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24 January 2019
Berkeley County man admits to filing false tax returnRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jay D. Dehaven, of Hedgesville, West Virginia, has admitted to filing a false tax return, United States Attorney Bill Powell announced.
Dehaven, age 39, pled guilty to one count of “Filing False Income Tax Return.” Dehaven admitted to understating his income by more than $136,000, resulting in an unpaid tax of more than $50,000. The crime took place in October 2016 in Berkeley County.Dehaven faces up to 10 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.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Internal Revenue Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
A Monongalia County man sentenced for firearms conspiracy chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tommy Calhoun, of Morgantown, West Virginia, was sentenced to 12 months incarceration for his involvement in an illegal firearms operation, United States Attorney Bill Powell announced.
Calhoun, age 53, pled guilty to one count of “Conspiracy to Violate Federal Firearms Laws” in May 2018. Calhoun admitted to being involved in a conspiracy that included making false statements to purchase firearms, trading firearms for controlled substances, and transporting and selling the firearms in New York. The crime occurred in Morgantown, Monongalia County and elsewhere from May 2017 to June 2017.
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 Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
23 January 2019
Walgreen Co. Agrees to Pay $3.5 Million to Settle Allegations Under the False Claims ActRead the Press Release
United States Attorney Matthew D. Krueger announced today that Walgreen Co. (“Walgreens”) has agreed to pay $3.5 million to the United States and the State of Wisconsin to settle allegations that Walgreens violated the False Claims Act by submitting claims to Medicaid for stimulant medications without complying with Medicaid rules designed to ensure that stimulants are dispensed for appropriate medical treatment.
Walgreens operates retail pharmacies throughout Wisconsin. The Wisconsin Medicaid program will reimburse a pharmacy for dispensing certain stimulant medications only if the pharmacy first verifies with the prescribing physician that the physician prescribed the stimulant for medically appropriate treatment, such as treatment for attention deficient disorder. The False Claims Act prohibits a pharmacy from knowingly submitting claims for payment for medications in violation of Medicaid’s rules.
The United States and the State of Wisconsin allege that, from 2011 through 2014, Walgreens violated Wisconsin Medicaid rules by dispensing routinely stimulant medications to Wisconsin Medicaid beneficiaries without first verifying that the prescribing physician ordered the medication for medically appropriate treatment. The United States and the State of Wisconsin further allege that, by failing to verify that medications were prescribed for appropriate treatment, Walgreens dispensed and billed Wisconsin Medicaid for medically unnecessary medications.
“Pharmacies play an important gate-keeping role in the Medicaid program to ensure that the millions of dollars spent each year on prescription medications buy drugs that are medically necessary,” stated United States Attorney Krueger. “This settlement demonstrates that the Department of Justice will hold pharmacies accountable.”
“The dispensing of medications of any kind needs to be done following all protocols and with proper verification to ensure the medical necessity of the treatment,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “This settlement includes an OIG Corporate Integrity Agreement that contains requirements, such as multi-site claims reviews to be conducted by an Independent Review Organization, that seek to aid adherence to Federal health care program rules. The OIG will continue to work with our federal, state and local partners to protect the health and safety of Medicaid patients and vital taxpayer dollars.”
“The Federal Bureau of Investigation prioritizes the protection of consumers and will continue to hold accountable healthcare providers who misuse the Medicaid program,” said FBI Special Agent-in-Charge Justin Tolomeo. “This $3.5 million settlement shows that violations of Medicaid rules have a significant impact on the healthcare industry and taxpayer funds.”
Although the U.S. Attorney’s Office generally is not issuing press releases during the current lapse in appropriations, this announcement is being made because the settlement falls under the same Corporate Integrity Agreement that was recently announced in relation to cases being settled in the Southern District of New York. See https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-announces-2692-million-recovery-walgreens-two-civil-healthcare. The investigation resulted from whistleblower lawsuits filed under the qui tam provisions of the False Claims Act. Consequently, the whistleblowers will recover a share of the settlement amount. As part of the settlement, the United States, the State of Wisconsin, and the whistleblowers asked the district court to dismiss the qui tam complaint.
Assistant United States Attorney Michael Carter represented the government in this matter. The FBI, OIG, and the Wisconsin Department of Justice Medicaid Fraud Control & Elder Abuse Unit assisted in the investigation. The settlement agreement states allegations only; Walgreens does not admit liability for the allegations.
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For Additional Information Contact:
Public Information Officer Kenneth B. Gales 414-297-1700
Three Sentenced for Conspiring to Provide Illegal Big Game Hunts in Wrangell-St. Elias National Park and PreserveRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Casey Richardson, 48, of Huson, Montana, Jeffrey Harris, 45, of Bainbridge Island, Washington, and Dale Lackner, 74, of Haines, Alaska, were sentenced Friday, Jan. 18, 2019, in federal court to five years of probation for violations of the Lacey Act and other federal laws.
As part of their sentence, Richardson was also ordered to pay $14,000 in restitution, Harris was ordered to pay $26,000 in restitution, and Lackner was ordered to pay $6,000 in restitution. Restitution was to be made to the Department of Interior Restoration Fund on behalf of the National Park Service, and to the State of Alaska. The defendants are prohibited from any hunting or to assist in any hunting for the five years of probation. They were each ordered to perform over 100 hours of community service, and assist in providing and paying for public service announcements which would include a statement about the importance of understanding and following hunting laws and regulations. In addition, Richardson and Harris were each sentenced to serve three months in a halfway house followed by three months of home confinement, and Lackner was sentenced to six months of home confinement. During the periods of home confinement, the defendants will be on electronic monitoring.
The three men previously pleaded guilty to several violations of the Lacey Act and other federal laws. Richardson pleaded guilty to one count of misdemeanor Conspiracy to violate the Lacey Act and two counts felony Conspiracy to violate the Lacey Act. Harris pleaded guilty to one count felony Conspiracy to violate the Lacey Act, one count felony Lacey Act False Record, one count False Statements, and one count Conspiracy to Use Substance to Incapacitate Game. Lackner pleaded guilty to one count misdemeanor Conspiracy to violate the Lacey Act and one count Lacey Act False Record.
According to court documents, a federal investigation was launched in December 2015 after an anonymous letter was received by the State of Alaska Wildlife Troopers, Wildlife Investigations Unit. The letter indicated illegal hunting activities were occurring at Ptarmigan Lake Lodge (PLL), which is located within Wrangell-St. Elias National Park and Preserve, Alaska. PLL is owned by Urban Rahoi and was permitted to operate as a concessionaire within Wrangell-St. Elias National Park and Preserve to provide sport hunting guide services. Richardson and Harris are not Alaska residents nor registered guides. Lackner is an Alaska resident and was a registered guide beginning in 2015.
During the 2014 and 2015 hunting seasons, out-of-state hunters illegally hunted and killed Dall Sheep at PLL without being accompanied by a registered guide. In 2014, Harris guided an out-of-state hunter at PLL, with the hunter harvesting a Dall Sheep. Harris falsified the hunt record indicating the hunt was conducted by a registered guide. In 2014, at PLL, Harris harvested two brown bears without a guide present and without possessing a harvest ticket or locking tag for either bear. One of the brown bears was harvested out of season and the hunt record was falsified. Also in 2014, Richardson conspired with Lackner to harvest a Dall Sheep at PLL. Lackner falsified the State of Alaska Sheep Harvest Report indicating he harvested the sheep and later transported the sheep to Montana, to Richardson.
In 2015, Richardson guided three out-of-state hunters, on three separate hunts at PLL. All three hunters harvested Dall Sheep. Harris falsified two of the hunt records indicating the hunts were conducted by registered guides. Lackner falsified the third hunt record indicating that hunt was conducted by a registered guide.
In 2014 and 2015, multiple illegal bait site locations were determined to be maintained by PLL and not registered with the State of Alaska. Xylitol, an artificial sweetener which is toxic to canines and birds, was used at the unlawful bait sites to poison wolves and bears.
On July 5, 2016, the National Park Service suspended Urban Rahoi’s concession contract pending the outcome of the criminal investigation and directed Urban Rahoi to refund all hunt clients that may have been booked for 2016 and 2017 hunt seasons. Urban Rahoi was issued a Federal Violation Notice for an unregistered bait site, surrendered his State of Alaska guide/outfitter license, and made a donation to the National Park Foundation. Justin Field, of Team Fate Outdoors, was issued a Federal Violation Notice for unlawful commercial filming, without a permit, of a 2015 Dall Sheep hunt.
The U.S. Fish and Wildlife Service, the National Park Service, the State of Alaska Wildlife Troopers, and the Montana Department of Fish, Wildlife and Parks conducted the investigation. This case was prosecuted by Assistant U.S. Attorney Retta Randall.
Three Men Charged in ‘Swatting’ Schemes in which Admitted Hoax-Maker Targeted Individuals, Schools and a Convention CenterRead the Press Release
LOS ANGELES – Three men allegedly conspired with admitted “swatter” Tyler Rai Barriss to make hoax reports of bombs and murders to police departments, high schools and a convention center across the United States, according to three indictments unsealed today.
The three new cases allege that the men agreed with Barriss to make false reports of explosives and armed individuals to generate a law enforcement response that was intended to harass and intimidate their targets and to evacuate public buildings.
Special agents with the FBI this morning arrested two of the defendants, and a third has agreed to surrender to federal authorities in Los Angeles.
Those charged in the indictments unsealed today are:
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Neal Patel, 23, of Des Plaines, Illinois, also known by his Twitter handles @internetlord and @defeat, who was arrested this morning;
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Tyler Stewart, 19, of Gulf Breeze, Florida, also known by his Twitter handle @tragic, who was arrested this morning; and
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Logan Patten, 19, of Greenwood, Missouri, also known by his Twitter handle @spared, who has agreed to surrender.
The three defendants are charged in separate indictments with conspiracy and conveying false information concerning the use of an explosive device.
“Swatting,” according to the indictments, is “the action or practice of harassing a victim by deceiving an emergency service into sending police and emergency service response teams, including special weapons and tactics (SWAT) teams, to the victim’s address, often by making a false report of a serious law enforcement emergency – such as a murder or hostage situation – at the victim’s address to trigger the deployment of the response team.”
Patel allegedly conspired with Barriss over several days in early December 2017 to make false police reports to law enforcement authorities in Milford, Connecticut. The pair also conspired to make a false bomb threat targeting a video game convention in Dallas, Texas, according to the indictment. Patel also faces bank fraud charges for allegedly using unauthorized credit card numbers to purchase items of clothing for Barriss.
Stewart is charged with conspiring with Barriss to cause the evacuation of a high school in Gurnee, Illinois by making two false bomb threats in early December 2017. In the second incident, Barriss allegedly called the Gurnee Police Department, claimed the explosives had been left in a high school classroom, and stated he was high on methamphetamine and was considering shooting teachers and students.
Patten is charged with hiring Barriss, also in December 2017, to swat individuals by making false reports to the Indianapolis (Indiana) Metropolitan Police Department and the Hamilton County (Ohio) Sheriff’s Department. Patten also allegedly schemed with Barriss to swat a high school in Lee’s Summit, Missouri, at the direction of an uncharged juvenile. In this case, Patten is also charged with making threats to injure in interstate commerce.
Patel and Stewart are expected to make initial court appearances where they were arrested today in the Northern District of Illinois and the Northern District of Florida.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Barriss pleaded guilty on November 13 to a total of 51 charges brought by federal prosecutors in Los Angeles, Kansas, and Washington, D.C. His sentencing in United States District Court in Wichita, Kansas, is scheduled for March 1. Pursuant to a plea agreement, Barriss has agreed to serve a sentence of 20 to 25 years in federal prison.
The charge of conspiracy carries a statutory maximum sentence of five years in federal prison and the charge of conveying false information concerning the use of explosive device carries a statutory maximum penalty of 10 years in prison.
The charge of making threats to injure in interstate commerce carries a statutory maximum penalty of five years in federal prison.
The two bank fraud charges alleged against Patel each carry up to 30 years in federal prison.
The investigation into the swatting incidents is being conducted by the Federal Bureau of Investigation.
The cases announced today are being prosecuted by Assistant United States Attorney George E. Pence of the Terrorism and Export Crimes Section.
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Second Former Honduran Mayor Charged with Conspiring to Import Cocaine into the United States and Related Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Christopher Tersigni, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that charges have been filed in Manhattan federal court against former Honduran mayor Amilcar Alexander Ardon Soriano and, in a separate Superseding Indictment, Mario Jose Calix Hernandez. The charges in each indictment include conspiring to import cocaine into the United States and related weapons offenses involving the use and possession of machineguns and destructive devices. The United States is seeking the defendants’ extraditions from Honduras and Guatemala.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Amilcar Alexander Ardon Soriano and Mario Jose Calix Hernandez each conspired to import massive quantities of cocaine into the U.S. and used heavy weaponry to protect drug shipments. Ardon Soriano allegedly used his position as a Honduran mayor to facilitate his own drug trafficking, and to exact a ‘tax’ on other traffickers, making millions of dollars in the process. Thanks to the DEA, both men now face criminal charges in the U.S.”
As alleged in the Indictments filed in federal court:[1]
From at least in or about 2004, up to and including in or about 2016, multiple drug-trafficking organizations in Honduras and elsewhere worked together, and with support from certain prominent public and private individuals, including Honduran politicians and law enforcement officials, to receive multi-ton loads of cocaine sent to Honduras from, among other places, Colombia via air and maritime routes, and to transport the drugs westward in Honduras toward the border with Guatemala and eventually to the United States. For protection from official interference, and in order to facilitate the safe passage through Honduras of multi-hundred-kilogram loads of cocaine, drug traffickers paid bribes to public officials, including certain mayors and members of the National Congress of Honduras.
Ardon Soriano was previously the mayor of El Paraíso, Copán, in Honduras. Between approximately 2000 and approximately 2015, including at times while acting as mayor of El Paraíso, ARDON SORIANO engaged in large-scale drug trafficking activities with traffickers located in, among other places, Colombia, Honduras, Guatemala, and Mexico. Ardon Soriano is the second former Honduran mayor charged in the Southern District of New York with crimes related to drug trafficking. In July 2018, Arnaldo Urbina Soto, the former mayor of Yoro, Honduras, was charged in a separate Indictment with conspiring to import cocaine into the United States and related firearms offenses. See United States v. Urbina Soto, et al., 18 Cr. 497 (DLC).
As alleged in the Indictment, ARDON SORIANO participated in processing, receiving, transporting, and distributing large loads of cocaine that arrived in Honduras via planes and go-fast vessels. In Honduras, ARDON SORIANO had access to at least one cocaine laboratory as well as a clandestine airstrip that was used to receive cocaine-laden aircraft dispatched from South America. ARDON SORIANO and others participated in providing heavily armed security for cocaine shipments transported within Honduras, including by members of the Honduran National Police and drug traffickers armed with, among other weapons, machineguns. ARDON SORIANO also leveraged his power in El Paraíso by charging a per-kilogram tax on cocaine transported by other traffickers through the area that he controlled. As a result of these illegal activities, ARDON SORIANO earned millions of dollars from the distribution and sale of the cocaine that he worked with others to import into the United States. ARDON SORIANO used some of the drug proceeds to fund political campaigns in Honduras for himself and one or more of his associates.
As alleged in a separate Superseding Indictment, between in or about 2005 and in or about 2016, CALIX HERNANDEZ participated in large-scale drug trafficking with traffickers located in, among other places, Colombia, Honduras, Guatemala, and Mexico. Like ARDON SORIANO, CALIX HERNANDEZ and others participated in providing heavily armed security for cocaine shipments transported within Honduras, including by members of the Honduran National Police and drug traffickers armed with, among other weapons, machineguns. CALIX HERNANDEZ’s co-defendant and alleged co-conspirator is Juan Antonio Hernandez Alvarado, a/k/a “Tony Hernandez,” a former member of the National Congress of Honduras and the brother of the current president of Honduras. On November 23, 2018, Hernandez Alvarado was arrested in Miami. He was subsequently brought to the Southern District of New York and faces the same drug trafficking and firearms charges as CALIX HERNANDEZ as well as an additional charge of making false statements to U.S. federal agents.
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ARDON SORIANO, 43, a citizen of Honduras, is charged in three counts: (1) conspiring to import cocaine into the United States, (2) using and carrying machineguns and destructive devices during, and possessing machineguns and destructive devices in furtherance of, the cocaine importation conspiracy, and (3) conspiring to use and carry machineguns and destructive devices during, and to possess machineguns and destructive devices in furtherance of, the cocaine importation conspiracy.
CALIX HERNANDEZ, 36, a citizen of Honduras, is charged in three counts in a separate Superseding Indictment: (1) conspiring to import cocaine into the United States, (2) using and carrying machineguns and destructive devices during, and possessing machineguns and destructive devices in furtherance of, the cocaine importation conspiracy, and (3) conspiring to use and carry machineguns and destructive devices during, and to possess machineguns and destructive devices in furtherance of, the cocaine importation conspiracy.
If convicted, ARDON SORIANO and CALIX HERNANDEZ each face a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison on Count One, a mandatory minimum sentence of 30 years in prison and a maximum term of life in prison on Count Two, and a maximum term of life on Count Three.
The maximum potential sentences in these cases are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Berman praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs and the U.S. Attorney’s Offices for the Eastern District of Virginia and the Southern District of Florida.
These cases are being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Mathew J. Laroche are in charge of the prosecutions.
The charges contained in the Indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment charging Ardon Soriano, and the separate Superseding Indictment charging Calix Hernandez, as well as the descriptions of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Monongalia County woman sentenced for drug distribution chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jayla Shade, of Morgantown, West Virginia, was sentenced today to six months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Shade, age 22, pled guilty to one count of “Unlawful Use of Communication Facility” in December 2017. Shade admitted to using a phone to distribute and assist in a conspiracy to distribute oxycodone. The crime occurred in Monongalia County in February 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Maryland man indicted on drug and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph Tyree Ryles, of Baltimore, Maryland, was indicted on drug and firearms charges, United States Attorney Bill Powell announced.
Ryles, age 29, was indicted on one count of “Unlawful Possession of a Firearm,” one count of “Distribution of Controlled Substance,” and one count of “Possession of a Firearm in Futherance of a Drug Trafficking Crime.” Ryles, having previously been convicted of crimes in the Circuit Court of Baltimore City, Maryland, is accused of illegally possessing a 9mm pistol and a .40 caliber pistol, and is also accused of exchanging said firearms for heroin in August 2015 in Jefferson County.
Ryles faces up to 10 years incarceration and a fine of up to $250,000 for unlawful possession count, and faces a mandatory minimum of five years incarceration and a fine of up to $250,000 for the furtherance count, and faces up to 20 years incarceration and a fine of up to $1,000,000 for the heroin count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jackson County Man Pleads Guilty to Illegal Possession of Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss – Ronreco Lashawn Broughton, 38, of Moss Point, Mississippi, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
From December 2017 through February 2018, Broughton sold small quantities of drugs, including methamphetamine, Xanax bars, and marijuana, along with 8 firearms to the Jackson County MET Team and ATF. He was previously convicted of felony possession of a controlled substance in Pearl River County and felony possession of a controlled substance in Jackson County.
Broughton will be sentenced by Judge Guirola on April 23, 2019, at 1:30 p.m. He faces a maximum penalty of 10 years in prison and a 250,000 fine.
This case was investigated by the Jackson County MET Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Annette Williams.
Four Convicted Felons Plead Guilty or Sentenced in Albany on Gun ChargesRead the Press Release
ALBANY – Four defendants in four unique cases entered guilty pleas or were sentenced in Project Safe Neighborhoods related cases today, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Project Safe Neighborhood (PSN) is a Department of Justice initiative to partner with local law enforcement to reduce violent crime rates, remove guns from the hands of convicted felons and ultimately make communities safer. In the Middle District of Georgia, the federal prosecutions of gun crimes increased by 25% in 2018 over 2017.
The four defendants are as follows:
Rontavis Davis, 39, of Albany, Georgia, was sentenced to 120 months and three years supervised release by the Honorable Leslie Gardner on one count of Possession of a Firearm by a Convicted Felon. According to the plea agreement, drugs and a pistol were found on Mr. Davis during a routine traffic stop in Dougherty County in February 2018. Mr. Davis was previously convicted of Theft by Receiving Stolen Property and Forgery on June 13, 1997, Child Molestation on May 5, 1997, Possession of Cocaine with Intent to Distribute and Possession of a Firearm by a Convicted Felon on August 1, 2002, Possession of Cocaine on August 20, 2007, Failure to Register as a Sex Offender on August 20, 2007, and Possession of Marijuana with Intent to Distribute on September 13, 2013, all cases in Dougherty County Superior Court. Assistant U.S. Attorney Leah McEwen is prosecuting this case for the Government.
Isiah Price, 28, of Dawson, GA, was sentenced to 48 months and three years supervised release by the Honorable Leslie Gardner on one count of Possession of a Firearm by a Convicted Felon. According to the indictment, Mr. Price was illegally in possession of a 9mm caliber handgun. A police report reveals that the handgun was found in Mr. Price’s possession during the investigation of an aggravated assault. Mr. Price was previously convicted of the felony offense of Theft by Taking Motor Vehicle in Terrell County Superior Court. Assistant U.S. Attorney Alan Dasher is prosecuting this case for the Government.
LaFabian Savage, 23, of Cordele, GA, was sentenced to 30 months and three years supervised release by the Honorable Leslie Gardner on one count of Possession of a Firearm by a Convicted Felon and one count of Possession of Marijuana with the Intent to Distribute. According to the plea agreement, Mr. Savage fled from police on foot when law enforcement officers were attempting to execute a warrant at a Cordele business in January 2017. When Mr. Savage was apprehended, he had two bags of marijuana weighing a total of 51 grams, scales and a loaded revolver. Mr. Savage was previously convicted of Theft by Taking in Crisp County Superior Court. Assistant U.S. Attorney Alan Dasher is prosecuting this case for the Government.
Kenneth Diamond Fountain, 28, of Valdosta, GA entered a guilty plea before the Honorable Louis Sands on one count of Possession of a Firearm by a Convicted Felon. According to the plea agreement, Mr. Fountain was arrested on April 5, 2018 in Valdosta on two violent felony warrants, Aggravated Assault with a Deadly Weapon and Possession of Firearm or Knife During the Commission or Attempt to Commit Certain Felonies. These charges stem from an assault with a handgun on June 24, 2017 in which Mr. Fountain was allegedly the shooter, and authorities had been searching for Mr. Fountain since the incident. While a fugitive, there were a series of shootings in which Mr. Fountain was mentioned as a person of interest. Mr. Fountain was previously convicted of Assault with a Deadly Weapon in Lowndes County Superior Court. Assistant U.S. Attorney Julia Bowen is prosecuting this case for the Government.
“Guns do not belong in the hands of criminals, and as evidenced by the number of gun-related federal prosecutions in Albany today, law enforcement in our communities are relentless in their pursuit of stopping criminal activity by repeat felons,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “Reducing violent crime is a priority for this Office, and we will continue to be ready to assist our local law enforcement partners in this mutual goal.”
“I appreciate the fact we have the teeth with a felony prosecution to go after the most dangerous people in our community who carry armed weapons,” said Greg Edwards, District Attorney for the Dougherty Judicial Circuit (Albany). “These are convicted felons, with guns, and it is vital to take away guns from people that shouldn’t have them. Convicted felons with guns will get serious time, and I hope this message sinks in for those out there who want to break the law.”
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former Harrison Police Chief Pleads Guilty to Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that ANTHONY MARRACCINI pled guilty today to tax evasion before U.S. District Judge Kenneth M. Karas in White Plains federal court.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, former Harrison Police Chief Anthony Marraccini failed to report more than $2.5 million he earned through his ownership of a construction company and several rental properties. At a time when he was the top law enforcement officer in Harrison, Marraccini broke the law and evaded more than $780,000 in income taxes. Sworn officers of the law should be held to a higher standard. At a bare minimum, they should be expected to obey the law.”
IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said: “As the Chief of Police for the Town of Harrison, Anthony Marraccini held a position of trust in the eyes of the public. That trust was broken when he decided to commit a serious tax felony. The laws of the land apply to everybody, regardless of position or power. IRS-CI special agents will continue their work to ensure that everybody pays their fair share.”
According to the allegations contained in the Information:
During the relevant time period of 2011 to 2016, MARRACCINI was the Chief of Police for the Town of Harrison, New York. MARRACCINI also owned and operated Coastal Construction Associates LLC (“Coastal Construction”), a construction business, and was also employed as a salesperson for two title companies. In addition, MARRACCINI owned several residential rental properties. MARRACCINI reported some of Coastal Construction’s revenue and expenses, and the rental income from some of his rental properties, on his personal federal income tax return.
MARRACCINI failed to report all of Coastal Construction’s revenue on his income tax returns from 2011 through 2016. Instead, he deposited some checks Coastal Construction received for construction work into his personal bank accounts. He also cashed some checks Coastal Construction received at a check cashing service and kept the cash for his personal use. In some instances, MARRACCINI deposited checks Coastal Construction received into Coastal Construction’s bank accounts but took portions of the deposits as cash, thus reducing the amounts of the deposits on Coastal Construction’s bank account statements. MARRACCINI then falsely represented to his tax return preparers that Coastal Construction’s bank account statements showed the vast majority of the company’s revenue for each year.
MARRACCINI failed to report more than $2.3 million in revenue for Coastal Construction for the tax years 2011 through 2016.
MARRACCINI also failed to report a total of more than $199,800 in rents received from two rental homes he owned in Purchase, New York, from 2011 through 2015. In addition, MARRACCINI failed to report $24,500 in rents he received from a rental home he owned in Rye, New York, in 2013 and 2014.
In total, MARRACCINI failed to report more than $2.5 million in revenue from Coastal Construction and the rental properties, thereby evading more than $782,000 in federal income tax from 2011 through 2016.
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MARRACCINI, 54, of West Harrison, New York, pled guilty to one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.
MARRACCINI is scheduled to be sentenced by Judge Karas on May 16, 2019.
Mr. Berman praised the outstanding investigative work of the IRS-CI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Federal Grand Jury Indicts Man for Illegal Possession of a Firearm and DrugsRead the Press Release
A federal grand jury has indicted Demetrius O. Ward, 42, for Felon in Possession of a Firearm and Possession of a Controlled Substance in connection with his illegal possession of a stolen, loaded 9mm Taurus handgun and a bag of heroin, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft, announced today. Documents filed in the U.S. District Court allege that Ward was found to be in possession of a loaded firearm and baggie of heroin after he fled from a St. Clair County Sheriff’s Deputy and crashed into a pole on January 19, 2019.
Felon in Possession of a Firearm carries a maximum penalty of 10 years in prison, up to three years of supervised release, and a fine up to $250,000. If convicted of the drug offense, Ward faces up to a year in prison and a $1,000 fine.
"I recognize that we live in a time, and in a region, where officer-involved shootings are flashpoints that are capable of sparking extremely emotional reactions," said United States Attorney Steven D. Weinhoeft. "In moments like these, it is particularly important to calmly and objectively assess the facts to separate right from wrong."
US Attorney Weinhoeft continued, "The facts in this case show that Demetrius Ward created an incredibly dangerous situation by crashing his car while speeding away from the police, and then fleeing on foot, before reaching for a stolen .9 mm handgun in front of an officer who was forced to make a decision that no police officer should have to make. Thankfully, no one was killed. But the case reminds us why it is important to deter people from unlawfully possessing and using firearms, and of the dangers faced by the men and women in law enforcement who put their personal safety at risk on every shift to keep the rest of us safe."
This case was brought 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.
This prosecution is the result of a collaborative investigation by the St. Clair County Sheriff’s Department, the Illinois States Police and the Federal Bureau of Investigation.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Falls City Man Sentenced on Child Pornography ChargesRead the Press Release
United States Attorney Joe Kelly announced that Corey J. Hayes, 32, formerly of Falls City, Nebraska, was sentenced today in Lincoln, Nebraska, to 9 1/2 years in prison by Chief United States District Judge John M. Gerrard, for receipt and distribution of child pornography. After serving his prison sentence, Hayes will be required to be on supervised release for 10 years and register as a sex offender.
In December of 2015, an undercover agent with the Department of Homeland Security was conducting undercover investigations on a chat site wherein a chat was initiated. During the course of the online chat, the individual, later identified as Hayes, engaged in discussions to meet and have sexual intercourse with a thirteen-year-old girl. Additionally, during the course of an online chat, Hayes transmitted a photograph of himself to the agent. Hayes also sent other images depicting young girls, including images that depicted child pornography, using another chat application.
In January of 2016, HSI agents received information from the chat application, which confirmed the location of Hayes as Falls City, Nebraska. In July, 2016, agents executed a federal search warrant on Hayes’s residence and seized an iMac computer, iPhone 4s, and portable media storage devices. After forensic examinations were conducted, one hundred fifty three (153) files containing child pornography were found on the iMac computer, including six (6) of the images sent to the UC agent by Hayes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Department of Homeland Security.
Berkeley County man indicted for drug and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Herman Terrell Govan, of Inwood, West Virginia, was indicted by a federal grand jury sitting in Martinsburg on January 23, 2019 on drug and firearms charges, United States Attorney Bill Powell announced.
Govan, age 35, is charged with three counts of “Distribution of Heroin” and one count of “Unlawful Possession of a Firearm.” Govan is accused of selling heroin in December 2017 and January 2018 in Berkeley County. Govan, a person prohibited from having firearms, is also accused of possessing a .30 caliber rifle.
Govan faces up to 20 years incarceration and a $1,000,000 fine for each of the heroin counts. He faces up to 10 years incarceration and a fine of up to $250,000 for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Timothy Helman is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
22 January 2019
Westlake man indicted on charges he illegally accepted food stamps at Cleveland-area gas stations, laundered the profits, illegally had firearms, operated an unregulated slaughterhouse and polluted a stream by dumping animal blood in itRead the Press Release
A Westlake man with a history of food stamp fraud was indicted on charges that he continued to illegally accept food stamps at seven Cleveland-area gas stations, laundered the profits, illegally had firearms, operated an unregulated slaughterhouse and polluted a stream by dumping animal blood and other fluids into it.
Amin M. Salem, 59, and Mohamed Salem, 32, were both indicted on one count each of conspiracy to launder money and one count of engaging in real estate transactions using laundered funds.
Amin Salem is additionally charged with one count of making unpermitted discharges into a waterway, one count of distribution of adulterated, misbranded or uninspected meat and one count of being a felon in possession of firearms. That charge stems from Amin Salem having an AR-15 rifle and a Savage 12-gauge shotgun, despite previous convictions for conspiracy to defraud the United States, food stamp fraud, mail fraud, and money laundering.
Mohamed Salem, also of Westlake and Amin’s son, is also charged with trafficking in counterfeit goods for his sale of counterfeit clothing and apparel.
Zahran al-Qadan, 55, of Cleveland, was indicted on one count of conspiracy to launder money.
Prosecutors are seeking to forfeit properties at 43588 Stang Road and 7250 West Ridge Road in Elyria owned by the Salems.
According to the six-count indictment:
Amin Salem secretly owned several area gas stations: Henry’s Marathon at 3106 Fulton Road; Gas Way at 10606 Bellaire Road; Turney Sunoco at 6009 Turney Road in Garfield Heights; Harvard Gas USA at 7020 Harvard Ave.; Bellaire Gas USA at 3934 West 117th Street; Rapid Stop at 1712 East 55th Street and Memphis Shell at 7210 Memphis Ave.
Mohamed Salem managed the gas station’s finances of behalf of his father. The gas stations had terminals to accept and process Electronic Benefits Transaction (EBT) cards as part of the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps.
The gas stations and the EBT terminals inside were in the names of Mohamed Salem or another person, since Amin Salem was prohibited from owning stores that processed EBT transactions because of previous convictions for food stamp fraud and related crimes.
The gas station terminals were used by the Salems to process more than $2.7 million in fraudulent SNAP transactions between 2010 and 2016.
Amin Salem slaughtered lambs and goats at his property on Stang Road in 2015 and 2016. He sold the meat, which was not inspected by the U.S. Department of Agriculture. He also caused, without a permit, the discharge of blood and other bodily fluids from the slaughtered animals into Engle Ditch, which flows into the Black River and eventually Lake Erie.
Mohamed Salem sold meat illegally slaughtered at Amin Salem’s farm. The Salems allowed customers to pay for the illegally slaughtered meat using SNAP cards, in contravention of SNAP’s rules and regulations.
Money from the meat sales and SNAP transactions were deposited into gas station accounts and ultimately sent to accounts controlled and used by the Salems.
The Salems and al-Qadan owned the Rapid Stop gas station at 1712 East 55th Street in Cleveland. Al-Qadan also owned and operated Yahala Bakery, a grocery store and bakery in North Olmsted.
Al-Qadan used checks from Yahala Bakery to purchase illegally slaughtered meat, and caused the checks to be processed through gas station bank accounts so it appeared those transactions were for the purchase of gasoline. Al-Qadan also paid for the meat using the EBT cards of customers who allowed him to have possession of their cards and accounts.
The Salems used the funds from these fraudulent transactions to pay for lots at 26800-26900 Brookpark Road Extension in North Olmsted.
“Amin Salem is accused of engaging in a diverse array of crimes, from food stamp fraud to illegally slaughtering lambs and goats to illegally having an assault rifle and shotgun, just to name a few,” U.S. Attorney Justin Herdman said. “He will now be held accountable for years of disregarding our nation’s laws and flouting the rules to enrich himself.”
"This father and son duo engaged in various illegalities to include stealing from every taxpaying citizen by engaging in food stamp fraud, a program designed to help those in need," said FBI Acting Special Agent in Charge Robert E. Hughes. "Salem put others at risk by selling unsanitary, unregulated food. The FBI will continue to work with our federal and local law enforcement partners to ensure fraudsters like these are held accountable."
“IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money," stated Ryan Korner, Special Agent in Charge of IRS-CI Cincinnati Field Office.
“The defendant is alleged to have illegally discharged waste from an animal slaughtering operation into a local stream,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal enforcement program in Ohio. “This case demonstrates that EPA and its law enforcement partners will pursue those who violate laws designed to protect the health of our communities and the environment.”
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the FBI, IRS-Criminal Investigations, USDA-OIG, USDA-FSIS, EPA-CID, Ohio Investigative Unit, Ohio Department of Taxation, Ohio Department of Agriculture, BCI, Ohio EPA, Lorain County Sheriff's Office, Guernsey County Sheriff's Department, Cleveland Division of Police, Westlake Police Department and Strongsville Police Department.
It is being prosecuted by Assistant U.S. Attorneys Duncan Brown and Brad Beeson.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
West Virginia Man Charged with Dealing in Stolen, Specialized Mining EquipmentRead the Press Release
PITTSBURGH, PA – A resident of Beckley, West Virginia, has been indicted by a federal grand jury in Pittsburgh on charges related to five thefts of specialized mine equipment that occurred in Indiana and Armstrong Counties, United States Attorney Scott W. Brady announced today.
The two-count Indictment names Eudell Delano Dickerson Jr., 43, as the sole defendant.
According to the Indictment, from February 2017 to January 2018, Dickerson unlawfully conspired to and did transport, transmit and transfer in interstate commerce goods that were stolen, that is, specialized mining equipment/components, with a value of $5,000 or more from mining companies located in the Western District of Pennsylvania and the Western District of Virginia to the State of West Virginia, where Dickerson is alleged to have sold the stolen mining equipment/components.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Two sentenced in cocaine distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Martinsburg men were sentenced today for their involvement with a multi-state drug trafficking operation, United States Attorney Bill Powell announced.
Kenneth Biermann-Ruz, of Martinsburg, West Virginia, age 29, was sentenced to five years probation. Biermann-Ruz pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine” in September 2018. Biermann-Ruz admitted to selling cocaine in Berkeley County in October 2016.
Adam Bensaid, of Martinsburg, West Virginia, age 20, was sentenced to time served and three years supervised release. Bensaid pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine” in September 2018. Bensaid admitted to selling cocaine in Berkeley County in January 2017.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher prosecuted the cases on behalf of the government. The U.S. Attorney’s Office of the Western District of Virginia assisted. The investigation was led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department. Other agencies assisting in the investigation were the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County, Virginia Sheriff’s Office; and the Henry County, Virginia Sheriff’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Sex Trafficker Lavelleous Purcell, a/k/a “King Casino,” a/k/a “Mike Hill,” Sentenced to 18 Years in Prison in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LAVELLEOUS PURCELL, a/k/a “King Casino,” a/k/a “Mike Hill,” was sentenced today by United States District Judge Denise L. Cote to 216 months in prison for sex trafficking by force, fraud, and coercion, and other related offenses.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lavelleous Purcell, a violent and notoriously brutal predator, used physical violence and intimidation to force women into sexual servitude for his financial enrichment. Appropriately, Purcell has now been sentenced to surrender his own freedom for many years.”
According to the Indictment filed in Manhattan federal court, previous court filings, and statements made at public proceedings:
From at least in or about 2012 to in or about 2017, LAVELLEOUS PURCELL, a/k/a “King Casino,” a/k/a “Mike Hill,” the defendant engaged in the sex trafficking and commercial sexual exploitation of numerous women across the country, including in New York, Pennsylvania, and North Carolina. The defendant recruited, enticed, harbored, transported, provided, obtained, and maintained women for the purposes of commercial sex, and he used violent force, threats of force, coercion, intimidation, and fear to force at least one woman to engage in commercial sex for his own profit. For example, the defendant strangled and choked certain of his victims, he hit and threatened to hit certain of his victims, and he kidnapped certain of his victims.
The victims of the defendant’s prostitution business were required to follow a strict set of rules, which the defendant enforced through threats, fear, intimidation, and violence. The defendant’s rules required his victims to: make money for the defendant through prostitution, give the defendant all money earned from any commercial sex acts, call the defendant “Daddy,” not speak to men other than the defendant, not look at any men other than the defendant, not talk back to the defendant, not disrespect the defendant, not have boyfriends, not wear sneakers or loose-fitting clothing, and brand themselves with a tattoo bearing the defendant’s alias, “Casino,” on their necks.
The defendant recruited women to engage in commercial sex through social media websites, and he used Backpage.com, an online classifieds website, to post advertisements for commercial sex. The defendant also booked various rental cars and hotel rooms to transport women across state lines to engage in commercial sex. Meanwhile, the defendant boasted about the violence he used against women and his prostitution of women through social media posts, phone, text, and online communications, and in person.
* * *
In addition to his prison sentence, PURCELL, 40, was sentenced to five years of supervised release.
Mr. Berman thanked the FBI and the NYPD for their outstanding investigative work in this matter. Mr. Berman also thanked the New York County District Attorney’s Office for its assistance with this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sheb Swett, Jane Kim, and Margaret Graham are in charge of the prosecution.
Project Huntington Update: Operation Saigon Sunset Defendant Sentenced to 108 Months in Prison for His Role in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – An Operation Saigon Sunset defendant was sentenced today to 108 months in prison for his role in a federal drug conspiracy, announced United States Attorney Mike Stuart. Manget Peterson, also known as “Money,” 45, of Detroit, previously pled guilty to an indictment charging him with conspiracy to distribute 100 grams or more of heroin and a quantity of fentanyl. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Significant drug dealer. Significant sentence for his crimes,” said United States Attorney Mike Stuart. “Manget Peterson peddled poisons and wreaked havoc in the City of Huntington for far too long. Our objective in implementing Project Huntington was to make the city safer by ridding city streets of dangerous drug dealers and holding them accountable. Huntington is no doubt safer today as a result of our efforts.”
Peterson admitted that between August 2017 and April 2018 he conspired with individuals to distribute heroin and fentanyl in Huntington, West Virginia. Peterson admitted that he obtained heroin from Willie Peterson, also known as “Chill,” in Detroit, Michigan to sell in Huntington and would send drug proceeds to Willie Peterson. Peterson also admitted that between September 2017 and April 2018 he supplied Lonnie Berry, II with heroin to sell in exchange for money
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Pittsburgh Man Pleads Guilty to Child Exploitation ChargeRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Ryan Grasha, 24, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on January 31, 2018, Grasha possessed approximately 250 images depicting the sexual exploitation of minors, some of whom were under the age of 12 years. Grasha obtained and distributed the sexually exploitive images over the Internet, using the "Omegle" and "Kik" peer-to-peer networks.
Judge Conti scheduled sentencing for May 14, 2019, at 3:30 p.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Grasha remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Grasha.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Monongalia County man admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Howard, of Morgantown, West Virginia, has admitted to his role in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Howard, age 32, pled guilty to one count of “Unlawful Use of Communication Facility.” Howard admitted to using a phone to distribute and conspire to distribute a controlled substance in April 2018 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Mineral County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Thomas Edward Wright, of Keyser, West Virginia, was sentenced today to 103 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Wright, age 30, pled guilty to one count of “Possession of a Stolen Firearm” in October 2018. Wright admitted to possessing a stolen .22 caliber long rifle in February 2016 in Mineral County.
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 Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Keyser Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Michigan Residents Arrested for Conspiracy to Provide Material Support to ISISRead the Press Release
Three residents of Lansing, Michigan, were arrested without incident Monday afternoon for conspiring to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS). The U.S. Attorney’s Office for the Western District of Michigan charged all three in a criminal complaint filed today in U.S. District Court in Grand Rapids, Michigan. The conspiracy charge is punishable by up to 20 years in federal prison.
Members of the FBI Joint Terrorism Task Force (JTTF) arrested Muse Abdikadir Muse (Muse Muse) at the Gerald R. Ford Airport in Grand Rapids, Michigan, after checking in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia. Shortly thereafter, law enforcement arrested alleged coconspirators Mohamud Abdikadir Muse (Mohamud Muse), and Mohamed Salat Haji (Haji). All three defendants are naturalized U.S. citizens who were born in Kenya.
According to the complaint affidavit, Muse Muse purchased airline tickets earlier this month to travel from Grand Rapids to Mogadishu, departing on Monday, January 21, 2019. Among other support, the complaint alleged Haji and Mohamud Muse aided in the purchase of the ticket and drove Muse Muse to the Grand Rapids airport, each knowing the true purpose of the travel was for Muse Muse to join and fight for ISIS.
The complaint asserts that all three defendants pledged allegiance to ISIS through videos they recorded themselves. Muse Muse and Haji allegedly discussed with each other their desire to join ISIS, to kill non-believers, and even to potentially use a car for a martyrdom operation to run down non-believers here in the United States if they could not travel overseas to fight for ISIS. Following the arrests, federal agents executed search warrants at a residence shared by Mohamud Muse and Muse Muse.
Assistant Attorney General for National Security John C. Demers, Andrew B. Birge, U.S. Attorney for the Western District of Michigan, and Tim Slater, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division, announced the arrests.
The public is reminded that a complaint contains only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces $269.2 Million Recovery from Walgreens in Two Civil Healthcare Fraud SettlementsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Gregory E. Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), Scott J. Lampert, Special Agent in Charge of HHS-OIG’s New York Regional Office, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Leigh-Alistair Barzey, Special Agent-in-Charge of the Defense Criminal Investigative Service (“DCIS”) Northeast Field Office, Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Matthew Modafferi, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, Northeast Area Field Office (“USPS-OIG”), and Thomas W. South, Deputy Assistant Inspector General for Investigations, U.S. Office of Personnel Management, Office of the Inspector General (“OPM-OIG”), announced today that the United States filed and settled two healthcare fraud lawsuits against national pharmacy chain WALGREENS BOOTS ALLIANCE, INC. (“WALGREENS”), pursuant to which WALGREENS must pay the United States and state governments a total of $269.2 million. The first settlement, approved on January 16, 2019, by U.S. District Judge Paul A. Crotty and unsealed today, requires WALGREENS to pay $209.2 million to resolve allegations that it improperly billed Medicare, Medicaid, and other federal healthcare programs for hundreds of thousands of insulin pens it knowingly dispensed to program beneficiaries who did not need them. The second settlement, approved on January 15, 2019, by U.S. District Judge J. Paul Oetken and unsealed today, requires WALGREENS to pay $60 million to resolve allegations that it overbilled Medicaid by failing to disclose to and charge Medicaid the lower drug prices that WALGREENS offered the public through a discount program. In both settlements, WALGREENS admitted and accepted responsibility for conduct the Government alleged in its complaints under the False Claims Act.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Medicare and Medicaid provide essential healthcare coverage to millions of people across this country. The financial integrity of these programs depends on truthful and accurate billing by pharmacies like Walgreens. Overbilling and improper billing of Medicare and Medicaid unduly burden taxpayers and put the solvency of these vital healthcare programs at risk. This Office will hold healthcare providers to account when they fail to deal honestly with federal programs.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Walgreens engaged in practices that undermined the integrity of the Medicare and Medicaid programs, compromised patient care, and wasted taxpayer dollars. Along with our law enforcement partners, HHS-OIG will continue to protect the individuals that depend on federally funded health care programs, and ensure that companies that do business with those programs do so in an honest fashion.”
DCIS Special Agent-in-Charge Leigh-Alistair Barzey said: “Health care fraud impacting the U.S. Department of Defense (DoD) is a top investigative priority for the DCIS. The settlements announced today by the U.S. Attorney’s Office are the direct result of a joint investigative effort by the DCIS, the FBI, HHS OIG, DoL OIG, OPM OIG, Postal OIG, and the U.S. Department of Justice. The successful resolution of these cases demonstrates the DCIS’s ongoing commitment to work with its law enforcement partners to combat health care fraud, protect Defense Health Agency funds, and ensure the integrity of TRICARE, the DoD’s health care system.”
DOL-OIG Special Agent-in-Charge Michael C. Mikulka said: “Walgreens defrauded the U.S. Department of Labor’s (DOL) Federal Employees’ Compensation Act Program and other health care programs out of millions of dollars by over-dispensing insulin pens at the risk of potentially causing harm to beneficiaries. We will continue to work with our law enforcement partners to protect the integrity of DOL’s benefit programs.”
USPS-OIG Special Agent in Charge Matthew Modafferi said: “This settlement sends a clear message to pharmaceutical chains to follow the law. Pharmacies that attempt to take advantage of federal benefit systems will be pursued by the Special Agents of the U.S. Postal Service Office of Inspector General, their law enforcement partners, and the U.S. Attorney’s Office.”
OPM-OIG Deputy Assistant Inspector General for Investigations Thomas W. South said: “The OPM-OIG has zero tolerance for fraud against the Federal Employees Health Benefits Program. Today’s settlement reflects our commitment to pursuing and preventing improper and illegal billing practices that waste taxpayer dollars and increase the cost of medical care. I would like to thank the DOJ attorneys, OPM-OIG agents, and their law enforcement partners for all their hard work.”
Insulin Pens Settlement
The United States’ complaint alleges that WALGREENS routinely submitted false days-of-supply data to federal healthcare programs when it sought federal reimbursement for insulin pens it dispensed to federal beneficiaries who did not need them. Specifically, WALGREENS engaged in two practices that resulted in the fraudulent submissions. First, WALGREENS configured its electronic pharmacy management system to prevent its pharmacists from dispensing less than a full box of five insulin pens, even when patients did not need that much insulin. Second, when a full box of insulin pens exceeded the federal healthcare program’s limit on the total days of supply (i.e., the total number of daily doses) that could be dispensed and reimbursed at that time, WALGREENS evaded this restriction by falsely stating in its reimbursement claims that the total days of supply did not go over the limit. As a result, federal healthcare programs paid WALGREENS millions of dollars for insulin that many beneficiaries did not actually need, and substantial quantities of valuable medication were wasted. This conduct also opened the door to potential healthcare risks and abuse, such as the improper resale of insulin pens on the Internet.
The settlement requires WALGREENS to pay approximately $168 million to the United States, and WALGREENS has agreed separately to pay approximately $41.2 million to state governments.[1] Under the settlement, WALGREENS admitted, among other things, that:
- When a federal health program denied a claim from WALGREENS because the reported days of supply for a full carton of five insulin pens exceeded the federal program’s days-of-supply limit, it was WALGREENS’s practice to dispense and bill for the full carton and reduce the reported days of supply to conform to the program’s days-of-supply limit; and
- WALGREENS thus repeatedly reported days-of-supply data to federal health programs that were different from, and lower than, the days-of-supply calculated according to the standard pharmacy billing formula.
Discount Drug Pricing Settlement
The United States’ complaint in this case alleges that WALGREENS operated a program called the Prescription Savings Club (the “PSC”), under which customers received discounts when they ordered drugs from WALGREENS. Medicaid regulations directed WALGREENS to seek Medicaid reimbursement only at the lowest of certain drug price points, including the “usual and customary price” (“U&C price”). Medicaid rules of many states defined the U&C price as the price offered through discount programs like the PSC. Contrary to these requirements, WALGREENS did not disclose to Medicaid the discount drug prices it offered customers through the PSC when it sought reimbursement from Medicaid. As a result, Medicaid programs paid WALGREENS more in reimbursements than they would have paid had WALGREENS disclosed the lower PSC prices.
The settlement requires WALGREENS to pay a total of $60 million, of which approximately $32 million is to the United States and approximately $28 million will go to state governments. Under the settlement, WALGREENS admitted, among other things, that:- Customers who enrolled in the PSC were eligible to receive discounts for thousands of types of drugs, and WALGREENS offered a savings guarantee under which PSC enrollees could recoup through a store credit the difference between the amount they paid to enroll in a given year and the amount they received in discounted savings in that year; and
- In submitting claims for reimbursement to Medicaid, WALGREENS did not identify its PSC program prices as its U&C prices for the drugs on the PSC program formulary, which resulted in the States paying more in reimbursement than they would have paid if WALGREENS had identified its PSC program prices.
Both cases arose from lawsuits filed by whistleblowers under the False Claims Act.
In connection with these settlements, WALGREENS has entered into a Corporate Integrity Agreement with HHS-OIG. The Corporate Integrity Agreement reaches broadly across WALGREENS’s retail and specialty pharmacies that bill federal health care programs. Board oversight, multi-site claims reviews to be conducted by an Independent Review Organization, and other Corporate Integrity Agreement requirements seek to foster adherence to federal health care program requirements and thereby protect the programs.
Mr. Berman praised the outstanding investigative work of the HHS-OIG, FBI, DOD-OIG, DOL-OIG, USPS-OIG, and OPM-OIG. He also thanked the Medicaid Fraud Control Units for Indiana, Washington, New York, and Texas for their assistance in these cases.
These cases are being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Li Yu and Jessica Jean Hu are in charge of the insulin pens case against Walgreens, and former Assistant U.S. Attorney Christopher Harwood was in charge of the discount drug pricing case against Walgreens.
[1] The Medicaid program is primarily administered by the states but financed jointly by federal and state funds.
Los Angeles-Area Attorney Arrested on Federal Drug Trafficking Charges Alleging Opioid Sale after Posting Ads on CraigslistRead the Press Release
LOS ANGELES – Members of a federal task force have arrested an attorney on narcotics distribution charges that allege she illegally sold oxycodone pills after offering drugs for sale on Craigslist.
Jackie Ferrari, 36, a resident of Downey, who investigators believe recently started a new job at a Beverly Hills law firm, was arrested late Friday without incident by law enforcement officers affiliated with the High Intensity Drug Trafficking Area (HIDTA) Task Force, which operates under the direction of the Drug Enforcement Administration.
The criminal complaint filed on January 15 and unsealed today specifically charges Ferrari with one count of distributing a controlled substance. The affidavit in support of the complaint states that a law enforcement source with a long history of purchasing narcotics from Ferrari made a buy earlier this month in which Ferrari sold the informant 50 oxycodone pills for $1,200. Ferrari subsequently sent the informant and other likely customers a text message that she “recently obtained a new supply of oxycodone and [had] other drugs available for sale,” according to the affidavit.
The investigation into Ferrari began after a 22-year-old woman died in August of a fentanyl overdose, and text messages on the victim’s phone initially indicated she may have purchased the narcotics from Ferrari. While investigators currently do not believe that Ferrari sold the narcotics that led to the overdose death, they have continued to investigate her “based on evidence…that she is a large-scale trafficker in opiates via the website Craigslist,” according to the affidavit, which notes that two local police departments developed information about Ferrari’s alleged drug trafficking activities in late 2017.
The affidavit also notes that records obtained from Craigslist pursuant to a subpoena demonstrate Ferrari’s “long history of posting advertisements for…the sale of narcotics” using coded names such as “roxy dolls” (i.e., Roxicodone, a short-acting version of oxycodone), “Chinese **White** Rice” (i.e., “China white” or powdered heroin, which is often mixed with fentanyl) and “Black Rice” (i.e., black tar heroin).
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Ferrari is expected to make her initial appearance in this case this afternoon in United States District Court.
If convicted of the charge in the criminal complaint, Ferrari would face a statutory maximum sentence of 20 years in federal prison.
The investigation into Ferrari is being conducted by the HIDTA Task Force and was led by agents and officers with the Drug Enforcement Administration and the Los Angeles County Sheriff’s Department. The task force also includes representatives of the Los Angeles Police Department; the United States Department of Veterans Affairs, Office of Inspector General; the California Department of Justice; and the Los Angeles County District Attorney’s Office, Office of Investigations.
The Costa Mesa Police Department and the Cypress Police Department provided substantial assistance in the investigation.
The case against Ferrari is being prosecuted by Assistant United States Attorneys Benjamin Barron and Carley A. Palmer of the Organized Crime Drug Enforcement Task Force.
Lansing Residents Arrested for Conspiracy to Provide Material Support to ISISRead the Press Release
Grand Rapids, MI - Three residents of Lansing, Michigan, were arrested without incident Monday afternoon for conspiring to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS). The U.S. Attorney’s Office for the Western District of Michigan charged all three in a
criminal complaint unsealed today in U.S. District Court in Grand Rapids, Michigan. The conspiracy charge is punishable by up to 20 years in federal prison.Members of the FBI Joint Terrorism Task Force (JTTF) arrested MUSE ABDIKADIR MUSE (MUSE MUSE) at the Gerald R. Ford International Airport in Grand Rapids, Michigan, after he checked in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia. Shortly thereafter, law enforcement arrested alleged coconspirators MOHAMUD ABDIKADIR MUSE (MOHAMUD MUSE), and MOHAMED SALAT HAJI (HAJI). MUSE MUSE and MOHAMUD MUSE are brothers and HAJI is a cousin. All three were born in Kenya. HAJI is a naturalized U.S. citizen and the brothers are derivative U.S. citizens, having received U.S. citizenship as minors through the naturalization of their parents.
According to the
complaint affidavit , MUSE MUSE purchased airline tickets earlier this month to travel from Grand Rapids to Mogadishu, departing on Monday, January 21, 2019. Among other support, the complaint alleged HAJI and MOHAMUD MUSE aided in the purchase of the ticket and drove MUSE MUSE to the Grand Rapids airport, each knowing the true purpose of the travel was for MUSE MUSE to join and fight for ISIS.The
complaint asserts that all three defendants pledged allegiance to ISIS through videos they recorded themselves. MUSE MUSE and HAJI allegedly discussed with each other their desire to join ISIS, kill non-believers and even to potentially use a car for a martyrdom operation to run down non-believers here in the United States if they could not travel overseas to fight for ISIS. Following the arrests, federal agents executed a search warrant at a residence in Lansing, Michigan, shared by MOHAMUD MUSE and MUSE MUSE.Assistant Attorney General for National Security John C. Demers, Andrew B. Birge, U.S. Attorney for the Western District of Michigan, and Tim Slater, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Division, announced the arrests.
The JTTF is comprised of agents and officers from area federal and state law enforcement agencies, including the FBI, Michigan State Police, Michigan State University Police Department, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Lansing and Grand Rapids Police Departments, U.S. Marshals Service, Lansing and Grand Rapids Airport Police and the Department of Homeland Security, specifically the Transportation Security Administration, Federal Air Marshals and Customs and Border Protection.
The defendants were scheduled to make their initial appearance in court today to hear the charges against them. They will remain in custody pending formal arraignment and a hearing on the government’s request that their detention continue until trial. The public is reminded that a complaint contains only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
END
Four Plead Guilty to Filing Hundreds of Fake Tax ReturnsRead the Press Release
COLUMBUS — Four defendants pleaded guilty Tuesday to a scheme defrauding the Internal Revenue Service (IRS) by using stolen identities to file tax returns and obtain refunds, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Erica D. Wise, 33, Ciourziae Weaver, 27, Linda Weaver, 52, and April Byrd, 40, all of Columbus, GA, entered guilty pleas to Conspiracy to Defraud the United States in the Collection of Income Taxes on January 22, 2019 before the Honorable Clay D. Land. The crimes are punishable to a term of imprisonment of up to five (5) years, a fine of up to $250,000, or both, and up to three (3) years of supervised release. Sentencing is scheduled for April 11, 2019 before Chief Judge Land.
According to the plea agreements, the defendants conspired together to file multiple fraudulent tax returns from March 2012 to September 2013 under the business Wise Tax, using the names and personal information of real taxpayers, unknown to those victims. The defendants used four addresses around Columbus to accept mailed refunds, totaling 316 fraudulently filed refunds. The defendants conspired together to deposit the tax refunds, and further shielded their illegal activity by using stolen identities as named income tax return preparers. None of the preparers had any knowledge of, or involvement with, the scheme.
“This tax return scheme enacted in Columbus is vast, with several layers of fraud concocted to not only steal people’s identities but also defraud the government,” said Charles “Charlie” Peeler, U.S. Attorney for the Middle District of Georgia. “With tax season in full swing, I want to remind would be criminals that our office will prosecute to the fullest extent of the law those defrauding the government through tax schemes. I want to applaud the good work of the IRS in helping unravel this conspiracy.”
This case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Mel Hyde.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former Pharmacy Owner Headed to Prison for Bogus Claims to Health InsurersRead the Press Release
The pharmacist and former owner of Gibson’s Discount Drugs in Red Bud, Illinois, has been sentenced to 33 months in prison for engaging in a scheme to defraud federal health care benefit programs and private insurance companies. Steven P. Gibson, 30, pleaded guilty to federal charges back in August 2018.
Court records establish that Gibson purchased the pharmacy in October 2016 and began defrauding health insurers just two months later. From December 2016 to February 2018, Gibson submitted nearly 1,000 claims for "make believe" prescriptions under the names of his wife, his family members, and his pharmacy customers. To maximize his fraudulent gains, Gibson deliberately chose the most expensive drugs, such as Creon, a drug used to treat chronic pancreatitis, Pentasa, a drug used to treat ulcerative colitis, and hydroxychloroquine, a drug used to treat and prevent malaria. The fictitious prescriptions were not authorized by a licensed medical practitioner and were never actually filled. Gibson’s total take from Medicare, Medicaid, and private insurance companies exceeded $620,000 – money he has now been ordered to pay back in restitution.
Gibson’s crimes first came to light in late 2017, after a pharmacy customer recognized that her son had been billed for expensive medications he had not received and called to complain. The pharmacist who took that call then discovered Gibson’s fraud, quit her job, and notified authorities. A federal search warrant was executed at the pharmacy on February 8, 2018. Shortly thereafter, Gibson agreed to cooperate in the investigation and plead guilty.
As part of his plea deal with the United States, Gibson agreed to repay all of the money and to make restitution payments in advance of sentencing to the fullest extent possible. At sentencing, however, Gibson had repaid only $30,000 and had otherwise failed to account for the rest of the money he stole. In imposing sentence, United States District Judge Staci M. Yandle found Gibson’s failure to pay back more of the money incompatible with his expressions of remorse and refused to award him credit for acceptance of responsibility. "Talk is cheap," Judge Yandle told the defendant, quoting an opinion from the Seventh Circuit Court of Appeals. "The remorseful or repentant criminal would want to do everything possible to rectify the harmful consequences of his crime, and so if he still has any of the loot he will return it."
Judge Yandle was also troubled by statements made by Gibson’s wife in an online post to the pharmacy’s public Facebook account. The post, which was made on the same day Gibson pleaded guilty but was recently taken down, attempted to downplay his criminal conduct to the pharmacy’s customers:
Everything that was wrote about us receiving 630,000 or whatever the number that was put out there, is laughable to me and completely false. I SEE our bank accounts , I KNOW. * * * Everything that was wrote about him running claims and collecting money on multiple people that is a complete LIE. I know all the details of the investigation.
Although Gibson’s attorney maintained that his client had not known about his wife’s Facebook post and did not condone it, Judge Yandle found that position not credible and specifically cited the Facebook post as further indication that Gibson had not adequately accepted responsibility for his crimes. In handing down the nearly three-year sentence, Judge Yandle also emphasized the seriousness of so-called "white collar crimes" such as this one. "Some people minimize these kinds of crime," she said. "This court does not.
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Kansas City Region, stated, "Individuals in trusted positions who submit false claims to our healthcare programs for personal enrichment will be pursued to the fullest and brought to justice."
Gibson was released on bond with special conditions pending the start of his prison term. His sentence also includes two years of supervised release. Because of the large amount of restitution he still owes, Gibson was not ordered to pay a fine.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Illinois State Police, Medicaid Fraud Control Bureau; the Federal Bureau of Investigation; the Drug Enforcement Administration; United States Postal Inspection Service; and the National Insurance Crime Bureau. The case was prosecuted by Assistant United States Attorneys Michael J. Quinley and Nathan D. Stump.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Felon Sentenced for Illegally Reentering the United StatesRead the Press Release
NORFOLK, Va. – A Mexican national was sentenced last week to 15 months in prison for illegally reentering the United States.
According to court documents, Carlos Matute-Midence, 25, was found to be in the country illegally after his arrest for participating in a large conspiracy in which he and several others traveled up and down the Eastern Shore cashing bad checks at local businesses serving the Hispanic community, stealing a total of almost $70,000. He was convicted of 15 racketeering and uttering counts and sentenced to serve three years in state custody. His federal sentence will be served consecutive to his state sentence.
Before he committed those crimes, Matute-Midence had been deported twice within a week. A week after his second deportation, he voluntarily removed himself from the United States after entering the country a third time. He returned yet again and was arrested for his part in the bad-check scheme sometime later.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-111.
Emanuel “Book” Richardson, Former Division I Men’s Basketball Coach, Pleads Guilty to Bribery in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that EMANUEL RICHARDSON, a/k/a “Book,” a former men’s basketball coach at the University of Arizona (“Arizona”), pled guilty in Manhattan federal court today to taking approximately $20,000 in cash bribes from athlete advisers in exchange for using his position to influence Arizona basketball players on his team to retain the services of the advisers paying the bribes. RICHARDSON pled guilty before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Emanuel Richardson, a former Arizona men’s basketball coach, abused his position as a mentor and coach to student-athletes for his own personal gain. Richardson, entrusted to help players develop as athletes and young men, instead helped himself to the cash offered by unscrupulous agents and financial advisers.”
According to the Complaint, the Indictment, statements made in court and publicly available documents:
RICHARDSON, a former men’s basketball coach at Arizona, agreed to accept cash bribes in return for agreeing to exert his influence over student-athletes on Arizona’s Division I men’s basketball team to retain the services of the bribe-payers once the student-athletes entered the National Basketball Association (“NBA”).
Beginning in or around February 2017, and continuing into September 2017, when RICHARDSON was arrested, RICHARDSON received approximately $20,000 in cash bribes from current and aspiring financial advisers and/or managers for professional athletes in exchange for RICHARDSON’s agreement to exert his influence over certain student-athletes RICHARDSON coached at Arizona to retain the services of the bribe payers once those players entered the NBA. For example, in discussing his commitment to steering Arizona players to retain the bribe payers upon entering the NBA, RICHARDSON told an undercover FBI agent and others, during a recorded meeting, “I used to let kids talk to three or four guys, but I was like, why would you do that? You know that’s like taking a kid to a BMW dealer, a Benz dealer, and a Porsche dealer. They like them all . . . You have to pick for them.” In return for the cash bribes RICHARDSON received, RICHARDSON facilitated a meeting between the bribe payers and a relative of a player attending Arizona for the purpose of pressuring that player to retain the financial services of the bribe payers.
In addition to today’s plea, Anthony Bland, a/k/a “Tony,” a former men’s basketball coach at the University of Southern California, previously pled guilty, pursuant to a plea agreement with the Government, in connection with this scheme. Munish Sood, a financial adviser, also previously pled guilty, pursuant to a cooperation agreement with the Government, in connection with this scheme
* * *
RICHARDSON, 46 years old, of Tucson, Arizona, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, RICHARDSON agreed to forfeit $20,000. The charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for April 24, 2019, before Judge Ramos.
Mr. Berman praised the work of the Federal Bureau of Investigation and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert Boone, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
Berkeley County man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Carl Cedric Booth, of Martinsburg, West Virginia, was sentenced today to 12 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Booth, age 21, pled guilty to one count of “Possession With the Intent to Distribute Heroin” in December 2017. Booth admitted to distributing heroin in October 2016 in Berkeley County, West Virginia.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
18 January 2019
Woman Sentenced to 15 Years for $5 Million FraudRead the Press Release
ALEXANDRIA, Va. – An Ashburn woman was sentenced today to over 15 years in prison for orchestrating a scheme that defrauded more than 50 victims of over $5 million.
According to court documents, Keisha L. Williams, 43, told individual victim lenders that she had paid a lot of money for a certain healthcare-related software overseas in Austria; that the software was being held in “escrow” because she still owed taxes, attorney’s fees, and other debt associated with the purchase; and that if they would just provide her with a short-term loan to get this software out of escrow and bring it to the United States, everyone would be quickly repaid, with interest. Williams received over $5.4 million from over 50 victims for the alleged purpose of getting this software out of escrow.
In reality, Williams spent this money on a lifestyle of luxury. For example, Williams spent more than $1 million on travel for herself and her girlfriend, including trips to Bora Bora, Italy, and the Bahamas, and on $4,000-a-night stays at the Four Seasons hotel. Williams also conspired with others to impersonate federal officials to extort money, and bribed various T-Mobile employees to obtain one of the extortion victim’s personal toll records.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the Criminal Division at the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Grace L. Hill and Jack Hanly prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-298.
Winnebago Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Joe Kelly announced that Oliver Whitewing-Saul, age 23, was sentenced in federal court on Friday, January 18, 2019, in Omaha, Nebraska, for one count of Sexual Abuse of a Minor. The Honorable Robert F. Rossiter, Jr. sentenced Whitewing-Saul to 108 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Whitewing-Saul will begin a five-year term of supervised release.
On January 29, 2018, on the Winnebago Indian Reservation, Whitewing-Saul engaged in sexual intercourse with a 15-year-old female victim. Whitewing-Saul was 22 at the time. The investigation revealed that Whitewing-Saul’s DNA and the victim’s DNA were located on clothes that Whitewing-Saul was wearing at the time of the sexual encounter.
The case was investigated by the Federal Bureau of Investigation and the United States Department of the Interior, Bureau of Indian Affairs.
Tyler County woman sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA –Rachel A. Cook, of Sistersville, West Virginia, was sentenced to 18 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Cook, age 29, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine” in July 2018. Cook admitted to distributing crystal methamphetamine in Tyler County in November 2017.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Men Convicted of Running Prostitution Business in Northern VirginiaRead the Press Release
ALEXANDRIA, Va. – Two men pleaded guilty today to running a prostitution business that catered to the Hispanic population in northern Virginia over the past three years.
According to court documents, Luis Bonilla-Hernandez, 32, of Sterling, and Eliazar Duran Mota, 23, of Herndon, ran the prostitution business out of their homes. Each week, the defendants would obtain a woman to work in prostitution for a week at a time. The women, known as “Treinteras,” would travel by bus to Union Station in Washington, D.C. from states such as Pennsylvania and New York. The defendants then picked up the women from Union Station and transported them throughout northern Virginia to commercial sex customers. The defendants would advertise the women with business cards purporting to be tied to an automobile shop, and they would tell Hispanic patrons via word of mouth that the cards related to prostitution.
The women performed over a dozen commercial sex transactions each day, charging between $30 and $40 each time. After the prostitution dates, the women were required to turn all of their money over to the defendants, with a portion of the proceeds returned to the women at the end of the week. After a woman worked for a week, the defendants would switch out their “inventory” by obtaining a new woman from Union Station to work in prostitution throughout northern Virginia.
When law enforcement executed a search warrant on Bonilla Hernandez’s house, they recovered evidence of prostitution and over $14,000 in cash. Both defendants pleaded guilty in connection with the prostitution of five adult victims.
Bonilla-Hernandez and Duran Mota pleaded guilty to one count of interstate travel or transportation in aid of a racketeering enterprise. The defendants each face a maximum of five years in prison when sentenced on April 12, 2019. 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.
This matter was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI agents, along with detectives from the Fairfax County Police, Arlington County Police, Prince William County Police, Loudoun County Sheriff’s Office, Leesburg Police, Alexandria City Police, Washington Metropolitan Police, Fauquier County Sheriff’s Office, George Mason University Police, United States Marshal’s Service, and agents of various Office of Inspector Generals. This matter was brought to the task force by the Loudoun County Sheriff’s Office.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michael L. Chapman, Loudoun County Sheriff, made the announcement after Senior U.S. District Judge T. S. Ellis III accepted the plea. Assistant U.S. Attorney Maureen C. Cain is prosecuting the case, with significant assistance provided by the Loudoun County Commonwealth’s Attorney’s Office.
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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-26 and 1:19-cr-27.
Toledo man sentenced to five years in prison, the last of four defendants sent to prison for their roles in a plot to provide money to al QaedaRead the Press Release
A Toledo man was sentenced to five years in prison, the final defendant sent to prison for their roles in a conspiracy to provide thousands of dollars to Anwar Al-Alwaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.
Ibrahim Zubar Mohammad, 39, was sentenced to five years in prison on Friday, and will be deported upon completion of the sentence. He previously pleaded guilty to concealing the financing of terrorism.
Sultane Room Salim, 43, was sentenced to five years in prison earlier this week. He previously pleaded guilty to concealing the financing of terrorism
Yahya Farooq Mohammad, 40, is currently serving a sentence of more than 27 years in prison. He previously pleaded guilty to conspiracy to provide material support to terrorists and to soliciting the murder of a United States District Judge.
Asif Ahmed Salim, 38, is serving six years in prison. He previously pleaded guilty to concealing the financing of terrorism.
“These defendants sent thousands of dollars abroad to support al Qaeda and attacks on Americans,” U.S. Attorney Justin E. Herdman said. “This case demonstrates that we will aggressively pursue leads and evidence around the world to bring to justice those who would strike at our nation and the ideals we hold dear.”
"We are pleased these individuals will spend significant time behind bars for providing funds to a known terrorist who called for violent jihad,” said Robert Hughes, Acting Special Agent in Charge of the FBI’s Cleveland office. “The FBI's Joint Terrorism Task Force will continue all collaborative and investigative efforts to root out individuals who provide material support to terrorists and their organizations.”
Farooq Mohammad was an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. He married a U.S. citizen around March 2008. His brother, Ibrahim Mohammad, was also an Indian citizen who studied engineering at the University of Illinois Urbana-Champaign from 2001 through 2005. In or around 2006, he moved to Toledo, Ohio, and married a U.S. citizen. He became a lawful permanent resident of the United States in or around 2007.
Asif Salim was a U.S. citizen who studied at Ohio State University between 2000 and 2005. He became a resident of Overland Park, Kansas, in 2007. His brother, Sultane Salim, is also a U.S. citizen who resided in the Chicago area from 2006 through 2012, until he moved to the Columbus area.
The four defendants conspired to provide money, equipment and other assistance to Anwar Al-Awlaki. Al-Awlaki, a key leader of Al Qaeda in the Arabian Peninsula, was designated a global terrorist in 2010. The defendants’ support was to be used in furtherance of violent jihad against the U.S. and U.S. military in Iraq, Afghanistan and throughout the world, according to court documents.
The defendants made various financial transactions in 2008 and 2009, and communicated about raising funds for a trip to the Middle East. Farooq Mohammad and Ibrahim Mohammad obtained money by opening credit cards and withdrawing money with no intention of repaying the amounts obtained from the financial institutions, according to court documents.
On July 22, 2009, Farooq Mohammad traveled with two other people to Yemen to meet Awlaki. They were unable to meet with Awlaki, so instead travelled to Sana’a, Yemen, to meet with one of his associates. Farooq Mohammad and his two fellow travelers gave the associate approximately $22,000 to be given to Awlaki, according to court documents.
In addition to pleading guilty to conspiring to provide and conceal material support to terrorists, Yahya Farooq Mohammad also admitted to soliciting an undercover FBI employee (UCE), posing as a “hitman,” to kidnap and murder U.S. District Judge Jack Zouhary. In or about April 2016 – after he was arrested on the terrorism charge and while the case was pending and assigned to Judge Zouhary – Mohammad told another inmate in the Lucas County Corrections Center in Toledo, Ohio that he wanted Zouhary kidnapped and murdered and that he was willing to pay $15,000 to have this carried out. The inmate provided Mohammad with the contact information for the UCE and stated that the UCE would need a $1,000 down payment before the murder could occur. The inmate also provided Mohammad with an agreed upon code to use when discussing the planned murder over the jail telephone.
On or about April 26, 2016, Mohammad called the UCE from the Lucas County Corrections Center. Using the agreed-upon code, Mohammad told the UCE he wanted to have Judge Zouhary killed. Mohammad agreed to provide the $1,000 down payment. When asked when he wanted the murder committed, Mohammad stated, “The sooner would be good, you know.” Over the ensuing days, Mohammad arranged to have a family member provide the $1,000 in cash to the UCE. On May 5, 2016, that family member met with the UCE and provided the UCE with $1,000 in cash. Mohammad later informed the inmate that the rest of the money for the murder was coming, according to court documents.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Michael Freeman and Trial Attorney David C. Smith of the Justice Department’s Counterterrorism Section.
Monongalia County woman indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tara Nicole Shock, of Rosedale, West Virginia, was indicted by a federal grand jury sitting in Clarksburg on January 8, 2019 on firearms charges, United States Attorney Bill Powell announced.
Shock, age 27, was indicted on one count of “Unlawful Possession of a Firearm" and one count of “Possession of a Stolen Firearm.” Shock, a person prohibited from having firearms, is accused of having a .40 caliber pistol and a .45 caliber pistol, both of which are suspected stolen. The crimes allegedly occurred in August 2018 in Monongalia County.
Shock faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Morgantown Police Department, and the Williamstown Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced for Multi-Kilogram International Drug Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Mexican national was sentenced today to 10 years in prison for participating in a drug trafficking conspiracy involving the distribution of kilogram-level amounts of illegal drugs on behalf of co-conspirators located overseas and throughout the United States.
According to court documents, Jose Ramon Felix Meza, 52, traveled to Northern Virginia in June 2018 with Gilberto Paz Madrid, 33, another citizen of Mexico, to distribute controlled substances on behalf of co-conspirators located in Mexico, the Washington, D.C. area, and elsewhere. Following a successful operation, law enforcement agents from Homeland Security Investigations interdicted and seized nearly 9 kilograms of heroin.
In June 2018, the Virginia State Police attempted a traffic stop of a sport utility vehicle that Madrid was driving (with Meza as his passenger) along the Capital Beltway after he and Meza paid thousands of dollars for what they believed were numerous bricks of illicit narcotics. Madrid accelerated away from a pursuing law enforcement vehicle. Madrid and Meza’s vehicle collided into several cars, yet they continued to flee from law enforcement until officers successfully arrested both individuals. Madrid was sentenced to 10 years in prison on January 4.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, and the Virginia State Police as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D.C., Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Raj Parekh prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-317.
Medical Company Executive Sentenced for Smuggling $18 Million in Misbranded Pharmaceuticals into United StatesRead the Press Release
ALEXANDRIA, Va. – Tzvi Lexier, of Toronto, Canada, was sentenced today to 26 months in prison for conspiring to smuggle misbranded pharmaceuticals into the United States and for the unlicensed wholesale distribution of prescription drugs.
According to court documents, while he was CEO of TC Medical and SB Medical, Lexier instructed subordinates to smuggle misbranded prescription drugs and devices into the United States, including oncology drugs, orthopedic injections, and cosmetic devices. These products were not approved by the FDA and did not contain the labels, warnings, and instructions required by the FDA. In order to smuggle these products into the United States, TC Medical and SB Medical employees used false names and false customs forms, and broke large shipments into multiple smaller shipments. At Lexier’s direction, co-conspirators in the United States stored TC and SB Medical’s products in their private residences, often in violation of safety regulations requiring the pharmaceuticals to be stored at cool temperatures.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Jay V. Prabhu, Kellen S. Dwyer, and Nathaniel Smith III prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No 1:14-cr-397.
Man Sentenced to 12 Years for Distributing Fentanyl Analogue That Killed Florida ManRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael Schoenmann, 31, Spring Green, Wisconsin, was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 12 years in federal prison for attempting to distribute fentanyl, and distributing a fentanyl analogue that resulted in the overdose death of a Florida man. Schoenmann pleaded guilty to these charges on November 16, 2018.
On December 26, 2017, Wyatt Cox, a 25-year-old Florida resident, received a package in the mail containing a bottle of nasal spray containing what was later determined to be a fentanyl analogue. Cox died shortly after ingesting the substance. Based on a comprehensive investigation involving state and federal law enforcement officers, the package was traced back to the defendant, Michael Schoenmann.
From 2017 through March 2018, Schoenmann was running a vendor site on the dark web, advertising and selling fentanyl nasal spray. Schoenmann sold his product throughout the United States. He indicated on his website that he got his fentanyl from overseas and from various vendors, then packaged it as nasal spray to allow addicts like himself to use the fentanyl undetected. Schoenmann was arrested on March 8, 2018, following the execution of a federal search warrant at his residence in Spring Green.
Two of Wyatt Cox’s family members spoke during yesterday’s sentencing hearing, expressing the extraordinary pain, sadness, and loss that they felt. At one point, Cox’s sister acknowledged that both families lost someone – her brother forever, and the defendant for a long time to federal prison. She then told the defendant that she blamed both him and her brother, but she forgave the defendant. Judge Peterson commended her for her words of forgiveness and hoped that the sentencing would provide some justice and healing for both families. Judge Peterson assured the Cox family that Wyatt was not just another statistic.
In addressing Schoenmann, Judge Peterson pointed out that Schoenmann’s addiction was a disease, but that the disease was his responsibility, and noted that not every addict turns to crime to support their addiction. Judge Peterson called Schoenmann a danger to the public, and someone who was willing to do anything to feed their addiction, including exploiting other addicts. Judge Peterson also acknowledged that although Schoenmann did not murder Cox, nor did he want or intend to kill him, fentanyl is such a powerful drug that the risk of death is ever-present, and Schoenmann’s conduct made an overdose death extremely likely.
Judge Peterson concluded by warning Schoenmann that dealing with his addiction is his life’s work, and that a lifetime commitment to his sobriety was his responsibility. Schoenmann apologized to the Cox family, saying simply, “I am so, so sorry.”
U.S. Attorney Blader stated, “Fentanyl and all related substances and analogues are inherently dangerous. Ingesting any illegal substances obtained from the internet and in the mail are extraordinarily dangerous. Users have no idea what is really in the substance and illegal drug makers don’t care about users or the family they may leave behind – the risk cannot be overstated.”
The charges against Schoenmann were the result of an investigation conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, Wisconsin Department of Justice Division of Criminal Investigation, Richland-Iowa-Grant Drug Task Force, Sauk County Drug Task Force, Boscobel Police Department, and the Charlotte County (Florida) Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.
Man Sentenced to 102 months for Using Stolen Identities to Attempt to Defraud Various Financial Institutions of More Than $1.9 Million DollarsRead the Press Release
Memphis, TN – On Wednesday, January 16, 2019, Senior U.S. District Judge Samuel Hardy Mays sentenced Jeremy Jones, 39, of Memphis to a total of 102 months in the Federal Bureau of Prisons for conspiracy to commit identity theft and mail fraud, and separate counts of identity theft, mail fraud, aggravated identity theft, and obstruction of justice. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentencing today.
Jones was originally indicted for the above offenses on February 16, 2016, and on November 21, 2017, after a six-day jury trial in the U.S. District Court, Jones was found guilty as charged of using stolen identities to defraud over 100 individual victims and various financial institutions of more than $1.9 million dollars. In addition, he was found guilty on two counts of tampering with government witnesses.
According to information presented in court, Jones executed a scheme to steal the identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients throughout 2011, 2012 and 2015. Jones used this identifying information to apply for loans and credit cards and open bank accounts in the individuals’ names without their knowledge. A co-conspirator who was employed at Memphis Neurology removed patient information from the company’s database and provided it to Jones upon his request. Jones agreed to compensate the co-conspirator for providing him with this information.
Jones sent and received loan applications, checks and other financial information from numerous lenders throughout the United States via the internet and mail carriers. The potential loss was $1.9 million.
"This is one of the most egregious acts of fraud that has been seen in the Western District of Tennessee. Identity theft and financial fraud of this magnitude and scale by the defendant has victimized hundreds of people by compromising their personal and private information for his own selfish and unjust enrichment, and I am pleased that we have been able to hold the defendant accountable and achieve justice for the victims." said U.S. Attorney D. Michael Dunavant.
David M. McGinnis, the Inspector in Charge of the Charlotte Division of the United States Postal Inspection Service, stated, "Identity theft has a huge financial and emotional impact on individual victims and the American public as a whole. It is especially egregious when the criminals intentionally target patients of a doctor’s office. The U.S. Postal Inspection Service has aggressively investigated cases of identity theft for decades. This case is a prime example of our agency’s commitment to protect the public and hold those accountable that steal from innocent victims."
"Identity Theft is a heinous crime that attacks individuals’ credit worthiness, U.S. financial institutions and our trusted merchants," said Channing Irvin, Special Agent in Charge of the U.S. Secret Service Memphis Field Office. "This case illustrates the significant community impact, whereby a doctor’s office and its patients were victimized. The Secret Service prides itself in protecting our communities and nation’s financial institutions. Identity Theft crimes serve as one of our core violations, which we vigorously investigate."
After multiple sentencing hearings throughout 2018 and 2019, Jones was ordered to pay criminal restitution to the victims in the total amount of $199,698.35. During the sentencing hearing, Judge Mays commented that this case involved "one of the most egregious acts of fraud I’ve seen since being on the bench."
The United States Postal Inspection Service and the United States Secret Service investigated this case. Assistant United States Attorneys Damon K. Griffin and Murre Foster prosecuted the case on behalf of the government.
Kansas Man Charged in Government Contract Fraud SchemeRead the Press Release
KANSAS CITY, KAN. – Troy L. Bechtel, 49, of Overland Park, Kan., is charged in a federal indictment with two counts of major program fraud against the United States and two counts of lying to federal investigators, U.S. Attorney Stephen McAllister said.
The indictment alleges that from August 2009 to April 2013 Bechtel aided and abetted other persons unlawfully to obtain more than $12.7 million from a contract with the Department of Defense.
The indictment alleges Bechtel and other persons falsely represented that United Medical Design Builders, LLC, of Merriam, Kan., was controlled by co-defendant Joseph David Dial, Jr., a disabled veteran of the U.S. Army.
In fact, UMDB was a pass-through company that Dial did not control. The company received a contract through the Service-Disabled Veteran-Owned Small Business program that was awarded by the U.S. Army Corps of Engineers for the design and construction of healthcare facilities at Langley AFB, Andrews AFB, Hanscom AFB, and McGuire AFB.
The indictment alleges Bechtel ran the daily operations for UMDB and made project decisions without reporting to or consulting with Dial. Dial was rarely in the office. He also signed a blank sheet of paper that was scanned for use on official letters and correspondence.
Co-defendant Dial pleaded guilty to one count of major program fraud and one count of wire fraud. He is set for sentencing Jan. 28.
If convicted, Bechtel faces up to 10 years in federal prison on each count of defrauding the government and up to five years on each count of lying to investigators, as well as fines and forfeiture judgment representing the amount of proceeds obtained by committing the offenses set out in the indictment. Investigative agencies include the Small Business Administration - Officer of Inspector General, General Services Administration - Office of Inspector General, Defense Criminal Investigative Service and the Army CID Major Procurement Fraud Unit. Assistant U.S. Attorney Tris Hunt is prosecuting.
Jackson County Gang Member Sentenced to 10 Years for Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss – James Edward Hays, 36, a Simon City Royals gang member from Pascagoula, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 120 months in prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Hays was also ordered to pay a $5,000 fine.
On April 25, 2018, the Jackson County Sheriff’s Department responded to a call of a person passed out behind the wheel of a running car at a gas station. Deputies found Hays, a felon with multiple convictions, with methamphetamine, heroin and a loaded gun. Less than one month later, Hays was found in a motel room with a stolen gun and methamphetamine.
The Jackson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
Harrison County woman admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nicoma L. Knight, of Clarksburg, West Virginia, has admitted to drug distribution, United States Attorney Bill Powell announced.
Knight, age 23, pled guilty to one count of “Unlawful Use of Communication Facility.” She admitted to using a phone to distribute methamphetamine in June 2018 in Monongalia County.
Knight faces up to four 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.
Assistant U.S. Attorney Traci M. Cook is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Former State Department Employee Sentenced to Prison for Student Loan FraudRead the Press Release
ALEXANDRIA, Va. – A Georgia man was sentenced to 15 months in prison today for fraudulently discharging over $250,000 in student loan debt.
In addition to the prison sentence, Corey Cadet Dukes, 39, of Jonesboro, was ordered to pay $244,884.31 in restitution to victims of his crimes, and to a three-year term of supervised release following his prison sentence.
According to court documents, Dukes, formerly of Alexandria, was an employee of the U.S. Department of State from 2013-2017. Simultaneously, Dukes was also a full-time supervisor for a security company providing protection to a federal building in Washington, D.C. Nevertheless, Dukes applied through the Department of Education for a Total and Permanent Disability (TPD) discharge of over $200,000 in student loan debt, affirming that he was unable to work and was earning no income.
The Department of Education conditionally discharged Dukes’ student loans subject to successful completion of a three-year income monitoring period, which required that TPD applicants not earn over the Federal Poverty Guidelines for a family of two, which was no higher than $16,020. Earned income over that amount triggered a repayment obligation and the loans would be reinstated. After failing to respond to multiple requests for proof of income, in October 2016 Dukes submitted a signed self-certification stating: “I, Corey Dukes, did not have any earned income from May 1, 2013 – October 13, 2016.” In reality, during this same period Dukes had earned over $331,000 from his two full-time jobs, and had purchased a Bentley, a Porsche, and other luxury vehicles. The Department of Education permanently discharged over $250,000 of Dukes’ student loan debt.
Court documents revealed that approximately two years later, in June 2018, Dukes discharged an additional $300,000 in personal debt in a Bankruptcy Court in Georgia. Around the time of the bankruptcy proceeding, and at the same time the Department of Veterans Affairs increased his disability rating to 100 percent and ordered Dukes to be given additional benefits, Dukes traveled extensively on vacations, including to Paris, Amsterdam, The Bahamas, Italy, Spain, Greece, Turkey, Egypt, and Cabo San Lucas, among others.
Court documents also revealed that during the period of time from 2013-2018, Dukes also submitted numerous false and misleading statements to the Department of Veterans Affairs in order to obtain first an 80 percent disability rating based on migraine headaches, then a 100 percent disability rating, based in part on a PTSD claim. Documents filed in court show that Dukes had an insider in the VA email him confidential VA adjudication criteria for PTSD that he then used in order to obtain a PTSD rating. At the same time he was working two full-time jobs and engaging in foreign travel, Dukes informed the VA he was unable to work or to function independently.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Steve A. Linick, Inspector General of the State Department, Kathleen S. Tighe, Inspector General of the Department of Education, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. The case was prosecuted by Assistant U.S. Attorneys Kimberly R. Pedersen and Karen L. Taylor, and Special Assistant U.S. Attorneys Russell L. Carlberg and Brian D. Harrison.
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. 1:18-cr-298.
Former State Criminal Investigator Pleads Guilty to ExtortionRead the Press Release
Jackson, Miss. – Frank Saddler, 52, of Ridgeland, Mississippi, pled guilty today, before United States District Judge Henry T. Wingate, to extortion under color of official right, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and Dax Roberson, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General - Southwest Regional Office.
Saddler was a Branch Director with the Mississippi Department of Human Services (“MDHS”), which has oversight of the Supplemental Nutrition Assistance Program (“SNAP”) of the United States Department of Agriculture in Mississippi. Saddler’s duties included investigating violations of the SNAP regulations and pursuing criminal charges against violators.
In entering his guilty plea, Saddler admitted that he extorted money from convenience store owners who had been charged with criminal violations relating to SNAP in exchange for not pursuing the criminal charges against them. Saddler told the store owners that they were paying restitution to the State of Mississippi when in fact they made payments to Saddler which he deposited into his personal bank account.
“Public corruption erodes confidence in our democracy. This defendant put his own greed above the interests of the people he was entrusted to serve. This type of abuse of power will continue to be doggedly investigated and prosecuted by this office. Credit belongs to the FBI and USDA agents and our prosecutors who brought this criminal to justice,” said U.S. Attorney Hurst.
“I want to thank the U.S. Attorney’s Office, Office of Inspector General Special Agents, and our law enforcement partners for their hard work on this investigation. The Office of Inspector General is committed to protecting the integrity of United States Department of Agriculture programs,” said USDA OIG Special Agent in Charge Dax Roberson.
Saddler will be sentenced before Judge Wingate on April 16, 2019. He faces a maximum penalty of twenty years in prison, a fine of up to $250,000, and supervised release of up to three years.
The case was investigated by the FBI and the Office of the Inspector General of the United States Department of Agriculture. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
Former L.A. Sheriff’s Deputy Found Guilty of Lying to FBI Agents as Part of Cover-Up of Attack of Visitor to Men’s Central JailRead the Press Release
LOS ANGELES – A former deputy with Los Angeles Sheriff’s Department was convicted today on federal charges of lying to the FBI about the beating of handcuffed man at the Men’s Central Jail in 2011.
Byron Dredd, 36, was found guilty of making false statements to the FBI, a federal felony offense that carries a statutory maximum penalty of five years in federal prison.
Dredd and five other deputies who were previously convicted and sentenced in relation to the beating were assigned to the Visiting Center at Men’s Central Jail. On February 26, 2011, the victim went to the jail to visit his brother, who was in custody in the jail. Deputies handcuffed the victim and brought him to an employee break room because they suspected he had a cell phone on him. Deputies then beat the victim, who remained defenseless with his arms handcuffed behind his back the entire time. Dredd witnessed the beating from an adjacent room through a metal window. As a result of false reports authored by Dredd and other deputies, the victim was charged with several crimes, including resisting an officer and battery.
Dredd was convicted today of lying to the FBI during an interview on July 17, 2012. Dredd falsely told the FBI that the victim was the aggressor, and that he saw the victim swing at a deputy, tried to push past a deputy in an attempt to escape, and that he saw the victim punch a deputy in the chest. Those statements were lies because the victim remained handcuffed during the entire beating.
“All law enforcement officers will be held accountable for abusing their positions – whether that includes the illegal use of force or lying to cover up a civil rights violation,” said United States Attorney Nick Hanna. “This former deputy actively tried to conceal the illegal actions of his fellow deputies, and today a jury held him accountable for his role in the cover-up of an unjustified beating.”
“The defendant deceived investigators who were investigating very serious crimes, including civil rights abuses and an attempted cover-up,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to hold accountable those who cover up crimes involving civil rights abuses and malfeasance by public officials inside and outside prison walls.”
Dredd is scheduled to be sentenced in this case on May 20 by United States District Judge Dale S. Fischer.
In a previous trial in 2016, a jury was unable to reach a unanimous verdict against Dredd on the false statements. At that trial, Dredd was also acquitted of conspiring to violate the victim’s civil rights and obstructing a federal investigation.
Previously in this investigation, five deputies who participated in the beating and cover-up were convicted and sentenced to prison, including former Sergeant Eric Gonzalez who is serving an eight-year prison term after being found guilty of violating the victim’s civil rights and falsifying reports.
This case is the result of an investigation by the FBI, and is the last in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 22 members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
The case against Dredd is being prosecuted by Assistant United States Attorneys Veronica Dragalin and Agustin D. Orozco of the Public Corruption and Civil Rights Section.
Drug Trafficker Sentenced to 121 Months’ for Conspiring to Distribute Heroin, Cocaine and Marijuana Across New York CityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, John Santos was sentenced by United States District Judge Frederic Block to 121 months’ imprisonment, to be followed by five years’ supervised release, following his December 2017 guilty plea to participating in a conspiracy to distribute a kilogram or more of heroin, five kilograms or more of cocaine, and marijuana.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Angel M. Melendez, Special Agent-in-Charge, Homeland Security Investigation, New York (HSI), Keith M. Corlett, Acting Superintendent, New York State Police (NYSP), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Santos will serve a significant prison term for his role as the leader of a large-scale drug trafficking ring,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are responding to the opioid epidemic by vigorously investigating and prosecuting those like the defendant who seek to line their own pockets by selling dangerous drugs in our communities.”
“This sentencing is one of many successes in law enforcement’s battle against opioid abuse because it serves as a reminder that we are dedicated to identifying, investigating and dismantling drug trafficking organizations,” stated DEA Special Agent-in-Charge Donovan. “Enforcement is a key factor in fighting opioid abuse and in stopping fatal overdoses in our cities because it takes away their means to wreak havoc.”
“Running the full gamut of drug trafficking, John Santos ran a criminal organization that flooded the streets on New York City with cocaine, heroin and marijuana,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing proves once again that being employed as a drug dealer in this city comes with severe consequences.”
“The sentencing of Santos sends a clear message that we will not tolerate this kind of activity anywhere in New York State,” stated NYSP Acting Superintendent Corlett. “Santos had no regard for the damage his actions inflicted upon the communities where he trafficked narcotics. The State Police will continue to work aggressively with our federal and local partners to stop the flow of illegal and dangerous drugs onto our streets.”
“The NYPD’s efforts to combat the far-reaching opioid crisis by ridding New York City streets of drug traffickers are greatly strengthened by our close partnerships with the U.S. Attorney for the Eastern District and the Drug Enforcement Administration,” stated NYPD Commissioner O’Neill. “Anyone who deals in illegal narcotics should understand that the nation’s best investigators will stop at nothing to fight crime and keep safe all the people we serve.”
Between July 2016 and March 2017, Santos led a Bronx-based drug trafficking ring that distributed large amounts of heroin, cocaine and marijuana throughout New York City, including to out-of-state customers. At the time of Santos’s arrest, DEA special agents seized quantities of those controlled substances, a kilogram press and other drug paraphernalia in his Bronx apartment. Santos also served as the principal point of contact for the narcotics source of supply based in the Dominican Republic.
Two co-defendants, Robert Santos and Kevin Brito, previously pleaded guilty and are awaiting sentencing.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Ryan C. Harris is in charge of the prosecution.
The Defendant:
JOHN SANTOS
Age: 36
Bronx, New YorkE.D.N.Y. Docket No. 17-CR-147 (FB)
Bismarck Man Indicted for Multiple Child Sexual Abuse Charges on Fort Berthold Indian ReservationRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on January 17, 2019, Owen Cordell Smith, age 28, from Bismarck, ND, was charged by an Indictment returned on December 5, 2018, for three counts of Aggravated Sexual Abuse of a Child under 12 Years of Age; Abusive Sexual Contact of a Child under 12 Years of Age; and two counts of Abusive Sexual Contact of a Child between 12 and 16 Years of Age.
The Indictment alleges that between May 2011 and May 2015, Smith, an enrolled member of the Navajo Nation at Window Rock, AZ, engaged in sexual acts with three minor females, 12 years old and younger, on the Fort Berthold Indian Reservation, ND. Smith’s Initial Appearance and Arraignment was before Magistrate Judge Charles Miller Jr., at 2:30 p.m., January 17, 2019.
The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case was investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
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17 January 2019
Woman Sentenced to 10 Months in Prison for Hoax Bomb Threat Against Claremore SchoolsRead the Press Release
Chief Judge Gregory K. Frizzell sentenced Stephanie Louise Montgomery, 49, of Claremore to ten months in Federal prison followed by three years of supervised release for providing False Information about Bombs in Schools. As part of the plea agreement, Montgomery will pay restitution in the amount of $6,391.78 to law enforcement agencies and first responders, including the Claremore Police and Fire Departments, the Tulsa Police Department, and the Oklahoma Highway Patrol, for costs incurred when responding to and investigating the false threats. The Court also imposed a mandatory special monetary assessment of $100.00.
On March 27, 2018, Montgomery made a threatening phone call to the Claremore High School, indicating there were “five bombs in backpacks at the high school and ten more bombs located at elementary schools.” Approximately 7,000 students, faculty, coaches, and staff from all Claremore schools were evacuated or sheltered in place until being transported to alternate safe locations. Multiple law enforcement personnel responded and performed sweeps of the seven area schools but found no explosive devices. The threats followed shortly after the Marjory Stoneman Douglas High School mass shooting in Parkland, Florida.
“Hoax bomb threats are no joke, and this sentence reflects the seriousness of the crime. The response by law enforcement and school officials in the moments after receiving the threats was excellent. They mobilized quickly and communicated effectively to protect our school children, teachers, and administrators. Public safety is our highest priority. If you engage in hoax bomb threats, we will find you and hold you accountable,” said United States Attorney Trent Shores.
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, the Rogers County Sheriff’s Department, the Rogers County District Attorney’s Office, the Oklahoma Highway Patrol Bomb Squad, the Claremore Police Department, and the Tulsa Police Department. Assistant United States Attorney Robert T. Raley handled the prosecution of the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.