obtain high quality methamphetamine at a low cost so she could supply people in the La Crosse area; she was feeding addictions. While this was Draheim’s first criminal conviction in over 20 years, the court found that she was an organizer of the conspiracy and sentenced her accordingly.
Draheim and five other individuals were charged for their roles in this methamphetamine distribution conspiracy. Five of the six individuals charged in the indictment have pleaded guilty; Draheim is the second to be sentenced.
The charge against Draheim was the result of an investigation conducted by the Drug Enforcement Administration in Wisconsin and California; Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; La Crosse Police Department; Prairie du Chien Police Department; and Dane County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Kaukauna Man Sentenced for Federal Wildlife ViolationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 31, 2019, Christopher J. Hietpas (age: 35), of Kaukauna, Wisconsin, entered a guilty plea and was sentenced for violating Title 16 United States Code, Sections 3372(a)(2)(A) and 3373(d)(2), of “the Lacey Act.”
According to court documents, in September of 2015, Hietpas travelled to Saskatchewan, Canada, purportedly to hunt on First Nation Lands located within the province. Hietpas and the others in his hunting party employed the use of Little Pine First Nation guides, which would have allowed Hietpas and the others to legally hunt Mule Deer on First Nation Lands. Geolocation evidence taken from a cellular telephone, however, showed that Hietpas shot and killed two Mule Deer approximately 175 miles from the nearest First Nation boundary, in violation of the Saskatchewan Wildlife Act. Hietpas later acknowledged that he was not hunting on First Nation Lands when he shot the Mule Deer. The two Mule Deer antlers and capes (skin from the nose to shoulder) were then exported from Saskatchewan in violation of the Lacey Act, ultimately ending up at Hietpas’ residence in Kaukauna.
Federal Magistrate Judge James R. Sickel ordered Hietpas to pay a $5,000 fine to the “Lacey Act Reward Fund,” as well as restitution in the amount of $5,600 CAD (Canadian dollars) to the Province of Saskatchewan’s “SaskTip” program. Further, the Mule Deer mounts were ordered forfeited and will be turned over to the Saskatchewan Ministry of Environment. Finally, Hietpas was also ordered to forfeit his hunting rifle and scope used to illegally kill the animals.
The case was investigated by the United States Fish and Wildlife Service and the Saskatchewan Ministry of Environment. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Iowa Sex Offender Sentenced to 15 Years for Attempting to Produce Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – An Ames, Iowa sex offender was sentenced in federal court today on child sexual exploitation charges.
John Jordan Lundberg, 31, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. The court also sentenced Lundberg to 15 years of supervised release following incarceration.
On Sept. 24, 2018, Lundberg pleaded guilty to attempting to produce child pornography. Lundberg was previously convicted on Sept. 15, 2017, for enticement of a minor for indecent purposes. Lundberg, who was granted a deferred judgment and placed on probation for three years, was arrested on Oct. 10, 2016 at the Meskwaki Bingo Casino during an undercover operation when he responded to a Craigslist advertisement and arranged a sexual encounter with a (fictitious) 15-year-old female.
According to court documents, just weeks prior to pleading guilty in Iowa to enticing a minor, Lundberg began committing the federal offense in this case. Lundberg was arrested in this case for almost identical behavior just 44 days after pleading guilty and being placed on probation for the Iowa matter.
Lundberg admitted that he responded on Sept. 3, 2017, to an online advertisement that was posted by an undercover Boone County, Mo., Sheriff’s Department detective in an effort to seek out potential sexual predators. The undercover officer posed as a mother offering her 13-year-old daughter for sex. The undercover officer also posed as the 13-year-old daughter, and Lundberg communicated with the “daughter” via text messages.
Lundberg admitted that he sent the “daughter” sexually explicit photos and video of himself as well as adult and child pornography. Lundberg also admitted that he encouraged the “daughter” to send him nude photos of herself.
In an e-mail to the undercover detective, Lundberg described himself as “a fan of incest.” He claimed to have begun sexually molesting his niece when she was 8 years old, and to have had sexual intercourse with her when she was 12 years old.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County, Mo., Sheriff’s 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."In-Home Caregiver Pleads Guilty in Elder Fraud CaseRead the Press Release
NEWPORT NEWS, Va. – A Hampton woman pleaded guilty today to aggravated identity theft for stealing over $21,000 from an elderly client.
According to court documents, Sandra Payne, 47, was employed to provide in-home care for an elderly client in Newport News. During the course of her employment at that residence, Payne gained access to credit and debit card account numbers belonging to the family of her client. She used that data, without lawful authority or the knowledge and consent of the account owners, to purchase goods and services in excess of $21,000 at various merchants in the Tidewater area.
Payne pleaded guilty to aggravated identity theft and faces a mandatory minimum sentence of two years in prison when sentenced on May 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
In 2018 the Department of Justice and its law enforcement partners coordinated the largest sweep of elder fraud cases in history. The cases involved more than 250 defendants from around the globe who victimized more than a 1 million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Megan M. Cowles and Special Assistant U.S. Attorney Chad W. McHenry are prosecuting 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. 4:18-cr-98.
Illegal Alien Sentenced for Using Another Person’s Social Security NumberRead the Press Release
A Guatemalan man who used another person’s social security number to complete employment paperwork was sentenced today to five months in federal prison.
Adner Toj-Velasquez, age 35, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a November 26, 2018, jury verdict finding him guilty of one count of misuse of a social security number.
The evidence at trial showed that on February 8, 2015, Toj-Velasquez used someone else’s social security number on employment and tax documents when applying for work in Luana, Iowa. On the employment form, Toj-Velasquez falsely claimed to be a United States citizen.
Toj-Velasquez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Toj-Velasquez was sentenced to five months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Toj-Velasquez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1036-CJW. Follow us on Twitter @USAO_NDIA.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported was sentenced today to three months in federal prison.
Domingo Pacheco-Poo, age 44, a citizen of Guatemala illegally present in the United States and residing in Mount Pleasant, Iowa, received the prison term after a December 10, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Pacheco-Poo admitted he had previously been deported from the United States in July 2012 and September 2012 and illegally reentered the United States without the permission of the United States government. Pacheco-Poo was convicted in Arizona in August 2012 of illegal entry into the United States. Pacheco-Poo was also given a voluntary return to Mexico in April 2006 where he used an alias and claimed to be a Mexican citizen. Pacheco-Poo was found by immigration officials in November 2018 when he unexpectedly accompanied his family to the immigration office in Cedar Rapids, Iowa, where the other members of his family were required to report. Fingerprints confirmed Pacheco-Poo’s identity and his prior removal.
Pacheco-Poo, under an alias name, also used fraudulent identification documents and a Social Security number issued to another person to complete employment paperwork in August 2014 at a business in Mount Pleasant, Iowa. Pacheco-Poo failed to report to work in May 2018 when immigration officials executed a search warrant at that business and arrested other illegal aliens.
Pacheco-Poo was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Pacheco-Poo was sentenced to 92 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Pacheco-Poo is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-109-CJW.
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Four Men Convicted in String of Robberies of Auto Parts Stores Throughout Twin Cities MetroRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of TONY LENDELL REED, 32, of Memphis, Tennessee, for robbery. Following a five-day trial before U.S. District Judge Joan N. Ericksen, in Minneapolis, Minnesota, a federal jury found REED guilty on February 1, 2019, of six counts of interference with commerce by robbery, known as the Hobbs Act. The Hobbs Act prohibits actual or attempted robbery affecting interstate or foreign commerce “in any way or degree.”
Co-defendant ORLANDO LORENZO HARRIS, 36, of Minneapolis, Minnesota, pleaded guilty on March 22, 2018, to two counts of Hobbs Act robbery.
Co-defendant DERF REGLAN RAHINE REED, 46, of Chicago, Illinois, pleaded guilty on November 13, 2018, to one count of Hobbs Act robbery.
Co-defendant TYRELL DANDRE CAMPBELL, 24, of Minneapolis, Minnesota, pleaded guilty on November 27, 2018, to one count of Hobbs Act robbery.
As proven at trial and in documents filed in court, on six separate occasions, REED and his co-defendants robbed auto parts stores throughout the Twin Cities metro region. During each of the robberies, the defendants displayed what appeared to the victims to be a gun, threatened the victims, and demanded money. REED and his co-defendants also restrained the employees of the stores they robbed, using zip ties to bind the victims’ wrists and ankles.
United States Attorney Erica H. MacDonald thanked the Minneapolis Division, Chicago Division, and Memphis Division of the FBI, the Minneapolis Police Department, the Crystal Police Department, the Columbia Heights Police Department, the White Bear Lake Police Department, the Anoka County Sheriff’s Office, and the Holly Springs, Mississippi Police Department for their work in investigating the robberies.
United States Attorney MacDonald further thanked Assistant United States Attorneys LeeAnn K. Bell and Ruth Shnider who prosecuted the case.
Defendant Information:
TONY LENDELL REED, 32
Memphis, Tennessee
Convicted:
- Interference with Commerce by Robbery (Hobbs Act), 6 counts
ORLANDO LORENZO HARRIS, 36
Minneapolis, Minnesota
Convicted:
- Interference with Commerce by Robbery (Hobbs Act), 2 counts
DERF REGLAN RAHINE REED, 46
Chicago, Illinois
Convicted:
- Interference with Commerce by Robbery (Hobbs Act), 1 count
TYRELL DANDRE CAMPBELL, 24
Minneapolis, Minnesota
Convicted:
- Interference with Commerce by Robbery (Hobbs Act), 1 count
Additional news available on our website.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Teller Pleads Guilty to Embezzling $125,000Read the Press Release
KANSAS CITY, KAN. – A former bank teller in Leavenworth pleaded guilty Monday to embezzling more than $125,000, U.S. Attorney Stephen McAllister said.
Charles Lee Staples, 42, Leavenworth, Kan., pleaded guilty to one count of embezzlement by a bank employee. In his plea, he admitted the crime occurred while he was a teller at Mutual Savings Association in Leavenworth. An audit revealed that Staples took the money from his teller drawer. To cover up the crime, he made false entries in bank reports.
Sentencing is set for April 22. Staples agreed to pay back the full amount of the theft. Both parties agreed to recommend a sentence of three years on supervised release.
McAllister commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Former Jackson County Kentucky Treasurer Pleads Guilty to Identity Theft and Wire Fraud SchemeRead the Press Release
The former treasurer of Jackson County, Kentucky, pleaded guilty today to devising a scheme to defraud the Jackson County Fiscal Court of over $160,000 and to misusing the identity of a Jackson County employee to facilitate her theft.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan for the Eastern District of Kentucky, and Special Agent in Charge James (Robert) Brown Jr. of the FBI’s Louisville, Kentucky Field Division and Commissioner Richard Sanders of the Kentucky State Police, made the announcement.
Beth N. Sallee, 38, of McKee, Kentucky, pleaded guilty to one count of aggravated identity theft and to one count of wire fraud. Sallee will be sentenced on June 18, 2019 before U.S. District Court Judge Claria Horn Boom for the Eastern District of Kentucky.
According to admissions made in connection with her guilty plea, Sallee admitted that beginning in 2013, she misused her position to write a number of checks, totaling approximately $161,808.23, payable to herself without the approval of the Jackson County Fiscal Court. Sallee deposited these checks into her own personal checking account or for cash. The unauthorized checks drew on various Jackson County Fiscal Court accounts, including the Department of Emergency Services grant, payroll, and general fund accounts. To enable her scheme, Sallee forged the signature of other Jackson County employees on unauthorized checks without their knowledge or permission. She later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with white-out, and requesting the removal of check images from bank statements that were to be given to an auditor.
The investigation was conducted by the FBI and the Kentucky State Police. The case is being prosecuted by Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Andrew T. Boone of the Eastern District of Kentucky.
Former Echo Housing Corporation executive director indicted on three counts of theftRead the Press Release
Evansville –United States Attorney Josh J. Minkler announced today that an Evansville, Indiana woman who worked as the Executive Director at Echo Housing Corporation, was indicted on three counts of theft concerning programs receiving federal funds. Stephanie L. TenBarge, 71, Evansville, was arrested today and will appear before a federal magistrate judge for her initial appearance.
Echo Housing Corporation is a non-profit organization based in Evansville. Echo’s mission is to create and sustain safe and affordable housing, provide supportive services, and promote community development for homeless men, women, children, and veterans.
“The public deserves better from officials in positions of trust,” said Minkler. “When public officials line their pockets with taxpayer dollars intended for homeless men, women, children, and veterans, they should expect the scrutiny of state and federal law enforcement and the necessarily harsh consequences that follow. The Evansville community deserves better from the public officials they trust with taxpayer dollars. This office intends to hold those who abuse their position of trust accountable.”
TenBarge served as Executive Director of Echo Housing Corporation and in that role had the primary responsibilities of bookkeeping, balancing bank statements, and preparing finance reports and records for Echo’s Board of Directors to approve. TenBarge maintained and controlled Echo’s checking accounts and had the ability to direct funds from the organization’s accounts to herself and other individuals.
From January 1, 2015 through December 31, 2017, TenBarge is alleged to have embezzled funds from Echo Housing Corporation by making unauthorized payments to herself, using Echo funds to pay for personal goods, services and property taxes, and issuing unauthorized payroll checks to herself. During this time period, Echo received federal funds from the U.S. Department of Housing and Urban Development, the U.S. Department of Justice, and the U.S. Department of Labor.
This investigation was a collaborative effort between the Federal Bureau of Investigation, Evansville Police Department, U.S. Department of Housing and Urban Development Office of Inspector General, Indiana State Board of Accounts, and United States Secret Service.
“The alleged actions of Mrs. TenBarge, using her official position for personal gain, grossly undermines the honest work being done every day by public officials,” said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. “Working with our law enforcement partners to investigate public officials who commit federal crimes and victimize the people they should be serving, is one of the FBI's highest criminal priorities.”
“The actions of Mrs. TenBarge had a direct impact on those who rely on ECHO Housing funds as a means of accessing affordable housing,” stated Billy Bolin, Evansville Police Chief. “Throughout this investigation, we remained committed to achieving justice for everyone involved in this case. The diligence by Financial Crimes Unit investigators and our federal law enforcement partners has led to the arrest of Mrs. TenBarge. This investigation and subsequent arrest is a reminder that there are no victimless crimes. To our federal law enforcement partners, we say thank you for your ongoing support of our local agencies.”
“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms,” said Brad Geary, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General. “It is our continuing core mission to work with our Federal law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.”
“This case illustrates the importance of having effective internal controls that detect and mitigate fraud risks,” said State Examiner Paul Joyce on behalf of the State Board of Accounts. “Whether it involves a governmental unit or a nonprofit administering public funds, we take fraud and misappropriation cases seriously. These cases are also good illustrations of the importance of our collaboration with law enforcement and prosecutors to hold these individuals accountable for violating the public trust.”
“A violation of public trust deserves consequence,” stated Paul Dvorak, Special Agent in Charge of the U.S. Secret Service Indianapolis Field Office. “Mrs. TenBarge abused this trust by using public funds for personal use. The collaborative effort between the Evansville Police Department and federal agencies resulting in Mrs. TenBarge’s arrest serves as a reminder that breach of public trust and theft will be prosecuted.”
According to Assistant United States Attorney Kyle Sawa, who is prosecuting this case for the government, TenBarge faces up to 10 years for each count if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3.
Former East Bay Resident Sentenced to over 7 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
OAKLAND – Ray Lee Howard was sentenced today to 92 months in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Haywood S. Gilliam, Jr., U.S. District Judge, handed down the sentence.
Howard, 47, previously of Oakland, pleaded guilty to the charge on October 23, 2018. According to his plea agreement, Howard admitted that on July 20, 2018, he brought a loaded semi-automatic assault rifle into the residence of a woman with whom, pursuant to a protective order, he was prohibited from having contact. Howard also was not permitted to possess firearms and ammunition because he previously had been convicted of felonies. The assault rifle included a magazine loaded with nine rounds of .223 caliber bullets. Howard acknowledged that he concealed the rifle and magazine in a black fabric guitar case that he brought into the woman’s home.
On August 23, 2018, a federal grand jury indicted Howard charging him with one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Howard pleaded guilty to the charge.
Judge Gilliam also sentenced the defendant to a three-year period of supervised release to follow the prison term. The defendant currently is in custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Thomas Green is prosecuting the case with the assistance of Noble Hughes and Elyza Delgado. The prosecution is the result of an investigation by the FBI.
Former Director of Pharmacy Services for Children’s Hospital and Medical Center Pleads Guilty to Wire FraudRead the Press Release
United States Attorney Joe Kelly announced today that Lisa Kwapniowski, age 49, of Omaha, Nebraska, pleaded guilty to committing wire fraud, in violation of Title 18, United States Code, Section 1343. Kwapniowski pleaded guilty before Senior United States District Court Judge Laurie Smith Camp. Kwapniowski is scheduled to be sentenced on April 29, 2019 by Senior Judge Smith Camp. Wire Fraud is punishable by up to 20 years’ imprisonment and a $250,000 fine. As part of her sentence, Kwapniowski will be ordered to pay restitution in the amount of $4,622,234, minus any payments made prior to sentencing. Kwapniowski has also agreed to forfeit her interest in a residence she owns in Elkhorn, Nebraska.
An Information filed in the United States District Court for the District of Nebraska alleges that from 2010 to 2018, Kwapniowski, the former Director of Pharmacy Services for Children’s Hospital and Medical Center (“Children’s Hospital”) located in Omaha, Nebraska, defrauded Children’s Hospital out of more than $4,622,234. Beginning sometime prior to 2010, Kwapniowski submitted to Children’s Hospital fraudulent invoices from legitimate pharmaceutical suppliers. Kwapniowski then submitted reimbursement requests utilizing fraudulent invoices from a company she fraudulently created. In early 2012, Kwapniowski set up a business she named RxSynergy. Kwapniowski began to submit fraudulent invoices from RxSynergy to Children’s Hospital for payment. The invoices purported to be for pharmaceuticals and supplies, however, neither RxSynergy nor Kwapniowski ever provided any goods to Children’s Hospital in relation to the invoices. A number of the RxSynergy invoices were for a drug called Broxcilam, which was not a real drug. Kwapniowski fraudulently invoiced Children’s Hospital at least 227 times between 2012 and 2018.
The Information further alleges that between January 2012 and November 2013 Kwapniowski submitted fraudulent invoices to Children’s Hospital that appeared to come from PharMedium, a legitimate pharmaceutical vendor. Kwapniowski created fraudulent invoices directed to Children’s Hospital that appeared to come from PharMedium. Using a PayPal vendor’s account Kwapniowski had created using the name Advantage RX, Kwapniowski would utilize PayPal’s website to make a payment to the Advantage RX PayPal account, using a Children’s Hospital corporate credit card. Kwapniowski would submit to Children’s Hospital the fraudulent PharMedium invoices along with an internal approval form, which would act as the justification for Children’s Hospital to pay the outstanding corporate credit card bill. Children’s Hospital would pay the credit card company directly. Kwapniowski then transferred funds from the fraudulent Advantage RX PayPal account to her personal bank account.
This case was investigated by the Federal Bureau of Investigation.
Former Army Soldier Sentenced to 12 Years in Federal Prison for Production of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Frank Crawford III, age 22, formerly of Virginia, to 12 years in federal prison, followed by 10 years of supervised release, for receipt of child pornography in which he enticed a minor victim to send him sexually explicit photos of herself. Upon his release from prison, Crawford must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Calvert County Sheriff Mike Evans.
According to his plea agreement, over a period of four to five days, Crawford, then 21 years old and enlisted in the U.S. Army, had sexualized discussions with a 14-year-old Maryland victim. On May 4, 2017, Crawford persuaded the victim to send him sexually explicit images of herself. Crawford admitted that he and the victim used an interactive live chat service to engage in sexually explicit conduct. Crawford further admitted that he knew the victim was a minor.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Calvert County Sheriff’s Office for their work in this investigation and thanked Assistant U.S. Attorney Joseph R. Baldwin, who is prosecuting the case.
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Federal Jury Convicts Last Man Standing in 29-Defendant Organized Crime Case in Myrtle BeachRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that John Henry Johnson, age 68, of Myrtle Beach, South Carolina, was convicted by a federal jury after three days of trial during the lapse in government appropriations. The jury found Johnson guilty of one count of conspiracy to distribute heroin and two counts of the attempted distribution of heroin in January and February of 2017. Johnson faces up to 30 years in federal prison as a result of these convictions.
The evidence presented at trial revealed that the DEA and the FBI, working in conjunction with state and local law enforcement, began investigating a drug trafficking organization whose members operated in Myrtle Beach, North Myrtle Beach, Atlantic Beach, and Florence, South Carolina, and in southern North Carolina. Some members of this organization were members of a national criminal gang that sells drugs and firearms, and commits violence to generate illegal revenue. These gang members worked with other non-gang members of the drug trafficking organization, including Johnson, to enhance profits they made from the sale of heroin, cocaine, fentanyl, and marijuana.
Targeting drug distribution activity and related violent crime in the Myrtle Beach area, federal and state law enforcement agencies engaged in an investigation lasting over two years and used wire and electronic intercepts and other investigative techniques to identify members of this organization, including Johnson.
The evidence showed that Johnson was a mid-level heroin distributor who purchased heroin and fentanyl from the organization’s main source of supply for drugs. During his participation in the organization, Johnson sold thousands of dollars’ worth of heroin and fentanyl to his customers, sometimes meeting his supplier in the parking lot of drug rehabilitation facilities to buy heroin and fentanyl to sell to his customers.
The investigation was conducted by the FBI, the DEA, the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, and the Georgetown Police Department. Assistant U.S. Attorney Justin Holloway from the Florence office and Assistant U.S. Attorney Andy Moorman from the Greenville office prosecuted the case.
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Federal Drug Trafficking Prosecutions UpdateRead the Press Release
SIOUX FALLS, S.D. – United States Attorney Ron Parsons announced additional case developments in federal drug prosecutions occurring in approximately the past six weeks. During any lapse in Congressional appropriations, the U.S. Department of Justice has contingency procedures to ensure that the Department’s essential public safety and national security missions continue unabated. As a result, the U.S. Attorney’s Office and federal investigative agencies continued to work full-time alongside their state, local, and tribal partners on all criminal cases and prosecutions throughout the partial federal government shutdown, which now has ended.
“The men and women at every level of law enforcement working here in South Dakota should be commended for their exceptional efforts in helping to bring drug trafficking offenders to justice and take these deadly poisons off the streets,” said U.S. Attorney Parsons. “The high quality of investigative police work done by these professionals continues to produce outstanding results.”
In approximately the past six weeks, the following investigations, involving 42 criminal defendants, have resulted in previously unannounced indictments, arraignments, guilty pleas, or prison sentences in drug-related prosecutions by the U.S. Attorney’s Office for the District of South Dakota. In the cases listed below, 33 defendants were involved in trafficking methamphetamine, and at least 11 defendants were involved in trafficking opioids such as heroin and fentanyl.
FEDERAL INDICTMENTS
Shannon Lee Coon. On December 11, 2018, Shannon Lee Coon (age 42) of Sioux Falls, SD, was arraigned before U.S. Magistrate Judge Veronica L. Duffy on a federal charge for conspiracy to distribute 500 grams or more of methamphetamine and pleaded not guilty to the Indictment. The charge is merely an accusation and Coon is presumed innocent until and unless proven guilty.
Curtis Samuel Webb and Roderick Leon Scott. Curtis Samuel Webb, also known as Corey Shawn Smith (age 42) and Roderick Leon Scott (age 43) both of Sioux Falls, SD, were indicted for conspiracy to distribute 500 grams or more of methamphetamine. On December 14, 2018, Webb was arraigned before U.S. Magistrate Judge Veronica L. Duffy and pleaded not guilty to the Indictment. On December 18, 2018, Scott was arraigned before Judge Duffy and also pleaded not guilty to the Indictment. Both Webb and Scott were remanded to the custody of the U.S. Marshals. These charges are merely accusations and Webb and Scott are presumed innocent until and unless proven guilty.
Jess Brian Ducheneaux. On December 18, 2018, Jess Brian Ducheneaux (age 56) of Eagle Butte, SD, was arraigned before U.S. Magistrate Judge Mark A. Moreno on a federal charge of Conspiracy to Distribute a Controlled Substance (methamphetamine). Ducheneaux pleaded not guilty and was remanded to the custody of the U.S. Marshals. On January 23, 2019, a Superseding Indictment was filed charging Ducheneaux with conspiracy to distribute methamphetamine, and adding additional charges of maintaining a drug-involved premises in Ridgeview, SD, for the purpose of distributing methamphetamine, distributing it to a person under the age of 21, possession of methamphetamine, and being a prohibited person in possession of a firearm. These charges are merely accusations and Ducheneaux is presumed innocent until and unless proven guilty.
Michael Anthony Williams. On December 18, 2018, Michael Anthony Williams (age 32) of Sioux Falls, SD, was arraigned before U.S. Magistrate Judge Veronica L. Duffy for conspiracy to distribute 500 grams or more of methamphetamine. He pleaded not guilty to the Indictment. The maximum penalty is a mandatory 10 years in federal prison up to life. Williams was remanded to the custody of the U.S. Marshals. The charge is merely an accusation and Williams is presumed innocent until and unless proven guilty.
Felon Marie Bad Milk. On December 18, 2018, a federal indictment was filed against Felon Marie Bad Milk, a/k/a Fallon (age 34), of Manderson, SD, charging her with False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud (hydrocodone, a prescription opioid). She was arraigned before U.S. Magistrate Judge Daneta Wollmann on December 21, 2018, and pleaded not guilty to the Indictment. These charges are merely accusations and Bad Milk is presumed innocent until and unless proven guilty.
Michael Carey and Robin Wallach. Husband and wife Michael David Carey (age 57) and Robin Lianne Wallach (age 55), both of Rapid City, SD, were federally indicted for Conspiracy to Distribute a Controlled Substance (methamphetamine). Carey was additionally charged with Possession with Intent to Distribute a Controlled Substance (methamphetamine). On December 21, 2018, Wallach appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment. At his arraignment before Judge Wollmann in November, Carey also pleaded not guilty to the Indictment. These charges are merely accusations and Carey and Wallach are presumed innocent until and unless proven guilty.
Michael Bettelyoun. On January 2, 2019, Michael Bettelyoun (age 25) of Rapid City, SD, was arraigned before U.S. Magistrate Judge Mark A. Moreno on federal charges for Conspiracy to Distribute a Controlled Substance (methamphetamine) on the Rosebud Indian Reservation, as well as Possession of Ammunition by a Prohibited Person. He pleaded not guilty to the Indictment and was remanded to the custody of the U.S. Marshals. These charges are merely accusations and Bettelyoun is presumed innocent until and unless proven guilty.
Cole Emery and Shelbyjo Two Eagle, a/k/a Shelbyjo Larvie. On January 2, 2019, Cole Emery (age 24) and Shelbyjo Two Eagle, also known as Shelbyjo Larvie (age 24) both of Mission, SD, were arraigned before U.S. Magistrate Judge Mark A. Moreno on federal charges for conspiracy to distribute methamphetamine on the Rosebud Indian Reservation. The Indictment specifically alleges that Emery conspired with others to possess with intent to distribute 500 grams or more of methamphetamine, while Two Eagle conspired with others to possess with intent to distribute 50 grams or more of methamphetamine. The Indictment further alleges that Two Eagle, being an unlawful user of and addicted to a controlled substance, unlawfully possessed 9mm ammunition. Both pleaded not guilty. They were remanded to the custody of the U.S. Marshals. These charges are merely accusations and Emery and Two Eagle are presumed innocent until and unless proven guilty.
Justin Robert Christensen; Nicholas Scott Flier; Paris Bryn Koller; and Brandon Alan Watters. On January 8, 2019, Justin Robert Christensen (age 30) of Sioux Falls, SD; Nicholas Scott Flier (age 25) of Valley Springs, SD; Paris Bryn Koller (age 25) address unknown; and Brandon Alan Watters (age 24) of Sioux Falls, SD, were indicted in federal court for a conspiracy to distribute 500 grams or more of methamphetamine. These charges are merely accusations and Christensen, Flier, Koller, and Watters are presumed innocent until and unless proven guilty.
Samuel Patrick O’Rourke. On January 9, 2019, Samuel Patrick O’Rourke (age 36) of Rapid City, SD, was arraigned in federal court by U.S. Magistrate Judge Daneta Wollmann on one count of Conspiracy to Distribute a Controlled Substance (methamphetamine) and two counts of Distribution of a Controlled Substance (methamphetamine). He pleaded not guilty to the Indictment and was remanded to the custody of the U.S. Marshals. These charges are merely accusations and O’Rourke is presumed innocent until and unless proven guilty.
Ian Royal Bjornstad. On January 15, 2019, Ian Royal Bjornstad (age 41) of Carlsbad, CA, was arraigned in federal court before U.S. Magistrate Judge Veronica L. Duffy in Sioux Falls on a charge for distribution of heroin resulting in death. He pleaded not guilty to the Indictment and was remanded to the custody of the U.S. Marshals. The charge is merely an accusation and Bjornstad is presumed innocent until and unless proven guilty.
Larry Gerard Norquist. On January 23, 2019, a federal indictment was filed against Larry Gerard Norquist (age 54) of Rapid City, SD, charging him with two counts of Conspiracy to Distribute a Controlled Substance (methamphetamine and heroin). On January 25, 2019, he was arraigned before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment. He was remanded to the custody of the U.S. Marshals. These charges are merely accusations and Norquist is presumed innocent until and unless proven guilty.
Dana Faulkner, a/k/a “Diablo.” On January 23, 2019, a federal Superseding Indictment was filed against Dana Faulkner, also known as “Diablo” (age 40), of Aurora, CO, charging him with Conspiracy to Distribute Controlled Substances (methamphetamine, heroin, and cocaine) in the Rapid City and Northern Black Hills area, Use of Firearm in Furtherance of Drug Trafficking Crime, Possession of a Firearm by a Prohibited Person, and Obstruction of Justice. Faulkner remains in the custody of the U.S. Marshals. These charges are merely accusations and Faulkner is presumed innocent until and unless proven guilty.
Jocelyn Chasing Hawk. On January 23, 2019, Jocelyn Chasing Hawk, also known as Jocelyn Bear Eagle (age 37) of Eagle Butte, SD, was indicted for Conspiracy to Distribute a Controlled Substance (methamphetamine) on the Cheyenne River Indian Reservation. The maximum penalty upon conviction is up to life in federal prison. The Indictment alleges that Chasing Hawk intentionally combined and conspired with others to distribute and possess with intent to distribute 500 grams or more of meth. The charge is merely an accusation and Chasing Hawk is presumed innocent until and unless proven guilty.
Clinton Lewis Haukaas. On January 23, 2019, Clinton Lewis Haukaas (age 39) of Rosebud, SD, was arraigned before U.S. Magistrate Judge Mark A. Moreno on federal charges for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person. The Superseding Indictment alleges that Haukaas knowingly and intentionally combined, conspired, and confederated with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The Superseding Indictment also alleges that on or about June 6, 2018, Haukaas, then being an unlawful user of and addicted to a controlled substance, knowingly possessed a firearm, which had been shipped and transported in interstate commerce. These charges are merely accusations and Haukaas is presumed innocent until and unless proven guilty.
Arlene Siers. On January 23, 2019, Arlene Siers (age 30) of Mission, SD, was indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of a Firearm by a Prohibited Person. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2019, and pleaded not guilty to the Indictment. The Indictment alleges that Siers, knowingly and intentionally, combined, conspired, confederated, and agreed with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The Indictment further alleges that on August 31, 2018, Siers possessed a firearm in furtherance of a drug trafficking crime and that while she possessed the firearm, she was a user of and addicted to a controlled substance. The maximum penalty upon conviction is up to life in federal prison and/or a $10 million fine and 5 years of supervised release. These charges are merely accusations and Siers is presumed innocent until and unless proven guilty.
Nathan Reuer. On January 24, 2019, a federal criminal complaint was filed against Nathan Reuer (age 25) of Rapid City, SD, charging him with Importation of a Controlled Substance and Possession with Intent to Distribute a Controlled Substance (methamphetamine, fentanyl and heroin). These charges are merely accusations and Reuer is presumed innocent until and unless proven guilty.
Sheri Rademacher. On January 29, 2019, Sheri Rademacher, also known as Sherri Lynn Whiting (age 44) of Britton, SD, was arraigned before U.S. Magistrate Judge Mark A. Moreno on federal charges for Conspiracy to Distribute a Controlled Substance (methamphetamine), Possession with Intent to Distribute a Controlled Substance (methamphetamine), and Possession of a Firearm by a Prohibited Person. She pleaded not guilty. These charges are merely accusations and Rademacher is presumed innocent until and unless proven guilty.
GUILTY PLEAS
Harold Brewer, Jr. On December 28, 2018, Harold Brewer, Jr. (age 29) of Pine Ridge, SD, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded guilty to Conspiracy to Distribute a Controlled Substance (methamphetamine). As part of his involvement in the conspiracy, Brewer obtained methamphetamine from co-conspirators and sold it to multiple people in Western South Dakota. Sentencing is scheduled for June 18, 2019, before Chief Judge Jeffrey L. Viken. Brewer faces a mandatory minimum sentence of 10 years up to life in prison, a $10 million fine, or both, and a term of supervised release.
Cathy Wells. On January 4, 2019, Cathy Wells (age 50) of Box Elder, SD, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded guilty Conspiracy to Distribute a Controlled Substance (methamphetamine). As part of her involvement in the conspiracy, Wells obtained methamphetamine from Colorado, transported it to South Dakota, and sold it to multiple people in the Rapid City area. Sentencing is scheduled for May 10, 2019. Wells faces a mandatory minimum sentence of 10 years up to life in prison, a $10 million fine, or both, and a term of supervised release.
Joseph Bradshaw. On January 25, 2019, Joseph Bradshaw (age 37) of Sturgis, SD, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded guilty to Conspiracy to Distribute a Controlled Substance (methamphetamine). Bradshaw obtained the methamphetamine from California and sold it to multiple people in the Northern Hills and Rapid City area. As part of his scheme, Bradshaw hid his methamphetamine and proceeds in the forest. Sentencing is scheduled for June 18, 2019. Bradshaw faces a mandatory minimum sentence of 10 years up to life in prison, a $10 million fine, or both, and a term of supervised release.
Jeffrey Donald Bartholomew. On January 31, 2019, Jeffrey Donald Bartholomew (age 30) of Denver, CO, appeared before U.S. District Judge Karen E. Schreier and pleaded guilty to Conspiracy to Distribute a Controlled Substance. Beginning at a date unknown and continuing through June 19, 2017, Bartholomew knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute 400 grams or more of fentanyl obtained over the Dark Web. Sentencing is scheduled for April 22, 2019.
Trish Ann Moravetz. On January 31, 2019, Trish Ann Moravetz (age 43) of Lynn, MN, also known as Tricia Moravetz and Trish Behnke, appeared before U.S. District Judge Karen E. Schreier and pleaded guilty to Conspiracy to Distribute a Controlled Substance. Beginning at a date unknown and continuing through March 21, 2018, Moravetz knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute 500 grams or more of methamphetamine. Sentencing is scheduled for April 22, 2019.
Nicholas Michael Snowden. On January 31, 2019, Nicholas Michael Snowden (age 40) of Sioux Falls, SD, appeared before U.S. District Judge Karen E. Schreier and pleaded guilty to an Indictment that charged him with conspiracy to distribute 500 grams or more of methamphetamine. The maximum penalty upon conviction is life in federal prison, and/or a $10,000,000 fine, and a lifetime of supervised release. Snowden’s sentencing before Judge Schreier is scheduled for April 22, 2019.
April Villagomez. On January 31, 2019, April Villagomez (age 38) of Yankton, SD, appeared before U.S. District Judge Karen E. Schreier and pleaded guilty to an Indictment that charged her with Conspiracy to Distribute a Controlled Substance (methamphetamine). The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, and a lifetime of supervised release. Villagomez’s sentencing before Judge Schreier is scheduled for April 22, 2019.
FEDERAL PRISON SENTENCES
Meloni Ann Old Lodge. On December 10, 2018, Meloni Old Lodge (age 43) of a Mission, SD, was sentenced by U.S. District Judge Roberto A. Lange to 7 months in federal prison, followed by 3 years of supervised release. Old Lodge was convicted on January 5, 2018, of Conspiracy to Distribute a Controlled Substance. Old Lodge admitted that beginning in September of 2015, she received distributable quantities of methamphetamine and distributed it in South Dakota. The individuals who provided the methamphetamine to her knew she intended to engage in further distribution of it.
Sherie Roxanne Mitchell. On December 21, 2018, Sherie Roxanne Mitchell (age 35) of St. Louis, MO, was sentenced by U.S. District Judge Karen E. Schreier to 5 years in federal prison for conspiracy to distribute heroin, followed by 3 years of supervised release. During her involvement in the conspiracy, which ran from an unknown date to on or about September 5, 2017, Mitchell connected her co-conspirator with heroin customers in South Dakota.
Shania Rose Hofer. On January 4, 2019, Shania Rose Hofer (age 21) of Sioux Falls, SD, was sentenced by U.S. District Judge Karen E. Schreier to 20 years in federal prison, followed by 5 years of supervised release. Hofer was convicted of Distribution of a Controlled Substance Resulting in Serious Bodily Injury on October 22, 2018. On or about April 23, 2018, Hofer knowingly and intentionally distributed a mixture and substance containing heroin to an individual in Sioux Falls. Later that day, the person used the heroin sold by Hofer and was found unconscious. First responders were unable to detect the victim’s pulse and observed that he was not breathing. They began to perform CPR and administered two doses of Narcan before he was revived. While at the scene, law enforcement collected a syringe found next to the victim that tested positive for both heroin and fentanyl. But for the heroin provided by Hofer, the victim would not have stopped breathing.
Angela Martin a/k/a Angela Bald Eagle, a/k/a Angela Ice. On January 7, 2019, Angela Martin (age 39) of Rapid City, SD, who was previously convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine), was sentenced by Chief Judge Jeffrey L. Viken to 10 years in federal prison, followed by 5 years of supervised release. The conviction stems from an incident beginning on or about March 2015 and ending on or about December 2016, when the Defendant knowingly and intentionally conspired with others to obtain methamphetamine and distribute it in South Dakota.
Andy Ontiveros. On January 14, 2019, Andy Ontiveros (age 39) of Minneapolis, MN, was sentenced by U.S. District Judge Karen E. Schreier to 12 ½ years in federal prison, followed by 5 years of supervised release. He was convicted on October 16, 2018, of Possession with Intent to Distribute 400 grams or more of a substance containing fentanyl. On or about May 28, 2018, Ontiveros was inside his parked vehicle on the shoulder of I-29 in Minnehaha County, SD. A Deputy with the Minnehaha County Sheriff’s Office approached and requested assistance from the South Dakota Highway Patrol. Ontiveros gave consent for the officers to search the vehicle. The search uncovered 264 grams of heroin and 993 grams of fentanyl hidden inside the vehicle. Ontiveros admitted that he intended to distribute the substances both in South Dakota and elsewhere.
Amy Lynn Crandall. On January 22, 2019, Amy Lynn Crandall (age 27) of Sioux Falls, SD, was sentenced by U.S. District Judge Karen E. Schreier to 10 years in federal prison, followed by 5 years of supervised release. Crandall was previously convicted of conspiracy to distribute 500 grams or more of methamphetamine. Beginning on an unknown date and continuing until on or about May 8, 2018, Crandall provided methamphetamine for other co-conspirators to distribute in Sioux Falls and elsewhere.
Cory Poelstra. On January 28, 2019, Cory Poelstra (age 29) of Yankton, SD, was sentenced by U.S. District Judge Karen E. Schreier to 10 years and one month in federal prison, to be followed by 3 years of supervised release. On October 19, 2017, a search warrant was executed at Poelstra’s residence in Yankton. Inside the house, law enforcement discovered and seized two firearms, approximately 660 fentanyl pills, approximately 112 grams of cocaine, approximately .54 grams of heroin, approximately 27 grams of marijuana wax, approximately 2.8 kilos of marijuana, approximately 36.9 grams of hash, 4 MDMA pills, 4 pills containing methamphetamine, and $86,019 in cash. Law enforcement officers also located hundreds of empty U.S. Mail parcels, and several empty UPS and Fed Ex packages that had been used to send controlled substances to Poelstra. Officers later recovered $460,200 in cash stashed by Poelstra.
Jose Angel Ramirez-Villegas. On January 29, 2019, Jose Angel Ramirez-Villegas (age 25) a Mexican national living in Volga, SD, was sentenced by U.S. District Judge Karen E. Schreier to 10 years and one month in federal prison, followed by 4 years of supervised release. Ramirez-Villegas was convicted of Conspiracy to Distribute a Controlled Substance on October 18, 2018. Ramirez-Villegas twice sold methamphetamine to a cooperating individual in May, 2018, totaling four ounces. On June 8, 2018, law enforcement stopped his vehicle to arrest him on outstanding warrants. Law enforcement located $7,520 in Ramirez’s front pants pocket, of which $2,900 was drug buy funds used during one of the May controlled purchases of methamphetamine.
Paul Alan Sandersfeld. On February 1, 2019, Paul Alan Sandersfeld (age 39) of Sioux Falls, SD, was sentenced by U.S. District Judge Karen E. Schreier to 20 years in federal prison, followed by 4 years of supervised release. Sandersfeld was convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) on August 20, 2018. Officers had seized over 180 grams of methamphetamine and $13,530 in cash. Sandersfeld purchased it from others and sold it in the Sioux Falls area.
Devlin Tommeraasen. On February 1, 2019, Devlin Tommeraasen (age 24) of Sioux Falls, SD, was sentenced by U.S. District Judge Karen E. Schreier to 10 years in federal prison, followed by 3 years of supervised release. Tommeraasen was convicted of conspiracy to distribute heroin. The heroin was laced with fentanyl. Tommeraasen sold the drugs that led to the death of another person.
John Edward Monette. On February 1, 2019, John Edward Monette (age 50) of Sioux Falls, SD, was sentenced by U.S. District Judge Karen E. Schreier to 5 years in federal prison, followed by 3 years of supervised release. Monette was convicted of Conspiracy to Distribute a Controlled Substance on November 15, 2018. On April 25, 2018, a federal search warrant was executed on Monette’s residence. Law enforcement officers seized approximately 838 grams of MDMA, numerous ecstasy pills, approximately 69 grams of cocaine, drug packaging, scales, shipping materials, computers, cell phones, and a rifle. Also seized were 3.3882104 Bitcoin (approximate value $32,464.38) from a Mycelium wallet on Monette’s cell phone. Monette had been buying MDMA and other controlled substances from sellers in Europe and elsewhere via the Dark Web. He used Bitcoin to pay his suppliers, and received the drugs via mail. He also used the mail to deliver drugs to his customers.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
Many of these cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
The cases listed above are being investigated by the Sioux Falls Area Drug Task Force, Northern Plains Safe Trails Drug Enforcement Task Force based in both Rapid City and Pierre, Drug Enforcement Agency (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Unified Narcotics Enforcement Team (UNET), U.S. Postal Service, U.S. Department of Health and Human Services OIG/OI, Bureau of Indian Affairs (BIA), South Dakota Division of Criminal Investigation (DCI), South Dakota Highway Patrol, Minnehaha County Sheriff’s Office, Sioux Falls Police Department, Pennington County Sheriff’s Office, Rapid City Police Department, Oglala Sioux Tribe Department of Public Safety, Rosebud Sioux Tribe Law Enforcement Services, Cheyenne River Sioux Tribe Law Enforcement Services, Yankton Police Department, Pierre Police Department, Mobridge Police Department, and the South Dakota National Guard.
Assistant U.S. Attorneys John Haak, Jennifer Mammenga, Meghan Dilges, Tamara Nash, Benjamin Patterson, Kathryn Rich, Michael Elmore, Cameron Cook, and Gina Nelson are prosecuting the cases.
Erie Man Sentenced After Conviction of Human Trafficking-Related OffensesRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that on February 1, 2018, SAMUEL DEWAYNE DOOLITTLE, 33, of Erie, Pennsylvania, was sentenced by United States District Judge Louise W. Flanagan for interstate transportation for prostitution and use of the internet to promote an unlawful business enterprise, namely, prostitution. Judge Flanagan sentenced DOOLITTLE to 135 months’ imprisonment followed by 5 years of supervised release. Judge Flanagan also ordered DOOLITTLE to pay $52,900 in restitution to the victims.
DOOLITTLE was charged in a seven-count indictment on September 8, 2017, and pleaded guilty to two counts on October 17, 2018.
From early April until June 5, 2016, DOOLITTE prostituted two victims and other women throughout the eastern United States. DOOLITTLE enticed the victims by false promises of financial reward, then took virtually all the money they earned and controlled them through violence, emotional abuse, and manipulation. Among other tactics, DOOLITTLE would not let victims eat or sleep without his permission, forced them to meet financial quotas, and threatened them if they disobeyed him. Ultimately one victim fled and contacted law enforcement while being prostituted in Fayetteville, North Carolina, and DOOLITTLE was arrested.
Mr. Higdon stated: “We are very grateful for the sentence handed down by the Court on this matter. The trafficking of human beings - and make no mistake, that is exactly what this was - is one of the most outrageous and shocking crimes we prosecute. The women that this defendant trafficked were terrorized and victimized day after day after day as he manipulated them through violence, emotional abuse and by depriving them of any independent means of support. And the eleven year sentence imposed by the Court reflects the awful nature of this crime. Sadly, there are many of these cases and we are committed to aggressive investigation and prosecution wherever we find them.”
The investigation of this case was conducted by the Fayetteville Police Department and the Federal Bureau of Investigation.
Drug and Sawed Off Shotgun Dealer Sentenced to 78 MonthsRead the Press Release
BOISE - Juan Diego Garnica, 32, of Nampa, Idaho, was sentenced last Thursday in U.S. District Court to 78 months in prison, followed by five years’ supervised release, for distributing methamphetamine and possessing an unregistered firearm, U.S. Attorney Bart M. Davis announced. Garnica was sentenced by U.S. District Court Judge B. Lynn Winmill.
According to court records, on January 24, 2018, Garnica sold methamphetamine and firearms to a confidential informant working for the Federal Bureau of Investigation. One of the firearms was a sawed off shotgun with a barrel length of ten inches. Under federal law, it is illegal to possess certain firearms, like sawed off shotguns, unless the firearm is registered in the National Firearms Registration and Transfer Record. Garnica had not registered the sawed off shotgun in that record.
The case was investigated by the Federal Bureau of Investigation.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Doctor Enters into Civil Settlement to Pay Restitution and Damages to the WV Medicaid ProgramRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Dr. Manuel C. Barit, M.D., 71, of Raleigh County, and the only practicing physician at the Mullens Family Clinic, has entered into a civil settlement with his office to pay over $200,000, including full restitution and damages to the WV Medicaid Program. Earlier this week, Barit also entered a guilty plea to a healthcare fraud scheme. More information on Barit’s conviction in the criminal case can be found here.
“Healthcare fraud schemes defraud taxpayers causing healthcare costs to skyrocket. In this case, I am pleased to announce that $200,000 will be repaid in restitution for defrauding Medicaid and other healthcare benefit programs,” said United States Attorney Mike Stuart. “As a result of our efforts, Dr. Barit is being held accountable and Medicaid and the taxpayers are being made whole.”
The West Virginia’s Medicaid Fraud Control Unit, the Drug Enforcement Administration, the Department of Labor – Office of Inspector General (OIG) and the United States Postal Inspection Service participated in the investigation. Assistant United States Attorney Matt Lindsay is responsible for the civil settlement.
“The Medicaid Fraud Control Unit of the West Virginia Department of Health and Human Resources is proud to work jointly with the United States Attorney’s Office Southern District in combatting the opioid crisis,” said Jolynn Marra, Interim Inspector General. “Our partnership protects both the citizens and integrity of the Medicaid program in West Virginia.”
The Medicaid Fraud Control Unit, through DHHR’s Office of Inspector General, investigates and prosecutes or refers for prosecution allegations of health care fraud committed against the Medicaid program and allegations of the criminal abuse, neglect or financial exploitation of patients in Medicaid-funded facilities and residents in board and care facilities. Additionally, the Medicaid Fraud Control Unit is responsible for investigating fraud in the administration of the Medicaid program. Its mission is to protect West Virginia’s vulnerable citizens and the integrity of its health care programs.
To report Medicaid provider fraud or patient abuse, neglect or financial exploitation, call 304-558-1858 or 888-FRAUD-WV.
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Department of Justice Files Amicus Brief Opposing Unfair Class Action “Coupon” SettlementRead the Press Release
The Department of Justice filed an amicus brief today with the Court of Appeals for the Sixth Circuit opposing a class action settlement that would provide consumers coupons worth only part of the price of a new pressure cooker, while awarding class counsel millions of dollars in attorney’s fees and costs.
Plaintiffs in the case, Chapman et al. v. Tristar Products, Inc., alleged that a pressure cooker sold by Tristar Products contained a defect that could cause hot liquid to “erupt” out of the appliance. A settlement reached between the parties would provide class members with a limited warranty extension and a non-transferrable $72.50 credit toward the purchase of certain Tristar products, to be ordered directly from the company. At current prices, the credit would pay for less than half the cost of a new pressure cooker from Tristar. Under the settlement, class members would release all claims relating to alleged defects in the pressure cookers, including claims for personal injury or property damage. Out of the estimated 3.2 million consumers who purchased the pressure cooker at issue, only about 13,300 claimed the coupons. The settlement, as approved by the district court, would award plaintiff’s counsel more than $2 million in attorney’s fees and costs.
The Class Action Fairness Act of 2005 provides the Attorney General and state officials an opportunity to review federal class action settlements before district courts grant final approval. The United States filed a statement of interest in 2018 opposing the Chapman settlement in district court for the Northern District of Ohio. A coalition of 18 state attorneys general also filed a brief arguing that the settlement was unfair to consumers. The district court approved the settlement, which is now on appeal with the Sixth Circuit.
“Under the Class Action Fairness Act, the Department of Justice plays an important role in reviewing the reasonableness and adequacy of proposed class action settlements,” said Principal Deputy Associate Attorney General Jesse Panuccio. “Settlements such as this one raise serious fairness concerns by awarding class members only illusory relief while the lawyers bringing the lawsuit are awarded substantial fees. We will continue to scrutinize such proposed settlements to ensure they comport with the law and are fair, reasonable, and adequate.”
“Class action settlements that provide nothing of real value to consumers but award significant attorney’s fees to class counsel are precisely what Congress meant to curtail with the Class Action Fairness Act,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to advocate on behalf of consumers when we see inappropriate class action settlements of this kind.”
Trial Attorney Kendrack Lewis of the Civil Division’s Consumer Protection Branch represents the United States in the matter. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Dallas County Man Receives 37 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jermaine Butler, a 27 year old resident of Selma, Alabama was sentenced to 37 months incarceration followed by three years of supervised release for possession of a Zastava rifle after being convicted of Assault First Degree.
On September 25, 2018, Butler entered a guilty plea pursuant to a plea agreement and admitted in open court that on May 25, 2018, Dallas County, AL deputies set up a random driver’s license checkpoint in Selma, Alabama. A Chevrolet Impala driven by Butler stopped several yards short of the checkpoint. Deputies motioned for Butler to continue to the checkpoint. Butler then drove past the checkpoint then stopped. As deputies approached the driver’s side of the vehicle, they smelled marijuana and saw one passenger in the vehicle with Butler. Both were asked to exit the vehicle. When Butler opened the front driver’s side door, deputies saw a small amount of marijuana. Butler was immediately detained. Deputies then saw, in plain view, a rifle on the floorboard of the backseat of the vehicle. The rifle was loaded. The rifle is described as a Zastava, model N-PAP DF, 7.62X39 caliber rifle. A probable cause search of the vehicle was conducted. The search discovered another quantity of marijuana stuffed between the front seats. Butler then stated that the rifle and the marijuana were his and the passenger also stated that the rifle and marijuana belonged to Butler.
Butler was previously convicted of Assault First Degree on March 3, 2015, in the Circuit Court of Dallas County, Alabama, case number CC-2012-000045.
Officers of the Dallas County, Alabama Sheriff’s Office along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Dallas County Man Receives 30 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Chadwick J. Blake, a 31 year old resident of Selma, Alabama was sentenced to 30 months incarceration followed by three years of supervised release for possession of a Taurus 9mm pistol after being convicted of Assault Second Degree.
On September 28, 2018, Blake entered a guilty plea pursuant to a plea agreement and admitted in open court that on October 24, 2017, an Alabama Parole Officer conducted a home visit of Blake at his residence in Selma, Alabama. The parole officer found one round of 9mm ammunition in Blake’s pocket. The parole officer then searched Blake’s residence. He found a Taurus, model Millennium, G2, 9mm pistol. The parole officer then arrested Blake for violating his probation.
At that time, Blake had been convicted of Assault 2nd, on August 12, 2015, in the Circuit Court of Dallas County, Alabama, case number CC-2015-000123.Officers of the Selma, Alabama Police Department along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives and investigators from the State Attorneys General’s Office investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S.
Vann.Dallas County Man Found Guilty of Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Anthony Jerome Ellis, a 33 year old resident of Selma, Alabama was found guilty of possession of a firearm after conviction of a felony. The trial was held on January 22 and 23, 2019.
The evidence produced at trial showed that on December 16, 2017 at about 12:30am, Selma, Alabama police officers were in an unmarked vehicle patrolling the area around the “Small Street Inn.” The “Small Street Inn” is a nightclub known to have crimes of violence committed in and around it while in operation over the nighttime hours. Once officers arrived on the scene, Ellis and his nephew were walking briskly toward the officers as the officers drove up to the club. As the officers stopped their vehicle to go and talk to them, Ellis and his nephew pivoted left and walked between two vehicles. Almost immediately after they got between the vehicles, Ellis and his nephew squatted down for a second or two. The officers then drew their service weapons and yelled, “Selma Police Officers put your hands up.” Ellis and his nephew then stood up. Officers immediately detained them and went the the areas where Ellis and his nephew squatted down. Found in the exact area for each was a firearm. In the area where Ellis squatted was a loaded .38 caliber RG revolver and in the area where his nephew squatted was a loaded .40 caliber Smith & Wesson semi-automatic pistol. Ellis’ nephew told officers that the .40 caliber semi-automatic firearm was his. Ellis was charged with being a felon in possession of a firearm. During the time between Ellis’ arraignment for the felon in possession of a firearm charge and his trial on January 22, 2019, he sought out an inmate who had been convicted of the same charge he was facing. Ellis told that inmate that he and his nephew were at a nightclub one night in Selma, Alabama and the cops pulled up so he and his nephew ducked between two cars and tossed their guns. Ellis told the inmate that the cops would not be able to prove he had the gun because they could not see him toss it and they did not find the gun on him. He also told the inmate that the cops could not get any fingerprints off of the gun. When the inmate asked Ellis how he was going to explain why he squatted out of sight, Ellis told him that he would say he was tying his shoe or had dropped his cigarette lighter. Ellis also told the inmate that he was going to have his trial in Selma and not Mobile because everybody in Selma knows him and he won’t be convicted there.
Officers of the Selma, AL Police Department along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Convicted Felon Who Possessed a Loaded Handgun Sentenced to over Six Years in Federal PrisonRead the Press Release
A man who had previously been convicted of multiple felony offenses, including a conviction for being a felon in possession of a gun, was sentenced today to more than six years in federal prison for once again unlawfully possessing a gun.
Robert Dettbarn, age 26, from Cedar Rapids, Iowa, received the prison term after a September 27, 2018 guilty plea to possessing a firearm as a felon.
Information from a plea agreement and at sentencing showed that on May 22, 2018, Dettbarn was a passenger in car that was stopped by Dubuque police. During the stop, Dettbarn got out of the car holding a loaded handgun, which was pointed at an officer. Officers ordered Dettbarn to drop his gun, but he ignored the orders and pointed the gun in the air. He then walked away from officers and pointed the gun at his own head. He was near Fulton Elementary and officers called to have the school locked down. After approximately two hours of negotiations, Dettbarn surrendered to officers.
Dettbarn was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dettbarn was sentenced to 80 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dettbarn is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1032.
Follow us on Twitter @USAO_NDIA.
Citrus Heights Resident Sentenced to Two Years in Prison for EmbezzlementRead the Press Release
OAKLAND – Susan Elizabeth Kyle was sentenced this morning to 24 months in prison for embezzlement of money from a labor organization by an officer, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Kyle, 61, now living in Citrus Heights, Calif., pleaded guilty to the charge on October 29, 2018. According to her plea agreement, Kyle admitted that while employed as the Treasurer of American Federation of State, County and Municipal Employees Local 2428, the union for East Bay Regional Park District employees, she used her Treasurer position to redirect union funds to accounts that she controlled. As Treasurer, Kyle was the signatory of Local 2428’s bank account. Kyle would verbally authorize the Local 2428’s payroll processing company to issue payments to cover the union’s payroll expenses. Kyle admitted that from 2008 to 2014, while she managed the Local 2428’s accounts, she told the Local 2428’s payroll processing company to issue unauthorized payments to herself on a weekly basis. Then, to conceal her fraud, she prepared reports that did not reflect the true expenditures. Kyle admitted that she stole at least $490,338 from the Union as a result of this scheme.
In addition, as part of the plea agreement, Kyle admitted that she abused her position of trust as Treasurer of the Local 2428 Union.
On October 5, 2018, the United States Attorney’s Office charged Kyle by Information with one count of embezzlement of money from a labor organization by an officer, in violation of 29 U.S.C. § 501(c). Kyle pleaded guilty to the charge.
In addition to the prison term, Judge Gilliam ordered Kyle to pay $490,338 in restitution to the Local 2428 Union. At the sentencing hearing, Judge Gilliam recognized the “devastating effect [Kyle’s crime had] on the Union” and noted that Kyle caused a “massive amount of harm.” Judge Gilliam ordered Kyle to serve 36 months of supervised release following her prison term. Judge Gilliam ordered Kyle to self-surrender on or before March 18, 2019, to begin serving her prison term.
Assistant United States Attorney Christina McCall is prosecuting this case with the assistance of Vanessa Quant and Elyza Delgado. This prosecution is the result of an investigation by the FBI.
Charleston Felon Sentenced to 8 Years in Federal Prison for Distribution of HeroinRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Horace Edmond Wright, age 52, of Charleston, South Carolina, was sentenced in federal court in Charleston after pleading guilty to distribution of heroin. United States District Judge Bruce Howe Hendricks of Charleston sentenced Wright to eight years in federal prison, to be followed by 15 years of court-ordered supervision. Evidence presented to the court established that Wright had distributed heroin on two occasions in 2017. He has prior convictions for Possession with Intent to Distribute Marijuana in 1994, Distribution of Crack in 1998, and Possession with Intent to Distribute of Heroin in 2008.
The case was investigated by agents of the U.S. Drug Enforcement Administration (DEA) and Charleston City Police Department. Assistant United States Attorney Jamie Lea Schoen of the Charleston office prosecuted the case.
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Cedar Rapids Man Sentenced to Nearly Four Years in Federal Prison for Unlawfully Possessing Four GunsRead the Press Release
A man who possessed four firearms and over 600 rounds of ammunition while using and selling marijuana was sentenced today to nearly four years in federal prison.
Kimble John Slaman, age 65, from Cedar Rapids, Iowa, received the prison term after an August 24, 2018, guilty plea to one count of possession of firearm by a prohibited person and one count of possession with intent to distribute a controlled substance.
In a plea agreement, Slaman admitted that, between 2012 and 2015, he made a series of false statements in order to obtain guns and a permit to carry weapons. At the time, Slaman was an unlawful user of marijuana, but he denied using marijuana on federal forms in order to purchase guns. Slaman also began selling marijuana. He received his supply of marijuana through the mail from an individual in Oregon. The marijuana was sent to Slaman’s home on Mount Vernon Road in Cedar Rapids. Slaman also hired a person to transport two pounds of marijuana from Sioux Falls, South Dakota, to Cedar Rapids.
In December 2015, law enforcement officers intercepted one of the packages, which contained 15 pounds of marijuana. Officers then searched Slaman’s home. Officers found four firearms, a tactical vest, and over 600 rounds of ammunition in Slaman’s bedroom. One of the firearms, a Colt M4 5.56mm rifle, was loaded. The tactical vest held a seven-inch knife in a scabbard and clips of ammunition, including a 9mm clip that held 31 rounds. Slaman admitted he had received at least six shipments of marijuana from Oregon, which he had either used or sold to his customers. Officers found 458 grams of marijuana in Slaman’s kitchen, mostly in the dishwasher, and 2,499 grams of marijuana in Slaman’s garage. Slaman’s marijuana had exotic titles, including “Foo X Haze,” “WWP Athena,” “Goo Chili Sticky,” “Special X,” and “BO.”
Slaman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Slaman was sentenced to 46 months’ imprisonment, fined $2,000, and ordered to pay over $2,600 in costs of prosecution. Slaman must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Slaman was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Drug Enforcement Administration and the United States Postal Inspection Service.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-85.
Follow us on Twitter @USAO_NDIA.
Carlinville Man to Serve 17 1/2 Years in Prison for Selling Ice Methamphetamine, 12 Guns Recovered, ForfeitedRead the Press Release
SPRINGFIELD, Ill. – A Carlinville, Ill., man, Shawn Lee, 45, was sentenced on Feb. 1, 2019, to 17 ½ years (210 months) in federal prison for trafficking ice methamphetamine and possession of firearms, including an AR-15 semi-automatic rifle, in furtherance of a drug trafficking offense. At sentencing, District Judge Sue E. Myerscough determined that Lee was responsible for distribution of approximately 100 pounds (45 kilos) of ice methamphetamine over a period of 18 to 24 months prior to his arrest in March 2018.
Known as ice, this extremely addictive form of methamphetamine is produced by chemically distilling methamphetamine hydrochloride to a crystal or ‘ice’ form which is typically smoked. It is not made by local meth cooks; instead it is produced in Mexico and other countries and smuggled into the United States.
“These drugs, brought into our country, are destroying families,” said U.S. Attorney John Milhiser. “We will continue to identify and prosecute those who distribute these deadly substances in our communities.”
Lee, of the 100 block of E. Haig St., was ordered to serve 12 ½ years for the ice trafficking offense followed by a mandatory five years in prison for possession of firearms related to the underlying drug offense. Judge Myerscough ordered that Lee pay a fine of $20,000 to be paid with the transfer of a savings bond to the government prior to his transfer to the federal Bureau of Prisons. In addition, Lee agreed to the forfeiture of 12 guns and $20,170 in currency seized during the investigation. Lee’s federal sentence will be served concurrent to any sentence ordered for several pending unrelated cases in Macoupin county.
The charges are the result of investigation by the U.S. Drug Enforcement Administration; the Central Illinois Enforcement Group, the South Central Illinois Task Force; Carlinville Police Department; Illinois State Police; Jacksonville Police Department; and, the Macoupin County Sheriff’s Office. Assistant U.S. Attorney Matthew Z. Weir represented the government in the case prosecution.
On July 30, 2018, Lee entered pleas of guilty to the offenses. According to court documents and statements made in court, law enforcement officers became aware that Lee was to receive a package of ice methamphetamine from a source in California on Jan. 23, 2018. On that date, officers observed Lee pick up a FedEx package from a home in Chatham, Ill., where he did not live. Officers subsequently stopped Lee’s vehicle and after an ISP K-9 alerted to the presence of drugs in the car, officers found 7.15 pounds (3.22 kilos) of ice methamphetamine and $20,170 in the car.
At Lee’s home in Carlinville, officers executed a search warrant on Jan. 23, 2018, and recovered 12 firearms, including the AR-15, and an assortment of other loaded guns including 22 caliber rifles and several handguns, five ounces (approximately 140 grams ) of ice, and paraphernalia used in selling drugs such as scales and baggies.
Lee has remained in the custody of the U.S. Marshals Service since he was indicted and arrested in March 2018.
Camden County, New Jersey, Man Admits Supplying Crack Cocaine to Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. - A Camden County, New Jersey, man today admitted his role in a Camden drug trafficking organization that distributed large amounts of crack cocaine, furanyl fentanyl and heroin, U.S. Attorney Craig Carpenito announced.
Mark Campbell, 39, a/k/a “D” and Diz,” of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base.
According to documents filed in this case and statements made in court:
Campbell admitted that he supplied large quantities of cocaine base (crack cocaine) to members of a drug trafficking organization operating around the 1700 block of Filmore Street in Camden. The organization also distributed heroin and furanyl fentanyl, which it obtained from other suppliers. Ten members of the drug ring were arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques. Members of the drug trafficking organization distributed crack cocaine, furanyl fentanyl, and heroin to users and resellers in and around Camden and to people cooperating with the FBI. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia. An eleventh defendant was later charged in March 2018.
The count to which Campbell pleaded guilty carries a mandatory minimum term of 10 years in prison and a maximum of life. Sentencing is scheduled for May 13, 2019.
Six other defendants – Daron Suiter, 24; Davon Leak 20; George Williams, 44; Karim Johnson, 39, a/k/a “Chicky;” Latoya Whealton, 34, a/k/a “Toya;” and Rajai Gaines, a/k/a “Jigga,” – previously pleaded guilty.
Drug, firearm, and witness tampering charges remain pending in a third superseding indictment against four other defendants, including alleged leaders John Gunther, 35, a/k/a “Critty,” and Taleaf Gunther, 32, a/k/a “Leafy” and “L,” as well as alleged members William Roland, 37, a/k/a “Chill,” and Malcolm McCoy, 28. Trial is scheduled to begin in March 2019.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation. He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations against the four defendants awaiting trial are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Troy A. Archie Esq., Cinnaminson, New Jersey
California Man Pleads Guilty to Bringing 29+ Pounds of Meth to KansasRead the Press Release
WICHITA, KAN. – A California man pleaded guilty Monday to driving more than 29 pounds of methamphetamine to Kansas, U.S. Attorney Stephen McAllister said.
Christian Delgado-Lopez, 30, Dana Point, Calif., pleaded guilty to one count of possession with intent to distribute methamphetamine. The Kansas Highway Patrol stopped Delgado-Lopez for a traffic violation in Meade County. Troopers found 14 packages of methamphetamine weighing 13.6 kilos (29.9 pounds) in his vehicle.
Sentencing is set for April 12. He faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. McAllister commended the Kansas Highway Patrol and Assistant U.S. Attorney Kimberly Rodebaugh for their work on the case.
Cheyenne Man Sentenced to 40 Years in Prison for Drug Robbery Resulting in DeathRead the Press Release
Armando Raul Ramirez-Serna, 22, was sentenced on February 4, 2019, to serve 40 years in federal prison for killing another man while robbing him of marijuana and proceeds from the sale of marijuana, announced United States Attorney Mark A. Klaassen. Ramirez-Serna was also ordered to pay over $19,000 in restitution to the victim’s family and to the Wyoming Division of Victims Assistance.
Ramirez-Serna was indicted in July of 2018 for interfering with commerce by robbery, using a firearm and causing murder during the robbery, and using fire to commit a felony. Pursuant to a plea agreement with the United States, Ramirez-Serna pleaded guilty on October 9, 2018, to interfering with commerce by robbery and using a firearm and causing murder during the robbery. Two other counts were dismissed at sentencing.
“The prosecution of this case represents a successful collaboration between local and federal law enforcement agencies to combat violent crime in our communities,” said U.S. Attorney Mark Klaassen. “It is an example of the partnerships the Department of Justice is committed to fostering as part of its Project Safe Neighborhood initiative, which seeks to combine the resources of local, state, and federal law enforcement agencies and prosecutors’ offices to find the most effective way to investigate and prosecute violent actors, and to bring justice to the victims of violent crime.”
United States District Court Judge Alan B. Johnson imposed the sentence. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Laramie County Sheriff’s Department investigated the case with the assistance of agents from the Drug Enforcement Administration. Assistant U.S. Attorneys Stuart S. Healy III, Stephanie Sprecher, and David Kubichek prosecuted the case.
Brazilian Man Pleads Guilty to Wire Fraud Conspiracy and Aggravated Identity Theft for Defrauding Manhattan Financial InstitutionsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MARCOS ELIAS, a Brazilian citizen and resident, pled guilty today to conspiracy to commit wire fraud and aggravated identity theft for participating in a scheme to fraudulently obtain more than $750,000 at financial institutions headquartered in Manhattan using false representations and the stolen identities of Brazilian account holders at those institutions. ELIAS was extradited from Switzerland to the Southern District of New York on August 28, 2018, and entered his pleas of guilty today in Manhattan federal court before U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Marcos Elias engaged in a sophisticated fraud scheme from Brazil to steal over $750,000 from a Manhattan financial institution. He committed this truly international crime through a front company in Panama, a bank account in Luxembourg, and by using the stolen identity of a Brazilian account holder. Elias now awaits sentencing for his crimes.”
According to allegations in the Complaint and the Indictment:
Since at least 2012, a Brazilian company (the “Client”) held an account at a financial institution headquartered in Manhattan (the “Firm”). Beginning in or about June 2014, ELIAS was in correspondence with a Senior Vice President at the Firm (the “Firm Employee”) regarding the Client’s account. The Firm Employee then began receiving emails purportedly from an employee of the Client (the “Client Employee”) instructing the Firm Employee to transfer the Client’s money to a bank account in Luxembourg (the “Luxembourg Account”) that appeared to be in the name of the Client. Those emails were later determined to have been sent from an email address created the same day that was never used by the Client Employee and contained bogus wire instructions with the forged signature of the Client Employee. As a result of the false documentation provided to the Firm Employee, on July 15, 2014, the Firm transferred approximately $752,000 from the Client’s account at the Firm to the Luxembourg Account (the “Fraudulent Transfer”), believing it to be a legitimate transfer requested by the Client.
In actuality, the Client did not authorize the Fraudulent Transfer, did not have any bank or brokerage accounts in Luxembourg, and did not send the emails to the Firm Employee requesting the transfer. Instead, the Luxembourg Account that received the Fraudulent Transfer was beneficially owned by ELIAS and opened in the name of a company formed in Panama the week prior to the Fraudulent Transfer. The Luxembourg Account was held in the name of a company containing the name of the Client in order to create the false impression that the Client’s funds were being transferred to an account beneficially owned by the Client when in fact such account was beneficially owned by ELIAS.
In addition to the scheme to defraud the Firm, ELIAS also attempted to fraudulently obtain money from a second financial institution headquartered in Manhattan using the name and purported passport of an account holder without authority.
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ELIAS, 47, of São Paulo, Brazil, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years, and one count of aggravated identity theft, which carries a mandatory consecutive minimum sentence of two years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ELIAS is scheduled to be sentenced by U.S. District Judge Laura Taylor Swain on April 4, 2019, at 11:00 a.m.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Berman also thanked Switzerland’s Federal Office of Justice, the Zurich Police (Kantonspolizei Zürich), and the U.S. Department of Justice’s Office of International Affairs for their assistance with the extradition.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Branch Manager for East West Bank Sentenced to Two Years in Federal Prison for Money Laundering SchemeRead the Press Release
LOS ANGELES – An East West Bank branch manager who conspired to launder over $25,000 in cash by converting the currency into cashier’s checks was sentenced today to 24 months in federal prison.
Vivian Tat, 54, of Hacienda Heights, who is a vice president at East West Bank currently on administrative leave, was sentenced by United States District Judge Otis D. Wright II. In addition to the prison sentence, Judge Wright ordered Tat to pay a $2,000 fine.
Tat and a co-defendant were found guilty by a federal jury in September of conspiring to commit money laundering. Tat was also convicted of two counts of causing a false statement in a bank record.
The co-defendant – Ruimin Zhao, 48, of Temple City, is scheduled to be sentenced by Judge Wright next Monday.
Today’s sentencing was a result of a scheme in which Tat, Zhao and Zhao’s husband – Raymond Tan, 62, of Temple City – laundered cash through East West Bank’s San Gabriel branch. According to court documents and the evidence presented at trial, Tat, Zhao and Tan led an informant into the bank’s conference room, where the informant provided $25,500 in cash that was then laundered into three “clean” cashier’s checks issued through the account of a bank client. The informant was wearing a secret recording device and throughout the transaction, the conspirators made statements demonstrating that they knew money laundering was illegal. To cover their tracks, Tat facilitated false entries to be made in East West Bank’s records, which made it appear that this transaction was legitimate.
Prosecutors argued in court papers that Tat was responsible for providing the location of the closed-door transaction, the account holder, the checks used to facilitate the money laundering and the unwitting tellers who issued the cashier’s checks.
Tat “also provided the knowledge necessary to ensure that this transaction would occur undetected by regulators or law enforcement,” prosecutors wrote in a sentencing memorandum that noted Tat trained other East West Bank employees on the Bank Secrecy Act and anti-money laundering rules.
Tan previously pleaded guilty to money laundering conspiracy and money laundering in this case and in two other cases. He is scheduled to be sentenced by Judge Wright on March 18.
This case is the result of Operation “Phantom Bank,” which resulted in six indictments that charge a total of 25 defendants. Nine of the defendants have been convicted, and 16 defendants are pending trial.
This case is the result of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
The case against Tat was prosecuted by Assistant United States Attorneys Kim Meyer and Joseph D. Axelrad of the Violent and Organized Crime Section.
Bay Area Doctor Charged with Conspiracy to Commit Mail Fraud in Connection with Disability Fraud SchemeRead the Press Release
SAN FRANCISCO - A federal grand jury indicted George David and Linda Nguyen with conspiracy to commit mail fraud and substantive mail fraud, announced United States Attorney David L. Anderson and Federal Bureau of Investigation, Special Agent in Charge John Bennett.
According to the indictment filed January 29, 2019, and unsealed today, David, 78, a San Francisco physician, and Nguyen, 66, of Union City, engaged in a scheme to defraud California’s State Disability Insurance (SDI) program. The SDI program is designed to provide partial wage replacement benefits to eligible California workers who are unable to work due to a non-work-related illness, injury, or pregnancy. To receive SDI benefits, a claimant must file a claim for benefits supported by a Physician/Practitioner Certification attesting to the claimant’s disability. According to the indictment, David provided fraudulent Physician/Practitioner Certifications to support fraudulent SDI applications for non-disabled claimants. In addition, the indictment alleges that Nguyen facilitated the fraud by assisting non-disabled persons with the execution and submission of fraudulent documents. The indictment further alleges that Nguyen charged the non-disabled persons for processing their fraudulent applications. In sum, the defendants each were charged with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, and one count of substantive mail fraud, in violation of 18 U.S.C. § 1341.
The defendants were arrested this morning and made their initial appearances before U.S. Magistrate Judge Donna M. Ryu. Both defendants were released on bond. Magistrate Judge Ryu scheduled David’s and Nguyen’s next appearances for February 8 and February 15, 2019, respectively, for arraignment and identification of counsel.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If found guilty, the defendants face a maximum statutory sentence of 20 years in prison for each count in the indictment. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the FBI and Social Security Administration Office of the Inspector General.
Armed Drug Trafficker from New Hanover County Receives More Than 11 Years in PrisonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced TONY MCNEIL, 28, of New Hanover County to 135 months imprisonment, followed by 5 years of supervised release.
On October 18, 2018, MCNEIL pled guilty to conspiracy to possess with the intent to distribute and distribute 280 grams or more of cocaine base (crack) and a quantity of cocaine and distribution of 28 grams or more of cocaine base (crack).
On April 21, 2015, the Wilmington Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) received information that MCNEIL had just completed a drug deal in Pender County. Law enforcement stopped MCNEIL on his way to his residence in New Hanover County and searched his car and found a loaded handgun and more than $6,000. During the course of the investigation law enforcement determined that MCNEIL had just sold 2 ounces of cocaine.
Between April 23 and May 12, 2015, law enforcement made four controlled purchases of more than 300 grams of crack cocaine from MCNEIL. The first three deals were in Sampson County and the final sale was at his residence in New Hanover County. According to law enforcement, MCNEIL was responsible for distributing more than 1.5 kilograms of cocaine and 300 grams of crack cocaine from April to May 2015.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Wilmington Police Department, and the New Hanover County Sheriff’s Office. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Allendale Town Administrator Pleads Guilty to Theft of Federal FundsRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Harold Dewayne Ennis, Jr., 48, of Allendale, South Carolina, pled guilty in federal court to theft of federal funds.
The Information to which Ennis pled guilty states that Ennis has held the position of Allendale Town Administrator since around the year 2000. In his role as Town Administrator, Dewayne Ennis had authority to manage and use Town funds. In 2015, he began siphoning funds from the Town of Allendale for personal and unofficial uses, including vehicle purchases, automobile repairs, home repairs, and receiving payment from the Town of Allendale for hours worked elsewhere.
Ennis faces of maximum penalty of ten years in federal prison. Senior United States District Judge Cameron Currie will sentence him after receiving and reviewing a presentencing report prepared by the United States Probation Office.
The charges against Ennis were the result of an investigation by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division. Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office is prosecuting the case.
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