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29 January 2019
Cargos adicionales presentados en relación con el tiroteo en la sinagoga Tree of LifeRead the Press Release
PITTSBURGH – Un gran jurado federal del Tribunal Federal de Distrito para el Distrito Occidental de Pensilvania acusó a un hombre de Pensilvania de delitos de odio adicionales y de delitos relacionados con armas de fuego por su conducta durante el tiroteo del 27 de octubre del 2018 en la Sinagoga Tree of Life en Pittsburgh, Pensilvania, anunció hoy el Fiscal Federal Scott W. Brady.
Robert Bowers, de 46 años, vecino de Baldwin, Pensilvania, fue acusado de 63 delitos en la acusación formal sustitutiva emitida hoy. La acusación formal original, presentada el 31 de octubre del 2018, acusó a Bowers de 44 delitos. La acusación formal sustitutiva añade 13 vulneraciones de la ley de Prevención de Delitos de Odio de Matthew Shepard y James Byrd, Jr. así como los delitos correspondientes por la descarga de un arma de fuego durante esos delitos violentos. En concreto, la acusación formal sustitutiva alega que Bowers causó de modo intencional daños corporales a once víctimas y a dos supervivientes por motivos de su religión real y percibida.
Según la acusación formal sustitutiva, el 27 de octubre del 2018, Bowers manejó a la sinagoga Tree of Life en Pittsburgh, Pensilvania, donde miembros de las congregaciones de Tree of Life, Dor Hadash y New Jewish Light se habían juntado para rezar. Bowers entró en el edificio armado de varias armas de fuego, incluyendo tres pistolas Glock .357 y un rifle Colt AR-15. Estando ya dentro de la sinagoga Tree of Life, Bowers abrió fuego y mató y lesionó a miembros de las tres congregaciones. También lesionó a varios policías que respondieron a la escena durante su intento de rescatar a las víctimas supervivientes.
Más aún, la acusación formal sustitutiva alega que el 10 de octubre del 2018, Bowers colgó una serie de declaraciones en la página web bag.com que criticaban a la Hebrew Immigrant Aid Society (Sociedad Hebrea para Asistencia a Inmigrantes, HIAS, por sus siglas en inglés) y congregaciones afiliadas por organizar eventos relacionados con refugiados. La lista de congregaciones incluía la congregación judía Dor Hadash de Pittsburgh. Antes de entrar en la sinagoga Tree of Life el 27 de octubre del 2018, Bowers colgó lo siguiente en el sitio web gab.com: «A HIAS le gusta traer a invasores que asesinan a nuestra gente. No puedo quedarme con los brazos cruzados mientras matan a mi gente. A la mierda sus puntos de vista, yo voy a entrar». Según la acusación formal sustitutiva, estando ya dentro de la sinagoga Tree of Life, Bowers hizo declaraciones que indicaron su deseo a «matar a judíos».
En concreto, la acusación formal sustitutiva acusa de lo siguiente:
- Once delitos de obstrucción al libre ejercicio de creencias religiosas, resultante en muerte;
- Once delitos de odio resultante en muerte;
- Dos delitos de obstrucción al libre ejercicio de creencias religiosas que conllevan un intento de asesinato y el uso de un arma peligrosa resultante en lesiones corporales;
- Dos delitos de odio que conllevan un intento de asesinato;
- Ocho delitos de obstrucción al libre ejercicio de creencias religiosas que conllevan un intento de asesinato y el uso de un arma peligrosa, lo que resultó en la lesión corporal de agentes del orden público;
- Cuatro delitos de obstrucción del libre ejercicio de creencias religiosas que conllevan el uso de un arma peligrosa, resultante en la lesión corporal de agentes del orden público;
- Veinticinco delitos de descarga de un arma de fuego durante estos delitos violentos.
Entre las víctimas en la sinagoga Tree of Life están los 11 devotos que fueron asesinados, los dos congregantes que sufrieron lesiones graves a manos de Bowers y los doce congregantes que lograron escapar ilesos. Además, las víctimas incluyen cinco agentes de policía que respondieron a la escena y quienes fueron lesionados en su intento de rescatar a las víctimas supervivientes y de detener a Bowers.
Los Fiscales Federales Auxiliares Troy Rivetti y Soo C. Song, juntos con Julia Gegenheimer, una Abogada de Litigios del Departamento de Justicia, están enjuiciando este caso por parte del Gobierno.
El Fiscal Federal Brady elogió el trabajo del Buró Federal de Investigaciones, la Policía de Pittsburgh y la Policía del Condado de Allegheny, que llevaron a cabo la investigación que llevó a la acusación formal sustitutiva en este caso. Brady también reconoció y dio las gracias a decenas de agentes de la policía local, estatal y federal que ayudaron en la investigación.
El acusado se enfrenta a una máxima condena posible de cadena perpetua seguida de una condena a 250 años de cárcel. Más aún, 22 de los delitos contenidos en la acusación formal sustitutiva son elegibles para la pena de muerte. Si el Fiscal General de los Estados Unidos determina que las circunstancias de los delitos son tales que justificarían la pena de muerte, la ley requiere que se notifique al tribunal de lo mismo de manera oportuna antes del juicio.
Una acusación formal sustitutiva es una acusación formal de conducta y no representa una prueba de culpabilidad. Al acusado se lo considera inocente mientras no se pruebe su culpabilidad.
Enlace a la acusación formal sustitutiva de Robert Bowers del Distrito Occidental de Pensilvania
Buncombe County Man Sentenced to 28 Years for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – On Thursday, January 24, 2019, U.S. District Judge Martin Reidinger sentenced Gabriel Allen Goss, 39, of Asheville, N.C., to 28 years in prison and a lifetime of supervised release for production of child pornography charges, announced U.S. Attorney Andrew Murray. Judge Reidinger also ordered Goss to register as a sex offender after he is released from prison.
John Eisert, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in the Carolinas and Sheriff Greg Christopher of the Haywood County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on March 18, 2017, Goss, then a resident of Haywood County, used a cellular phone to produce at least three child pornography videos of a prepubescent minor female. Court records show that on November 16, 2017, Goss engaged in a series of internet emails with another individual for the purpose of trading child pornography files. In one email to the other individual, Goss attached a video file of the child pornography Goss had produced depicting the minor victim.
Goss is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In making today’s announcement U.S. Attorney Murray thanked the ICE/HSI and the Haywood County Sheriff’s Office for their investigation of the case. The U.S. Attorney’s Office in Asheville handled the prosecution.
Buffalo Man Indicted on Charges He Committed A Bomb Hoax and Contempt of CourtRead 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 a federal grand jury has returned an indictment charging James Timpanaro, 54, of Buffalo, NY, with causing a pipe bomb hoax and contempt of court order. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the indictment, on October 27, 2018, the defendant placed a device, which appeared to be pipe bomb, outside the United States Postal Service building located at 2061 South Park Avenue in Buffalo. Timpanaro was subsequently arrested and charged by criminal complaint.
On November 2, 2018, the defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder who ordered Timpanaro to complete an inpatient psychiatric and alcohol evaluation at the Buffalo VA Medical Center. Between January 26 and January 27, 2019, the defendant failed to comply with Judge Schroeder’s order to abide by all rules and directives of the inpatient treatment program, when he left the facility. Timpanaro was quickly apprehended by the U.S. Marshal Fugitive Task Force.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the U.S. Marshal Service, under the direction of Marshal Charles Salina; and the U.S. Probation Department, under the director of Chief Probation Officer Anthony SanGiacomo.
Timpanaro was arraigned this afternoon before Judge Schroder and was detained pending trial.
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.
Brooklyn Couple Arrested for Immigration Fraud SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging William Jacobsen and his wife Marta Medvedeva with conspiring, and aiding and abetting others, to enter into sham marriages with foreign nationals for the purpose of obtaining lawful permanent residency in the United States. The defendants were also charged with evading United States immigration laws by making materially false statements in immigration applications, affidavits and other documents. The defendants’ initial appearances were held this afternoon before United States Magistrate Judge Vera M. Scanlon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Our immigration process is not for sale. The defendants’ scheme to game the system and reap ill-gotten profits by promoting sham marriages is not only criminal, it is an affront to those individuals who abide by the rules to obtain permanent residency in the United States lawfully,” stated United States Attorney Donoghue. “Today’s charges send the clear message that this Office and our partners at the FBI will not tolerate such activity.”
As alleged in the complaint, between approximately November 2016 and January 2019, Jacobsen and Medvedeva identified and recruited U.S. citizens who were willing to enter into sham marriages with foreign nationals. The foreign nationals paid the defendants approximately $30,000 for their services, and a portion of the fee was then passed on to the U.S. citizen spouses for their participation in the fraud. The defendants also coached the couples on how to successfully pass immigration interviews and provided misleading or false documentation needed during various steps in the immigration process.
During several recordings and communications, Jacobsen and Medvedeva discussed the details of their scheme, including the number of participants they had available to participate in the “fake” marriages (as characterized by Jacobsen), payment of approximately $10,000 to the U.S. citizens for their services, and the coaching and training the couples would receive to pass the required immigration interviews. In one recorded conversation, Jacobsen explained to a confidential source posing as a potential U.S. citizen spouse:
The hardest part is getting married. The easy part is the [immigration] interview, because I know the questions they’re gonna ask you. That’s why everyone comes here, because they want training. Everybody’s looking for training. When I do it, it’s a five minute interview. You go with the lawyer, you’re in there for an hour, hour and a half. I’ve been doing it for fifteen years …. This is the easy part. The hardest part is the marriage, cause both sides are nervous, they have to go there and kiss each other. Interview is nothing, that’s the easy part.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Jacobsen and Medvedeva each face a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Maria Cruz Melendez and Elizabeth Macchiaverna are in charge of the prosecution.
The Defendants:
WILLIAM JACOBSEN
Age: 60
Brooklyn, New YorkMARTA MEDVEDEVA
Age: 68
Queens, New YorkEDNY Docket No. 19-MJ-57
Bossier City man pleads guilty to stealing more than $180,000 using a price changing schemeRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Bossier City man pleaded guilty on January 7, 2019 to using a merchandise price changing scheme to steal more than $180,000.
Peter Stifner, 39, of Bossier City, Louisiana, pleaded guilty before U.S. District Judge Elizabeth E. Foote to three counts of wire fraud. According to the guilty plea, Stifner conducted a scheme to steal merchandise from Walmart, Sam’s Club and Target. He obtained barcode stickers of lower priced merchandise, brought the stickers into the stores and placed them over the barcodes of higher priced merchandise. Stifner purchased merchandise at the lower price and would then resell it online for a profit. As a result of his fraudulent activity, the defendant stole more than $180,000 during the course of the scheme.
Stifner faces up to 20 years in prison, five years of supervised release and a $250,000 fine for each count. The court set the sentencing date for May 2, 2019.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Cadesby B. Cooper is prosecuting the case.
Black Hawk Man Sentenced for Firearm ConvictionRead the Press Release
United States Attorney Ron Parsons announced that a Black Hawk, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person, was sentenced on January 4, 2019, by U.S. District Judge Roberto A. Lange.
Zachary Alto, age 24, was sentenced to 24 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, forfeiture of a firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Alto was indicted by a federal grand jury on May 15, 2018. He pled guilty on October 18, 2018.
The conviction stemmed from an incident that occurred on July 12, 2017, where Alto, being an unlawful user of, and addicted to a controlled substance, knowingly possessed two firearms. Law enforcement made contact with Alto and a co-defendant during the middle of a drug transaction, where the 2 firearms and 14 grams of methamphetamine were seized.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Alto was immediately turned over to the custody of the U.S. Marshals Service.
Belleville Resident Pleads Guilty to Falsifying a Record in Bankruptcy ProceedingRead the Press Release
Dehavalon Cook, age 46, of Belleville, Illinois, pleaded guilty today to falsifying records in a federal bankruptcy proceeding. Cook previously filed a petition for Chapter 13 bankruptcy in the United States District Court for the Southern District of Illinois. In March of 2018, Cook doctored a fake letter from the Chapter 13 trustee authorizing him to incur new debt for the purchase of an automobile. The bogus letter included the name and signature of the trustee.
Sentencing is scheduled for May 16, 2019. The offense carries a maximum sentence of up to 20 years of imprisonment, three years of supervised release, and a fine of up to $250,000.
"Forging documents of a trustee is a significant bankruptcy fraud that causes harm and strikes directly at the integrity of the bankruptcy system," stated Nancy J. Gargula, United States Trustee for Indiana and Southern and Central Illinois (Region 10). "This prosecution reflects the cooperative efforts among several federal law enforcement agencies that work together to combat fraud and abuse in the bankruptcy system."
The charges resulted from a referral by the U.S. Trustee for Region 10 to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by the Federal Bureau of Investigation, in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Allen Man Sentenced for Sexual Contact with a MinorRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, man convicted of Abusive Sexual Contact was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jaelen Thunder Bull, age 23, was sentenced on January 11, 2019, to 3 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Thunder Bull engaging in a sexual act with a minor female in July 2017 at Allen.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Thunder Bull was immediately turned over to the custody of the U.S. Marshals Service.
Additional Charges Filed in Tree of Life Synagogue ShootingRead the Press Release
PITTSBURGH – A federal grand jury sitting in the U.S. District Court for the Western District of Pennsylvania charged a Pennsylvania man with additional federal hate crimes and firearms offenses for his conduct during the October 27, 2018 shootings at the Tree of Life Synagogue in Pittsburgh, Pennsylvania, United States Attorney Scott W. Brady announced today.
Robert Bowers, 46, of Baldwin, Pennsylvania, was charged in a 63-count Superseding Indictment returned today. The original Indictment filed on October 31, 2018 charged Bowers with 44 counts. The Superseding Indictment adds 13 violations of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, as well as corresponding counts for discharging a firearm during those crimes of violence. The Superseding Indictment specifically alleges that Bowers willfully caused bodily injury to 11 deceased and 2 surviving victims because of their actual and perceived religion.
According to the Superseding Indictment, on October 27, 2018, Bowers drove to the Tree of Life Synagogue in Pittsburgh, Pennsylvania, where members of the Tree of Life, Dor Hadash, and New Light Jewish congregations gathered to engage in religious worship. Bowers entered the building armed with multiple firearms, including three Glock .357 handguns and a Colt AR-15 rifle. While inside the Tree of Life Synagogue, Bowers opened fire, killing and injuring members of the three congregations, as well as injuring multiple responding police officers as they attempted to rescue surviving victims.
The Superseding Indictment further alleges that on October 10, 2018, Bowers posted statements on the website gab.com that were critical of the Hebrew Immigrant Aid Society (HIAS) and affiliated congregations hosting refugee-related events. That list of congregations included the Dor Hadash Jewish congregation of Pittsburgh. Before entering the Tree of Life Synagogue on October 27, 2018, Bowers posted the following on the website gab.com: “HIAS likes to bring invaders in that kill our people. I can’t sit by and watch my people get slaughtered. Screw your optics, I’m going in.” According to the Superseding Indictment, while inside the Tree of Life Synagogue, Bowers made statements indicating his desire to “kill Jews.”
Specifically, the Superseding Indictment charges:
- Eleven counts of obstruction of free exercise of religious beliefs resulting in death;
- Eleven counts of hate crimes resulting in death;
- Two counts of obstruction of free exercise of religious beliefs involving an attempt to kill and use of a dangerous weapon and resulting in bodily injury;
- Two counts of hate crimes involving an attempt to kill;
- Eight counts of obstruction of free exercise of religious beliefs involving an attempt to kill and use of a dangerous weapon, and resulting in bodily injury to public safety officers;
- Four counts of obstruction of free exercise of religious beliefs involving use of a dangerous weapon and resulting in bodily injury to public safety officers;
- Twenty-five counts of discharge of a firearm during these crimes of violence.
The victims include 11 worshippers at the Tree of Life Synagogue who were killed, 2 congregants who were critically injured by Bowers and 12 congregants who escaped unharmed. Additionally, the victims include 5 responding police officers who were injured while attempting to rescue surviving victims and apprehend Bowers.
Assistant United States Attorneys Troy Rivetti and Soo C. Song, along with DOJ Trial Attorney Julia Gegenheimer, are prosecuting this case on behalf of the government.
United States Attorney Brady commended the work of the Federal Bureau of Investigation, the Pittsburgh Bureau of Police and the Allegheny County Police, which conducted the investigation leading to the Superseding Indictment in this case. Brady also recognized and thanked the dozens of federal, state and local law enforcement officers who assisted in the investigation.
The defendant faces a maximum possible penalty of life without parole, followed by a consecutive sentence of 250 years’ imprisonment. Further, twenty-two counts in the Superseding Indictment are capital-eligible offenses. Should the Attorney General of the United States determine that the circumstances of the offenses are such that a sentence of death is justified, the law requires that notice be filed with the court at a reasonable time before trial.
A Superseding Indictment is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Link to WDPA Robert Bowers Superseding IndictmentAdditional Charges Filed in Tree of Life Synagogue ShootingRead the Press Release
A federal grand jury sitting in the U.S. District Court for the Western District of Pennsylvania charged a Pennsylvania man with additional federal hate crimes and firearms offenses for his conduct during the Oct. 27, 2018, shootings at the Tree of Life Synagogue in Pittsburgh. Assistant Attorney General Eric Dreiband for the Civil Rights Division, United States Attorney Scott W. Brady, and FBI-Pittsburgh Special Agent in Charge Robert Jones made the announcement.
Robert Bowers, 46, of Baldwin, Pa., was charged in a 63-count superseding indictment returned today. The original indictment filed on Oct. 31, 2018, charged Bowers with 44 counts. The Superseding Indictment adds 13 violations of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, as well as corresponding counts for discharging a firearm during those crimes of violence. The Superseding Indictment specifically alleges that Bowers willfully caused bodily injury to 11 deceased and two surviving victims because of their actual and perceived religion.
According to the Superseding Indictment, on Oct. 27, 2018, Bowers drove to the Tree of Life Synagogue in Pittsburgh, Pennsylvania, where members of the Tree of Life, Dor Hadash, and New Light Jewish congregations gathered to engage in religious worship. Bowers entered the building armed with multiple firearms, including three Glock .357 handguns and a Colt AR-15 rifle. While inside the Tree of Life Synagogue, Bowers opened fire, killing and injuring members of the three congregations, as well as injuring multiple responding public safety officers as they attempted to rescue surviving victims.
The Superseding Indictment further alleges that on Oct. 10, 2018, Bowers posted statements on the website gab.com that were critical of the Hebrew Immigrant Aid Society (HIAS) and affiliated congregations hosting refugee-related events. That list of congregations included the Dor Hadash Jewish congregation of Pittsburgh. In addition, a statement on his profile expressed the belief that “jews are the children of satan,” and other posts referred to Jewish people using anti-Semitic slurs. Before entering the Tree of Life Synagogue on Oct. 27, 2018, Bowers posted the following on the website gab.com: “HIAS likes to bring invaders in that kill our people. I can’t sit by and watch my people get slaughtered. Screw your optics, I’m going in.” According to the Superseding Indictment, while inside the Tree of Life Synagogue, Bowers made statements indicating his desire to “kill Jews.”
Specifically, the Superseding Indictment charges:
- Eleven counts of obstruction of free exercise of religious beliefs resulting in death;
- Eleven counts of hate crimes resulting in death;
- Two counts of obstruction of free exercise of religious beliefs involving an attempt to kill and use of a dangerous weapon and resulting in bodily injury;
- Two counts of hate crimes involving an attempt to kill;
- Eight counts of obstruction of free exercise of religious beliefs involving an attempt to kill and use of a dangerous weapon, and resulting in bodily injury to public safety officers;
- Four counts of obstruction of free exercise of religious beliefs involving use of a dangerous weapon and resulting in bodily injury to public safety officers;
- Twenty-five counts of discharge of a firearm during these crimes of violence.
The victims include 11 worshippers at the Tree of Life Synagogue who were killed, two congregants who were critically injured by Bowers and 12 congregants who escaped unharmed. Additionally, the victims include five responding public safety officers who were injured while attempting to rescue surviving victims and apprehend Bowers.
Assistant United States Attorneys Troy Rivetti and Soo C. Song, along with Department of Justice Trial Attorney Julia Gegenheimer, are prosecuting this case on behalf of the government.
The FBI, with the valuable assistance of the Pittsburgh Bureau of Police and the Allegheny County Police, conducted the investigation leading to the Superseding Indictment in this case. Dozens of federal, state and local law enforcement officers also assisted in the investigation.
Twenty-two counts in the Superseding Indictment are capital-eligible offenses. Should the Attorney General of the United States determine that the circumstances of the offenses are such that a sentence of death is justified, the law requires that notice be filed with the court at a reasonable time before trial. The defendant further faces a maximum possible penalty of life without parole, followed by a consecutive sentence of 250 years’ imprisonment.
A Superseding Indictment is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Alamo, N.m. Man Charged with Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Thomas Abeyta, 35, of Alamo, N.M., made an initial appearance in federal court today on charges of aggravated sexual abuse in Indian Country.
According to a criminal complaint, Abeyta physically assaulted the victim at a residence on January 25, 2019. Abeyta injected the victim with a substance and sexually abused her over the course of several hours. The victim later went to the hospital for treatment of her injuries. Hospital staff reported the matter to law enforcement. Investigators have not confirmed the nature of the substance Abeyta injected into the victim.
If convicted, Abeyta faces up to life in prison. Charges in criminal complaints are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
The Albuquerque office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Frederick Mendenhall is prosecuting the case.
Alamo, N.m. Man Charged with Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Thomas Abeyta, 35, of Alamo, N.M., made an initial appearance in federal court today on charges of aggravated sexual abuse in Indian Country.
According to a criminal complaint, Abeyta physically assaulted the victim at a residence on January 25, 2019. Abeyta injected the victim with a substance and sexually abused her over the course of several hours. The victim later went to the hospital for treatment of her injuries. Hospital staff reported the matter to law enforcement. Investigators have not confirmed the nature of the substance Abeyta injected into the victim.
If convicted, Abeyta faces up to life in prison. Charges in criminal complaints are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
The Albuquerque office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Frederick Mendenhall is prosecuting the case.
28 January 2019
York Man Sentenced to 72 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 23, 2019, United States District Court Judge Yvette Kane sentenced Quran Smallwood, age 24, of York, Pennsylvania to 72 months’ imprisonment for drug trafficking and firearms offenses.
According to United States Attorney David J. Freed, Smallwood distributed approximately 2 grams of heroin on February 15, 2017, in York. Two grams of heroin is the equivalent of approximately 80 individual doses of heroin. Smallwood also admitted to possessing the 9mm Glock loaded with twenty 9mm caliber cartridges during and in relation to his drug trafficking activities.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the York County Drug Task Force, the York City Police Department, York County Adult Probation Department, and the York County District Attorney’s Office. Assistant U. S. Attorney Meredith A. Taylor prosecuted the case.
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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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West Virginia Physician Convicted of Illegal Opioid Distribution to PatientsRead the Press Release
CLARKSBURG, WEST VIRGINIA— Following a six-day trial, Dr. Felix Brizuela, Jr., of Harrison City, Pennsylvania, was found guilty on January 14, 2018 of 15 counts of “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice,” United States Attorney Bill Powell announced.
After two days of deliberations, the jury found Brizuela, age 57, guilty of 15 of 21 counts of the illegal distribution of controlled substances. The jury acquitted Brizuela of the anti-kickback counts and six distribution counts in the indictment.
Brizuela was indicted in January 2018 on 21 counts of “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice,” one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” and 15 counts of “Illegal Remuneration in Violation of the Federal Anti-Kickback Statute.”
The controlled substances illegally distributed by Brizuela included Oxycodone, Fentanyl and Oxymorphone. They were distributed without legitimate medical purpose and outside the scope of professional practice in Monongalia County, West Virginia between 2013 and 2015.
“Illegal distribution of opioids by physicians has been and continues to be a high priority for prosecution in this district. These cases are not easy, and it is only through the dedicated work of our prosecution and law enforcement teams that this case was able to be successfully prosecuted. Physicians who believe they can hide behind their lab coats or medical licenses, and simultaneously stoke the fires of the opioid epidemic and profit from it are sadly mistaken,” Powell said.
Brizuela faces up to 20 years incarceration and a fine of up to $250,000 for each of the distribution counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses, prior criminal conduct, if any, and other factors considered by the court.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of Inspector General at the U.S. Department of Health and Human Services, WV Offices of the Insurance Commissioner Fraud Division, WV Medicaid Fraud Control Unit, Office of Ohio Attorney General Health Care Fraud, Ohio Bureau of Workers’ Compensation, the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative, the Greater Harrison County Drug Task Force, a HIDTA-funded initiative, West Virginia State Police, the Hancock County Sheriff’s Office, and the Weirton Police Department investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Senior U.S. District Judge Irene M. Keeley presided.
Virginia Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
An Alexandria, Virginia man was sentenced on Jan. 11 to five years in prison for receipt of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office.
On Oct. 5, 2018, Kerry Sipult, 51, pleaded guilty to one count of receipt of child pornography. He was sentenced by Senior District Judge Claude M. Hilton to serve 60 months in prison followed by five years of supervised release. According to the Information to which Sipult pleaded guilty and to other facts he admitted to in his plea agreement, between Aug. 1, 2014 and Oct. 22, 2014, Sipult used a peer to peer program to download and share child pornography. As part of the investigation, the FBI seized Sipult’s computer and other electronic storage devices and recovered over 4,000 child pornography images and/or videos.
The investigation was conducted by the FBI. Trial Attorney Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
United States Attorney’s Office Hard at Work During the Government ShutdownRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. stated today: “I was pleased to return the United States Attorney’s Office to full operations this morning following the resolution of the lapse in appropriations by our leadership in Washington. And as we resume normal operations, I want to thank and commend the lawyers and staff of the United States Attorney’s Office for their faithful service during this difficult period. The vast majority of our staff served without pay for the duration of the lapse as essential employees tasked with ensuring the safety and security of the people of our District. This is the dedication I see from them every day. But the depth of their commitment to the mission and work of the Department of Justice was an example to us all over the last 35 days.”
“Today I am pleased to provide a summary of some of the matters which were handled during the lapse in government funding.”
In furtherance of the Take Back North Carolina Initiative the following violent crime and drug cases were adjudicated[1].
On January 3, 2019, ARCHIE ANTWON BRIDGES, 37, of Raleigh, was sentenced to 120 months imprisonment followed by 3 years of supervised release as the result of his guilty plea to distribution of heroin, possession with intent to distribute heroin, and being a felon in possession of a firearm. In January 2018, officers of the Raleigh Police Department (RPD) conducted a controlled purchase of heroin from BRIDGES. During a search of BRIDGES’s residence, officers found heroin in his master bedroom. A later search revealed two firearms, one with an extended magazine, in a storage unit at BRIDGES’s home. The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
On January 4, 2019 ALEX ALTERICK HAMILTON, a/k/a “P”, 24, of Shallotte, North Carolina, was sentenced to 262 months in prison, followed by 5 years of supervised release after pleading guilty to one count of distribution of a quantity of cocaine and aiding and abetting and one count of possession of a firearm by a felon. In July of 2017, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a controlled purchase of cocaine and a rifle from HAMILTON in Shallotte, North Carolina. HAMILTON retrieved a bag from his truck containing 13.7 grams of cocaine and a rifle loaded with one round of ammunition, and HAMILTON sold the cocaine and rifle to a confidential informant for $1000. This case was investigated by the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
Also on January 4, 2019, GRIFFIN STANTON LEWIS, 29, of Maxton, North Carolina was sentenced to 126 months imprisonment, followed by 5 years of supervised release. On August 22, 2018, LEWIS pled guilty to conspiracy, one count of distribution of a quantity of cocaine base (crack), and one count of possession of a firearm in furtherance of a drug trafficking crime. According to the investigation, in June 2015, law enforcement officers with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Robeson County Sheriff’s Office began investigating the narcotics distribution activity of LEWIS, who they knew to be involved in drug distribution from previous cases. A confidential informant was utilized to make two controlled purchases of cocaine and cocaine base (crack) from LEWIS. A firearm was involved in both transactions, with the second controlled purchase including the sale of a firearm. Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Robeson County Sheriff’s Office.
“On January 8, 2019, RAYMOND GRIFFIN was found guilty of bank robbery by a federal jury. GRIFFIN, who has three prior state robbery convictions, was convicted of robbing the Wells Fargo bank located at 3500 West Millbrook Road in Raleigh on August 29, 2017. After GRIFFIN fled the bank on foot, witnesses in the area identified a suspicious man walking away from a bank toward a construction site. Witnesses at the construction site saw GRIFFIN enter a porta john, which he exited just as police arrived. Officers detained GRIFFIN on site, and in the porta john, they found items that the robber had worn during the robbery. GRIFFIN was arrested and found with a large amounts of cash that corresponded with the amount stolen during the bank robbery. His boots were later determined to match a shoeprint left when he jumped the bank counter. The case was prosecuted by Assistant United States Attorneys Jake D. Pugh and Charity Wilson.”
On January 8, 2019, CAYLE MARCUS COLEMAN, also known as “Kamari,” 40, of Fayetteville, North Carolina, was sentenced to 228 months in prison, followed by 5 years of supervised release. COLEMAN pled guilty to conspiracy to distribute and possess with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime. In 2014, investigators determined that COLEMAN was distributing large amounts of heroin in the Fayetteville area. COLEMAN was arrested on state cocaine and heroin-trafficking offenses. While COLEMAN was on pretrial release for the state offenses, investigators conducted six additional controlled purchases of heroin from COLEMAN. Witnesses explained that COLEMAN would send co-conspirators to New York on buses, and the co-conspirators would then return to North Carolina with heroin. On December 15, 2015, investigators executed search warrants at two residences associated with COLEMAN. The agents seized a .25 caliber handgun; 40 rounds of ammunition; $15,257 in cash; marijuana; 343.71 grams of liquid oxycodone; 76.63 grams of liquid codeine; and drug packaging materials. In total, COLEMAN was responsible for distributing approximately 1.3 kilograms of heroin. This case was investigated by the Fayetteville Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
On January 9, 2019, ANDREW LIGE, 40, of New Hanover County to 132 months’ imprisonment, followed by 4 years of supervised release. On October 2, 2018, LIGE pled guilty to conspiracy to possess with the intent to distribute and distribute 100 grams or more of heroin and possession with intent to distribute 100 grams or more of heroin. On July 26, 2016, Duplin County Sheriff’s Deputies and Highway Patrol Officers attempted to stop an automobile driven by LIGE. LIGE led members of law enforcement on a lengthy high-speed chase through Duplin County. LIGE’s car reached speeds in excess of 115 miles per hour. A bag containing more than 100 grams of heroin was thrown from the car during the chase. Law enforcement was ultimately able to stop the car. LIGE and a passenger had gone to New Jersey to pick heroin for distribution in Eastern North Carolina. On November 26, 2017, LIGE was the victim of a home invasion in Wilmington North Carolina. Law enforcement believes the residence was targeted because it was a heroin stash house. LIGE was shot and lost his leg. LIGE was found in close proximity to a handgun that was lying in a pool of his blood. Law Enforcement Officers found more than $19,000 in the residence. This currency was from drug proceeds. On February 26, 2018, law enforcement received information that LIGE was returning from Richmond Virginia with a load of heroin for distribution in Wilmington. The Wilmington Police and ATF conducted a traffic stop on a BMW in which LIGE was a passenger when it entered into Wilmington. During a search of the car, law enforcement found 5,000 bags of heroin. The driver had several bags with the same marking on his person at the time of the stop. LIGE was a passenger. This case is part of an FBI lead OCDETF operation “Tooth Fairy”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation is focused on the distribution of heroin from New Jersey to New Hanover, Brunswick, Bladen, Duplin, and Sampson Counties and associated gang activities. The investigation of this case was conducted by the Federal Bureau of Investigation Safe Street Unit, Bureau of Alcohol, Tobacco and Firearms, Wilmington Police Department, Duplin County Sheriff’s Office, New Hanover County Sheriff’s Office, Sampson County Sheriff’s Office, North Carolina Highway Patrol and the United States Marshall’s Fugitive Task Force. Assistant United States Attorney Timothy Severo prosecuted the case.
On January 11, 2019, BRANDON AHART HAMPTON, a resident of Florence, South Carolina, was sentenced to 264 months imprisonment followed by 5 years of supervised release. HAMPTON was convicted after a jury trial on February 21, 2018, of Brandishing a Firearm During and in Relation to a Crime of Violence. He previously pled guilty to a charge of Hobbs Act Robbery on February 6, 2018. The evidence at trial showed that on December 5, 2014, HAMPTON entered the ABC Store #8 in Spring Lake, North Carolina armed with a handgun. HAMPTON pointed the firearm at the clerk’s head and threatened to kill a store clerk. HAMPTON moved the clerk at gunpoint to the back office where the safe was located. HAMPTON threatened to shoot the clerk when the clerk could not get the safe open fast enough. HAMPTON fled the store and was captured later. The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Alcohol, Beverage Control Law Enforcement Division, the Cumberland County Sheriff’s Office, Ft. Bragg Military Police and the Spring Lake Police Department. Assistant United States Attorney Jane J. Jackson represented the government in this case.
On January 16, 2019, MYKEL LEVONT DAVIS, 38, of Elizabeth City was sentenced to 110 months’ imprisonment, followed by 3 years of supervised released. On October 9, 2018, DAVIS pled guilty to being a felon in possession of a firearm. On March 2, 2018, the Elizabeth City Police Department conducted a traffic stop of a vehicle driven by DAVIS, who attempted to elude police. After apprehending DAVIS and the vehicle’s other occupants, a search of the car revealed that DAVIS possessed a stolen .9mm handgun. DAVIS was a convicted felon at the time of the incident and had other outstanding warrants. The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Elizabeth City Police Department. Assistant United States Attorney Robert J. Dodson prosecuted the case for the government.
On January 16, 2019, ANTHONY JERROD HIGH, 40, of Sharpsburg, North Carolina was sentenced to 42 months imprisonment, followed by 5 years of supervised release, and DARLENA MOORE HIGH, also known as “Darlene High,” 50, of Wilson, North Carolina was sentenced to 15 months imprisonment, followed by 3 years of supervised release. The prosecution of ANTHONY and DARLENA HIGH, a husband and wife couple, was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), which has focused on heroin and cocaine trafficking in Halifax, Nash and Edgecombe counties. On July 11, 2018 ANTHONY HIGH pled guilty to distribution of a quantity of cocaine base (crack) and possession of a firearm in furtherance of a drug trafficking crime. On the same date, DARLENA HIGH pled guilty to possession with intent to distribute a quantity of cocaine. According to the investigation, the Rocky Mount Police Department utilized a confidential informant to purchase crack cocaine from ANTHONY HIGH on two occasions in September 2017. On November 17, 2017, the Halifax County Sheriff’s Office initiated a traffic stop on a vehicle driven by ANTHONY HIGH after seeing ANTHONY HIGH meet with a known drug trafficker. DARLENA HIGH, was a passenger in the vehicle. During a search of the vehicle, officers seized individually packaged marijuana and a loaded Taurus 9mm handgun from the center console. At the time of this traffic stop, ANTHONY HIGH who had previously been convicted of second degree murder and two counts of assault with a deadly weapon with intent to kill, which prohibited him from possessing a firearm. Officers later found 303 grams of cocaine during a search of DARLENA HIGH. DARLENA HIGH stated she received the cocaine from her husband, ANTHONY HIGH. Investigation of this case was conducted by the Drug Enforcement Administration, Rocky Mount Police Department, and Halifax County Sheriff’s Office. Assistant United States Attorney Dena King represented the government.
On January 18, 2019, COVIA SMITH was found guilty by a federal jury of distribution of cocaine and marijuana. Members of the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) have been conducting an investigation into a violent drug trafficking organization in Brunswick County under OCDETF Operation Hell Swamp. During the investigation, agents learned that SMITH was selling large amounts of cocaine. SMITH had a motorcycle for sale, and undercover ATF agents reached out to SMITH under the guise of purchasing the motorcycle. On the first day they met, SMITH gave a small amount of marijuana to an ATF undercover Special Agent. On the second date they met, SMITH sold cocaine to an undercover Special Agent. On a third date, SMITH sold cocaine to a confidential informant. At sentencing scheduled at a later date, Smith, who is a career offender, will be facing a guideline range of 262-327 months. The case was prosecuted by Assistant United States Attorney Scott Lemmon.
On January 18, 2019, KENDRICK DEQUAN ROGERS, also known as “Bentley,” 26, of Raleigh, North Carolina was sentenced to 125 months imprisonment, followed by 5 years of supervised release, BRENDON RASHAD WHITE, also known as “B White,” 21, of Wilson, North Carolina was sentenced to 84 months imprisonment, followed by 5 years of supervised release, and COHN DEANGELO HINTON, 49, of Raleigh, North Carolina was sentenced to 42 months imprisonment, followed by 4 years of supervised release. The prosecution of ROGERS, WHITE, and HINTON was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), which has focused on heroin and cocaine trafficking in Nash and Wilson counties. ROGERS, WHITE, and HINTON were named in a four-count Indictment filed on June 13, 2018 charging them with drug conspiracy running from at least September 2, 2016 until April 5, 2018. On October 9, 2018, ROGERS pled guilty to the conspiracy to distribute and possess with the intent to distribute five hundred (500) grams or more cocaine, twenty-eight (28) grams or more of cocaine base (crack), one hundred (100) grams or more of heroin, and a quantity of marijuana as well as possession with intent to distribute five hundred (500) grams or more cocaine, one hundred (100) grams or more of heroin, a quantity of cocaine base (crack) and a quantity of marijuana. On August 13, 2018, HINTON pled guilty to the conspiracy charge as well as possession with intent to distribute five hundred (500) grams or more cocaine, one hundred (100) grams or more of heroin, a quantity of cocaine base (crack) and a quantity of marijuana. On September 12, 2018, WHITE pled guilty to the conspiracy charge as well as possession with intent to distribute five hundred (500) grams or more cocaine, one hundred (100) grams or more of heroin, a quantity of cocaine base (crack) and a quantity of marijuana. According to the investigation, ROGERS, WHITE, and HINTON were a part of a drug trafficking organization that distributed cocaine, cocaine base (crack), heroin, and marijuana throughout Wilson and Wake counties. The investigation revealed that in April 2018, WHITE and ROGERS were collecting money to travel to New York to obtain drugs. On April 4, 2018, WHITE travelled from Wilson, North Carolina to Long Island, New York. On April 5, 2018, after returning back to North Carolina, law enforcement initiated a traffic stop in Nash County on a car driven by HINTON with ROGERS and WHITE as passengers. During a search of the car, officers seized 1,223 grams of cocaine, 101 grams of heroin, 25 grams of cocaine base (crack), and 2,721 grams of marijuana. The investigation revealed this group had completed at least three trips to New York in the past to purchase drugs. Investigation of this case was conducted by the Drug Enforcement Administration, Wilson Police Department, Nash County Sheriff’s Office, Raleigh Police Department, Wilson County Sheriff’s Office, Wake County Sheriff’s Office, and North Carolina Highway Patrol. Assistant United States Attorney Dena King represented the government.
On January 16, 2019, KHALIEF BALLARD, 22 of New Hanover County was sentenced to 81 months’ imprisonment, followed by 5 years of supervised release. On October 18, 2018, BALLARD pled guilty to possessing with the intent to distribute a quantity of cocaine base (crack) and possession of a firearm in furtherance of a drug trafficking crime. On January 18, 2018, Wilmington Police Officers stopped an automobile driven by BALLARD in the area of Shipyard Boulevard, Wilmington North Carolina. The police had received information that BALLARD and the car he was driving had been involved in a shooting on January 14, 2018. Officers detected an odor of marijuana coming from the car. Officers searched the glovebox and found a loaded 40 caliber handgun with an extended magazine and a quantity of crack cocaine. According to law enforcement, BALLARD was associated with a Wilmington Gang. The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wilmington Police Department Gang Unit. Assistant United States Attorney Timothy Severo prosecuted the case.
On January 18, 2019, KEVIN FAIRCLOTH 38, of Duplin County, was sentenced to 144 months’ imprisonment, followed by 5 years of supervised release and SARAH FAIRCLOTH 26, of Duplin County was sentenced to 2 years imprisonment followed by 3 years supervised release. On August 22, 2018 KEVIN FAIRCLOTH pled guilty to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On July 12, 2018, SARAH FAIRCLOTH pled guilty to conspiracy to possess with the intent to distribute a quantity of methamphetamine and possession with intent to distribute a quantity of methamphetamine. On November 8, 2017, an operative working at the direction of the Duplin County Sheriff’s Narcotics Division ordered a quantity of methamphetamine from KEVIN FAIRCLOTH. Detectives stopped a car in which KEVIN and SARAH FAIRCLOTH were passengers in the back seat on the way to deliver the methamphetamine. A loaded firearm was found at KEVIN FAIRCLOTH’S feet. SARAH FAIRCLOTH was searched at the jail and found to have more than an ounce of methamphetamine on her person. According to law enforcement, the investigation revealed that KEVIN FAIRCLOTH was involved with the distribution of multiple kilograms of methamphetamine in the Duplin County area during 2017 until the time of his arrest. This case is part of the DEA lead OCDETF operation “House of Usher”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation is focused on the distribution of methamphetamine in Duplin, Sampson and New Hanover Counties. The investigation of this case was conducted by the Drug Enforcement Administration and the Duplin County Sheriff’s Office. Assistant United States Attorney Timothy Severo prosecuted the case.
On January 23, 2019, LAQUIN CORBIN, 34, of Fayetteville, was convicted by a federal jury of possession of a firearm by a convicted felon. CORBIN has an extensive criminal record; and was found in possession of an AR-15 assault rifle, a .380 handgun with extended magazine, and almost 200 rounds of ammunition at his apartment while on probation and post release supervision. The jury was out for 15 minutes or less before returning with their guilty verdict. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Fayetteville Police Department, North Carolina Department of Public Safety, Cumberland County Sheriff’s Office, North Carolina Department of Corrections, and North Carolina State Highway Patrol. The case was prosecuted by Assistant United States Attorney Phillip Rubin.
On January 25, 2019, KEVIN JUNIOR GRANT, 34, of Lumberton, was sentenced to 180 months imprisonment followed by 5 years of supervised release. On October 18, 2018, GRANT pled guilty to distribution of heroin, possession with intent to distribute cocaine and marijuana and possession of a firearm in furtherance of a drug trafficking crime. In 2017 and 2018 the Lumberton Police Department repeatedly caught GRANT with distribution quantities of narcotics. On several occasions he was also caught possessing a firearm. The investigation of this case was conducted by the Lumberton Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
In addition to violent crime and drug trafficking cases discussed above, our Office indicted two cases under the Project Safe Childhood strategy. It is important to note that charges and allegations contained in the Indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
On January 16, 2019, an eleven-count indictment was returned charging ALAN SIGFRED ANDERSEN, age 57, of Elizabeth City, North Carolina with ten counts of Receipt of Child Pornography and one count of Possession of Child Pornography. The indictment alleges that, beginning at a time unknown and ending on February 28, 2018, ANDERSEN received at least ten images containing visual depictions of minors engaged in sexually explicit conduct. The indictment further alleges that on December 28, 2018, ANDERSEN was found to be in possession of digital media containing images and videos involving minors engaged in sexually explicit conduct. If convicted of these charges, ANDERSEN would face a maximum of twenty years’ imprisonment and up to a lifetime of supervised release following any term of imprisonment. The case is being investigated by Homeland Security Investigations. Assistant United States Attorney Melissa Belle Kessler is prosecuting the case for the government.
Also on January 16, 2019, an eleven-count indictment charging JAMES ROBERT BONNETTE, age 38, of Hubert, North Carolina, with ten counts of Receipt of Child Pornography and one count of Possession of Child Pornography. The indictment alleges that, beginning at a time unknown and ending on October 30, 2017, BONNETTE received at least ten images containing visual depictions of minors engaged in sexually explicit conduct. The indictment further alleges that on October 30, 2017, BONNETTE was found to be in possession of digital media containing images and videos involving minors engaged in sexually explicit conduct. If convicted of these charges, BONNETTE would face a maximum of twenty years’ imprisonment and up to a lifetime of supervised release following any term of imprisonment. The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Melissa Belle Kessler is prosecuting the case for the government.
The Office continued to enforce our nation’s immigration and election laws during the shutdown. On January 18, 2019, RAMON ESTEBAN PAEZ-JEREZ, age 59, of The Dominican Republic, was sentenced to 366 days imprisonment, after an August 14, 2018, guilty plea to passport fraud and unlawful voting by an alien. According to the Criminal Information, PAEZ-JEREZ was ordered deported from the United States and failed to appear for his scheduled removal. Thereafter, according to court records, PAEZ-JEREZ assumed a fraudulent identity and applied for amnesty. PAEZ-JEREZ, as mentioned in the charging document, was granted lawful permanent status under the false identity and fraudulently naturalized as a United States citizen. Court records further show that on September 16, 2009, PAEZ-JEREZ made a false statement in an application for a United States passport when he applied under the fraudulent identity and failed to disclose his real name. Moreover, on November 8, 2016, PAEZ-JEREZ illegally voted in the General Election of 2016 in Wake County, North Carolina, knowing he had illegally obtained United States citizenship. Immediately prior to sentencing, PAEZ-JEREZ was denaturalized as a United States citizen in a civil proceeding. PAEZ-JEREZ was sentenced by United States District Judge Louise W. Flanagan who, in addition to the term of incarceration, issued a judicial order of deportation ordering PAEZ-JEREZ’s prompt removal from the United States to the Dominican Republic upon release from federal custody. The civil denaturalization case was prosecuted by the Civil Division of the United States Attorney’s Office for the Eastern District of North Carolina in conjunction with the Department of Justice’s Office of Immigration Litigation, District Court Section. The criminal case was investigated under the newly created framework of the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina. The DBTTF represents a joint effort by agents of the Department of State’s Diplomatic Security Service, Homeland Security Investigations, ICE’s Enforcement and Removal Operations, and Citizenship and Immigration Services.
Also, on January 7, 2019, SAIRAM YERUVA, age 44, a resident of Cary, North Carolina, and a naturalized United States citizen from India, pleaded guilty to conspiracy to commit visa fraud as charged in a Criminal Information. The Criminal Information alleges that YERUVA, and others, conspired to submit false and misleading information to United States Citizenship and Immigration Services in support of at least one hundred eighty-three (183) initial H-1B petitions and at least one-hundred (100) H-1B extension petitions that were filed on behalf of KRONSYS, INC., CYGTEC, INC., and ARKSTEK, INC. According to the charging document, YERUVA, and others, declared in their initial petitions that their H-1B nonimmigrant foreign workers would be employed by the companies at specific work locations in or near Raleigh, North Carolina or Aurora, Colorado for the sole purpose of developing internal, or “in-house”, information technology projects. The petitions also declared that the H-1B workers would be paid the prevailing wage throughout the entirety of their H-1B status with the companies. Rather than developing the “in-house” projects, the H-1B workers provided IT consulting services to end clients throughout the United States, thereby earning KRONSYS, INC., CYGTEC, INC., and ARKSTEK, INC. at least $26,225,000. Many of the H-1B workers were “benched” while they waited for their initial end client assignment to begin or while they were in between end client assignments. “Benching” refers to the practice of placing H-1B foreign workers in nonproductive status without pay while they search for new end client assignments. The H-1B program is intended to assist employers who cannot otherwise obtain needed business skills and abilities from the United States workforce. The H-1B program authorizes these employers to temporarily employ foreign workers as nonimmigrants in specialty occupations. Speculative employment is not permitted under the H-1B program, as the program is not intended as a vehicle for foreign workers to engage in a job search, or for employers to bring in foreign workers to meet possible workforce needs. YERUVA faces maximum penalties of five years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment. The case is being investigated by the Document and Benefit Fraud Task Force (DBFTF). The investigation is led by Homeland Security Investigations with the assistance of United States Citizenship and Immigration Services.
Our White Collar prosecutions also continued during the shutdown. On January 16, 2019, ELIZABETH HAYES COX, 61, an Eastover, NC was sentenced to 14 months imprisonment followed by 3 years of supervised release. On July 17, 2018, COX pled guilty to the theft of approximately $68,840.00 in Social Security Administration (SSA) benefits and approximately $44,629.48 in Department of Veterans Affairs (DVA) benefits. COX was also ordered to pay restitution of those amounts to the SSA and DVA. Beginning in April 2000, COX and her late husband filed a birth certificate of a child, Oliver Cox, with the Wake County Human Services Office of the Register of Deeds. The birth certificate was fraudulent and the alleged child did not exist. As a result of this fraudulent birth certificate, a Social Security number was issued for the fictitious child. Over a period of approximately 17 years, COX received Social Security and Veterans Benefits on behalf of her fictitious child. She and her late husband received this benefits by continuously submitting fraudulent documents attesting that the fictitious child was entitled to both SSA and DVA funds. The investigation of this case was conducted by the United States Department of Veterans Affairs, Office of the Inspector General and the Social Security Administration, Office of the Inspector General. Assistant United States Attorney Melissa Belle Kessler represented the United States in this case.
Additionally, on December 27, 2018, CHRISTIAN GERALD DESGROUX, age 58, of Raleigh was charged with contacting the 911 Raleigh-Wake Communication Center, pretending to be a United States Federal Officer, and falsely telling the dispatcher that he was pursuing ten illegal immigrants transporting a bomb in a van on Glenwood Avenue in Raleigh, North Carolina– all in violation of Title 18, United States Code, Section 844(e). If convicted of this charge DESGROUX would face maximum penalties of 10 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment. The charges and allegations contained in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law. The case is being investigated by the Department of Homeland Security and the Raleigh Police Department. Assistant United States Attorneys Gabriel Diaz and Jason Kellhofer are prosecuting the case for the government.
[1] Take Back North Carolina Initiative is the initiative of the United States Attorney’s Office for the Eastern District of North Carolina, which emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement
U.S. Attorney’s Office thanks federal employeesRead the Press Release
Indianapolis - On behalf of the United States Attorney's Office, I want to thank the nearly 800,000 employees in federal service who persevered throughout the recent government shut down. I particularly appreciate the dedication of the professionals in my office and the DOJ as well as my federal partners at FBI, DEA, ATF, Marshal Service, Homeland Security Investigations, ICE, IRS-Criminal Investigations, Secret Service, the Bureau of Prisons, and many others in law enforcement.
The responsibility of protecting our country from threats foreign and domestic is a privilege that never ceases and your willingness to continue working, often putting your personal safety at risk, to protect and serve our public is a remarkable gesture. Very few household budgets can withstand the delay of two bi-weekly paychecks, but I know all of you did just that.
I am truly proud of your dedication and loyalty to the American public. It is an extraordinary blessing to be able to call you my colleagues and extend to you my gratitude.
Two Men Sentenced for Unlawful Contact with Endangered Florida PanthersRead the Press Release
Fort Myers, FL – On December 27, 2018, U.S. Magistrate Judge Carol Mirando sentenced Javier Torres (42, Miami) to 14 days’ imprisonment for harassing two endangered Florida panther kittens. The court also ordered Torres to pay a $1,000 fine, and sentenced him to complete 200 hours of community service and to serve three years’ probation. On December 18, 2018, Judge Mirando sentenced Alfredo Lopez de Queralta (46, Miami) to complete 100 hours of community service and serve 2 years’ probation in connection with the same incident. Both men previously pleaded guilty on September 12, 2018.
According to court documents, in February 2017, Torres crawled into a Florida panther den in the Big Cypress National Preserve in Collier County and unlawfully removed two panther kittens. Lopez de Queralta filmed Torres as he displayed the kittens for the camera. Later, Lopez de Queralta uploaded and shared segments of the video on YouTube.
“Florida panthers are iconic species that are protected under the Endangered Species Act,” said Luis Santiago, Special Agent in Charge, Southeast Region, United States Fish and Wildlife Service. “This case demonstrates our commitment to protect these species so that they can be recovered and be a part of the landscape for future generations.”
Florida panthers are considered to be among the most critically endangered large mammal species in the world, and experts estimate fewer than 200 Florida panthers are alive today.
This case was investigated by the United States Fish and Wildlife Service, the Florida Fish and Wildlife Conservation Commission, and the National Park Service. It was prosecuted by Assistant United States Attorney Simon Eth.
Two Cuban Citizens Indicted for Conspiracy to Commit Bank Fraud and Bank FraudRead the Press Release
Orlando, Florida – On January 4, 2019, United States Attorney Maria Chapa Lopez announced the return of an indictment charging Catiel Marquez Gonzalez (21) and Yeran Antigua Martinez (37), citizens of Cuba, with conspiracy to commit bank fraud. The indictment also charges Marquez Gonzalez with three substantive counts of bank fraud and Antigua Martinez with eight substantive counts of bank fraud. If convicted, each faces a maximum penalty of 30 years in federal prison on each count.
According to the indictment, beginning in July 2017, and continuing through at least January 2018, Marquez Gonzalez and Antigua Martinez conspired with each other and other persons to commit bank fraud against federally insured financial institutions. To carry out their scheme, Marquez Gonzalez and Antigua Martinez and their co-conspirators burglarized United States Postal Service mailboxes and stole mail, including personal checks. They then altered the stolen checks to bear their own names and the names of co-conspirators and deposited the altered checks into accounts they controlled.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Postal Inspection Service. It will be prosecuted by Assistant United States Attorney Kara M. Wick.
The xDedic Marketplace, A Website Involved in the Illicit Sale of Compromised Computer Credentials and Personally Identifiable Information, Shut DownRead the Press Release
Tampa, Florida - U.S. Attorney Maria Chapa Lopez, along with Special Agent in Charge Eric Sporre, FBI-Tampa Division, and Special Agent in Charge Mary Hammond, IRS-Criminal Investigation, today announced the seizure of the xDedic Marketplace, a website that operated for years and was used to sell access to compromised computers worldwide and to personally identifiable information of U.S. residents. The xDedic administrators strategically maintained servers all over the world to facilitate the operation of the website.
The international operation to dismantle and seize this infrastructure is the result of close cooperation with law enforcement authorities in Belgium and Ukraine, as well as the European law enforcement agency Europol. On January 24, 2019, seizure orders were executed against the domain names of the xDedic Marketplace, effectively ceasing the website’s operation.
The xDedic Marketplace operated across a widely distributed network and utilized bitcoin in order to hide the locations of its underlying servers and the identities of its administrators, buyers, and sellers. Buyers could search for compromised computer credentials on xDedic by desired criteria, such as price, geographic location, and operating system. Based on evidence obtained during the investigation, authorities believe the website facilitated more than $68 million in fraud. The victims span the globe and all industries, including local, state, and federal government infrastructure, hospitals, 911 and emergency services, call centers, major metropolitan transit authorities, accounting and law firms, pension funds, and universities.
The U.S. investigation was led by the FBI and IRS-CI, with assistance from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and the Criminal Division’s Computer Crime and Intellectual Property Section.
The joint Belgian-Ukrainian investigation was led by the Federal Prosecutor’s Office and the Federal Computer Crime Unit of Belgium, and the National Police and the Prosecutor General’s Office of Ukraine, with significant support by Europol.
Additionally, the German Bundeskriminalamt provided assistance in the operation to seize xDedic’s infrastructure.
Texas Man Sentenced to 35 Years in Prison for “Sextorting” Minors in Eight StatesRead the Press Release
A Texas man was sentenced on Jan. 9 to 420 months in prison, to be followed by a lifetime of supervised release, for producing child pornography in 2016 and committing a sex-related felony involving a minor while being required to register as a sex offender, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney John C. Milhiser of the Central District of Illinois.
Mark P. Barnwell, 36, of Whitehouse, Texas, pleaded guilty before U.S. District Court Judge Joe Billy McDade of the Central District of Illinois on Aug. 29, 2018, to one count of producing child pornography and one count of committing a sex-related felony involving a minor while being required to register as a sex offender.
According to admissions made in connection with his guilty plea, Barnwell, at the time a registered sex offender, exploited minors online through the use of false personas on Facebook. Barnwell controlled multiple female-presenting profiles on Facebook. Using these profiles, Barnwell contacted female Facebook profile users and advertised a modeling opportunity he claimed would pay up to thousands of dollars per photo shoot.
At Barnwell’s urging, the minors that accepted the offer then took and sent to him photographs that they believed were being produced for the purposes of a modeling portfolio. The minor victims believed they would be paid by cash, check, or direct deposit once they completed the modeling portfolio process. At Barnwell’s explicit direction, the photographs taken by the minors progressed from various stages of undress to sexually suggestive and/or sexually explicit photographs of themselves.
Once he obtained compromising images, Barnwell threatened to injure the minor victims’ reputations and embarrass them by posting their nude pictures online if they failed to comply with demands for additional images. In total, Barnwell used this scheme to obtain nude photographs from 43 minor victims located in nine judicial districts across eight states.
In addition to the material, including videos and images, relating to sexual exploitation of children discovered on Barnwell’s devices, law enforcement authorities also found multiple videos captured by Barnwell, including several where he filmed up women’s skirts in public or attempted to do so. Authorities additionally discovered a large number of videos where Barnwell surreptitiously filmed women using public bathrooms. The authorities also discovered what is believed to be the hidden camera he used to capture the videos.
The charges are the result of a joint investigation by the U.S. Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Office. Vital assistance was provided by the U.S. Attorneys’ offices for the Central District of California, Southern District of Mississippi, District of Nevada, Eastern District of Texas, Northern District of Texas, Western District of Washington, Northern District of Iowa, and Southern District of West Virginia. This case is being prosecuted by Assistant U.S. Attorneys Ronald Hanna and Katherine Legge of the Central District of Illinois and Trial Attorney William Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Terminix Branch Manager Sentenced for Illegally Applying Restricted-Use Pesticide to Multiple Residence in the U.S. Virgin IslandsRead the Press Release
Jose Rivera, 59, former Branch Manager of TERMINIX INTERNATIONAL USVI LLC (TERMINIX USVI), was sentenced on Jan. 17, 2019, to 12 months in prison for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Two of the applications were at the Sirenusa condominium resort complex on St. John where a family of four fell seriously ill in March 2015, after the unit below them was fumigated. In September 2018, Rivera pleaded guilty to four-count of the counts charged in an indictment charging violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) for application of a restricted-use pesticide in a manner inconsistent with its label.
According to the plea agreement, Rivera was certified as a pesticide applicator by the Virgin Islands Department of Planning and Natural Resources and received pesticide applicator training from the University of the Virgin Islands. Based on his training, Rivera knew that he was required to read the pesticide label and follow all instructions when using any pesticide. In short, the defendant was instructed that federal law requires applicators to follow the pesticide use instructions on the label. The label on methyl bromide states that its use is restricted to the location and manner on the label, and the label does not authorize application of methyl bromide in a residential unit. Rivera applied methyl bromide, a registered restricted-use pesticide, in a manner inconsistent with the use instructions on the label at the residences named in the counts of conviction.
In November, 2017, the companies TERMINIX LP and TERMINIX, USVI, Rivera’s employer, were sentenced for violations of FIFRA, based on their earlier guilty pleas. Terminix USVI, was sentenced to pay $4.6 million in fines and $1.2 million in restitution to the EPA for response and clean-up costs at the St. John resort. Terminix International Company LP was sentenced to pay a fine of $4.6 million and will perform community service related to training commercial pesticide applicators in fumigation practices and a separate health services training program.
In 1984, the EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted and largely limited to commodity applications for quarantine and pre-shipment purposes. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they may only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. Pesticides can be very toxic and it is critically important that they be used only as approved by EPA.
The case was investigated by EPA Criminal Investigation Division working cooperatively with the Virgins Islands government and, the Agency for Toxic Substances and Disease Registry.
Senior Litigation Counsel Howard P. Stewart of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Kim L. Chisholm of the District of the Virgin Islands are prosecuting the case with assistance of Patricia C. Hick, EPA Region II Regional Criminal Enforcement Counsel.
St. Paul Police Officer Charged with Federal Civil Rights OffenseRead the Press Release
Brett Palkowitsch, 31, an officer with the St. Paul Police Department, was indicted on Jan. 16 by a federal grand jury in Minneapolis for using excessive force against an arrestee, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division and FBI Minneapolis Special Agent in Charge Jill Sanborn.
Today’s indictment charges Palkowitsch with a single count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. The indictment alleges that Palkowitsch used unreasonable force when he kicked arrestee F.B. repeatedly while F.B. was on the ground and in the grips of a police canine, resulting in bodily injury.
The indictment carries a maximum penalty of 10 years of imprisonment and a $250,000 fine. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case was investigated by the Minneapolis Division of the FBI, and is being prosecuted by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Justice Department’s Civil Rights Division.
Springfield Man Pleads Guilty to Second Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man with a prior felony conviction for bank robbery pleaded guilty in federal court today to robbing Guaranty Bank in Springfield.
Donald David Hosey III, 39, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Jan. 15, 2019, federal indictment. Hosey has a prior conviction for a nearly identical bank robbery in 2007.
According to court documents, Hosey entered Guaranty Bank, 2109 N. Glenstone in Springfield, on Nov. 29, 2018. He approached a bank teller and passed her a note that said, “Give me all your money. I have a gun don’t make me use it.” The teller complied with the threatening note and gave him $833 from her teller drawer. Hosey then fled from the bank.
Springfield police officers received a tip on Dec. 3, 2018, indicating that Hosey was the person responsible for the bank robbery. They learned that Hosey was staying at the Flagship Inn in Springfield. According to staff at the Flagship Inn, Hosey was behind on his rent but within an hour of the robbery, he repaid all of the back rent owed in cash. Officers contacted Hosey and arrested him.
Under federal statutes, Hosey is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
South Texas Clinic Owner Sentenced to 30 Years in Prison for Her Role in $20 Million Medicare Fraud SchemeRead the Press Release
A clinic owner and operator was sentenced to 360 months in prison on Jan. 24 for her role in a scheme to defraud Medicare out of payments for medical services. Ann Shepherd was convicted at trial in the Southern District of Texas along with her co-defendants, Dr. John Ramirez and Yvette Nwoko.
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.
Ann Nwoko Shepherd, 62, of Houston, Texas was sentenced by U.S. District Judge David Hittner of the Southern District of Texas. Judge Hittner also ordered the defendant to pay $20.928 million in restitution and to forfeit $250,000.
According to evidence presented at trial, from in or around December 2011 to in or around August 2015, John Ramirez, M.D., a physician, Ann Shepherd and Yvette Nwoko conspired and schemed to defraud Medicare out of payments for medical services. Shepherd owned and operated Southwest Total Medical Inc., a purported medical clinic doing business as Amex Medical Clinic in Houston. Shepherd, along with Yvette Nwoko sold medical orders and other documents signed by Dr. Ramirez 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.
Ann Shepherd also caused Amex Medical Clinic to bill Medicare for purported physician services that were actually provided by an unlicensed practitioner, if at all.
In all, Ann Shepherd caused Medicare to pay approximately $20 million on false and fraudulent claims submitted during the charged conspiracy.
Dr. John Ramirez is expected to be sentenced on Jan. 29 and Yvette Nwoko is expected to be sentenced on April 18, before the Honorable David Hittner.
This case was investigated by the FBI, HHS-OIG and the Texas Attorney General’s MFCU. 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 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.
South Florida Pharmacist Convicted of Health Care Fraud for Role in $100 Million Compounding Pharmacy SchemeRead the Press Release
A federal jury found a South Florida pharmacist guilty of health care fraud for his role in a massive compounding pharmacy fraud scheme, which impacted private insurance companies, Medicare and TRICARE.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
After a four-day trial, Ademola O. Adebayo, 55, of Odessa, FL, was convicted on Jan. 10 of one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and one count of conspiracy to commit money laundering. Sentencing has been scheduled for March 19, 2019 before U.S. District Judge Moreno of the Southern District of Florida, who presided over the trial.
According to evidence presented at trial, from 2012 to 2015, Adebayo and his co-conspirators engaged in a scheme to defraud private insurance companies, Medicare, and TRICARE by submitting false and fraudulent claims for compounded drugs, primarily pain and scar creams, and other prescription medications that were not medically necessary, never provided, or both. The evidence established that in his role as the pharmacist at A to Z Pharmacy, a now-defunct pharmacy located in New Port Richey, Florida, Adebayo conspired to submit or cause the submission of claims that often amounted to several thousands of dollars for a single tube of pain or scar cream. In 2014, when insurance companies discovered the fraud at A to Z Pharmacy and terminated their contracts with the pharmacy, Adebayo agreed to become the straw owner of Havana Pharmacy & Discount in Miami, which Adebayo and his co-conspirators used to continue the fraud, the evidence showed.
The evidence further established that Adebayo personally benefited from the fraud and received $1.5 million, which he used to purchase luxury vehicles, including a Ferrari, a Lamborghini, a Bentley, a Porsche and two Cadillacs, as well as a house in Land O Lakes, Florida, many of which were seized by the government.
Eight other defendants have pleaded guilty in this case. Nicholas Borgesano, 46, of New Port Richey, Florida, was sentenced to 15 years in prison for his role as the owner of A to Z Pharmacy and participation in fraud schemes that involved Havana Pharmacy, Medplus/New Life Pharmacy and Metropolitan Pharmacy, all of Miami; and Jaimy Pharmacy and Prestige Pharmacy, both of Hialeah, Florida.
In addition to Borgesano, the following defendants have previously been sentenced for their roles in the scheme:
- Scott P. Piccininni, 50, of Fort Lauderdale, Florida, sentenced to 51 months in prison;
- Bradley Sirkin, 56, of Boca Raton, Florida, sentenced to 46 months in prison;
- Peter B. Williams, 58, of New Port Richey, sentenced to 26 months in prison, to be served consecutively to a 60-month sentence of imprisonment he is serving as a result of his guilty plea to a separate indictment returned in the Southern District of Florida; and
- Wayne M. Kreisberg, 41, of Parkland, Florida, placed on probation for a term of five years, to be served consecutively to a sentence of probation he is serving as a result of his guilty plea to a separate indictment returned in the Middle District of Florida.
This case was investigated by the FBI with support from HHS-OIG and DCIS and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorneys Timothy P. Loper and Aleza Remis of the Fraud Section.
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.
Seafood Processor Sentenced to 45 Months for Selling Foreign Crab Meat Falsely Labeled as Blue Crab from USARead the Press Release
On January 10, 2019, James R. Casey of Poquoson, Virginia, was sentenced by U.S. District Judge Raymond A. Jackson, in Norfolk, Virginia, to 45 months in prison and a $15,000 fine for his role in conspiring to falsely label millions of dollars’ worth of foreign crab meat as “Product of USA.”
A significant decline in Atlantic blue crab (Callinectes sapidus) harvests that began in 2010 made it increasingly expensive to purchase live Atlantic blue crab and increasingly difficult to profit from the labor-intensive process of picking meat from live-harvested blue crab. According to papers filed in federal court, Casey admitted that, because of this decline, he and his company could not and did not process sufficient quantities of Atlantic blue crab to meet customer demands. To make up the shortfall, Casey and his co-conspirators used foreign crab meat to fulfill customer orders. During the periods when the company did not process blue crab—which sometimes lasted three months—the co-conspirators purchased crab meat (not live crabs) from Indonesia, China, Thailand, Vietnam, and other foreign locales.
The crab meat from Indonesia, China, Thailand, and Vietnam included meat from Portunus pelagicus, Portunus haanii, and Ovalipes punctatus, which are all Indo-West Pacific species of crab that do not live in the continental waters of the United States. The company also purchased crab meat (not live crabs) from Central American sources, which did include Atlantic blue crab, Callinectes sapidus, but also included other species such as Callinectes bocourti, Callinectes bellicosis, Callinectes toxotes, and Callinectes arcuatus.
In his plea agreement, Casey—who was the owner and President of Casey’s Seafood Inc., a wholesale processor of crab meat and other seafood—admitted to substituting foreign crab meat for domestically harvested blue crab. Videos, which were recorded by Casey’s Seafood’s security camera, and which were filed with the court, show company employees removing foreign crab meat from cans and plastic bags, and repackaging the crab meat into plastic containers labeled “Product of USA.” In the filed papers, Casey admitted to directing his employees to substitute and falsely label more than 183 tons of foreign crab meat, which was then sold to grocery stores and independent retailers.
According to the documents filed with the court, Casey further admitted that part of the conspiracy was to purchase discounted foreign crab meat, some of which was referred to as “distressed” because it was approaching or beyond its posted “best used by” dates. Casey admitted to directing company employees to “re-condition” the “distressed” crab meat by re-pasteurizing it, and then packaging the “re-conditioned” meat into the company’s cups, which were labeled and sold as blue crab and “Product of USA.” Casey also directed employees to place labels with “Product of USA” on containers that concealed labels marked as “Product of China” and “Product of Brazil.”
This case was part of an ongoing effort by the Department of Commerce’s National Oceanic and Atmospheric Administration Office of Law Enforcement, in coordination with the Food and Drug Administration, Department of Homeland Security, the Virginia Marine Police, and the Department of Justice to detect, deter, and prosecute those engaged in the false labeling of crab meat. This prosecution is being handled by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of Virginia. The government is represented by Assistant United States Attorney Eric Hurt and Trial Attorney Gary N. Donner.
Retired Highway Patrol Trooper Sentenced for Lying to FBI about GamblingRead the Press Release
WICHITA, KAN. – A retired highway patrol trooper was sentenced Monday to a year on federal probation for lying to the FBI during an investigation into illegal gambling in Wichita, U.S. Attorney Stephen McAllister said.
Michael Frederiksen, 53, Derby, Kan., was convicted in a jury trial in May on one count of making false statements to FBI investigators. During trial, prosecutors presented evidence that in 2014, while Frederiksen was still a Kansas Highway Patrol Trooper, he was filmed taking part in an illegal cash poker game. On Feb. 23, 2017, he was interviewed by FBI agents investigating illegal gambling businesses in Wichita.
The FBI had a video of Frederiksen playing in an illegal cash poker game held Feb. 12, 2014, at 922 1/2 E. Douglas in the Old Town district of Wichita. The site was equipped with poker tables, a cabinet for valuables and poker chips, video surveillance equipment, liquor and snacks. Staff included dealers, someone serving food and a waitress serving drinks and giving massages to the players.
An undercover investigator was at the game posing as a gambler. At one point, the undercover officer tried to use his phone to take photos. The men running the game took him aside and told him he was making other players nervous. They allowed the undercover officer to continue playing, but moved the game to other locations after that night.
During an FBI interview, Frederiksen made false statements, downplaying his involvement in illegal poker and his relationship with the operator of the poker game.
McAllister commended the FBI, the Wichita Police Department, the Internal Revenue Service and Assistant U.S. Attorneys Aaron Smith and Mona Furst for their work on the case.
Randolph County man admits to maintaining a drug houseRead the Press Release
ELKINS, WEST VIRGINIA – Cory Dean Carpenter, of Elkins, West Virginia, has admitted to maintaining a house for drug distribution, United States Attorney Bill Powell announced.
Carpenter, age 24, pled guilty to one count of “Maintaining Drug-Involved Premises.” Carpenter admitted to living at 98 Washington Street in Elkins, and making the home available for distributing methamphetamine, heroin, and cocaine from January 2017 to March 2017.
Carpenter faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Project Huntington Update: Huntington Man Sentenced to Federal Prison for Drug and Gun ConvictionsRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was arrested as part of Project Huntington who previously pled guilty to drug and gun charges was sentenced today to 72 months and 1 day in federal prison, announced United States Attorney Mike Stuart. Eric Lee Burgess, 34, previously entered guilty pleas to distribution of heroin, prohibited possession of a firearm by a drug user, and possession of firearms in furtherance of a drug trafficking crime. Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department.
“Burgess was one of many gun-toting drug dealers arrested in Huntington as part of Project Huntington,” said United States Attorney Mike Stuart. “I’ve said it before, and I’ll say it again – Huntington is no doubt a safer city today because of our collaborative efforts.”
On October 7, 2014, a confidential informant and an undercover ATF agent met with Burgess at Burgess’s residence located at 306 9th Street West in Huntington to purchase heroin. After negotiating the transaction, Burgess distributed approximately 5 grams of heroin to the agent in exchange for $875. Burgess was also observed using heroin and admitted that he possessed a .40 caliber pistol during the transaction. On December 16, 2014, the undercover agent again met with Burgess at his residence. On this occasion, the agent again observed Burgess using heroin and Burgess sold the agent an AR-15 style rifle along with a 30-round magazine.
On April 17, 2018, investigators arrested Burgess at his residence as part of Project Huntington. Investigators conducted a search of Burgess’s residence and seized a number of items including heroin, digital scales, and three firearms with assorted ammunition. Burgess admitted that he intended to distribute the heroin that was seized and that he possessed the firearms to serve as protection during heroin transactions.
Burgess also admitted to meeting with the informant and undercover agent on six additional occasions. On these occasions, Burgess admitted that he sold the informant and agent oxycodone pills, heroin, and four additional firearms. Burgess also admitted that he possessed other firearms during some of the transactions and that he was prohibited from possessing firearms based on his drug usage.
Assistant United States Attorney Joseph F. Adams handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This prosecution is part of Project Huntington, an effort announced by United States Attorney Mike Stuart in March 2018 in response to the opiate epidemic and violent crime in southern West Virginia.
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Project Huntington Update: Final Operation Saigon Sunset Defendant Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Nyanzangusa Baldwin, also known as “Botch,” 45, from Michigan, pled guilty to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Baldwin, who was caught with heroin in August 2017, entered his guilty plea to an indictment charging him with conspiracy to distribute heroin. Operation Saigon Sunset was a joint investigation conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Baldwin is the last of the 15 defendants indicted as a result of Operation Saigon Sunset to plead guilty,” said United States Attorney Mike Stuart. “I want to commend the team involved in the investigation and prosecution of this case. An exemplary job was done by all involved. The conviction of the 15 defendants indicted in this case dismantled a significant drug trafficking network and substantially advanced our efforts to takeback the streets of Huntington.”
Baldwin admitted Manget Peterson asked him to come to Huntington in August 2017 to distribute heroin. He admitted that he distributed heroin from the Ramada Inn Motel in Huntington, West Virginia in August 2017. Officers executed a search warrant on the motel room and seized approximately 35 grams of heroin.
Baldwin faces up to 20 years in federal prison when he is sentenced on May 20, 2019.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Princeton Man Sentenced for Federal Drug CrimesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a Princeton man was sentenced to 108 months in prison for federal drug crimes. Jerome Jones, 54, previously pled guilty to seven counts of distribution of a quantity of cocaine base, two counts of possession with intent to distribute a quantity of cocaine base, and one count of distribution of cocaine. The case was investigated by the Southern Regional Drug and Violent Crime Task Force and the West Virginia State Police.
“Nine years. Nine years,” said United States Attorney Mike Stuart. “Attacking the drug epidemic is one of our top priorities and Jones now gets to spend much of the rest of his productive life behind bars. My office has been incredibly effective putting drug dealers and drug thugs behind bars and we won’t stop until they stop.”
Jones admitted that between May 18, 2016, and November 13, 2017, he sold quantities of cocaine and cocaine base to a confidential informant who was working with police. He further admitted that law enforcement authorities served search warrants at his residence on June 1, 2016, and on December 20, 2017, and seized quantities of cocaine and cocaine base.
Assistant United States Attorney John File handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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Preston County woman sentenced for oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carlee Cuppett, of Kingwood, West Virginia, was sentenced today to two years probation for a drug distribution charge, United States Attorney Bill Powell announced.
Cuppett, age 27, pled guilty to one count of “Distribution of Oxycodone” in September 2017. Cuppett admitted to selling oxycodone in Monongalia County in September 2015.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Philadelphia man indicted on drug and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – David Anthony Richardson, of Philadelphia, Pennsylvania, was indicted by a federal grand jury sitting in Martinsburg on January 23, 2019 on drug and firearms charges, United States Attorney Bill Powell announced.
Richardson, age 33, was indicted on one count of “Possession with Intent to Distribute Cocaine Base,” one count of “Possession with Intent to Distribute Fentanyl,” one count of “Possessing a Firearm in Furtherance of a Drug Trafficking Crime,” and one count of “Unlawful Possession of Firearm.” Richardson is accused of distributing cocaine and fentanyl in Ohio County. Richard, having previously been convicted of two felonies, is also accused of having a .38 special revolver during said drug crimes.
Richardson faces up to 20 years incarceration and a fine of up to $1,000,000 for the cocaine charge and faces up to no less than five years and up to 20 years incarceration for the fentanyl charge. He also faces not less than five years incarceration for the firearm during a drug crime charge and up to 10 years incarceration and a $250,000 fine for the possession of a firearm charge. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Woman Admits Participating in Credit Card ‘Bust Out’ Scheme to Defraud BanksRead the Press Release
NEWARK, N.J. – A Philadelphia, Pennsylvania, woman admitted today that she participated in a scheme to defraud banks by using stolen and altered identities to fraudulently obtain credit cards and then using those cards to make more than $2.5 million in charges that were never repaid, U.S. Attorney Craig Carpenito announced.
Fatou Djambo, 37, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging her with one count of conspiring to defraud financial institutions and one count of aggravated identity theft.
Djambo was originally charged with this conduct in a criminal complaint filed May 22, 2018, along with Talat Ali Maan, 44, of Germantown, Maryland; Syed Rehman, 51, of Jersey City, New Jersey; Kashif Idrees, 36, of Germantown, Maryland; and Jaheed Wahed Ahmed, 54, of Jersey City, New Jersey. Ahmed pleaded guilty to bank fraud conspiracy and aggravated identity theft before Judge Arleo on Jan. 9, 2019. The charges against Maan, Rehman, and Idrees remain pending. Idrees is not in custody, and is a fugitive.
According to documents filed in this case and statements made in court:
The defendants engaged in a scheme to use stolen and fraudulently altered identities to obtain credit cards from banks and then use those credit cards to make purchases that they had no intention to repay, leaving the banks to bear the losses. The defendants stole the identities of actual people and then, in many cases, created “synthetic identities” by pairing the name and Social Security number for an actual person with a fictitious birth date. When creating the synthetic identities, the defendants often used the name and Social Security number of an actual minor and combined them with a fictitious birth date that made the identity appear to be that of an adult.
The defendants used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at banks. The fraudulently obtained credit cards were maintained in good standing with the banks long enough to establish creditworthiness. The defendants then “busted out” the cards by making large purchases and never repaying the debts associated with those purchases.
The defendants also incorporated and registered in various states numerous purported companies that did little or no legitimate business. They obtained credit card processing equipment by opening merchant processing accounts in the names of the sham companies, and then used that equipment to make fraudulent charges on the fraudulent credit cards.
Djambo’s role included arranging for individuals to obtain genuine, but fraudulently obtained, Pennsylvania driver’s licenses, a service for which Maan and Rehman paid her. Djambo also secured addresses in the Philadelphia area to which Maan and Rehman could direct mail containing fraudulently obtained credit cards and other items relating to the scheme. Djambo collected and delivered that mail to conspirators in Jersey City, among other locations.
The charge of conspiring to defraud financial institutions carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The aggravated identity theft charges carries a mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment imposed, and an up to $250,000 fine.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea.
The charges in the complaint are merely allegations, and Maan, Rehman, and Idrees are presumed to be innocent unless and until convicted.
The government is represented by First Assistant U.S. Attorney Rachael A. Honig.
Palm Harbor Man Indicted for Mail and Wire Fraud Relating to IRS Impersonation and Tech Support ScamsRead the Press Release
Tampa, FL – On January 3, 2019, a federal grand jury returned an 11-count indictment charging Glenn Francis (58, Palm Harbor) with conspiracy to commit wire fraud and mail fraud, and with substantive counts of wire fraud, mail fraud, and money laundering. Francis faces a maximum penalty of 20 years in federal prison on each count of wire and mail fraud conspiracy, wire fraud, and mail fraud. He faces up to 10 years in federal prison for each of the three money laundering charges. The indictment also notifies the defendant that the United States is seeking a money judgment for at least $313,370.03, an amount equal to the proceeds of the crimes charged.
According to the indictment, from at least 2016 through January 2019, Francis conspired with India-based call centers to extort money from U.S. residents by impersonating IRS officers and misleading U.S. residents to believe that they owed money to the IRS and that they would be arrested and fined if they did not pay their alleged back taxes immediately; impersonating loan officers and misleading U.S. residents to believe that they would receive loan proceeds upon paying an advance fee to the defendant or others he hired; or impersonating computer technicians and misleading U.S. residents to believe that their computers had been hacked, their identities had been stolen, and/or their computers were infected with viruses and in need of repair, and that the callers would resolve the purported computer problems if paid to do so.
The indictment alleges that the defendant collected the fraud proceeds by withdrawing them from bank accounts he or others he hired (runners) controlled; retrieving the proceeds from money services businesses; and depositing checks and cash equivalents into bank accounts he or his runners controlled. In order to collect the fraud proceeds, the runners were provided with the victims’ names, locations, and amount paid. Runners were then directed to retrieve the fraud proceeds in cash, and turn them over, often less a payment to the runner for opening the account or conducting the transaction.
On January 11, 2019, law enforcement officers executed a search warrant at Francis’s home. Among other items, they seized business and financial records, money transfer receipts, and two electronic devices.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and the defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service–Criminal Investigation, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Treasury Inspector General for Tax Administration, the Department of Homeland Security-Office of Inspector General, and the Pinellas County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Rachel K. Jones.
P.H. Glatfelter Company Agrees to Reimburse Government Costs and Assume Long-Term Responsibility for Massive Superfund Cleanup at Wisconsin’s Fox RiverRead the Press Release
Under a settlement reached with the U.S. Department of Justice’s Environment and Natural Resources Division and the U.S. Environmental Protection Agency, P.H. Glatfelter Company will pay $20.5 million for reimbursement of EPA past costs and natural resource damages and then reimburse all future government costs of overseeing one of the nation’s largest Superfund cleanup projects at Wisconsin’s Lower Fox River and Green Bay Site. Glatfelter also is agreeing to take on responsibility for long-term monitoring and maintenance activities required by EPA. Georgia-Pacific Consumer Products LP is joining this settlement and agreeing to minor adjustments to its commitments under prior settlements.
An enormous amount of cleanup and natural resource restoration work has already been done in Fox River and Green Bay under a set of partial settlements, an EPA administrative cleanup order, and court orders in a federal lawsuit brought by the United States and the State of Wisconsin. The total cleanup costs for the Fox River Site will exceed $1 billion. The cleanup work will reduce the risks to humans and wildlife posed by polychlorinated biphenyls (PCBs) in bottom sediment of the Fox River and Green Bay.
The cleanup remedy for the Fox River Site was jointly-selected by EPA and the Wisconsin Department of Natural Resources. The remedy will remove much of the PCB-containing sediment from the Fox River by dredging. In other portions of the River, contaminated sediment is being contained in place with specially-engineered caps. The dredging and capping will reduce PCB exposure and greatly diminish downstream migration of PCBs to Green Bay.
In 2010, the United States and Wisconsin sued NCR Corporation, Glatfelter, Georgia-Pacific and other parties in a Superfund lawsuit to require them to continue the ongoing cleanup at the Site and pay government costs and natural resource damages. The defendants in the government’s lawsuit included paper companies like Glatfelter and Georgia-Pacific that contaminated the sediment when they made and recycled a particular type of PCB-containing “carbonless” copy paper. NCR and its affiliates produced that paper with PCBs from the mid-1950s until 1971.
Under another settlement reached in 2017, NCR agreed to complete all remaining dredging and capping work at the Site. Today’s settlement requires Glatfelter and Georgia-Pacific to take responsibility for long-term tasks that will continue for many years after the dredging and cap installation is completed in 2019, including periodic monitoring of PCB levels in water and fish and maintenance of the sediment containment caps. This new settlement expands the companies’ obligations under earlier partial settlements and government orders, which already required at least $66 million in expenditures by Glatfelter and at least $154 million by Georgia-Pacific.
The proposed settlement is in the form of a consent decree that must be approved by the federal judge overseeing the legal proceedings over the Fox River Site. If approved, this settlement would end all Superfund litigation over the Site.
This settlement, lodged with the U.S. District Court for the Eastern District of Wisconsin on Jan. 3, 2019, will be subject to a 30-day public comment period after notice of the settlement is published in the Federal Register. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information on cleanup activities at the Lower Fox River and Green Bay Superfund Site, go to the Environmental Protection Agency’s website:
https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0507723
Owner of Income Tax Preparation Business Pleads Guilty to Preparing Falsified Federal Income Tax Returns for ClientsRead the Press Release
BOISE – David Brannum, 55, now of Washougal, Washington, pleaded guilty on January 10, 2019, in United States District Court to preparing false federal income tax returns for clients of his business, “Dave’s Tax Service,” U.S. Attorney Bart M. Davis announced. Sentencing is set for April 17, 2019, before U.S. District Judge B. Lynn Winmill at the Federal Courthouse in Boise.
Brannum pleaded guilty to one count of assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS. According to court records, from 2003 through 2015, Brannum operated his tax preparation business in Idaho and Nevada and submitted hundreds of federal income tax returns. Brannum often claimed false and fraudulent itemized deductions for his clients, which had the effect of decreasing their tax liability and generating improper refunds. Specifically, Brannum (1) inflated the amounts of his clients’ charitable contributions and (2) entered amounts for unreimbursed employee expenses that were not substantiated, that he inflated, or that he knew were not allowable. In total, Brannum’s criminal conduct resulted in over $101,000 in tax loss.
Assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS is punishable by up to three years imprisonment, a term of supervised release of up to one year, and a fine of up to $250,000.
This case was investigated by the IRS Criminal Investigations division.
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Orlando Skilled Nursing Facility, Physician, and Related Providers Agree to Pay $1.5 Million to Resolve Allegations of Illegal Kickback and Patient Referral SchemeRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces that on January 9, 2019, Conway Lakes NC, LLC; its former Administrator, Matthew File; its management company, Clear Choice Health Care, LLC; Clear Choice’s part-owner and President, Jeffrey Cleveland; Clear Choice’s part-owner and Senior Vice President, Geoffrey Fraser; and an Orlando-area orthopedic surgeon, Dr. Kenneth Krumins, agreed to pay $1.5 million to resolve allegations that they engaged in a kickback scheme related to the referral of Medicare and TRICARE patients.
The settlements announced today resolve allegations that Conway Lakes, through File, Cleveland, Fraser, and Clear Choice, conspired to pay Dr. Krumins under a sham “medical director” agreement to induce him to illegally refer Medicare and TRICARE patients to Conway Lakes for rehabilitation services that were billed to the United States. Dr. Krumins’s settlement agreement also resolves allegations that he engaged in a similar kickback scheme with a related home health agency.
The United States alleged that these financial arrangements violated the physician self-referral law, commonly known as the “Stark Law,” and the Anti-Kickback Statute, giving rise to liability under the False Claims Act. Pursuant to two separately executed settlement agreements, Dr. Krumins has agreed to pay $500,000, and Conway Lakes, Clear Choice, Cleveland, Fraser, and File have agreed collectively to pay $1 million to the United States.
“Our office will aggressively pursue health care providers who engage in kickback schemes,” said U.S. Attorney Maria Chapa Lopez. “These schemes drive up costs and undermine patient care. The United States Attorney’s Office will continue to advocate for the integrity of federally subsidized health programs and for the proper care of our seniors and our veterans.”
“Disguising intricate kickback arrangements through directorships and other misrepresented positions corrupts physician decision making and undermines the public’s trust in the healthcare system,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to investigate health care providers that seek to illegally boost profits at the expense of federal health care programs.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold health care providers accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans, and their families. The Defense Health Agency will keep working closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“These investigations require patience, persistence and a strong commitment to protecting our federally funded healthcare programs. The FBI and its law enforcement partners will continue to identify and investigate those individuals who try to cheat the system,” said Eric W. Sporre Special Agent in Charge of the FBI Tampa Division.
The allegations resolved by the settlement agreements were originally brought in a lawsuit filed by a former employee of Conway Lakes, Jonathan Montes de Oca, under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. Mr. Montes de Oca will receive $267,000 of the proceeds from the settlements.
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Middle District of Florida. Investigative assistance was provided by the U.S. Department of Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Trial Attorney Breanna Peterson and Assistant United States Attorney Jeremy Bloor coordinated the investigation.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The lawsuit is captioned United States ex rel. Montes de Oca v. Conway Lakes NC, LLC et al., Civil Action No. 6:16-cv-1374-ORL-37GJK (M.D. Fla.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Orlando Man Sentenced to More Than Six Years for Possessing with the Intent to Distribute Heroin and Cocaine While on Supervised Release for A Prior Drug CrimeRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Alexander Rosado-Figueroa (45, Orlando) to six years and three months in federal prison for possessing with the intent to distribute heroin and cocaine, while Rosado-Figueroa was on supervised release for a prior drug conviction. Rosado-Figueroa had pleaded guilty to the possession and distribution offenses on July 3, 2018. He admitted to violating the terms of his supervised release on November 13, 2018.
According to court documents, on January 31, 2018, Deputy U.S. Marshals arrested Rosado-Figueroa for violating the terms of his supervised release after he had tested positive for using cocaine and opiates. During the arrest, Rosado-Figueroa was found to be carrying 15.5 grams of cocaine, 7 grams of heroin, and supplies used in the distribution of these controlled substances. When agents from the Orange County Sherriff’s Office Narcotics Unit conducted a search of Rosado-Figueroa’s apartment, they recovered an additional 73 grams of heroin, additional materials used in the distribution of controlled substances, and a handgun with a loaded magazine.
This case was investigated by the U.S. Marshals Service, the U.S. Probation Office, the Drug Enforcement Administration, and the Orange County Sheriff’s Office Narcotics Unit. It was prosecuted by Assistant United States Attorneys Dana E. Hill, Embry J. Kidd, and Kara M. Wick.
Orlando Man Charged with $25 Million Investment Fraud SchemeRead the Press Release
Orlando, Florida – On January 16, 2019, a federal grand jury returned an indictment charging Andres Fernandez (37, Orlando) with 12 counts of wire fraud. If convicted, Fernandez faces a maximum penalty of 20 years in federal prison for each count.
According to the indictment, Fernandez orchestrated an investment scheme that defrauded at least 50 victims out of as much as $25 million and solicited individuals to invest in concert events that Fernandez claimed were being produced by his companies – Kadaae Entertainment Corporation and Kadaae LLC. The indictment further alleges that Fernandez told victims that their investment would be used to fund specific concert events from artists including Julio Iglesias and Pitbull, and promised a return on investment of up to 100 percent. Fernandez used fake contracts and other false documents to convince victims that he and his companies were under contract to produce the events. In fact, neither Fernandez nor his companies were involved in most of the events he had solicited to victims. Fernandez used portions of the funds sent by investors for his own personal use and to pay fraudulent “investment returns” to earlier investors.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Nathan W. Hill.
Oregon Man Sentenced to Life in Prison for Sexually Abusing Children at Orphanage in CambodiaRead the Press Release
On Jan. 18, defendant Daniel Stephen Johnson, 40, of Coos Bay, Oregon, was sentenced to life in federal prison for repeatedly sexually abusing children who lived at an orphanage he operated in Cambodia.
The sentencing was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Billy J. Williams for the District of Oregon.
In a jury trial ending on May 16, 2018, Johnson was convicted on six counts of engaging in illicit sexual conduct in a foreign place and one count each of travel with intent to engage in illicit sexual conduct and aggravated sexual assault with a child. He was sentenced to 30 years in prison on each count of illicit sexual conduct in a foreign place, 30 years for traveling with the intent to engage in illicit sexual conduct, and life in prison for aggravated sexual assault with children. The sentences for engaging in illicit sexual conduct in a foreign place will run consecutively.
According to court documents and information shared during trial, between November 2005 and his arrest in December 2013, Johnson systematically and repeatedly molested children who lived at an unlicensed orphanage he started and ran in Phnom Penh, Cambodia. Johnson funded the orphanage by soliciting donations from church groups in Oregon, California, Texas and elsewhere. Ten Cambodian victims—who ranged in age from seven to 18 years old at the time of abuse—have disclosed Johnson’s abuse or attempted abuse.
Victims described a pattern of molestation that includes, among other things, Johnson making them perform oral sex on him and anally raping them. Multiple victims said they were, on numerous occasions, awoken to Johnson abusing them. Following the abuse, Johnson would sometimes provide his impoverished victims with small amounts of money or food. On one occasion, Johnson gave a victim the equivalent of $2.50 in Cambodian currency.
In 2013, a warrant was issued for Johnson’s arrest on an unrelated case by officials in Lincoln County, Oregon. Local law enforcement officers worked with the FBI to locate Johnson overseas. The FBI in turn worked with the U.S. Department of State to revoke Johnson’s passport based on the Oregon warrant. Through the work of the FBI, Action Pour Les Enfants, a non-governmental organization dedicated to ending child sexual abuse and exploitation in Cambodia, and the Cambodian National Police (CNP), Johnson was located in Phnom Penh.
On Dec. 9, 2013, CNP arrested Johnson. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to a year in prison. Following his release from prison, Johnson was escorted back to the United States by the FBI.
Based on the sexual-abuse allegations against him, the FBI undertook a lengthy investigation of Johnson. During the course of their investigation, agents interviewed more than a dozen children and adults who had resided at the orphanage. Many of the interviews were audio- and video-taped and, in several instances, conducted in Cambodia by trained child-forensic interviewers. Some victims were interviewed multiple times before disclosing Johnson’s abuse.
Johnson was indicted by a federal grand jury in Eugene, Oregon on Dec. 20, 2014 on one count of engaging in illicit sexual conduct in a foreign place. Seven additional charges were added by superseding indictment on May 17, 2017.
While in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
This case was investigated by the FBI with the assistance of the Toledo, Oregon, Police Department. It was prosecuted by Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Jeffrey S. Sweet and Ravi Sinha of the District of Oregon and Assistant U.S. Attorney Amy E. Potter assisted with the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Orchard Park Pain Doctor Pleads Guilty to Using Patient Names Fraudulently to Obtain Controlled SubstancesRead 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 Dr. Paul Biddle, 54, of Amherst, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to identity theft and possession of unlawful hydromorphone HCL. The charges carry a maximum penalty of five years in prison.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that Biddle was an anesthesiologist and pain management doctor who also operated a medical marijuana practice. Between February 9, 2015 and October 16, 2017, the defendant was prescribing controlled substances for two deceased patients. Biddle knew the patients were deceased and used their names and dates of birth knowingly and without lawful authority to obtain controlled substances for himself.
After the death of one of the patients, Biddle wrote 10 prescriptions using the deceased patient’s name and date of birth between November 21, 2016 and October 16, 2017. All of these prescriptions were filled by a pharmacy in Tampa, FL, and shipped directly to the defendant’s home or office. After the death of the second patient, the defendant wrote 23 prescriptions using that deceased patient’s name and date of birth between February 9, 2015 and August 7, 2017. All of these prescriptions were also filled by a pharmacy in Tampa, FL, and shipped directly to the defendant’s home or office. Biddle was obtaining these prescriptions and using them himself.
The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Federal Bureau of Investigation, Western New York Healthcare Fraud Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the New York State Department of Financial Services, under the direction of Maria T. Vullo, Superintendent of Financial Services; Department of Health and Human Services, Office of Inspector General, Office of Investigations, under the direction of Special Agent-in-Charge Scott Lampert; and the Amherst Police Department, under the direction of Chief John Askey.
Sentencing is scheduled for May 9, 2019, at 11:00 a.m. before Judge Wolford.
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Operators of Prison Consultation Company Charged with Conspiring to Defraud Federal Bureau of PrisonsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned a nine-count indictment charging three Michigan residents with conspiracy and fraud charges stemming from an alleged scheme to qualify prospective and current federal inmates who do not require substance abuse treatment for admission into a Federal Bureau of Prisons program that, if completed successfully, will result in a shortened prison term.
Charged in the indictment, which was returned on January 15, 2019, are TONY TUAN PHAM, also known as “Anh Nguyen,” 49, of Grand Rapids, Michigan; SAMUEL COPENHAVER, 47, of Grand Rapids, Michigan, and CONSTANCE MOERLAND, 33, of Hudsonville, Michigan. The three defendants were arrested on January 23.
According to the indictment, the Residential Drug Abuse Program (“RDAP”) is a 500-hour substance abuse treatment program that is administered by the Federal Bureau of Prisons (“BOP”). In order to gain admission to the RDAP, a federal inmate must meet certain criteria, including having a diagnosable and verifiable drug or alcohol abuse disorder. By successfully completing the RDAP, an inmate can qualify for up to 12 months in early release from custody.
The indictment alleges that Pham, Copenhaver and Moerland were managing partners of Michigan-based RDAP Law Consultants, LLC. The defendants solicited prospective and current federal inmates, including individuals in Connecticut, through telephone calls and emails with offers of assistance in applying to, and qualifying for, the RDAP. For a fee, the defendants coached and advised prospective and current inmates on how to gain admission to the RDAP by lying to the BOP about the existence, duration and extent of a qualifying substance abuse disorder.
“The indictment alleges that these defendants profited by coaching federal inmates and prospective inmates to lie about substance abuse issues in order to be released from prison well before each sentencing judge intended,” said U.S. Attorney Durham. “This is a scheme that defrauds the public by taking advantage of an important Bureau of Prisons treatment program that exists to help rehabilitate inmates with real addiction problems in order to prepare them for life after prison.”
“This indictment illustrates the depths to which federal investigators will go to uncover fraud of all types,” said FBI Special Agent in Charge Turner. “The alleged fraudulent methods used to defraud government programs will not be tolerated and will continue to be vigorously investigated.”
“In this alleged RDAP scheme, the fraudsters not only undermined the authority of the judicial system to administer fair and impactful sentences, but they diverted vital substance abuse treatment from inmates who really needed it,” said IRS-CI Special Agent in Charge O’Connell. “IRS-CI’s tracing of fees allowed investigators to uncover the breadth of this alleged fraud and we are proud of our role in this collaborative law enforcement effort.”
The indictment charges Pham, Copenhaver and Moerland with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years. The indictment also charges Pham and Copenhaver with multiple counts of wire fraud, and offense that carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Trial Attorney Avi Perry of the Department of Justice’s Fraud Section, who has been designated as a Special Assistant U.S. Attorney for this matter. The prosecution in the District of Connecticut was facilitated by significant assistance from Assistant U.S. Attorney Meredith George Thomas of the U.S. Attorney’s Office for the Southern District of West Virginia.
U.S. Attorney Durham thanked the U.S. Attorney’s Office for the Western District of Michigan for its assistance in this matter.
Omega Protein Companies Agree to Pay $1 Million to Resolve Allegations They Misrepresented Compliance with Environmental Laws to Obtain a Federal LoanRead the Press Release
Omega Protein Corp. and Omega Protein, Inc. (collectively “Omega”) have agreed to pay $1 million to resolve allegations that Omega obtained a loan from the United States by falsely certifying compliance with federal environmental laws, the Department of Justice announced today. The matter was unsealed on Jan. 17, 2019.
Omega is based in Houston, Texas, and is a leading domestic producer of Omega-3 rich fish oil, protein-rich specialty fishmeal, and organic fish solubles for livestock and aquaculture feed manufacturers.
“This settlement demonstrates our continuing vigilance in protecting the integrity of federal programs and taxpayer dollars,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Companies will face appropriate consequences if they misrepresent their eligibility to participate in federal programs and divert resources from those who should receive federal support.”
“Businessmen and companies that lie to get their hands on taxpayer money will be held accountable for their actions,” said U.S. Attorney David C. Joseph. “When some people cheat, those who play by the rules are put at a disadvantage. This million dollar payment from Omega Protein to the U.S. Treasury is part of our ongoing effort to combat fraud and protect the taxpayer’s dollar.”
The settlement announced today resolves allegations that Omega violated the False Claims Act in March 2010 when it certified to the Department of Commerce that it was complying with federal environmental laws to obtain a $10 million loan. At the time Omega submitted the certification, it was knowingly violating the Clean Water Act (CWA). In 2013, Omega Protein, Inc. pled guilty to violations of the CWA between May 2008 and December 2010, by unlawfully discharging pollutants into U.S. waters and, between April 2009 and September 2010, by unlawfully discharging a harmful quantity of oil into U.S. waters. The criminal matter was United States v. Omega Protein Inc. No. 2:13-cr-00043-RAJ-TEM (E.D. Va.).
The civil settlement results from a lawsuit brought by Keland O. Harrison, a former employee of Omega, filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the United States for false claims, and share in any recovery. As part of today’s resolution, Mr. Harrison will receive $200,000 of the settlement proceeds.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Western District of Louisiana, and the United States Department of Commerce.
The civil case is captioned United States ex rel. Harrison v. Omega Protein Corp. and Omega Protein, Inc., Civil Action No.16-cv-00359 (W.D. La.). The claims resolved by the settlement, except as admitted in the criminal plea, are allegations only, and there has been no determination of liability.
Oceanside Man Sentenced to Prison for Stealing Benefits Intended for Widow of Military VeteranRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 and Assistant U.S. Attorney Matthew C. Brehm (619) 546-8983
NEWS RELEASE SUMMARY – January 28, 2019
SAN DIEGO – Michael Vanden Brink of Oceanside was sentenced by U.S. District Judge John A. Houston today to eight months in federal prison for stealing over $145,000 in benefits intended for the widow of a military veteran.
At the time of his guilty plea on September 5, 2018, Brink admitted that after the widow’s death in 2004, he converted her Department of Veterans Affairs benefits to his own use. Brink further acknowledged that he knew that he was not entitled to the victim’s benefits, and that he knew the money deposited into the widow’s bank account (over which he had control) rightfully belonged to the United States. But rather than notifying the bank that the widow had died, he used the funds to pay for his own personal expenses, ultimately converting a total of $145,035 in Veterans Affairs money to his own use.
U.S. Attorney Robert S. Brewer commended prosecutors and the Criminal Investigators Division of the Department of Veterans Affairs Office of Inspector General, for their hard work on the case.
“The United States Attorney’s Office is committed to protecting the integrity of the Department of Veterans Affairs and the benefits it provides,” Brewer said. “The prison sentence imposed in this case is an appropriate punishment for someone who, for more than a decade, stole taxpayer money intended for our nation’s veterans and their families.”
In addition to his prison sentence, Judge Houston ordered Brink to serve three years on supervised release and to pay $145,035 in restitution to the Department of Veterans Affairs.
DEFENDANT Case Number 18-cr-3894-JAH
Michael Vanden Brink Oceanside, CA Age: 57
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment
AGENCIES
U.S. Department of Veterans Affairs, Office of Inspector General – Criminal Investigations Division
Northrop Grumman Systems Corporation Agrees to Pay $5.2 Million to Settle Allegations of False Labor ChargesRead the Press Release
The Justice Department announced today that Northrop Grumman Systems Corporation (NGSC) has agreed to pay $5.2 million to resolve its alleged False Claims Act liability for falsely billing labor under contract with the United States Postal Service (USPS). NGSC, which is headquartered in Falls Church, Virginia, provides information and technology services to commercial and government customers, including the USPS.
“Those who do business with the government must do so fairly and honestly,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will seek appropriate remedies against government contractors who knowingly overcharge the government for their services.”
The settlement concerns the Enterprise Technology Services Contract (ETS Contract) between NGSC and USPS. The ETS Contract required NGSC to provide qualified labor and management services to augment information technology services at USPS data centers around the country. The ETS Contract began in 2009 through a predecessor entity, Northrop Grumman Information Technology Inc., which merged with NGSC in 2010.
Under the ETS Contract, NGSC billed USPS for personnel performing information and technology services using hourly rates established for each of more than 100 labor billing categories. The United States alleges that NGSC knowingly billed certain personnel working under the ETS Contract for which they did not have the education and/or experience identified by these categories.
“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Steven Stuller, Acting Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within these contracts. In this instance, we worked hand-in-hand with the Department of Justice's Civil Division to help ensure a reasonable case-related resolution. We applaud the exceptional work by the investigative team and know it will have a positive impact on Postal Service operations.”
This matter was handled by the Civil Division’s Commercial Litigation Branch, the USPS Office of the Inspector General, and the USPS Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
New York Man Sentenced to More Than Four Years in Prison for Engaging in Extensive, Four-Year Cyberstalking Campaign Against Former GirlfriendRead the Press Release
A New York man was sentenced on Jan. 23 in U.S. District Court in the Southern District of New York to 50 months in prison for engaging in an extensive, four-year cyberstalking campaign that targeted a woman he dated for several months. The victim’s name is being withheld to protect her privacy.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York made the announcement.
David Waldman, 50, of New York, New York, was sentenced by U.S. District Court Judge Katherine Polk Failla of the Southern District of New York, who also ordered him to serve three years of supervised release following his prison sentence. Waldman, a non-practicing lawyer, was initially arrested in June 2018 and has been detained since his arrest. In August 2018, he pleaded guilty to one count of cyberstalking.
According to admissions made in connection with his plea and evidence presented at sentencing, Waldman engaged in an extensive cyberstalking campaign targeting a woman he briefly dated. The campaign began in April 2014, shortly after Waldman and the victim ended their relationship, and continued intermittently until the date of Waldman’s arrest. Over the course of almost four years, Waldman sent the victim hundreds of text messages, voicemail messages, and e-mail messages, and made voluminous posts on a variety of online platforms, in which he falsely claimed, among other assertions, that she abused drugs, had been diagnosed with bipolar and narcissistic personality disorder, and fabricated claims that she had been a victim of child sexual abuse. Waldman also sent email messages to the victim’s employers, accusing her of being a “habitual drug user” and claiming that he would sue her for defamation, theft, illegal trespass, violating HIPAA, and engaging in other “illegal behaviors.”
Throughout the four-year campaign, Waldman also repeatedly threatened to rape, kidnap, torture, injure, and kill the victim, kill members of her family, as well as threatened to kill himself at her apartment. As recently as 2018, Waldman continued to surveil the victim online and acquired tools that could be used to injure her. During the search of Waldman’s apartment, agents found, on his kitchen counter, a large hunting knife, which was covered in a sheath. He had a smaller knife in his bedroom. Waldman also kept a bb gun in his closet and a lock-picking kit in his carrying bag. According to Waldman’s internet browser history, in 2018, Waldman tracked the victim’s whereabouts, including her running route, and researched telescopes, “pellet pistols,” “air rifles,” and other similar devices.
Over the course of Waldman’s cyberstalking campaign, the victim obtained multiple state court orders of protection against him. Waldman repeatedly violated these orders.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Nicholas Chiuchiolo of the Southern District of New York prosecuted the case.
New York Man Sentenced for Illegal Possession of FirearmsRead the Press Release
HUNTINGTON, W.Va. – A New York man who illegally possessed firearms in Cross Lanes in 2017 was sentenced today to 41 months in federal prison, announced United States Attorney Mike Stuart. Andre Durrell Watson, 33, previously pled guilty to prohibited possession of a firearm by a felon. U.S. Attorney Stuart commended the investigative efforts of the Federal Bureau of Investigation and the United States Postal Inspection Service.
In May and June of 2017, Watson was living at 5035 St. Patrick Circle in Cross Lanes. Agents executed a search warrant at the residence on June 1, 2017, and recovered four firearms along with a large quantity of ammunition. Watson admitted during his plea hearing that he possessed the firearms, a .40 caliber pistol, a 9mm pistol, and two 5.56mm AR-15 style rifles. Watson also admitted that the .40 caliber pistol was previously stolen. Watson was convicted in 2005 in Philadelphia, Pennsylvania of the felony offense of burglary and was prohibited from possessing firearms by virtue of his conviction.
Assistant United States Attorney Joseph F. Adams handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
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.
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New Vineyard Man Sentenced to More than 13 Years in Prison on Gun and Drug ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jordan Richard, 25, of New Vineyard, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to 160 months years in prison and three years of supervised release for conspiring to distribute cocaine, heroin, fentanyl and oxycodone and discharging a firearm in relation to that conspiracy.
According to court records, between January 2016 and September 2017, the defendant and others conspired to distribute cocaine, heroin, fentanyl, and oxycodone in Franklin County. The defendant supplied drugs to others from his residence in Rangeley, Maine and later from his residence in New Sharon, Maine.
Only July 28, 2016, the defendant shot and killed one of two men who came to his Rangeley residence to rob him. The second man fled and was later captured by federal agents. Investigators responding to the robbery seized from the defendant’s residence a large quantity of cocaine, $20,883, drug scales, drug packaging materials, cellular telephones, drug ledgers and a Beretta 9mm semi-automatic handgun used during the shooting.
“This case demonstrates that drug dealing is a violent, criminal business,” said U.S. Attorney Halsey B. Frank. “One man is dead. Another is going to spend over a decade in prison. We intend to do everything we can to get guns out of the hands of drug dealers.”
The case was investigated by the U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol Tobacco Firearms and Explosives; the Maine State Police; and the Rangeley Police Department; with assistance provided by the Maine Office of the Attorney General. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.