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29 January 2019
West Monroe felon pleads guilty to possessing pistolRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that a West Monroe felon pleaded guilty on January 17, 2019 to unlawfully possessing a pistol.
Michael Holder, 41, of West Monroe, Louisiana, pleaded guilty before U.S. District Judge Terry Doughty, to one count of felon in possession of a firearm. According to the guilty plea, an officer with the Ouachita Parish Task Force conducted a traffic stop on Holder’s vehicle June 9, 2017. The officer discovered that Holder had a warrant from the Ouachita Parish Sheriff’s Office and asked Holder to exit the vehicle. Holder told the officer he was sitting on a BB gun. Instead of a BB gun, it turned out to be a loaded Glock, Model 17, 9mm-caliber pistol. The officer also found a glass smoking pipe with suspected methamphetamine in Holder’s back pocket.
Holder faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for May 15 2019.
The ATF and the Ouachita Parish Task Force conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Project Safe Neighborhoods (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.
WellBound of Memphis will pay $3,246,000 to the United States and the State of Tennessee for services rendered to patients at its Memphis facility that were in violation of the Anti-Kickback statuteRead the Press Release
Memphis, TN – WellBound of Memphis will pay $3,246,000 to the United States and the State of Tennessee to resolve allegations of false claims to Medicare, Tricare and Tenncare for services rendered to home dialysis patients at its Memphis facility. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced today.
The Complaint alleged that from 2016 to 2018,WellBound of Memphis presented claims to Medicare, Tricare and Tenncare that were false in part due to illegal inducements paid by WellBound to physicians associated with its clinic. Under federal and state law, Medicare, Tricare and Tenncare will not pay for services associated with physician referrals that are in violation of the Anti-Kickback statute.
The allegations resolved in this settlement were first raised in a lawsuit filed against WellBound and others under the qui tam provisions of the False Claims Act, which permits parties to sue on behalf of the government for the submission of false claims and share in the recovery. The False Claims Act, 31 U.S.C. §§ 3729-3733, provides the United States with a cause of action against any person or entity that knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval.
The case was captioned United States of America and the State of Tennessee ex rel. Dr. L. Darryl Quarles v. Satellite Healthcare, Inc., UT Medical Group, Inc., and WellBound of Memphis, LLC, No. 16-2733-JTF (W.D.Tenn.).
"Protecting the health and safety of Medicare patients is one of our primary concerns," When medical providers break the law by defrauding the government by providing illegal inducements in violation of the Anti-Kickback statute, wewill use our resources to combat this fraud and hold them accountable," said D. Michael Dunavant, United States Attorney for the Western District of Tennessee.
"When physicians receive financial incentives in exchange for patient referrals, it distorts medical decision-making and freezes out competition," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "This settlement sends a strong message that Medicare and Medicaid patients are not for sale."
This investigation was conducted by the United States Department of Health and Human Services Office of the Inspector General, the Tennessee Bureau of Investigation and the Tennessee State Attorney General’s Office.
Assistant United States Attorneys Stuart J. Canale and Matt Waldrop and Philip Bangle, Counsel for the Tennessee Attorney General prosecuted this case on the government’s behalf.
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Vivian woman sentenced to 10 years for distribution of methamphetamine in ShreveportRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a woman living in Vivian was sentenced on January 22, 2019 to 10 years in prison for distribution of methamphetamine in Shreveport.
Miranda Sierra, 42, of Vivian, Louisiana, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession with intent to distribute methamphetamine. She was also sentenced to 33 months of supervised release. According to the June 7, 2018 guilty plea, law enforcement agents conducted a controlled purchase of methamphetamine from Sierra on March 8, 2017, in Shreveport. She met the buyer at a gas station and sold 12.5 grams of methamphetamine. She told the buyer that she would soon travel to California to obtain more methamphetamine for the purpose of selling.
The DEA investigated the case. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Update on U.S. Attorney’s Office Operations During Government ShutdownRead the Press Release
ALEXANDRIA, Va. – A message from U.S. Attorney G. Zachary Terwilliger regarding the efforts of the U.S. Attorney’s Office for Eastern District of Virginia (EDVA) during the recent government shutdown:
“I am extremely proud of our team here in EDVA for their outstanding efforts during the government shutdown,” said Terwilliger. “Their fortitude, perseverance, and complete dedication to public service and our mission of public safety is inspiring. Over the past weeks our criminal prosecutors and civil litigators continued to forge ahead with their important work, as evidenced by the cases highlighted below. They successfully secured convictions, argued sentencings, and achieved civil settlements. They, along with our support staff and federal, state and local law enforcement partners, have my sincere thanks and admiration for all they do to keep our communities safe here in EDVA.”
Below are headlines of several noteworthy cases that occurred during the government shutdown. For more information on a particular case, please click the link for the full press release on our website.
Noteworthy Cases
January 4: Multi-Kilogram Drug Trafficker from Mexico Sentenced to Prison
January 7: U.S. Postal Service Mail Carrier Sentenced to Prison for Bribery
January 7: Navy Officer Sentenced to Prison for $2.7 Million Fraud Scheme
January 7: Man Pleads Guilty to Armed Bank Robbery and Multiple Bomb Hoaxes
January 9: Owner of Seafood Company Sentenced to Prison for Blue Crab Scam
January 10: Nine-Time Felon Sentenced to Prison for Possessing a Firearm
January 14: Woman Sentenced to Prison for Possessing Ricin
January 15: Jury Convicts Two Cousins of Armed Bank Robbery
January 17: Romanian Man Sentenced for ATM Scam and ID Theft
January 18: Former State Department Employee Sentenced to Prison for Student Loan Fraud
January 18: Medical Company Executive Sentenced for Smuggling $18 Million in Misbranded Pharmaceuticals into United States
January 18: Mexican National Sentenced for Multi-Kilogram International Drug Trafficking Conspiracy
January 18: Woman Sentenced to 15 Years for $5 Million Fraud
January 22: Felon Sentenced for Illegally Reentering the United States
January 24: Man Sentenced to Life for Attempted Sex Trafficking of a Child
January 25: Man Sentenced to Prison for Four Bank Robberies
January 25: Moroccan Man Sentenced to Prison for Assault on Federal Officers
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.
U.S. Attorney’s Office Welcomes 15 New Assistant U.S. AttorneysRead the Press Release
KNOXVILLE, Tenn. – On Friday, January 25, 2019, the Honorable Thomas A. Varlan, Chief U.S. District Judge, formally administered the oath of office to 15 new Assistant U.S. Attorneys (AUSAs) for the Eastern District of Tennessee. U.S. Attorney J. Douglas Overbey introduced the new AUSAs with a short background before moving the court to administer the oath of office to each of them. The new AUSAs will serve in the Knoxville headquarters office as well as the Chattanooga and Greeneville branch offices and include the following:
AUSA Casey Arrowood joined the Knoxville office where he will handle general crimes and national security matters. Prior to coming to the Eastern District of Tennessee, he served as an AUSA in the Western District of North Carolina and a trial attorney in the National Security Division at the U.S. Department of Justice in Washington, DC. He also previously served as a law clerk in the Eastern District of New York and U.S. Court of Appeals for the Sixth Circuit. Before attending law school, he was an artillery officer in the U.S. Army, serving tours in Kosovo and Afghanistan. Arrowood received his undergraduate degree from the University of North Carolina at Chapel Hill and his law degree from Georgetown University Law Center.
AUSA Kevin Brown joined the Chattanooga office as a Special AUSA working in the Violent Crimes Unit to prosecute firearms, drug and gang related offenses. He comes to the U.S. Attorney’s Office via the Chattanooga Police Department, where he serves as a Special Assistant City Attorney. Prior to joining the U.S. Attorney’s Office, Brown was an Assistant District Attorney in the 11th Judicial District of Tennessee, where he prosecuted violent crimes and served as Criminal Court Division Supervisor.
AUSA Frank Clark joined the Chattanooga office to prosecute violent crimes and narcotics offenses. He was a prosecutor for 13 years, first in his home state of Mississippi, and then in Gwinnett County, Georgia. He has a law degree from Ole Miss and an undergraduate degree from Mississippi College. Just prior to joining the U.S. Attorney’s Office, Clark worked at a law firm practicing civil defense litigation.
AUSA Joe DeGaetano joined the Chattanooga office where he will handle violent crime and narcotics prosecutions. He has an undergraduate degree from Vanderbilt University and a law degree from the University of Georgia. After clerking for a judge on the Eleventh Circuit in Atlanta, he worked for a large law firm in Nashville and Chattanooga. He then joined a small firm in Chattanooga and finally was a solo practitioner for around 10 years. Most recently, he was a personal injury lawyer for 17 years and additionally defended federal criminal defendants through the CJA Panel.
AUSA Margaret Harker joined the ACE team in the civil division of the Knoxville office. She transferred from the Eastern District of Virginia where she practiced defensive litigation as a civil AUSA. Prior to becoming an AUSA, she served as a law clerk in the U.S. District Court for the Eastern District of Virginia and the Virginia Court of Appeals. She also interned for the Fourth Circuit Court in Virginia and Virginia Supreme Court. Margaret received her law degree from the University of Richmond, School of Law and her undergraduate degree in political science, Asian studies, and studio art, from Santa Clara University. She also studied at the University of International Business and Economics in Beijing, China.
AUSA TJ Harker joined the Greeneville office to prosecute white-collar crime, with a focus on complex health care fraud. Prior to coming to the Greeneville office, he service five years as a Deputy Attorney General for the State of New Jersey, Division of Criminal Justice, where he led New Jersey’s Commercial Bribery Task Force. Before that, he was in private practice in New York. He received his law degree from the University of Michigan Law School.
AUSA Brent Jones joined the Knoxville office to prosecute drug cases as part of the Department of Justice’s Operation Synthetic Opioid Surge. A native of Tennessee, Jones received his undergraduate degree from the University of Tennessee, Knoxville, and his law degree from the Cumberland School of Law at Samford University in Birmingham, Alabama. He joined the U.S. Air Force JAG Corps, where he served in various positions for over 11 years, and remains in the Air Force in a reserve capacity, stationed out of Joint Base Andrews, Maryland.
AUSA Alan Kirk joined the Knoxville office to concentrate on violent crime and narcotics prosecutions. A native of Birmingham, Alabama, he received an undergraduate degree from Auburn University and law degree from the Cumberland School of Law. Kirk joined the U.S. Army Judge Advocate General’s Corp and was most recently stationed at Fort Jackson in South Carolina.
AUSA Todd Martin joined the Greeneville office to prosecute violent crime offenders. He graduated from New River Community College and East Tennessee State University before attending law school at the University of Memphis. He also completed his Master of Laws at Boston University. Prior to becoming an attorney, he served as a deputy sheriff and medic for the Bristol, Virginia, Sheriff’s Office, a patrol officer with the Bristol, Tennessee, Police Department, and a reserve deputy sheriff with the Shelby County Sheriff’s Office. After this, Martin was appointed as an Assistant District Attorney for the Second Judicial District of Tennessee. During that time, he joined the U.S. Army Reserves as a Judge Advocate. Prior to joining the U.S. Attorney’s Office, he served as a Firearms, Explosives and Arson Attorney with the Bureau of Alcohol, Tobacco, Firearms and Explosives for 12 years.
AUSA Tom McCauley currently serves as a Special AUSA in the Greeneville office, responsible for violent crime cases in Johnson City. He is a graduate of the Duncan School of Law in Knoxville, Tennessee. Prior to becoming a Special AUSA, McCauley was an Assistant Public Defender in the Fourth Judicial District. His experience before and during law school includes serving as a patrol officer, detective, DEA Task Force Agent, narcotics investigator, SWAT sniper, and firearms instructor. He has also served as a POST certified instructor at the Regional Law Enforcement Academy in Greeneville, Tennessee, and the Advanced Undercover Operative Coarse at the Regional Counterdrug Training Academy in Meridian, Mississippi.
AUSA Gretchen Mohr joined the Monetary Recovery Unit in the Knoxville office to work on asset forfeiture and financial matters. She graduated from Middle Tennessee State University and received a law degree from New York Law School in New York City. After law school, she served as a law clerk for the New York Supreme Court. Most recently, she spent five years prosecuting street and violent crime for the Manhattan District Attorney’s Office.
AUSA Andrew Parker joined the Greeneville office to prosecute violent crime offenses. Parker is from the Tampa Bay area of Florida, where he was a state prosecutor for six years. He is a graduate of the College of Charleston and Florida Coastal School of Law.
AUSA Kevin Quencer joined the Organized Crime Drug Enforcement Task Force Unit in the Knoxville office. He earned his undergraduate degree from Dartmouth and his law degree from Washington and Lee. After law school, Kevin served as an officer in the U.S. Navy Judge Advocate General’s Corps for five years, on active duty, as a trial attorney and appellate law clerk. Remaining a Lieutenant Commander in the U.S. Navy Reserves, he resigned his active duty commission to join the U.S. Attorney’s Office for the Southern District of Florida in his native Miami, Florida. There he focused on prosecuting international drug traffickers in South America and the Caribbean as well as members of a designated Foreign Terrorist Organization, the FARC, operating in the jungles of Colombia.
AUSA Joe Rodriguez joined the Affirmative Civil Enforcement Unit in the Knoxville office. He has a bachelor’s degree in political science from St. Edward’s University in Austin, Texas. He attended law school at Indiana University in Bloomington, Indiana, where he served on the law journal, moot court board, and was treasurer of the Latino Law Student Association. After graduating from law school, he worked as a civil litigation associate with a law firm in Columbus, Ohio, before becoming an AUSA in the Western District of Texas in San Antonio. In addition to maintaining a caseload of mostly civil defensive litigation, he served as a Deputy Civil Chief for the Western District of Texas, supervising all defensive litigation in San Antonio, Austin, and elsewhere throughout the district.
AUSA Brian Samuelson joined the Appellate Unit in the Knoxville office. He received his undergraduate degree from the University of Wisconsin and his law degree from Harvard Law School. After law school, he clerked for the Alaska Supreme Court and the Ninth Circuit Court of Appeals. He most recently was with a law firm in Portland, Oregon.
“It is with pride and pleasure that I welcome each of these individuals as part of the team of experienced and dedicated attorneys in the U.S. Attorney’s Office for the Eastern District of Tennessee,” said U.S. Attorney J. Douglas Overbey.
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U-Haul and Employee Plead Guilty to Felony Violations of the Hazardous Materials RegulationsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams today announced that U-Haul Company of Pennsylvania and Miguel Rivera, the general manager of U-Haul’s Hunting Park location, pled guilty today to two felony counts of violating hazardous materials regulations.
In July 2014, a propane cylinder attached to a food truck exploded in Philadelphia, killing two people and injuring others. A subsequent investigation revealed that U-Haul Company of Pennsylvania had willfully and recklessly allowed untrained workers to handle propane, a hazardous material, in violation of its statutory obligations. Miguel Rivera aided and abetted the company's violations. As the manager, Rivera was fully trained and certified to handle propane, yet he requested or required the untrained employees to fill propane cylinders for customers, knowing that they had not completed (or even started) training. Over a three-week period seen in surveillance footage, untrained workers filled propane cylinders more than 60 times, in violation of the law and U-Haul Company of Pennsylvania's own policy.
“The hazardous materials regulations exist to protect public safety, and today’s guilty pleas are an important step towards ensuring compliance with those protocols,” said First Assistant U.S. Attorney Williams. “We hope that these guilty pleas afford the victims in this tragedy some measure of closure to this long and difficult chapter in their lives.”
The case was investigated by the Department of Transportation Office of Inspector General, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Philadelphia Police and the Philadelphia Fire Department. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Two South Texas Doctors Sentenced to Prison for Roles in Separate Multi-Million Dollar Medicare Fraud SchemesRead the Press Release
Two Houston, Texas physicians were sentenced to 25 and three-year prison terms for their roles in separate schemes to defraud Medicare out of payments for medical services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Region and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
US v. Ramirez S.D.T.X. Docket No. 16-cr-00258
John P. Ramirez, 65, of Houston, Texas, a physician, was sentenced to serve 25 years in prison followed by three years of supervised release by U.S. District Judge David Hittner of the Southern District of Texas. Judge Hittner also ordered the defendant to pay $26,729,041.39 in restitution. John Ramirez was convicted at trial in the Southern District of Texas along with his co-defendants Ann Shepherd and Yvette Nwoko.
According to evidence presented at trial, from in or around December 2011 to in or around August 2015, John Ramirez and his co-defendants conspired and schemed to defraud Medicare out of payments for medical services. Co-defendant Ann Shepherd owned and operated Southwest Total Medical Inc., a purported medical clinic doing business as Amex Medical Clinic in Houston. Shepherd, along with Nwoko, sold medical orders and other documents Dr. Ramirez signed to home-health agencies in and around Houston. Dr. Ramirez falsely certified in these medical orders information about the patient’s medical condition and need for medical services. Co-conspirators at home-health agencies then used the false and fraudulent paperwork signed by Dr. Ramirez and sold by Ann Shepherd and Yvette Nwoko to bill to, and receive payment from, Medicare for medical services that were not medically necessary or not provided.
In all, Dr. Ramirez and his co-defendants caused Medicare to pay approximately $17 million on false and fraudulent claims submitted during the charged conspiracy.
Ann Shepherd, 62, of Houston, Texas was also sentenced to 30 years in prison on Jan. 24, by the Honorable David Hittner. Judge Hittner also ordered Shepherd to pay $20.928 million in restitution and to forfeit $250,000. Nwoko will be sentenced on April 18.
U.S. v. Do S.D.T.X. Docket No. 17-cr-00417
Anh Do, M.D., 78, of Houston, Texas was sentenced to serve 36 months in prison followed by three years of supervised release by U.S. District Judge Andrew Hanen of the Southern District of Texas. Judge Hanen also ordered the defendant to pay $1,875,219.00 in restitution and to forfeit $274,213.46. Do pleaded guilty to one count of conspiracy to commit healthcare fraud on Aug. 28, 2018.
As part of his guilty plea, Do admitted to fraudulently signing Plans of Care and other medical documents that falsely and fraudulently certified and re-certified patients for home-health services. Do and his co-conspirators made it appear as if patients qualified for and received home-health services under Medicare when those services were not medically necessary, not provided or both. Medicare paid approximately $10 million on claims for home-health services in which Do was listed as the patient’s attending physician.
Do and his co-conspirators also billed Medicare for diagnostic tests that they knew were not medically necessary, not provided or both. Do and his co-conspirators falsely and fraudulently signed medical documents to make it appear as if the patients both needed and received the diagnostic tests. Medicare paid approximately $2 million on claims for these diagnostic tests.
The FBI, HHS-OIG and the Texas Attorney General’s MFCU conducted both investigations. Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tina Ansari of the Southern District of Texas are prosecuting the Ramirez case. Trial Attorneys Devon Helfmeyer, Scott Armstrong and Drew Pennebaker of the Criminal Division’s Fraud Section are prosecuting the Do case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two Hondurans Sentenced to Prison for Scheme to Facilitate Employment of Undocumented Aliens in Construction Industry and to Evade Payroll TaxesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Fanny Melina Zelaya-Mendez (39, Jacksonville) and Roger Omar Zelaya-Mendez (34, Jacksonville) to federal prison terms for crimes arising out of a scheme to facilitate the employment of undocumented aliens in the construction industry and to evade state and federal payroll taxes and workers’ compensation laws.
Fanny Zelaya-Mendez was sentenced to four years in federal prison for three counts of conspiracy to commit wire fraud, one count of conspiracy to defraud the IRS, and one count of aggravated identity theft. Roger Zelaya-Mendez was sentenced to two years in prison for one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. The court ordered the Zelaya-Mendezes to forfeit $399,776.43 and two vehicles, all of which was seized during the investigation. The court also ordered them to forfeit a total of $1,033,485 in proceeds from the wire fraud offenses and to pay restitution to the IRS for a tax loss totaling $6,536,796. The Zelaya-Mendezes, who are siblings, are Honduran citizens unlawfully present in the United States. They had previously pleaded guilty to the offenses.
According to court documents, the fraudulent scheme involved the Zelaya-Mendezes establishing shell companies for which they obtained minimal workers’ compensation insurance covering only a few employees. They then entered into agreements with numerous construction contractors to provide hundreds of workers, most of whom were undocumented aliens, for the contractors’ projects.
The contractors wrote payroll checks to the shell companies for the work performed by the workers. The Zelaya-Mendezes cashed the checks, kept 4% as a fee, and distributed the remaining cash to work crew leaders, who then paid the workers in cash. By obtaining and paying the workers through the shell companies, the contractors could disclaim responsibility for ensuring that the workers were legally authorized to work in the United States, that adequate workers’ compensation insurance was provided, and that required payroll taxes were paid.
Between June 2016 and April 2018, a total of $25,837,141 of payroll passed through the shell companies and the Zelaya-Mendezes’s 4% fee totaled $1,033,485. The premiums for a workers’ compensation insurance policy covering hundreds of workers and a payroll of $25,837,141 would have been approximately $6.6 million. Neither the Zelaya-Mendezes nor the contractors remitted payroll taxes to the IRS. According to the IRS, the estimated payroll taxes due on total wages of $25,837,141 is $6,536,796.
When Fanny Melina Zelaya-Mendez was arrested on May 4, 2018, she gave a false name to an immigration officer and claimed to be a U.S. citizen who had been born in Puerto Rico. She also presented a valid Florida Identification Card she had obtained in the false name. Subsequent investigation revealed that the identity she had adopted was for a real U.S. citizen who was born in Puerto Rico and that she had obtained the Florida ID card using a genuine Puerto Rico birth certificate and a genuine Social Security card.
“These sentences should remind anyone who circumvents our nation’s immigration laws and exploits the financial industry that they will be held accountable,” said HSI Tampa Special Agent in Charge James C. Spero.
“Today’s sentences should send a message to those involved in the business of evading employment taxes,” said Special Agent in Charge Mary Hammond of the IRS Criminal Investigation, Tampa Field Office. “Let this be a warning to all that law enforcement will not allow construction contractors to gain an unfair advantage by breaking the law.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Three Arrested in Jamestown Meth RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Mark R. Maio, 34, Brittany L. Dellahoy, 28, both of East Randolph, NY, and Brandon Smith, 32, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, methamphetamine and cocaine, and maintaining a drug involved premises. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the complaint, since March 2018, the Jamestown Police Department Narcotics Unit has been investigating defendants Maio and Smith for distributing methamphetamine in and around the City of Jamestown, NY. During the course of the investigation, the narcotics unit conducted controlled purchases of narcotics from defendant Maio. Maio and Smith have been arrested by Jamestown Police on multiple occasions for violations of New York State Penal Law relating to the sale and possession of methamphetamine.
On January 24, 2019, the Southern Tier Regional Drug Task Force executed a state search warrant at the Main Street residence of defendants Maio and Dellahoy. During the search, Maio and defendant Smith were present in the residence. As officers executed the search, Smith attempted to leave but was detained. Officers searched Smith and recovered quantities of crystal methamphetamine and marijuana. Maio and Dellahoy were also searched. Officers recovered crack cocaine and a large amount of cash from Maio.
During the search of the residence, officers recovered more marijuana and crystal methamphetamine, as well as a digital scale, and other drug packaging and paraphernalia.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and are being held pending a detention hearing on February 1, 2019.
The complaint is the result of an investigation by the Jamestown Police Department, under the direction of Chief Harry Snellings; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Tax Preparer SentencedRead the Press Release
KANSAS CITY, KAN. – A tax preparer in Kansas City, Kan., was sentenced Tuesday to six months in custody and six months in home confinement for preparing tax returns containing false information, U.S. Attorney Stephen McAllister said.
Shermaine C. Canady, 44, Kansas City, Kan., pleaded guilty to one count of filing false income tax returns. In her plea, she agreed to pay $158,167 in restitution to the government.
Canady admitted that in one instance she prepared a return for a client containing false information in order to claim a $5,187 Earned Income Tax Credit and a Child Tax Credit of $1,000.
McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
St. Francis Woman Charged with Involuntary Manslaughter and Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter and Child Abuse.
Chelsea Okiya Wi Nixon, age 22, was indicted on December 11, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 8, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 18, 2018, Nixon unlawfully killed another human being, a minor child, by asphyxiating the child in a grossly negligent manner. The Indictment further alleges that Nixon did abuse, expose, torture, torment, and cruelly punish the minor child.
The charges are merely accusations and Nixon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Nixon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Southeastern Connecticut Heroin Trafficker Sentenced to 12 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL LUCIANO, 33, of New London, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 144 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from an investigation that began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January 2016. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that Luciano regularly obtained large quantities of heroin from sources in Rhode Island and Massachusetts and distributed the drug through a network of street-level dealers in southeastern Connecticut.
Luciano has been detained since his arrest on November 14, 2017. On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging Luciano and 20 other individuals with various heroin trafficking offenses. On June 27, 2018, Luciano pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin.
Luciano’s criminal history includes a federal conviction in the District of Rhode Island for possession with intent to distribute heroin. In September 2010, he was sentenced to 18 months of imprisonment for that offense.
This matter is being investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Jocelyn Courtney Kaoutzanis.
Sioux Falls Man Sentenced for Tax FraudRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of 25 counts of False Claims, and 5 counts of Wire Fraud, was sentenced on January 4, 2019, by U.S. District Judge Karen E. Schreier.
Jacques Eviglo, d/b/a Global Income Tax Services, age 37, was sentenced to 60 months in federal prison for Counts 1 through 25, 108 months in federal prison for Counts 26 through 30, all to be served concurrently, followed by 2 years of supervised release, restitution in the amount of $2,543,286.41, and a special assessment to the Federal Crime Victims Fund in the amount of $3,000.
Eviglo was indicted by a federal grand jury on January 23, 2018.
The conviction stemmed from incidents between February 21, 2015, and March 14, 2017, when Eviglo, doing business as Global Income Tax Services located in Sioux Falls, prepared and electronically filed federal income tax returns for clients. Eviglo claimed large, false itemized deductions on hundreds of those returns. These false deductions were used to lower the federal tax liability on the returns and falsely inflate the refund amounts. The clients did not provide Eviglo with the false information he submitted to the United States government.
Eviglo then utilized a third party company as an intermediary to receive and disburse his clients’ federal income tax refund payments instead of having the payments directly deposited into his clients’ bank accounts. Unbeknownst to his clients, Eviglo skimmed additional “fees” from those refund payments. Eviglo kept the skimmed portion for himself. The total amount Eviglo skimmed exceeded $800,000 over a four-year period of time.
This case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Ann M. Hoffman and Criminal Division Deputy Chief John E. Haak prosecuted the case.
Eviglo was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 20, 2018, by U.S. District Judge Karen E. Schreier.
Khio Khaoon, age 54, was sentenced to 12 months and 1 day in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Khaoon was indicted by a federal grand jury on April 4, 2018. He pled guilty on September 28, 2018.
The conviction stemmed from an incident on September 29, 2017, when law enforcement executed a search warrant at Khaoon’s residence and found a Harrington & Richardson .32 double-action revolver, a Stevens-Springfield .22 caliber Rifle, and 225 rounds of ammunition. Khaoon was prohibited from possessing the guns because he had previously been convicted of a serious misdemeanor in 2003 for carrying weapons and possession of amphetamine, as well as in 2009 for felony possession of a controlled substance.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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 the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Sioux Falls Police Department, the South Dakota Department of Game, Fish & Parks, and the federal Bureau of Alcohol, Tobacco, Explosives, and Firearms. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Khaoon was immediately turned over to the custody of the U.S. Marshals Service.
Shreveport felon pleads guilty to lying on an application to buy a firearmRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Shreveport felon pleaded guilty on January 15, 2019 to lying on an application to buy a firearm at a pawnshop.
Jacory Dejuan Robinson, 23, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of providing a false statement to a firearm dealer. According to the guilty plea, Robinson filled out paperwork on March 28, 2018 at a Shreveport pawnshop to purchase a handgun. He marked “no” in the box asking if he had ever been convicted of misdemeanor domestic violence, even though he had previously pleaded guilty on May 2, 2017 to one count of misdemeanor simple battery of his girlfriend in Greenwood, Louisiana.
Robinson faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for May 1, 2019.
The ATF conducted the investigation. Assistant U.S. Attorney Aaron J. Crawford is prosecuting the case.
Project Safe Neighborhoods (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.
Rumford Man Sentenced to 3 Years of Probation for Social Security Fraud and Theft of Public MoneyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Raymond Brenneis, 59, of Rumford, Maine, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to three years of probation for Social Security fraud and theft of public money. He was also ordered to pay $51,289 in restitution to the Social Security Administration (“SSA”), and $2,376 in restitution to the Maine Department of Health & Human Services (“ME/DHHS”).
According to Court records, from July 1995 to present, Brenneis received Supplemental Security Income (“SSI”) benefits, which are paid to people with limited income who are blind, disabled or elderly. From April 2015 through January 2017, Brenneis also received Supplemental Nutritional Assistance Program (“SNAP”) benefits and Maine State SSI Supplement benefits. From February 2011 through January 2017, Brenneis lived with his wife whose receipt of Social Security Disability Insurance (“SSDI”) benefits rendered him ineligible for the benefits he received during that period. Brenneis falsely represented to the SSA and ME/DHHS that he was living alone and not receiving help or money from any other person during this time. Brenneis later admitted to agents that he concealed his living situation from SSA and ME/DHHS because he knew his wife’s benefits would make him ineligible to receive SSI, SNAP benefits, and other state assistance.
The investigation was conducted by SSA, Office of the Inspector General, as well as ME/DHHS, Fraud Investigation & Recovery Unit.
Rosebud Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, woman convicted of Child Abuse was sentenced on January 3, 2019, by U.S. District Judge Roberto A. Lange.
Maria Big Crow, age 26, was sentenced to 14 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Big Crow was indicted by a federal grand jury on June 12, 2018. She pled guilty on October 18, 2018.
The conviction stemmed from an incident that occurred on October 22, 2017, near Rosebud. After consuming multiple alcoholic beverages, Big Crow and several passengers, including two small children, departed their location in a vehicle operated by Big Crow. Big Crow lost control of the vehicle, after drifting onto the shoulder and overcorrecting, causing the vehicle to leave the roadway and roll. One of the children was seriously injured in the wreck.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Big Crow was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assault With a Dangerous Weapon was sentenced on January 22, 2019, by U.S. District Judge Roberto A. Lange.
Ervin Burning Breast, Jr., age 23, was sentenced to 41 months in federal prison, followed by 2 years of supervised release. Burning Breast was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
The conviction stemmed from an incident that occurred in Rosebud on July 2, 2017, wherein Burning Breast assaulted another man with brass knuckles. The victim suffered serious injuries, including a fractured orbital bone, as a result of the assault.
The case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Burning Breast was immediately turned over to the custody of the U.S. Marshals Service.
Retired Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police Trooper pleaded guilty yesterday in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Daren DeJong, 57, of Uxbridge, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for May 1, 2019. DeJong was arrested on July 25, 2018, and indicted on Sept. 6, 2018.
DeJong, who is currently retired, was a Trooper assigned to Troop E, which is responsible for enforcing criminal law and traffic regulations along the Massachusetts Turnpike, Interstate I-90. DeJong received overtime pay for hours that he either did not actually work at all, or shifts in which he departed one to seven hours early.
The conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative. Both initiatives are intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. DeJong was required to work the entire duration of the shifts – either four or eight hours – and truthfully report the date, time and sector of deployment on the citations issued during the shift. DeJong concealed the fraud by submitting citations that were issued outside the overtime shift, altered the citations to create the appearance that citations were issued during the overtime shift, and/or submitted citations that were never issued and never took place.
Trooper DeJong earned $200,416 in 2016, which included approximately $68,394 in overtime, of which more than $14,000 was attributable to AIRE and X-Team shifts that DeJong either left early or did not show up for.
In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Thus far, eight MSP troopers have been charged in the ongoing investigation, seven of whom have pleaded guilty or have agreed to do so.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.
Registered Sex Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
PROVIDENCE, RI – A registered sex offender on federal supervised release who was found to be in possession of child pornography less than 5 months after completing a 7-year federal prison sentence on child pornography charges has been sentenced to 120 months in federal prison.
During a routine home visit on January 24, 2018, a United States probation officer observed inappropriate materials on a cell phone belonging to Robert L. MacGregor, 56, of Providence. A forensic examination of the cell phone by members of the Rhode Island State Police Internet Crimes Against Children (RI ICAC) task force determined that MacGregor was in possession of approximately 100 images of child pornography.
MacGregor was arrested on February 7, 2018, by members of the ICAC task force and agents from Homeland Security Investigations (HSI). He pleaded guilty on September 27, 2018, to possession of child pornography.
At sentencing, on January 11, 2019, U.S. District Court Chief Judge William E. Smith also ordered MacGregor to serve a term of lifetime supervised release upon completion of his term of incarceration. MacGregor pleaded guilty on September 27, 2018, to possession of child pornography.
MacGregor’s sentence is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of HSI for New England Peter C. Fitzhugh, and Superintendent of the Rhode Island State Police Colonel Ann C. Assumpico.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Rapid City Man Sentenced for Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 2, 2019, by U.S. District Judge Roberto A. Lange.
Ehoni Johns, age 21, was sentenced to 30 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Johns was indicted by a federal grand jury on August 13, 2018. He pled guilty on November 6, 2018.
The conviction stemmed from when Johns, who is required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration between November 6, 2017, and January 6, 2018.
This case was investigated by the U.S. Marshal Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Johns was immediately turned over to the custody of the U.S. Marshals Service.
Power Plant Owner Pleads Guilty to Failing to Remove 224,000 Square Feet of Asbestos Before Demolishing Power Plant for Scrap MetalRead the Press Release
CINCINNATI – Mark Harris, 59, of Versailles, Ky., pleaded guilty in U.S. District Court to knowingly failing to remove asbestos in a South Point, Ohio electric power plant.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jennifer Lynn, Special Agent in Charge, Criminal Enforcement Program, United States Environmental Protection Agency (EPA), Laurie A. Stevenson, Director, Ohio EPA and Ohio Attorney General Dave Yost announced the plea entered into yesterday afternoon before U.S. District Judge Susan J. Dlott.
Harris was the majority owner and operator of South Point Biomass Generation LLC. He acquired the coal burning electric power plant on Collins Avenue in South Point to convert it to a power generating plant that would use renewable energy.
The plant contained seven dormant coal-burning boilers along with their associated piping.
According to court documents, Harris commissioned an asbestos survey on the boiler room in 2008, which revealed nearly 224,000 square feet of materials containing asbestos.
Beginning in 2011 through October 2013, Harris and others removed approximately two and a half million pounds of metal from the facility and sold it as scrap. Harris knew significant portions of the metal removed were covered in asbestos.
He directed others to help him cut through the asbestos labeling on several pipes in order to obtain the scrap metal underneath. The asbestos was stripped from the metal while dry and left on each of the six floors of the power plant.
Harris pleaded guilty to one count of violating the Clean Air Act.
The parties involved have recommended two days in prison, 58 days of house arrest and 200 hours of community service as a sentence in this case. Judge Dlott will consider that recommendation at a future sentencing hearing.
“The defendant knew the rules regarding the legal removal of asbestos containing materials, but ignored them,” said Jennifer Lynn, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “In this way, he threatened not only the environment but the safety of those working at the site and the general public. This case demonstrates that EPA and its partner agencies will not abide those who try to make money by breaking the law.”
“This man will answer for his misdeeds thanks to a successful collaboration between my office, the Ohio Environmental Protection Agency, the U.S. EPA and the U.S. Attorney’s Office,” Ohio Attorney General Yost said. “Laws outlining the proper removal of asbestos are in place to protect human health and environment. People who choose to ignore these laws will face criminal consequences.”
U.S. Attorney Glassman commended the investigation of this case by the U.S. EPA, Ohio EPA, and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case.
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Port Barre man sentenced to 24 months for possessing child pornography on home computerRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Port Barre man was sentenced on January 2, 2019 to two years in prison for possessing child pornography on his computer and an external hard drive.
John G. Bertrand, 35, of Port Barre, Louisiana, was sentenced by U.S. District Judge Dee. D. Drell on one count of possession of child pornography. He was also sentenced to seven years of supervised release and is required to register as a sex offender. According to the July 25, 2018 guilty plea, law enforcement agents identified an IP address associated with Bertrand’s residence as downloading child pornography from the internet. Agents searched Bertrand’s home on December 15, 2016, and found a MacBook laptop containing 491 images and 88 video files of child pornography. They also found an external hard drive containing 292 images and 43 video files of child pornography. Bertrand admitted to agents that he had downloaded and stored the child pornography on these devices.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Pierre Woman Charged with Harboring a FugitiveRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, woman has been indicted by a federal grand jury for Concealing Person from Arrest.
Carmen Burgee, age 52, was indicted on December 11, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 31, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 14, 2016, and October 12, 2018, Burgee harbored and concealed an individual who had a felony arrest warrant issued for his apprehension.
The charge is merely an accusation and Burgee is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Burgee was released on bond pending trial. A trial date has not been set.
Pierre Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Loren Goodlow, age 29, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 8, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 28, 2018, Goodlow did forcibly assault, resist, oppose, impede, and interfere with a Bureau of Indian Affairs Correction Officer, while they were performing their official duties.
The charge is merely an accusation and Goodlow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Goodlow was released on bond pending trial. A jury trial has been scheduled for April 2, 2019.
Pelahatchie Man Pleads Guilty to Producing Child PornographyRead the Press Release
Jackson, Miss. – Kevin Douglas Jenkins, 35, of Pelahatchie, pled guilty on Friday, before Chief United States District Judge Daniel P. Jordan III, to the production of child pornography and the production of child pornography by a person who has custody of a minor, announced United States Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and Mississippi Attorney General Jim Hood.
Jenkins was charged after the minor child came forward to disclose Jenkins’ actions. A forensic examination revealed videos of Jenkins engaged in sexually explicit conduct with the minor child. Jenkins was indicted by a federal grand jury in November.
Jenkins will be sentenced by Judge Jordan on April 26, 2019, at 9:00 a.m. The maximum penalties for the crimes charged are 30 years in prison and a $250,000 fine for each count.
The case was investigated by the FBI Jackson Division's Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General's Office, and officers from the Prentiss County Sheriff's Office. The Rankin County Sheriff’s Office also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Kimberly Purdie.
Operation Panamera Defendant Sentenced to 5 Years in PrisonRead the Press Release
PROVIDENCE, RI – A former West Warwick man who admitted to assisting the ring-leader of a drug trafficking conspiracy that trafficked dozens of kilograms of fentanyl, cocaine, marijuana, and psilocybin mushrooms, dubbed “Operation Panamera,” was sentenced today to 60 months in federal prison.
At the time of his guilty plea, Jamaal M. Dublin, 35, admitted to the Court that he coordinated with the ring-leader of the drug trafficking conspiracy, Ramon Delossantos, 26, of Cumberland, to distribute at least 500 grams of cocaine and to collect payment for significant quantities of cocaine distributed by members of the drug trafficking conspiracy.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Dublin to serve 4 years supervised release upon completion of his term of incarceration. Dublin pleaded guilty on August 4, 2018, to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine.
Dublin’s sentence is announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle, and Lieutenant Colonel Kevin M. Barry, Acting Superintendent of the Rhode Island State Police.
According to court records, Delossantos, a Dominican national who maintained strong ties to the Dominican Republic, was responsible for distributing at least 50 kilograms of fentanyl and cocaine with the use of “runners.” Delossantos’ mode of transportation was a 2010 Porsche Panamera Turbo. Delossantos was arrested on October 2, 2017, and his Porsche Panamera was seized by law enforcement.
In total, 23 individuals were arrested and charged in the fall of 2017 with participating in the drug trafficking conspiracy.
Delossantos pleaded guilty on June 14, 2018, to conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of cocaine. He is scheduled to be sentenced on March 15, 2019.
During the course of the investigation, which began in early 2017, more than 23 kilograms of fentanyl, 18 kilograms of cocaine, 11 kilograms of marijuana, and two kilograms of psilocybin mushrooms were seized. The seizures were made as the drugs moved through the U.S. Postal Service, during traffic stops, and during the execution of court-authorized searches of residences, storage units and vehicles.
The case is being prosecuted by Assistant U.S. Attorneys Milind M. Shah and Paul F. Daly, Jr.
The investigation was led by agents from by the Drug Enforcement Administration and members of the Rhode Island State Police High Intensity Drug Trafficking Area Task Force.
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Oklahoma City Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
OKLAHOMA CITY – RICHARD SPILLANE, 30, of Oklahoma City, was sentenced today to 30 years in prison for producing child pornography, announced Robert J. Troester of the U.S. Attorney’s Office.
According to a complaint filed on July 16, 2018, law enforcement officers determined that an internet user with an email address linked to Mr. Spillane was engaging in conversations and sharing photographs depicting children engaged in sexually explicit conduct on a network often used to receive and distribute child pornography. Mr. Spillane was arrested on July 17, 2018, and has remained in federal custody since his arrest.
On August 7, 2018, a federal grand jury returned a six-count indictment charging Mr. Spillane with two counts of producing child pornography and four counts of knowingly receiving child pornography. According to the indictment, between October 15, 2017, and July 17, 2018, Mr. Spillane photographed two minors, "John Doe #1" and "John Doe #2," engaging in sexually explicit conduct. The indictment also alleged he received images via the internet on four specific days in June and July of 2018 that showed children engaging in sexually explicit conduct.
On October 31, 2018, Mr. Spillane pleaded guilty to Count 1 of the indictment and admitted he produced photographs of "John Doe #1" engaging in sexually explicit conduct and distributed them via the internet.
At a hearing this morning, U.S. District Judge Robin J. Cauthron sentenced Mr. Spillane to 30 years in prison—the maximum permitted by law. The judge underscored the seriousness of the offense and the need to deter others from engaging in similar conduct. The sentence includes five years of supervised release following Mr. Spillane’s imprisonment. On April 30, the court will determine the amount of restitution Mr. Spillane will be required to pay to his victims.
This case is the result of an investigation by the FBI and was prosecuted by Assistant U.S. Attorney Julia E. Barry. It is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court records for further information.
Ohio Man Who Distributed Heroin in Western PA will Remain Detained Pending SentencingRead the Press Release
PITTSBURGH, Pa. – An Ohio resident pleaded guilty in federal court in Pittsburgh to one count of conspiracy to distribute heroin and one count of conspiracy to launder money, United States Attorney Scott W. Brady announced today.
James Nelson, 31, of Wellsville, Ohio, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from January 2015 to February 2016, Nelson conspired with others to possess with intent to distribute and to distribute one kilogram or more of heroin. He also conspired to launder $60,000 of the proceeds of the heroin trafficking.
Judge Cercone scheduled sentencing for May 20, 2019, at 11:30 a.m. The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of not more than $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Hopewell Township Police Department, Beaver County District Attorney’s Office, Aliquippa Police Department, and the Beaver County Sheriff’s Office conducted the investigation that led to the prosecution of Nelson.
Ohio Man Indicted for Attempting to Provide Material Support to ISIS and Attempting to Commit a Violent Hate Crime Attack Against a Toledo SynagogueRead the Press Release
A federal grand jury sitting in the Northern District of Ohio returned a three-count indictment charging an Ohio man with attempting to provide material support to ISIS, attempting to commit a hate crime, and possessing firearms in furtherance of a crime of violence stemming from his plan to attack in a synagogue in the Toledo area.
Damon M. Joseph, 21, also known as Abdullah Ali Yusuf, of Holland, Ohio, was arrested in December after he took possession of two semi-automatic rifles.
The announcement was made by Assistant Attorney General for National Security John C. Demers, Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S Attorney Justin E. Herdman for the Northern District of Ohio and Acting Special Agent in Charge Robert E. Hughes of the FBI’s Cleveland Division.
According to documents filed in court, Joseph drew the attention of law enforcement in 2018 by posting photographs of weapons and various messages in support of ISIS on his social media accounts, as well as a photograph originally distributed by the media wing of ISIS. This activity led to multiple interactions between Joseph and undercover FBI agents.
During his communication with undercover agents, Joseph stated his support for ISIS and produced propaganda in support of ISIS recruitment. In September, Joseph made videos that he sent to the undercover agent, hoping they would be used to recruit people to ISIS. He also complained that the mosque he attended was critical of ISIS.
Joseph stated his support for violent attacks and operations. For example, on Oct. 21, 2018, Joseph expressed support for “martyrdom operations” and stated: “what must be done, must be done” and “there are always casualties of war.”
On Oct. 30, Joseph and the undercover communicated regarding the mass shooting at a Jewish synagogue in Pittsburgh. Joseph stated: “I admire what the guy did with the shooting actually.” He added: “I can see myself carrying out this type of operation inshallah. They wouldn[’]t even expect [an attack] in my area...”
Over the next few weeks, Joseph continued stating he wanted to participate in an attack on behalf of ISIS. On Dec. 2 he forwarded a document that laid out his plans for an attack, using the name “Abdullah Ali Yusuf” for himself. In the document, he described plans to attack where the greatest number of people are gathered, inflict the most casualties during the attack and make sure no one escaped.
Joseph then stated that he did not see this necessarily as “a martyrdom operation” as his plan accounted for an escape and potential combat with law enforcement.
On Dec. 4, Joseph stated he was deciding between two synagogues in the area to attack. He stated the choice would depend on “Which one will have [the] most people, what time and what day. Go big or go home.”
The next day, Joseph met with an undercover FBI agent and discussed conducting a mass shooting at a synagogue. Joseph identified two synagogues he viewed as targets in the greater Toledo area, and discussed the types of weapons he believed would be able to inflict mass casualties.
Joseph made written notes about the firearms he wanted and provided them to the undercover agent, stating he wanted AR 15s, AK 47s, Glocks and ammunition.
On Dec. 6, Joseph met with an undercover agent in the Toledo area and stated it would be ideal to attack two synagogues, but that it was probably more realistic to only attack one. Joseph also stated specifically that he wanted to kill a rabbi.
Also on Dec. 6, Joseph wrote the name and address of the synagogue where the attack was to occur. Joseph stated he had conducted research to determine when the Jewish sabbath was so that more people would be present. Joseph pulled up photographs of the inside of the synagogue and said he wanted the attack to begin in the sanctuary. Joseph told the undercover agent that he would hide two semi-automatic rifles at his house once the undercover purchased them.
Later that day, the undercover agent told Joseph that he purchased rifles for the attack. The two met on Dec. 7 at a predetermined location and Joseph took a black duffel bag containing two semi-automatic rifles, which had been rendered inoperable by law enforcement officers so that they posed no danger to the public. Joseph was then arrested.
An indictment is only a charge, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Joint Terrorism Task Force, which is comprised of members of the FBI, Homeland Security and Investigations, U.S. Customs and Border Protection, Ohio State Highway Patrol and Toledo Police Department, is leading the ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler of the Northern District of Ohio, Trial Attorneys Josh Champagne and Kyle Phillips of the National Security Division’s Counterterrorism Section, and Trial Attorney Dana Mulhauser of the Civil Rights Division.
Northern Nevada Tax Return Preparer Sentenced to Five Years in Prison for Tax Fraud Conspiracy and Theft of Elder Client's MoneyRead the Press Release
RENO, Nev. – A Winnemucca tax preparer was sentenced today to a total of five years in federal prison for his role in a tax return conspiracy, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
“As tax season approaches, today’s sentence serves as a reminder that preparing or filing false tax returns is crime,” said U.S. Attorney Trutanich. “Our office will continue to work closely with the IRS to pursue justice when individuals attempt to evade tax obligations.”
“Mr. Bidegary used his knowledge as a former IRS employee to steal from his clients and the government,” said SAC Sullivan. “Mr. Bidegary does not represent the integrity of IRS employees and IRS-Criminal Investigation will continue to prosecute cases that bring harm to both the community and the government.”
Thomas Michael Bidegary, 67, a former IRS employee who co-owned Winnemucca Tax and Bookkeeping Service, a tax preparation and bookkeeping services business, previously pleaded guilty to conspiracy to commit tax fraud and theft of government money, related to two separate criminal indictments. In addition to the prison term, U.S. District Judge Robert C. Jones sentenced Bidegary to three years of supervised release.
Bidegary conspired with a co-defendant to prepare and file fraudulent individual income tax returns on behalf of clients. Beginning in at least 2009 and continuing through December 2014, he advised clients that by making small “investments” into various businesses he owned, the clients could decrease their annual taxable income and increase their tax refunds. As part of the scheme, after receiving checks from clients, Bidegary would prepare false tax forms for the corresponding tax year that included large fictitious business losses in order to reduce the client’s taxable income and obtain a larger refund than what the client was entitled to receive. As a result of the false tax returns, he caused a tax loss of approximately $259,880.
In a separate criminal case filed against Bidegary, he prepared and filed an unauthorized tax return on behalf of an elderly woman in Battle Mountain, Nevada. After receiving the $12,500 tax refund, he deposited the check into a bank account which was then converted for his own personal use.
The case was investigated by the IRS-Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Sue Fahami.
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North Las Vegas Man Sentenced to 10 Years in Prison for Distributing Child Pornography on Social Media SiteRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas resident was sentenced to 10 years in federal prison for distributing images of child pornography to his Tumblr account, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
Johne Lewis Owens II, 43, of North Las Vegas, previously pleaded guilty to one count of distribution of child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey ordered a lifetime term of supervised release.
Between November 2015 and May 2016, Owens admitted that he uploaded numerous images of child pornography to his Tumblr account. On May 14, 2017, Owens’ wife saw sexually explicit and sexual abuse photos of him and a child on his Tumblr account. His wife alerted law enforcement and filed a report. A search warrant on Owens’ Tumblr account revealed his account is “open” and may be viewed by the public. He confessed to taking photos and videos of sex acts with the child, then uploading them onto his Tumblr account thereby distributing the images over the internet.
The case was investigated by the FBI and the North Las Vegas Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.
If you have information regarding the sexual exploitation of children, contact the National Center for Missing & Exploited Children Cyber Tipline at www.cybertipline.org.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Newark-Based Company and CEO Agree to Pay $2.75 Million to Resolve Allegations of Government Contracting FraudRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that E.M. Photonics, Inc. (“EMP”) and its Chief Executive Officer, Eric Kelmelis, have agreed to pay $2.75 million to resolve allegations that they violated the False Claims Act by seeking disbursements from federal agencies for falsified labor costs and duplicative work in order to maximize charges to contracts awarded by federal agencies.
As alleged in the settlement agreement, from January 2009 to April 2014, EMP received funds under seven different contracts and grants awarded through the federal Small Business Innovation (“SBIR”) and Small Business Technology Transfer (“STTR”) programs. These two federal initiatives are the nation’s largest source of early stage/high risk funding for start-ups and small businesses. To be eligible, the small business must be American-owned, organized as a for-profit entity, and have less than 500 employees. There are eleven federal agencies that participate annually in the SBIR program and five that participate in the STTR program. Here, the contracts and grants at issue were awarded by a variety of federal agencies, including the Department of the Navy; Defense Advanced Research Projects Agency; Department of the Air Force; Department of Energy; and the National Aeronautics and Space Administration.
The government alleged that Kelmelis and EMP engaged in two principle schemes to defraud the SBIR/STTR programs. First, EMP and Kelmelis directed EMP employees, or caused others to direct EMP employees, to falsely complete timesheets for direct labor that the employees did not perform and submit false invoices and public vouchers to the funding agencies for direct labor that was not performed on these contracts and grants. Second, EMP and Kelmelis sought and received SBIR/STTR funding for essentially equivalent work already performed and funded by another government agency and falsely certified that such work was, in fact, non-duplicative. The government alleged that both of these schemes were designed to maximize charges to each contract or grant.
U.S. Attorney David C. Weiss said, “The SBIR and STTR programs are critical components to our government’s economic strategy to fuel innovative small businesses across the United States. Any small business who seeks to participate in these programs must do so with integrity. In this era of limited government resources, our Office is committed to ensuring that every dollar spent on these critical economic programs is properly used – the public demands nothing less.”
"One of the top investigative priorities of the Defense Criminal Investigative Service (DCIS) is to ensure the integrity of the U.S. Department of Defense's (DoD) procurement system, to include the DoD's research and development programs," stated Leigh-Alistair Barzey, Special Agent-in-Charge of the DCIS Northeast Field Office. "The settlement agreement announced today is the result of a joint investigative effort and is demonstrative of the DCIS' ongoing commitment to work with its law enforcement agency partners and the U.S. Attorney's Office, District of Delaware, to identify those who submit false claims to the federal government in order to fraudulently receive SBIR and STTR funding."
"I applaud the outstanding efforts of our agents and law enforcement partners, who successfully investigated this matter and with this agreement highlight the importance of protecting federal research funds," said NASA OIG Special Agent in Charge, Curtis Vaughn.
The claims resolved by the civil agreement are allegations only, and there has been no determination of civil liability.
This case was investigated by Assistant U.S. Attorneys Jamie M. McCall and Jennifer Hall. This matter was investigated by multiple agencies, including the Defense Criminal Investigative Service, National Aeronautics and Space Administration's Office of Inspector General, Naval Criminal Investigative Service Northeast Field Office, U.S. Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, and U.S. Department of Energy's Office of Inspector General.
Monroe felon sentenced to more than nine years in prison for possessing shotgunRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that a Monroe felon was sentenced on January 2, 2019 to more than nine years in prison for possessing a 12-gauge shotgun.
Adrian Terrell Riser, 32, of Monroe, Louisiana, was sentenced to 110 months imprisonment by U.S. District Judge Terry A. Doughty on one count of felon in possession of a firearm. He was also sentenced to three years of supervised release. According to the September 10, 2018 guilty plea, a Monroe Police Officer observed Riser on February 28, 2018 outside of an apartment on Richwood Road with a firearm in the left leg of his pants. He was arrested, and the weapon was found to be a Maverick Arms 12-gauge shotgun loaded with six rounds of ammunition. The defendant was previously convicted of possession with intent to distribute marijuana in 2012, possession with intent to distribute methamphetamine in 2014 and possession of cocaine in 2016. These felonies barred him from possessing a firearm under federal law.
Project Safe Neighborhoods (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 re-entry programs for lasting reductions in crime.
The ATF and the Monroe Police Department conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
Mississippi Couple Charged with Receiving $1.7 Million in Health Care Kickback SchemeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that a Mississippi couple, KIMBERLY HOMRIGHAUSEN, age 42, and RICHARD HOMRIGHAUSEN, age 35, were charged on January 22, 2019, with conspiracy to pay and receive kickbacks related to compounded medications paid for by TRICARE, a federally funded health care benefit program that serves United States military personnel and their families.
As alleged in the bill of information, the defendants paid kickbacks to TRICARE beneficiaries to induce them to obtain compounded medications, costing TRICARE a total of approximately $9 million. According to the bill of information, the defendants received a total of about $1.7 million in kickbacks for referring the beneficiaries. If convicted, each defendant faces up to five years’ imprisonment.
U.S. Attorney Strasser reiterated that the bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Defense Criminal Investigative Service, the Department of Homeland Security - Homeland Security Investigations, the Federal Bureau of Investigation, the United States Postal Service - Office of Inspector General, and the Department of Veterans Affairs - Office of Inspector General in investigating this matter. Assistant United States Attorney Chandra Menon is in charge of the prosecution.
Mission Man Indicted on Assault and Abusive Sexual Contact ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Abusive Sexual Contact.
Everett Joseph Menard, a/k/a Everette J. Menard, age 20, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 27, 2018, Menard assaulted an individual and that the assault resulted in serious bodily injury. The Indictment further alleges that Menard did knowingly engage in sexual contact by the use of force with the same individual.
The charges are merely accusations and Menard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Menard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mineral County man indicted for firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Kenneth Niland, of Keyser, West Virginia, was indicted by a federal grand jury sitting in Martinsburg on January 23, 2019 on firearms charges, United States Attorney Bill Powell announced.
Niland, age 49, is charged with one count of “False Statement in Connection with the Acquisition of a Firearm,” one count of “Unlawful Possession of a Firearm,” and one count of “False Statement to a Federal Agent.” Niland is accused of making a false written statement when purchasing a 9mm pistol from a licensed dealer in New Creek, West Virginia in October 2018. Niland, a person prohibited from having firearms, is accused of possessing the 9mm pistol and lying to an ATF agent about the whereabouts of said firearm in November 2018.
Niland faces up to 10 years incarceration and a fine of up to $250,000 for the firearms counts. He faces up to five years incarceration and a fine of up to $250,000 for the false statement count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Middlesex County, New Jersey, Man and Woman Charged with Conspiring to Distribute Misbranded DrugsRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man and woman appeared in court today after being arrested for their roles in a scheme to market and distribute misbranded and unapproved new drugs, U.S. Attorney Craig Carpenito announced.
Keith Kovaleski, 54, of South Amboy, New Jersey, and Ines Maltez, 33, of Sayreville, New Jersey, were both charged by complaint with conspiring to distribute and cause the receipt and delivery of misbranded drugs and unapproved new drugs, and to impede the functions of the U.S. Food and Drug Administration (FDA). They were arrested today and appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Both defendants were released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
The FDA is responsible for protecting the health and safety of the American public by enforcing the Federal Food, Drug, and Cosmetic Act (FDCA), a law intended to assure that drugs are safe, effective, and bear accurate labeling containing all required information. The FDA regulates the manufacture, labeling, and distribution of all drugs shipped or received in interstate commerce.
From 2014 to January 2019, Kovaleski was the principal of AA Peptide LLC, a/k/a All American Peptide (AAP). AAP used its website to market and distribute substances used by bodybuilders and others engaged in weight training to enhance performance and mitigate the side effects of performance-enhancing substances.
The AAP website included a bogus legal disclaimer that its products were intended for laboratory research use only, and not as drugs or food. Kovaleski employed the bogus “research chemicals” disclaimer to conceal that he and others were distributing misbranded drugs and unapproved new drugs for use by their customers.
Between April 2018 and December 2018, an undercover law enforcement agent made five purchases of misbranded drugs and unapproved new drugs from the AAP website. Each undercover purchase was made through the website without a prescription, and none of the substances purchased contained an “Rx-only” designation on their labels. None of the substances purchased from AAP contained adequate directions for use or warnings regarding known side-effects. Two of the purchases included pills containing tadalafil, the active ingredient in Cialis, in dosages significantly higher than the highest recommended dosage.
Maltez participated in the scheme by packaging and mailing misbranded and unapproved drugs, and by receiving payments from customers.
The conspiracy charge carries a maximum potential penalty of up to five years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Craig Carpenito credited special agents of the FDA, under the direction of Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations’ New York Field Office; postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, Newark Division, and special agents of AMTRAK Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, Eastern Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Karen Stringer and Cari Fais of the Special Prosecutions Division.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty
Miami-Dade County Resident Sentenced to Twenty-Five Years in Prison for Cocaine TraffickingRead the Press Release
Eugene Hilton Russell, 51, of Miami-Dade County, was sentenced today by U.S. District Judge to Jose E. Martinez to 300 months in prison for trafficking in cocaine.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, U.S. Coast Guard (USCG), 7th District, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office made the announcement.
On November 28, 2018, Russell was convicted by a trial jury of importation, and possession with the intent to distribute, five kilograms or more of cocaine (Case No. 18-20518-CR). The sentence imposed for the cocaine trafficking offenses of conviction will run consecutively to a 37-month term of imprisonment imposed by U.S. District Judge Patricia A. Seitz for the defendant’s violation of supervised release (Case No. 07-20338-CR).
The evidence presented at trial showed that, on the morning of June 2, 2018, Russell travelled from Miami to Bahamian waters, just off the coast of Bimini. There he met up with another boat for refueling. When he left the area, the defendant had a cooler in the back of the boat. Inside the cooler, there were a load of fish, some bottled water, and some Gatorade. There was one fishing pole on the boat, but it was unrigged and had no hook. All that was designed to cover up the 12 bricks of cocaine hidden in the walls of the cooler.
When Russell’s boat entered U.S. territorial waters, CBP attempted an interception. As the CBP marine boats approached, the defendant abruptly changed course and sped away. The CBP boats gave chase. They soon caught up with Russell and were able to stop his boat. Upon inspection of Russell’s boat, CBP agents discovered the concealed cocaine (with an approximate street value of over $300,000 U.S. dollars).
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the ICE-HSI, CBP, USCG, and DEA in this matter. She thanked the Miami-Dade Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorneys Arimentha Walkins and Brooke Watson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Merrillville Duo Convicted After A Four Day Jury TrialRead the Press Release
HAMMOND –James Caffey, age 28 and Tanisha Banks, age 38, of Merrillville, Indiana were both convicted on January 28, 2019 of conspiring to rob as well as aiding and abetting the robbery of United States Postal employees of mail and money that was in the custody and control of the U.S. Postal Service. Chief U.S. District Court Judge Theresa Springmann presided over the 4 day jury trial.
According to evidence presented at trial, Tanisha Banks and James Caffey, conspired with a third person, Leeroy Beck to rob the Tolleston Station Post Office in Gary, Indiana on August 3, 2017. Tanisha Banks, a Postal Service employee with experience working at the Tolleston Station, provided the logistics for the robbery while her boyfriend, James Caffey, handled transportation to and from the robbery. Together Banks and Caffey recruited the gunman, Leeroy Beck, who would actually carry out the robbery. At trial evidence was presented establishing that Caffey provided Beck with a handgun to use during the robbery. On August 3, 2017, after holding two employees at gun point, Leeroy Beck stole money and mail from the Postal Service. The cash was divided amongst the conspirators. Banks and Caffey used their share from the robbery to pay bills including a car note on the gray Dodge Charger James Caffey used to drive the gunman to and from the robbery.
The gunman, Leeroy Beck, entered into a guilty plea with the government prior to trial.
This case was investigated by the United States Postal Inspection Service with assistance from the Gary Police Department. The case was prosecuted by Northern District of Indiana Assistant United States Attorneys Diane Berkowitz and Thomas McGrath.
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Melissa, Texas Woman Sentenced for Income Tax Fraud SchemeRead the Press Release
SHERMAN, Texas – A 39-year-old Melissa, Texas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Demetrice Hodges pleaded guilty on May 10, 2018, to conspiracy to commit wire fraud, wire fraud, and aggravated identity theft charges related to an income tax fraud scheme. Hodges was sentenced to 65 months in federal prison by U.S. District Judge Amos Mazzant on Jan. 24, 2019. Hodges was also ordered to pay restitution in the amount of $343,824.59 to the Internal Revenue Service and ordered to forfeit $8,000 as proceeds of the wire fraud conviction.
According to information presented in court, in 2016, Hodges was involved in a scheme to defraud individuals by conspiring with others to obtain money and property by false pretenses. As part of the scheme, Hodges coordinated with another individual in purchasing personal identifying information ("PII") that was used to electronically file income tax returns using the stolen identifiers. Hodges was indicted by a federal grand jury on Sep. 13, 2017.
"Income tax fraud and identity theft cause great financial harm to the U.S. Treasury and significant personal harm to individuals and their financial and credit status," said U.S. Attorney Joseph D. Brown. "The U.S. Attorney's Office, the Department of Justice, and the Internal Revenue Service are dedicated to investigating and vigorously prosecuting cases in which individuals steal the identity of innocent victims, including the identities of both adults and children, and commit fraud against the Internal Revenue Service and the United States Treasury."
This case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Tom Gibson.
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Massachusetts Man Pleads Guilty to Defrauding Connecticut Art DealerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that HAROLD GORDON, 69, of Templeton, Massachusetts, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of wire fraud.
According to court documents and statements made in court, in approximately October 2012, Gordon began communicating by phone and email with a respected art dealer and appraiser (the “victim”) in Connecticut, to induce the victim to purchase a tall antique desk, commonly known as a “secretary desk.” In these communications, Gordon falsely represented to the victim that the desk was decorated and dedicated as a Civil War memorial for a Connecticut soldier who died at the Battle of Antietam while fighting for the Union Army. These misrepresentations included Gordon’s claims that the surviving soldiers in the fallen soldier’s Connecticut regiment had crafted the desk to serve as a war memorial for the deceased soldier’s family; that other than cleaning the vintage clock, Gordon had done nothing else to refurbish or decorate the desk; and that Gordon had purchased the desk from a descendant of the deceased Connecticut soldier.
In early March 2014, the victim examined the secretary desk at Gordon’s Massachusetts residence, and then took subsequent steps to confirm the desk’s authenticity. The victim then purchased the desk from Gordon for $64,500. At Gordon’s request, the victim provided the payment in three separate checks.
In February 2015, the victim sold the desk to a museum and non-profit institution in Connecticut. After completing this transaction, the victim sent Gordon an additional payment of $25,000 because the victim had made a significant profit from the sale.
In February 2018, various third parties made inquiries to the victim about the authenticity of the secretary desk. The victim contacted Gordon, who admitted that he had refurbished and decorated the desk himself, created the false narrative about the desk’s history, and targeted the victim to purchase it due to the victim’s respected stature in the American folk art community. The victim then made full restitution to the institution that had purchased the desk from him.
Judge Meyer scheduled sentencing for April 23, 2019, at which time Gordon faces a maximum term of imprisonment of 20 years.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Hal Chen.
Manchester Man Sentenced to Two Years in Prison for Oxycodone TraffickingRead the Press Release
CONCORD- United States Attorney Scott W. Murray announced that Christopher Chandonnais, 28, of Manchester, was sentenced to 24 months in prison for oxycodone trafficking.
According to court documents and statements made in court, on October 19, 2017, the Nashua Police Department conducted surveillance of the defendant making a drug sale to another drug distributor. They subsequently searched the defendant’s vehicle and recovered approximately ninety 30-mg oxycodone pills and over $11,000. The investigation confirmed that the defendant regularly sold oxycodone pills and made a profit of approximately $10 per pill sold. The $11,000 has been forfeited.
The defendant was sentenced to 24 months in prison followed by three years of supervised release.
“The abuse and illegal sale of oxycodone and other opioids presents an ongoing danger to the health and safety of our community,” said U.S. Attorney Murray. “To reduce this threat, we will aggressively investigate, arrest and prosecute those who trade in these deadly substances.”
This matter was investigated by the Nashua Police Department, with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
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Man from Alexandria sentenced to a year in prison for stealing $8,600 from Dry Prong casinoRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a man from Alexandria was sentenced on January 14, 2019 to 12 months in prison for stealing $8,600 from the Jena Choctaw Pines Casino.
Eddie Ray Washington, 36, of Alexandria, was sentenced by U.S. District Judge Dee D. Drell on one count of theft from an Indian tribal organization. He was also sentenced to two years of supervised release and was ordered to pay $8,600 restitution. According to the October 4, 2018 guilty plea, Washington entered the Jena Choctaw Pines Casino on September 18, 2018, approached an unoccupied teller station at the cash counter, leaned over the counter, removed $8,600 from a cash drawer and exited the casino. Casino security officers were able to identity Washington using video surveillance and he was later arrested.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has criminalized certain acts that take place in Indian Country. The U.S. Attorney’s Office prosecutes all felony cases arising in Indian Country covered by federal criminal law.
The FBI conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Man Sentenced to 17 Years in Prison for Drug TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that an individual who has used multiple names, including Juan Garcia, Alejandro Villar Dume, and Alberto German Gomez, was sentenced to serve 17 years in prison for participating in a drug trafficking conspiracy.
Court documents and statements made in court showed that the defendant participated in a conspiracy to sell fentanyl, heroin, and cocaine. After the FBI received information that the defendant was distributing drugs in Nashua and elsewhere, it began an investigation of the defendant’s activities. During the investigation, the defendant and his associates sold fentanyl in Lawrence, Massachusetts to individuals who were cooperating with law enforcement officers.
At a sentencing hearing on January 24, 2019, U.S. District Judge Paul Barbadoro sentenced the defendant, who had previously been convicted of several violent crimes, to serve 17 years in prison. The Judge also found that the defendant had obstructed justice by claiming that he was “Juan Garcia” from Puerto Rico. Information presented at the sentencing hearing suggested that the defendant actually was from the Dominican Republic.
The defendant, who previously resided in Roxbury, Massachusetts, pleaded guilty on June 28, 2018.
“Those who illegally trade in fentanyl and other dangerous drugs endanger our citizens and undermine the quality of life in our state,” said U.S. Attorney Murray. “When violent criminals are involved in drug trafficking, the risk to public safety is amplified. Violent criminals who sell drugs in New Hampshire should expect to be arrested, prosecuted and sentenced to long prison terms.”
“Mr. Garcia will now finally pay the price for peddling deadly drugs that can have unpredictable effects on unsuspecting users,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI New Hampshire Safe Streets Gang Task Force will continue to work with our law enforcement partners to identify and disrupt violent criminals like Mr. Garcia who are engaged in drug trafficking activities that endanger the safety of the citizens in our state.”
This matter was investigated by the FBI New Hampshire Safe Streets Gang Task Force, which is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua. Assistance was provided by the FBI North Shore Gang Task Force. The case was prosecuted by former Assistant U.S. Attorney Shane Kelbley and First Assistant U.S. Attorney John J. Farley.
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Man Pleads Guilty to Aiding and Abetting Murder Resulting from Use of a Firearm During a Drug Trafficking CrimeRead the Press Release
HAMMOND- Jerome Sims, 54, of Crown Point, Indiana, pled guilty to aiding and abetting murder resulting from the use and carrying of a firearm during and in relation to a drug trafficking crime, announced U.S. Attorney Kirsch.
According to documents in the case, Jerome Sims and members of the Two Six gang were involved in a conspiracy to possess and distribute five kilograms or more of cocaine. Sims knew Julio Cartagena owed a drug debt to Jesus Fuentes, a Two Six gang member, and members of his drug trafficking enterprise. Sims agreed to help Fuentes and his associates kidnap Julio Cartagena, so Fuentes could recover his lost money and drugs. On May 16, 2003, Sims made plans with Cartagena to meet at a specified location, and Sims informed Fuentes and his associates of the time and place of the meeting. Fuentes’ associates, while armed with firearms, attempted to kidnap Cartagena, and ended up shooting and killing him.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the East Chicago Police Department. This case was prosecuted by Assistant United States Attorney David J. Nozick and Caitlin M. Padula.
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Lynnfield Woman Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A Lynnfield woman was sentenced today in federal court in Boston for filing false tax returns, on which she claimed, among other things, more than $370,000 in mortgage interest deductions, even though the loan was in default and the property had gone into foreclosure.
Karyn M. Ingram, 51, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three years of probation with the first six months be served in community confinement, and ordered to pay $177,852 in restitution. In August 2018, Ingram pleaded guilty to three counts of filing false tax returns for tax years 2011, 2012 and 2013.
Ingram filed tax returns in which she reported false and inflated Schedule A deductions and in one year, a Schedule C business loss, in order to reduce her overall tax liability. For example, for tax years 2010 and 2011, Ingram filed returns claiming mortgage interest deductions of $45,072 and $371,427, but she had not made any mortgage payments since 2008; in fact, the loan had defaulted, and the property had gone into foreclosure. She also claimed real estate tax deductions in those same tax years, when, in reality, the real estate taxes had been paid by the mortgage lender and not by Ingram. By falsifying the deductions and losses, Ingram fraudulently reduced her tax liability by more than $126,000.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division prosecuted the case.
Lowell Man Agrees to Plead Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Lowell man agreed to plead guilty yesterday in federal court in Boston to distributing fentanyl.
Edilberto Calle-Alvarez, 24, pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl and distribution and possession with intent to distribute fentanyl. U.S. District Court Judge Leo T. Sorokin deferred acceptance of the plea until sentencing, which is scheduled for April 22, 2019.
Calle-Alvarez was arrested on Oct. 4, 2018, along with dozens of others as part of a federal drug, firearms, and immigration sweep in and around the City of Lawrence. On Aug. 2, 2018, Calle-Alvarez sold approximately 20 grams of fentanyl to an undercover police officer as part of the investigation. The arrests were part of the Department of Justice’s Project Safe Neighborhood Initiative (PSN), which aims to bring together all levels of law enforcement to reduce violent crime.
The charges of conspiracy to distribute and possess with intent to distribute fentanyl and distribution and possession with intent to distribute fentanyl each carry a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Lowell Police Superintendent Raymond Kelly Richardson made the announcement today. Assistant U.S. Attorney Philip Cheng of Lelling’s Criminal Division is prosecuting the case.
Project Safe Neighborhoods (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.
Longville woman pleads guilty to stealing more than $265,000 from employer and lying about it on tax returnsRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Longville woman pleaded guilty on January 24, 2019 to stealing more than $265,000 from her employer and failing to report the income on her tax returns.
Ashleigh Matte, 37, of Longville, Louisiana, pleaded guilty before U.S. District Judge Robert R. Summerhays to two counts of filing false tax returns. According to the guilty plea, Matte was the officer manager for Gene Kile, Inc. (“GKI”), in Westlake, Louisiana. From 2014 to 2016, she stole money from GKI by writing checks to herself using company checks and depositing them into various accounts owned by her. Over the three-year period, Matte stole $265,418.72, and hid the theft by making false accounting entries in GKI’s records. On Matte’s 2015 and 2016 tax filing documents, she failed to report this income, which caused a loss to the U.S. Treasury of $56,500.38.
Matte faces up to six years in prison, one year of supervised release, a $200,000 fine and restitution to GKI and the IRS. The court set sentencing for May 24, 2019.
The IRS investigated the case. United States Attorney David C. Joseph is prosecuting the case.
Lisbon man indicted for child pornography crimesRead the Press Release
A Lisbon man was indicted for child pornography crimes.
David Grunden, 34, of Lisbon, was indicted on one count each of receipt of child pornography, possession of child pornography and advertising child pornography.
Grunden, between 2014 and 2017, received numerous images of minors engaged in sexually explicit conduct, and possessed a computer with child pornography on October 30, 2018, according to the indictment.
From January 11 through June 3, 2018, Grunden solicited adults to be recorded having sex with children, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Brian Deckert following an investigation by the FBI, the Mahoning Valley Violent Crimes Task Force and the Ohio Bureau of Criminal Identification and Investigation.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.