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28 January 2019
Nederland Bomber Sentenced to 27 Years in Federal PrisonRead the Press Release
DENVER – David Michael Ansberry, 66 years old, of Berkley, California was sentenced to 324 months (27 years) in federal prison for attempting to detonate an improvised explosive device outside of the Nederland Police Station in Nederland, Colorado, U.S. Attorney Jason R. Dunn and FBI Denver Special Agent in Charge Dean Phillips announced. United States District Court Judge Christine Arguello entered the sentence against Ansberry on January 25, 2019. Ansberry was remanded into the custody of the United States Marshals.
Ansberry pled guilty without a plea agreement on July 18, 2017, to use and attempted use of a weapon of mass destruction. According to facts relied upon during sentencing, including a statement of facts filed with the Court, before dawn on October 11, 2016, Ansberry placed a radio-controlled explosive device that was concealed in a backpack at the foot of a police parking sign at the Nederland Police Station. Ansberry, who had rented a room at an Inn across the street, attempted to detonate the bomb by calling an attached telephone multiple times. A Nederland citizen testified that he was on a balcony directly above the bomb when Ansberry tried to detonate it. However, the bomb failed to detonate. The backpack was then recovered by a police officer who, without realizing its contents, brought the bomb into the station. When the officer realized that the backpack contained a bomb, he evacuated the station and plaza in which it was located.
The Boulder County Regional Bomb Squad, Nederland Police Department, Nederland Fire Department, Federal Bureau of Investigation, and medical and hazardous materials teams responded to the incident. Using two robots, law enforcement officers removed the bomb from the police station and tested its contents. Those tests revealed the high explosive, hexamethylene triperoxide diamine (HMTD), as well as other chemicals and hardened objects inside the backpack. Using the robots and an inert aluminum slug, bomb squad members detonated the HMTD in place due to its instability and explosiveness.
Ansberry was evacuated from the Inn by the Nederland Fire Department before the HMTD was detonated. He was arrested on October 16, 2016, at O’Hare Airport in Chicago, Illinois after the investigation quickly identified him as the bomber. FBI Agents found “STP” stickers in his luggage that matched an STP sticker found at the scene of the bombing. That sticker represented the logo of a counterculture group called, “Serenity, Tranquility, and Peace,” that resided near Nederland in the 1960’s and 1970’s and of which Ansberry had been a member. The STP sticker found at the scene of the bombing had hand-written on it, “RIP Deputy Dawg Murdered by Marshal 7/17/71.” This was a reference to an STP member named Guy Howard Gaughner who had been murdered in Nederland in 1971. A diary recovered from Ansberry contained entries referring to the death of Gaughner and saying, “Poor Deputy. REVENGE is called for.”
In sentencing Ansberry, Judge Arguello applied the terrorism enhancement in the United States Sentencing Guidelines, finding that Ansberry’s actions were calculated to influence or affect the conduct of government or to retaliate against government conduct.
“We’re pleased that the Court saw this case for what it is – an act of domestic terrorism. These are among the most serious cases that we prosecute,” said United States Attorney Jason Dunn. “Together with our law enforcement partners, we are committed to aggressively prosecuting these cases to protect the life and safety of all our citizens, particularly those who serve and protect the public.”
“The FBI is committed to proactively and thoroughly investigating national security matters and protecting our citizens from those who intend to cause harm in our communities,” said FBI Denver Special Agent in Charge Dean Phillips. “Thanks to the diligence and perseverance of our investigators and the U.S. Attorney’s Office, David Ansberry will now face the consequences of his actions. A special thanks to the Boulder County Sheriff’s Office and Nederland Police Department. Their assistance and support was instrumental in this investigation.”
This case was investigated by the Denver Division of the Federal Bureau of Investigation together with the Nederland Police Department, Boulder County Sheriff’s Office, Longmont Police Department, Boulder Country Regional Bomb Squad, Nederland Fire Department, and the FBI Terrorist Explosive Device Analytical Center Explosives Unit. Assistant United States Attorneys Gregory Holloway and David Tonini, and Trial Attorney Jennifer Levy of the Department of Justice Counterterrorism Section, are handling this prosecution.
CASE NUMBER: 16-cr-0341-CMA
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Navy Captain Indicted on Charges of Obstruction of Justice and Other OffensesRead the Press Release
On Jan. 8, a federal grand jury sitting in the Middle District of Florida returned an indictment charging a U.S. Navy Captain with obstruction of justice, concealment, falsifying records, and false statements during the investigation of the death of a civilian at Naval Station Guantanamo Bay (“GTMO”) in Guantanamo Bay, Cuba.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement.
Captain John Nettleton, 53, of Jacksonville, Florida, was charged with two counts of obstruction of justice related to his actions during the Navy’s investigation of the death of Christopher M. Tur, the Loss Prevention Safety Manager at GTMO’s Naval Exchange. Nettleton was also charged with one count of concealing information, two counts of falsifying records, and five counts of making false statements.
Tur, 42, was found drowned in the waters of Guantanamo Bay on Jan. 11, 2015. An autopsy revealed that Tur had suffered injuries prior to his drowning. At the time of Tur’s death, Nettleton was the Commanding Officer of GTMO.
According to the indictment, Tur confronted Nettleton at a party at the GTMO Officers’ Club on Jan. 9, 2015 with allegations that Nettleton and Tur’s spouse had engaged in an extramarital affair. Later that same evening, Tur went to Nettleton’s residence and a physical altercation ensued that left Tur injured. Tur was reported missing on Jan. 10, 2015 by other residents of GTMO. Despite knowing that Tur had been at his residence and injured during the altercation, Nettleton falsely informed his superior officers and other Navy personnel that Tur had last been seen at the Officer’s Club the night before, the indictment alleges. Nettleton also allegedly did not report that Tur had accused him of the extramarital affair, that Nettleton and Tur had engaged in a physical altercation at Nettleton’s residence, or that Tur had been injured. The indictment further alleges that Nettleton persisted in concealment and false statements as the search for Tur and then the investigation into the circumstances of his death continued.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Naval Criminal Investigative Service and is being prosecuted by Deputy Chief Todd Gee and Trial Attorney Peter Nothstein of the Criminal Division’s Public Integrity Section. Former Public Integrity Section Trial Attorney Mark Cipolletti also assisted in the investigation.
Monroe County Man Sentenced to More Than 12 Years in Prison for Heroin and Sex TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jamiell Sims, age 30, of Monroe County, Pennsylvania, was sentenced on January 17, 2019, to 151 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion, for participating in a conspiracy that forced or coerced women to engage in prostitution in northeastern Pennsylvania, and for distributing heroin on four separate occasions in Monroe County.
According to United States Attorney David J. Freed, Sims, who used the street name “Millz,” previously pleaded guilty to conspiring with others to commit sex trafficking by force, fraud, and coercion between 2011 and June 2014, and to distributing heroin on four occasions between September 19, 2016 and October 6, 2016.
Sims’s conviction and sentence resulted from an investigation into the activities of a street gang known as the Black P-Stones. The Black P-Stones would “beat-in” male gang members to the gang and female members were “sexed-in” to the gang. The Black P-Stones obtained heroin in New York and distributed the heroin in Stroudsburg and locations in the state of Maine. Couriers were used to transport heroin from New York to Maine.
Females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various area hotels/motels to work as prostitutes. Male gang members used threats, force, drugs, and intimidation to coerce females to engage in prostitution.
Judge Mannion also ordered the defendant to serve five years of supervised release following his prison sentence. Sims must also comply with sex offender registration and notification requirements.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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 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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Monroe County Man Sentenced to Five Years in Prison for Role in Heroin ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Young, age 39, of Stroudsburg, Pennsylvania, was sentenced on January 23, 2019 by Senior U.S. District Court Judge James M. Munley to five years’ imprisonment and three years on supervised release for his role in a Monroe County-based conspiracy that was responsible for distributing heroin and cocaine during a three-year time period.
According to United States Attorney David J. Freed, Young previously pleaded guilty to committing the offense between 2012 and 2015. Young admitted to conspiring with others to obtain the drugs from a supplier in Patterson, New Jersey, then transport the drugs to Monroe County where they were sold to sub-distributors and customers. Young admitted to making at least five trips to Patterson to obtain multiple “bricks” of heroin. Each “brick” of heroin has 50 bags. The amount of heroin obtained by Young was equivalent to approximately 3,000-4,000 retail bags.
In imposing the sentence, Judge Munley noted the dangerous impact of heroin trafficking on the people of our communities.
Young was one of seven people charged by a federal grand jury in a superseding indictment in March 2015. The others charged—Eddie Pace, Shawnette Isaac, Daryl Trent, William Young, Catherine Abbey, Myron Owens, and Anton Woodson—all previously entered guilty pleas in the case. Owens was sentenced to 140 months in prison. Trent received a 90-month prison sentence. Woodson was sentenced to 63 months’ imprisonment. Isaac received a 30-month prison sentence. Abbey was sentenced to one year in prison. Pace is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa 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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also 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.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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Monroe County Man Pleads Guilty to Making Multiple Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Douglas DeHaven, age 35, of East Stroudsburg, Monroe County, pleaded guilty on January 11, 2019, before Senior United States District Court Judge James M. Munley to making false statements in connection with the purchases of multiple firearms.
According to United States Attorney David J. Freed, DeHaven admitted to providing false information to federally licensed firearms dealers regarding the purchases of fourteen firearms between January 5, 2018 and February 11, 2018. Two of the firearms were purchased from Bella Mia Jewels in Tannersville, Monroe County; nine of the firearms were purchased from Dunkelberger’s Sports Outfitters, in Brodheadsville, Monroe County; and three of the firearms were purchased from Dunkelberger’s Sports Outfitters, in Stroudsburg, Monroe County.
A sentencing date for DeHaven is scheduled for April 18, 2019.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Missouri Woman Charged with Assaulting Infant Child While Living OverseasRead the Press Release
On Dec. 11, a federal grand jury in Kansas City, Missouri returned a six-count indictment against a woman for assaulting her infant child while living in military housing in Germany and for obstructing justice and making false statements during the course of the subsequent federal investigation.
Baillie Rachelle Dickenson, a.k.a. Baillie Hannah, 28, was residing in Kaiserslautern, Germany when the events set forth in the indictment occurred. She now lives in St. Joseph, Missouri. She is charged with two counts of assault resulting in serious bodily injury, two counts of obstruction of justice, and two counts of making a false statement to a federal officer. Dickenson was arrested on Jan. 2, and arraigned before Magistrate Judge Lajuana Counts on Jan. 9. Trial in this matter has been scheduled for the Sept. 23, 2019 jury trial docket.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Timothy A. Garrison of the Western District of Missouri, Major General David P. Glaser of the U.S. Army Criminal Investigation Command, and Darrin E. Jones, FBI Special Agent in Charge, Kansas City Division, made the announcement.
The indictment alleges that on or about March 12, 2016, Dickenson was living overseas in Kaiserslautern with her then-husband, Derreck Dickenson, who was an active-duty member of the U.S. Army. The couple resided in military housing with their two minor children, a daughter who was aged 16 months old and a son who was two months old at that time. While he was in her custody, Dickenson allegedly assaulted her son, causing serious injuries, including multiple fractures, eye injuries, and a serious brain injury. During the ensuing investigation of the matter, she obstructed justice by concealing a cell phone and influencing her husband’s statement to investigators, and made a series of false statements to investigators when they questioned her.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the U.S. Army Criminal Investigation Command and the FBI. The prosecution is being handled by Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Teresa Moore of the Western District of Missouri.
Minnesota Tax Return Preparer Sentenced to More Than 10 Years in Prison for Leading a Multimillion Dollar IRS Fraud Scheme and Failing to Appear at SentencingRead the Press Release
A Minneapolis based tax return preparer was sentenced to serve 121 months in prison today for managing and directing a fraudulent return-preparation business, Primetime Tax Services Inc. (Primetime), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman.
Kenneth Mwase, who also fraudulently used the name Chatonda Khofi, 54, of St. Paul, Minnesota, pleaded guilty to one count of conspiracy to defraud the United States, one count of aggravated identity theft, and one count of failure to appear at sentencing.
In addition to the term of imprisonment, Chief U.S. District Judge John R. Tunheim also ordered Mwase to serve 3 years of supervised release, following his release from prison.
In April 2014, the defendant was charged in a seventy-count second superseding indictment, along with codefendants Ishmael Kosh, 39, of Philadelphia, Pennsylvania, Amadou Sangaray, 36, of New York, New York, and Francis Saygbay, 43, of Minneapolis, and David Mwangi, 47, of Arlington, Texas, for their involvement with Primetime, a tax preparation business with three storefronts in the Minneapolis area. Together with his co-defendants, Mwase prepared and filed with the Internal Revenue Service (IRS) over 2,000 fraudulent individual income tax returns on behalf of customers of Primetime for the years 2006, 2007 and 2008. Mwase and his co-defendants also prepared approximately 1,700 fraudulent state income tax returns filed with the state of Minnesota for those years.
In November 2014, Mwase plead guilty to one count of conspiracy to defraud the Government and one count of aggravated identity theft. As part of his plea agreement, Mwase admitted overseeing a conspiracy that caused a tax loss of over $2.5 million dollars. Mwase and co-defendants Kosh, Sangaray, and Saygbay established Primetime’s flagship location in Brooklyn Center, Minnesota, in late 2006. They then prepared tax returns in 2007, 2008, and 2009, for Primetime’s customers, which reported false dependents, fake business income and losses, inflated deductions, inflated credits, and false filing statuses, in order to get their customers inflated refunds. The defendants maintained control over their customers’ IRS refunds by instructing that those refunds be sent directly to Primetime. They then caused their preparation fee to be directly withdrawn from the refund. When a customer came to pick up their refund check or debit card, the defendants sometimes escorted that customer to a check cashing location or ATM and demanded additional cash.
Mwase was scheduled to be sentenced on August 18, 2016, following the two-week trial of co-defendants Kosh and Sangaray, which occurred in September 2015, and the guilty plea of co-defendant Saygbay, in November 2015. However, on August 7, 2016, he fled to South Africa, using a fake identity and a fraudulently-obtained Zimbabwean passport. In April 2017, Mwase was charged with one count of failure to appear for sentencing.
With the assistance of the United States Department of State, INTERPOL, and Zimbabwean and South African authorities, Mwase was arrested in South Africa in May 2018. Over the years, Mwase used multiple fake identities, including passing himself off as Chatonda Khofi, an individual born in Washington, D.C. to diplomats from Malawi. In October 2018, following an extradition request from the United States, Mwase was surrendered to the custody of the United States Marshals Service and returned to Minnesota to face sentencing. On November 16, 2018, Mwase pled guilty to the charge of failing to appear for sentencing. Mwase’s co-conspirators were previously sentenced to prison.
The case was investigated by special agents of IRS-Criminal Investigation and deputy marshals of the United States Marshals Service. It was prosecuted by Trial Attorneys Thomas W. Flynn and Arthur J. Ewenczyk, as well as former Trial Attorneys Dennis R. Kihm and Ryan R. Raybould, of the Tax Division who prosecuted the case. The Tax Division would like to thank the Minnesota Department of Revenue for their significant work in identifying the tax fraud and identity theft occurring at Primetime.
Miami Woman Sentenced to Prison for Role in $4.66 Million Medicare Fraud SchemeRead the Press Release
A woman from Miami, Florida was sentenced to 51 months in prison on Jan. 17 for her role in a $4.66 million health care fraud scheme involving several Miami-area home health agencies, including Sunshine Home Health Services Inc., Empire Home Health Agency Inc., Mildred & Marce Home Health Care Services Inc., and Nursing Care PRN Inc., which purported to provide home health services to Medicare patients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Norma Zayas, 29, of Miami, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida. Judge Martinez also ordered Zayas to pay $4,658,241.00 in restitution and to forfeit $186,650.50. Zayas pleaded guilty on Oct. 22, 2018 to one count of conspiracy to commit health care fraud.
As part of her guilty plea, Zayas admitted that from approximately January 2010 through approximately January 2014, she operated Sunshine, Empire, and Mildred & Marce Home Health and paid kickbacks to patient recruiters in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services. Zayas further admitted that she became the true owner of Nursing Care PRN, which she placed in the name of a nominee owner. She also paid kickbacks to patient recruiters who referred Medicare beneficiaries to Nursing Care PRN.
The defendant admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of nearly $4.66 million. Zayas was charged along with Margarita Palomino, 54, of Homestead, Florida in an indictment returned on June 7, 2018. Palomino was sentenced in December 2018 to a term of 78 months in prison and ordered to pay over $4.65 million in restitution, as well as to forfeit $186,650.50.
The FBI and HHS-OIG investigated the case, which 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. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Leslie Wright prosecuted the case; the case is now being handled by Trial Attorney Emily Gurskis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 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.
Miami Woman Sentenced to More Than Three Years in Prison for Role in $1.36 Million Medicare Fraud SchemeRead the Press Release
A Miami, Florida woman was sentenced to 46 months in prison on Jan. 3 for her role in a $1.36 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tania Gudin, 55, was sentenced by U.S. District Judge K. Michael Moore of the Southern District of Florida. Judge Moore also ordered Gudin to pay $1,366,317.59 in restitution and to forfeit $512,806.05. Gudin pleaded guilty on Oct. 23, 2018 to one count of conspiracy to commit health care fraud and wire fraud.
Gudin pleaded guilty to accepting kickbacks for recruiting and referring Medicare beneficiaries to five Miami-area businesses that claimed to provide home health care services: Maya Home Health Care Corp., Floridian Home Health Care Corp., Healthylife Home Care Inc., ACM Home Health Corp., and Humanity Home Health Inc. She also owned her own medical clinic, the New City Medical Center Inc., which she admittedly utilized to further the scheme, including by obtaining prescriptions for her recruited patients from medical professionals at New City.
As part of her guilty plea, Gudin admitted that from approximately July 2011 through approximately November 2014, she accepted kickbacks in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services, to serve as patients of the five agencies. Gudin caused Maya, Floridian, Healthylife, ACM, and Humanity to submit false claims to Medicare for home health services for the beneficiaries she recruited, which were medically unnecessary, not eligible for Medicare reimbursement and/or – either with Gudin’s knowledge or direction – never actually provided.
Gudin admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of at least $1.36 million.
The FBI and HHS-OIG investigated the case, which 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. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Leslie Wright of the District of Boston prosecuted the case; the case is now being handled by Trial Attorney Emily Gurskis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 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.
Miami Woman Sentenced to Prison for Role in $750,000 Medicare Fraud SchemeRead the Press Release
A woman from Miami, Florida was sentenced to 30 months in prison on Jan. 15 for her role in a $750,000 health care fraud scheme involving six Miami-area home health agencies, Sunshine Home Health Services Inc., Empire Home Health Agency Inc., A&C Home Health Care Inc., Healthylife Home Car, Humanity Home Health and ACM Home Health Corp., which purported to provide home health services to Medicare patients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Milena Gonzalez, 54, of Miami, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida. Judge Martinez also ordered Gonzalez to pay $478,560.54 in restitution and to forfeit $346,595.00. Gonzalez pleaded guilty on Oct. 24, 2018 to one count of conspiracy to defraud the United States and to pay and receive health care kickbacks.
As part of her guilty plea, Gonzalez admitted that from approximately November 2010 through approximately September 2015, she accepted kickbacks in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services, to serve as patients of the six agencies. Gonzalez further admitted that in addition to receiving kickbacks, she paid kickbacks to the owners and operators of a medical clinic called City Rehab Corp., in return for prescriptions for home health services for her recruited Medicare beneficiaries.
The defendant admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of at least approximately $750,000.
Gonzalez was charged along with Nelson Anzardo Calzadilla, 55, of Miami, in an indictment returned on June 15, 2018. Nelson Anzardo Calzadilla pleaded guilty to conspiracy to commit health care fraud and wire fraud and is scheduled for sentencing in February 2019.
The FBI and HHS-OIG investigated the case, which 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. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Leslie Wright prosecuted the case; the case is now being handled by Trial Attorney Emily Gurskis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in 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.
Mexican National Pleads Guilty to Marijuana Cultivation in Wilderness Area in Kern CountyRead the Press Release
FRESNO, Calif. — Felipe Angeles Valdez-Colima (Valdez), 35, of Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.
According to court documents, Valdez and his co-defendants, Mauricio Vaca-Bucio (Vaca), 31, and Rodolfo Torres-Galvan, 29, (Torres), both of Mexico, were apprehended in the Kiavah Wilderness area of the Sequoia National Forest, a federally designated wilderness area, after a two-month investigation. Law enforcement officers saw Valdez and Torres emerge from the forest at a drop point that had long been used by marijuana cultivators to access grow sites in that remote area. The men entered a vehicle driven by Vaca and were later stopped in the Kern County town of Weldon. Officers found freshly harvested marijuana in their vehicle and located over 1,800 marijuana plants at the grow sites on the interconnected trails from the drop point. The officers also found harmful and illegal pesticides, including carbofuran and zinc phosphide, in the vehicle and at the grow sites. In pleading guilty, Valdez agreed to pay over $7,000 in restitution to the U.S. Forest Service for the damage he caused to the National Forest.
The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.
This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Valdez is scheduled for sentencing on April 22, 2019. He faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges against Vaca and Torres are still pending. As to them, the charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican Alien Smuggler Sentenced to 70 Months in PrisonRead the Press Release
Tampa, Florida – On January 11, 2019, U.S. District Judge Elizabeth M. Kovachevich sentenced Eutiquio Mendoza-Nandho (46, Mexico) to 5 years and 10 months in federal prison for conspiring to bring and bringing illegal aliens into the United States. Mendoza-Nandho had pleaded guilty on August 29, 2018.
According to court documents, Mendoza-Nandho was the organizer and leader of a Mexican smuggling organization. He worked with his son, Leonel Mendoza-Yerbafria, and family member, Juan Nopal-Nopal, to smuggle at least 78 illegal aliens—many of whom had been previously deported—from Mexico into Texas. They then transferred the aliens to destinations across the United States, including into the Middle District of Florida. The court found that the conditions of the trip, which involved multiple days of walking across the desert in dangerous conditions and without sufficient food or water, put the aliens at substantial risk of injury or death.
According to James C. Spero, the Special Agent in Charge of Homeland Security Investigations (HSI), “HSI remains steadfast in our commitment to aggressively pursue members of transnational criminal organizations that exploit and endanger people they smuggle into this country. These smugglers were motivated by greed in complete disregard for the safety of those they were smuggling. HSI will continue to work with our law enforcement partners, such as Border Patrol, to maintain the integrity of our border and the nation’s immigration laws.”
Tampa Border Patrol Agent in Charge Glenn Lendel stated, “This successful prosecution highlights Border Patrol’s dedication to combatting transnational criminal networks that smuggle aliens into the United States. In close collaboration with our local, state, and federal partners, Border Patrol leverages all available resources to target and dismantle these organizations that threaten border communities.”
This case was investigated by HSI and the United States Border Patrol. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Maryland man indicted on child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Paul Glen Hamilton, Jr., of Bowie, Maryland and Melbourne, Florida, was indicted by a federal grand jury sitting in Martinsburg on January 23, 2019 on a child pornography charge, United States Attorney Bill Powell announced.
Hamilton, age 23, was indicted on one count of “Possession of Child Pornography.” Hamilton is accused of having child pornography that was transported by computer in September 2018 in Berkeley County.
Hamilton faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Berkeley County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Luzerne County Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Aaron Bangaroo, age 37, of Kingston, Luzerne County, pleaded guilty on January 24, 2018, before U.S. District Court Judge Robert D. Mariani to possession with intent to distribute heroin and possession of firearms in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Bangaroo admitted to possessing heroin for further distribution in Luzerne County in July 2015, and to possessing firearms in furtherance of his drug trafficking activities. Investigators made a number of purchases of packets containing heroin from Bangaroo, and then obtained a search warrant for Banagroo’s residence in Kingston, where additional amounts of heroin and two loaded firearms were found.
Judge Mariani ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms, and the Kingston Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also 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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law the firearms charge carries a mandatory minimum sentence of 5 years’ imprisonment, which must be served consecutively to any other sentence. The heroin trafficking charge carries a maximum sentence of up to 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lorain man sentenced to life in prison for selling fentanyl that killed a 23-year-old Lorain manRead the Press Release
A Lorain man was sentenced to life in prison for selling fentanyl that killed a 23-year-old Lorain man.
Russell Davis, 50, was sentenced to life in prison by U.S. District Judge Christopher A. Boyko. The jury convicted Davis last year on one count of distribution of fentanyl that resulted in death.
Davis sold fentanyl to Jacob Castro-White that resulted in Castro-White fatally overdosing on March 7, 2016, according to trial testimony and court records.
“Seeking long prison sentences for those who profit from selling the drugs killing our friends and neighbors is a crucial component to overcoming this epidemic that has cause so much pain and suffering,” U.S. Attorney Justin Herdman said. “The Lorain Police Department, FBI, the Lorain County Prosecutor's Office are all to be commended for their diligence in this case.”
“It is almost a daily occurrence to hear of a death due to heroin or fentanyl,” said FBI Acting Special Agent in Charge Robert Hughes. “Law enforcement will continue to work collaboratively to hold accountable those that bring this poison and destruction to our communities.”
This case was prosecuted by Assistant U.S. Attorneys Robert Corts and Vasile Katsaros following an investigation by the FBI and Lorain Police Department, with assistance from the Lorain County Prosecutor's Office.
Jury convicts Billings man in armed casino robberyRead the Press Release
BILLINGS—A jury convicted Billings resident Antonio Francisco Gutierrez on January 16 in the 2018 armed robbery of Dotty’s Casino following a three-day trial, U.S. Attorney Kurt Alme said today.
The jury found Gutierrez, 36, guilty of three counts, including robbery affecting commerce, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm. Gutierrez is detained.
U.S. District Judge Susan Watters presided at the trial. Watters set sentencing for May 16.
Gutierrez faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the robbery count and a consecutive mandatory seven years to life, a $250,000 fine and five years of supervised release on the brandishing count.
Prosecutors alleged that on Feb. 5, 2018, Gutierrez asked co-defendant, Christopher Esrey, to drive him to Dotty’s Casino, on Montana Sapphire Drive, near Shiloh Road, to meet a friend to “get some money.” The pair arrived at the casino at about 11:43 p.m. Esrey waited in the car while Gutierrez entered the casino wearing a hood, hat and facemask. He tried to open the inner door but it was locked. Gutierrez pushed a buzzer to summon a casino attendant, who motioned for him to remove his clothing before she unlocked the inner door.
Gutierrez mimed as if he was going to remove the items and the attendant opened the door and began walking back to her station, prosecutors alleged. When the attendant unlocked the door, Gutierrez stopped removing his face coverings, took a pistol from his coat pocket, cocked it and pointed it at the attendant’s back. The attendant froze, raised her hands and complied with Gutierrez’s instruction to empty the till.
Gutierrez got back into the idling vehicle, and the attendant reported the robbery to the Billings Police Department. Gutierrez and Esrey eventually went to gamble at another casino, where they were detained by officers.
Esrey pleaded guilty to accessory after the fact and is to be sentenced on Feb. 7.
Assistant U.S. Attorneys Colin Rubich and Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Jacksonville Sex Offender Ordered to Pay $12,000 in Restitution to Victims of Child Sexual ExploitationRead the Press Release
Jacksonville, Florida – On January 8, 2019, United States District Judge Marcia Morales Howard ordered Craig Harry Lipinski (50, Jacksonville) to pay a total of $12,000 in restitution to two victims depicted in images and videos found in Lipinski’s collection of child pornography.
On January 30, 2018, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and other law enforcement officers executed a search warrant at Lipinski’s home and arrested him. A search of Lipinski’s computer media revealed hundreds of videos and thousands of images that depicted children being sexually abused. Lipinski had downloaded these materials using the internet.
On June 5, 2018, Lipinski pleaded guilty to receiving child pornography over the internet. On November 19, 2018, he was sentenced to eight years and one month in federal prison followed by seven years of supervised release.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Man Sentenced to Life Imprisonment for His Role in the Overdose Death of A 23-Year Old WomanRead the Press Release
Jacksonville, Florida – On January 24, 2019, U.S. District Judge Henry Lee Adams, Jr. sentenced Ronald Johnson (32, Jacksonville) to life in federal prison for his actions leading to the overdose death of a 23-year old woman. On October 4, 2018, a federal jury found Johnson guilty of distributing a substance containing fentanyl and methoxyacetyl fentanyl that resulted in death, carrying a firearm in furtherance of his drug trafficking crime, and possessing a firearm as a convicted felon.
According to court documents and evidence submitted during the trial, on September 14, 2017, around midnight, the victim met with Johnson and purchased what she believed to be heroin. She contacted Johnson again around 5:00 p.m. the next day and met him at his apartment where she purchased what she believed to be heroin. Johnson sold her fentanyl. The victim went home early in the morning on September 16, 2017, and in the early afternoon was found dead in the bathroom, with a needle next to her. According to the medical examiner, the victim overdosed and died due to the fentanyl and methoxyacetyl fentanyl in her body.
“This verdict and sentence is an example of justice in the face of an epidemic that plagues our community,” said State Attorney Melissa Nelson. “We will continue to work with the U.S. Attorney’s Office and other law enforcement partners to aggressively prosecute these opioid-fueled overdose deaths.”
This case was investigated by the Jacksonville Sheriff’s Office and the State Attorney’s Office for the Fourth Judicial Circuit. It was prosecuted by Assistant United States Attorney Julie Hackenberry.
Indian National Pleads Guilty to Leadership Role in Dangerous Human Smuggling ConspiracyRead the Press Release
An Indian national pleaded guilty on Jan. 18 for his role in a complex, transnational conspiracy to smuggle aliens from India to the Unites States for profit, which claimed at least one life and endangered many others.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Puerto Rico made the announcement.
Yadvinder Singh Bhamba, 60, an Indian national, pleaded guilty to one count of conspiracy and 15 counts of smuggling aliens to the United States for profit before U.S. Magistrate Judge Sivia Carreño-Coll of the District of Puerto Rico. Judge Carreño-Coll has recommended that District Judge Carmen C. Cerezo accept the guilty plea. A sentencing hearing before Judge Cerezo is scheduled for April 23, 2019. Bhamba was charged in an indictment returned by a federal grand jury in the District of Puerto Rico on March 15, 2017.
According to admissions in Bhamba’s plea agreement, since 2013, Bhamba had a leadership role in a human smuggling conspiracy operating out of the Dominican Republic, Haiti, Puerto Rico, India and elsewhere. As part of the conspiracy, Bhamba personally assisted around 400 aliens to unlawfully enter the United States between 2013 and 2015. He also oversaw and directed co-conspirators operating out of the Caribbean.
Bhamba and other members of the conspiracy made flight arrangements for aliens to travel from India through other countries – including Thailand, the United Arab Emirates, Argentina, Iran, Panama, Venezuela, Belize, and Haiti – to the Dominican Republic. The Dominican Republic was used as a staging area, where aliens were housed before being transported to the United States. The organization brought groups of aliens from the Dominican Republic to Puerto Rico or Florida by boat. Once the aliens reached Puerto Rico or Florida, they were picked up by co-conspirators and taken to stash houses until flights could be arranged to California, New York, or elsewhere in the United States. Bhamba and others arranged for fraudulent identifications for some aliens to use in the United States.
The boat trips organized by Bhamba and his co-conspirators were perilous. Boat captains used old, damaged, cracked, unlicensed, overcrowded, and unsafe boats to make the journey. In at least one instance, an alien died in a boat on his way to the United States.
At times, the smugglers would take passports from the aliens during their journeys, physically assault them, and threaten their families to collect money. Aliens paid between $30,000 and $85,000 to be smuggled from India to the United States. From at least 2013 to 2016, human smuggling was Bhamba’s primary source of income.
Members of the conspiracy, including Bhamba, would use false names or nicknames to communicate with the aliens and with each other. Bhamba, whom fellow smugglers and aliens knew as “Ruby,” also instructed others to use false names or nicknames to avoid detection. Bhamba used fraudulent Indian, Dominican, and Jamaican identifications for travel and financial transactions related to the conspiracy.
As part of the conspiracy, Bhamba directed associates to unlawfully smuggle 15 aliens to Puerto Rico in July 2016. Bhamba personally met the 15 aliens in various countries along their journeys, including in Dubai, Thailand, Iran, and the Dominican Republic, and he communicated with them throughout their journeys, which began approximately in January 2016. In some instances, Bhamba created and provided false employment documents on behalf of the aliens to authorities to obtain foreign visas. Bhamba also instructed aliens traveling through foreign airports how to find, and in some instances, pay cash to, corrupt immigration officials, passport control officers, or airport employees in order to bypass regular immigration and passport control procedures.
After the aliens arrived in the Dominican Republic, Bhamba used an alias to arrange and pay for a hotel for them. On July 25, 2016, Bhamba alerted co-conspirators in Puerto Rico to be ready to receive 15 aliens. On July 27, 2016, 15 Indian nationals were transported from the Dominican Republic to Puerto Rico in a 22-foot wooden vessel. The vessel was not marked or equipped with basic safety features, such as lights or navigational equipment. The outside of the vessel was painted black, to make it difficult to see in the water at night. Per safety regulations, the size of the boat should have limited the number of occupants to eight people, but it carried 15 aliens, plus members of the conspiracy who captained the vessel.
The aliens were supposed to be met in Puerto Rico by another smuggler, but they were apprehended instead. Bhamba contacted other members of the conspiracy to find out what happened to the aliens and paid a co-conspirator to locate the aliens and confirm they did not drown, so that the co-conspirators would not lose money. Bhamba was arrested in the Dominican Republic in August 2017, and thereafter transferred to Puerto Rico.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
HSI Puerto Rico investigated this case. The government of the Dominican Republic and the Transnational Crime Investigative Unit of the Dominican Republic National Police provided significant assistance and support during the investigation and have brought charges against other members of the smuggling network.
Trial Attorneys Ann Marie E. Ursini and Christian A. Levesque of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case, with the assistance of the Department of Justice’s Office of International Affairs and the U.S. Attorney’s Office for the District of Puerto Rico.
Huntington Man Sentenced for Federal Meth and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who previously pled guilty to drug and gun charges was sentenced today to 131 months in federal prison, announced United States Attorney Mike Stuart. Jonathan Forest Johnson, 31, entered guilty pleas to distribution of methamphetamine and possession of firearms in furtherance of a drug trafficking crime in October 2018 in federal court in Huntington. Stuart commended the investigative efforts of the Huntington FBI Drug Task Force and the Cabell County Sheriff’s Department.
“Almost 11 years in prison,” said United States Attorney Mike Stuart. “Yet another gun-toting drug dealer taken off the streets of Huntington.”
On January 29, 2018, a confidential informant contacted Johnson to arrange the purchase of methamphetamine. After negotiating the transaction, Johnson directed the informant to meet him in the parking lot of a department store located in the 3000 block of U.S. Route 60 in Huntington. The informant met with Johnson at that location and Johnson sold the informant 15 grams of crystal methamphetamine in exchange for $330.
On February 2, 2018, investigators executed a search warrant at Johnson’s residence located at 3405 5th Avenue in Huntington. During the search, investigators seized a number of items including 17 grams of heroin, 4.5 grams of meth, two 9mm pistols, a .40 caliber pistol, a .22 caliber rifle, a 12 gauge shotgun, and a 16 gauge shotgun. Johnson was arrested during the search and Johnson admitted that he intended to sell the heroin and meth found in his residence. Johnson further admitted that he possessed the firearms to serve as protection based on his involvement in distributing heroin and meth.
Johnson also admitted to selling an additional 15 grams of meth to an informant on January 31, 2018, and that he was prohibited from possessing the firearms seized based on multiple prior felony convictions in the Cabell County Circuit Court for First Degree Robbery and Malicious Wounding. Johnson also admitted that he had been selling heroin and meth for the two-month period prior to the February 2 search of his residence.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), 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 United States Attorney Joseph F. Adams handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
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Houston Medical Clinic Owner Convicted in $11 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of a purported medical clinic, QC Medical Clinic, was convicted on Jan. 24, by a federal jury of participating in an $11 million Medicare fraud scheme in which fraudulent medical documents were sold to home-health agencies in and around Houston.
The conviction was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office.
Brenda Rodriguez, 57, of Harris County, Texas, was convicted of one count of conspiracy to commit healthcare fraud and three counts of healthcare fraud following a jury trial before U.S. District Judge Lynn Hughes of the Southern District of Texas. Rodriguez is expected to be sentenced on April 29.
According to the evidence presented at trial, from October 2012 through August 2015, Rodriguez and others conspired to defraud Medicare by selling Plans of Care, and other medical documents signed by a doctor, through QC Medical Clinic (“QC Medical”) to various home-health services, resulting in approximately $11 million in false and fraudulent claims for home-health services billed to Medicare.
The evidence at trial showed that home-health agencies billed Medicare for home health services that were not medically necessary and in many instances, not provided.
To date, three others have pleaded guilty or were convicted based on their roles in a larger fraudulent scheme that included QC Medical. John Ramirez, M.D., was convicted of conspiracy to commit healthcare fraud and healthcare fraud for his role at a related purported clinic and is awaiting sentencing before U.S. District Judge David Hittner of the Southern District of Texas. Nenna Iro and Magdalene Akharamen, owners of Houston area home-health agencies, each pleaded guilty to conspiracy to commit healthcare fraud in purchasing Plans of Care and other signed medical documents from QC Medical.
The case was investigated by the FBI, 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 Texas. The case is being prosecuted by Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Tina Ansari and Thomas Heyward Carter.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. 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.
Hartford Man Sentenced to 7 Years in Prison for Illegal Gun Possession, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RASCELL LEGGETT, 32, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 84 months of imprisonment, followed by five years of supervised release, for illegally possessing a firearm, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on June 22, 2011, Leggett was sentenced in New Haven federal court to 60 months of imprisonment, followed by three years of supervised release, for distributing marijuana and crack cocaine in Hartford. He was released from federal prison in February 2015. Leggett subsequently violated the conditions of his supervised release and, in June 2016, was sentenced to an additional four months of imprisonment, followed by two years and eight months of supervised release. He was released from federal prison in November 2016.
In August 2017, Leggett was arrested by Hartford Police and charged with illegal operation of a motor vehicle while under the influence of alcohol and illegal operation of a motor vehicle under suspension. Leggett subsequently failed to appear for a federal supervised release violation hearing on November 6, 2017.
On December 18, 2017, investigators arrested Leggett after they stopped a vehicle he was operating on Albany Avenue in Hartford. A search of the car revealed 148 bags of heroin, a Ruger 9mm pistol loaded with 14 rounds of ammunition, and $655 in cash. A search of Leggett’s person revealed approximately four grams of crack cocaine.
At the time of his arrest, Leggett also had an active Hartford Police arrest warrant for attempted first degree assault with a firearm, criminal possession of a weapon, and risk if injury to a minor. The charges stemmed from an incident on December 13, 2017, when Leggett fired a gun into a car occupied by a woman and her minor child.
Leggett has been detained since his arrest. On October 17, 2018, he pleaded guilty in federal court to one count of possession of firearm in furtherance of a drug trafficking crime.
Judge Hall sentenced Leggett to 60 months of imprisonment for possessing a firearm, and a consecutive 24 months of imprisonment for violating his supervised release.
Leggett has also pleaded guilty in state court to offenses stemming from the shooting on December 13, 2017, and awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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 neighborhoods safer for everyone.
Harrison County man sentenced for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jesse Alan Clevenger, of Clarksburg, West Virginia, was sentenced today to three years probation for possessing a firearm after two domestic violence convictions, United States Attorney Bill Powell announced.
Clevenger, age 34, pled guilty to one count of “Unlawful Possession of a Firearm” in June 2017. Clevenger admitted to possessing a .30 caliber rifle illegally. Clevenger had previously been convicted on two separate charges of domestic battery in the Harrison County Magistrate Court. The crime occurred on June 28, 2016.
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 Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.Grand Island Woman Pleads Guilty to Credit Card FraudRead the Press Release
Orlando, Florida – On January 4, 2019, United States Attorney Maria Chapa Lopez announced that Lendardra Griffin (29, Grand Island, FL) pleaded guilty to two counts of unauthorized access device fraud, for her role in a credit card fraud scheme. Griffin faces a maximum penalty of 10 years in federal prison for each count.
According to the plea agreement, Griffin participated in a scheme to obtain credit cards by using stolen personal identifying information (“PII”) and then using the fraudulently obtained credit cards to obtain cash, gift cards, and retail items. Griffin, and the individuals that she aided and abetted, obtained PII from victims, obtained credit cards in those victims’ names or linked to the victims’ accounts, and then used those credit cards to obtain money and items of value at various banks and retail stores. Griffin’s conduct, and the conduct she aided and abetted, is estimated to have resulted in a total loss of at least $478,000. The investigation and prosecution of others involved in this credit card fraud scheme continues.
This case was investigated by the United States Postal Inspection Service, with assistance from the Florida Department of Law Enforcement and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Gardiner Man Pleads Guilty to Firearm ChargeRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Robert Gay, 35, of Gardiner, Maine pled guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on June 2, 2018, the defendant was hired to perform plumbing work at a residence in Scarborough, Maine. While working in the basement, the defendant came across and later stole a rifle that belonged to the homeowner. A search of the defendant’s cell phone revealed text conversations reflecting that the defendant stole the rifle and sold it to another individual. The purchaser was identified and the rifle was recovered and returned to the homeowner. The defendant was prohibited from possessing the rifle because he had two prior felony convictions for theft.
The defendant faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Scarborough and Gardiner Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Audi Managers Charged in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
Four Audi managers, including a former member of Audi AG’s management board, were charged in an indictment filed on Jan. 17 for their roles in the nearly decade-long conspiracy to defraud U.S. regulators and U.S. customers by implementing software specifically designed to cheat U.S. emissions tests in tens of thousands of Audi “clean diesel” vehicles, the Justice Department announced today.
Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean Williams of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Assistant Administrator of the Environmental Protection Agency (EPA) Office of Enforcement and Compliance Assurance Susan Bodine, and Special Agent in Charge Timothy R. Slater of the FBI Detroit Field Office made the announcement.
Richard Bauder, 69, former head of Audi’s Diesel Engine Development Department; Axel Eiser, 57, former head of Audi’s Engine Development Division; Stefan Knirsch, 52, former head of Audi’s Engine Development Division and a former member of Audi’s Management Board, and Carsten Nagel, 50, former head of Diesel Certification, were charged in the Eastern District of Michigan with one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act, along with multiple counts of wire fraud and multiple counts of making false statements under the Clean Air Act. All four are believed to be citizens of Germany. These individuals join Giovanni Pamio, 61, an Italian citizen, who was charged via criminal complaint in July 2017 and whose extradition from Germany is being sought by U.S. authorities. Pamio was formerly head of Thermodynamics within Audi’s Diesel Engine Development Department in Neckarsulm, Germany.
According to the indictment, from in or about 2006 until in or about November 2015, Pamio led a team of engineers responsible for designing emissions control systems to meet emissions standards, including for nitrogen oxides (NOx), for Audi 3.0 liter diesel vehicles in the United States.
The indictment further alleges, when Bauder, Eiser, Knirsch, Nagel and Pamio realized that it was impossible to calibrate a diesel engine that would meet NOx emissions standards within the design constraints imposed by other departments at the company, they directed Audi employees to design and implement a software function to cheat the standard U.S. emissions tests. The co-conspirators deliberately failed to disclose the software function, and knowingly misrepresented to U.S. regulators and U.S. customers that the vehicles complied with U.S. NOx emissions standards, the indictment alleges. Bauder, Eiser, Knirsch, Nagel, and Pamio also are alleged to have marketed the Audi 3.0 liter vehicles to the U.S. public as “clean diesel,” when they knew that these representations were false.
Audi’s parent company, Volkswagen AG (VW), previously pleaded guilty to three felony counts connected to cheating U.S. emissions standards. VW was sentenced in April 2017, and the company paid a $2.8 billion criminal penalty.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and EPA-CID investigated the case. This case is being prosecuted by Trial Attorneys Christopher Fenton and David Fuhr of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer Blackwell and Trial Attorney Joel La Bissonniere of the Environment and Natural Resources Division’s Environmental Crime Section, and White Collar Crime Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse of the Eastern District of Michigan. The Criminal Division’s Office of International Affairs also assisted in the case. The Department of Justice also extends its thanks to the Munich II Prosecutor’s Office in Munich, Germany, for its assistance.
Former Scranton Lackawanna Human Development Agency Employee Sentenced to Probation for Theft of Government FundsRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Joel Hunsicker, age 38, of Nesquehoning, Pennsylvania, was sentenced today by U.S. District Court Judge Malachy E. Mannion to serve two years on probation and pay restitution for his theft of government funds during a six-year time period.
According to United States Attorney David J. Freed, Hunsicker previously admitted to the theft of $6,730 of government funds when he worked at the Scranton Lackawanna Human Development Agency from 2009 through 2015. Hunsicker admitted to converting to his own use funds supplied by the U.S. Department of Labor for incentive rewards for students participating in the Pennsylvania CareerLink Lackawanna County program.
The case was investigated by the Department of Labor’s Office of Inspector General. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Former Quincy Man Sentenced for $1.9 Million Real Estate Fraud SchemeRead the Press Release
BOSTON – A former Quincy man, who had been a fugitive for more than 20 years prior to his arrest in April 2017, was sentenced today in federal court in Boston in connection with a $1.9 million real estate investment fraud scheme in Quincy.
Scott J. Wolas, 69, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 81 months in prison, three years of supervised release and ordered to pay $1,949,813 in restitution to the victims of his fraud scheme. Judge Saylor also ordered Wolas to pay restitution of $69,768 to Social Security and Medicare and $318,266 to the IRS. In June 2018, Wolas pleaded guilty to seven counts of wire fraud, one count of aggravated identity theft, misuse of a Social Security number and tax evasion.
From at least 2009 through 2016, Wolas, using the name Eugene Grathwohl, operated a real estate business known as Increasing Fortune Inc. and worked as a licensed real estate agent for Century 21 in Quincy. From 2014 through 2016, he solicited investments for the development of the Beachcomber Bar property on Quincy Shore Drive and for the construction of a single-family home on the adjacent property. He collected more than $1.9 million from at least 24 investors and promised each of them a significant return on their investments. He further promised to pay out at least 125% of the profits related to the single-family home construction. However, Wolas used the money mostly for personal expenses unrelated to development of the real estate projects.
Wolas was scheduled to close on the Beachcomber property on Sept. 15, 2016. A week before, however, he left Quincy and ceased all contact with his then-girlfriend, his co-workers, and his investors. Law enforcement then discovered that Grathwohl was actually Wolas, a former lawyer who had been a fugitive since 1997 after being charged with fraud and grand larceny in New York. The real Eugene Grathwohl resided in Florida and was known to Wolas.
On Nov. 17, 2016, law enforcement officers interviewed Wolas’ ex-wife, Cecily Sturge, of Delray Beach, Fla., who stated that she had not been in contact with her ex-husband for approximately 15 years. Sturge continued to say that this was so, despite evidence of contact between her cell phone and one known to belong to Wolas that demonstrated more recent communication between the two.
After further investigation, Wolas was arrested on April 7, 2017, at a condominium he was renting in Delray Beach, Fla. Investigators learned that Wolas had first rented a room in the condo from Nov. 12 through Nov. 21, 2016, through an online rental website in the name of Cecily Sturge. Messages exchanged between the condo owner and Sturge depicted a photo of Sturge and messages claiming that Wolas (using the name Cameron Sturge) was Sturge’s brother and a retired paleontologist in need of a place to stay. The owner of the condo told authorities that Sturge and Wolas arrived at the condo together in the same car on Nov. 12, 2016, five days before Sturge’s interview with law enforcement.
Sturge was divorced from Wolas in 2001 by default judgment in Palm Beach County, Fla. In February 2017, Sturge filed a petition to modify the judgment in order to obtain the contents of Wolas’ retirement account, which had a balance of approximately $647,000, from the New York law firm where he worked prior to being indicted in 1997 by New York authorities. In pleadings filed in February and March 2017 regarding that matter, Sturge swore that Wolas’ whereabouts were unknown to her, despite telephone records showing frequent contact between the two. In addition, copies or drafts of documents filed in the Florida proceeding, along with a thumb drive, were found in the room where Wolas was arrested. Wolas later admitted that he drafted the pleadings that Sturge filed. The United States previously obtained a court order freezing the retirement account pending the resolution of the criminal proceedings.
Sturge previously pleaded guilty to making a materially false statement to a federal agent and was sentenced in May 2018 to one year of probation.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorneys Sandra S. Bower of Lelling’s Criminal Division and David G. Lazarus of Lelling’s Civil Division prosecuted the case.
Former President of Labor Union Sentenced for Embezzlement, False Filings, and Kickback SchemesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ROCCO FAZZOLARI, who previously served as the president of a labor union (the “Union”) and a trustee of the Union’s employee welfare benefit plan (the “Plan”), was sentenced today to 37 months in prison for embezzling from the Union and the Plan, concealing this embezzlement through false filings with the U.S. Department of Labor, and for participating in a kickback scheme. Through these embezzlement and kickback schemes, FAZZOLARI and a co-conspirator illegally obtained a total of more than $1.3 million from the Union and the Plan. FAZZOLARI previously pled guilty before United States District Judge Analisa Torres, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Rocco Fazzolari abused his position as the president of a labor union, taking more than $1 million through embezzlement and kickback schemes. Most of this money was taken from an employee benefit plan, which was established to provide medical care for union members. For his crimes, he is now headed to federal prison.”
According to the allegations in the Information to which FAZZOLARI pled guilty, public court filings, and statements made in court:
From at least in or about 2012 through in or about June 2016, FAZZOLARI repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical expenses, dues for an actors’ union, personal credit card charges, and ATM cash withdrawals. FAZZOLARI then “reimbursed” the Union with funds from the Plan. The Plan was established to provide, among other things, medical, surgical, and hospital care or benefits to Union members. In total, FAZZOLARI embezzled more than $128,000 from the Union over approximately four years, and improperly transferred more than $89,000 from the Plan to “reimburse” the Union.
In addition, from at least in or about 2000 through in or about June 2016, FAZZOLARI engaged in a kickback scheme with another individual (“CC-1”). Using Plan funds, FAZZOLARI paid CC-1’s company, Acclaim Administrators, Inc. (“Acclaim”), more than $1.1 million for purported services, even though Acclaim did not actually provide the Plan with these services. CC-1 then kicked back the vast majority of these payments to FAZZOLARI.
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In addition to his prison term, ROCCO FAZZOLARI, 58, of Manhasset Hills, New York, was also ordered to serve three years of supervised release, to forfeit $941,828, and to pay restitution of $1,288,810.75. Under the terms of his plea agreement, FAZZOLARI has agreed to a 13-year ban, pursuant to 29 U.S.C. §§ 504 and 1111, which generally prohibits him from, among other things, being employed by a labor union or employee benefit plan.
Mr. Berman praised the Department of Labor’s Office of Inspector General, Employee Benefits Security Administration, Office of Chief Accountant, and Office of Labor-Management Standards for their outstanding investigative work. Mr. Berman also thanked the Federal Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance in this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Former LMPD Officer Pleads Guilty to Attempted EnticementRead the Press Release
LOUISVILLE, Ky. – Former Louisville Metro Police officer Brandon Wood has been charged in a felony Information and pleaded guilty to attempted enticement, announced United States Attorney Russell M. Coleman.
“The tragedy of the LMPD Explorer Program is that Mr. Wood and others used a well-intended program designed to recruit our finest young people into law enforcement service as a tool to exploit those same kids,” stated U.S Attorney Russell Coleman. “The United States looks forward to his sentencing to a term of years in federal prison.”
"Brandon Wood's guilty plea is a testament to the FBI Louisville’s Public Corruption Civil Rights Task Force's hard work. The FBI and its task force partners, Louisville Metro Police Department and the Kentucky Attorney General's Office, are dedicated to preserving the integrity of our governmental institutions,” said FBI SAC James Robert Brown Jr. “Whether that be law enforcement or elected officials, no one is above the law."
According to a plea agreement, between 2011 and 2012, Wood attempted to entice John Doe 1, who had not reached 18 years of age, to engage in sexual activity. Wood met Doe through the LMPD Explorers Program during a camp held in Bullitt County – where Wood was a counselor and sworn LMPD officer. Wood used social media to contact John Doe 1 after the camp. Those communications resulted in an attempt to entice the minor to engage in sexual activity.
The attempted enticement charge carries a mandatory minimum of 10 years’ imprisonment, a maximum fine of $250,000.00, followed by no less than 5 years and could be up to a life term of Supervised Release.
Assistant United States Attorney Jo E. Lawless is prosecuting the case which is being investigated by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department’s Public Integrity Unit.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Former E-Commerce Executive Pleads Guilty to Price Fixing; Sentenced to Six MonthsRead the Press Release
Daniel William Aston, a former e-commerce executive, pleaded guilty on Jan. 17, 2019 for conspiring to fix the prices of posters sold online. Aston, a resident and citizen of the United Kingdom, was indicted by a federal grand jury in the Northern District of California on Aug. 27, 2015. Aston was a fugitive until his arrest in Spain in May 2018. After his arrest, he spent over five months in Spanish custody before agreeing to submit to U.S. jurisdiction and answer to price-fixing charges.
Aston is the former Director and part owner of Trod Limited (doing business as Buy 4 Less, Buy For Less, and Buy-For-Less-Online), a U.K. company headquartered in Birmingham, England, which was also charged in the indictment. Trod Ltd. pleaded guilty to the price-fixing charges on Aug. 11, 2016. Aston admitted to fixing the price of certain posters sold in the United States on Amazon Marketplace from as early as September 2013 to approximately January 2014. Following his guilty plea, Aston was sentenced to serve a custodial sentence of six months, with credit for the time he served in Spanish custody. Aston will serve the remainder of his custodial sentence under supervised release.
“Today’s announcement represents another successful development in the Division’s first online marketplace prosecution involving algorithmic pricing tools and a warning to fugitives who attempt to evade prosecution,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Americans shopping online, like all consumers, deserve the benefit of a market free from collusion. The Division and its law enforcement partners are committed to investigating and prosecuting individuals, wherever located, who collude through new and sophisticated means, including algorithmic pricing software.”
According to the charge, Aston and his co-conspirators discussed the prices of certain posters sold in the United States through Amazon Marketplace and agreed to fix, increase, maintain, and stabilize the prices of those posters. In order to implement their agreements, the defendant and his co-conspirators agreed to adopt specific pricing algorithms for the sale of certain posters with the goal of coordinating changes to their respective prices.
This prosecution arose from a federal antitrust investigation into price fixing in the online wall décor industry being conducted by the Antitrust Division’s San Francisco Office with the assistance of the FBI’s San Francisco Field Office. Anyone with information on price fixing or other anticompetitive conduct related to other products in the wall décor industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Former City of Atlanta Deputy Chief of Staff sentenced to federal prison for accepting bribesRead the Press Release
ATLANTA - Evelyn Katrina Taylor-Parks has been sentenced to federal prison for conspiring to accept bribe payments while she served as the City of Atlanta’s Deputy Chief of Staff to the Mayor.
“Let Ms. Taylor-Parks’ case be a warning to any and all public officials who abuse their power for personal gain, or for the benefit of their associates to the detriment of the taxpayers: we will thoroughly and appropriately investigate such criminal breaches of fiduciary duty and bring them to justice irrespective of the dollar amount of the ill-gotten gain,” said U.S. Attorney Byung J. “BJay” Pak.“Parks abused the trust placed in her by the people of the city of Atlanta,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and its partners in law enforcement will not tolerate those who choose to try to influence established and proper government procedures. We would urge anyone who witnesses similar activity by public officials to contact the FBI.”
“In order to regain trust in our local government, we will continue to investigate and recommend criminal charges against those who engage in corrupt governmental practices,” said Thomas J. Holloman, Special Agent in Charge, IRS- Criminal Investigation. “The sentence handed down today should deter those who seek to peddle political influence and access for personal financial gain while in a public service position.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately January 2010 to May 2018, Parks served as the Deputy Chief of Staff to the Mayor of the City of Atlanta. As the Deputy Chief of Staff, Parks had various responsibilities, including managing core City of Atlanta operations, coordinating with the Mayor and the executive staff to execute the administration’s policies, and facilitating the procurement process.
In her position, Parks signed an annual Financial Disclosure Statement attesting that she was not self-employed or employed by any business or entity other than the City of Atlanta, and that she had not received more than $5,000 in annual income from any source other than the City of Atlanta. Parks executed the Financial Disclosure Statements under penalty of perjury in 2011, 2012, and 2013, stating she was not employed outside the City of Atlanta.
A vendor, who was an executive with a firm in Atlanta during Parks’ tenure as the Deputy Chief of Staff, sought work through his businesses with the City of Atlanta, and the City of Atlanta ultimately awarded one project to the vendor’s firm worth $99,999.
From late-2011 to mid-2013, Parks met privately with the vendor on multiple occasions. During these meetings, Parks and the vendor discussed various topics, including the vendor’s desire to obtain work with the City of Atlanta, the idea of sole-source contracting, and the process by which the vendor could obtain a sole-source contract with the City of Atlanta. At the time of these meetings, the vendor was actively seeking projects and work with Atlanta, and at times was performing work for the City of Atlanta.
The vendor paid Parks thousands of dollars and paid for various services on Parks’ behalf, while seeking work with the City of Atlanta. In return for these bribe payments, Parks knew that the vendor wanted her to use her position and power as the Mayor’s Deputy Chief of Staff to assist the vendor with the City of Atlanta’s contracting and procurement process, and to assist the vendor in the future when needed.
In exchange for accepting money from the vendor:
1. Parks met regularly with the vendor, took the vendor’s calls, and responded to the vendor’s emails.
2. She organized and arranged meetings between the vendor and high-ranking employees within the City of Atlanta and with a member of the City Council.
3. Based on the high-level nature of her position, Parks knew that when she contacted City of Atlanta employees, on behalf of the vendor, those employees would feel compelled to comply with her requests.
4. Parks provided the vendor with information and advice regarding the processes and procedures to obtain a sole-source contract with the City of Atlanta.
5. She assisted the vendor in obtaining a City Council Resolution allowing the City of Atlanta to negotiate a sole-source contract with the vendor that was possibly worth millions of dollars. Parks believed that the vendor intended to use the resolution in an attempt to obtain government contracts outside of Atlanta.
6. She also facilitated and expedited the process for the vendor to receive payment for work the vendor had completed for the City of Atlanta.
In total, Parks admitted to taking bribe payments from the vendor on 7 or 8 occasions, where each bribe was between $1,500 and $2,000. Parks also received from the vendor a Louis Vuitton handbag, a cruise to Mexico, and a trip to Chicago. Parks never disclosed her ongoing financial relationship with the vendor and/or the vendor’s firm on her Financial Disclosure Statements to the City Atlanta. As a result, from January to July 2013, the City of Atlanta issued payments of $19,900, $11,750, $15,000, $17,200, and $36,149 to the vendor’s firm.
On November 16, 2017 and on February 15, 2018, Parks was interviewed by the Federal Bureau of Investigation. During those interviews, Parks falsely stated that she had never taken money from the vendor.
On August 15, 2018, Evelyn Katrina Taylor-Parks, 49, of Douglas County, Georgia, pleaded guilty to a criminal information charging her with one count of conspiratorial bribery. Based on her conviction, Parks was sentenced to one year and nine months in prison to be followed by three years of supervised release and was ordered to pay approximately $15,000 in restitution.
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Jill E. Steinberg, Deputy Chief of the Criminal Division prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Chief Executive Officer and Senior Vice President of Barbadian Insurance Company Charged with Laundering Bribes to Former Minister of Industry of BarbadosRead the Press Release
The former chief executive officer and senior vice president of Insurance Corporation of Barbados Limited (ICBL), a Barbados-based insurance company, were charged in an indictment unsealed on Jan. 18, with laundering bribes to the former Minister of Industry of Barbados in exchange for his assistance in securing government contracts for ICBL.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York and Assistant Director-in-Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
Ingrid Innes, 63, a citizen of Canada, and Alex Tasker, 58, a citizen of Barbados, were charged with one count of conspiracy to launder money and two counts of money laundering in an indictment returned in Aug. 22, 2018, by a federal grand jury sitting in Brooklyn, New York. The former Minister of Industry of Barbados, Donville Inniss, 52, a U.S. legal permanent resident who resided in Tampa, Florida, and Barbados, was charged with the same crimes in an indictment unsealed on Aug. 6, 2018, and was also charged as a co-defendant of Innes and Tasker in the superseding indictment.
The indictment alleges that in 2015 and 2016, Innes, then the chief executive officer of ICBL, and Tasker, then a senior vice president of ICBL, took part in a scheme to launder into the United States approximately $36,000 in bribes that they paid to Inniss, who at the time was a member of the Parliament of Barbados and the Minister of Industry, International Business, Commerce and Small Business Development of Barbados. In exchange for the bribes, Inniss allegedly leveraged his positon as the Minister of Industry to enable ICBL to obtain two government contracts. According to the allegations, Inniss arranged to receive the bribes through a U.S. bank account in the name of a dental company with an address in Elmont, New York, in order to conceal the scheme.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
ICBL voluntarily self-disclosed the case and received a declination under the FCPA Corporate Enforcement Policy. ICBL disgorged $93,940.19 in illicit profits that it earned from the scheme.
The FBI’s New York Field Office and International Corruption Squad is investigating the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
Trial Attorney Gerald M. Moody Jr. of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sylvia Shweder of the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Charter Airline CEO Sentenced to Nearly Eight Years in Prison for Orchestrating Multimillion Dollar Scheme to Steal Passenger Money from EscrowRead the Press Release
The former chief executive officer of a now-bankrupt public air charter operator was sentenced to 94 months in prison on Jan. 11 for her role in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Regional Special Agent in Charge Douglas Shoemaker of the U.S. Department of Transportation Office of the Inspector General’s (DOT-OIG).
Judy Tull, 73, of Edenton, North Carolina, was sentenced by U.S. District Judge Susan D. Wigenton of the District of New Jersey, who presided over the trial. Judge Wigenton also ordered the defendant to pay $19.6 million in restitution. Tull and her co-defendant, Kay Ellison, 58, also of Edenton, were both convicted on March 28, 2018 after a seven-day trial, of one count of conspiracy to commit wire fraud affecting financial institutions and to commit bank fraud, four counts of wire fraud affecting financial institutions and three counts of bank fraud. Tull is the former CEO of Myrtle Beach Direct Air and Tours (Direct Air), which was headquartered in Myrtle Beach, South Carolina, with operations in Daniels, West Virginia, and Ellison is its former vice president and managing partner. Judge Wigenton sentenced Ellison on Nov. 28, 2018 to 94 months in prison and ordered her to pay $19.6 million in restitution.
According to evidence presented at trial, from October 2007 through March 2012, Tull and Ellison engaged in a scheme to steal passengers’ money for future travel from an escrow account by artificially inflating the amount of money that the defendants claimed they were entitled to receive, and by sending this falsified amount in a letter to the escrow bank telling the escrow bank to release the money. The evidence further established that to cover up their fraud, the defendants falsified profit and loss statements to make the company look like it was making money rather than losing money, and sent these falsified documents to credit card companies and banks to trick them into continuing to do business with the company.
Testimony at trial established that two financial institutions incurred losses of nearly $30 million for having to refund thousands of passengers their money that should have been held for them in escrow, but was actually stolen by the defendants as part of their fraud.
Robert Keilman, 73, of Marlboro, New Jersey, Direct Air’s former chief financial officer, pleaded guilty to charges stemming from his role in this scheme and was sentenced separately.
This case was investigated by DOT-OIG. Trial Attorneys Cory E. Jacobs and Michael T. O’Neill of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against complex white collar crime around the country.
Florida Man Convicted for Assaulting Customs and Border Protection Officer at Orlando International AirportRead the Press Release
Orlando, Florida – On January 8, 2019, a federal jury found John Craig Myrick (67, Groveland) guilty of forcible assault of a federal officer causing bodily injury. Myrick faces a maximum penalty of 20 years in federal prison. His sentencing hearing is set for April 10, 2019.
According to testimony and evidence presented at trial, on August 11, 2018, Myrick arrived at the Orlando International Airport from Bogota, Colombia. While passing through the screening area, a U.S. Customs and Border Protection officer (CBPO) directed Myrick to the baggage control seating area. While in the seating area, Myrick moved towards another CBPO. The CBPO with whom he had a brief interaction attempted to control Myrick by grabbing Myrick’s arm. Myrick resisted, fell on top of the CBPO, and began punching the officer in the back of the head several times. The CBPO suffered a fractured ankle in the process.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection. It is being prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, ICE, and Assistant United States Attorney E. Jackson Boggs.
Florida Man Charged with Procurement Fraud Related to Federal Courthouse in St. ThomasRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that David Wikel, president of Florida-based Therma-Seal Roof Systems, LLC, was charged with providing kickbacks in connection with the $1.7 million dollar federal government subcontract to retrofit the roof of the Ron de Lugo Federal Building in St. Thomas, VI.
According to the Information filed in the case, in May through October 2014 Wikel paid over $200,000 in kickbacks to a senior project manager for the prime contractor on the Ron de Lugo Project, and that person ultimately funneled $85,000 back to Wikel. The Informtion also alleges that Wikel falsely inflated the costs billed under the subcontract in order to cover the aforementioned kickbacks.
This case is being investigated by the General Services Administration – Office of the Inspector General, the Department of Veterans Affairs-Office of the Inspector General, the Naval Criminal Investigative Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
United States Attorney Shappert reminds the public that an Information is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Fentanyl Trafficker Extradited to the United StatesRead the Press Release
On Jan. 24, Canadian authorities extradited Christopher Bantli, a prolific vendor of various controlled substances, to the United States to face drug trafficking charges filed in the District of Columbia.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Marcus Anderson of the Drug Enforcement Administration’s (DEA) Orlando Field Office made the announcement.
Bantli, 39, arrived in the United States Thursday evening and made an initial appearance on Friday, Jan. 25 before U.S. Magistrate Judge Robinson in federal court in Washington, D.C. Bantli is charged in a seven-count indictment alleging that from November 2015 through September 2016, he imported into the United States from Canada and elsewhere various controlled substances, including powerful synthetic opiates such as acetyl fentanyl. This case is assigned to U.S. District Judge Amy Berman Jackson.
The case was investigated by the DEA, in cooperation with Canadian law enforcement authorities. Trial Attorney Brian Nicholson of the Department of Justice’s Office of International Affairs provided significant assistance in bringing Bantli to the United States and procuring foreign evidence during the investigation. The U.S. Marshals Service provided critical assistance by assisting in the extradition.
The U.S. Department of Justice thanks the Government of Canada for its assistance in this case, in particular the Calgary Police Service Cybercrime Support Team.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle, and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Kaitlin Sahni and Anthony Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) are prosecuting the case. Deputy Chief of the Money Laundering and Asset Recovery Section’s (MLARS) Special Financial Investigations Unit Stephen Sola and Trial Attorney Erin Cox, both formerly of NDDS, also provided significant assistance on the case.
Federal crackdown on financial fraud and ATM skimming continues with guilty pleasRead the Press Release
SAVANNAH, Ga: Two Brazilian nationals who used bank customers’ account information obtained by an ATM “skimming” device have pled guilty in federal court.
Julio Lopez Da Silva, 38, pled guilty to one count of conspiracy to commit bank fraud, while Anderson Santos, 41, pled guilty to one count of aggravated identity theft, in U.S. District Court in Brunswick, said United States Attorney Bobby L. Christine. Da Silva faces sentencing of up to 30 years in prison, while Santos faces a mandatory two-year sentence. There is no parole in the federal system.
The two were named in September in a six-count indictment alleging their participation in a scheme that involved placing card-reading devices on ATMs to capture customer information, and then using the information to encode blank cards to withdraw substantial amounts of money. After the men were arrested Dec. 3, 2017 in Savannah, police searched a Port Wentworth hotel where the two were staying and discovered skimming equipment and nearly $20,000 in cash.
The guilty pleas from Da Silva and Santos follow similar recent cases in the coastal area, all involving foreign nationals operating illegal skimmers. Adrian Burloiu, 39, a Romanian national, pled guilty Dec. 11, 2018, to possessing 15 or more unauthorized access devices and now faces up to 10 years in prison. In March, Yosvel Licor Nunez, 36, was sentenced to 20 months in prison; Yampiel Granja Sotolongo, 35, was sentenced to 28 months; and Yoisel Pego Mirabal, 32, was sentenced to 27 months for their part in a scheme to operate skimmers that stole customer information at gas stations. All three men are Cuban nationals.
The cases were investigated by the United States Secret Service, along with the Rincon Police Department, Savannah Police Department, Port Wentworth Police Department, the Richmond Hill Police Department and the U.S. Attorney’s Office.
“These cases demonstrate the success of cooperative investigations by federal and local agencies teaming up against those who would attempt to profit from fraud and theft,’” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Law enforcement agencies and prosecutors working together will find these criminals, no matter their national origin, and we will send them to prison.”
“One of the top priorities for the Secret Service continues to be combating computer-related crimes perpetrated by domestic and international criminals that target the U.S. financial infrastructure,” said Secret Service Resident Agent in Charge Glen Kessler. “The Secret Service, in conjunction with its many retail and law enforcement partners across the United States and around the world, continues to successfully combat these crimes by working closely with experts from all affected sectors to constantly refresh and adapt our investigative methodologies.
“The Secret Service has taken a lead role in mitigating the threat of ATM and gas pump skimming as exhibited in these cases and we will continue to place a strong emphasis on prevention and education with financial institutions, retail partners and law enforcement, “ added RAIC Kessler.
For retailers and financial institutions seeking additional information on ATM and gas pump skimming, please contact your local Secret Service Field Office at www.secretservice.gov and ask to speak to the Electronic Crimes Task Force representative.
Federal Jury Finds Orange Park Man Guilty in Overdose Death of 18-Year-Old WomanRead the Press Release
Jacksonville, FL - On January 16, 2019, a federal jury found Trumaine “Lucky” Muller (34, Orange Park) guilty of one count of distributing fentanyl that resulted in the overdose death of an 18-year-old woman, one count of distribution of heroin and furanylfentanyl, one count of possessing with the intent to distribute cocaine and furanylfentanyl, and one count of possessing a firearm as a convicted felon. Muller faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for May 6, 2019.
According to evidence presented at trial, on November 9, 2016, at approximately 10:30 pm, Tyler Hamilton, Christopher Williams, and an 18-year-old female with the initials A.B. traveled together to the Cedar Bend apartments in Orange Park, Florida to buy $40 worth of heroin from Muller, a local dealer. Muller was a regular dealer for Williams. Hamilton provided the bulk of the money for the drug transaction. After leaving Muller’s apartment with what they believed to be heroin (which was actually fentanyl), Williams drove to Hamilton’s house. Hamilton went inside, shot up about half of the purchased fentanyl, and overdosed. Hamilton survived.
When paramedics responded to Hamilton’s house, Williams and A.B. drove a short distance to Williams’s house. While at Williams’ house, Williams and A.B. split the remaining $20 of the fentanyl (believing it to be heroin). Williams went into his bathroom, shot up the fentanyl, and passed out. He awoke a short time later when Hamilton called Williams asking him to go to his house to pick him up. When Williams left his house, A.B. was conscious and alert. When Williams and Hamilton returned around midnight, A.B. was asleep on Williams’s sofa.
At 1:32 am on November 10, 2016, Hamilton began searching online to search for signs of an overdose and how to place someone in the “recovery position” (such that they do not asphyxiate in case of vomiting). During the 3:00 am hour, A.B.’s breathing became more labored and she began to aspirate in her sleep. At 4:13 am, Williams and Hamilton called 911. At 4:45 am, after paramedics had responded, A.B. was pronounced dead.
Clay County homicide and narcotics detectives responded to the scene and obtained information that indicated that Muller had distributed the fentanyl. Detectives located Muller, who was then a passenger in a stolen rental vehicle on Blanding Boulevard in Orange Park. The detectives watched Muller engage in a suspected drug transaction in a parking lot in Orange Park, and stopped that vehicle a short time later. Inside the car, the detectives found $1,942 in a purse and foil packets used to distribute opiates. The detectives also found cellphone that was later identified as the phone that Hamilton had used on November 9, 2016, to set up the fentanyl deal.
After a follow-up investigation, on February 8, 2017, the Clay County Sheriff’s Office executed a search warrant at Muller’s apartment and recovered distribution amounts of heroin, cocaine, and a loaded .38 caliber Smith and Wesson revolver. At time, Muller had a prior felony conviction and was therefore prohibited from possessing a firearm or ammunition.
Williams (33) and Hamilton (28) previously pleaded guilty to manslaughter in state court.
This case was investigated by the Clay County Sheriff’s Office and the State Attorney’s Office for the Fourth Judicial Circuit. It was prosecuted by Assistant United States Attorney Tysen Duva.
Federal Jury Finds Brandon Man Who Tried to Turn 12-Year-Old Relative into His Child-Wife GuiltyRead the Press Release
Tampa, Florida – On January 11, 2019, United States Attorney Maria Chapa Lopez announced that a federal jury had found Mirza Afzal Hussain (55, Brandon) guilty of coercion and enticement of a minor, document fraud, and aggravated identity theft. Hussain faces a maximum penalty of life in federal prison for the enticement conviction, a maximum of 15 years’ imprisonment for the document fraud conviction, and a mandatory, consecutive two-year term of imprisonment for the aggravated identity theft conviction. Hussain’s sentencing hearing is scheduled for April 11, 2019.
According to evidence presented at trial, Hussain agreed to house his sister and her family, including two minor daughters, when the relatives legally immigrated to the United States from Bangladesh in 2010. Hussain’s relatives were culturally and socially isolated, did not have employment, lacked transportation, and spoke very little English. During their stay at his house, Hussain developed a romantic and sexual interest in his 12-year old niece. He bought the child tight, American styled-clothing, romantic jewelry, and cellphones. He also sexually battered his niece and started living with her openly as if she were his spouse—in front of her family and his wife.
Hussain’s wife left him, and, in early 2012, the relatives (including his 12-year-old niece), also moved out of his home. For several years, Hussain continued to contact his niece. He signed her out of school, lingered outside her new residence, and continued to contact her by phone frequently. Hussain sent numerous sexually explicit text messages to his niece—professing his love for her and his intention to marry her, discussing sex with her, soliciting naked photographs from her, and asking her to masturbate for him. He also manipulated her into falsifying reports claiming her parents were abusing her.
In November 2012, Hussain traveled to Bangladesh and obtained a false birth certificate that changed his niece’s birthdate, making her appear to be three years older. He returned to the United States and used that birth certificate to fraudulently obtain a new Legal Permanent Resident Card reflecting her new birth year. Hussain then showed up at his niece’s home and tried to take her away from her parents—presenting the Legal Permanent Resident Card as proof that she was an adult.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Frank Murray and Mandy Riedel. Assistant United States Attorneys Jennifer Peresie and Rachel Jones assisted in the prosecution.
Federal Fugitive Arrested on Robbery and Firearm ChargesRead the Press Release
NEWPORT NEWS, Va. – A fugitive who fled the scene of a fatal car crash that killed a 78 year-old woman on Wednesday afternoon made his initial appearance in federal court today on robbery and gun charges.
Darrell Pittman, 29, of Newport News, was arrested in Chesapeake early Saturday following his escape from the fatal car crash. Pittman, who was a passenger in the Ford Explorer that struck the vehicle of the woman who was killed, fled the scene before he could be apprehended by police on outstanding warrants.
According to allegations in the indictment that was unsealed today, Pittman approached a Papa John’s employee on or about July 25, 2018, in Newport News and allegedly took money, pizza, and property from the employee through the threat of force and violence, brandishing a firearm at the employee and demanding the employee’s money and property during the course of the robbery.
Pittman is charged with interference with commerce by robbery, and with brandishing a firearm in furtherance of a crime of violence. If convicted of the brandishing charge, he faces a mandatory minimum consecutive term of 7 years in prison. If convicted on both counts, Pittman faces a maximum penalty of 27 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Pittman is scheduled for a detention hearing Thursday at the federal courthouse in Newport News.
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 reinvigorated PSN in 2017 as part of a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Mathieson, U.S. Marshal for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Steve R. Drew, Chief of Newport News Police, made the announcement. Special Assistant U.S. Attorneys Amy E. Cross and Chad McHenry are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-4.
A(n) indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
East Coast Stepping Stones, Inc., A Jacksonville-Based Provider for Children with Autism, Pays the United States $360,000 to Settle Allegations of FraudRead the Press Release
Jacksonville, FL – United States Attorney Maria Chapa Lopez announced today that East Coast Stepping Stones, Inc. (“ECSS”) has paid the United States $360,000 to resolve a False Claims Act allegation that it submitted false claims to the TRICARE program for therapy services for children with autism. ECSS is a Jacksonville-based provider of intensive behavioral treatment to children with autism, known as Applied Behavioral Analysis (“ABA”) therapy. TRICARE is the federal health insurance program for active and retired military members and their families.
The settlement announced today resolves allegations that ECSS billed TRICARE for ABA therapy services for children with autism that misrepresented the services provided and who had provided them. ECSS also failed to document services as required, and fabricated and altered medical records. ECSS and its senior leadership— Amantha Massey-McLaughlin, Kevin McLaughlin, and Susan Quinn—have agreed to pay $360,000 in an ability-to-pay settlement.
“Companies that commit to providing intensive behavioral treatment to children with autism, at a pivotal time of that child’s development, should be held accountable for their actions,” said U.S. Attorney Maria Chapa Lopez. “Our Office is committed to protecting federally funded programs that make it possible for children with special needs to receive these vital services.”
“This settlement demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service to protect the integrity of DoD programs by rooting out fraud, waste, and abuse that diverts and wastes precious American taxpayer dollars intended for our Warfighters and their families" said Special Agent in Charge John F. Khin, Southeast Field Office.
This case was handled by Assistant United States Attorney Shea Gibbons, the U.S. Department of Health and Human Services Office of Inspector General, and the Defense Criminal Investigative Service.
The litigation and settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Dulles Metrorail Project Subcontractor and Company President Settle Civil Fraud SuitRead the Press Release
ALEXANDRIA, Va. – Universal Concrete Products Corporation (UCP) and its President and co-owner, Donald Faust, Jr., have agreed to pay $1 million to settle civil allegations that UCP falsified test records for concrete panels for the extension of the Silver Line, also known as Phase II of the Dulles Metrorail Project.
The allegations stem from UCP’s work as one of the subcontractors supplying precast concrete to the Dulles Metrorail Project, which is partially funded by loans from the U.S. Department of Transportation and the Commonwealth of Virginia. The government’s amended consolidated civil complaint in intervention alleges that from approximately October 2015 through June 2016, then-UCP Quality Control Manager, Andrew Nolan, and UCP quality control employees under his supervision, falsified test records to make it appear as though air content for the concrete was within the required range of air content. Nolan allegedly falsified test records knowing that the general contractor for the Dulles Metrorail Project would reject the concrete had it known that the concrete fell below the required air content for the project. The Metropolitan Washington Airports Authority (MWAA) is overseeing Phase II of the Dulles Metrorail Project and is addressing any remediation necessary as a result of the alleged conduct separately from the resolution reached by the government in this settlement.
The government’s civil lawsuit claims are based on a whistleblower suit initially filed in 2016 by a former UCP quality control employee. The suit was filed in the federal district court for the Eastern District of Virginia, under the qui tam provisions of the False Claims Act and the Virginia Fraud Against Taxpayers Act, which allow private persons to file suit on behalf of the government. Under the statutes, the government has a period of time to investigate the allegations and decide whether to intervene in the action or to decline intervention and allow the whistleblower, also called the relator, to go forward alone. The government intervened in the relator’s suit in May 2018. The False Claims Act and Virginia Fraud Against Taxpayers Act also provides the whistleblower a share of the government’s recovery.
Related court documents and information from the civil lawsuit is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cv-316.
In August 2018, Nolan pleaded guilty to conspiracy to commit wire fraud. Related court documents and information from the criminal action is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-292.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Virginia Attorney General’s Office, the FBI, and the U.S. Department of Transportation’s Office of Inspector General. The matter was investigated by Assistant U.S. Attorney Christine Roushdy, Special Assistant U.S. Attorney Ronald Fiorillo, and Assistant Attorneys General Peter Broadbent and Nancy Auth.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Doctor charged for prescribing narcotics to non patients, ordered detained until trialRead the Press Release
SAVANNAH, Ga: A physician with clinics in Pooler, Ga., and Braselton, Ga., has been indicted for illegally prescribing drugs to non-patients and ordered held in custody pending trial in federal court.
Dr. Johnny Di Blasi, 46, of Braselton, Ga., is named in a nine-count indictment for Conspiracy to Unlawfully Dispense Controlled Substances (Oxycodone), Unlawful Dispensation of Controlled Substances (Schedules II and IV), and False Statements Related to Health Care Matters, said Bobby L. Christine, United States Attorney for the Southern District of Georgia. Agents from the U.S. Drug Enforcement Administration took Di Blasi into custody Christmas Eve at Miami International Airport while he was waiting to board a flight to Medellin, Colombia.
As described in a criminal complaint and subsequent indictment, Di Blasi, known as “Dr. Johnny,” is accused of writing prescriptions for narcotics, including opioids and amphetamines, to non-patients. The complaint alleges Di Blasi wrote the prescriptions through clinics he operated in Pooler, Ga., and Braselton, Ga., to individuals traveling from at least 11 states. In addition, the complaint describes Di Blasi as providing prescriptions for opioid pain medications and amphetamines to non-patients he met in restaurants and bars. Four counts of the indictment charge Di Blasi with knowingly concealing the fact that the prescriptions he signed were issued for no legitimate medical purpose and not in the usual course of professional practice.
The indictment alleges the illegal behavior took place for more than a year, with the United States Drug Enforcement Administration initiating a formal investigation in March 2018.
“A key component of the opioid crisis gripping our nation is the supply chain provided by unscrupulous, profiteering medical professionals who violate the law while breaking their oath to ‘do no harm,’” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Even during the holidays, however, our law enforcement agencies and prosecutors will work to remove dangerous drug distributors from our communities, whether they are street-corner dealers or professionals in lab coats.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The sharp increase in consumption of opiates being distributed for non-medical reasons continues to be a major concern. To help combat this growing problem, DEA and its local law enforcement counterparts will continue to target those who traffic these addictive pain medications.”
“HHS OIG will continue to work with our law enforcement partners round-the-clock to aggressively pursue providers who abuse their position of trust,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Providers who unscrupulously prescribe addictive drugs should know that our agents, no matter what the holiday, will continue in the fight against the opioid epidemic.”
Said Chatham-Savannah Counter Narcotics Team Director Everett Ragan, “There are a lot of good doctors who take their medical oath seriously. This arrest is a prime example that we will seek all drug dealers no matter the holiday or what their day job or title is.”
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Assistant U.S. Attorneys Matthew Josephson and Tom Clarkson are prosecuting the case for the United States.
District Man Pleads Guilty to Bank Robbery for Hold-Up at Branch in Downtown WashingtonRead the Press Release
WASHINGTON – Paul Bernard Jones, 58, of Washington, D.C., pled guilty today to a federal bank robbery charge for a hold-up last summer in downtown Washington, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jones pled guilty in the U.S. District Court for the District of Columbia. The plea, which is subject to the Court’s approval, calls for an agreed-upon prison sentence of 70 to 87 months, to be followed by five years of supervised release. The Honorable Amy Berman Jackson scheduled sentencing for April 30, 2019,
According to plea documents, on June 11, 2018, at approximately 9:10 a.m., Jones entered a TD Bank branch in the 1700 block of Connecticut Avenue NW. He walked up to a teller, took a wadded-up piece of paper, and tossed it at her. He then stated “give me everything, give me hundreds, fifties, and twenties only and don’t push anything. I have something on me.” The wadded-up piece of paper also demanded money and contained a threat. The teller provided Jones with $1,450 in cash and he fled the bank.
Within minutes, the Metropolitan Police Department and FBI responded to the bank. An MPD officer observed Jones at the intersection of 14th and R Streets NW, a few blocks from the bank. He tried to run, but was immediately apprehended. Law enforcement located $1,433 in cash in a search of the defendant. Jones has been in custody since his arrest.
The prosecution grew out of the efforts of the FBI Bank Robbery Task Force.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Catherine O’Neal and Legal Assistant Emma Atlas of the U.S. Attorney’s Office. Finally, they commended the work of Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, who is prosecuting the matter.
DC and Maryland Residents in Scheme to File Fraudulent Tax Returns and Obstruct the IRSRead the Press Release
The indictment charges Johnny and Maria Moore, from the District of Columbia, along with Charese Johnson, aka Charese Adesalu, from Aberdeen, Maryland, with conspiring to defraud the United States in an effort to obtain fraudulent refunds from the Internal Revenue Service (IRS). The indictment also charges the Moores with aiding and assisting in the preparation of false trust tax returns (Forms 1041), and filing their own false amended personal income tax returns (Forms 1040X) with the IRS. Additionally, Johnson is charged with aiding and assisting the Moores in preparing their false Forms 1040X.
To further the scheme, the Moores, together with Johnson and another co-conspirator, allegedly prepared and filed tax returns that claimed either false withholdings or false credits. Based on those alleged falsities, they requested significant refunds to which they were not entitled. The Moores allegedly received a refund of over $500,000 for one trust tax return filed for the 2012 tax year. As charged in the indictment, when the IRS sought to recoup that refund, Johnson conspired with the Moores and others to obstruct the IRS collection efforts.
If convicted, the defendants each face a maximum sentence of 5 years for the conspiracy charge, and 3 years for each of the false return charges. The defendants also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of Internal Revenue Service-Criminal Investigation, who investigated this case, and Trial Attorneys Abigail Burger Chingos and Jeffrey McLellan of the Tax Division, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Chinese Telecommunications Device Manufacturer and its U.S. Affiliate Indicted for Theft of Trade Secrets, Wire Fraud, and Obstruction of JusticeRead the Press Release
WASHINGTON - A 10-count indictment unsealed today in the Western District of Washington State charges Huawei Device Co., Ltd. and Huawei Device Co. USA with theft of trade secrets conspiracy, attempted theft of trade secrets, seven counts of wire fraud, and one count of obstruction of justice. The indictment, returned by a grand jury on January 16, details Huawei’s efforts to steal trade secrets from Bellevue, Washington based T-Mobile USA and then obstruct justice when T-Mobile threatened to sue Huawei in U.S. District Court in Seattle. The alleged conduct described in the indictment occurred from 2012 to 2014, and includes an internal Huawei announcement that the company was offering bonuses to employees who succeeded in stealing confidential information from other companies.
“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes” Acting Attorney General Matthew G. Whitaker said. “As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law. I’d like to thank the many dedicated criminal investigators from several different federal agencies who contributed to this investigation and the Department of Justice attorneys who are moving the prosecution efforts forward. They are helping us uphold the rule of law with integrity.”
“The charges unsealed today clearly allege that Huawei intentionally conspired to steal the intellectual property of an American company in an attempt to undermine the free and fair global marketplace,” said FBI Director Wray. “To the detriment of American ingenuity, Huawei continually disregarded the laws of the United States in the hopes of gaining an unfair economic advantage. As the volume of these charges prove, the FBI will not tolerate corrupt businesses that violate the laws that allow American companies and the United States to thrive.”
“This indictment shines a bright light on Huawei’s flagrant abuse of the law – especially its efforts to steal valuable intellectual property from T-Mobile to gain unfair advantage in the global marketplace,” said First Assistant U.S. Attorney Annette L. Hayes of the Western District of Washington. “We look forward to presenting the evidence of Huawei’s crimes in a court of law, and proving our case beyond a reasonable doubt. Fair competition and respect for the rule of law is essential to the functioning of our international economic system.”
According to the indictment, in 2012 Huawei began a concerted effort to steal information on a T-Mobile phone-testing robot dubbed “Tappy.” In an effort to build their own robot to test phones before they were shipped to T-Mobile and other wireless carriers, Huawei engineers violated confidentiality and non-disclosure agreements with T-Mobile by secretly taking photos of “Tappy,” taking measurements of parts of the robot, and in one instance, stealing a piece of the robot so that the Huawei engineers in China could try to replicate it. After T-Mobile discovered and interrupted these criminal activities, and then threatened to sue, Huawei produced a report falsely claiming that the theft was the work of rogue actors within the company and not a concerted effort by Huawei corporate entities in the United States and China. As emails obtained in the course of the investigation reveal, the conspiracy to steal secrets from T-Mobile was a company-wide effort involving many engineers and employees within the two charged companies.
As part of its investigation, FBI obtained emails revealing that in July 2013, Huawei offered bonuses to employees based on the value of information they stole from other companies around the world, and provided to Huawei via an encrypted email address.
Under the maximum sentencing provisions applicable to corporate entities, Conspiracy and Attempt to Commit Trade Secret Theft are punishable by a fine of up to $5,000,000 or three times the value of the stolen trade secret, whichever is greater. Wire Fraud and Obstruction of Justice are punishable by a fine of up to $500,000.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Todd Greenberg and Thomas Woods of the Western District of Washington, with assistance from the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
U.S. Attorney Brian T. Moran has been recused from this matter because of legal representations he undertook before he joined the Department of Justice. Per direction from ethics officials in the Department of Justice, First Assistant U.S. Attorney Annette L. Hayes will act as U.S. Attorney with respect to this matter pursuant to the authority conferred by 28 U.S.C. § 515.
huawei_indictment_pacer_1.pdfChinese Telecommunications Device Manufacturer and its U.S. Affiliate Indicted for Theft of Trade Secrets, Wire Fraud, and Obstruction of JusticeRead the Press Release
A 10-count indictment unsealed today in the Western District of Washington State charges Huawei Device Co., Ltd. and Huawei Device Co. USA with theft of trade secrets conspiracy, attempted theft of trade secrets, seven counts of wire fraud, and one count of obstruction of justice. The indictment, returned by a grand jury on January 16, details Huawei’s efforts to steal trade secrets from Bellevue, Washington based T-Mobile USA and then obstruct justice when T-Mobile threatened to sue Huawei in U.S. District Court in Seattle. The alleged conduct described in the indictment occurred from 2012 to 2014, and includes an internal Huawei announcement that the company was offering bonuses to employees who succeeded in stealing confidential information from other companies.
“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes” Acting Attorney General Matthew G. Whitaker said. “As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law. I’d like to thank the many dedicated criminal investigators from several different federal agencies who contributed to this investigation and the Department of Justice attorneys who are moving the prosecution efforts forward. They are helping us uphold the rule of law with integrity.”
“The charges unsealed today clearly allege that Huawei intentionally conspired to steal the intellectual property of an American company in an attempt to undermine the free and fair global marketplace,” said FBI Director Wray. “To the detriment of American ingenuity, Huawei continually disregarded the laws of the United States in the hopes of gaining an unfair economic advantage. As the volume of these charges prove, the FBI will not tolerate corrupt businesses that violate the laws that allow American companies and the United States to thrive.”
“This indictment shines a bright light on Huawei’s flagrant abuse of the law – especially its efforts to steal valuable intellectual property from T-Mobile to gain unfair advantage in the global marketplace,” said First Assistant U.S. Attorney Annette L. Hayes of the Western District of Washington. “We look forward to presenting the evidence of Huawei’s crimes in a court of law, and proving our case beyond a reasonable doubt. Fair competition and respect for the rule of law is essential to the functioning of our international economic system.”
According to the indictment, in 2012 Huawei began a concerted effort to steal information on a T-Mobile phone-testing robot dubbed “Tappy.” In an effort to build their own robot to test phones before they were shipped to T-Mobile and other wireless carriers, Huawei engineers violated confidentiality and non-disclosure agreements with T-Mobile by secretly taking photos of “Tappy,” taking measurements of parts of the robot, and in one instance, stealing a piece of the robot so that the Huawei engineers in China could try to replicate it. After T-Mobile discovered and interrupted these criminal activities, and then threatened to sue, Huawei produced a report falsely claiming that the theft was the work of rogue actors within the company and not a concerted effort by Huawei corporate entities in the United States and China. As emails obtained in the course of the investigation reveal, the conspiracy to steal secrets from T-Mobile was a company-wide effort involving many engineers and employees within the two charged companies.
As part of its investigation, FBI obtained emails revealing that in July 2013, Huawei offered bonuses to employees based on the value of information they stole from other companies around the world, and provided to Huawei via an encrypted email address.
Under the maximum sentencing provisions applicable to corporate entities, Conspiracy and Attempt to Commit Trade Secret Theft are punishable by a fine of up to $5,000,000 or three times the value of the stolen trade secret, whichever is greater. Wire Fraud and Obstruction of Justice are punishable by a fine of up to $500,000.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Todd Greenberg and Thomas Woods of the Western District of Washington, with assistance from the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
U.S. Attorney Brian T. Moran has been recused from this matter because of legal representations he undertook before he joined the Department of Justice. Per direction from ethics officials in the Department of Justice, First Assistant U.S. Attorney Annette L. Hayes will act as U.S. Attorney with respect to this matter pursuant to the authority conferred by 28 U.S.C. § 515.
Chinese Telecommunications Conglomerate Huawei and Huawei CFO Wanzhou Meng Charged with Financial FraudRead the Press Release
BROOKLYN, N.Y. – A 13-count indictment was unsealed earlier today in federal court in Brooklyn, New York, charging four defendants,[1] all of whom are affiliated with Huawei Technologies Co. Ltd. (Huawei), the world’s largest telecommunications equipment manufacturer, with headquarters in the People’s Republic of China (PRC) and operations around the world. The indicted defendants include Huawei and two Huawei subsidiaries — Huawei Device USA Inc. (Huawei USA) and Skycom Tech Co. Ltd. (Skycom) — as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).
The defendants Huawei and Skycom are charged with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, conspiracy to defraud the United States, conspiracy to violate and substantive violations of the International Emergency Economic Powers Act (IEEPA), and conspiracy to commit money laundering. Huawei and Huawei USA are charged with conspiracy to obstruct justice related to the Grand Jury investigation in the Eastern District of New York. Meng is charged with bank fraud, wire fraud, and conspiracy to commit bank and wire fraud.
Matthew G. Whitaker, Acting United States Attorney General, Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department's Criminal Division, John C. Demers, Assistant Attorney General of the Justice Department’s National Security Division, Christopher A. Wray, Director, Federal Bureau of Investigation (FBI), Kirstjen Nielsen, Secretary, U.S. Department of Homeland Security, and Wilbur Ross, Secretary, U.S. Department of Commerce, announced the charges.
“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes,” stated Acting Attorney General Whitaker. “As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law. I’d like to thank the many dedicated criminal investigators from several different federal agencies who contributed to this investigation and the Department of Justice attorneys who are moving the prosecution efforts forward. They are helping us uphold the rule of law with integrity.”
“As charged in the indictment, Huawei and its subsidiaries, with the direct and personal involvement of their executives, engaged in serious fraudulent conduct, including conspiracy, bank fraud, wire fraud, sanctions violations, money laundering and the orchestrated obstruction of justice,” stated United States Attorney Donoghue. “For over a decade, Huawei employed a strategy of lies and deceit to conduct and grow its business. This Office will continue to hold accountable companies and their executives, whether here or abroad, that commit fraud against U.S. financial institutions and their international counterparts and violate U.S. laws designed to maintain our national security.” Mr. Donoghue thanked the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Department of Commerce Office of Export Enforcement and the Defense Criminal Investigative Service agents who are investigating this case for their tireless work and dedication.
“These charges lay bare Huawei’s blatant disregard for the laws of our country and standard global business practices,” stated FBI Director Wray. “Companies like Huawei pose a dual threat to both our economic and national security, and the magnitude of these charges make clear just how seriously the FBI takes this threat. Today should serve as a warning that we will not tolerate businesses that violate our laws, obstruct justice, or jeopardize national and economic well-being.”
“As charged in the indictment, Huawei and its Chief Financial Officer broke U.S. law and have engaged in a fraudulent financial scheme that is detrimental to the security of the United States,” stated U.S. Department of Homeland Security Secretary Nielsen. “They willfully conducted millions of dollars in transactions that were in direct violation of the Iranian Transactions and Sanctions Regulations, and such behavior will not be tolerated. The Department of Homeland Security is focused on preventing nefarious actors from accessing or manipulating our financial system, and we will ensure that legitimate economic activity is not exploited by our adversaries. I would like to thank ICE Homeland Security Investigations for their exceptional work on this case.”
“For years, Chinese firms have broken our export laws and undermined sanctions, often using the U.S. financial systems to facilitate their illegal activities,” stated U.S. Department of Commerce Secretary Ross. “This will end. The Trump Administration continues to be tougher on those who violate our export control laws than any administration in history. I commend the Department’s Office of Export Enforcement, and our partners in the FBI, Justice Department, Department of Defense, and Department of Homeland Security for their excellent work on this case.”
* * * *
Overview of the Indictment
The charges in this case relate to a long-running scheme by Huawei, its CFO, and other employees to deceive numerous global financial institutions and the United States government regarding Huawei’s business activities in Iran. Beginning in 2007, Huawei employees misrepresented Huawei’s relationship to an unofficial subsidiary in Iran called Skycom, and as a result falsely claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations related to Iran. Most significantly, after news publications in late 2012 and 2013 disclosed that Huawei operated Skycom as an unofficial subsidiary in Iran and that Meng had served on the board of directors of Skycom, Huawei employees, and in particular Meng, continued to lie to Huawei’s banking partners about Huawei’s relationship with Skycom, falsely claiming that Huawei had sold its interest in Skycom to an unrelated third party in 2007 and also that Skycom was merely Huawei’s local business partner in Iran. In reality, Skycom was Huawei’s longstanding Iranian subsidiary, and Huawei orchestrated the 2007 sale to appear as an arm’s length transaction between two unrelated parties although Huawei actually controlled the company that purchased Skycom.
As part of this scheme to defraud, Meng personally made a presentation in August 2013 to an executive of one of Huawei’s major banking partners in which she repeatedly lied about the relationship between Huawei and Skycom.
Huawei relied on its global banking partners for banking services that included processing U.S.-dollar-denominated transactions through the United States. U.S. laws and regulations generally prohibited these banks from providing U.S.-dollar transactions related to Iran through the United States. The banks could have faced civil or criminal penalties for processing transactions that violated U.S. laws or regulations. Relying on the repeated misrepresentations by Huawei, banking partners continued their banking relationships with Huawei. One banking partner cleared more than $100 million worth of Skycom-related transactions through the United States between 2010 and 2014.
As a further part of this scheme to defraud, Huawei and its principals repeatedly lied to U.S. government authorities about the relationship between Huawei and Skycom in submissions to the U.S. government, and in responses to government inquiries. For example, Huawei provided false information to the U.S. Congress regarding whether Huawei’s business in Iran violated any U.S. law. Similarly, as indicated in the indictment, in 2007 — months before Huawei orchestrated the purported sale of Skycom to another Huawei-controlled entity — Huawei’s founder falsely stated to FBI agents that Huawei did not have any direct dealings with Iranian companies and that Huawei operated in compliance with all U.S. export laws.
After one of Huawei’s major global banking partners (identified as Financial Institution 1 in the indictment) decided to exit the relationship in 2017 because of Huawei’s risk profile, Huawei allegedly made additional misrepresentations to several of its remaining banking partners in an effort to maintain and expand those relationships. Huawei and its principals are alleged to have repeatedly and falsely claimed that Huawei had decided to separate from Financial Institution 1, and not that Financial Institution 1 had decided to cause the separation. On the basis of these misrepresentations, those other banking partners continued their banking relationships with Huawei.
In 2017, when Huawei became aware of the government’s investigation, Huawei and its subsidiary Huawei USA tried to obstruct the investigation by making efforts to move witnesses with knowledge about Huawei’s Iran-based business to the PRC, and beyond the jurisdiction of the U.S. government, and by destroying and concealing evidence of Huawei’s Iran-based business that was located in the United States.
In December 2018, Canadian authorities apprehended Meng in Vancouver pursuant to a provisional arrest warrant issued under Canadian law. The U.S. government is seeking Meng’s extradition to the United States.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The indictment unsealed today is assigned to U.S. District Judge Ann M. Donnelly of the Eastern District of New York.
The government’s investigation is ongoing. Individuals and companies with information about additional misconduct by these defendants or their related entities and principals should contact their local FBI field office.
The investigation is being jointly conducted by the FBI’s New York Field Office, HSI’s New York Field Office, OEE’s New York Field Office, and DCIS’s New York Resident Agency. Agents from the FBI, HSI, OEE, and DCIS offices in Dallas provided significant support and assistance. The government’s case is being handled by the National Security and Cybercrime and Business and Securities Fraud Sections of the U.S. Attorney’s Office for the Eastern District of New York, Justice Department’s Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Justice Department’s National Security Division’s Counterintelligence and Export Control Section (CES).
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler, Kaitlin Farrell, and Sarah Evans, MLARS Trial Attorneys Laura Billings and Christian Nauvel, and CES Trial Attorneys Thea D. R. Kendler and David Lim are in charge of the prosecution, with assistance provided by Assistant U.S. Attorney Mark Penley of the Northern District of Texas, Assistant U.S. Attorneys Brian Morris and Brendan King of the Eastern District of New York’s Civil Division and Trial Attorneys Andrew Finkelman and Margaret O’Malley of DOJ’s Office of International Affairs. Additional Criminal Division and National Security Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Northern District of Texas, the Eastern District of Texas, and the Northern District of California have provided valuable assistance with various aspects of this investigation.
The Defendants:
Huawei Technologies Co. Ltd.
Huawei Device USA Inc.
Skycom Tech Co. Ltd.
Meng Wanzhou, also known as “Cathy Meng” and “Sabrina Meng”
Age: 46Residence: People’s Republic Of China
E.D.N.Y. Docket No. 18-CR-457 (AMD)
[1] The indictment charges other individuals who have not yet been apprehended and whose names will not be publicly released at this time.
Chinese Telecommunications Conglomerate Huawei and Huawei CFO Wanzhou Meng Charged with Financial FraudRead the Press Release
Huawei Device USA Inc. and Huawei’s Iranian Subsidiary Skycom Also Named Defendants
Other Charges Include Money Laundering, Conspiracy to Defraud the United States, Obstruction of Justice and Sanctions Violations
A 13-count indictment was unsealed earlier today in federal court in Brooklyn, New York, charging four defendants,[1] including Huawei Technologies Co. Ltd. (Huawei), the world’s largest telecommunications equipment manufacturer, with headquarters in the People’s Republic of China (PRC) and operations around the world. The indicted defendants include Huawei and two Huawei affiliates — Huawei Device USA Inc. (Huawei USA) and Skycom Tech Co. Ltd. (Skycom) — as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).
The defendants Huawei and Skycom are charged with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, violations of the International Emergency Economic Powers Act (IEEPA) and conspiracy to violate IEEPA, and conspiracy to commit money laundering. Huawei and Huawei USA are charged with conspiracy to obstruct justice related to the grand jury investigation in the Eastern District of New York. Meng is charged with bank fraud, wire fraud, and conspiracies to commit bank and wire fraud.
Acting U.S. Attorney General Matthew G. Whitaker, Secretary Kirstjen Nielsen of the U.S. Department of Homeland Security, Secretary Wilbur Ross of the U.S. Department of Commerce, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, FBI Director Christopher A. Wray, Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division and Assistant Attorney General John C. Demers of the National Security Division, announced the charges.
“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes," said Acting Attorney General Whitaker. "As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law. I’d like to thank the many dedicated criminal investigators from several different federal agencies who contributed to this investigation and the Department of Justice attorneys who are moving the prosecution efforts forward. They are helping us uphold the rule of law with integrity.”
“As charged in the indictment, Huawei and its Chief Financial Officer broke U.S. law and have engaged in a fraudulent financial scheme that is detrimental to the security of the United States,” said Secretary Nielsen. “They willfully conducted millions of dollars in transactions that were in direct violation of the Iranian Transactions and Sanctions Regulations, and such behavior will not be tolerated. The Department of Homeland Security is focused on preventing nefarious actors from accessing or manipulating our financial system, and we will ensure that legitimate economic activity is not exploited by our adversaries. I would like to thank ICE Homeland Security Investigations for their exceptional work on this case.”
“For years, Chinese firms have broken our export laws and undermined sanctions, often using U.S. financial systems to facilitate their illegal activities,” said Secretary Ross. “This will end. The Trump Administration continues to be tougher on those who violate our export control laws than any administration in history. I commend the Commerce Department’s Office of Export Enforcement, and our partners in the FBI, Justice Department, Department of Defense, and Department of Homeland Security for their excellent work on this case.”
“As charged in the indictment, Huawei and its subsidiaries, with the direct and personal involvement of their executives, engaged in serious fraudulent conduct, including conspiracy, bank fraud, wire fraud, sanctions violations, money laundering and the orchestrated obstruction of justice,” stated U.S. Attorney Donoghue. “For over a decade, Huawei employed a strategy of lies and deceit to conduct and grow its business. This Office will continue to hold accountable companies and their executives, whether here or abroad, that commit fraud against U.S. financial institutions and their international counterparts and violate U.S. laws designed to maintain our national security.” Mr. Donoghue thanked the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), U.S. Department of Commerce Office of Export Enforcement (OEE) and the Defense Criminal Investigative Service (DCIS) agents who are investigating this case for their tireless work and dedication.
“These charges lay bare Huawei’s alleged blatant disregard for the laws of our country and standard global business practices,” said FBI Director Wray. “Companies like Huawei pose a dual threat to both our economic and national security, and the magnitude of these charges make clear just how seriously the FBI takes this threat. Today should serve as a warning that we will not tolerate businesses that violate our laws, obstruct justice, or jeopardize national and economic well-being.”
* * * *
Overview of the Indictment
The charges in this case relate to a long-running scheme by Huawei, its CFO, and other employees to deceive numerous global financial institutions and the U.S. government regarding Huawei’s business activities in Iran. As alleged in the indictment, beginning in 2007, Huawei employees lied about Huawei’s relationship to a company in Iran called Skycom, falsely asserting it was not an affiliate of Huawei. The company further claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations related to Iran. Most significantly, after news publications in late 2012 and 2013 disclosed that Huawei operated Skycom as an unofficial affiliate in Iran and that Meng had served on the board of directors of Skycom, Huawei employees, and in particular Meng, continued to lie to Huawei’s banking partners about Huawei’s relationship with Skycom. They falsely claimed that Huawei had sold its interest in Skycom to an unrelated third party in 2007 and that Skycom was merely Huawei’s local business partner in Iran. In reality, Skycom was Huawei’s longstanding Iranian affiliate, and Huawei orchestrated the 2007 sale to appear as an arm’s length transaction between two unrelated parties, when in fact Huawei actually controlled the company that purchased Skycom.
As part of this scheme to defraud, Meng allegedly personally made a presentation in August 2013 to an executive of one of Huawei’s major banking partners in which she repeatedly lied about the relationship between Huawei and Skycom.
According to the indictment, Huawei relied on its global banking relationships for banking services that included processing U.S.-dollar transactions through the United States. U.S. laws and regulations generally prohibited these banks from processing transactions related to Iran through the United States. The banks could have faced civil or criminal penalties for processing transactions that violated U.S. laws or regulations. Relying on the repeated misrepresentations by Huawei, these banks continued their banking relationships with Huawei. One bank cleared more than $100 million worth of Skycom-related transactions through the United States between 2010 and 2014.
In furtherance of this scheme to defraud, and as alleged in the indictment, Huawei and its principals repeatedly lied to U.S. government authorities about Huawei’s business in Iran in submissions to the U.S. government, and in responses to government inquiries. For example, Huawei provided false information to the U.S. Congress regarding whether Huawei’s business in Iran violated any U.S. law. Similarly, as indicated in the indictment, in 2007 — months before Huawei orchestrated the purported sale of Skycom to another Huawei-controlled entity — Huawei’s founder falsely stated to FBI agents that Huawei did not have any direct dealings with Iranian companies and that Huawei operated in compliance with all U.S. export laws.
After one of Huawei’s major global banking partners (identified as Financial Institution 1 in the indictment) decided to exit the Huawei relationship in 2017 because of Huawei’s risk profile, Huawei allegedly made additional misrepresentations to several of its remaining banking partners in an effort to maintain and expand those relationships. Huawei and its principals are alleged to have repeatedly and falsely claimed that Huawei had decided to terminate its banking relationship with Financial Institution 1, when in fact it was Financial Institution 1 that had decided to terminate the banking relationship. Through these misrepresentations, Huawei was able to continue its banking relationships with its other banks.
In 2017, when Huawei became aware of the government’s investigation, Huawei and its subsidiary Huawei USA allegedly tried to obstruct the investigation by making efforts to move witnesses with knowledge about Huawei’s Iran-based business to the PRC, and beyond the jurisdiction of the U.S. government, and by concealing and destroying evidence of Huawei’s Iran-based business that was located in the United States.
In December 2018, Canadian authorities apprehended Meng in Vancouver pursuant to a provisional arrest warrant issued under Canadian law. The U.S. government is seeking Meng’s extradition to the United States.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The indictment unsealed today is assigned to U.S. District Judge Ann M. Donnelly of the Eastern District of New York.
The government’s investigation is ongoing.
The investigation is being jointly conducted by the FBI’s New York Field Office, HSI’s New York Field Office, OEE’s New York Field Office, and DCIS’s Southwest and Northeast Field Offices. Agents from the FBI, HSI, and OEE offices in Dallas provided significant support and assistance. The government’s case is being handled by the National Security and Cybercrime and Business and Securities Fraud Sections of the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department’s Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and the Justice Department’s National Security Division’s Counterintelligence and Export Control Section (CES).
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler, Kaitlin Farrell, and Sarah Evans, MLARS Trial Attorneys Laura Billings and Christian Nauvel, and CES Trial Attorneys Thea D. R. Kendler and David Lim are in charge of the prosecution, with assistance provided by Assistant U.S. Attorney Mark Penley of the Northern District of Texas, Assistant U.S. Attorneys Brian Morris and Brendan King of the Eastern District of New York’s Civil Division and Trial Attorneys Andrew Finkelman and Margaret O’Malley of DOJ’s Office of International Affairs. Additional Criminal Division and National Security Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Northern District of Texas, the Eastern District of Texas, and the Northern District of California have provided valuable assistance with various aspects of this investigation.
The Defendants:
Huawei Technologies Co. Ltd.
Huawei Device USA Inc.
Skycom Tech Co. Ltd.
Meng Wanzhou, also known as “Cathy Meng” and “Sabrina Meng”
Age: 46Residence: People’s Republic Of China
E.D.N.Y. Docket No. 18-CR-457 (AMD)
[1] The indictment charges other individuals who have not yet been apprehended and whose names will not be publicly released at this time.