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11 December 2018
FCI Danbury Correctional Officer Pleads Guilty to Sexually Abusing InmateRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Guido Modano, Special Agent in Charge of the Department of Justice Office of the Inspector General’s New York Field Office, today announced that CARLOS SANCHEZ, 33, of Middlebury, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to sexually abusing an inmate at the Federal Correctional Institution in Danbury (FCI Danbury).
According to court documents and statements made in court, Sanchez was employed as a correctional officer at FCI Danbury. On two occasions in July and August 2018, Sanchez engaged in sexual activity with a female inmate at the prison.
Sanchez pleaded guilty to one count of sexual abuse of a ward, an offense that carries a maximum term of imprisonment of 15 years. A sentencing date has not been scheduled.
Sanchez is released on a $50,000 bond pending sentencing. He has resigned from the Federal Bureau of Prisons.
This matter is being investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Evans Landscaping Officials Convicted of Defrauding City, State 'Small Business' ProgramsRead the Press Release
CINCINNATI – A jury has convicted Evans Landscaping, Inc. and company executives on all counts charged in a fraud case.
The company; the owner of Evans Landscaping, Inc., Doug Evans; and the vice president of operations for Evans Landscaping, Jim Bailey, were convicted of defrauding the City of Cincinnati and other public entities through fraudulent small business contracts.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Ohio Attorney General Mike DeWine announced the verdict reached today following a trial that began on November 9.
Evans Landscaping is an Ohio company headquartered in Cincinnati that performs demolition, site-work, grading, hauling, recycling and landscaping services. Given the size and ownership of the company, Evans Landscaping does not qualify as a small business enterprise (SBE).
In order to qualify for the City of Cincinnati’s SBE program, a company must be independently controlled, operated and managed by a qualifying individual whose net worth does not exceed certain limits. The program also requires that the company be directly responsible for providing the supplies or services to the City without relying upon others who are not owners or employees of the company.
Similarly, the State of Ohio has established an Encouraging Diversity, Growth, and Equity program (EDGE) for economically disadvantaged businesses that are at least 51% owned and controlled by an economically disadvantaged person. The size of the business must not exceed the definition of a “small business.”
In 2008, the defendants (along with others) established, controlled and operated a demolition company, Ergon Site Construction, LLC, for the benefit of Evans Landscaping. Ergon’s president and owner, Korey Jordan, had no prior experience in the field but provided IT services for Evans Landscaping. Ergon (with the help of the coconspirators) fraudulently obtained certifications as an SBE and EDGE contractor while concealing Evans Landscaping’s involvement in and control over Ergon.
Evans and Evans Landscaping provided startup funds to Ergon. Jordan did not make any capital contributions to the establishment of the company.
Evans Landscaping personnel prepared and filed the legal documentation to register Ergon as an LLC, created the company’s name and logo, ordered Ergon apparel, and bought equipment labels with Ergon’s logo.
Jordan performed little work for Ergon and had little, if any, actual control over Ergon’s management, finances and operations. He was not permitted to make certain decisions or take certain actions without Doug Evans’ approval.
Evans paid Jordan a monthly salary through the Ergon payroll and Evans Landscaping employees handled virtually all of the accounting and office management functions of Ergon. For example:
- Ergon’s bookkeeping was kept by Evans Landscaping employees;
- Evans Landscaping personnel had Jordan sign blank Ergon checks for the employees to use;
- Evans Landscaping was a guarantor for Ergon’s line of credit and arranged for the purchase of two Mack Trucks in Ergon’s name;
- At various times, Ergon’s business office and address was located on property owned by Evans or one of his companies;
- Evans, Bailey and others controlled hiring and firing by Ergon, and at one point, Evans terminated the Ergon health care plan;
- Evans Landscaping housed, maintained and dispatched the vehicles and equipment in Ergon’s name, which was used by both companies; and
- Evans Landscaping officers and employees directed virtually all field and construction operations of Ergon, including on-site supervision and the managing of Ergon field workers.
From 2011 through 2014, Ergon bid on and received more than 100 residential demolition contracts with the City of Cincinnati, totaling approximately $1.9 million, by leveraging Ergon’s fraudulent SBE status.
In a similar fashion, during the same timeframe, Evans Landscaping bid on State demolition and construction projects – particularly public school, university and municipal projects – by claiming Ergon would provide a percentage of the services and receive part of the funds to be paid.
On at least one occasion, Evans Landscaping listed a different subcontractor, won the contract, and performed the work without using, paying or even notifying the EDGE subcontractor named.
Specifically, the company and both men were convicted of two counts of conspiracy to commit wire fraud and three counts of wire fraud. The two men were also convicted of one count of misprision of a felony.
Korey Jordan (president of Ergon), Maurice Patterson (former CFO of Evans Landscaping), John Dietrich (former CFO of Evans Landscaping) and Michael Moeller (former manager at Evans Landscaping) have pleaded guilty in relation to this case.
U.S. Attorney Glassman commended the investigation of this case by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation, as well as Assistant United States Attorney Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter, who prosecuted the case.
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Erie Gang Member Sentenced to 6+ years in Prison for Drug ConspiracyRead the Press Release
ERIE, Pa. – A former resident of Erie, Pennsylvania pleaded guilty and was sentenced in federal court to 78 months in federal prison on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Andre Javon Knight, 35.
According to information presented to the court, the FBI’s Erie Area Gang Law Enforcement (EAGLE), Safe Streets task force conducted an investigation into the drug dealing and violent crime activity of members of a local criminal network identifying itself as "1800". The court was advised that court authorized intercepts of telephone communications between members of the group and others revealed Knight was a source of supply of cocaine to the charged co-conspirators. According to information presented to the court, Knight and another co-conspirator discussed the quality of the cocaine and the process of "cooking" it into crack.
The federal sentence was ordered to be served consecutively to a 25 to 50 month sentence Knight received in state court for a firearm offense.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department for the investigation leading to the successful prosecution of Knight.
Elk County Man Facing Multiple Child Pornography ChargesRead the Press Release
ERIE, Pa. - A resident of Ridgway, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The eight-count superseding indictment named Jesse Porter, 41, as the sole defendant.
According to the indictment presented to the court, Porter took sexually explicit images and videos of two minor victims. He also distributed and received computer images depicting minors engaging in sexually explicit conduct.
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.
The law provides for a maximum total sentence of 220 years in prison, a fine of $2,000,000, 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations 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.
Eagle Butte Man Sentenced for Burglary and LarcenyRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of separate and unrelated Burglary and Larceny offenses was sentenced on December 10, 2018, by U.S. District Judge Roberto A. Lange.
Tommy Shaving, age 49, was sentenced to 12 months and a day in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100 on each offense. The terms of imprisonment and supervised release for the two offenses are to be served concurrently, or at the same time as each other.
Shaving was indicted by a federal grand jury on July 10, 2018. He pled guilty on September 24, 2018.
The burglary conviction stemmed from an incident on November 30, 2017, when Shaving unlawfully entered the United Church of Christ Church in Eagle Butte and took 3 star quilts valued at $1,200.00.
The larceny conviction stemmed from October 12, 2017, and October 28, 2017, when Shaving took blank checks from an individual and cashed 16 unauthorized checks for a total amount of $1,035.00.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Shaving was immediately turned over to the custody of the U.S. Marshals Service.
Durable Medical Equipment Provider Agrees to Pay $1.6 Million to Resolve False Claims AllegationsRead the Press Release
SALT LAKE CITY -- Benjamin D. George and Jody C. Rookstool, and their company, Western Medical Group, have agreed to pay $1,634,844 million to settle False Claims Act allegations, U.S. Attorney for Utah John W. Huber announced today. The settlement concerns conduct initiated by Western Medical and concludes two qui tam actions filed by whistleblowers in December 2013 and February 2014.
The settlement resolves allegations that the company caused the submission of false claims to Medicare. Complaints were based primarily on allegations surrounding Western Medical’s use of a telemarketing scheme to sell knee and back braces to Medicare beneficiaries. The United States alleged that the company violated Medicare’s prohibition against telephone solicitation of covered products to beneficiaries.
“Misuse of taxpayer dollars is something we take very seriously. We use the False Claims Act as a tool to protect the public and recover taxpayer dollars that were lost through fraud. We vigorously pursue these cases on behalf of Utah taxpayers. The money recovered will be put back into federal health care programs where it can be used to provide medical services for the elderly and disable,” U.S. Attorney Huber said today.
“The FBI takes health care fraud seriously and we work closely with our federal partners to identify, investigate and prosecute the crime,” said Eric Barnhart, Special Agent in Charge of the FBI’s Salt Lake City Field Office. “The public should beware of telemarketers who make direct telephone solicitations with no legitimate medical referral and attempt to induce them into purchasing medical products. Promises to waive co-payments or efforts to bypass one's legitimate prescribing physician are signs of a fraudulent operation. The FBI and its partners also applaud those who blow the whistle on fraud. It’s an act of courage to come forward and share one's observations with law enforcement.”
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Healthcare providers who improperly bill our programs at the expense of taxpayers will be pursued and held accountable for their actions.”
The United States’ investigation began with two qui tam complaints filed by former Western Medical employees. The qui tam provisions of the False Claims Act allow for whistleblowers, or relators, to file suit for violations of the Act on behalf of the United States.
This matter was investigated by the U.S. Department of Justice, the Utah U.S. Attorney’s Office’s Affirmative Civil Enforcement Section, the U.S. Department of Health and Human Services Office of Inspector General, the FBI, and the Office of Personnel Management (OPM).
The cases are docketed as United States ex rel. Craig Bearden v. Arizona Medical Supply, LLC, dba Western Medical and Senior First Medical; KMR Medical, LLC; KPM Capital, LLC; Privacy Maxx, LLC; and Jody Rookstool, No. 2:13-cv-01127 and United States, ex rel., Michelle Boucher, P.A., v. KPM Capital, LLC dba Western Medical Group; KMR Medical LLC; Jody Rookstool; Benjamin George; David Nolan; John Does #1-100, Ficticious Names, No. 2:14-cv-00092.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Drug Trafficker Sentenced to Eight Years in Prison for Distributing Narcotics in Northwest Washington and MarylandRead the Press Release
WASHINGTON – Dontae Robey, 36, of Landover, Md., was sentenced today to eight years in prison for trafficking in heroin, crack, and powder cocaine in the Shaw area of Northwest Washington and Maryland, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Robey pled guilty in September 2018 before the Honorable Timothy J. Kelly in the U.S. District Court for the District of Columbia to one count of unlawful possession with intent to distribute 100 grams or more of heroin. The plea agreement, which was contingent upon the Court’s approval, called for a sentence of eight years in prison, to be followed by four years of supervised release. Judge Kelly accepted the plea and sentenced Robey accordingly.
As part of his plea agreement, Robey took responsibility for 110 grams of heroin, 67 grams of crack cocaine, and three grams of cocaine that were present in a silver Infiniti that Robey was operating on Nov. 19, 2017, following a traffic stop performed by members of MPD’s Narcotics and Special Investigations Division’s Criminal Interdiction Unit.
Additionally, on May 2, 2018, members of the FBI’s Safe Streets Task Force and MPD’s Third District Crime Suppression Team arrested Robey in the 700 block of S Street NW pursuant to an arrest warrant. Officers recovered a Lexus key on Robey’s person and a large amount of cash. A half-block away, law enforcement located a blue Lexus ES 350. Inside the vehicle, law enforcement recovered approximately 40 grams of heroin located in a small storage compartment to the left of the steering wheel. As part of his plea agreement, Robey admitted to possessing the narcotics inside the Lexus, and acknowledged that he maintained a residence in Landover, where he packaged quantities of narcotics for distribution and then distributed those narcotics in the District of Columbia.
Robey has three prior drug trafficking convictions related to offenses in the same location where he was arrested on May 2, 2018, all resulting from his possession of packaged narcotics in the neighborhood. In 2001, he was convicted of trafficking narcotics following his possession of 29 individually packaged ziplocs of crack cocaine. In 2002, he was convicted of trafficking narcotics after he was found in possession of 83 individually packaged ziplocs of crack cocaine. In 2008, he was convicted of attempting to distribute crack cocaine to an undercover officer.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle and Jeannette Litz, Assistant U.S. Attorney Laura Crane, who assisted with the investigation, and Assistant U.S. Attorneys Christopher Macchiaroli and David Misler, who prosecuted the case.
District Man Pleads Guilty to Murder Charge Related to 2016 Shooting in Northeast WashingtonRead the Press Release
WASHINGTON – Nathaniel Taylor, 23, of Washington D.C., has pled guilty to a charge of second-degree murder while armed stemming from his involvement in a confrontation that ended with him shooting the victim in the back of the head, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Taylor pled guilty on Dec. 10, 2018, in the Superior Court of the District of Columbia. The plea calls for a sentence of up to 20 years in prison. He is to be sentenced on March 8, 2019, by the Honorable Juliet McKenna.
According to a proffer of facts submitted at the plea hearing, the shooting took place at approximately 10:38 p.m. on April 23, 2016 in the 4900 block of Just Street NE. The victim, Nuru Frenche, had travelled with a friend to meet with Taylor and his co-defendant, Anthony Blackmone, for the purpose of purchasing firearms. Both of the victims were unarmed.
After Mr. Frenche exited the car holding at least $500 in cash, Taylor initiated a confrontation with him. The confrontation ended with Taylor firing his weapon at Mr. Frenche and shooting him in the back of the head. Mr. Frenche’s friend escaped. Shortly thereafter, officers from the Metropolitan Police Department’s Seventh District responded to the scene and located Mr. Frenche, 23, who died from his wounds a few days later.
Blackmone, 23, of Washington, D.C., was arrested in May of 2016 and pled guilty earlier this year to charges of voluntary manslaughter and attempted robbery for his role in the crimes. . Taylor was arrested in February of 2017 and has remained incarcerated ever since.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigative Analyst Zachary McMenamin; Forensic Examiner John Marsh; Paralegal Specialists Stephanie Gilbert, Meridith McGarrity, and Stephanie Siegerist; Litigation Technology Specialist Leif Hickling; Victim/Witness Service Coordinators Katina Adams-Washington and LaJune Thames, Witness Security Specialist M. LaVerne Perry, and Victim/Witness Advocate James Brennan.
Finally, they commended the work of Assistant U.S. Attorneys Gilead Light and John Timmer, who investigated and prosecuted the case.
Detroit Man Pleads Guilty to Federal Fentanyl ChargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man caught with fentanyl earlier this year in Huntington pled guilty yesterday to a federal drug charge, announced United States Attorney Mike Stuart. Maurice D. Eaddy, Jr., 20, entered a guilty plea to possession with intent to distribute fentanyl in federal court in Huntington. Stuart commended the investigative efforts of the Huntington Police Department.
“Drug dealers peddling fentanyl, or other illicit drugs laced with fentanyl, will face federal drug charges,” said United States Attorney Mike Stuart. “We aim to reduce the supply of fentanyl through aggressive prosecution of fentanyl dealers and ultimately save lives.”
On May 23, 2018, officers with the Huntington Police Department were conducting surveillance at the Greyhound bus station in Huntington when they observed Eaddy and another individual known to investigators arrive on a bus from Detroit. Officers continued to conduct surveillance and observed Eaddy and the other individual enter a residence on West 7th Avenue in Huntington. Eaddy was then seen leaving the residence and entering a vehicle which was subsequently stopped by officers. During the traffic stop, officers recovered a bag containing over 100 grams of fentanyl from Eaddy. Eaddy admitted that he was taking the fentanyl to a local motel to store it for the other individual and that he intended to provide additional fentanyl to the driver of the vehicle in which he was riding during the stop.
Eaddy faces up to 20 years in federal prison when he is sentenced on March 11, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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DEA Agent Arrested for Participating in Decade-Long Narcotics Conspiracy and Providing Firearms to Drug Trafficking OrganizationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Ari C. Shapira, Special Agent in Charge of the Miami Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Robert A. Bourbon, Special Agent in Charge of the Miami Field Office of the United States Department of Justice, Office of the Inspector General (“DOJ OIG”), announced the unsealing today of an Indictment charging DEA agent FERNANDO GOMEZ for his participation in a conspiracy to distribute cocaine and his possession of firearms, and aiding and abetting the possession of firearms, in furtherance of that drug conspiracy. GOMEZ was arrested this morning in Chicago and will be presented Magistrate Judge Susan E. Cox in the Northern District of Illinois this afternoon.
As alleged in the Superseding Indictment[1], GOMEZ, while working as a detective with the City of Evanston Police Department in Illinois, obtained firearms from drug dealers, transported those firearms to Puerto Rico, and provided those firearms to Jose Martinez-Diaz, a/k/a “Tony Zinc,” who is also charged in the Superseding Indictment. GOMEZ then joined the DEA so that he could help members of the narcotics conspiracy, including Martinez-Diaz, evade prosecution by law enforcement.
Martinez-Diaz was previously charged for his participation in La Organizacion de Narcotraficantes Unidos (“La ONU”), a racketeering enterprise involved in drug dealing and murders. Eight other members of La ONU were also charged with various racketeering, drug trafficking, murder, and firearms offenses. In addition to the charges against GOMEZ, the Superseding Indictment contains charges that had previously been brought against Martinez-Diaz and the eight other defendants. The case is assigned to U.S. District Judge Jesse M. Furman.
U.S. Attorney Geoffrey S. Berman said: “Fernando Gomez is a special agent of the DEA, an organization committed to upholding the nation’s drug laws and relentless in its pursuit of narcotics traffickers. But as alleged, Gomez joined the DEA to betray those laws, and to help narcotics traffickers evade detection by law enforcement. He will now be prosecuted to the full extent of the law.”
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FERNANDO GOMEZ, 41, of Chicago, Illinois, is charged in the Superseding Indictment with one count of participating in a narcotics conspiracy involving the distribution of five kilograms or more of cocaine, and one count of using and carrying firearms during and in relation to the narcotics conspiracy, possessing firearms in furtherance of the narcotics conspiracy, and aiding and abetting and the possession of firearms, some of which were brandished and discharged. GOMEZ faces a maximum penalty of life in prison and a mandatory minimum penalty of 20 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 the judge.
Mr. Berman praised the outstanding investigative work of USPIS, DEA, ATF, DOJ OIG, 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 Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes, Andrew Thomas, and Lara Pomerantz are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Superseding Indictment and the descriptions of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Crawford County Man Charged with Offenses related to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Spartansburg, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The 16-count second superseding indictment named Michael Robert Heinrich, 67, as the sole defendant.
According to the superseding indictment presented to the court, Heinrich took sexually explicit photos of two minor victims who were under the age of five. Heinrich also possessed computer images depicting other minors engaging in sexually explicit conduct.
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.
The law provides for a maximum total sentence of 470 years in prison, a fine of $4,000,000, 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police 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.
Court Orders $857,868 in Penalties Against Technical Marine Maintenance Texas and Gulf Coast Workforce in Immigration-Related Discrimination LawsuitRead the Press Release
The Department of Justice announced that it has received a court order yesterday awarding the United States $857,868 in civil penalties, along with other relief, in the Department’s immigration-related employment discrimination lawsuit against Louisiana-based Technical Marine Maintenance Texas LLC (TMMTX), which provides contract shipyard labor, and Gulf Coast Workforce LLC (GCW), a related company. The court previously found that the companies violated the Immigration and Nationality Act (INA) by discriminating against workers based on their citizenship status during the employment eligibility verification process.
The court’s Dec. 10 order follows its June 28 ruling that from at least January 2014 until at least July 2017, TMMTX limited the types of documentation different groups of workers could provide to establish their work authorization based on the workers’ citizenship status. The United States’ complaint against the company, filed in July 2017, alleged that the company asked U.S. citizens to produce “IDs” and Social Security cards, while requesting immigration documents from non-U.S. citizens. After the companies refused to comply with court procedures and orders during the litigation, the court sanctioned the companies and held both companies liable for discriminatory documentary practices. The INA prohibits employers from limiting workers’ choice of documentation to present for employment verification based on the workers’ citizenship, immigration status, or national origin.
The Dec. 10 order resolves outstanding issues about the penalties and remedies to be awarded to the United States. In adopting the Department’s penalty recommendation, the court considered TMMTX’s and GCW’s misconduct during the litigation and the companies’ ongoing failure to submit any evidence to the court. In addition to the $857,868 civil penalty for which TMMTX and GCW are jointly and severally liable, the court’s order yesterday granted the Department’s request that the companies train their staff on the INA and be subject to departmental monitoring and reporting requirements for three years.
“The Civil Rights Division works tirelessly to enforce laws that protect U.S. citizens and non-U.S. citizens from discriminatory conduct in the workplace,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Today’s decision reminds employers that they must take seriously their obligations to avoid citizenship status-based discrimination in the employment eligibility verification process.”
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Coordinated Health and CEO Pay $12.5 Million to Resolve False Claims Act Liability for Fraudulent BillingRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Coordinated Health Holding Company, LLC (“Coordinated Health”) and its founder, principal owner, and Chief Executive Officer, Emil DiIorio, M.D., agreed to settle allegations under the False Claims Act that they submitted false claims to Medicare and other federal health care programs for orthopedic surgeries. Coordinated Health agreed to pay $11.25 million and DiIorio agreed personally to pay $1.25 million, for total settlement of $12.5 million. Coordinated Health has also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services that will require regular monitoring of its billing practices for five years.
Coordinated Health is a for-profit hospital and health system based in the Lehigh Valley region of Pennsylvania. It employs approximately 100 physicians, approximately 30 of whom are board-certified orthopedic surgeons. Dr. DiIorio is a board-certified orthopedic surgeon.
The government alleges that Coordinated Health and Dr. DiIorio engaged in a scheme to improperly unbundle claims for reimbursement for orthopedic surgeries in order to artificially inflate reimbursements from federal healthcare payers. Medicare and other public healthcare insurers reimburse physicians and hospitals a global fee for many types of orthopedic surgeries. The global fee is a single payment for all parts of a surgery. Although electronic safeguards automatically block separate reimbursements for parts of the same surgery when the global fee is paid, those safeguards can sometimes be circumvented when billing codes are misused. For example, a medical provider can circumvent the system by affixing a billing code, Modifier 59, to its request for payment. That billing code informs the payer that a separately billed service was not part of the original surgery and is appropriate to separately pay. It is improper “unbundling” when a provider submits a claim for a global reimbursement for a surgery and misuses Modifier 59 to separately bill for parts of the same surgery.
The government alleges that from 2007 through mid-2014, Coordinated Health routinely exploited Modifier 59 to improperly unbundle orthopedic surgery claims, including for many total joint replacement and arthroscopic surgeries. As a consequence, federal healthcare payers, including Medicare and Medicaid, overpaid Coordinated Health by millions of dollars.
The government further alleges that Dr. DiIorio should have stopped the illegal unbundling. Instead, beginning in April of 2009, Dr. DiIorio changed how he wrote operative reports so that Coordinated Health billers could maximize improperly unbundled reimbursements for his knee, hip and shoulder surgeries using Modifier 59.
For example, in his total knee replacement operative reports prior to April 2009, Dr. DiIorio rarely diagnosed any patient with poor patellar tracking and stated in almost every report that an incision sometimes necessary to improve patellar tracking, called a “lateral retinacular release,” was unnecessary. A lateral retinacular release performed during a total knee replacement is part of the global surgery reimbursement for a knee replacement. However, in almost every knee replacement operative report after April 1, 2009, Dr. DiIorio diagnosed the patient with poor patellar tracking and stated he performed a lateral retinacular release. Each time, Coordinated Health used Modifier 59 to improperly bill for a lateral retinacular release as if one was performed separate from the knee replacement.
Top Coordinated Health executives were directly informed at least twice that Coordinated Health improperly unbundled many orthopedic surgeries by misusing Modifier 59. Two separate outside coding consultants hired by Coordinated Health, one in 2011 and one in 2013, identified the improper unbundling during coding audits and warned Coordinated Health to stop. The 2013 consultant specifically advised Coordinated Health to self-report and repay Medicare and other federal payers; the consultant also provided on-site training on the proper use of Modifier 59 to Coordinated Health coders in November 2013. Motivated by its bottom line, Coordinated Health simply ignored the consultants’ recommendations and continued abusing Modifier 59 to improperly unbundle orthopedic surgery claims until mid-2014.
“The alleged corporate culture and leadership that promoted this conduct and allowed it to continue despite crystal clear warnings is shameful,” said U.S. Attorney William M. McSwain. “If true, it amounts to theft of public funds and a fraud on Medicare, Medicaid, and federal employee health insurers. We are unaware of any unbundling scheme that has had a bigger impact on federal funds. My Office will continue to hold businesses and individuals accountable for this type of wrongdoing.”
“We expect providers to play by the rules and to act responsibly,” said Maureen R. Dixon, Special Agent in Charge for U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) in Philadelphia. “Providers who fail to follow the rules should expect to be investigated by HHS-OIG and our fellow law enforcement partners.”
“I would like to express my gratitude for the dedication and professionalism exhibited by our staff, their law enforcement partners, and the U.S. Attorney’s Office in the investigation and prosecution of this matter,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, U.S. Office of Personnel Management. “Their efforts protect the Federal Employee Health Benefits Program from those who would seek to defraud the program through unscrupulous and illegal billing practices.”
Kenneth Cleevely, U.S. Postal Service Office of Inspector General Special Agent in Charge, Eastern Area Field Office, stated the following: “Benjamin Franklin stated ‘There is no kind of dishonesty into which otherwise good people more easily and frequently fall than that of defrauding the government.’ I believe that quote rings true in this case. When health care providers choose to take advantage of the federal workers compensation program, Special Agents with the U.S. Postal Service Office of Inspector General will work with our law enforcement partners to see that they are held accountable. To report health care fraud relating to the Postal Service, contact special agents at www.uspsoig.gov or 888-USPS-OIG.”
“Coordinated Health and Dr. Dilorio fraudulently billed federal health care programs, including the U.S. Department of Labor’s Office of Workers’ Compensation Programs (OWCP), for the reimbursement of false claims submitted for orthopedic surgery procedures. We will continue to work with OWCP and our law enforcement partners to protect the integrity of the Federal Employees’ Compensation Act,” said Richard Deer, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, U.S. Office of Personnel Management Office of the Inspector General, the United States Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorney John T. Crutchlow and Auditor George Niedzwicki.
Columbus Woman Sentenced for Committing Tax FraudRead the Press Release
COLUMBUS, Ohio – Tawnya Writesel, also known as Tawnya Rutan, 40, of Columbus, was sentenced in U.S. District Court to 12 months and one day in prison and was ordered to pay more than $108,000 in restitution to the Internal Revenue Service (IRS) for conspiring to submit false claims for income tax refunds with the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the sentence handed down by Senior U.S. District Judge James L. Graham.
According to court documents, between April 2012 and September 2015, Writesel conspired to defraud the IRS by filing approximately 100 false income tax returns in an attempt to obtain fraudulent income tax refunds totaling approximately $548,382.00. As a result of the false income tax return filings, a total of $226,677.50 in fraudulent income tax refunds was released by the IRS to Writesel and/or other co-conspirators.
Writesel used the identification of real people, including names, social security numbers and dates of birth, and used the identifying information as either the taxpayers or the dependents on the false income tax returns. The majority of these false tax returns contained fictitious information including false Schedule C income and expenses, and fraudulently claimed education and Earned Income Credits.
Co-defendants Michael (also known as Mickey) A. Prisley, Amy K. France and Denard T. Nelson were also charged in relation to this case.
Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County from approximately August 2011 through January 2014. Prisley pleaded guilty in April 2018 to one count of conspiracy to submit false claims and is awaiting sentencing. Prisley was sentenced in September 2018 to twelve months and one day in prison and was ordered to pay $250,220 in restitution.
France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution.
Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.
“This is the last defendant to be sentenced in this conspiracy, one in which they all chose to line their pockets with stolen income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who prosecuted the case.
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Columbus Couple Charged with Crimes Related to Violent, Armed Bank Robbery in WhitehallRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged two Columbus individuals with crimes related to an armed robbery in September in Whitehall.
Robert K. Mason, 42, and Bretta L. Nallen, 43, both of Columbus, were charged in the indictment returned here yesterday.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Whitehall Police Chief Mike Crispen and Columbus Police Chief Kim Jacobs announced the charges.
According to the indictment, on September 26, 2018, Mason stole more than $12,000 from the Huntington National Bank on East Broad Street in Whitehall during an armed robbery.
An affidavit in this case details that, upon entering the bank, Mason brandished a handgun and ordered customers to the floor. He allegedly vaulted the counter and demanded money from bank tellers, striking two of the tellers with the gun.
One bank employee was struck in the back of the head and one was struck in the face.
From September 26 until November 2, 2018, Nallen allegedly served as an accessory to the crime by misleading authorities in order to evade Mason’s apprehension.
Both defendants also allegedly conspired to tamper with evidence by attempting to hide the firearm used during the robbery.
Specifically, Mason is charged with one count of bank robbery (up to 25 years), one count of conspiracy to tamper with evidence (up to 20 years), and one count of using a firearm during a crime of violence, (seven years up to life in prison).
Nallen is also charged with one count of conspiracy to tamper with evidence, as well as one count of being an accessory after the fact, a crime punishable by up to 15 years in prison.
The defendants are scheduled to appear in federal court today at 2:30pm before U.S. Magistrate Judge Chelsey M. Vascura.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Whitehall and Columbus divisions of police, as well as Assistant United States Attorneys David M. DeVillers and S. Courter Shimeall, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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California Man Given More than 15 Years in Prison for Trading Cocaine for Machine Gun, Other FirearmsRead the Press Release
MEDFORD, Ore. – Gonzalo Manzo, 33, of Fresno, California, was sentenced today to 188 months in federal prison and three years’ supervised release for conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, in 2017, Manzo coordinated the shipment of a kilogram of cocaine from California to Southern Oregon. Manzo and his co-conspirators sold the cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Oregon in exchange for six Colt .38 Super caliber pistols, two Beretta 9mm pistols with silencers, a Glock 9mm machine gun and $21,000 in cash. Manzo intended for the firearms and cash to be transported back to California but agents arrested Manzo and his co-conspirators and the firearms were seized by law enforcement.
Manzo previously pleaded guilty to one count each of conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime on April 27, 2018.
The case was investigated by ATF and prosecuted by Nathan J. Lichvarcik and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Photos 1-3: Firearms received in exchange for cocaine
Photos 4-7: Screenshots from a 2015 YouTube music video depicting Manzo with firearms
Buffalo Man Sentenced to 300 Months in Prison Following RICO ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Kevin Allen, 38, aka Killer Kev, of Buffalo, NY, who was convicted following a seven-week jury trial of multiple RICO, drug and gun charges, was sentenced to serve 300 months in prison by U.S. District Judge Richard J. Arcara. The sentence will be served consecutive to a 25 year to life sentence imposed by New York State following the defendant’s conviction on a murder charge.
Allen was convicted along with co-defendant Thamud Eldridge of Racketeering Influenced Corrupt Organization (RICO), RICO conspiracy, narcotics conspiracy, possession of firearms in furtherance of drug trafficking, and the trial included evidence of the defendant’s role in conspiring to target drug dealers for gun-point robberies, and included evidence the Allen conspired to kidnap and rob a Buffalo-area drug dealer of kilograms of cocaine.Assistant U.S. Attorneys Joseph M. Tripi and Meghan A. Tokash, who handled the prosecution of the case, stated Allen and Eldridge were members and associates of a criminal organization which operated on the East Side of Buffalo from 2003 until 2005. The organization was found by the jury to be a violent group of gang members who specialized in targeting and then robbing drug dealers in and around the City of Buffalo, intending to steal their illegal drugs, money, and jewelry. Allen, Eldridge, and their associates were also accused in the Indictment of invading victim’s homes, threatening residents at gun point for money and other items of value, and kidnapping drug dealers.
One victim who testified for the Government at trial, told the jury that Allen and Eldridge came to his home seeking money and drugs, then forcibly kidnapped him--forcing him into their vehicle with a gun into his neck. They drove the victim to another location in Buffalo where the victim stored his drugs. The dealer said his life was spared only because he was able to give them two kilograms of cocaine.Another Government witness testified that he was robbed of money at gunpoint in the driveway of his family home.
Other victims of a home invasion masterminded by Eldridge testified that their arms and legs were bound with duct tape while they were held at gunpoint--execution style. One victim was handicapped and duct taped to his wheelchair. While Eldridge's associates tried to break into the upper apartment which belonged to a known drug dealer, he casually smoked a cigar. That cigar was collected by crime scene detectives and later tested for DNA which confirmed Eldridge's presence at the crime scene.
Victims testified about the terror they experienced--one told the Court she dialed 9-1-1 underneath a couch so Eldridge and his gang members would not detect her attempts at contacting law enforcement. Eldridge and associates escaped before police arrived--only to be caught be his DNA left at the crime scene.Additionally, the members of the enterprise and their associates distributed quantities of cocaine, crack cocaine, heroin and marijuana, and planned conspired, attempted and committed robberies and murders against other rival drug dealers in order to enhance their street credibility on the East Side of Buffalo.
“The reign of terror engaged in by these defendants has come to a familiar ending, with federal convictions and sentences that will result in those charged spending all or most of the rest of their lives in jail,” noted U.S. Attorney Kennedy. “Fittingly, yet somewhat ironically, the most valuable item taken by each of these robbers was their own lifetime worth of freedom.”
Thamud Eldridge was previously sentenced to serve 50 years in prison.
Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Gary Loeffert; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special-Agent-in-Charge Ashan Benedict; the New York State Police, under the direction of Major Edward Kennedy, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.# # # #
Braxton County man sentenced for firearms and drug chargesRead the Press Release
ELKINS, WEST VIRGINIA – Charles William Masters, of Burnsville, West Virginia, was sentenced today to 101 months incarceration for firearms and drug charges, United States Attorney Bill Powell announced.
Masters, age 44, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Carry a Firearm During a Drug Trafficking Crime” in April 2018. Masters admitted to illegally possessing a 9mm pistol while possessing methamphetamine on July 3, 2017 in Lewis County, West Virginia.
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 Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, the Drug Enforcement Administration, and the Lewis County Sheriff’s Office 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. District Judge John Preston Bailey presided.
Biloxi Resident Sentenced to Almost Nine Years in Prison for Trafficking in Marijuana and Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Duy-Sang Sam Nguyen, 19, of Biloxi, was sentenced on December 6, 2018, by U.S. District Judge Sul Ozerden, to a total of 106 months in federal prison, followed by 5 years of supervised release, for attempting to possess with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans. Nguyen was also ordered to pay a fine in the amount of $7,500.00.
On June 6, 2018, FedEx Corporate Security notified Customs and Border Patrol about a suspicious package emitting a strong smell of marijuana. Upon opening the package, marijuana was located. The package was shipped to a home in Biloxi, Mississippi. On the same date, agents learned about another suspicious package shipping from the same address but destined for another home in Biloxi. Agents were able to intercept the second package and located more marijuana. Agents organized a controlled delivery of one of the packages. A female, later identified as Nguyen’s sister, took the package inside the home. Law enforcement detained Nguyen’s sister and she admitted that she picked up numerous packages for her brother. Upon learning this information, agents went to Nguyen’s home and he confessed to receiving at least four packages every month of marijuana from California. Nguyen further admitted to having an AR-15 in his bedroom and more marijuana. Agents located the AR-15, which was later forfeited. In total, agents determined that Nguyen was involved with at least 150 kilograms of marijuana being shipped to the Mississippi Gulf Coast.
Nguyen was indicted on May 2, 2018. On August 22, 2018, he pled guilty to attempting to possess with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
The case was investigated by Homeland Security Investigations, Customs and Border Patrol, Mississippi Bureau of Narcotics, and the Biloxi Police Department. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Biloxi Man Convicted for Trafficking Methamphetamine and Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Andarius Cordero Thomas, 25, of Biloxi, pled guilty on December 4, 2018, before Senior U.S. District Judge Louis Guirola, Jr., to possession of methamphetamine with intent to distribute and possession of a firearm by an unlawful user of a controlled substance, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Biloxi Police Department conducted three undercover controlled buys of methamphetamine from Thomas on April 20, 2017, April 26, 2017, and May 18, 2017. A search of Thomas’ residence revealed 3 grams of methamphetamine, 1,300 grams of marijuana, 3 digital scales, 6 boxes of small plastic baggies, 2 partially smoked marijuana cigarettes, and a loaded 9mm pistol with ammunition, which Thomas used during his drug distribution.
Additionally, Thomas was stopped by Biloxi police on April 4, 2018, where he was the sole occupant in the vehicle and marijuana smoke was emanating from the vehicle. A search of the vehicle revealed marijuana, a digital scale, and a loaded 40 caliber pistol which had been stolen. A search of the area next to Thomas’ bed at his mother’s home revealed another 8 grams of marijuana.
Thomas will be sentenced by Judge Guirola on March 5, 2019, and faces a maximum penalty of 20 years in prison and a $1,000,000 fine for the drug charge and a maximum of 10 years in prison and a $250,000 fine for the firearm charge.
U.S. Attorney Hurst commended the coordinated investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and by the City of Biloxi Police Department. The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
Baltimore man found guilty of having shank in prisonRead the Press Release
MARTINSBURG, WEST VIRGINIA – Samuel Hogans, of Baltimore, Maryland, was found guilty today after a one-day trial of having a weapon, or shank, in prison, United States Attorney Bill Powell announced.
Hogans, also known as Richard Hogans, also known as “Lex,” age 38, was found guilty of one count of “Possessing Contraband in Prison.” Hogans, an inmate at the Eastern Regional Jail in Berkeley County where he was being held on another federal charge, had a shank in August 2018.
Hogans faces up to five years 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 Jeffrey Finucane is prosecuting the case on behalf of the government. The United States Marshal Service and the West Virginia Division of Corrections investigated.
Chief U.S. District Judge Gina M. Groh presided.
Aurora Health Care, Inc. Agrees to Pay $12 Million to Settle Allegations Under the False Claims Act and the Stark LawRead the Press Release
United States Attorney Matthew D. Krueger announced today that Aurora Health Care, Inc. (“Aurora”) has agreed to pay $12 million to the United States and State of Wisconsin to settle allegations that Aurora violated the False Claims Act by submitting claims to Medicare and Medicaid in violation of the Stark Law. Aurora and its affiliates (“Aurora”) are part of Advocate Aurora Health, Inc., an integrated health care system that serves patients throughout eastern Wisconsin, Illinois, and the upper peninsula of Michigan.
The Stark Law provides that the government will not pay for designated health services ordered by physicians who have improper financial relationships with entities to whom they refer patients because such financial relationships can compromise the physicians’ professional judgment. The False Claims Act prohibits an entity from knowingly submitting claims for payment for such services.
The United States and State of Wisconsin allege that, during certain periods from 2008 to 2012, Aurora entered into compensation arrangements with two physicians that did not comply with the Stark Law because the compensation arrangements were not commercially reasonable and because the compensation exceeded the fair market value of the physicians’ services, took into account the physicians’ anticipated referrals, and was not for identifiable services. The United States and the State of Wisconsin allege that Aurora nonetheless submitted claims for services ordered by those physicians to Medicare and Medicaid, in violation of the False Claims Act.
“Each year, Federal and State governments spend over a trillion dollars on healthcare programs like Medicare and Medicaid,” said United States Attorney Krueger. “This settlement reflects the U.S. Department of Justice’s commitment to using all available legal tools to ensure those healthcare dollars are spent wisely.”
“Healthcare entities need to ensure that compensation arrangements with physicians are clear and appropriate,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region (“HHS OIG”). “The practice of self-referring presents a conflict of interest and can lead to the overutilization of services which ultimately drives up the cost of health care. The OIG will continue to examine and investigate those relationships that violate federal statutes in an effort to protect vital taxpayer dollars.”
“This $12 million dollar settlement demonstrates how these violations have a significant and direct economic impact on the health care industry,” said FBI Special Agent-in-Charge Justin Tolomeo. “Our priority is to protect consumers and hold accountable those in the healthcare system who misuse the Medicare and Medicaid programs.”
The investigation that discovered the allegedly improper compensation arrangements resulted from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. Consequently, the whistleblowers will recover a share of the settlement amount. The whistleblowers’ complaint alleged different claims that are not the basis for the settlement agreement being announced today. The United States and the State of Wisconsin is not intervening in the whistleblowers’ lawsuit to pursue those claims. As part of the settlement, the United States, the State of Wisconsin, and the whistleblowers will ask the district court to dismiss the qui tam complaint.
The investigation was assisted by the FBI, HHS OIG, the Defense Criminal Investigative Service, and the Wisconsin Department of Justice Medicaid Fraud Control & Elder Abuse Unit. The settlement agreement states allegations only; Aurora does not admit liability for the allegations.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Audiology Practice with Locations Throughout Central New York to Pay More Than $566,000 to Settle False Claims Act ClaimsRead the Press Release
ALBANY, NEW YORK – Oviatt Hearing and Balance, LLC (Oviatt), which operates audiology practices in Syracuse, Camillus, Manlius, and Oswego, New York, has agreed to pay $566,263.08 to resolve allegations that it violated the False Claims Act by falsely billing the federal government for services rendered by unlicensed individuals and by inappropriately providing gift cards and other inducements to Medicare and TRICARE beneficiaries. The announcement was made by United States Attorney Grant C. Jaquith and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG).
United States Attorney Jaquith said: “Oviatt Hearing and Balance provided improper inducements to attract patients, allowed audiology testing by unlicensed and unsupervised employees, and then falsely billed Medicare and TRICARE as if the exams had been done by professionally licensed audiologists. We are committed to protecting patients and holding providers accountable for dishonest practices that undermine the integrity of our health care system and thankful for the thorough investigation by HHS-OIG in this case.”
Today’s settlement resolves allegations that Oviatt violated the False Claims Act in two respects. First, Oviatt allowed unlicensed individuals, while working alone with no licensed audiologist or other qualified provider onsite, to perform audiology examinations on federal health care program beneficiaries. Oviatt then submitted claims for payment for those examinations to Medicare and TRICARE, which falsely identified licensed audiologists as the rendering providers. Second, Oviatt offered and provided kickbacks in the form of improper inducements to federal health care program beneficiaries so that they would come to Oviatt where services billable to the federal government were available. The inducements included entering beneficiaries into a contest for a free iPad, and offering beneficiaries free Butterball turkeys, $15 Visa gift cards, $15 Dunkin Donuts gift cards, and $30 Omaha Steaks gift cards.
As part of the settlement, Oviatt admitted that: “(i) on various occasions from July 2011 through January 2018, Oviatt offered and provided improper inducements in the form of gift cards, gift checks, iPads, and similar promotions to Federal health care program beneficiaries, and (ii) on various days from January 2016 through November 2016, Oviatt allowed two unlicensed individuals, who were alone in the office and unsupervised, to perform audiology tests on Federal health care program beneficiaries and then Oviatt billed those services to Medicare and TRICARE as though they had been rendered by a licensed provider.”
“Oviatt Hearing and Balance compromised the integrity of the Medicare program, and failed to ensure that quality health care services were provided to their patients,” said Scott J. Lampert, Special Agent in Charge of HHS-OIG. “HHS-OIG is committed to holding providers accountable for their practices.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provision of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $120,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 5:16-cv-1217.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York and HHS-OIG. The United States was represented by Assistant U.S. Attorney Adam J. Katz.
Auburn Woman Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Sierrha Frisbie, 26, of Auburn, Maine, pled guilty today in U.S. District Court to conspiracy to distribute and possess with intent to distribute heroin.
According to court records, between November 2015 and September 2017, the defendant conspired with others to acquire heroin in Massachusetts and New York and to distribute it in the greater Portland and Lewiston areas. In December 2015, she was arrested by troopers on the turnpike at the York toll plaza and found to have 38 grams of heroin in her possession.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and between five years and life on supervised release. She will be sentenced after the completion of a pre-sentence investigation report by the U.S Probation Office.
The case was investigated by the Portland and South Portland Police Departments, the Maine State Police, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI, and the Maine Drug Enforcement Agency. The Cumberland and York County District Attorney’s Offices assisted with the prosecution. This case was prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Ascension Parish Drug Dealer Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced ARTHUR JOHNSON, JR. a/k/a “Nelson Howard,” “Wood,” and “Dread,” age 42, of Gonzales, to 116 months in federal prison following his convictions of conspiracy to distribute and possession with intent to distribute cocaine, cocaine base, and heroin and unlawful use of a communications facility. The Court further sentenced JOHNSON to5 years of supervised release following his term of imprisonment. JOHNSON was also ordered to forfeit $109,000.
JOHNSON was charged as a result of an extensive federal, state, and local investigation aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi. The drug trafficking organization, led by JOHNSON, distributed multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi and Ascension Parish Louisiana.
Throughout the period of the conspiracy, JOHNSON was the organizer and leader of a drug trafficking organization consisting of more than five participants. Under JOHNSON’s leadership, JOHNSON’s drug trafficking organization was responsible for the distribution of multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi, and Ascension Parish, Louisiana. JOHNSON used public and private places and cell telephones to arrange and carry out the exchange of cocaine, crack cocaine, heroin, and the proceeds from the sales thereof.
U.S. Attorney Fremin stated, “This conviction and sentence highlights our commitment to working with state and local law enforcement to remove dangerous criminals from our streets. It will continue to be a top priority for our office to prosecute organized drug dealers and disrupt and dismantle their organizations. I want to thank our prosecutors, the FBI Baton Rouge Area Gang Task Force, the East Baton Rouge Sheriff’s Office, the Ascension Parish Sheriff’s Department, and the Baton Rouge Police Department.”
FBI Special Agent in Charge Eric Rommal stated, “The reign and terror of Arthur Johnson and his fellow co-conspirators ended today due to the hard work and dedication of all federal, state, and local law enforcement agencies involved in this multi-state narcotics investigation. Their tireless efforts led to the removal of large amounts of crack cocaine, cocaine, and heroin, from Ascension Parish and surrounding areas which prevented countless overdose deaths.”
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation was investigated by the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department, with assistance from the Ascension Parish Sheriff’s Office, the FBI Hattiesburg, Mississippi, Resident Agency, and Hattiesburg, Mississippi Police Department. This matter is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.
Armed Robber Sentenced to 34 Years’ Imprisonment for Multiple Armed Robberies and Witness TamperingRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Shamir Kane, 29, of Philadelphia, PA, was sentenced today to 34 years’ imprisonment after a jury convicted him previously at trial of conspiracy to commit Hobbs Act robbery, two armed Hobbs Act robberies, two counts of using and carrying a firearm during a crime of violence, and two counts of witness tampering. The Honorable Eduardo C. Robreno also sentenced the defendant to five years’ supervised release and ordered Kane to pay restitution in the amount of $15,384.62.
In August 2016, Kane committed two armed robberies of T-Mobile cell phone stores. On August 6, 2016, Kane and others committed a gun-point robbery of a T-Mobile store in Philadelphia. On August 22, 2016, Kane and others committed a second armed robbery of a T-Mobile cell phone store in Cheltenham, PA. During each of the armed robberies, Kane herded the T-Mobile employees to the back of the store at gunpoint. After committing these robberies, Kane encouraged the mothers of his children (one of whom had committed the August 6, 2016 armed robbery with Kane) to approach the victims of the armed robberies in an effort to scare, intimidate, and bribe them into not testifying. Both women then engaged in witness intimidation and are currently serving sentences in federal prison in connection with this illegal conduct.
“The complete disregard that Kane has for the safety of others is appalling,” said U.S. Attorney McSwain. “The employees of these stores were simply doing their jobs, while Kane terrorized them so that he and his friends could make a buck off of stolen cell phones. And then he caused his family members to commit additional crimes to cover up his conduct. The streets are safer now that Kane will be spending the next few decades behind bars.”
“This investigation and sentence is another example of ATF acting on its mission to fight violent crime along with our outstanding law enforcement partners. We were able to apprehend and successfully prosecute a violent and dangerous individual who posed a significant threat to the public,” said ATF Philadelphia Field Division Special Agent in Charge, Donald Robinson. “The hard working citizens of our communities deserve to feel safe and secure at their workplaces. The sentence should reassure the citizens of Philadelphia that we will find, prosecute, and ultimately remove those from the community who place others in danger through their violent acts.”
"Shamir Kane terrified the employees of the stores he robbed, making demands and marching them to back rooms at gunpoint," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "Those employees didn't know whether they'd make it out alive. On top of that, he later sought to intimidate victims out of testifying in the case. Our FBI Violent Crimes Task Force will continue to investigate and bring to justice those who find armed robbery a viable way to make money."
The case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Philadelphia Police Department, the Cheltenham Police Department, and the Plymouth Township Police Department, and the case is being prosecuted by Assistant United States Attorneys Salvatore L. Astolfi and Thomas Zaleski.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Alaska Man Sentenced for Role in Large Scale Drug Trafficking Conspiracy in Southeast AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Alaska man has been sentenced to federal prison for his role in a large scale drug trafficking conspiracy to distribute methamphetamine in the small community of Craig, Alaska, and the surrounding communities of Prince of Wales Island.
Bradley Payton Grasser, 63, of Craig, Alaska, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve 10 years in prison, followed by 10 years of supervised release. In July 2017, Grasser pleaded guilty to methamphetamine conspiracy, and agreed to forfeit all rights to $89,703 in U.S. currency and 11 firearms, among other items, named in the forfeiture allegation.
According to court documents, starting in at least January 2014 and continuing until January 2017, Grasser coordinated and directed the distribution of methamphetamine on Prince of Wales Island for the conspiracy, as well as, collection of drug proceeds from co-conspirators. Specifically, Grasser arranged for methamphetamine to be mailed to co-conspirators at various addresses on Prince of Wales Island and in Ketchikan, from his source of supply in Washington State. Grasser would then use the drug proceeds to obtain more methamphetamine from his source of supply, for subsequent distribution on Prince of Wales Island. During the course of the conspiracy, Grasser directed at least five individuals to either receive the drug packages and/or send drug proceeds back to his source of supply in Washington State.
The total amount of methamphetamine seized during the conspiracy was 1133.7 grams intended for distribution on Prince of Wales Island and in Ketchikan. Additionally, the investigation revealed that Grasser was in possession of $89,703 in drug proceeds and property that he obtained from his drug trafficking activities, which included 11 firearms, artwork, vessels, tenders, motorcycles, utility trailers, containers, and gun safes.
“Protecting the citizens of rural Alaska is a high priority for my office and our law enforcement partners,” said U.S. Attorney Schroder. “According to the 2010 U.S. Census Borough, the population of Craig is 1,201, which means the amount of drugs seized from Grasser would be enough for nearly one gram of methamphetamine, or approximately 10 dosage units for every single person in the community. The citizens of Craig, including the young people, are safer because of the efforts of the law enforcement agencies that investigated this case.”
“Alaska State Troopers take the trafficking of illicit drugs seriously,” said Major Andrew Greenstreet, Acting Director of the Alaska State Troopers. “We’re grateful for the partnership with other law enforcement agencies on this case, and will continue efforts to prevent dangerous drugs from hitting our streets.”
“Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement in Southeast Alaska and the surrounding area on this investigation,” said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service. We take drug trafficking crimes very seriously and will continue to vigorously protect the U.S. Mail, communities, and customers against all forms of criminal attack and misuse.”
The Alaska State Troopers (AST), the U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), Craig Police Department, and Klawock Police Department conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Active Shooter Incident Training for Houses of WorshipRead the Press Release
SACRAMENTO, Calif. — In the aftermath of the deadly shooting that occurred at Tree of Life Synagogue in Pittsburgh, Pennsylvania on October 27, 2018, the U.S. Attorney’s Office for the Eastern District of California, the Federal Bureau of Investigation, the Jewish Federation of the Sacramento Region, and the Interfaith Council of Greater Sacramento have brought together faith leaders to discuss strategies to deal with active shooter incidents in houses of worship. Over 100 are expected to attend today’s presentation.
The Active Shooter training features a lecture by FBI Special Agent Glenn Norling that will teach attendees how to be better prepared, recognize reaction options when faced with a critical situation, and what to expect from a law enforcement response.
The last hour of the training will feature a panel consisting of U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, Sacramento County District Attorney Anne Marie Schubert, Sacramento Police Chief Daniel Hahn, FBI Special Agent Glenn Norling, and Sacramento County Sheriff Lieutenant Orrlando Mayes
U.S. Attorney McGregor W. Scott stated, “Any time an individual decides to attack those gathered in the peaceful exercise of their religion, the congregants are the true first responders. Today’s training brings together community leaders to discuss these tragic events and to learn how to prepare their congregations for an incident that we hope and pray will never happen in our district. The U.S. Attorney’s Office is committed to working with the community and its law enforcement partners to prevent such attacks and to taking appropriate action if such a tragedy occurs here.”
“The FBI is committed to providing information to houses of worship to better prepare congregations for security planning to prevent violent incidents and for active shooter response if and when a violent incident occurs,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Today’s seminar is only one facet of our outreach and commitment to the community. As part of our ongoing efforts, the FBI conducts hundreds of seminars, workshops, and training sessions annually for local law enforcement, minority and religious organizations, and community groups to promote cooperation, reduce civil rights abuses, and provide education about civil rights statutes.”
William Recht, Executive Director of the Jewish Federation of the Sacramento Region stated: “In light of the Pittsburgh massacre of 11 Jews in October, the Jewish Federation wanted to move into action and provide practical tools and training to our synagogue and organizational leaders to make sure we are taking every precaution to keep our community safe. We are grateful for the leadership and partnership of the U.S. Attorney's Office and law enforcement representatives.”
Edrine Ddungu, President of the Interfaith Council of Greater Sacramento stated: “Crimes motivated by a hatred of a religion are particularly chilling. Through programs like today’s Active Shooter Training, we can plan for the unthinkable and make sure our churches, synagogues, mosques and gurdwaras are free of violence. We are committed to working with law enforcement agencies to prevent or respond to attacks on our places of worship.”
4TH Florida Man Pleads Guilty in Connection to Multi-Million Dollar Fraud Against Xerox CorporationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced that Jason Haynes, of Florida, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud and filing a false tax return in connection with a scheme to defraud the Xerox Corporation of more than $20,000,000. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant, along with Kyle Haynes, David Haynes and Bryan Day, owns Haynes Brother Furniture in Daytona Beach, Florida, where defendant resides. Co-conspirator Robert Fisher’s company, RBM Imaging, was an authorized reseller of Xerox office equipment.
Xerox, which has a location in Webster, NY, sells and leases office equipment, including printers. Xerox sells or leases the office equipment directly to end-user customers or to authorized resellers, like Fisher, who then resell or lease the office equipment to end-user customers, like the defendants. The office equipment requires toner and other products to operate. End-user customers order the toner for their printers from Xerox. Rather than pay Xerox upfront for the toner, the end-user customers pay Xerox based on the number of prints made with the toner. However, at all times, the toner belongs to Xerox until consumed by the end-user customers. At no time may the end-user customers sell the toner.
The Haynes’ set up a sham company, HDH Graphics, to obtain approximately 63 Xerox printers from Fisher. Although HDH Graphics made few, if any, prints with the printers, the defendants fraudulently represented to Xerox that HDH Graphics was making prints using much more toner than the industry average, which deceived Xerox into shipping approximately $25,000,000 worth of toner to HDH Graphics. The Haynes’ then sold the fraudulently obtained toner for approximately $11,000,000 to an individual in Miami, Florida. The Haynes’ and Fisher shared the profits from the fraudulent sale of the Xerox toner.
In executing the scheme, the Haynes’ repeatedly misrepresented to Xerox that they were making millions of prints with the toner, even though they never took most of the printers out of their boxes. The Haynes’ provided Xerox with false usage profiles from the printers and false print samples that made it appear that the defendants were making the millions of prints and using much more toner than the industry average for each print.
Jason Haynes also filed false personal income tax returns with the Internal Revenue Service for the years 2008 through 2013. His personal tax returns failed to report net income HDH Graphics earned from the fraudulent sale of the Xerox toner. Because HDH Graphics was a partnership, all of its net income flowed through to the Haynes’ personal tax returns. Therefore, the underreporting of the net income on HDH Graphics tax returns resulted in the underreporting of the income on the defendant’s personal tax returns.
The Haynes’ underreported the net income earned by HDH Graphics by falsely claiming that they had personally paid and incurred travel and shipping expenses on behalf of HDH Graphics. They then had HDH Graphics reimburse them for the falsely claimed expenses and falsely reported such expenses as deductions on HDH Graphics tax returns. The falsely reported deductions on HDH Graphics tax returns were approximately $265,154, resulting in approximately $265,154 less in net income being reported on the corporate returns. As a result, approximately $66,288.50 should have flowed through as income to the defendant’s personal tax returns.
The defendant also agreed to forfeiture of assets that were previously seized by the government.
Kyle Haynes, David Haynes, and Bryan Day were previously convicted and are awaiting sentencing. Charges remain pending against Robert Fisher. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Kevin Kelly, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James Robnett, Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for March 13, 2019, at 2:00 p.m. before Judge Wolford.
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16 Convicted in Large-Scale Conspiracy Involving Local ABT Gang RingRead the Press Release
CORPUS CHRISTI, Texas – A total of 16 South Texas residents have been convicted of charges including conspiracy to participate in racketeering activity involving the Aryan Brotherhood of Texas (ABT) which also involved methamphetamine distribution, announced U.S. Attorney Ryan K. Patrick.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced James Randall Lee Ross, 45, OF Corpus Christi, aka “Silver” to 292 months in federal prison followed by five years of supervised release.
Previously sentenced were Corpus Christi residents David Wayne Frost aka Spider, 47, Michael Lee Craig aka Rooster, 44, Mark Clairborne Pennington aka Shiloh, 59, Brian Russell Campbell aka Iceman aka Loyalty, 35, Johnny Glenn Voiles aka Panhead, 47, Jimmy Curtis Mullenax III aka Curt, 40, Kenneth Brandenburh aka K-Dog, 44, Matthew Jay Thompson aka Pie Face, 33, Pedro Campos aka Pete, 59, Abby Telge, 28, Johnny Hagensick, 49, Randy Stasney, 60, Allen Saunders, 35, Blanca Blanche Sandoval, 40, and Sue Campbell, 34.
They received terms of imprisonment ranging from 120 to 292 months in federal prison.
All defendants and others known and unknown, were members and associates of the ABT, a criminal organization whose members and associates engaged in the illegal trafficking of controlled substances, extortion, murder, attempted murder, assault with a dangerous weapons and other acts of violence. The organization operated throughout Texas, including Corpus Christi.
One of the purposes of the criminal enterprise was to keep victims in fear of the enterprise and in fear of its leaders, members and associates through threats of violence and actual violence. Ross, Frost, Craig, Pennington, Campbel, and Voiles were convicted of conspiracy to participate in racketeering activity involving ABT between 1995 and 2017. Ross, Frost and Craig were also convicted of violent crimes in aid of racketeering activity occurring in September 2015. All 16 were also convicted of conspiracy to possess with the intent to distribute methamphetamine between July 2012 to 2017.
Evidence was discussed and presented during the multiple plea and sentencing hearings in this case regarding the extent of this criminal organization. The ABT is a powerful race-based Texas state-wide organization operating inside and outside state and federal prisons throughout the State of Texas and the United States. ABT was established in the early 1980s within the Texas Department of Criminal Justice (TDCJ). It modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang formed in the California prison system during the 1960s. ABT offers protection to white inmates if they join the criminal enterprise. They adhere to the motto that "God Forgives, Brothers Don't." Membership is for life. The only way out of the gang is by death. ABT members refer to the gang as the "Family" and promote "whites as the superior race."
The ABT operate with a strict chain of command and a defined militaristic ranking structure. The hierarchy of each faction is broken up into five separate TDCJ regions. Each region has the following chain of command: general, major, captain, lieutenant, sergeant-at-arms and soldier. The ranking structure remains constant; however, frequent personnel changes (promotions, demotions, terminations) occur within the rank structure. The "Wheel," a five-person steering committee, governs each faction of the ABT. Each Wheel member is a general who is responsible for appointing his subordinate within his respective regions. Each Wheel member also appoints an inside major (in-custody gang member) and outside major (referring to someone in the "free world") in each of his respective region. These majors, in turn, are responsible for appointing their subordinate captains and lieutenants who, in turn, appoint their sergeants. Wheel members typically remain in place regardless of custody status unlike other ranking members who typically lose rank when their custody status changes.
The ABT has been involved in racketeering activities almost since its inception. Identity theft, counterfeiting and check fraud constitute the most prevalent non-violent crimes committed by ABT members/prospects/associates. Through the commission of these offenses, along with the distribution of narcotics, the ABT generates income for the enterprise.
ABT members take a "blood oath" to obey superiors. Failure to obey may result in a severe beating or death, which is carried out by other ABT members/prospects/associates. ABT members/prospects/associates that cooperate with law enforcement authorities are also subject to murder.
Multiple defendants were also convicted of a large-scale drug-trafficking conspiracy involving kilogram quantities of pure methamphetamine that had been trafficking in the Corpus Christi area since at least 2012 and continuing to 2018.
Immigration and Custom’s Enforcement’s Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Texas Department of Public Safety; Nueces County Sheriff’s Office; Corpus Christi Police Department; and the U.S. Marshals Service conducted the joint investigation.
Assistant U.S. Attorneys Lance Watt and Julie K. Hampton are prosecuting the case.
10 December 2018
West Palm Beach Police Department in Southern District of Florida to Receive Project Safe Neighborhoods AwardRead the Press Release
On December 6, 2018, during the 2018 Project Safe Neighborhoods (PSN) National Conference in Kansas City, Missouri, Acting Attorney General Matthew Whitaker announced that sixteen Project Safe Neighborhoods Awards will be distributed nationally. The West Palm Beach Police Department in the Southern District of Florida will be a recipient of one of the Project Safe Neighborhoods Awards. These awards recognize individuals and groups for their dedication and contribution to the success of PSN.
One year ago, the Department of Justice announced the revitalization and enhancement of PSN, the centerpiece of the Department’s violent crime reduction strategy. 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.
"Project Safe Neighborhoods is making our prosecutions more targeted and more effective—and that makes the American people safer," said Acting Attorney General Whitaker. "Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done."
“The U.S. Attorney’s Office applauds the tremendous community engagement initiatives and law enforcement partnerships that the West Palm Beach Police Department has cultivated to serve and protect our local residents,” stated U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “The West Palm Beach Police Department’s commitment to the success of Project Safe Neighborhoods is to be commended.”
A Project Safe Neighborhoods Award, for Outstanding Local Police/Sheriff Department Involvement, will be bestowed upon the West Palm Beach Police Department in the Southern District of Florida. The West Palm Beach Police Department’s commitment to the core principles of the reinvigorated PSN has had, and continues to have, a dramatic effect in the Southern District of Florida. West Palm Beach officers serve full-time as task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and Federal Bureau of Investigation (FBI) to combat violent crime. In 2018, the West Palm Beach Police Department created a “Real Time Crime Center” that uses intelligence from a number of sources to generate current and actionable law enforcement leads. In addition to enforcement activity, the West Palm Beach Police Department has also made a commitment to community engagement and successfully built bridges between law enforcement and the communities they serve. The West Palm Beach Police Department’s community engagement initiatives are extensive, and include not only national programs, but also local programs like “R.I.P.” program that interacts weekly with juvenile offenders arrested for gun and violent crimes, and “Cops and Scholars,” which champions kids in vulnerable communities. West Palm Beach Police Department also serves as a partner to many outside organizations and programs. All of these efforts are contributing to the success of PSN in local West Palm Beach communities.
Virginia man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Chance Allen Good, of Stanley, Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Good, age 25, pled guilty to one count of “Possession of a Stolen Firearm.” Good admitted to having a stolen .22 caliber rifle in Mineral County in March 2018.
Good faces up to 10 years and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Unlicensed Dentist Convicted of Healthcare Fraud, Conspiracy to Commit Healthcare Fraud, and Conspiracy to Violate the Anti-Kickback StatuteRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LUIS OMAR VARGAS, an unlicensed dentist, was convicted last Friday, after a two-week jury trial, for defrauding health insurance companies by billing for false claims, billing for claims performed by him as an unlicensed provider, and for conspiring to pay kickbacks to his patients. The trial was presided over by United States District Judge Ronnie Abrams.
U.S. Attorney Geoffrey S. Berman said: “Luis Omar Vargas defrauded taxpayer-funded health insurance plans and his patients by posing as a dentist licensed to practice, when he was not. Vargas billed for services he never performed and induced his patients to visit his dental clinic by providing them kickback payments. Now, for his fraud and abuse of the system, Vargas stands convicted of three crimes and faces a substantial term in prison.”
According to allegations in the Indictment and evidence introduced at trial:
From in or around 2012 through at least November 2017, in the Southern District of New York and elsewhere, VARGAS and others conspired and participated in a scheme to defraud insurance providers of more than $2 million. Vargas and others induced patients to be seen at a dental clinic on the Upper West Side of Manhattan by offering patients a $25 cash kickback. Once the patients were in the door, VARGAS and his coconspirators charged insurance companies for services that were never performed and for services performed by VARGAS that he was not licensed to perform.
* * *
VARGAS, 46, of Roselle, New Jersey, was convicted of one count of health care fraud and one count of conspiracy to commit health care fraud, each of which carries a maximum sentence of 10 years in prison, and one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison. VARGAS will be sentenced on April 5, 2019, by Judge Abrams.
Other members of the conspiracy, including Dr. Mehmet Dikengil, 70, and Anna Jones, 60, previously pled guilty to related offenses.
Mr. Berman praised the outstanding investigative work of the U.S. Department of Health and Human Services-Office of Inspector General in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Alexandra N. Rothman, Ryan B. Finkel, and Kristy J. Greenberg are in charge of the prosecution.
United States Secret Service Case Results in Former Bay Minette Accountant Sentenced to 8 Months for Theft of over $60,000.Read the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced today that United States District Court Senior Judge Callie V. S. Granade sentenced Karen Dawn Gurvitz on December 6, 2018 to 8 months imprisonment and ordered her to pay restitution in the amount of $63,205.
Karen Gurvitz pled guilty on August 22, 2018, in accordance with a plea agreement with the United States to the crimes of Bank Fraud and Wire Fraud. She worked as the bookkeeper/accountant for the Bay Minette-based company, S & K Machineworks for nearly three years. During her employment, specifically between January 2015 through October 2017, Gurvitz made close to $62,000 in personal purchases using an S&K company credit card.
In order to keep her criminal activity concealed from her employers at S &K, Gurvitz would change the business mailing address of S&K on all invoices dealing with her fraudulent purchases to that of her home address. Some of the purchases made included gift cards, along with other goods, intended for her sole personal use. In total, Gurvitz was ordered to pay $63,205 to S & K Machineworks in restitution.
Brian O’Neil, Resident Agent in Charge for the United States Secret Service Mobile Field Office stated, “The U.S. Secret Service plays a pivotal role in securing the nation’s critical infrastructure, specifically in the areas of cyber, banking and finance. Today’s sentencing is one of many examples of the working relationship among law enforcement in bringing justice to victims along the Gulf Coast.”
The United States Secret Service, Mobile Field Office investigated this case. Assistant United States Attorney Christopher Baugh prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.
United States Reaches $9 Million Settlement for Damages Caused by Forest FireRead the Press Release
SACRAMENTO, Calif. — Kernen Construction Co. and Bundy & Sons Logging have collectively agreed to pay $9 million to settle a lawsuit brought by the United States for damages resulting from a 2012 wildfire that burned more than 1,600 acres of national forest land, U.S. Attorney McGregor W. Scott announced today.
The fire, known as the “Flat Fire,” ignited on July 11, 2012, along the side of Highway 299 west of Weaverville, California. Logging equipment owned by Bundy & Sons was being hauled by Kernen Construction when it became unsecured and dragged along the highway, causing sparks that ignited dry vegetation. By the time the fire was suppressed, 1,688 acres had been burned, almost all of which was located within the Shasta-Trinity National Forest. The fire cost more than $4.6 million to suppress and damaged environmental resources, including habitat for sensitive species such as the Northern Spotted Owl.
The United States sought to recover damages from Kernen Construction and Bundy & Sons for their failure to properly secure the equipment that started the fire. Under the settlement announced today, Kernen Construction will pay $6 million to settle the dispute, and Bundy & Sons will pay $3 million. Defendants deny liability for the fire.
“This settlement goes a long way toward compensating the public for the expense of fighting the fire and the damage to public lands,” U.S. Attorney Scott said. “The U.S. Attorney’s Office will continue to aggressively pursue recovery against those whose carelessness damages our precious national resources.”
“This is a reminder that the public has a major role to play in fire safety,” said USDA Forest Service Pacific Southwest Regional Forester Randy Moore. “Everyone must remain vigilant, especially during our extended fire season. We thank the U.S. Attorney’s Office for their work in this case.”
Since 2012, the U.S. Attorney’s Office for the Eastern District of California has secured settlements in more than 25 different cases involving wildfire damage to federal lands, with total settlements valued at nearly $200 million.
Assistant U.S. Attorneys Colleen M. Kennedy and Benjamin J. Wolinsky handled the case.
United States Attorney’s Office Sponsors Organized Crime Drug Enforcement Task Force Training for USVI and Puerto Rican Prosecutors and for Law EnforcementRead the Press Release
United States Attorney Gretchen C.F Shappert announced today that the Virgin Islands U.S. Attorney’s Office is sponsoring training this week for prosecutors from the USVI and Puerto Rico and federal agents here in the Territory who are dedicated to the investigation and prosecution of large-scale narcotics and organized crime targets. According to Shappert, "The Organized Crime Drug Enforcement Task Forces (OCDETF) Program was established by the Department of Justice in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the Department’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises."
The OCDETF Program operates nationwide and combines the resources of federal agencies and local law enforcement in a coordinated attack against major drug trafficking and money laundering organizations. OCDETF participants include the 94 U.S. Attorneys’ Offices, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Internal Revenue Service, the U.S. Coast Guard, the U.S. Immigration and Customs Enforcement, the U.S. Marshals Service, the Criminal and Tax Divisions of the U.S. Department of Justice and numerous State and local agencies. The OCDETF strategy focuses federal law enforcement resources on reducing the flow of illicit drugs and drug proceeds by identifying and targeting the major trafficking organizations, eliminating the financial infrastructure of drug organizations by emphasizing financial investigations and asset forfeiture, redirecting federal drug enforcement resources to align them with existing and emerging drug threats, and conducting expanded, nationwide investigations against all the related parts of the targeted organizations.
"Prosecutors and agents in the Caribbean region represent the tip of the spear in America’s efforts to combat transnational drug trafficking organizations," Shappert said. "For that reason, we must continuously train and educate our OCDETF partners to address the emerging threats associated with drug cartels and organized crime. We are proud to support our OCDETF partners and to host this important training."
United Nations Musical Director Arrested on Federal Wire Fraud Charge Alleging $750,000 Embezzlement from a Charity ConcertRead the Press Release
LOS ANGELES – A professional drummer who has served as a musical director for the United Nations and the Arsenio Hall television show has been arrested on a felony wire fraud charge for allegedly embezzling $750,000 from a charity concert for homeless children and using the pilfered money to buy his ex-wife a house in Calabasas.
Robin DiMaggio, 47, of Woodland Hills, was arrested Friday afternoon. He is scheduled to make his initial court appearance this afternoon in United States District Court.
According to the criminal complaint that led to his arrest, DiMaggio said he would assist the Peace for You Peace for Me Foundation, a Bulgaria-based non-profit organization, with organizing a charity concert in the Bulgarian capital of Sofia that was designed to raise money for and raise awareness of homeless and displaced children from conflict zones throughout the world. DiMaggio allegedly told the Foundation in a series of communications that he would be able to secure several celebrities to perform at the charity concert.
On August 5, 2016, the foundation’s financial sponsor allegedly wired $750,000 to a DiMaggio-controlled account as a guarantee for future payments related to artists performing at the charity concert. Prior to the money transfer, DiMaggio allegedly represented that he would not spend the money, which he would place in an escrow account and only later use to pay artists who would perform at the concert.
DiMaggio never set up the escrow account, the complaint alleges. Instead, several days later, he deposited the $750,000 into his personal bank account and used the money to make payments on cars, credit card debt and his living expenses. Within weeks of the wire transfer, DiMaggio allegedly used $251,370 of the funds to purchase a Calabasas home for his ex-wife. He also wired $150,000 of the funds to a bank account in the name of his company, DiMagic Entertainment, Inc. None of the transfers was sent to artists or their management in connection with the charity concert in Bulgaria, according to the complaint.
On August 10, 2016 – the day after he allegedly put the $750,000 into his personal bank account – DiMaggio emailed the foundation’s financial sponsor, stating that “an entire group of managers” believed the charity concert in Bulgaria should be postponed from October 1, 2016 to December 1, 2016, during the Bulgarian winter. When the foundation’s financial sponsor demanded the $750,000 back, DiMaggio wrote back that he had sent the deposit to the artists as agreed and that he would return the funds when the deposits were returned.
The financial sponsor sued DiMaggio in Los Angeles County Superior Court in December 2016 and during deposition DiMaggio testified that a third party had used DiMaggio’s email account to contact the foundation about the concert and had been responsible for the withdrawal of most of the funds, court papers state. However, DiMaggio also admitted at the deposition that he used $251,370 in funds to buy the Calabasas home for his ex-wife as a partial settlement of his spousal support.
Nine months later, DiMaggio filed a Chapter 7 bankruptcy petition. During DiMaggio’s bankruptcy court proceedings, the financial sponsor and his company, which also had filed claims against him in that court, were awarded $1.2 million.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were to be convicted of the wire fraud charge, DiMaggio would face a statutory maximum penalty of 20 years in federal prison.
This case has been investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Two Middle Tennessee Men Sentenced to Federal Prison for Child Exploitation CrimesRead the Press Release
NASHVILLE, Tenn. – December 10, 2018 – Kendall Carter, 24, of Milton, Tennesee and Curt Cannamela, 41, of Hartsville, Tennessee, were sentenced on Friday in U.S. District Court for separate child exploitation crimes, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Kandall Carter was sentenced by Chief U.S. District Judge Waverly Crenshaw, Jr., to 30 years in prison, to be followed by lifetime supervision. Carter was indicted in 2015 and pleaded guilty in December 2017 to production of child pornography; two counts of extortion; and possession of child pornography.
According to documents filed with the court, Carter used a variety of online usernames to talk with multiple females online, including minor females. He would befriend underage girls online, exchange nude images with them, and then use a different on-line persona to threaten to expose the girls to others unless the girls took increasingly more graphic images including images of themselves engaging in sexual acts. The victims included a 16 year-old girl living in Germany, where her father was serving on active duty in the military and a 12-year-old girl living in South Dakota. During on-line exchanges with the 12-year-old, Carter represented himself to be a 14-year-old boy from Tennessee.
In 2014, investigators determined that the IP address of the person communicating with these victims belonged to Kendall Carter who was communicating with the girls from Tennessee.
A subsequent forensic examination of the Carter’s iPhone and iPad revealed that he was in possession of more than 100 sexually explicit images of other minor females.
In a separate and unrelated case, Chief Judge Crenshaw sentenced Curt Cannamela to 188 months in prison, to be followed by lifetime supervision. Cannamela was charged in a criminal information in November 2017 and pleaded guilty in January to enticement of a minor; receipt of child pornography; and distribution of child pornography.
In March 2016, agents with Homeland Security Investigations (“HSI”) began investigating Cannamela after discovering email communications between Cannamela and what appeared to be an underage female. After exchanges of child pornography were discovered, agents posed as a 14-year-old female. Cannamela disclosed that he was actually 39 years old and lived in Hartsville, Tennessee. Cannamela requested that they move their conversation to another platform and then moved their conversation to KIK, an instant messaging application. Cannamela then sent images depicting child pornography to whom he believed to be a minor female and expressed his desire to travel to Laredo, Texas to meet her.
In August 2017, Cannamela purchased an airline ticket for whom he thought was the 14-year-old female, to fly from Laredo, Texas to Nashville. HSI agents later executed a federal search warrant at Cannamela’s residence in Hartsville and seized laptops and other electronic media, which contained evidence of other victims of child pornography and child predators. Agents were able to verify Cannamela had distributed child pornography through his KIK application and email accounts.
These cases were investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney S. Carran Daughtrey.
Two Arizona Men Sentenced for Conspiracy and Possession with Intent to Distribute HeroinRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on December 6, 2018, 39 year-old Richard Ortiz and 34 year-old Gerardo Alatorre Quintero were sentenced by U.S. District Court Judge Stephanie M. Rose. Ortiz was sentenced to 60 months of imprisonment, to be followed by five years of supervised release. Alatorre Quintero was sentenced to 120 months of imprisonment, to be followed by five years of supervised release. Ortiz pled guilty to possession with intent to distribute a controlled substance on July 6, 2018. Alatorre Quintero pled guilty to the same charge on August 7, 2018.
On November 17, 2017, Ortiz and Alatorre Quintero were driving a U-Haul truck when they were stopped by a Pottawattamie County Sheriff’s deputy for speeding. Ortiz gave the deputy permission to search the U-Haul, and the deputy located 25 packages hidden inside tires inside the U-Haul. The heroin weighed 6.97 kilograms, and the fentanyl weighed 15.62 kilograms.
This matter was investigated by the Pottawattamie County Sheriff’s Office, the Southwest Iowa Narcotics Enforcement Task Force, and Iowa Division of Narcotics Enforcement (DNE). This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Towson Pharmacist Sentenced to 40 Months in Federal Prison for Distributing Oxycodone in Exchange for Sexual FavorsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Richard Daniel Hiller, age 64, of Owings Mills, Maryland, formerly a licensed pharmacist, to 40 months in federal prison, followed by three years of supervised release, for conspiracy to distribute oxycodone, and for distributing oxycodone. Judge Hollander also ordered Hiller to pay a fine of $15,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
“Hiller abused his position of trust and exploited women who were addicted to oxycodone to obtain sexual favors. Those who divert pharmaceutical drugs for illegal purposes further the tragic cycle of addiction and the epidemic of opioid overdose deaths,” said U.S. Attorney Robert K. Hur.
According to his plea agreement, Hiller was a licensed pharmacist working at a pharmacy in Towson, Maryland. Hiller admitted that he filled fraudulent prescriptions for oxycodone for several women in return for sexual favors. On numerous occasions between January 2014 and February 2017, Hiller directed two of the women to come to the pharmacy where he worked prior to the opening of the pharmacy. Hiller would make them engage in sexual intercourse or perform other sexual acts in the rear area of the pharmacy prior to filling their fake prescriptions for oxycodone.
Beginning in 2014, Hiller also distributed oxycodone to a third woman. In return for distributing oxycodone to her, often without any valid prescription, Hiller would ask the woman to send him nude photos and sexual videos of herself, and allow him to grope and kiss her. This woman would sometimes use different names to simultaneously obtain oxycodone prescriptions from two doctors. Hiller would fill both prescriptions knowing they had been fraudulently obtained. When the woman rejected one of Hiller’s advances, he called the woman’s doctors to notify them that she was fraudulently obtaining prescriptions from both of them.
Hiller filled these prescriptions knowing they were fraudulent and outside the usual course of professional practice. Hiller would permit the women to fill additional prescriptions for oxycodone before the previous 30-day window had expired. In an effort to hide the conspiracy, some of the fraudulent prescriptions listed fake names and names of family members. The women were addicted to oxycodone and would resell many of the pills they obtained from Hiller to maintain their addiction. Over the course of the conspiracy, Hiller distributed approximately 20,500 15 milligram oxycodone pills.
United States Attorney Robert K. Hur commended the DEA and the Baltimore County Police Department for their work in these investigations. Mr. Hur thanked Assistant U.S. Attorney Burden H. Walker, who prosecuted the case.
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Toledo woman charged after she purchased black powder and screws that she believed were going to be used to make a bomb as part of a terrorist attackRead the Press Release
A Toledo woman was arrested and charged in federal court after she purchased black powder and screws that she believed were going to be used to make a bomb as part of a terrorist attack.
Elizabeth Lecron, 23, was charged with one count of transportation of explosives and explosive material for the purposes of harming others and property.
“This defendant bought black powder and hundreds of screws that she expected would be used to make a bomb,” said Justin E. Herdman, United States Attorney for the Northern District of Ohio. “Through her words and actions, she demonstrated that she was committed to seeing death and destruction in order to advance hate. This case demonstrates terrorism comes in many guises and we will remain vigilant to protect all Americans.”
FBI Acting Special Agent in Charge Jeff Fortunato said: “Removing Elizabeth Lecron from the ranks of civilized society by virtue of arrest and prosecution thwarts her explicitly stated desire to engage in acts of death and destruction. This case is a testament to the value of an ever vigilant public, which had the courage to alert law enforcement as to the evil goals and intentions of this suspect."
According to an affidavit filed in the case:
Lecron came to the attention of law enforcement earlier this year after one of her associates expressed a desire to conduct a violent attack. Further investigation revealed Lecron frequently posted voluminous photographs and comments on social media glorifying mass murderers, including the Columbine shooters and Dylann Roof.
After her Tumblr account was shut down because of offensive content, Lecron started a new profile -- “CharlestonChurchMiracle,” -- where she continued to post photos and comments about mass casualty attacks.
Lecron and an associate flew to Denver in order to visit Columbine High School. Around this time, she also began corresponding with Roof and attempted to send him Nazis literature.
Earlier in August, undercover FBI agents and confidential sources communicated with Lecron. In August, she stated she and an associate 1 had devised a plan to commit an “upscale mass murder” at a Toledo bar. She stated she knew the bar only had two ways in or out, which could be a tactical advantage when police arrived.
Later that month, Lecron stated she wanted to meet other anarchists in order to form a team. She stated she wanted to damage a livestock farm to set livestock free. She later confirmed she was willing to sabotage anything that harms the environment.
A week later, on August 28, she reiterated she wanted to attack a farm that raises pigs or cows. The next day, Lecron stated she could not locate such a farm and was going to focus on something else.
In September, Lecron met with undercover FBI agents and stated she and an associate started to make a pipe bomb. She stated she “definitely want(ed) to make a statement up here” and thought the place where she worked could be a good target because she believed they were polluting the river behind the plant.
On December 4, Lecron has discussions with an undercover agent regarding a pipeline bombing. Lecron agreed to buy black powder needed to make a bomb.
On December 8, Lecron met with a source at a retail sporting good stores, where she entered the store by herself and purchased two pounds of Hodgson Triple Seven Muzzleloading Propellant. She then went to a larger retailer in Perrysburg, where she purchased 665 screws of various sizes, some as large as three inches.
Lecron said to the source: “So I guess I’ll talk to you when the deed is done?” She later said: “I’m very excited...stick it to him man…be safe.”
The Federal Bureau of Investigation’s Joint Terrorism Task Force, which is comprised of members of the FBI, Homeland Security and Investigations, U.S. Customs and Border Protection, Ohio State Highway Patrol and Toledo Police Department, is leading the ongoing investigation. They were assisted by the FBI’s office in Denver. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, 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.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Three Men Sentenced to Federal Prison for Roles in Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that three men have been sentenced to federal prison for their roles in a drug trafficking conspiracy to import and distribute methamphetamine in Ketchikan, Alaska.
Neptali Yadao Dadia, 41, of Ketchikan, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve 10 years in prison, followed by eight years of supervised release, after previously pleading guilty to methamphetamine conspiracy. At the time of the offense, Dadia was on supervised release from a previous federal drug conviction.
Dadia’s co-conspirators were each sentenced in September 2018 for their roles in the conspiracy, after previously pleading guilty to methamphetamine conspiracy. Matthew Steven Speers, 28, of Ketchikan, was sentenced to serve five years in prison, followed by four years of supervised release. Jaypee Tolsa Lorenzo, 33, of Ketchikan, was sentenced to serve 15 months in prison, followed by four years of supervised release.
According to court documents, Dadia coordinated and directed the distribution of drugs, as well as, collection of drug proceeds from co-conspirators in Ketchikan, and for payment of drugs obtained from Nevada. A federal investigation was launched after a suspicious package was identified on Aug. 18, 2017, that originated from “Ivy Si” in Las Vegas, Nevada, to be delivered to Speers in Ketchikan, Alaska. A search warrant was obtained and executed on the package, and located inside was a teddy bear containing 53.92 grams of methamphetamine.
The investigation revealed that Dadia contacted a co-conspirator outside of the United States, and arranged for the purchase and shipment of two ounces of methamphetamine to Nevada, and then to Speers in Alaska. Dadia coordinated with Speers to receive the drug packages in Ketchikan, where Speers would take half of the drugs for distribution before giving the remaining half to Lorenzo. Lorenzo would then deliver the remaining drugs, along with Speers’ drug proceeds, directly to Dadia for further distribution. The investigation further revealed that Dadia had previously arranged a two-ounce shipment of methamphetamine, utilizing the same methods and co-conspirators in July 2017.
The Alaska State Troopers (AST) and the Drug Enforcement Administration (DEA) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Three Men Sentenced for Four Carjackings in Central FloridaRead the Press Release
Orlando, Florida – U.S. District Judge Paul Byron has sentenced Jeffrey Noel (25, Orlando), Herichie Paul (21, Orlando), and Awetu Megersa (23, Orlando) to 25, 16, and 13 years in federal prison, respectively, for carjacking and possessing a firearm in furtherance of a crime of violence.
According to court documents, Noel, Paul, and Megersa were part of a carjacking crew that carjacked four victims at gunpoint in Orange, Osceola, and Seminole counties during the first week of January 2017. One victim, a fast-food delivery driver, was confronted by the defendants and others while attempting to deliver food to an abandoned apartment in Orange County. The defendants forced the victim into the apartment at gunpoint and then removed the victim’s clothing, cellphone, wallet, and the keys to his minivan. A few days later, another victim was carjacked at gunpoint as he was returning from work.
This case was investigated by the FBI. It was prosecuted by Assistant United States Attorney Nathan W. Hill.
Three Charged with Violating Federal Anti-Kickback Laws and Committing More Than $4.7 Million in Health Care FraudRead the Press Release
TULSA, Okla.— A grand jury returned an indictment today charging three men, including two physicians, with violations of the federal anti-kickback statute as well as conspiring to commit health care fraud, announced U.S. Attorney Trent Shores.
“Health care fraud is not a victimless crime. It has a costly effect on the taxpayer and beneficiaries enrolled in Medicare, TRICARE, and workers compensation coverage under the Federal Employees Compensation Act,” said U.S. Attorney Trent Shores. “The Justice Department will not stand idly by while physicians exploit federal programs designed to help American families. I encourage the public to report suspicious health care practices and billing to federal authorities. We will investigate and bring to justice those defrauding our system for their personal benefit.”
The criminal indictment alleges that since November 2012, Christopher Parks, 57, and Dr. Gary Lee, 58, both of Tulsa, engaged in a conspiracy to unlawfully pay kickbacks and bribes to physicians in order to induce the physicians to write compounding prescriptions to pharmacies with whom the two were affiliated, including OK Compounding LLC in Skiatook, One Stop RX LLC in Tulsa and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The defendants then allegedly submitted large claims for payment to federal health care programs and private insurers and divided the profits.
Dr. Jerry Keepers, 65, of Kingwood, Texas, is also named as a defendant in the indictment. He is charged with soliciting and receiving over $860,000 in illegal bribe and kickback payments from Parks and Lee and also conspiring with the two men to commit healthcare fraud.
Compounding prescriptions is a practice in which a pharmacist or physician combines, mixes or alters ingredients of a drug or multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies. Compounded drugs are not to be mixed or marketed in bulk.
The indictment alleges physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians allegedly checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Payments to physicians were disguised through various sham business arrangements, according to the indictment. For example, physicians would allegedly enter into agreements with a pharmacy to serve as “medical directors.” However, the physicians would provide no actual services as medical directors, according to the charges. Instead, physicians were allegedly paid kickbacks for writing prescriptions for medications whether or not their patients needed them and sending the prescriptions to pharmacies affiliated with Parks and Lee. As a result of Parks and Lee’s scheme, federal health care programs suffered a total estimated loss of at least $4.7 million.
Conspiracy to violate the anti-kickback statute carries a possible maximum sentence of five years in prison and a $250,000 fine, while violating the anti-kickback statute carries up to 10 years in prison and a $100,000 possible fine. A conviction of health care fraud without injury or death carries also carries a possible maximum of 10 years in prison, but if resulting in injury or death, the maximum penalty climbs to 20 years or life in prison, respectively.
Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the case. The Defense Criminal Investigative Service, Department of Labor-Office of Inspector General (OIG), IRS - Criminal Investigation, U.S. Postal Service-OIG, FBI and the Department of Health and Human Services-OIG conducted the investigation.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Texas Businessman Pleads Guilty to Conspiracy to Obstruct Justice in Connection with Venezuela Bribery SchemeRead the Press Release
A former procurement officer of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in a scheme to obstruct an investigation relating to bribes paid by the owner of U.S.-based companies to Venezuelan government officials in exchange for securing additional business with PDVSA and payment priority on outstanding invoices.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Alfonso Eliezer Gravina Munoz (Gravina), 56, of Katy, Texas, who previously worked for PDVSA in Houston, Texas, pleaded guilty before U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas in Houston to one count of conspiracy to obstruct an official proceeding. Gravina is scheduled to be sentenced on Feb. 19, 2019 before Judge Gary H. Miller. He was charged by indictment on Nov. 15.
Gravina pleaded guilty on Dec. 10, 2015 to one count of conspiracy to launder money and one count of making false statements on his federal income tax return. Gravina’s plea agreement in that case was a cooperation plea agreement, and it contemplated the possibility that the United States would make a motion to reduce his sentence based on his cooperation. Under the terms of the plea agreement, Gravina agreed to participate in interviews as requested by the United States, and to provide “truthful, complete and accurate information” to government agents and attorneys.
According to admissions made in connection with Gravina’s plea in this case, after his plea in December 2015, Gravina met periodically with HSI special agents to provide information regarding corruption at PDVSA. Despite knowing that U.S. government authorities were investigating corruption at PDVSA, and, specifically, that at the beginning of 2018 the government was focusing on bribes paid by companies controlled by an individual referred to as Co-Conspirator 1 in the indictment in this case, Gravina concealed facts about Co-Conspirator 1’s bribe payments to PDVSA officials in his interviews with the government. In addition, Gravina informed Co-Conspirator 1 that U.S. government authorities were investigating Co-Conspirator 1, and provided Co-Conspirator 1 with information about the investigation, including the topics discussed in Gravina’s meetings with the government. This passing of information led to the destruction of evidence by Co-Conspirator 1 and others, and to Co-Conspirator 1’s attempt to flee the country in July 2018.
Gravina becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Gravina, the Justice Department has announced the guilty pleas of a total of 15 individuals in connection with the investigation.
HSI Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from IRS Criminal Investigation. Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Texas Businessman Pleads Guilty to Conspiracy to Obstruct Justice in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON – A former procurement officer of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today. Alfonso Eliezer Gravina Munoz (Gravina), of Katy, admitted to his role in a scheme to obstruct an investigation relating to bribes paid by the owner of U.S.-based companies to Venezuelan government officials in exchange for securing additional business with PDVSA and payment priority on outstanding invoices.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Gravina, 56, previously worked for PDVSA in Houston. He pleaded guilty today before U.S. District Judge Kenneth M. Hoyt to one count of conspiracy to obstruct an official proceeding. Gravina is scheduled to be sentenced on Feb. 19, 2019, before Judge Gary H. Miller. He was indicted Nov. 15, 2017.
Gravina pleaded guilty to one count of conspiracy to launder money and one count of making false statements on his federal income tax return. Gravina’s plea agreement in that case was a cooperation plea agreement which contemplated the possibility the United States would make a motion to reduce his sentence based on his cooperation. Under the terms of the plea agreement, Gravina agreed to participate in interviews as requested by the United States and to provide “truthful, complete and accurate information” to government agents and attorneys.
According to admissions made in connection with Gravina’s plea in this case, Gravina met periodically with HSI special agents to provide information regarding corruption at PDVSA. Gravina knew U.S. government authorities were investigating corruption at PDVSA and that at the beginning of 2018, the government was focusing on bribes paid by companies controlled by an individual referred to as co-conspirator 1. However, Gravina concealed facts about co-conspirator 1’s bribe payments to PDVSA officials in his interviews with the government. In addition, Gravina informed co-conspirator 1 that U.S. government authorities were investigating co-conspirator 1 and provided that person with information about the investigation, including the topics discussed in Gravina’s meetings with the government. This passing of information led to co-conspirator 1 and others destroying evidence and co-conspirator 1 attempting to flee the country in July 2018.
Gravina becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Gravina, the Justice Department has announced the guilty pleas of a total of 15 individuals in connection with the investigation.
HSI Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from IRS - Criminal Investigation. Assistant U.S. Attorneys (AUSAs) John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case along with Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson is handling the forfeiture aspects of the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Tampa Woman Pleads Guilty to Money Laundering Conspiracy Related to IRS Impersonation ScamsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces that Brenda Dozier (54, Tampa) has pleaded guilty to conspiracy to commit money laundering. Dozier faces a maximum penalty of 20 years in federal prison. Pursuant to her plea agreement, Dozier has agreed to pay approximately $225,000 in restitution to the victims of the conspiracy and has consented to a forfeiture money judgment in the same amount. A sentencing date has not yet been set.
According to the plea agreement, from July 2015 through at least November 2015, Dozier laundered money that had been extorted from U.S. residents by conspirators residing in the states and overseas. India-based conspirators extorted money by impersonating IRS officers and misleading multiple victims to believe that they owed money to the IRS and would be arrested and fined if they did not immediately pay their alleged back taxes. As part of the conspiracy, Dozier opened bank accounts, which she used to receive the fraud proceeds, typically via interstate wire transfers. Once Dozier had retrieved the proceeds, she provided the money to her co-conspirators. Dozier was paid for opening the accounts and conducting the transactions.
On October 11, 2018, three co-conspirators, Nishitkumar Patel, Hemalkumar Shah, and Sharvil Patel were charged in a related case with conspiracy to commit wire fraud and extortion, and with individual counts alleging wire fraud, extortion, money laundering, and aggravated identity theft for their roles in this scheme. Their trials are scheduled to begin in April 2019.
This case was investigated by the Treasury Inspector General for Tax Administration (TIGTA), the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
South Bend Man Sentenced to 70 Months in PrisonRead the Press Release
SOUTH BEND – Bernard Pinkerton, 27 years old, of South Bend, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Pinkerton was sentenced to 70 months in prison followed by 1 years of supervised release.
According to documents in the case, on June 23, 2018, Pinkerton was driving a stolen car with a friend; in the vehicle was marijuana, a scale, plastic baggies, $1,100 cash, and a loaded 9mm handgun that had been reported stolen. Pinkerton was initially charged federally by compliant. Pinkerton confessed to possessing the gun and drugs. He had prior felony convictions in Cook County, Illinois involving drugs and a firearm.
This case was part of our Project Safe Neighborhoods (PSN) program. The program brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
This case was investigated by the ATF with assistance from the South Bend Police Department, and prosecuted by Assistant United States Attorney Joel Gabrielse.
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Sex Offender Sentenced to 14 Years for Possession of Child PornographyRead the Press Release
Orlando, Florida –U.S. District Judge Paul G. Byron has sentenced David Gilbert (53, Merritt Island) to 14 years in federal prison for possessing child pornography. Gilbert had pleaded guilty on September 20, 2018.
According to court documents, on March 30, 2018, Gilbert, a sex offender, had more than 400 images of child pornography, including videos, in his possession. The images involved young children, some as young as two or three years old, engaging in sex acts, including bondage and bestiality. Gilbert also possessed nude photos of a 13-year-old girl, who was identified by law enforcement as the child of Gilbert’s ex-girlfriend.
During an interview with law enforcement officers, Gilbert admitted to downloading child pornography, and stated that he “could not help himself.” Gilbert has prior convictions for committing lewd and lascivious acts in the presence of a child and for possessing material depicting sexual conduct by a child.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office. It is was prosecuted by Assistant United States Attorney Kara M. Wick.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Richland County, Illinois Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Robert A. Harden, 45, of Calhoun, IL, was sentenced today to federal prison on methamphetamine related charges, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
On December 10, 2018, Harden was sentenced to 108 months’ imprisonment and four years’ supervised release following his imprisonment. Harden had previously pleaded guilty to two counts in a federal indictment.
Count 1 charged that from on or about 2016, until on or about August 2017, in Richland County, Harden conspired to knowingly and intentionally distribute more than 5 grams of crystal methamphetamine, commonly referred to as "Ice." Count 2 charged that on or about January 20, 2017, in Effingham County, Harden knowingly and intentionally possessed with the intent to distribute methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.